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					Internship Report                           1                       Habib Bank Limited



                ACKNOWLEDGEMENT


        No one can say that I am perfect, everyone should admit that without the help

of ALLAH and His people a man can‘t get anything so I bow my head before

almighty Allah with gratitude. I am also very much thankful and presents salute to

many individuals who have helped me in shaping this report .I am also very much

thankful to lot of former fellows and contemporary colleagues who took the time and

trouble during the last few days to speak to me about the way this text could be

further improved. I have no wards to express my gratitude to my advisor Mr. Bilal

Khan Lodhi for his intellectual guidance without which it could have been rather

difficult for me to complete this report.


        I am also very thankful to the staff Habib Bank Ltd. Jinnah Chowk branch

especially to Mr. Khalid Mahmood Dogar (Manager Operations) who provided me an

opportunity to work in friendly environment.

        It was an honor and pleasure to work with:

         Mr. Rao Saleem Ullah khan (Manager HBL Jinnah Chowk branch)

         Mr. Asif Iqbal (Asst. Manager Foreign Trade Department)

         Madam Aysha (Public Relation Officer)

         Mr. Haroon Butt (Manager Credit Department)

         Mr. Ali Raza Shah (Head cash Department)
Internship Report                  2                          Habib Bank Limited

                              Table of Contents

    No.                          Description                         Page No.

     01                       Executive Summary                           03

     02                      Evolution of Banking                         04

     03                 Commercial Banking in Pakistan                05 to 09

                         History of Banking in Pakistan

     04                       About HBL Pakistan                      10 to 19

                            History and Background

                                 Privatization

                       HBL‘s Mission, Vision and values

                               Board of Directors

                                 Management

                             Corporate information

     05                         SWOT Analysis                             20

     06                       Operations of HBL                       25 to 57

                         Banking Departments in HBL

                         Products and services of HBL

     07                 Learning and Duties as an Intern              58 to 64

                         Foreign Exchange Department

                           Bills clearing Department

                              Credit Department

                       Account, lockers, ATM Department

                                 Assignments

                             Impact on my Career

     08             Award and Financial performance in 2008           63 to 73

     09                       Recommendations                             74

     10                  Glossary, Bibliography, Index                76 to 80
Internship Report                      3                               Habib Bank Limited




                    EXECUTIVE SUMMARY
        Every student of Master in Business Administration at COMSATS Institute of
Information Technology has an essential requirement to do Six to Eight weeks
internship in any of the well reputed organization. The purpose of this program is to
acquaint the students with practical applications of theoretical concepts taught to
them during conduct of their MBA program. The internship in Habib Bank was
arranged by the job placement cell of the institute. Really, it was a nice opportunity to
have a close comparison of theoretical concept in practical field, involving the use of
primary and secondary data. All the efforts on the way are summarized in shape of
this Internship Report. Report starts with the topic evolution of banking. The word
'Bank' is said to have been derived from the words Bancus or Banque or Bank. This
history of banking is traced to as early as 2000 B.C. Talking about commercial
banking in Pakistan It was very difficult for Pakistan to build up its own Banking
system immediately after independence without sufficient resources. By 30th June
1948 the number of schedule banks in Pakistan declined from mere scratch. Today
there are more than 7000 branches of commercial banks along with an established
network of supplementary financial institutions. All this development in the banking
sector is the result of untiring efforts of six decades. HBL was the first commercial
bank to be established in Pakistan in 1947. Over the years, HBL has grown its
branch network and become the largest private sector bank with over 1,450
branches across the country and a customer base exceeding five million
relationships.

        On December 29, 2003 Pakistan's Privatization Commission announced that
the Government of Pakistan had formally granted the Aga Khan Fund for Economic
Development (AKFED) rights to 51% of the shareholding in HBL, against an
investment of PKR 22.409 billion (USD 389 million). This report contains information
about HBL‘s board of directors, management, mission, vision and values. HBL‘s
operations are discussed in light of its working department in the branches like cash,
clearing, foreign exchange and accounts department and also in light of its services
and products which it is offering to customers‘ weather they are individual, business,
corporate or agriculture field related customers. HBL is currently offering phone
banking, internet banking and various cash management services for the facilitation
of its customers. HBL‘s car to car loan has its own uniqueness in Pakistan‘s banking
Internship Report                     4                             Habib Bank Limited

sector. HBL‘s branch network is extended all over the Pakistan which has its
competitive edge over all other private sector banks in Pakistan.

        During the time of my internship in Habib Bank Jinnah Chowk branch Sahiwal
I got the chance to work in all the departments of HBL working there. Duties and
learning in each department is given in this report. Talking about financial
performance of the bank in 2008 all the financial indicators are showing positive
results when the financial performance of the bank in 2008 is compared with
financial performance of 2007. During 2008 HBL also won some awards. At the end
of this report I have given my suggestion for the improvement of the bank.


                    EVOLUTION OF BANKING

        The word 'Bank' is said to have been derived from the words Bancus or
Banque or Bank. This history of banking is traced to as early as 2000 B.C. The
priests in Greece used to keep money and valuables of the people in temples. These
priests thus acted as financial agents. The origin of banking is also traced to early
goldsmiths. They used to keep strong safes for storing the money and valuables of
the people. The persons who had surplus money found it safe and convenient of
deposit their valuables with them. The first stage in the development of modern
banking, thus, was the accepting of deposits of cash from those persons who had
surplus money with them.

        The goldsmiths used to issue receipts for the money deposited with them.
These receipts began to pass from hand to hand in settlement of transactions
because people had confidence in the integrity and solvency of goldsmiths. When it
was found that these receipts were fully accepted in payment of debts; then the
receipts were drawn in such a way that it entitled any holder to claim the specified
amount of money from goldsmiths. A depositor who is to make the payments may
now get the money in cash from goldsmiths or pay over the receipt to the creditor.
These receipts were the earlier bank notes. The second stage in the development of
banking thus was the issue of bank notes.
Internship Report                     5                              Habib Bank Limited

        The goldsmiths soon discovered that all the people who had deposited money
with them do not come to withdraw their funds in cash. They found that only a few
persons presented the receipts for encashment during a given period of time. They
also found that most of the money deposited with them was lying idle. At the same
time; they found that they were being constantly requested for loan on good security.
They thought it profitable to lend at least some of the money deposited with them to
the needy persons. This proved quite a profitable business for the_ goldsmiths. They
instead of charging safe keeping charges from the depositors began to give them
interest on the money deposited with them. This was the third stage in the
development of banking.




              COMMERCIAL BANKING IN
                  PAKISTAN
        It was very difficult for Pakistan to build up its own Banking system
immediately after independence without sufficient resources. Following the
announcement of the partition plan in June 1947 there was a haste movement on the
parts of banks to transfer their funds and accounts across the borders. The banks
having their registered offices in Pakistan were transferred to India. In an effort to
bring about the collapse of the new state by the persecuting an international policy of
withdrawal, the Indian bank offices closed quickly. Those banks, which stayed, were
considering the winding up of their business. By 30th June 1948 the number of
schedule banks in Pakistan declined from mere scratch.
Internship Report                       6                               Habib Bank Limited

        Today there are more than 7000 branches of commercial banks along with an
established network of supplementary financial institutions. All this development in
the banking sector is the result of untiring efforts of four decades.




History of Banking In Pakistan
        The interesting point which I observed during the span of mine internship was
the historical background of Banking & Financial sector which is the one in which
great improvement and growth is observed since the formation of Pakistan. For
studying the growth of this sector we can divide it into three stages, which are as
follows:

a)      Pre-Nationalization Era
b)      Nationalization Era
c)      Post Nationalization Era




             a) Pre Nationalization period:


        There were only two Muslim banks in Indo Pak before partition; they were
.Habib Bank Ltd. (est. in 1941 at Bombay) & Australia Bank Ltd. (est. In 1944 at
Lahore). All other banks, at that time, were either owned by Hindus or Foreigners.



        At the time of partition there were 631 bank branches in area which came
under Pakistani control. But due to blood shed and violence at large scale, mostly
branches were closed and the disparity can be assessed from the fact that on July
1948 there were 195 branches with deposits of Rs.88 crore (880 million) only. Also a
factor lagging in Pakistani industry was a central bank of its own, by that time
Reserve Bank of India was acting as central bank for both countries and same
currency notes were used in both territories. But Reserve Bank of India was biased
and Set down Pakistan on many occasions such as the issue of funds transfer etc.
Internship Report                      7                               Habib Bank Limited

        In this period drastic steps were taken in government sector for the
improvement of overall position. The private sector also responded to these changes
and some very positive changes were observed. Some of the steps taken by the
government in this regard were as under:

1) Inauguration of State Bank of Pakistan (SBP) on 1st July, 1948.
2) Setting up of National Bank of Pakistan in November, 1949 to control the
   'jute' export in East Pakistan and to act as agent of SBP.
3) Larger powers were given to SBP through SBP Act (1956) for controlling
   purposes.
4) Banking Companies Ordinance 1962 for protection and guidance to banks.
5) Establishment of specialized banks, such as ADBP (1952);
        a) HBFC (Nov, 1952);
        b) P1CIC (Oct, 1957)
        c) IDBP (Aug. 1961);
        d) NDFC (Jan, 1973).
        These were the steps, which built a strong banking sector in Pakistan. This is
also obvious from the facts that by 1973 there were almost 10 foreign banks were
working in Pakistan and all over deposit position was around Rs.2300 crore (23,000
million). A bird eye view of 5 top banks was as given below:
                           BANK POSITION IN 1973

                    BANK         NO. OF BRANCHES                DEPOSITS
                                                               (Rs in Million)
                    HBL                    667                     6,160

                    NBP                    579                     5,660

                    UBL                    497                     5,670

                    MCB                    506                     1,640

                    ABL                    145                      570
Internship Report                        8                                  Habib Bank Limited




B) NATIONALIZATION PERIOD
        On January 01, 1974 all Pakistani banks were nationalized through
Nationalization Act 1974. Under this law all Pakistani banks became a public
property. All small banks were merged in bigger banks to create 5 major Pakistani
banks Pakistani banks. These banks were to control by Pakistan Banking Council.
There are still controversies about this act of government as whether it contributed in
success of failure of banks. However the major changes after nationalization were as
follows:

       Working of banks was extended to under developed areas.

       Market expansion for credit and deposits.

       Decrease in service level of bank officers.

       Decrease in profitability as well.



