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BANK AL HABIB BEST

VIEWS: 1,310 PAGES: 72

									Marketing and Management of Bank
Al Habib limited




                              I
               Prepared For

          Mr. Attique-ur-Rahman

        Instructor of Marketing Management

      Visiting Faculty Member of University of

      Veterinary and Animal Sciences (UVAS)

                      Lahore




                Prepared By

             KHAWAR NADEEM

                 YASIR LATIF

                AMIR HUSSAIN

                 SARA FARID

               FAIZA MUNEER

        Students of MBA II Semester (sec B)

                Session (2008-2010)

University of Veterinary and Animal Sciences (UVAS)

                 May 22, 2009


                                                      I
 To My Mother And my beloved MSB.

                 Y.L

      To My Beloved Parents

                 K.N
        To My Beloved Mother.
                 A.H

        To My Beloved Parents.

                  F.M

        To My Beloved Father.
                 S.F




                                     II
First of all thank to whom who is most merciful and kind to all of his creations with out any discrimination
and who make us able to Prepare this report




We are proud on following personalities for being our friends and relatives that
guidance helps us in the preparation of this report



       Mr. Musharaf Sidique; who provided us some useful articles related to our topic.
       Mr. Rehan Khan; who provide us important information about the bank Al Habib.
       Mr. Chohdree Asif; who provides us the martial related to our project.
In the end Special thanks to our parents and teachers specially Mr. Rahman (Our marketing
management instructor) whom unlimited efforts are there in our personality grooming.




                                                                                                     III
                                                               5- Outfall Road
                                                                University of Veterinary and Animal
                                                                Sciences Lahore
                                                                May22, 2009
 Mr.Attique-ur-Rahman
Visiting Faculty Member
Department of Livestock Business Management (FLBS)
University of Veterinary and Animal Sciences (UVAS)
5, Outfall Road
Lahore.

Dear Mr. Rahman

First of all we would like to thank to Mr. Rahman who has given us a good opportunity of writing a
report to increase our of writing skill on such an important topic

                    “Marketing Plan of Bank Al Habib”
In this report we have given the introduction of Bank and history of Bank Al Habib then internal
assessment, management function, internal assessment after these we conclude our topic and given
some important suggestions to Improve the Bank Al Habib.
 As it was our first experience of preparing a that kind of report we learnt much more from it, it was a
good experience for us and we hope in future you will provide us more chances of such good
experiences.

Yours sincerely
Student of FLBS (UVAS)


Mr.Yasir Latif                   Mr.Khawar Nadeem                           Mr.Amir Hussian
 Roll No. 44                         Roll No.58                               Roll No.36




Miss.Faiza Muneer                                 Miss.Sara Farid
    Roll No. 31                                     Roll No. 42




MBA 2nd Semester (Sec B)




                                                                                                 IV
                                                 Table of contents
Contents
Introduction & History ............................................................................................................................ 2
   Habib Family's Business Units ........................................................................................................... 3
   BANKING & FINANCE; ................................................................................................................... 3
Departments: ........................................................................................................................................ 13
2-Management function: ...................................................................................................................... 15
External assessment: ............................................................................................................................ 22
Internal assessment ............................................................................................................................... 30
4.1- INTEGRATED MARKET COMMUNICATION: ....................................................................... 46
CONCLUSION ..................................................................................................................................... 54
SUGGESTION ..................................................................................................................................... 56
Appendix ............................................................................................................................................... 57
BIBLIOGRAPHY ................................................................................................................................. 58
GLOSSARY ......................................................................................................................................... 59
INDEX .................................................................................................................................................. 62
Management function ........................................................................................................................... 62




                                                                                                                                                        V
                                             Synopsis
Introduction & history of Bank Al Habib; The Origin of what is now known as the Habib
Group of companies can be traced to Habib Esmail, and his association with the firm of Khoja
Mithabani Nathoo, a leading metals dealer established in Bombay in 1841. Habib joined the firm at
the age of 13 for a monthly salary of Rs. 5. Through his hard work and determination he became
partner at the age of 18 and also became the president of the Copper and Brass Merchants
Association.

Bank AL Habib was incorporated as a Public Limited Company in October 1991 and started its
operations in January 1992. It is a venture of the Habib Group, which owns 50% of the shares - 20 %
shares are owned bank AL Habib was incorporated as a Public Limited Company in October 1991
and started its operations by NIT and 30% are owned by the general public. The bank operates in the
private sector, with 30 branches in the major cities of Pakistan, and has its principle office at Karachi.

Management function; basic management function are four types

       Planning
       Organizing
       Leading
       Controlling


External assessment; external shows the external condition that is threat or opportunity for the business


 SWOT analysis; SWOT Analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or project and identifying the internal and external
factors that are favorable and unfavorable to achieving that objective.

In which we check out the strength, weakness, opportunity and threats of the business.

PEST analysis; Economic factors; The Pakistan economy is more controlled economy, then one
where market forces reign supreme. Several key institutions are stated owned. Thus a discussion of
the economic forces that influence the private organization such as bank Al Habib cannot ignore the
substantial role played by the government in determining the state of the economy. The biggest
indicator of the heavy role enjoyed by the government was evidence when foreign currency accounts
(FCA’s) were frozen on the orders of the ministry of finance in the wake of explosion tests on may
31st 1998.

Social forces; a low saving culture has offset the huge population advantage this is enjoyed by
Pakistan. Also culture is dedicated by the religion, and in Pakistan a significant segment of the
population is loath to accept interest for their deposits due to the negative religious implications of
such an act.

Technological forces: Banks in the developed world have been turning to heavy IT investments,
which differentiate their products, provide response times, enhance accessibility and improve

                                                                                                          VI
customer satisfaction. Though investing in state-of-the-art host banking solution (Fiserv, Kapiti, etc) ,
ATM and POS .

Porter’s five forces

  I.    Rivalry Among Competing firms;
        Bank Al Habib limited is facing a strong competition from other private Pakistani banks like
        Metropolitan bank. Soneri bank and Askari Commercial bank. The improved performance of
        the nationalized commercial banks (NCBs) is also the threat for the bank Al Habib. Foreign
        banks are also competing with the bank for same small medium sized companies. The bank is
        overcoming the incentive competition due to its strong reputation as a renowned financial
        group in Pakistan and a long history of experience in the banking sector.

 II.    Potential entry of new competitors;
        The entry barriers in this market are high. The new banks need permission from SBP so entry
        of new banks is restricted.
III.    Development of substitute products;
        The non banking financial institutions including development finance institutions (DFIs),
        private sector investment banks (PSIBs), leasing corporations (LCs) and Modarbas are almost
        in the same line of business and can be treated to the bank.
        Bargaining power of suppliers;
        The main suppliers in the banking sectors are depositors. Although the bank is given higher
        return then any other bank (12% per annum) to attract the depositors but the low innovation in
        the product and also low investment in the marketing sector of the bank may provide
        difficulties in coming years.
IV.     Bargaining power of customers;
        The main customers are small traders and exporters based in Karachi and Lahore, majority of
        who deal in textile related commodities. Since the bank is targeting the short-term trade
        finance market, the bargaining power of customer is substantial as other banks within the
        same sector like Habib bank, Bank Al Falah and Metropolitan are fast catching up with the
        Bank Al Habib in providing services to the traders.

Internal assessment;

Marketing mix; in marketing mix define the products of the business briefly, pricing of the Bank AL
Habib, promotional activities of the Bank Al Habib and also the placement of the Bank Al Habib.

IMC; Bank Al Habib used the IMC for the promotion of their business in the market. They used the
print media as well as electronic media for the target segment of their customers

Conclusion; BANK Al Habib do well their operation of business. They met their budget effectively
and efficiently.

