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1 INTRODUCTION OF HBL
It is the prime Bank in country established in 1941 having a registered head office in
Karachi. It was nationalized in 1974, but recently on 26th February 2004 it has been
privatized by Government of Pakistan and is taken over by Aga Khan Fund for Economic
Development (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 of
Rs. 434,931,930,000.
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would naturally have been interested in other things. The nation was quite young with
extreme scarcity of resources and these definitely added to the difficulties of the govt., to
run its own Banking system immediately.
Following the announcement of the independence plan in June, 1947, the Hindus residing
in the territories now comprising Pakistan started transferring their assets to India and
vice versa. The Banks included those having their registered offices in Pakistan,
transferred them to India in order to bring a total collapse of the new state. It had been
decided that the Reserve Bank of India would continue to function in Pakistan so that the
problem of demand and time liabilities, coinage, currencies, exchange rate etc be settled
between India and Pakistan and the Indian Notes would continue to be legal tender in
Pakistan till 30th September, 1948. Again due to certain differences between Indian
Pakistan, the Indian Govt., withheld Pakistan's share of Rs.75 core in forward and
subscribed heavily to the Govt. of Pakistan to the tide over the crises, Payment was made
to the Govt., by the Bank at a very nominal rate of interest, even before the actual issue of
securities.
At a time when this newly born country was at whirlwind of crises, it was HBL which
fulfilled generously the financial needs of all its sectors, paid salaries to the employees of
all Govt. departments, helped in the establishment of State Bank of Pakistan which the
Quaid-e-Azam inaugurated on July 1st, 1948. HBL after partition opened its branches
throughout Pakistan to provide finance and other facilities to the business community. In
association with HBL, the Govt. sponsored Pakistan Finance Corporation Limited for
financing of cotton. The Bank helped handsomely in the construction of WARSAK DAM
PROJECT, WAPDA, & K.D.A. by provided finance and other facilities.
Another innovation introduced by HBL is the evening Banking cash long after the
crossing of normal Banking hours. It was also the first in making available such new
facilities as Gift Cheques, Rupee Traveler’s Cheques, Credit Card System, short term and
long term schemes for small businessmen.
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1.1.2 MISSION
To be recognized as the leading financial institution of Pakistan and a dynamic
international bank in the emerging markets, providing our customers with a premium set
of innovative products and services, and granting superior value to our stakeholders –
shareholders, customers and employees.
OR
Opening new horizons and fresh perspectives of trust, dependability and service through
1425 domestic branches and 112 overseas offices with a comprehensive range of
financial products.
1.1.3OBJECTIVES OF HBL
Following are some of the main objectives of HBL.
To earn profit for the Bank itself and for its shareholders.
To promote and boost up business sector inside the country.
To provide employment opportunities to people.
To help in development and industrialization of the country.
To provide loan and advances to help out in self employment schemes.
1.1.4SYMBOL OF HBL
Symbol depicts
Bismillah ============Islamic Culture and Values
Sword ============== Power
Lion================ As a symbol of strength
HBL is firmly grounded with a corporate philosophy that incorporates five solid values
which each individual associated with the bank abides by.
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1.1.5.1 Humility
HBL encourages a culture of mutual respect and treats both their team members and
customers with humility and care.
1.1.5.2 Integrity
For them, integrity means a synergic approach towards abiding their core values. United
with the force of shared values and integrity, they form a network of a well-integrated
team.
1.1.5.3 Meritocracy
At every level, from selection to advancement, they have designed a consistent system of
human resource practices, based on objective criteria throughout all the layers of the
organization. HBL is therefore, able to achieve a specific level of performance at every
layer of the organization.
1.1.5.4 Teamwork
Their team strives to become a cohesive and unified force, to offer the customer, a
service beyond his expectations. This force is derived from participative and collective
endeavors, a common set of goals and a spirit to share the glory and the strength to face
failures together.
Their aim is to be proactively responsive to new ideas, and to respect and reward the
agents, leaders and creators of change
1.1.6CORPORATE BANKING
Only local bank with special focus on Corporate Banking with a presence in all major
locations through out the country, offering full range of Banking products / services and
one window interface through designated Relationship Managers. Our large equity base
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allows us to take longer per party exposures to meet the needs of the largest corporate &
our extensive local & foreign network allows us to imperiously service our clients.
Corporate manages well diversified portfolio, and include most of the top tier names of
the market. Corporate Banking offers tailor made products / solutions as required by
corporate customers which includes:
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Accepting deposits
Making Loans and advance.
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on these loans and advances depending on the terms and conditions settled with the
customers. Following types of loans and advances are made available to the customers.
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their face value after deducting interest at the current rate for the maturity period of the
bill.
our stated objective of being a premier emerging market Bank.