        However the effect of expansion was enormous and it can also be depicted
with the help of table 2 which shows the deposit & branch positions of different
nationalized banks.




                           BANK POSITION IN 1992
                    Bank          No. of Branches     Deposits (Rs. In Millions)

       HBL                              1926                      153,431

       NBP                              1448                      128,679

       UBL                              1684                      87,482

       MCB                              1288                      50,013

       ABL                              750                       33,757

       TOTAL                            7096                      453,362
Internship Report                     9                             Habib Bank Limited



C)      POST NATIONALIZATION ERA
        In 1990 the government decided to denationalize all the nationalized
institutes. Some was also suggested in banking sector. For this purpose,
amendments were made to Nationalization Act 1974 and two nationalized banks
were privatized. Along with this a permission to open banks in private sector was
also granted. The rules regarding establishment of new banks and for incoming
foreign banks were also relaxed.

        The- privatized banks are;

        a) MCB taken up by a private group in April, 1991

        b) ABL taken up by its own employees in September, 1991.

        c) UBL taken up by UAE party in 2002.

        d) December 29, 2003 HBL was taken by AKFED
        After these changes a large number of private and foreign banks started their
operations in Pakistan and the present status can be seen from the following figure:



          Structure of Financial Sector in Pakistan


        Scheduled Banks                                 NBFIs
               (47)                                  - Modarabas
       - Commercial banks                       - Leasing companies
        - Specialised banks                        - Mutual funds
                                            - Specialised financial (DFIs)
                                                 - Investment banks
                                            - Housing Finance Companies




       Specialised Banks                  Commercial Banks




                         Foreign Banks                   Domestic Banks
                              (22)                           (25)
Internship Report                        10                               Habib Bank Limited




             ABOUT HABIB BANK LIMITED
HBL was the first commercial bank to be established in Pakistan in 1947. Over the
years, HBL has grown its branch network and become the largest private sector
bank with over 1,450 branches across the country and a customer base exceeding
five million relationships. With a presence in 25 countries, subsidiaries in Hong Kong
and the UK, affiliates in Nepal, Nigeria, Kenya and Kyrgyztan and representative
offices in Iran and China, HBL is also the largest domestic multinational. The Bank is
expanding its presence in principal international markets including the UK, UAE,
South and Central Asia, Africa and the Far East. Key areas of operations encompass
product offerings and services in Retail Banking. HBL has the largest Corporate
Banking portfolio in Pakistan with an active Investment Banking arm. SME and
Agriculture lending programmes and banking services are offered in urban and rural
centers. In the UK and GCC, HBL focuses on trade finance and remittances for the
South Asian Diaspora in addition to basic banking facilities. HBL has always been a
bank and a brand for the masses, with a history that is inextricably linked with the
history of Pakistan itself. As it continues to grow, both locally and abroad, it strives to
embody its brand personality: honest, approachable, and inclusive. HBL is currently
rated AA+ (Long term) and A1+ (Short term)*. It is the first Pakistani bank to raise
Tier II Capital from external sources.




*Rating given by JCR-VIS
Internship Report                     11                               Habib Bank Limited



      HISTORY AND BACKGROUNG

        Habib Bank Limited was established by Mr. Ismail Habib (Late) on August 25,
1942 at Bombay.      It was the first Muslim Bank of the sub-continent.          It was
established with a paid up capital of Rs. 2.5 million. At an early stage, the number of
its branches was only 12.
        HBL established operations in Pakistan in 1947 and moved its head office to
Karachi. Our first international branch was established in Colombo, Sri Lanka in
1951 and Habib Bank Plaza was built in 1972 to commemorate the bank‘s 25th
Anniversary. With a domestic market share of over 40%, HBL was nationalized in
1974 and it continued to dominate the commercial banking sector with a major
market share in inward foreign remittances (55%) and loans to small industries,
traders and farmers. International operations were expanded to include the USA,
Singapore, Oman, Belgium, Seychelles and Maldives and the Netherlands.




          PRIVATIZATION OF HABIB BANK

        On December 29, 2003 Pakistan's Privatization Commission announced that
the Government of Pakistan had formally granted the Aga Khan Fund for Economic
Development (AKFED) rights to 51% of the shareholding in HBL, against an
investment of PKR 22.409 billion (USD 389 million). On February 26, 2004,
management control was handed over to AKFED. The Board of Directors was
reconstituted to have four AKFED nominees, including the Chairman and the
President/CEO and three Government of Pakistan nominees.
Internship Report                      12                              Habib Bank Limited




 HBL’S VISION, MISSION AND VALUES

Vision
Enabling people to advance with confidence and success .

Mission
To make our customers prosper, our staff excel and create value for shareholders.

Values
Our values are the fundamental principles that define our culture and are brought to
life in our attitude and behaviors. It is these values that make us unique and
unmistakable. Our values are defined below:


Excellence
This is at the core of everything we do. The markets in which we operate are
becoming increasingly competitive, giving our customers an abundance of choice.
Only through being the very best – in terms of the service we offer, our products and
premises - can we hope to be successful and grow.

Integrity
We are the leading bank in Pakistan and our success depends upon trust. Our
customers - and society in general – expect us to possess and steadfastly adhere to
high moral principles and professional standards.

Customer Focus
We understand fully the needs of our customers and adapt our products and
services to meet these. We always strive to put the satisfaction of our customers
first.

Meritocracy
We believe in giving opportunities and advantages to our employees on the basis of
their ability. We believe in rewarding achievement and in providing first-class career
opportunities for all.

Progressiveness
We believe in the advancement of society through the adoption of enlightened
working practices, innovative new products and processes and a spirit of enterprise.
Internship Report           13           Habib Bank Limited



                    BOARD OF DIRECTORS


NAME                 DESIGNATION



Sultan Ali Allana    CHAIRMAN




R. Zakir Mahmood     PRESIDENT & C.E.O




Mushtaq Malik        DIRECTOR




Ahmed Jawad          DIRECTOR




Yasin Malik          DIRECTOR




Moez Jamal           DIRECTOR
Internship Report                 14    Habib Bank Limited



                           MANAGEMENT




PIC. FROM HBL CORPORATE FROFILE
Internship Report             15               Habib Bank Limited



                    MANAGEMENT HIERARCHY


                            PRESIDENT




                        BOARD OF DIRECTOR




                      MEMBER EXECUTIVE BOARD




                          REGIONAL CHIEF




                           ZONAL CHIEF




                         BRANCH MANAGERS
Internship Report                  16                        Habib Bank Limited



                      DESIGNATIONS

                                  President


                    Senior Executive Vice President (SEVP)


                         Senior Vice President (SVP)


                             Vice President (VP)


                        Assistant Vice President (AVP)


                               Officers Grade 1


                               Officer Grade II


                               Officer Grade III


                                   Cashier


                                    Clerks


                                    Peon
Internship Report                       17                      Habib Bank Limited



                    CORPORATE INFORMATION

                            Head Office
                            HBL Plaza
                            I. I. Chundrigar Road
                            Karachi-75650, Pakistan.
                            Tel : +92 (21) 2418000 [50 lines]
                            Fax : +92 (21) 9217511



Registered Office
4th Floor, Habib Bank Tower
Jinnah Avenue
Islamabad, Pakistan.
Tel: +92 (51) 2872203
Fax: +92 (51) 2872205


Registrars
THK Associates (Pvt.) Ltd.
Ground Floor, State Life Bldg No. 3
Dr. Ziauddin Ahmed Road
Karachi, Pakistan.
Tel: +92 (21) 111-000-322


Websites
Corporate website:
www.hbl.com
Treasury website:
www.hblgtr.com.pk
Ebank (internet banking):
www.hblebank.com




Auditors
KPMG Taseer Hadi & Co.
Chartered Accountants
Internship Report        18           Habib Bank Limited



                    GLOBAL LOCATION
Internship Report                 19       Habib Bank Limited



                        GLOBAL LOCATIONS




PIC. FROM HBL CORPORATE FROFILE
Internship Report                        20                             Habib Bank Limited



                          SWOT ANALYSIS
Strengths

        Strength can be defined as an area where a company is best at doing
something or a feature that puts the company at an advantage in comparison to its
competitors. HBL enjoys the following strengths:


     HABIB BANK is a well established bank enjoying long history of over 65 years
        of experience and profitable operation.
     HBL is the largest private bank in Pakistan now and people trust is very high.
     It has the largest branch network among private banks of Pakistan.
     HBL has been very effective in controlling costs as it successfully restructured
        itself after its privatization. During this process more than 1,600 employees
        were relieved under a golden handshake scheme and 110 branches were
        closed.
     Excellent branches appearance gives an edge to HBL over other banks. The
        branches are well furnished even in less developed areas where other banks‘
        branches give a poor view.
     HBL has the ability to bring innovative products and services like personalized
        service, electronic funds Transfer, sophisticated financial products such as
        electronic banking, auto-teller machines and evening banking.
     The Bank‘s Rupee Traveler Cheques have been market leaders for the past
        six years.
     HBL‘s car to car financing scheme is unique in auto loan segment.
     Habib bank is an internationally recognized name in banking services and
        products.
     HBL has forged strategic alliances with international banks for expanding its
        network further, both locally and internationally.
Internship Report                         21                            Habib Bank Limited

Weaknesses

A weakness is defined as an area in an organization where the organization is not as
good at doing something as its competitors or a thing which an organization lacks
thus putting the organization at disadvantage in comparison to its competitors.
Based on the above definition, HBL has the following weaknesses.


     Lack of communication between bank and customers about terms and

        condition of products and services. Like centralization of cheque book issuing

        process.

     Employees at branch level are not properly motivated to work by heart. They

        take the all routine activities as a boring job.

     Most of the employees lack managerial training as they are not properly

        educated. Due to seniority, they have moved up on the hierarchy line to

        Grade-I, II or III positions having hardly bachelor degrees. This type of senior

        staff cannot apply the modern and innovative techniques of management in

        decision making.

     Mission of HBL is not well defined.

     Though HBL is second largest bank in Pakistan, yet the fact remains that it is

        not market leader as NBP. Its total assets are always less than NBP total

        assets.