Suggestion; They should improve interpersonal communication, improve marketing department
easily give the credit to the customer.




                                                                                                      VII
                                       Introduction:
Bank AL Habib was incorporated as a Public Limited Company in October 1991 and started its
operations in January 1992. It is a venture of the Habib Group, which owns 50% of the shares - 20 %
shares are owned bank AL Habib was incorporated as a Public Limited Company in October 1991
and started its operations by NIT and 30% are owned by the general public. The bank operates in the
private sector, with 30 branches in the major cities of Pakistan, and has its principle office at Karachi.

Authorization:
        We have prepared this project on “Bank Al Habib” for marketing management
instructor Mr. Attique-ur-Rahman.

. Outline:
        Firstly in this project we have given the introduction of Bank Al Habib then Management
of the organization, management function, internal assessment, external assessment, conclusion
and at the end we give the some useful suggestions for improve the business of the bank.

Problems:
        In this project we are discussing the problems that are effect the company operational
strength with the help of the external and internal assessment.

Purpose:
        The preparation of this report has two purposes:

i. Primary purpose is to polish our project making and writing skills.

ii. And secondary purpose is to check our decision making skills about the marketing of the
organization.

Scope:
      In this report we are discussing only the management function and marketing plan of the
Bank Al Habib.

Methodology
        For the purpose of making this project we have collected the data from internet,
interviews and books.

Sources:

        For Primary sources kindly see Appendix

        For secondary sources kindly see Bibliography

Definition of terms
        Kindly see the glossary for this purpose.




                                                                                                      VIII
Limitations:
         During the preparation of this report we faced following problems.


   Lack of time

   Loads shading

   Lack of finance




                                                                              IX
             INTRODUCTION
                    &
               HISTORY OF
             BANK AL HABIB




University of Veterinary and Animal Sciences (UVAS), Lahore   1
Introduction & History
1.1- Introduction of Habib family

The history of the House of Habib goes back to middle of the
previous-to-last century when Esmail Ali of Jamnagar, India, set up
a small utensil factory in Bombay. His son Habib Esmail, born in
1878, founded the House of Habib. Habib was very young when his
father died, forcing him to join the business of his uncle Cassum
Mohammad, owner of Khoja Mithabai Nathoo, merchant, and
manufacturer of copper and brass utensils. It was because of his
association with Mithabai Nathoo that Habib Ismaeel came to be
known as Seth Habib Mitha.

                                                                         DAWOOD HABIB

Habib and Sons was formed in the 1920’s to trade in cotton, copper, oil seeds, gold bullion and other
commodities and to act as a merchant bank. This in turn led to the formation in 1941 of Habib Bank
Ltd. Bombay, as a public limited company.

1.2- Introduction of Habib groups of companies:
The Origin of what is now known as the Habib Group of companies can be traced to Habib Esmail,
and his association with the firm of Khoja Mithabani Nathoo, a leading metals dealer established in
Bombay in 1841. Habib joined the firm at the age of 13 for a monthly salary of Rs. 5. Through his
hard work and determination he became partner at the age of 18 and also became the president of the
Copper and Brass Merchants Association.

Habib sent his representative to Europe in 1912 and followed that up by establishing branch offices in
Genoa and Vienna. Simultaneously, he began business relationship with Japan and China importing
hosiery, yarn, glassware and cutlery and exporting cotton.

He started the firm "Habib & Sons" in 1921 and changed the family name to "Habib". His four sons
namely Ahmed Habib, Dawood Habib, Mohammed Ali Habib and Ghulam Ali Habib joined the
business. The firm expanded rapidly - banking remaining a core business.

 This in turn led to the formation in 1941 of Habib Bank Ltd. Bombay, as a public limited company.
The bank was to become the flagship of the family’s industrial and commercial ventures. Prior to the
creation of Pakistan the bank moved its head office to Karachi and played a vital role in providing the
basic banking and financial needs of this new country.

A network of branches and training centers were established in former East and West Pakistan.

When all banks in Pakistan were nationalized in 1974, Habib Bank was one of the largest commercial
banks in South Asia with 875 branches in Pakistan and 44 branches overseas, including 20 in the
United Kingdom.




University of Veterinary and Animal Sciences (UVAS), Lahore                                             2
1800      HABIB FAMILY STARTS BUSINESS IN BOMBAY, INDIA
1920      HABIB & SONS ESTABLISHED IN BOMBAY
1941      HABIB BANK LIMITED ESTABLISHED IN BOMBAY
1942      HABIB INSURANCE COMPANY ESTABLISHED IN BOMBAY
          HABIB FAMILY MIGRATES TO PAKISTAN MOVING HABIB BANK,
1947
          INSURANCE & OTHER BUSINESS
1967      HABIB BANK AG ZURICH ESTABLISHED IN SWITZERLAND
          HABIB BANK LIMITED NATIONALISED IN PAKISTAN. HABIB FAMILY
1974      INVITED BY LATE SHAIKH RASHID TO ESTABLISH HABIB BANK AG
          ZURICH BRANCHES IN DUBAI
          HABIB FAMILY DECENTRALISES BUSINESS UNITS BETWEEN A
1982
          GROWING FAMILY
          PAKISTAN GOVERNMENT INVITES DAWOOD HABIB GROUP TO
1991
          ESTABLISH "BANK AL HABIB" IN PAKISTAN

Habib Family's Business Units
BANKING & FINANCE;
 Bank AL Habib                                         (Pakistan)
 Habibsons Bank                                        (UK & Switzerland)
 Habib Overseas Bank                                   (South Africa)
 Habib African Bank                                    (Tanzania)
 Habib Banking Corporation                             (Bahamas)
 Habib Investment Corp. (FZE)                          (UAE)
 Habib Capital Advisors Ltd                            (BVI)



INSURANCE;


Habib Insurance Co.                                           (Pakistan)
Green shield Insurance Brokers                                (UAE & Pakistan)



REA L ESTATE;


Habib Properties FZC                                                         (UAE)
Green shield Developers                                                      (UAE)
Green shield Real Estate Brokers                                             (UAE)
Gulf Properties International                                                (BVI)




University of Veterinary and Animal Sciences (UVAS), Lahore                          3
OTHER;


Habib Sugar Mills                                     (Pakistan)
Habib & Sons                                          (Pakistan, UK & USA)
Habib Motor Company                                   (Pakistan)
Habib Foods                                           (Pakistan)
Habib IT                                              (Pakistan)




1.3- History of Habib group in Pakistan:
The House of Habib holds many distinctions in Pakistan's history. Habib Bank was shifted
to Pakistan on the personal bidding of Quaid-e-Azam Mohammad Ali Jinnah and came to
the aid of the nascent state "even before the Govt of Pakistan was ready to issue appropriate
government paper" with a Rs 80 million loan when the Reserve Bank of India failed to
deliver Pakistan share of Rs 750 million held by it. It is said that Mohammad Ali Habib gave
a blank cheque on Llyod Bank to the Quaid-e-Azam who wrote Rs 80 million in it. (An




article in Habib Bank Golden Jubilee Presentation and a letter to the Editor in daily Dawn,
September 11, 1991).




University of Veterinary and Animal Sciences (UVAS), Lahore                                     4
1.4- Introduction of Bank AL_HABIB:
Bank AL Habib was incorporated as a Public Limited Company in October 1991 and started its
operations in January 1992. It is a venture of the Habib Group, which owns 50% of the shares - 20 %
shares are owned bank AL Habib was incorporated as a Public Limited Company in October 1991
and started its operations by NIT and 30% are owned by the general public. The bank operates in the
private sector, with 30 branches in the major cities of Pakistan, and has its principle office at Karachi.