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2.1.2.6 School Banking
This scheme was introduced in 1962 to provide Banking services to children in a number
of schools though out the country.
It was introduced in 1966. It is a scheme through which prize could be declared for prize
bond scheme.
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2.1.2.13 Infant Saving Scheme
In 1968 the Bank offered infants to open saving accounts operated by their parents/
guardians.
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2.1.2.21 Gold card system
In 1991 HBL introduced the scheme with the features of offering card holders to get upto
Rs. 10,000 at a time.
2.1.3INNOVATIVE PRODUCTS
2.1.3.1House Finance
HBL provides the facility of house finance:
Financing available for:
1. Purchase of house
2. Home improvement and renovation
3. Self Construction
2.1.3.1Some characteristics of House Finance of HBL Are:
Lowest marl-Ups leading to affordable monthly installments
5 years fixed Rates/ one year Floating Rate available.
Lowest processing charges
Financing tenures ranging from 3 to 20years.
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Financing limits of up to Rs. 7.5 million (Rs. 3.0 million for Home
Improvement/Renovation)
Quick Processing
2.1.3.2Auto Finance
Habib Bank Auto Finance, a lease product, designed to offer you an economical way
for owing the car of your choice.
Some characteristics are:
Lowest Down Payment
Lowest monthly rentals
Fixed repayment tenures of 36,48and 60 months.
Lowest Processing charges
Insurance premium rates as low as 3%
World wide personal accidental insurance coverage of up to Rs. 200,000.
All locally assembled new cars can be financed through this scheme.
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Fixed tenures of 6,12,18,24 and 36 months
Low Processing charges
Full credit Life Insurance
Free Doorstep Delivery of items
Available throughout Pakistan from over 330 designated Habib Bank Branches
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2.1.3.9 Auto Cash (Debit/ ATM Card)
Habib BANK icard is used for dual purposes-a debit card and an ATM card and provides
u the direct access to cash in your account.
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2.1.3.15 HBL E-Bank
It provides services via a dedicated communication link on the internet. The E-Banking
services provide “anytime, anywhere” banking to all 5 million customers. This service,
designed to be user friendly, assures secured access and confidentiality.
2.1.3.16 SWIFT
The bank is a major SWIFT user in 70 domestic branches & 21 overseas countries /
locations in the network. SWIFT services are being used for funds transfer, remittances
and trade related transactions, resulting in major improvement in payment processing
capability for enhanced customer service.
2.1.4.1Collection of cheques
HBL pays and collects cheques on behalf of their customers, and for this it receives
commission form their account holders.
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2.1.4.4 Execution of standing instruction
HBL also executes the standing in case if it is ordered by the customers of the Bank to do
so. These instructions are usually given in writing to Bank. The Bank debits and credits
the accounts of its customer for the transactions carried out by the individual or firm.
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2.1.4.10 Issuance of traveler’s cheques
HBL also issues traveler’s cheques. These cheques can be issued to anyone whether an
account holder or not and charges no commission on issuance of such cheques. HBL has
recently introduced Muhafiz rupee traveler cheques with enhanced features.
2.1.5Operational Policy
The operational policies of HBL deal with the method of provision of better services to
its customer. Through the introduction of new schemes as means of satisfaction for their
customers, the operational policy of HBL can be divided into two spears.
Domestic operations.
International operations.
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HBL concentrates on markets and business they understood. Through a global network,
the Bank provide a comprehensive range of financial services, personal, commercial,
trade services, cash management, treasury/ capital market services, and private Banking.
HBL strives to provide high quality product through efficient delivery system and
excellent customer services. In this way, HBL will grow and achieve
2.1.6ORGANIZATION STRUCTURE
A well-developed and properly coordinate structure is an important requirement for the
success of any organization. It provides the basic framework within which functions and
procedures are performed. 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 decision making, and communication of these decisions.
These activities must be well coordinated so that the goals of the organization are
achieved successfully.
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4) Finance, Audit and Administration Group
5) Assets Remedial Management Group
6) Credit Policy Group
7) Corporate Bank, Financial Institutions and Project Finance Group
In addition to the overall controlling authority, president also manages the International
Operations Group individually. While the Senior Executive Vice Presidents supervise
rest of the functional groups. Each Senior Executive Vice President is individually
responsible for the group which is assigned to him.
At the level of provinces there are Regional Head Quarters headed by Regional Chief
Executives (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 been
removed to reduce Managerial Layers, which were working under the control of Zonal
Offices. This happened as a result of policy of beginning new changes in the
organizational structure.
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2.1.6.3 Organizational Chart
Chairman
President
Board of Directors
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2.1.7ANALYSIS OF ORGANIZATIONAL STRUCTURE
The purpose of an organizational structure is to help in creating an environment for
human performance. It is then, a management tool and not an end in its own. Although
the structure must define the task to be done, the rules so established must also be
designed in the light of abilities and motivation of the human recourse available. By
analyzing the organizational structure of HBL presence of the following elements can be
found in its structure.