     Now as it is a privatize bank that is why GOVERNAMENT support to HBL

        decreased as it was in past
Internship Report                       22                            Habib Bank Limited

Opportunities

An opportunity can be defined as a change in external environment which if properly
exploited with the organizational strengths will result in enhanced sales, market
share, or income. Using its strengths, HBL can avail the following opportunities.
Opportunities require explanation therefore I have used headings instead of arrows


E-Banking

Generally speaking, three factors, quickness, easiness and cheapness have become
the catchwords for the competitiveness and usefulness of all the business
operations. Particularly it is commonplace today to say that banking is undergoing a
radical transformation. The symptoms are new products, new players, new channels
etc. This transformation is taking place across all sectors of the banking industry.
That is why Habib bank urgently needs to improve their ability, to think strategically
about IT investments. Only those banks that use their technology resources
effectively have the opportunity to secure real competitive advantage in this fast-
changing industry through real product or service differentiation.


High mark up rates

Of late markup rates have increased considerably. Present rates are 4% above
KIBOR i.e. 16% appx. High markup rate has decreased the interest of people in
loaning from from banks. Habib bank can increase its income by offering loan at
lower interest rate than other banks.


ONLINE BANKING

It is doing banking transactions through our home P.C. The banks that do business
through net have Websites. The customer clicks into the Website and gets the
history of the bank. Then he can demand the necessary application form through the
net. He fills in the form and passes it on to the bank. The Online banking is fast
gaining ground in Pakistan. Some software companies are also offering network-
banking facilities. So Habib bank should focus heavily on providing online banking
faculties to its customers. Currently it is doing the same.
Internship Report                         23                           Habib Bank Limited



CORPORATE BANKING TERMINAL (CBT)


Large corporate customers can log into the bank's database and have access to
their accounts/transactions from their business houses. This facility has still not been
started for customers in Pakistan. So Habib can focus on that.
AUTOMATIC TELLER MACHINE (ATM)


This system is known as "Any Time Money" because it allows customers who have
an ATM card to withdraw money at any time from the bank without interacting with
human teller. Since the ATM machine can be installed anywhere like petrol bunks,
markets, railway stations etc, and can well be linked to the main computer. It allows
customers to transact with the bank 24 hours a day and 365 days a year. They allow
the customers to transfer money to and from accounts to view account information,
to receive cash. It can also be used to deposit cheques and cash into the
accounts. No bank in Pakistan is offering this service currently. So an opportunity
exists for Habib bank to differentiate.


Rate of return


The range and choice of products available & offered by the commercial banks is
limited. Rates of Return / Profits on Deposits are so low and unattractive that very
limited options are available to the depositors. They do not match the current rate of
inflation. HBL differentiate and increase it‘s deposit by offering attractive rate of
return on deposits.
Internship Report                       24                              Habib Bank Limited

Threats

Threat can be defined as a change in external environment which if not met with
proper strategies will result in loss of revenues, market share, or income. In the
context of HBL‘s external environment, the following potential threats exist:


     Other private commercial bank with sound profitability is also a threat to HBL

        e.g. UBL, Alfalah, MCB etc

     The Rupee Travelers Cheque (RTC) sales volumes may be affected on

        account of regulatory restriction imposed by SBP on issuance of large value

        denominations.

     For the last of 2 to 3 years, Pakistan is facing economic and political instability

        which is a big threat.

     Foreign banks are flourishing in field of consumer financing.

     Afghan war and Iraq war has a deep effect on the economy of Pakistan, which

        has affected HBL.

     Increased regulations from State Bank of Pakistan may affect its business.
Internship Report                        25                        Habib Bank Limited


                           Operations of HBL
  A. BANKING DEPARTMENTS OF HABIB
                                         BANK

Various departments are working in all the branches of Habib bank to facilitate the
customers. Following are the banking departments functioning in HBL Jinnah Chowk
branch Sahiwal.




    1.       Account opening department.


    2.       Cash department.


    3.       Credit department.


    4.       Lockers department.


    5.       Bill clearing department.


    6.       Foreign exchange department.


    7.       I.T department.
Internship Report                      26                           Habib Bank Limited



         ACCOUNTS OPENING DEPARTMENT
Basic function of the accounts department is to open new account and facilitate the
customer for the account opening purpose. There are certain formalities which are to
be observed for opening of an account with a Bank. These formalities in brief are as
under:


FORMAL APPLICATION:


The customer is to fill "Account Opening Form. It is a formal request by a customer
to the bank to allow him to have and operate the account.


Documents require for opening an account:


     Copy of CNIC
     Service certificate or student card.
     Utility bill
     Provisional receipt
     KYC (Know Your Customer)


SPECIMEN SIGNATURE:


When the Banker is satisfied about the integrity of the customer, he agrees to open
the account. The Banker obtains the specimen signatures of the customer on the
signature book or on card.


Posting the account on the system:


After that officer has to post the new account on computer system for further
processing. During the process customer id and account number is generated. New
account remains active for one day after that it is blocked by the head office until
CNIC of the customer is verified from NADRA.
Internship Report                      27                             Habib Bank Limited

Cheque book issuing:


After the CNIC verification account opening officer has to issue a cheque book to
customer so that he can be able to make withdrawal from his account. Now a day in
Habib bank cheque book issuing process is centralized that take 06 days to
complete.


SECRECY:


The secrecy of depositor‘s account is the. Responsibility of every official engaged in
the Bank service.



                    Types of accounts:
Individual accounts:
Individual accounts are the most common personal investment accounts. Opened by
single person.


JOIN ACCOUNT:
A joint account occurs when two or more than two customers have one account. The
parties to a joint account are considered in law as they are one person.


Business accounts:
Business accounts can be opened by institutions, companies, partnerships, trusts
and non-profit organizations. Following documents are required.




BOOKS RELATING TO CUSTOMERS:

Pay-in-Slip
When money is to be deposited in the bank the pay in slip is to be filled. The object
of this book is to provide the customer with the bank‘s acknowledgement for receipt
of money to be credited his account.
Internship Report                     28                             Habib Bank Limited

Cheque Book
A chequebook contains a number of cheques, which is given to a customer upon
written request and after marking the payment for the chequebook. It enables a
customer to make withdrawal from his account or make payment to various parties
by issue of cheques.
GROUNDS FOR CLOSING THE CUSTOMER’S ACCOUNT:
The banker may close the account of the customer due to following reasons:

    i.   Notice by a Customer
    ii. Death of a Customer
    iii. Customer‘s Insanity
    iv. By order of court
I) NOTICE BY CUSTOMER
The banker closes the account of the customer on the application of the customer for
closing his account.


II) DEATH OF CUSTOMER
On death of his customer, the bank must stop payment on cheques drawn on him by
the deceased customer because the death revokes his authority to pay such cheque.
The heirs or the executors of the deceased customer are not authorized to operate
on the account; it can act only in accordance with provisions mentioned in the letter
of probate issued by a competent courts.




III) CUSTOMER’S INSANITY
If the customer becomes insane or mental it terminates the banker‘s authority to act
as his customer‘s agent. Since the banker customer relationship comes to end, in
such as situation, it is usually considered that the banker‘s authority to pay his
customer‘s cheques is revoked by notice of insanity. However, the bankers treat their
customers as it unless a fairly inclusive evidence of the customer‘s insanity is
available to them.

IV) ORDER OF COURT
A court of law may serve a banker with an order in garnish proceeding in execution
of a decree prohibiting him from honoring a customer‘s cheques.
Internship Report                     29                                  Habib Bank Limited



                      CASH DEPARTMENT
Cash Department is very sensitive and risky part of the bank. Very causations and
competent personnel are needed for the Job. HBL has really such a diligent staff
with appreciable competencies and will to do work. Main function of cash department
is to deal with cash payment and cash receipts.
Cash deposit procedure:
The customer fills the pay slip. The cashier receives the pay slip and cash. He
counts the cash and makes the detail of the notes at the back of the pay slip. Then
he compares the detail with amount written on slip and signs the pay Slip. Then he
credits the entries in the computer by serial No, account type, Account number and
amount. Puts the stamp of the ―cash Received‖ on the payment slip. The first portion
is for bank record while other one is given to the customer.
Cash payments procedure:
When a customer comes to withdraw a certain amount from his account, he brings a
Cheque along with him. In this case the following steps are taken.
The cashier receives the cheque and checks it whether it is post dated or predated.
Cheque can be cashed within six months. A predated cheque cannot be cashed. He
takes two signatures at the back of the cheque from the bearer. He gives the cheque
for posting at the computer. The computer checks out whether there is balance in the
account or not. Other instructions are also received e.g. blocked, frozen, Etc. the
posting is done in the computer and the cheque is stamped posted with the serial
number and date. He gives the cash to bearer and the respected account is debited.
Online fund transfer:
Another function of the cash department is of online transfer of funds.
Customer has give filled remittances form with cash or without cash (from account
transfer) to the cashier in cash department who will then credits the beneficiary
account.
Balancing cash at the end and transferring excess cash:
At the day end cash department is responsible for balancing the cash. Physical cash
should be balanced with the amount in the computer. Jinnah Chowk branch‘s limit for
cash is 40 million which it can keep within the branch over the night excess cash is
transferred to NBP.
Internship Report                     30                             Habib Bank Limited



                    CREDIT DEPARTMENT

    1. Introduction
    2. Securities.
    3. Types of credits
INTRODUCTION
The function of credit department is to lend money in the form of clean advances,
against promissory notes, as well as secured advances against tangible and
marketable securities. The bankers prefer such securities that do not run the risk of
general depreciation due to market fluctuations.
Common Securities for the banker‘s advances are as under:-

SECURITIES
1. Guarantees
When an application for advance cannot offer any tangible security, the banker may
rely on personal guarantees to protect himself against loss on advances or overdraft
to the applicant.

2. Mortgage
A mortgage is the transfer of an interest in specific immovable property for the
purpose of security the payment of money advanced or to be advanced by way of
loan, and existing or future debt, or the performance of an engagement which may
rise to a pecuniary liability. The transfer is called a mortgagor, the transferee a
mortgage.

3. Hypothecation
When property in the shape of goods is charged as security for a loan form the bank
the ownership and possession is left with the borrower, the goods are said to be
Hypothecated The essence of hypothecation is that neither the property in the goods
not the possession of them are possession is left with the borrower, the goods are
said to be Hypothecated the essence of hypothecation is that neither the property in
the goods not the possession of them are possessed by the lender, but the security
is granted by means of letter of hypothecation, which usually provides for a banker‘s
charge on the hypothecation goods.
Internship Report                        31                                 Habib Bank Limited

4. Pledge
In a pledge the ownership remains with pledge, but the pledge has the exclusive
possession of property until the advance is repaid in full. While in case of the default
the pledge has the power of sale after giving due notice.