It is a scheduled bank principally engaged in the business of commercial banking with a network of
233 branches including a wholesale branch (in the Kingdom of Bahrain, a branch in Karachi Export
Processing Zone and four Islamic Banking branches. The Bank has invested in 66.67% shares of AL
Habib Capital Markets (Private) Limited.

The principal objective of the company is to engage in the business of equity, money market and
foreign exchange, brokerage, equity research and corporate financial advisory and consultancy
services. AL Habib Capital Markets (Private) Limited (the Company) was incorporated in Pakistan as
a (Private) Limited Company on 23 August 2005 under the Companies Ordinance, 1984 and started
operations from14 December 2005.AL Habib Financial Services Limited is a wholly owned
subsidiary of the Bank. The principal objective of the company is to engage in arranging / advising on
financial products and services. AL Habib Financial Services Limited was incorporated in Dubai on
05 March 2008.
Its commercial banking services also include acceptance and placement of funds in the interbank
market; purchase and sale of foreign currencies; trade information and research; remittances and
transfer of funds; purchase and sale of government securities; Sui gas bills collection; and MCB rupee
traveler cheque services.




University of Veterinary and Animal Sciences (UVAS), Lahore                                              5
1.5- Vision statement:




                                VISION
               “To be a quality financial service
               provider maintaining the highest
                standards in banking practices”.




University of Veterinary and Animal Sciences (UVAS), Lahore   6
1.6- Mission statement:




                                    MISSION
          “To be a strong and stable financial institution
        offering innovative products and services while
        contributing towards the National economic and
                              social development”.




University of Veterinary and Animal Sciences (UVAS), Lahore   7
                               1.7- Board of directors:

Name                              Designation                 Occupation

Ali Raza D. Habib                 Chairman                    Businessman


Abbas D. Habib                    CEO & MD                    Banker


Anwar Haji Karim                  Director                    Industrialist


Shameem Ahmed                     Director                    Banker


Hasnain A. Habib                  Director                    Industrialist


Imtiaz Aalam Hanfi                Director                    Banker


Murtaza H. Habib                  Director                    Industrialist


Qumail R. Habib                   Executive Director          Banker


Syed Mazhar Abbas                 Director                    Banker


Tariq Iqbal Khan                  Director                    NIT Nominee


A. Saeed Siddiqui                 Company Secretary           Banker




University of Veterinary and Animal Sciences (UVAS), Lahore                   8
1.8- Management:

                                       General Manager



                                  Deputy General Manager



                                 Assistant General Manager



                                    Senior Chief Manager



                                        Chief Manager



                                        Senior Manager



                                              MGR



                                      Assistant Manager



                                        Officer Grade I



                                        Officer Grade II



                                       Officer Grade III



                                           Sub Officer


University of Veterinary and Animal Sciences (UVAS), Lahore   9
1.9- COMPANY PROFILE:


                                  Bank AL Habib Limited




                       Private
         Type          KSE: BAHL
                       LSE: BAHLTFC



       Founded         Karachi, 1991


    Headquarters       Karachi, Pakistan



                       Banking,
       Industry        Capital Markets,
                       Investment Banking



       Products        Loans, Credit Cards, Savings, Consumer Banking etc...



       Revenue         ▲ $150 million USD (2005)


      Employees        4000


       Website         www.bankalhabib.com


University of Veterinary and Animal Sciences (UVAS), Lahore                    10
1.10- No of branches in Pakistan:
no              City name                                     No of branches
1               Abbotabad                                     1
2               Azad Kashmir                                  2
3               Bahwalpur                                     2
4               Burawal                                       1
5               cakwal                                        1
6               Dera ghazi khan                               1
7               Dharki                                        1
8               Dinga                                         1
9               Faisalabad                                    5
10              Fazilpur                                      1
11              Gawadar                                       1
12              Gharo                                         1
13              Gujranwala                                    3
14              Gujrat                                        2
15              Hafizabad                                     1
16              Haripur                                       1
17              Hyderabad                                     6
18              Hub                                           1
19              Islamabad                                     5
20              Jehlum                                        1
21              Karachi                                       96
22              Kashmore                                      1
23              Kasur                                         1
24              Khanewal                                      1
25              Khanpur                                       1
26              Khushab                                       1
27              Lahore                                        38
28              Larkana                                       1
29              Mandi bahauddin                               1
30              Mirpukhas                                     1
31              Muzaffargarh                                  1
32              Multan                                        7
33              Narowal                                       1
34              Naushero feroz                                3
35              Nawabshah                                     2
36              Okara                                         1
37              Peshawar                                      3
38              Quetta                                        2
39              Rahim yar khan                                3
40              Rawalpindi                                    6
41              Sadiqabad                                     1
42              Sahiwal                                       1
43              Saleh khana                                   1

University of Veterinary and Animal Sciences (UVAS), Lahore                    11
44                Sanghar                                               2
45                Sargodha                                              1
46                Sheikupura                                            3
47                Shikarpur                                             1
48                Sialkot                                               1
49                Sukkur                                                1
50                Sawabi                                                1
51                Tando adam                                            1
52                Toba tek singh                                        1
53                Turbat                                                1
54                Vehari                                                3
55                Wah cantt                                             1
56                Manama Bahrain                                        1


Total no. of branches:
        Presently, the Bank has a network of Two Hundred And Thirty Threebranches in all the
major cities of Pakistan and abroad fully automated and computerized and providing wide range of
banking services.

Head office:


  Branch Name:           Head Office

  Address:               126-C, Old Bahawalpur Road

  Telephone:             (92-61) 544539, 111-786-110

  Fax:                   (92-61) 582471

  Telex:                 42336 ALHML PK


Main branch:
  Branch Name:            Main Branch

     Address:             Mackinnons Building, I. I. Chundrigar Road

     Telephone:           (92-21) 2412986-89 , 2417065-68 , 111-786-110

     Fax:                 (92-21) 2425423 , 2412028

     Telex:               21286 ALHAB PK




University of Veterinary and Animal Sciences (UVAS), Lahore                                        12
Departments:
       Bank Al Habib limited has the following departments;

     Customer services
     Human resources department
     Risk management
     Audit department
     Quality & services department
  




University of Veterinary and Animal Sciences (UVAS), Lahore   13
University of Veterinary and Animal Sciences (UVAS), Lahore   14
2-Management function:
        Planning
        Organizing
        Leading
        Controlling


2.1- Planning:
       Planning is;

    Defining organization goals and objectives.
    Establishing overall strategies for achieving those goals.
    Developing a comprehensive set of plans to integrate and coordinate organization work.

Types of planning:

   Bank Al Habib us e both formal and informal types of planning;

   Informal;

       In informal planning, their planning is not written down, short term focus and specific to an
   organizational unit.

   Formal;

       In formal planning, their planning is written down, specific, long term focus and involves
   shared goals for the organization.

Goals and objective:

     Financial strength and profitability by making profitable advances.
     Customer satisfaction by providing higher quality of services at an affordable cost.
     Growth by expending branch network and deposit base.

    Short term objective;
            Profitability
    Long term objective;
            Profitability
            To optimize the use of resources




University of Veterinary and Animal Sciences (UVAS), Lahore                                            15
                                        Process of planning:




Mission:

         To be a strong and stable financial institution offering innovative products and services while
contributing towards the National economic and social development”.

Strategies:

         Strategies of bank Al Habib are giving loans and accepting deposits.

Types of strategies used by bank Al Habib; cost leadership strategy, differentiation strategy, focused
strategy and etc.

Plans:

         Plans of bank Al Habib are short-term and long-term advances & deposits.