By looking at the organizational structure of HBL would be found that the structure at
HBL is a critical one. All the decisions are made at the top management level and the
subordinates have to obey these decisions. This trend in the decision making shows a
pattern of rigidity in structure of HBL.
The same pattern is followed at HBL. No doubt it’s a very traditional approach but it can
create problems because it ignores the receiver of the communication because the issuer
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of policies and procedures does not ensure communication. In reality may the messages
communicated downward are not understood perfectly.
The chain of command is an unbroken line of authority that links all persons in an
organization and shows who reports to whom. By analyzing the organizational structure
it can be found that there is a scalar principle followed with in the Bank because each and
every person knows to whom can one report. The authority and responsibility for
different tasks and duties are different, as well as every one knows the successive levels
of management all the way to the top.
The chain of command illustrates the authority structure of HBL. Authority is the formal
and legitimate right of the manger to make decisions, issues orders and allocates
resources to achieve organizational desired outcomes. By analyzing the chain of
command of HBL, one can come to the conclusion that, as there is scalar pattern
followed at the organizational setup of HBL therefore it is implied that everyone in his
position knows that what is one’s authority and what is the responsibility and the
authority it allocated.
2.1.7.5 Delegation
Delegation is the process, which managers use to transfer the authority and responsibility
to position below in the hierarchy. Most organizations today encourage managers to
delegate authority to the lowest possible level to provide maximum flexibility to meet
customer needs and adapts to the environment. But at HBL no such system prevails the
managers try to keep as much of the authority as they can and if some authority is
delegated it is sure that it will be misused
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3.1 PERSONAL EXPERIENCE DURING
INTERNSHIP
I started my internship at HBL liaqat road branch. Basically HBL hired internees for
marketing of its new product HBL Phone Banking. For this purposes HBL trained
internees and sent them in different branches of Islamabad and Rawalpindi region. First
few days I worked on HBL Phone Banking. HBL provides Phone banking for its account
holder. During my work I meet different type of account holders. Many interesting things
came to know about account holder. For instance, I meet one of the account holders, I
told about phone banking to him and after few minutes when I finished my words about
phone banking . The person said “Yeh mera bohat bhare account hay. Main nay es ke
information apnay ghar walon ko b nahin de the jab main hajj pay gia tha .aap ko es ke
information nahin doon ga” One person said I did not need phone banking. Another
person said I preferred manual banking than phone banking. I think there are two reasons
of hesitation of account holders from phone banking. First and important thing is that
employees of HBL are against this. They feel phone banking is burden on them. Second
thing is that most of
The account holders of HBL are illiterate. I also worked in different department of HBL.
The detail is as under
I was given the assignment of issuing Cheque books. It is issued to those customers
whose accounts are operated by the concern bank. Cheque books in two different
categories are issued which are as fallows.
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3.1.2Filling of an Account Opening form
Account opening is an agreement in which customer offers his funds and bank accepts
these funds, therefore the nature of relation between a banker and customer is of a
contractual one and all the conditions applicable to this contract act are also applicable.
3.1.3Remittance Department
Remittances are sums of money sent in payment for or against something. The remittance
department is mainly concerned with these payments. Remittances are divided into:
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3.1.6 Clearing
This is an extra ordinary banking facility which is provided to the public in this if they
are maintaining an account with the HBL they can lodge Cheque of any bank in Pakistan,
which will be collected and credited to their respective accounts through the process of
clearing. In this representatives of various banks are gathered at SBP and exchanges the
Cheque presented to them for debit of the respective accounts and in second round of
meeting provide each other the fate of those Cheques to be credited to respective
accounts.
When people present the Cheque of any other bank for clearing, first enter the Cheque
into the clearing register of the bank. Then this Cheque sent to the NIFT for clearing.
NIFT is the department which is created by the SBP for clearing the checks of different
banks.
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3.1.9 Payment of Salaries
This is one the distinct features of HBL, that it provides services to the Govt. departments
to distribute their salaries every month. The prominent examples include ARMY,
RANGERS, POLICE, EDUCATION, and PUBLIC WORKS ETC.
In this method a voucher is filled for the customers with the descriptions of Account
number, amount deposited title of the account and the name of the customer having that
account. The depositor put a signature on the voucher and the amount is paid to cashier
who stamped it and the voucher consisted of two parts, one is given to the customers and
the other part remains with the bank. In this type of deposit, the voucher is received by
writing the amount as BY CASH.
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4.1 SWOT ANALYSIS OF HBL
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.
4.1.1Strengths
A skill or capability that enables HBL to conceive and implement its strategies.