5. Promissory Note
Sometimes promissory note is also accepted as a security, "A promissory note is an
instruments in writing containing an unconditional undertaking signed by the maker,
to pay on demand or at a fixed or determinable future time a certain sum of money
only, to or to the order of certain persons, or to the bearer or the instrument." A
promissory note is incomplete until has been delivered to payee or the bearer.
Moreover, the sum promised in a promissory note may be made by two or more
makers who may be liable there on jointly and severally.

TYPES OF ADVANCES
The advances which are given by Habib Bank Limited are as under:-

1. DEMAND FINANCE (Ordinary Loan)
Demand Finances are those advances which are allowed in lump sum for a fixed
period and are repayable lump sum or gradually in installments.

TYPES OF ADVANCES
    a. Demand Finance (Packing Credit)
         Scheme introduced by State Bank of Pakistan for exporter of carpet, surgical
         instruments, at zero percent rate of interest. While banks provides at
         concessional rate of interest.
    b. Loan ordinary (Demand Finance to Students)
         Qarz-e-Hasana Scheme Loans are allowed to the students, teachers without
         any interest or mark up with the recommendations of the MPA or MNA.
    c. Demand Finance (Staff)
         Loans are offered to the staff of the following four categories.
    i.   House Building Loans against mortgage of property.
    ii. Loan for purchasing vehicles.
    iii. Loan equivalent to month‘s salary.


2. RUNNING FINANCE (Overdraft)
Running finance (old name overdrafts) are advances, which are generally, given to
meet temporary requirements of the customers. A good customer use the banks
running finance limit as a mean of protecting his credit in the market and as a line of
security defense to meet his commitments.
Internship Report                           32                           Habib Bank Limited

TYPES OF RUNNING FINANCE
    I. Unsecured

           Under such type of overdraft the bank pay upon the personal security of the
           customer‘s mentioned on the customer‘s account.

    II. Secured

           Under this type of overdraft the bank allows his customer to withdraw more
           than his deposits after giving security against the amount overdrawn.

           The securities against which they given are:

    i.     Share certificate, Saving certificate

    ii. Deposits

    iii. Mortgage of property

    iv. Guarantee of person

SMALL LOANS
           Loan is allowed to contractors clearing and forwarding agents.
3. FINANCE AGAINST THE FOREIGN BILLS (FAFB)


      The advance facility is allowed both to local foreign bills and is classified as
under:-
    i.     FAFB (Local) advance against Railway receipts and truck receipt, a company
           with bills of exchange and invoices, are given under this head.
    ii. FAFB (Foreign) advances against foreign bill, covering bills of exchange bills
        of lading airway bills of exchange bills of lading airways bills etc.
4. AGRICULTURE LOANS
Loans to the farmers with holding up to 25 acres for meeting their short terms,
medium and long terms Agricultural production requirements, such as:

    i.     Agricultural inputs
    ii.    Tube wells
    iii.   Live Stock Framing
    iv.    Land improvement
Internship Report                        33                             Habib Bank Limited

5. INDUSTRIAL LOANS
Besides the short-term loans which play a part in working capital medium and long-
term loans are also given to industrial sector for purchase of machinery and other
capital nature goods.


              BILLS CLEARING DEPARTMENT
INTRODUCTION
Every bank acts in two way i.e.
    i.   Paying Bank
    ii. Collecting Bank
         Here in theory no legal obligation on a banker to collect cheques, drawn up to
other banks for a customer. It is, however, an important function of crossed cheques.
A large part of this work is carried out through the N.I.F.T.

NIFT- National Institutional Facilitation Technologies (Pvt.) Limited:
         NIFT is a joint venture between a consortium of six major banks and private
sector. It is responsible for the establishment and management of automated
clearinghouse facilities in Pakistan. NIFT is proactively involved in the modernization
of payment systems in Pakistan.

FUNCTION OF CLEARING DEPARTMENT

         The following are the main functions of clearing department.

    4. To accept transfer deliveries and clearing cheques from the customer of the
         branch and to arrange for their collection.

    5. To arrange the payment of cheque drawn on the branch and given for
         collection to any other branch of Habib Bank of Pakistan or any other
         members, or sub-members of the local clearing area..

    6. To collect amounts of cheques drawn on members, sub-members of the local
         clearing house, sent for collection by those Habib Bank Limited, branches
         which are not represented a the local clearing area.

PROCEDURE OF DEPOSITING CHEQUES IN CLEARING DEPARTMENT
         Whenever a customer wants to deposit cheque, etc, he fills a pay in slip and
hands it over the counter along with the instruments he wants to deposit with bank.
Internship Report                       34                              Habib Bank Limited

As far as possible, the customer desire that on of the staff member fill in a slip for
him, he should be obliged promptly.

         One portion of the perforated pay in slip is handed over to the depositor and
the portion becomes the regular portion of a credit voucher

TYPES OF CHEQUES COLLECTED BY CLEARING DEPARTMENT
    a. Transfer Cheques
         Transfer cheques are those cheques, which are collected and paid by the
same branch of bank.

    b. Transfer Delivery Cheques
         Transfer Deliver cheques are those cheques, which are collected and paid by
two different branches of a bank, situated in the same city.

    c. Clearing Cheques
         Clearing cheques are those cheques in which the payee (Person who deposit
cheques for collection) and the drawer of a cheque maintain the account with
different banks.

         These clearing instruments are handed over to NIFT after posting necessary
stamps and checking them for any errors. Then further process of clearing is carried
on the behalf of NIFT.


                          FOREX DEPARTMENT
         International trade is growing and with the development of international trade
it has become more imperative. For countries to devote more and more attention to
the complicated mechanism of Foreign Exchange. It is more important in case of
developing countries. It is need of time, that a country should conserve its foreign
exchange resources.

MEANING OF FOREIGN EXCHANGE
         The foreign exchange term refers to the principles that determine the rate of
exchange. It covers following three senses:

    i.   The mechanism or system by which international obligations or indebtedness
         are fulfilled.

    ii. The currency of one country is exchanged for that of another.

    iii. The principles on which the people of world settle their debts to one another.
Internship Report                       35                               Habib Bank Limited

Letter of Credit:
It is a negotiable instrument through which the bank of the exporter deals with bank
of the importer through the guarantee of a bank. There are different parties involved
in the L/C, e-g importer, exporter, importer bank, exporter bank, and advisory bank.
LC involves banking channels in foreign trade to mitigate risk.
The procedure of opening of an L/C is as follow
     The first thing is the Performa invoice. The Performa invoice is a document
        (say a clip), which is, sends by the exporter to the importer and includes the
        information like. Descriptions of goods, what type of goods you are needed
        and what are the quality, rate and originating country etc.
     Before to open a L/C the bank also consider that the goods which the importer
        is importing is allowed by govt. of Pakistan or not. Because the importer is not
        allowed to import that goods which are prohibited by the Govt. of Pakistan.
     The importer is asked to show the membership certificate of any chamber of
        commerce and industry affiliated with the Pakistan federation of chamber of
        commerce and industry.
     Fill the import form of the govt. of Pakistan, which is the proof of this that there
        is no objection on the goods, which the customer is importing.
     What type of goods you are needed and what are the quality, rate and
        originating country etc.
Necessary Documents required for L/C:
     NTN
     Tax Authority registration certificate
     Chamber of Association‘s trade certificate
     Type of Business
     NIC
     Margin
     Registration No.
     Application for L/C


On providing these documents the importer will be given the L/C form named as
IB-8.
Contents of IB 8
    1. Request for LC
    2. Rate
Internship Report                         36                         Habib Bank Limited

    3. Importer and Exporter‘s particulars
    4. Amount
    5. Terms
    6. Partial Shipment (Allowed, not allowed)
    7. Transshipment (Allowed, Not Allowed)
    8. Port of Loading and destination
    9. Payment Mode
           I. Sight
               On seeing the documents the importer has to pay.
          II. At Sight and Negotiation:
It means that exporter will submit his documents with the bank and immediately asks
for payment.
          III. Acceptance:
On showing the documents to the importer, the bank asks him to accept that he will
pay within 30, 60, 90, 120, 180 etc days.


    10. Documents Required:
     Certificate of Origin.
     Commercial Invoice
     Bill of Lading / Air way bill.


Charges:


For L/C following charges are applicable;
     Commission
     Postage
     L/C Advising commission
     L/C amendment Commission
     L/C confirmation Commission
     L/C Negotiation Commission


Payment Mode:
In foreign trade payment modes are
    1) Advance Payment: Importer makes payment before delivery of goods.
    2) Open A/C: Importer makes payment after receiving the goods.
Internship Report                    37                              Habib Bank Limited

Issuing foreign exchange accounts cheques books
Another function of foreign exchange department in Jinnah Chowk branch is to issue
foreign exchange accounts cheques books to customers on request. This process is
not yet centralized. Cheque book is issued within 15 minute of receiving request from
customers after making necessary register entries and posting stamps on it.




       Products and Services of Habib Bank
                     Limited




                       RETAIL BANKING


                                      For




                      Individual Customers
Internship Report                      38                             Habib Bank Limited



                     DEPOSIT ACCOUNTS
Current Accounts
Make unlimited transactions while maintaining a low minimum balance every month.
HBL is currently offering three types of accounts in current account category. Their
detail and name is as under.
    1. HBL BusinessValueAccount
    2. Current Account
    3. Basic Banking Account (BBA)



           HBL BusinessValueAccount
     Unique transactional account for Businessmen
     Up to 5.35%* profit per annum
     Profit calculated daily, paid every quarter
     Minimum balance of Rs. 20,000
     HBL DebitCard and Inter Branch Transaction System (IBTS) facilities
     Up to 10 Bankers Cheques free (at minimum balance of Rs. 500,000)
     Funds transfer to any bank through HBL PhoneBanking

         Current Account
     Minimum balance of Rs. 5,000
     Unlimited transactions
     Non-profit bearing
     HBL DebitCard and Inter Branch Transaction System (IBTS) facilities
     Funds transfer to any bank through HBL PhoneBanking

         Basic Banking Account (BBA)
     Can be opened with only Rs. 1,000
     No minimum balance requirement
     Upto 2 withdrawal and 2 deposit transactions free every month
     Unlimited withdrawals through HBL DebitCard
     Non-profit bearing
Internship Report                      39                               Habib Bank Limited

Savings accounts
Avail the flexibility of making transactions while earning profit on daily/monthly basis.
HBL is currently offering five types of accounts in savings account category. Their
detail and name is as under.