Programs:

       Programs of bank Al Habib are up to one year or more then one year advances, fixed
accounts, and etc.



University of Veterinary and Animal Sciences (UVAS), Lahore                                           16
Policies:

         Policies of the bank Al Habib are profitability, by making profitable advances and customer’s
satisfaction by providing best services at an affordable cost.

Rules:

         The rules are define the upper level management according to situation.

Budget:

         Bank Al Habib always met its budget

2.2- Organizing:
         Managers work in organization. But what is an organization?

An organization is an arrangement of the people to accomplish some specific purpose. Your colleges,
university, banks, governments departments are all organizations because they have three common
characteristics.

First; each organization has a distinct purpose. This purpose is typically expressed in terms of a goal
or set of goals that the organization hope to accomplish.

Second; each organization is composed of people. One person is working alone is not an organization
and it takes people to perform the work that’s necessary for the organization to achieve its goals.

Third; all organizations develop some deliberate structure so their members can do their work.

Purpose of organizing;

    Divide work to be done into specific jobs and departments in bank Al Habib.
    Assign tasks and responsibilities associated with individual jobs in bank Al Habib.
    Coordinates diverse organizational tasks in Bank Al Habib.
    Establish relationship among individuals, groups and departments in Bank Al Habib.
Types of organization;

            I. Tall vs. Flat:
               Bank Al Habib is a tall organization.

            II. Multinational vs. National:
                Bank AL Habib is a multinational organization.

          III. Single vs. Branch:
               Bank Al Habib is a branched organization.

          IV. Mechanistic vs. Organic:
              Bank Al Habib is an organic organization.

            V. Big vs. small:
               Bank AL Habib is a big organization.




University of Veterinary and Animal Sciences (UVAS), Lahore                                           17
2.3-Leadership:
         “The process of influencing a group of people towards the achievement of pre selected goals
is called leadership”. & “The person who makes this process or who can influence others / group of
people and who has managerial authority is called a leader”.

Traits & skills of Leader:

        The leaders of bank Al Habib have the following Traits & Skills in themselves.

    Decision making
    Risk taking and risk bearing
    Stress taking & stress bearing
    Communication power
    Motivation power
    Honesty
    Strong vision
    Interpersonal skills
    Market forecasting skill
    Consistency
    Step forward
    Discipline
    Competitive skills
Types of leader:

        There are three basic types of leaders;

     Dictator
     Democratic
     Laissez-fair


    But the Bank Al Habib has the democratic leaders.

Democratic leader:

        The leaders, Bank Al Habib have, are the types of “Democratic. Because the major portion of
the bank is “decentralized”, that’s why the each leader has the complete power of decision making,
but they are working “collaboratively” in whole organization with each other. All leaders of bank are
involved in decision making, delegating their authorities to their higher qualified employees,
encouraged the participation of their employees in work and gives them opportunities of coaching in
well manners.

Motivation:

Motivation is the very important skill of the leader, without the motivation skill the leader does not
work effectively in the organization. Motivation of the employees to done the certain task and achieve
the organization goals is too much important in the organization for its operations.

Motivation is the duty of the leader toward his subordinate to do for the certain task to accomplish the
organization goals.




University of Veterinary and Animal Sciences (UVAS), Lahore                                          18
2.4- Control:
       Control is the process of monitoring activities to ensure that they are being accomplished as
planned and of correcting any significant deviation.

Importance of control;

        Control is very much important because it is the final link in the management functions. It is
the only way mangers know whether organizational goals are being met and, it not, the reasons why.
The value of control function lies in its relation to planning, empowering employees, and protecting
work place.

In Bank Al Habib the importance of control can not be neglected because it’s a service base
organization and deals with finance. Every employee in this organization has direct of indirect
interaction with financial activities and finance play the key role in the progress of the bank. That’s
why there is significance importance of a good control over all the activities in the bank for
progressing on the right path.

Process of control:

A three-step process including measuring actual performance, comparing actual performance against
a standard and taking managerial action to correct deviation or inadequate standards.

  I.       Measuring actual performance:

To determine what actual performance is managers must acquire the information about the actual
performance of the workers who are working in the organization and overall performance of the
organization.

In Bank Al Habib managers get prepared statistical and financial reports about the employees and
progress of the bank to see that where organization is going. In statistical reports there is all
mentioned about the progress of employees that which employee have achieve how much targets at
the end of the month which were given by there bosses.

 II.       Comparing actual performance with standards:

        The comparing performance determines the degree of variation between actual performance
and the standard performance.

Standards;

In Bank Al Habib following standards are set to compare actual performance!

General standard;

      Compliance with law
      Reasonable assurance and safeguards
      Integrity, competence, and positive attitude
Specific standards;

        Internal control system and all transaction and significant events must be clearly documented,
         and the documentation readily available for examination.


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     Transaction and other significant events are to be without delay recorded and properly
         classified.
     Transactions and other significant events are to be authorized and executed only by
         authorized persons.
     Key duties and responsibilities in authorized and executed only by authorized persons.
     Qualified and continued supervision is to be provided to ensure that internal control
         objectives are achieved.
     Access to resources and records is to be limited to authorized individuals and accountability
         for custody and use of resources is assigned and maintained.
     Managers are to; evaluate promptly findings and recommendations reported by reviewers.
Determine proper actions in response to findings and recommendations, and complete, within
established time frames, all actions that correct or otherwise resolve the matters brought to
management’s attention.

III.     Taking correct actions:

         Corrective action in the organization corrects problem at once to get performance back on
track.

Management of Bank Al Habib revise the results from the comparison of the actual performance with
the standards and then takes the corrective actions to solve that particular problem to ensure the
achievement of targets in the organizations.




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    SWOT analysis
    PEST analysis
    PORTER’s five forces




University of Veterinary and Animal Sciences (UVAS), Lahore   21
External assessment:
3.1- SWOT analysis:




SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves specifying the
objective of the business venture or project and identifying the internal and external factors that are
favorable and unfavorable to achieving that objective.

a)-Strength:

Attributes of the organization that are helpful to achieving the objective.

Strengths of bank Al Habib are as follows:

     ATMs at bank Al Habib are secured friendly and easy to access.
     Younger’s account of the bank Al Habib is good source of promotion for bank Al Habib.

     Bank Al Habib’s brand name is itself a strength

University of Veterinary and Animal Sciences (UVAS), Lahore                                         22
      Bank Al Habib provides online as well as physical training for its employees all over world
      Bank Al Habib have the more then 230 branches in Pakistan

      There is a huge variety of products and services
      They do not consume to much capital on the marketing of their product
      Less risk in their banking system because they are not easily give the credit facilities to the
       customer
      Brand name is also the strength of the bank Al Habib.
      Decent way of dealing with the customers.
      Rapidly expansion of branches in the different cities of Pakistan.
      To much focus on the development and the promotion of the employees.
      Proper online banking system.
      No too much threat of the political environment.
      Sufficient liquidity position.
      Do well socially
      Habib schools 50% concession for the poor peoples
      Current ratio is above 20% of the total deposits
      Controlling Standards


b)-Weaknesses:

Attributes of the organization those are harmful to achieving the objective.

Weaknesses of bank Al habib are as follows:

      Bank Al Habib is not quick to give loans and cards.
      Not Easy application is for applying for a credit card
      No marketing for the promotion of their marketing.
      They are not high risk taker In business activities but in business the term is used “high risk
         high profit, low risk low profit”
      Too much poor Self Marketing Department.
      Low incentives like bonuses overtime pay etc.


c)   – Opportunities:
External conditions those are helpful to achieving the objective.