The officers of HBL are considered as one of the most able professionals in the
banking world.
I observed that HBL employees interact with their clients as if they are their
personal friends and discuss about their problems as their own.
HBL has got a reliable and easy to use internal computer system. Every
information regarding the transactions in customers’ deposits has been
computerized.
HBL maintained its data properly.
HBL has very good security system.
HBL is the larger commercial bank in Pakistan with the network of over 1439
domestic and international branches.
Being the pioneer of banking in Pakistan, HBL is the oldest and is the richest in
experience.
HBL focuses on consumer banking by lucrative schemes, products and services
suiting best to the wants and demands of the customers.
HBL has opened all its branches at commercial areas so that the customers or
clients face no problems in reaching to the bank.
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The band is always on the look to improve its services both to the domestic as
well as overseas customers.
Human resources development and introduction of new technology towards
modern banking.
24 hours cash access and safe payment products for high value transaction.
Having potential to encounter the competitive environment in the market.
Veteran and experience private management group also involved in other interests
like, textile and cement industry.
Customer enjoys the services at the residential localities.
4.1.2Weaknesses
Highest number of branches effecting the proper maintenance and difficulty in
providing same working environment at the each branch
Poorer system of recovery of the system is a threat to bankruptcy.
Lack of customer feed back.
4.1.3Opportunities
Huge untapped market potential in consumer banking
In opportunity exist, in form of opening of ladies banking section within the
branch which is entirely a new idea and it will attract customer.
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Opportunity for developing value added services combined with corporate
banking relationships, cash management services to large and medium sized
corporate clients.
Growing policies of government on business and commerce sector provide HBL
opportunities to take advantages of these policies to meet efficiently with the
business people to solve their problems with the instant cash and financing
facilities.
Govt. is taking very bold steps to promote IT in Pakistan. HBL has an opportunity
to improve in technology.
Large international network which principally focuses on trade finance with
Pakistan can be utilized to tap trade activities in other markets. In addition,
services such as cross border / offshore financing for corporate customers can be
enhanced.
Customer feedback on different products and accounts has really improved the
bank performance and encourage the atmosphere for other future policies.
HBL also has an opportunity to expand its new technological advancement like;
tele banking and internet banking facilities in order to serve the customer more
efficiently, specially
E-banking facility is also a new opportunity which is a flourishing business in
foreign countries and can also be here, if HBL takes the initiatives.
Further reduction in intermediation costs possible, with improving technology.
Due to efficient and veteran management group, HBL can also improve Ill and
expand its foreign operation successfully.
Habib Bank Limited provide opportunity to utilize its skills and efficiencies in
leasing business.
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4.1.4Threats
An area in the environment that increases the difficulties the organization’s
achieving high performance.
Consolidation in the banking sector resulting in increased competition.
Shortage of trained and specialized staff at lower executive and officer levels
The threat of inconsistency and government policy regarding to business and
economics sectors, specially political and regional situation which makes the
environment uncertain.
Growing global technological advancement.
Strict regulation by government over credit facilities to the customers as Ill as to
meet the prudential.
Loss of confidence of overseas customers due to freezing of accounts.
Facing more competition by foreign banks in the market.
Foreign banks are flourishing in field of consumer financing.
Also the increasing operation of private banks.
Highly attractive and advance services by foreign banks to their customers.
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attention to every customer then in few years it will be the leading bank of the
country.
5.1.2RECOMMENDATIONS
The management should try to decrease job insecurity among the employees.
Training program should be started for internees and newly appointed employees.
There should be transport facility for the employees.
The number of employees should be increased in order to decrease the workload.
The bank charges high service charges as compared to the other banks, so these
should be lowered down.
Surveys must be conducted regarding customer satisfaction level and all
employees of this dept. should look forward to getting feedback whenever
possible.
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Sr.No Bank Name Web Address
Investment Banks:
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• Islamic Investment Bank Limited
• Jehangir Investment Bank Limited
• Orix Investment Bank (Pak) Limited
• Prudential Investment Bank Limited
• Security Investment Bank Limited
• Trust Investment Bank Limited
• Khushhali Bank
HBL is expanding its presence in international markets such as the UK, UAE, South Asia and the Gulf where
a huge South Asian Diaspora is present. HBL has also reached in Africa and Central Asia through its
shareholdings in regional banks such as Diamond Trust Bank, Kenya and Kyrgyz Investment and Credit
Bank in Kyrgyz Republic.
Habib Bank also received three Global Finance Awards in Istanbul at the World Bank Annual Meetings
2009, namely Best Bank - Pakistan, Best Trade Finance Provider -Pakistan and Best Foreign Exchange
Provider - Pakistan. Along with these international recognitions HBL was also rated as the Top Banking
Brand in Pakistan by The Banker, the world s premier banking and finance magazine.
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