    1. HBL Value Account
    2. PLS-Savings Account
    3. Remittance Munafa Plus Savings Account
    4. Daily Munafa Account
    5. Daily Progressive Account



           HBL Value Account
     7.19%* profit per annum
     Profit calculated monthly, paid every quarter
     Deposit ranges from Rs. 10,000 to Rs. 1,000,000
     Two withdrawals free every month



           PLS-Savings Account
     5.06% profit per annum*
     Profit paid bi-annually
     HBL DebitCard and Inter Branch Transaction System (IBTS) facilities
     Funds transfer to any bank through HBL PhoneBanking
     Minimum balance of Rs. 20,000
     Unlimited transactions



           Remittance Munafa Plus Savings Account
     Special account for receiving foreign remittances
     5.12%* profit per annum
     Profit paid every month
     Minimum balance of Rs. 20,000
Internship Report                       40                         Habib Bank Limited

           Daily Munafa Account
     Profit calculated daily, paid every month
     Up to 8.84% profit per annum*
     HBL DebitCard and Inter Branch Transaction System (IBTS) facilities
     Funds transfer to any bank through HBL PhoneBanking
     Minimum balance of Rs. 20,000



           Daily Progressive Account
     Unique transactional account for Institutions
     Profit calculated daily, paid every month
     Up to 11.57% profit per annum*
     Inter Branch Transaction System (IBTS) facility
     Funds transfer to any bank through HBL PhoneBanking
     Minimum balance of Rs. 20,000

Terms Accounts
Invest your savings in HBL term deposits for a fixed duration and earn profit while
keeping your savings secure. HBL is currently offering one type of account in terms
account category. Their detail and name is as under.
    1. HBL Advantage Account

           HBL Advantage Account
     Multiple options for tenure and profit payout
     Loan facility up to 90% of investment
     Minimum investment of Rs. 25,000
     Withdrawal at end of fixed term
                      Tenure                  Profit at maturity
                      3 MONTHS                7.50%*
                      6MONTHS                 8.00%*
                      1 YEARS                 11.00%*
                      3 YEARS                 13.00&*
                      5 YEARS                 14.00%*
                      10 YEARS                17.00%*
Internship Report                      41                               Habib Bank Limited

Foreign Currency Accounts
HBL offers Foreign Currency Accounts in multiple currencies as savings and term
accounts. Their detail is as under.

           FC-SB
     Savings Account offered in 3 currencies, USD (US dollar), EUR (Euros) and
        GBP (UK pound)
     Tiered product, with rates depending on choice of currency
     To earn profit, minimum balance in USD, EUR and GBP is 1,000
     Interest is payable on a quarterly basis



           HYFFD (High Yield Foreign Currency Fixed Deposit)
     Available in 1 month, 2 month, 3 month, 6 month and 12 Month in USD, EUR
        and GBP
     Tiered product, with rates depending on choice of currency and term
     Profit paid on maturity only. No interim interest is payable.




    *NOTE: All the rate and terms and condition are revised by HBL after every six
    months periods. These rates are only applicable for period 01.07.09 to 31.12.09.
    Further detail of terms and conditions about profit and rates is given in annex ―B‖.
Internship Report                       42                              Habib Bank Limited



                           HBL CAR LOAN
    HBL Car Loan helps customers to get their preferred car through a simple and
    hassle-free process, backed by superior service and support. Now customer can
    drive a car he always wanted.




Features
     Choice of used, new local/imported and reconditioned imported car.
     Repayment options ranging Upto 7 years.
     Upto 85% of financing for the car of your choice.
     Insurance at all times for complete peace of mind and security.
     Round the clock support available through HBL PhoneBanking; you can place
        your requests and queries, track the status of your repayment/loan account
        and avail other value-added services through HBL PhoneBanking.

Eligibility Criteria




How to apply
     Just visit any HBL branch or Habib Bank Auto Finance Centre for details and
        application.
     Submit complete set of application without any charges to the branch or the
        Auto Center.
     Sign the necessary documents on approval of the application
     Payment is released within 24 hours of the submission of post-dated cheques
        and initial payment after approval of the request.
Internship Report                       43                             Habib Bank Limited

Documentation
Salaried Individuals

     Complete Application Form
     Salary Certificate / Most recent Salary Slip
     Bank Statement for past one year
     Two Copies of NIC
     Employment Certificate with date of joining
     Two passport size photographs
     Copy of the last paid utility bill (residence)


Self-Employed Business persons/Professionals


     Complete Application Form
     Two Copies of NIC
     Two passport size photographs
     Letter of proprietorship / Registered Partnership Deed
     Certified latest Form A and Form 29, where applicable, along with articles and
        Memorandum of Association
     Copy of last paid utility bill (residence)
     Bank Statement for the last 1 year



                         HBL CAR TO CAR
HBL CarToCar is a revolutionary car financing offer. It makes the car of customer
choice affordable and practical with a buy back guarantee. HBL CarToCar offers
matchless features and unique options at the end of the lease. Now customer can
drive a new car at the end of every two years.

Features
Pay only for what you use

When customer lease a car under HBL CarToCar, he only pay for that part of the
car‘s value that he use during the lease term. The car‘s residual value (forecasted for
the end of the specific lease term) is agreed with him at the start of the lease term.
This amount is deducted from the car price thus lowering the finance amount. This
Internship Report                     44                               Habib Bank Limited

finance amount is based only on a part of the car‘s value and not the full value of the
car. Therefore, HBL CarToCar offers very low installments as compared to any
conventional financing.
Upgrade of lifestyle


HBL gives customer the guarantee that if he wishes to return the car to HBL at the
end of the lease term, he will not have to pay off the car‘s residual value. Instead,
HBL will directly settle this outstanding liability for customer under the buy back
guarantee. Hence, he can upgrade to a new car as frequently as two years without
any complication and hassle.
Affordability


With HBL CarToCar, customer only has to pay the difference between the car price
and the pre-agreed residual value to the bank. As a result, the monthly installment
may even be 40% to 50% less than that of conventional financing.
Flexibility


HBL CarToCar offers customers several choices at the end of the lease term:
• Upgrade - Simply return the car to HBL and drive a new one home
• Walk away - Return the car to HBL and end the lease
• Buy - Keep the same car. Just make a one-time settlement of the car‘s residual
value to HBL or pay the same in easy installments over a specified extended period
of time
• Sell - Enjoy the gain from selling off the car at a higher price in the market than
what you ay HBL as the residual value

Eligibility Criteria
Internship Report                       45                          Habib Bank Limited

Documentation

Salaried Individuals

     Complete Application Form
     Salary Certificate / Most recent Salary Slip
     Bank Statement for past one year
     Two Copies of NIC
     Employment Certificate with date of joining
     Two passport size photographs
     Copy of the last paid utility bill (residence)


Self-Employed Business persons/Professionals


     Complete Application Form
     Two Copies of NIC
     Two passport size photographs
     Letter of proprietorship / Registered Partnership Deed
     Certified latest Form A and Form 29, where applicable, along with articles and
        Memorandum of Association
     Copy of last paid utility bill (residence)
     Bank Statement for the last 1 year
Internship Report                    46                            Habib Bank Limited



                      HBL CREDIT CARD
By the help of HBL credit card customer enters into the world of convenience and
flexibility. Accepted at over 29 million merchants worldwide, HBL Credit Card makes
shopping fun and paying simple. So that a customer can make the most of his
shopping experience.




Benefits
Buy now, pay later
Buy what customer want, when he want and pay for it later. A credit card statement
will be sent to him every month with details of all his purchases. He will have 21
credit free days to make the payment from the statement date. Customer should pay
at least 3 days in advance if he makes your payment by cheques to allow enough
time for clearance.
Internship Report                    47                             Habib Bank Limited

Pay as much as customer wants
A customer can pay the entire or as little as 5% of the outstanding balance in his
statement. The unpaid amount will be transferred to his next month‘s statement
along with applicable services charges.
Cash advance
Customer can go to any specified HBL branch and withdraw cash at the counter. He
can also go to any 1Link ATM in Pakistan and more than 1,000,000 ATMs worldwide
displaying the Visa/Plus logo. Withdraw cash up to the available cash advance limit
on his HBL Credit Card for a charge applicable from the withdrawal date.
Balance transfer facility
Card holder can pay off balances he owes to other banks through his HBL Credit
Card at a lower service charge.
Security
Card holder cannot lose cash if he doesn‘t carry it! In the event that his card gets
stolen/lost, he should call HBL PhoneBanking to have his card blocked immediately.



                            HBL DEBIT CARD
HBL Visa Debit Card allows a card holder to pay for his purchases directly from his
bank account. He doesn‘t have to carry cash and his monthly statement provides
him with a complete record of all his transactions so he can manage his expenses
with ease.
Internship Report                      48                           Habib Bank Limited

Features

No Interest
HBL Visa Debit Card is the perfect way of paying for purchases as it gives access to
the exact amount of money a customer needed, as and when he needs it. There is
no interest or credit on payments because he spends from the money available in his
personal HBL Account.


Ease & Security
HBL Visa Debit Card offers ease and convenience because card holder doesn‘t have
to visit an ATM to withdraw cash. Paying with the HBL Debit card is safe because it
eliminates the need to carry cash. A single swipe automatically debits the exact
purchase amount from his personal HBL account.


Spending Limits
The daily spending limit at shops and outlets on HBL Visa Debit Card is Rs. 100,000.
(These figures are subject to the balance available in account).


Free Account Statement
HBL cardholders receive a free monthly account statement for their Debit Card and
ATM transactions to help them keep track of their spending.
International Recognition & Acceptability


HBL Visa Debit Card is accepted at over 20 million Visa merchants worldwide,
including over 10,000 merchants in Pakistan. As an ATM card it is accepted at more
than 1,000 1-Link & M-Net ATMs in Pakistan and 864,000 Visa ATMs worldwide. No
matter where card holder is, with the HBL Visa Debit Card, HBL is always with him.


No Liability
In case of a lost or stolen card, card holders are protected against fraudulent
transactions made on their card after they report the incident.
Internship Report                     49                               Habib Bank Limited



                    HBL PERSONAL                     LOANS
With the rising cost of living, it is becoming increasingly difficult to make expensive
purchases or meet unexpected expenses. HBL is helping customer finance them
with Habib Bank personal Loans (old name flexi loan). Customer may avail a
personal loan of up to SIX TIMES of his net take-home salary subject to a maximum
of Rs.300,000/- provided he work for an organization approved by HBL.