Opportunities that Bank Al Habib can avail are as follows:

      There is a lot of cushion available for Bank Al Habib in terms of expanding its network of
         branches up to 230 but all this depends on stability of the Pakistan economic and political
         situation




University of Veterinary and Animal Sciences (UVAS), Lahore                                              23
    The opportunities available for Bank Al Habib are financing to SME’s (Small and Medium
       Enterprises) in Pakistan.
    Bank Al Habib can also look for small account holders

    Bank Al Habib has an opportunity to merge with some other bank to increase the number of
       its branches in Pakistan.
    Attractive salary packages should be awarded.
    Marketing department should be started in order to promote the name of Bank Al HAbib.
    On the job training & coaching sessions can be conducted.



d)- Threats:

External conditions which could do damage to the business's performance

Threats that could affect Bank AL Habib in negative way are as follows:

    Day by day competition is increasing not only of the expansion of the banks but also due to
       the launching of the new bank in the market e.g. Barclays.
    Circumstances of Pakistan are a great threat for the existence of the Bank Al Habib.
    More and more banks are launching there operations in Pakistan which is increasing
       competition for the Bank AL Habib.
    The conventional banks those having high growth rate and high market share are always
       being a threat.
    Large business parties have fewer attractions in being a client of BAL-IBD, mainly because
       of excessive amount of documentation.




University of Veterinary and Animal Sciences (UVAS), Lahore                                  24
3.2- PEST analysis:




Political forces;
         The events in the last couple of years; the bomb blast of May 28th 1998 and the subsequent
freezing of the FCA’s, the declaration that Riba is Un-Islamic, and a volatile political scenario that
saw the overthrow of the Nawaz Sharif regime, all contributed in highlighting the important role of
government in the local economy. The freezing of the FCA’s destroyed the confidence of foreign
depositors. Also, the declaration that Riba is against the Sharia, is likely to cause tremendous
uncertainty in the banking sector. After this Pakistan’s army totally holds on the government and push
back the economy. Stability under the new regime is also very important for the economy as a whole.
Continuous political changes have disrupted the policies and objectives as each regime brings with it
its own agenda. Organizations need time to adjust to one regime and then work with it towards
economic enhancement. Due the wrong policies of the government the talibanization also develop in
Pakistan and become the international issue in Pakistan and badly affected the Pakistan repute in the
world and promote the uncertain conditions for the business in the Pakistan. Due to this the investors
are not interested in the Pakistan.


University of Veterinary and Animal Sciences (UVAS), Lahore                                        25
Economic factors;
        The Pakistan economy is more controlled economy, then one where market forces reign
supreme. Several key institutions are stated owned. Thus a discussion of the economic forces that
influence the private organization such as bank Al Habib cannot ignore the substantial role played by
the government in determining the state of the economy. The biggest indicator of the heavy role
enjoyed by the government was evidence when foreign currency accounts (FCA’s) were frozen on the
orders of the ministry of finance in the wake of explosion tests on may 31st 1998.

This and the recent efforts by the state bank to artificially lower the interest rates by revising the repo
rates downwards and encouraging lower bids for T-Bill, highlights the overwhelming role of the
government in the economy. Badla rates are a true indication of market rates at which financial
intuitions are willing to lend but the government, under the dictates of the IMF wants to artificially
lower the interest rates so as to provide investment liquidity within the economy.

General Musharaf period of government putt back the economy of the Pakistan due to the wrong
policies of the government for the economic growth in the Pakistan. Pakistan economy destroyed
badly in that 10 to 11 years of the government, and investors hesitated to invest in the Pakistan, and
also the load shading is another factor that effect the Pakistan economy badly.

This not the end of the story after this Pakistan’ economy face lot of problems like bomb attacks in
Pakistan no electricity and the unstable government, due to this the investor are not invest in the
Pakistan and the existing business men finish their business unit due to the loss.

Social forces:
         A low saving culture has offset the huge population advantage this is enjoyed by Pakistan.
Also culture is dedicated by the religion, and in Pakistan a significant segment of the population is
loath to accept interest for their deposits due to the negative religious implications of such an act.

About 70% of Pakistan’s population is based on rural areas, thus making it harder for banks to
mobilize their deposits within these regions.

     Habib group also started a school system in Karachi for the cherty purpose.
     They give the funds to the poor person on the daily basis

Technological forces:
         Banks in the developed world have been turning to heavy IT investments, which differentiate
their products, provide response times, enhance accessibility and improve customer satisfaction.
Though investing in state-of-the-art host banking solution (Fiserv, Kapiti, etc) , ATM and POS ( point
of sale) networks, visa, MasterCard, and Amex switches, smart cards, telebanking and now internet
banking are common IT investment in the developed world, it is now that these products and services
are gaining faster acceptance in Pakistan.

Bank Al Habib change their technology in IT sector due to the requirements of the current time,
before this they have the poor technology of the IT and un less skilled person in that field but at this
time they replace it with the heavy installation of the IT instruments. They hired new skill employed
and trained them for the efficient and effective work.


University of Veterinary and Animal Sciences (UVAS), Lahore                                             26
3.3- Porter’s five forces analysis:
      The model of the five competitive forces was developed by Michael E. Porter in his book
“Competitive strategy: Techniques for Analyzing Industries and Competitors” in 1980.

Porter’s model is based on the insight that a corporate strategy should meet the opportunities and
threats in the organizations external environment.




 V.     Rivalry Among Competing firms;
        Bank Al Habib limited is facing a strong competition from other private Pakistani banks like
        Metropolitan bank. Soneri bank and Askari Commercial bank. The improved performance of
        the nationalized commercial banks (NCBs) is also the threat for the bank Al Habib. Foreign
        banks are also competing with the bank for same small medium sized companies. The bank is
        overcoming the incentive competition due to its strong reputation as a renowned financial
        group in Pakistan and a long history of experience in the banking sector.




University of Veterinary and Animal Sciences (UVAS), Lahore                                          27
 VI.    Potential entry of new competitors;
        The entry barriers in this market are high. The new banks need permission from SBP so entry
        of new banks is restricted. Also the paid up capital requirement is likely to be raised from
        Rs.500 million to Rs.1 billion.

VII.    Development of substitute products;
        The non banking financial institutions including development finance institutions (DFIs),
        private sector investment banks (PSIBs), leasing corporations (LCs) and Modarbas are almost
        in the same line of business and can be treated to the bank. Other substitutes that compete
        include the national saving certificates, the stock market, its supporting industry and
        brokerage houses.
VIII.   Bargaining power of suppliers;
        The main suppliers in the banking sectors are depositors. Although the bank is given higher
        return then any other bank (12% per annum) to attract the depositors but the low innovation in
        the product and also low investment in the marketing sector of the bank may provide
        difficulties in coming years.
        The regulatory bodies could also be the suppliers as they provide guidelines to the bank from
        time to time. These include the State Bank of Pakistan (SBP), The Corporate Law Authority
        (CLA), The Ministry of Finance and the religious board.
 IX.    Bargaining power of customers;
        The main customers are small traders and exporters based in Karachi and Lahore, majority of
        whom deal in textile related commodities. Since the bank is targeting the short-term trade
        finance market, the bargaining power of customer is substantial as other banks within the
        same sector like Habib bank, Bank Al Falah and Metropolitan are fast catching up with the
        Bank Al Habib in providing services to the traders.




 University of Veterinary and Animal Sciences (UVAS), Lahore                                       28
                     MARKETING MIX
                     IMC




University of Veterinary and Animal Sciences (UVAS), Lahore   29
Internal assessment

4.1- Marketing mix:
        Marketing mix is the heart of the marketing. Marketers make marketing mix decision for
influencing their trade channel as well as their customers. Once they understand these groups,
marketer makes or customize an offering or solution, inform customers recognizing that may other
sources of information also exist set a price that offer a real value, and choose place where the
offering will be accessible.

Product;
        “Product” refers to goods and services you offer to your customers. Apart from the physical
product itself, there are elements associated with your product that customers may be attracted to.
Bank Al Habib have the various products which are given below in detail.
     Consumer banking
     Services
     Investment
     Islamic Banking
     Commercial banking
     Home remittances

Consumer banking;
  i.  Auto loan:




       Bank Al Habib APNI CAR- the car financing facility which gives you complete peace of
       mind through convenient repayment plans.


University of Veterinary and Animal Sciences (UVAS), Lahore                                     30
  ii.   Home loan;




        Decent homes are difficult to purchase in today’s ever changing world of real estate prices.
        Safe and comfortable shelter is the prime necessity for each individual. So let bank Al Habib
        with its home finance solution provide you with the means of buying, constructing your ideal
        home.

 iii.   Home buying;
        Realize your dream with the Bank AL Habib Home Buying facility where you can own your
        personal property. This scheme offers you to buy & own your dream home




University of Veterinary and Animal Sciences (UVAS), Lahore                                       31
 iv.   Home construction;




       Bank AL Habib will help you as our eligible customer to build the house of your dreams!
       Eligibility Criteria
       Pakistani National
       - Salaried or Self Employed
       - Minimum 23 to Maximum 60 Years Old
       - Minimum Net Salary Rupees 20,000/=

  v.   Home improvement;




       For Bank AL Habib, eligible customers, who wish to renovate their homes to meet the
       changing needs of their family?




University of Veterinary and Animal Sciences (UVAS), Lahore                                      32
Services:

   i.   Online banking;




        Bank AL Habib offers Online Banking Facility to its account holders at branches all over
        Pakistan. Cash may be accepted at a branch for crediting accounts at another branch; Cheques
        can be paid by a branch by debiting the customer’s account at another branch.

  ii.   ATM cards;




        Now your Bank AL Habib ATM Card is not just an ATM Card It’s much more…
        Bank AL Habib is a founder member bank of 1 Link, the largest shared ATM network
        countrywide, giving you 24-hour access to your account from any ATMs. This network will
        keep on expanding to give you unmatched and most convenient services.

 iii.   Debit cards;




        Welcome to Cashless Transactions
        In keeping with Bank AL Habib's tradition of bringing you the quality services, we now move
        one step further, to add more convenience to your banking. Your Bank AL Habib ATM Card
        can also work as a Debit Card at thousands of outlets and shops all over Pakistan, displaying
        the ORIX Network logo for a maximum of 25000/= per day.


University of Veterinary and Animal Sciences (UVAS), Lahore                                       33
 iv.   Telebanking;




       Round the Clock Banking
       Anywhere Anytime
       Bank AL Habib, customer convenience comes first. After successfully launching FREE ATM
       Cards and Online Banking. We now introduce yet another facility for all our customers.

       AL Habib TeleBanking Service is a fully automated telephone banking service that brings
       banking at your finger tips, giving you instant access to the information you need. Now you
       can have access to your account… without going to the bank… 24 hours a day, 7 days a
       week, 365 days a year – absolutely free!

  v.   Electronic funds transfer;




       The InterBank and IntraBank Funds Transfer “IBFT” is an electronic funds transfer “EFT”
       facility added to the list of our existing ATM Card services. It is an automated solution for
       bank to bank funds transfers which enable 1Link ATM Cardholders to avail real time funds
       transfer facility from their account to any other account in Bank AL Habib (BAHL) or to any
       3rd Party Account in BAHL or participating 1Link Switch Member Bank’s customer account
       using their bank’s ATM.



University of Veterinary and Animal Sciences (UVAS), Lahore                                      34
 vi.    Remittances;




        Bank AL Habib Limited offers Funds Transfers in Pak Rupees (Inland Local Remittances) or
        in Foreign Currencies, (Foreign Remittances) on request of customer.


vii.    Life insurance;




        It gives us great pleasure to inform our valued customers that Bank AL Habib has arranged
        "Absolutely Free" Insurance Cover to our existing saving accountholders.

viii.   Cash management;




University of Veterinary and Animal Sciences (UVAS), Lahore                                   35
       To provide value added services and solutions is part of our mission statement. We
       understand the complex requirements of corporate when it comes to effectively manage their
       liquidity/cash flows. Our Cash Management suite of services/products is geared towards
       addressing these business and operational complexities with the objective to streamline a
       company's receivables and payables.

Investment:

   1. Young savers account;
             Young Pakistanis, Bank AL Habib has designed a new account specially for you, ...
      your own Young Savers Account.




       Features;

            This is an account for Young Savers of up to 18 years.
             Visit the nearest Bank AL Habib branch with your parent/guardian to open your
             Young Savers Account. You can open an account with as little as Rs. 5/=
            Rate of return on Young Savers Account is expected to be well above the return on
             normal savings accounts. Currently indicative rate of return on balances up to Rs.
             500,000 is 10% P.A and for balances over Rs. 500,000 is 5% P.A, payable six
             monthly.
            Young Savers Account will have Internet Banking facility and ATM Debit Card
             available to your parent/guardian
            Young Savers of 16 years and more will also be eligible to receive ATM Cards and
             can withdraw money through ATMs, if specifically authorized by their
             parents/guardians (certain conditions apply).
            Until you the Young Savers are a minor, i.e., below 18 years, the account will be
             operated by your parent/guardian. When you attain majority, the balance in the
             account will be transferred to a new account which you will open and operate after
             completing required formalities, including the concurrence of your parent/guardian.
            Bank officers will also visit your school to help you open Young Savers Account and
             collect your deposit.




University of Veterinary and Animal Sciences (UVAS), Lahore                                   36
   2. PLs saving account and monthly profit plan;

             Bank AL Habib offers Two Value Added Savings Accounts which are PLS Savings
       Account and Monthly Profit Plan




       Features;

       PLs saving account:

            Profit is paid out to your Account on six-monthly basis.
            There is NO Minimum Balance requirement for PLS Savings Account.
            The indicative Return Payable on "PLS Savings Account" deposits with effect from
             July 01, 2008 is 5.00 % per annum.
            Free Life and Disability Insurance cover for accountholders.

       Monthly profit plan:

            This plan adds to the earning ability of your PLS Savings Account with Bank AL
             Habib.
            Your profit is paid out / credited every month to your Account instead of six-monthly
             as in case of PLS Savings Account.
            NO Special forms or applications, NO Minimum Balance requirement.
            The indicative Return Payable on "Monthly Profit Plan" deposits with effect from
             July 01, 2008 is 5.00 % per annum.
            Free Life and Disability Insurance cover for account holders

   3. Treasurer’s call;

              Corporate societies, trusts and even individuals have large funds
       which are generally idle. Such funds can be put to This plan is open to
       Current Deposited Account. Access to such funds requires only a 24 hour
       notice. Profit is calculated on a daily product basis and credited to your
       Account monthly. The applicable rates for the Treasurer's Call Deposited
       Account, effective January 1, 2005 are: work to earn handsome profits via
       the AL Habib Treasurer's Account.




University of Veterinary and Animal Sciences (UVAS), Lahore                                    37
   4. Growth certificates:

               Bank AL Habib has now introduced “5 Years Growth Certificates” for its customers
       which are for a longer tenor at very attractive rates. Receipts may be issued on PLS Term
       Deposit Receipts clearly marked “5 Years Growth Certificates”.




University of Veterinary and Animal Sciences (UVAS), Lahore                                  38
   5.   Super saving account;


        Bank AL Habib has introduced Super Saving account to meet your needs.