Features

     Flexible tenure: 12, 24, 36,48 or 60 months
     No processing fee
     Repayment through easy and affordable monthly installments from salary.
     Credit Life & Disability Insurance
     Repayment through easy and affordable monthly installments
     You determine the need, we help you finance
     Option of add up replacement for existing customer.
     Minimum salary Rs. 12000
     No salary limit for existing customers.
     23% or 21% rate for existing users instead of 25%



                    HBL PHONE BANKING
Now the bank is just call away. Customer can now call HBL PhoneBanking and
save a trip to the branch. His query will be resolved in a single telephone call from
anywhere and at anytime.



T-PIN Generation
Customer‘s TPIN (Telephone Personal Identification Number) is generated the first
time he calls and he can use it as your password for verification purposes, self-
service banking through IVR and additional services through HBL‘s PhoneBanking
Officers. Customer can change his TPIN anytime he like.
Internship Report                         50                         Habib Bank Limited

HBL PhoneBanking services for Deposit Account customers
Customers can use the Interactive Voice Response (IVR) system or talk to HBL
PhoneBanking Officers to:
     Get his account balance
     Get information about the last 5-10 transactions carried out on his account
     Request bank statement, either through fax or email (as supplied in his
        subscription form)
     Get details of transactions from the last 6 months on each of the accounts
        listed on his subscription form
     Change and/or modify his contact details
     Transfer funds between his own accounts (as listed in the subscription form)
        or from his account to a third party account (as listed in the Third Party
        Authorization Form)
     Transfer funds from his own account to an account in another bank under the
        1-Link network (Inter Bank Funds Transfer)
     Generate his own choice of ATM Pin without filling a request at your branch
     Inquire about HBL‘s product offerings
     Lodge a complaint in case of any inconvenience
     Inquire about the daily accounts related profit rates and currency exchange
        rates
     Request a number of physical instruments and/or branch banking related
        services that he might require, including:
     Pay Order
     Demand Draft
     Statement
     Balance Certificate
     Cheque Book

HBL PhoneBanking services for HBL CarToCar and Car Loan customers
HBL CarToCar and HBL CarLoan customers can enjoy the following services
through HBL PhoneBanking:
       Balance Inquiry
       Last 5-10 Transactions
       Statement Generation (Email and Fax)
       Account Maintenance
        Assistance in case of Car Theft/Damage
Internship Report                     51                                 Habib Bank Limited



                    HBL BANCASSURANCE
HBL and New Jubilee Life Insurance Company Limited (NJLI) introduce Amaan
(Retirement Plan) and Tabeer (Child Education & Marriage). These products have
been designed keeping HBL‘s customer base as the focus and will provide life
insurance along with an investment option.

Amaan (Retirement plan)
Amaan is a pension plan that provides an opportunity for growth through investment
in a balanced portfolio with post-retirement income benefits. The plan covers life
insurance and gives attractive returns on investment to its customers.




Tabeer (Child Education and marriage plan)
Tabeer is a plan that provides parents with a means to accumulate a fund over a
period of time which can then be used to pay for a child‘s education or marriage.
Plans are available for both under and over 45 years of age.
Internship Report                      52                                  Habib Bank Limited



                                 LOCKERS
Lockers are available in many of the HBL branches in different sizes like small,
medium and large; some branches also have extra large and cubical lockers. Except
rural areas because of security reasons.

Eligibility for using lockers

Only the account holders can avail the facility of lockers. The annual rent will be
directly debited from their respected accounts at the start of the year.

Charges


                                       Key deposit                  Annual rent
              Size
                                      (refundable)                           Rs.

             SMALL                           2500                            2750


            MEDIUM                           3000                            3850


             LARGE                           4000                            6050




Key deposit is refundable at the time handing over the locker to bank. For the staff of
HBL key deposit is not required and also the annual rent is very low for them.
Internship Report                        53                             Habib Bank Limited



                    HBL CORPORATE BANKING
HBL Corporate Banking Group comprises a seasoned team of Relationship
Managers (RMs) to meet the demanding service standards of large corporations. A
long history of financing and nurturing relationships in Pakistan has given HBL a
unique insight, enabling it to provide timely and effective financial solutions for their
customers to meet the growing challenges of a global economy. For a corporate
customer, with a turnover of at least PKR 300 million, HBL has a range of solutions
designed to help him with his banking needs. Their RMs have the expertise
customer need to create tailored financial solutions catering to the specific
requirements of his business. Whether establishing a new venture or expanding an
existing business, HBL‘s team understands customer‘s banking needs and works
closely with him to realize his goals.

Services
HBL provides the following services to meet customers funding requirements:
     Working Capital Finance, including Overdraft, FE Loans, etc.
     Pre and Post Shipment Export Financing (PKR and USD based)
     Import Financing (PKR and USD based)
     LMM Funding
     Receivable Discounting
     Islamic Banking facilities
     Cash Management Services
     Trade Services including Letter of Credit, Letter of Guarantee and Standby
        Letter of Credit, etc.

                       HBL CORPORATE CENTERS

1.Corporate Centre, Karachi                   6.Export Processing Zone, Karachi
2.PIA Branch, Karachi                         7.Steel Mills, Karachi
3.Stock Exchange, Karachi                     8.Stock Exchange, Lahore
4.Corporate Centre, Islamabad                 9.Morga Branch, Rawalpindi
5.Corporate Centre, Faisalabad                10.Corporate Centre, Multan
                           11. Karachi Port Trust, Karachi
Internship Report                         54                          Habib Bank Limited



              HBL COMMERCIAL BANKING
HBL‘s Commercial Banking Group targets medium sized companies with a turnover
of at least PKR 50 million. Its business units are located in Karachi, Lahore,
Faisalabad, Sialkot, Gujranwala and Peshawar. Each unit is dedicated to service
business clusters located within these cities. They have the ability and the resources
to meet the needs of customer‘s business with their pro-active, responsive and
experienced Relationship Managers who are committed to understanding customer‘s
business.

Services
HBL offers financing for the following:
     Working Capital
     Procurement of Inventory
     Receivables
     Procurement of Machinery
     Expansion of production facilities
     Import of raw materials
     Exports
     Guarantees


                    HBL COMMERCIAL BANKING CENTERS
1.Al-Noor, Karachi                             9.Foreign Exchange, Karachi

2.Korangi Industrial Area, Karachi             10.Napier Road, Karachi

3.Saddar, Karachi                              11.S.I.T.E. Karachi

4.Tariq Road, Karachi                          12.Panorama Centre, Lahore

5.Badami Bagh, Lahore                          13Peco Road, Lahore

6.Kashmir Road, Sialkot                        14.Paris Road, Sialkot

7.Small Ind. Estate, Sialkot.                  15.Circular Road, Faisalabad

8.Peoples Colony, Faisalabad                   16.Trust Plaza, Gujranwala


                         17.Super Market, Peshawar
Internship Report                          55                                   Habib Bank Limited



                         HBL ZARAI BANKING
HBL ZaraiBanking facilities are spread across the country and provide financing
through more than 800 of their branches. HBL‘s presence in all agriculture belts of
the country ensures easy access to farmers in rural areas. HBL ZaraiBanking
provides loans to small-scale land owning farmers as well as large institutionalized
and alliance based finance, enhancing agricultural harvest and, in turn, economic
output of the country.

Products
HBL ZaraiBanking enables farmers to invest in premier quality seeds, fertilizers,
pesticides, agricultural implements and non-farm setups through its various product
programs.




Crop Inputs
Crop specific finance for purchase of Agriculture inputs such as seed, fertilizer,
pesticide and other related inputs.
Farm Implements
Finance available for purchase of farm implements & machinery like combined
harvester, sprayers, ploughs, tube wells and other crop-related tools/implements.
Tractors/Agricultural Vehicles
Finance available to individual farmers, self-employed tractor operators, providing
the option to select vehicles from a range of different manufacturers.
Livestock
Finance available for feed, medicines, raw material, raising charges and other
related activities.
Poultry
Finance      available   for   all   poultry related   activities   including     poultry farm
construction/equipment, hatchery plant & machinery, poultry feed, poultry medicines,
composite feed production, poultry processing and other related activities.
Internship Report                      56                              Habib Bank Limited

Fish Farming
Finance available for inland fish farms as well as deep-sea fishing. This includes
procurement of boat, fish locating equipment, nets & ropes, ice maker, fish farm
water solution, hatchery construction/equipment, purchase of medicines / feed and
other related activities.
Group Lending
Joint finance facility for a group of farmers with small land holdings for working
capital requirement.


NOTE: These finances may be availed under Demand Finance or Running Finance
categories. Demand Finance is usually available for short term financing needs while
Running Finance is available on the basis of revolving limit.



                            ISLAMIC BANKING
Islamic Banking is a growing market segment that offers attractive opportunities to
potential and existing customers. At HBL, Islamic Banking offers Shariah compliant
products and services to meet the short and long term requirements of business,
trade and industry.

Shariah Compliance
HBL‘s Islamic Banking products are in strict compliance with the tenets of Shariah
and bear Shariah Compliance Certification from an independent Shariah Advisor.
Their Shariah Advisor has in depth experience in Shariah rulings (Fatawa) and
teachings at different forums with qualifications of Dars-e-Nizami, M.A and L.L.B.
HBL also have a Shariah Scholar, as member of their Shariah Supervisory
Committee to ensure a sound Shariah Compliance mechanism, giving prompt
responses to customer‘s needs and access to Shariah knowledge.

Products and Services
Corporate and Commercial customers can choose from Shariah compliant banking
solutions to meet their business needs.
Ijarah (Leasing)
Medium to long term facility for vehicles, plant and machinery leased out to the client
on rental basis.
Internship Report                        57                                Habib Bank Limited



Diminishing Musharaka
Medium to long term facility for vehicles, plant and machinery on joint ownership
basis.
Murabaha
Local and Import facilities for purchase of raw materials, semi finished and finished
goods, stores or spares.
Trade Services
Letter of Credit Facility, Collection of Foreign Bills, Collection of Local Bills, Letter of
Guarantees.