        Features of Super Saving Account.

              Profit is Paid to your account on a quarterly basis.
              Minimum Deposit in the Account must be 500,000 or above.

   6. Her mah munafa imdani main izaffa:

        AL Habib Mahana Munafa Account

        High Returns Reliable and Convenient




University of Veterinary and Animal Sciences (UVAS), Lahore                     39
   7. Senior citizen account;




       High Returns Reliable and Convenient

      In case of a joint account the Senior Citizen will be the primary account holder and other joint
       account holders must be between 18 and 60 years of age.
      Profit will be paid on the first working day of the next month
      Up to 90% financing allowed against deposit..
      The indicative return payable on "Senior Citizen's Account" deposit effective November 01,
       2008 is 11% per annum.
      Free ATM Card.
      Profit may be drawn through Cheque or ATM from any branch of Bank AL Habib.
      Profit is subject to Zakat, Withholding Tax and other Government Levies unless exempted.




Islamic banking:
    1. Deposit schemes;




       Bank AL Habib Limited, Islamic Banking Branch, invites participation in the following
       deposit schemes:

      AL Habib Current Accounts
      AL Habib Saving Accounts
      AL Habib Term Deposits

University of Veterinary and Animal Sciences (UVAS), Lahore                                         40
    2. Islamic financing;




We also offer Islamic Finance for Individual / Traders / Industries, etc. These finances are offered in
the following forms:

       Murabaha Finance
       Ijarah Finance (Leasing)
       Diminishing Musharakah Finance

    3. Declaration of profit;




        Declaration of Profit on various Deposits for the Quarter ended March 31, 2009

Commercial banking:

        We offer a full range of banking services which include:
            Current and deposit accounts for corporate and individual clients.
            Foreign currency accounts.
            Finance through loans, and other credit facilities to the corporate, private and public
               sectors.
            Short term finance of foreign trade through Letters of Credit and negotiation of Bills
               of Exchange.
            Issuance of Guarantees, Bid Bonds, Performance Bonds etc.
            Acceptance and placement of funds in the inter-bank market.
            Purchase and sale of foreign currencies.
            Trade information and research.
            Remittances and transfer of funds.
            Sui Gas Bills Collection on Direct Debit basis.
            MCB Rupee Traveler cheque.




University of Veterinary and Animal Sciences (UVAS), Lahore                                         41
Home Remittance:




Bank AL Habib Limited will encourage all remitters to open account for the beneficiaries in Pakistan
at any BAHL branch to avail following services absolutely free of charge:

      No minimum balance required to open and maintain a Savings account
      Same day value for remittances received before 1300 Hrs PST for deposit in the remitter/
       beneficiary’s BAHL account.
      ATM/Debit Card accepted at over 6000 merchants and 2000 ATMs across Pakistan.
      Free Life Insurance cover for up to PKR 1 million, subject to prevailing terms and conditions
       for PKR Savings account holders.
      Issuance of Pay Order or Demand Draft.
      Direct Debit and Standing Instructions for frequent payments from accounts
      Competitive exchange rates for FCY transactions or transfer from US$ account to PKR
       account.
      Net Banking for round the clock internet banking services from any where at any time for
       balance inquiry, statement of account and funds transfer etc.
      24X7 Call Center and TeleBanking services.




University of Veterinary and Animal Sciences (UVAS), Lahore                                      42
Pricing:

     Profits rate for quarter ending;

                                                       Profit Rates for the Quarter Ended


                Products                    Mar 31, 2009   Dec 31, 2008   Sep 30, 2008    Jun 30, 2008


Saving Deposit (1 – 999,999)                   5.02%          5.17%           5.25%            5.20%


Saving Deposit (1,000,000 – 9,999,999)         5.16%          5.33%           5.52%            5.50%


Saving Deposit (10,000,000 – 49,999,999)       5.37%          5.57%           5.61%            5.75%


Saving Deposit (50,000,000 & above)            5.73%          5.73%           5.95%            5.90%


Term Deposit - 1 month                         7.00%          7.00%           6.20%            6.00%


Term Deposit - 3 months                        8.50%          8.50%           7.60%            7.50%


Term Deposit - 6 months                        9.25%          9.25%           9.25%            8.50%


Term Deposit - 1 year (profit to be paid
                                              10.50%            -               -                -
monthly)


Term Deposit - 1 year (profit to be paid
                                              10.75%         11.00%          10.50%            10.20%
maturity )


Term Deposit - 3 years (profit to be paid
                                              11.00%         10.75%          10.75%            9.50%
monthly)



     Treasurer’s call:

Deposit Amount                                                                 Rate per Annum
On Balances Below Rs. 250,000                                                         Nil
On Balances from Rs. 250,000 to 999,999                                             1.25%
On Balances from Rs. 1,000,000 to 4,999,999                                         1.50%
On Balances above Rs. 5,000,000>                                                    1.75%
On Balances above Rs. 50,000,000                                          To be quoted by zonal office

     Super Saving Account.

Expected Rates of Profit
Term                                                                                   Rate
From Rs.500,000 to Rs.1,999,999.99                                                    4% P.A
From Rs.2,000,000 to Rs.9,999,999.99                                                  5% P.A
From Rs.10,000,000 and above                                                          6% P.A


University of Veterinary and Animal Sciences (UVAS), Lahore                                             43
    Growth certificates:

Tentative Profit Rate
Term                                                                 Rate
1st 6 months                                                         6.00%
2nd 6 months                                                         6.50%
3rd 6 months                                                         7.00%
4th 6 months                                                         7.50%
5th 6 months                                                         8.00%
6th 6 months                                                         8.50%
7th 6 months                                                         9.00%
8th 6 months                                                         9.50%
9th 6 months                                                        10.00%
10th 6 months                                                       10.50%

    Her mah munafa imdani main izaffa:

Year Deposit                                                   11.00% p.a*
2 Year Deposit                                                 11.25% p.a*
3 Year Deposit                                                 11.50% p.a*
4 Year Deposit                                                 11.75% p.a*
5 Year Deposit                                                 12.00% p.a*

    Home remittance:

 For Remittances in Australian Dollars

 SNo       BANK NAME                             SWIFT/BIC                    ACCOUNT NO

           NATIONAL AUSTRALIA BANK LTD,
    1                                                 NATA AU 33 033            1803071765500
           MELBOURNE

 For Remittances in Canadian Dollars

 SNo       BANK NAME                             SWIFT/BIC                  ACCOUNT NO

    1      ROYAL BANK OF CANADA, TORONTO               ROYC CA T2                208-655-1

 For Remittances in Euros

 SNo       BANK NAME                               SWIFT/BIC                 ACCOUNT NO

       1   COMMERZBANK A.G. FRANKFURT AM MAIN           COBA DE FF           400 880 7125 01 EUR

 For Remittances in GB Pounds

 SNo       BANK NAME                               SWIFT/BIC                ACCOUNT NO

       1   HABIBSONS BANK LIMITED, LONDON               HSBL GB 2L               21003565

       2   HSBC BANK PLC, LONDON                        MIDL GB 22               35783575

       3   LLOYDS TSB BANK PLC, LONDON                  LOYD GB 2L               01003578



University of Veterinary and Animal Sciences (UVAS), Lahore                                     44
 For Remittances in Japanese Yen

 SNo       BANK NAME                                     SWIFT/BIC              ACCOUNT NO

     1     NATIONAL BANK OF PAKISTAN, TOKYO                   NBPA JP JT               21059

 For Remittances in US Dollars

 SNo       BANK NAME                                     SWIFT/BIC                ACCOUNT NO

     1     CITIBANK NA, NEW YORK                                CITI US 33             36200709

     2     HABIB AMERICAN BANK, NEW YORK                       HANY US 33              20729933

           JPMORGAN CHASE BANK NATIONAL
     3                                                         CHAS US 33            0011685302
           ASSOCIATION, NEW YORK

           MASHREQBANK PSC,
     4                                                         MSHQ US 33              70120054
           NEW YORK

     5     STANDARD CHARTERED BANK, NEW YORK                   SCBL US 33          3582-035242-001

 For Remittances in Swiss Francs

 SNo       BANK NAME                                     SWIFT/BIC              ACCOUNT NO

                                                                                 0835-0902223-53-
     1     CREDIT SUISSE, ZURICH                            CRES CH ZZ 80A
                                                                                       000




Placement:
       The placement strategies of the bank Al Habib is very effective and strong. They have over
230 branches in the major cities of the Pakistan. The products and services are provided to the
consumers at the branches.

Promotion:
         Promotion is the last p of the marketing mix. And the some marketers say that the most
important part of the marketing mix is promotion. Organizations are very care full about the
promotion of their products in the market; adopt the promotional strategies for the effective promotion
of their products.

Bank Al Habib uses the different strategies for the promotion of their products according to the
environment of the market for capturing the most of the customers in the market. Thety used
strategies such as;

     Sales promotion
     Introducing innovative products




University of Veterinary and Animal Sciences (UVAS), Lahore                                          45
4.1- INTEGRATED MARKET COMMUNICATION:

Any organization is work on the some goals and objectives, and these goals and objective are depend
or based on the some pillars without these pillars the goals are not achieved. IMC is the most
important pillar out of these pillars. IMC is the combination of different marketing or promotional
tools that creates synergy effect inn the market.
Marketer used the IMC for creating the need and wants in the consumers mind. They have selected
the different media for the promotion of their products. They used the commonly print & electronic
media for the promotion of their products.

Electronic media:
        Bank AL Habib used the two types of the electronic media in the market to for the target
consumers.
     Radio;
               The marketing management of the Bank Al Habib is used the FM radio for the
        promotion of their product and hit the segment of their target consumers.




University of Veterinary and Animal Sciences (UVAS), Lahore                                        46
     Television;
      Bank Al Habib used the television adds for the promotion of their product (younger’s savers
      account) on the cartoon network channel. They select this channel for the target their segment
      for their product in the market. Because this account is especially for the young age
      generation, so they select this channel because the young generation is mostly focus on the
      cartoons rather then the movies & drama




Print media:
         They are selected the print media more then the other media for the promotion of their
products, and they target their segment in the market. They are not used the both the media electronic
and media like other organization. They used print media for the capturing the higher class and also
target the middle class.




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CONCLUSION

From the above in formation we are concluded that Bank Al Habib due very well in the market. They
used the good strategies for accomplish of the organization goals and objective. Bank Al Habib met
their budget in the year very effectively, increase the branches in Pakistan major cities, and increase
the ATM’s network. They used the strategy sales promotion for the promotion for the promotion of
their product in the market, introduced the new product in the market like younger’s savers account
and etc.

They used the frontal attack in the market for the promotion of their business in the market like other
banks in the Pakistan. They are politically strong because they have no account of that kind that is
effected by the politically instability in the country. They are to much aware in giving the credit
facility to the customer. Due to this the bad debts ratio of the bank is to much low 0.05%.

They are also due the work socially for the country for the promotion of the organization in the
Pakistan society. Bank Al Habib has the good position in liquidity because they have the C.A ratio
20% of total deposits.

Bank Al Habib is mostly emphasis on the financing and deposits that is the better for the effective
work of the organization. They are poor in the IT department but they are solving this problem in last
year by installing a new system of IT, and also train their employees hire the skilled employees for the
IT sector. By this performance of the IT sector of the Bank Al Habib is too much improved.




University of Veterinary and Animal Sciences (UVAS), Lahore                                          54
University of Veterinary and Animal Sciences (UVAS), Lahore   55
SUGGESTION

They do the well but there is still need to improve the business operations.

     They should improve the marketing department for the promotion and the better result for the
      organization
     They should used the electronic media frequently for targeting the higher class of the
      customers
     They should sponsor the events in Pakistan and also in the world for the promotion of the
        business.
     Bank Al Habib should become quick to give loans and cards.
     Make Easy procedure for applying for a credit card
     Give more incentives like bonuses overtime pay etc.
     Make strong Self Marketing Department.




University of Veterinary and Animal Sciences (UVAS), Lahore                                    56
Appendix

We visit the Bank Al Habib and take interview and received the information about the
marketing and management of bank Al Habib.
We get the information from Mr. Rehan Khan who is working as an officer Grade-I




University of Veterinary and Animal Sciences (UVAS), Lahore                            57
BIBLIOGRAPHY


We took the information from the following sources;

      Google
      Scribd
      Wikipedia
      Investopedia.
      Print media
      TV adds




University of Veterinary and Animal Sciences (UVAS), Lahore   58
GLOSSARY

A
Accessible (a town accessible by rail", available)

Accomplish; to gain with effort

Assurance (authority); Freedom from doubt; belief in yourself and your abilities

Assessment (judgment, he classification of someone or something with respect to its worth)



B
Bidding; An authoritative direction or instruction to do something

Bearing; Relevant relation or interconnection
Brokerage firms; A stock broker's business; charges a fee to act as intermediary between buyer and
seller



C
Corporate (corporate rates"; "corporate structure")

Compliance ; (Acting according to certain accepted standards)

Conventional (conventional wisdom"; "she had strayed from the path of conventional behavior";
"conventional forms of address")

Commodities; good, trade goods, Articles of commerce



D
Deliberate; Carefully thought out in advance

        Dictator; A ruler who is unconstrained by law
Democratic; Belong to or relating to the Democratic Party
Disability (The condition of being unable to perform as a consequence of physical or mental
unfitness)

Distinct; (often followed by 'from') not alike; different in nature or quality

University of Veterinary and Animal Sciences (UVAS), Lahore                                          59
E
Engaged; Having ones attention or mind or energy engaged

Empowering ; Give or delegate power or authority to



G
Guardian (A person who cares for persons or property)



I
Inadequate (poor, short, unequal)

Launching (The act of moving a newly built vessel into the water for the first time)

incentives (A positive motivational influence)

Integrate; Make into a whole or make part of a whole

 Incorporated; Formed or united into a whole



L
Levies (charge imposed and collected)



O
Origin; The place where something begins, where it springs into being

Optimize; make optimal; get the most out of; use best



R
Regime (The organization that is the governing authority of a political unit)

Renovate ( repair restore fix up)

Remittances (A payment of money sent to a person in another place)

Readily (promptly, quick)

University of Veterinary and Animal Sciences (UVAS), Lahore                            60
S
Subsequent (subsequent developments)

Strategies; An elaborate and systematic plan of action

Simultaneously; At the same instant

Subsidiary; Functioning in a supporting capacity




V

Venture (speculation); Proceed somewhere despite the risk of possible dangers

Readily (promptly, quick)




University of Veterinary and Animal Sciences (UVAS), Lahore                     61
INDEX

Introduction of Habib family; 1

Introduction of Habib groups of companies; 1,2,3,4

History of Habib group in Pakistan: 4

Introduction of Bank AL_HABIB: 5

Vision statement: 6

Mission statement: 7

Board of directors: 8

COMPANY PROFILE: 10

No of branches in Pakistan: 11, 12

Management function: 13, 14, 15, 16, 17

SWOT analysis: 20, 21, 22

PEST analysis: 23, 24, 25

Porter’s five forces analysis: 25, 26

Marketing mix: 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42




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