Customers are welcome to visit their Islamic Banking branch for the following
services:
         Current Account (PKR, USD, EURO, POUND STERLING)
         Basic Banking Account
         ATM/Debit Card Facility
         Foreign / Inland Remittances
         Utility Bills Collection
         E-banking / Internet Banking Services
         24/7 Phone Banking Services
         Personalized customer friendly services
         Saving Deposits will be introduced soon



           Branch
Address
Finlay House
Ground Floor
I.I Chundrigar Road
Karachi

Contact details:
021-32429304, 32429431&32

Fax
021-32429307

E-mail
hbl.5000@hbl.com
Internship Report                     58                               Habib Bank Limited



                    LEARNING AS AN INTERN
As every body knows that "Knowledge without practice is sterile "In order to give vent
to this idea an Internship program of six to eight weeks has been arranged in
different esteemed organizations during M.B.A. In this regard on 15th of June 2009, I
was asked by Mr. Mirza Saeed (HR officer in HBL regional office Sahiwal) to go to
Habib Bank Jinnah Chowk branch to start an internship of seven weeks there.
During this period I got a chance to work and learn in following departments of the
bank:
     Foreign exchange department
     Bills clearing department
     Credit department
     I.T department
     Cash department
     Accounts, ATM and Lockers department

Duties and learning in Foreign exchange department
First of all I started my training in foreign exchange department of the bank under the
supervision of Mr. Asif Iqbal (Manager Forex department). I came to know about the
different functions of foreign exchange department and how to perform these
functions during my work in the department.
My duties in the department were related to the followings:
     Foreign currency exchange rates.
     Letter of credit (L.C) both opening and negotiation.
     Letter of guarantee
     Issuing check books for foreign currency accounts
     Remittances applications.
Learning
Opening of letter of credit. Bank starts working on opening process after an
application is received from the buyer (importer). I came to know about the process
of opening of L.C, documents that bank demands from applicant, form used for that
purpose, getting A.T (Availance Ticket) from regional head office and scanning and
mailing the documents to head office Karachi for the purpose of getting approval,
and payment on maturity date. Opening and negotiation both are centralized process
in Habib bank therefore approval from head office is required.
Internship Report                      59                              Habib Bank Limited

Negotiation of L.C. Bank starts negotiation of letter of credit (which would be
already opened by importer‘s bank) after the application from seller (exporter).
Before sending the documents for payment to importer bank negotiator bank must
ensure that the entire document mentioned in Claus 46A of the L.C are attached and
complete.
During the week I also worked on Remittances application. An applicant who
wants to transfer funds abroad must have a foreign currency account in the bank.
Because State Bank of Pakistan only allow account to account transfer of funds
abroad through banks. And I came to know about the process and information
required to fill the form. I also came know about the process of issuing foreign
currency account‘s cheque book to customers. During the week I learn many things
about the mechanism of foreign trade.

Duties and learning in bill clearing department
The second department in which I got a chance to work was bill clearing department.
During the work in clearing department I came to know about the different functions
of clearing department and how to perform them. I came to know the process of
receiving cheques by Dak, how to check cheques for any error like, the cheques
should be of the bank which is the clearing member of area which comes under
Jinnah Chowk branch for example if the cheque is of bank Al-Fallah Lahore then it
should go to zonal branch of Lahore region instead of zonal branch of Sahiwal. Then
checking whether the amount of cheque and OBC (outward bank collections)
voucher attached to it is same or not. If no error is found then making register entries
by noting down their OBC number branch code and amount of the voucher. Then:
      Calculating the total amount of vouchers by summing individual amounts.
      Calculating the total amount of cheques by summing individual amounts.
      Preparing an add list to be attached with clearing instruments (cheques).
      Writing vouchers for demand drafts.
And I also came to know about the different types of stamps and their use in
particular situation like DAK RECEIVED stamp and CLEARING stamp. After
attaching add list, clearing instruments are handed over to NIFT for further
processing. These clearing instruments are delivered to their respective banks for
clearance by NIFT. I also learnt in case of Banker‘s Cheques how to verify signature
from the book in which all the signatures of authorized persons of HBL are given with
their specific code. And I also worked on OBC (Outward bank collection) forwarding
Internship Report                       60                               Habib Bank Limited

schedule. I came to know the process of sending cheques or other clearing
instruments for clearance to zonal branch of another region.
     Filling vouchers
     Assigning OBC numbers
     Making entries in OBC register

Duties and learning in credit department
After bill clearing department I started my work and learning in credit department of
the branch. Mr. Haroon Butt (Credit Manager) told me about the terms and
conditions of the commercial loan, types of commercial loan like industrial loan and
loan for merchants, how to make proposal for commercial loan, document required
to make a proposal, markup of commercial loan (18.5 % annually). He also gave me
chance to view some old proposals and the proposal on which he was working.
Mr. Asif (assistant for Mr. Haroon butt in credit department) who is dealing consumer
financing. He told me about different types of consumer financing.
     Flexi loan (personal loan)
     Auto finance
     Lifestyle loan
In Sahiwal region at this point of time from HBL only personal loan is active while
auto finance is about to start again in near future and lifestyle loan is inactive. I came
to know about the terms and conditions of personal loan. Only the government
servant who has his salary account at least six month old in HBL can apply. Different
markup for different categories like 21%, 23% and 25%.
     21% for existing users‘ upto 3 year duration
     23% for existing users for 4 or 5 years duration.
     25% for new customers
I also did work on documentation process for personal loan. I came to know about
the different types of document required to complete a case for sending it to regional
head office for approval. Document like branch check list, application form, Copy of
CNIC of customer and two references, CNIC verification report from NADRA,
customer‘s account statement, finance agreement form etc.
I also came to know about different types of securities which a bank demands from
customer while issuing loan. e.g. Guarantees, Mortgage, Hypothecation and Pledge.
Internship Report                      61                            Habib Bank Limited

Duties and learning in Accounts, ATM and Lockers department
Then I learned about ATM (automatic teller machine). I came to know about the
functions and working process of ATM machine. Loading cash and balancing at the
time of loading again. Next my main concern was to know about all the aspects of
ATM card. I came know about the types, process of issuing ATM card to customers,
filling forms, how to activate ATM card, charges of issuing and using ATM card.
Then I spent my time in lockers department. I took all the information about the
terms and conditions of allotting and operating a locker, types of locker like small,
medium and large, charges of using lockers, key deposit (refundable), filling
application forms, insurance amount for specific size of locker and etc. I also came
to know about the process of operating locker by the customer, how to open the
locker with the help of two keys.
     1 key in the hand of bank officer (anticlockwise)
     2nd key in the hand of customer (clockwise)
Customer is allowed to operate the locker in full privacy. Only the customer himself
or other person authorized by him can operate the locker. After that bank officer has
to take the signature of the customers on attendance register maintained for this
purpose.
Then my duty was in Accounts department. I came to know the procedure for filling
the form to open an account, different types of stamps required and about signature
of the staff. Documents required to be attached with the form.
     Copy of CNIC
     Utility bill
     Provisional receipt
     KYC (Know Your Customer)
And how to post an account on system after filling the form. Then I came to know
about Saving accounts and different types of accounts in saving category and terms
and conditions of each type.
             1. HBL Value Account
             2. PLS-Savings Account
             3. Remittance Munafa Plus Savings Account
             4. Daily Munafa Account
             5. Daily Progressive Account
Internship Report                          62                          Habib Bank Limited

Then current accounts
             6. HBL Business Value Account
             7. Current Account
             8. Basic Banking Account (BBA)
Term accounts
             9. HBL Advantage Account
             10. Investment plus Deposit
FC accounts
             11. FC-SB
Savings Account offered in 3 currencies, USD (US dollar), EUR (Euros) and GBP
(UK pound)
         12. HYFFD (High Yield Foreign Currency Fixed Deposit)
Available in 1 month, 2 month, 3 month, 6 month and 12 Month in USD, EUR and
GBP
Assignments
(1)During my work in accounts department Mr. Khalid Dogar (manager operation)
assigned me the duty of checking the files of previously opened accounts for any
type of discrepancies like utility bill or service certificate of the account holder is
attached or not and checking stamps and signature of the staff etc. It was because
an audit of these files in the coming month is scheduled. Almost above 50% of the
application forms were having discrepancies of different types. This turns out to be
very informative experience for me. Deposits are considered as lifeblood for any
bank to survive. I came to know about the procedure and different types of deposits
that customers can maintain in HBL, return rates that a customer can get and other
terms and conditions of each type of account. As far as checking the old files are
concern it seems boring but from my point of view it was very informative. The
learning I got while doing this job would never be easy to get otherwise.
(2) Mr. Khalid Dogar assigned us another task. State bank of Pakistan has instructed
all the banks in Pakistan to make sure availability of computerized national identity
cards of all the account holders. We were given a list of accounts from which CNIC
was required and preprinted letters. Our task was to take the information from
accounts like Name, Address and Account type by entering the account number in
the system and then printing that information on one corner of the letters. This also
turns out to be a very informative experience for me. I learn and get a chance to
work on computer software that the HBL is using, how to view account information,
checking balances and updating the information.
Internship Report                     63                              Habib Bank Limited

(3) Due to my familiarity with their computer software I was given another task of
updating account information on their computer system MISYS. Like account
holder‘s name, address, CNIC number etc. In case of any problem I was consulting it
with Mr. Asif Iqbal. This task gave me more chances to learn about the computer
system of HBL and also I can proudly say that I have my own share of working in
computerizing HBL‘s record.

How this experience will impact my career
Working for 07 weeks in HBL Jinnah Chowk branch as an intern was very
informative experience for me. During the time I learnt many new things which are
surely going to help me in my professional career. It was a good experience for me
to observe and to be the part of practical working of an organization like HBL. During
the internship I got a chance to understand general consumer‘s behavior and his
needs and wants related to banking services and products.
Internship Report                       64                      Habib Bank Limited




         FINANCIAL PERFORMANCE AND
        ACHIEVEMENTS OF HBL IN 2008



Financial performance

     Financial Statements
     Ratio analysis
     The financial results for the first quarter of 2009
     Financial highlights 2008




Achievements

     HBL - 'The Best Emerging Market Bank in Pakistan'
     2008 HBL - 'Most innovative Global Trade Finance' award
     2008 - 'Best bank In Pakistan' Award
     2008 HBL Milestones - 'Buzziest Brands' Awards
Internship Report          65                 Habib Bank Limited

                    Habib Bank Limited
                      Balance sheet
                     As on 31 December 2008
Internship Report           66                 Habib Bank Limited

                    Habib Bank Limited
                    Profit & loss Account
                      As on 31 December 2008
Internship Report                       67                            Habib Bank Limited



           RATIO ANALYSIS OF THE HBL:
―An index that relates two accounting numbers and is obtained by dividing one
number by other‖
        Ratio Analysis is an important and age-old technique of financial analysis. It
simplifies the comprehension of financial statements. Ratios tell the whole story of
changes in the financial condition of business. It provides data fro inter firm
comparison. Ratios highlight the factors associated with successful and unsuccessful
firm. They also reveal strong firms and weak firms, over- valued and under valued
firms. It helps in Planning and forecasting. Ratios can assist management, in its
basic functions of forecasting, planning, co-ordination, control and communication.
Ratio analysis also makes possible comparison of the performance of different
divisions of the firm. The ratios are helpful in decision about their efficiency of
otherwise in the past and likely performance in future. Ratios also help in Investment
decisions in the investors and lending decisions in the case of bankers etc.
Following are the main types of ratios that I am going to calculate in this report to
compare and highlight the financial performance of Habib bank in 2008 with 2007.




              Return on Equity Ratio

              Return on Assets

              Loan to Assets ratio

              Net Profit Ratio

              Loan to Deposit
Internship Report                     68                           Habib Bank Limited


                        Return on Equity Ratio


                                                2008              2007
         Return on Equity Ratio

         Net Profit after tax X 100
         Owner Equity
         Net Profit after tax
                                             15,614,020       10,084,037
         Owner Equity
                                             75,180,436       63,237,429

         Return on equity
                                                20.76            15.94




Interpretation:
 The past two years data shows an improvement in the return on equity which is a
positive sign. The Bank should have to continue its policies. By observing the
audited account I found that this improvement is due to increase in the Net profit
which is good sign.


                            Return on Assets Ratio

                                                 2008             2007
         Return on Assets

         Net Profit after tax X 100
         Total Assets
         Net Profit after tax
                                              15,614,020      10,084,037
         Total Assets
                                             757,928,389      691,991,521

         Return on Assets
                                                 2.06             1.45




Interpretation:
Return on assets ratio shows an improving trend. This ratio shows that the both the
Net profit and Total Assets has improved in 2008 than 2007. But net profit has
increased more rapidly.
Internship Report                     69                              Habib Bank Limited



                            Loan to Assets ratio
                                                   2008             2007
         Loan to Assets ratio

         Loans
         Assets

         Advances
                                               456,355,507      382,172,734

         Assets                                757,928,389      691,991,521
         Loan to Assets ratio
                                                   60.21            55.22



Interpretation:
Loan to Asset Ratio is showing increasing trend in 2008. This is because advances
are increasing more rapidly than assets of the bank.

                            Net Profit Ratio


         Net Profit Ratio                          2008             2007


         Net profit /
         Interest Income X 100

         Net profit                             15,614,020       10,084,037


         Interest Income                        43,970,884       33,250,937

         Net profit ratio
                                                   35.50            30.32


Interpretation:
Net profit Ratio is giving upward trend. This trend is observed due to increase in Net
profit but on the other hand the expenses decreases which shows an efficient
management.
Internship Report                        70                           Habib Bank Limited

                             Loan to Deposit Ratio

                                                       2008          2007
         Loan to Deposit

         Loans/Deposits*100

         Advances
                                                    456,355,507   382,172,734

         Deposits                                   597,090,545   531,298,127


         Loan to deposit ratio
                                                       76.43         71.93




Interpretation:
Loans to deposit ratio show an increasing trend in 2008 as compare to 2007. This
trend is observed as the advances and deposits both are increasing but advances
are increasing more rapidly than deposits.




The financial results for the first quarter of 2009 are

                                                                         (Rs. In 000)
Profit after tax                                                             3,384,623
Share of profit attributable to minority interest                               45,063
Profit attributable to shareholders                                          3,339,560
Earnings per share rupees (Basic & Diluted)                                        4.40
Internship Report                   71                             Habib Bank Limited



              FINANCIAL HIGHLIGHTS 2008
In the following diagram HBL‘s balance sheet‘s and income statement‘s items for
2008 are compared with the items of 2007 and percentage growth is also calculated.
Internship Report                      72                               Habib Bank Limited



                          ACHIEVEMENTS


HBL - 'The Best Emerging Market Bank in Pakistan'

HBL has been selected as ‗The Best Emerging Market Bank in Pakistan‘ by Global
Finance Magazine.

Global Finance magazine has named the ―Best Emerging Market Banks in Asia‖ in
an exclusive survey to be published in the May 2009 issue. Global Finance editors—
with input from industry analysts, corporate executives and banking consultants—
selected the best emerging market bank in the region and in 20 countries. Global
Finance reports on the international finance sector, covering topics such as
corporate finance, joint ventures and M&A, country profiles, capital markets, investor
relations, currencies, banking, risk management, custody, direct investment, and
money management. The magazine also holds several awards ceremonies
throughout the year to recognize the winning financial institutions and companies.




2008 HBL - 'Most innovative Global Trade Finance' award


HBL received the 'Most Innovative GTFP (Global Trade Finance Program)' award.
The award was received at the International Finance Corporation Annual Trade
Conference in Paris where 126 issuing and 145 confirming multinational banks that
were present. Mr. Tariq Mateen - Head Financial Institutions Division, gave a
presentation showcasing the success of HBL in the global trade financing business.
The award was received by Mr. Mateen and Mr. Anwar Zaidi – Head Operations.
This recognition has raised our profile among a large forum of international banks
and paved way for IFC to increase our facility from USD 75 million to USD 100
million which has helped us in creating liquidity in our international network
Internship Report                       73                          Habib Bank Limited

2008 - 'Best bank In Pakistan' Award


In October 2008, HBL received the ‗Best Bank in Pakistan‘ award in recognition for
its continuous efforts in providing world class products and services to customers.
Award was received by Mr. Sultan Ali Allana - Chairman. The ceremony in
Washington was also attended by Mr. Zakir Mehmood - President & CEO, Mr.
Nauman Dar - Head International Banking and Mr. Tariq Mateen - Head Financial
Institutions Division.




                    Mr. Sultan Ali Allana (right) receiving the award

2008 HBL Milestones - 'Buzziest Brands' Awards

Revelation Inc, a Pakistan based brand Development Company, carried out a poll
among marketing and advertising representatives, as well as a panel of judges to
pick the most active brand in Pakistan. HBL was received the ―Buzziest Brand‖
award in the Banking and Financial Institutions Category. HBL was competing with
strong consumer brands like Olpers and Coca Cola yet accomplished third position
among top five brands in the entire advertising industry. The award was received by
Mr. Aly Mustansir - Head Marketing and Brand Management. The first two places
were awarded to telco brands, Telenor and Mobilink.
Internship Report                            74                              Habib Bank Limited



                          RECOMMENDATIONS

As we seen from the previous analysis of the financial statements I have realized
that that Habib Bank is performing very well since its inception. It is quite difficult to
give suggestion to improve the banking conditions Habib Bank Limited. As we know
that nothing is perfect, there is always a room for improvement, so I will recommend
following suggestions for HBL:

              Employees Training programmes must be introduced on continuous
                    basis so that Employees have understanding with the latest
                    developments especially with the customers.

              Bank should introduced incentive plans for employees on regular basis
                    so that if employees may work whole heartedly for the welfare of their
                    organization. While giving incentives qualification, work, experience,
                    hard work and such other factors must be considered.

              Mismanagement of resources must be avoided as much as possible as
                    it decreases profit but also discourage hard worker and honest
                    employees.

              Fresh graduates must be recruited. As the combination of Experienced
                    and fresh can produce better results and it will improve the efficiency of
                    management.

              Habib Bank is going towards mobile banking but the problem is that a
                    common client has no idea of its usage due to lack of marketing. I
                    think that a proper marketing programme must be launched for client‘s
                    awareness.

              Banks different schemes must be conveyed to the targeted customers
                    so that to have a reasonable share in market.

              Bank should help the society by providing interest free loans to the
                    Talented Students.

              Online Banking should be introduced in all the branches.

              To motivate the employees their remuneration / salaries should be
                    made at par with top tier Banks.
Internship Report                            75                              Habib Bank Limited

              Aggressive publicity campaign must be introduced through press and
                    Electronic media for new products and scheme by initiating vigorous
                    marketing policy.

              Bank should adopt such an induction plan that when a customer opens
                    his account with the bank he should be supplied with a booklet which
                    enables him to know the procedure of filing the cheques, pay-in-slip
                    etc. It will save a lot of time of the bank staff afterward during the
                    conduct of the account of that customer.

              The attitude of the bankers with all of their customers is not the same;
                    they pay more attention and good service to some of the customers
                    and neglect a major portion of them. Some of the customers approach
                    to the bank officials and get their work done before others; it is not a
                    good practice. All the customers should be treated equally.

              HBL should increase its communication with customers about the
                    terms and conditions of its different products and services.
Internship Report                    76                            Habib Bank Limited



                                 GLOSSARY

                    CIIT:         COMSATS institute of information technology

                    D.D:          Demand Draft

                    A/C:          account

                    O.B:          Other Bank

                    O.B.C         Outward Bills Collection

                    P.L.S:        Profit and Loss Account

                    Dr:           debit

                    Cr:           Credit

                    C.A:          Current Account

                    F.L:          Flexi loan

                    L.G:          Letter of Guarantee

                    D.F:          Demand Finance

                    L.C:          Letter of Credit

                    R.F:          Running Finance

                    F.A.P.C:      Finance against Packing Credit

                    HBL           Habib Bank Limited

                    ABL           Allied Bank Limited

                    MCB           Muslim Commercial Bank

                    NBP           National Bank Limited

                    UBL           United Bank Limited

                    NIFT          National Institutional Facilitation Technologies

                    (pvt) LTD.
Internship Report                     77                             Habib Bank Limited



                          BIBLIOGRAPHY
Material on these books, articles and websites has helped me a lot in preparation
this report


Books

     HBL Corporate Profile 2008
     HBL Annual Reports 2008 and 2009 first Quarter



Articles & Documents


     BANKING SECTOR REFORMS IN PAKISTAN:
http://www.ishrathusain.iba.edu.pk/speaches/BANKING_SECTOR_REFORMS.pdf
     www.encyclopedia.com/doc/1G1-61864366.html



Websites

     www.hbl.com
     www.habibbankltd.com
     www.hblasset.com
     www.investopedia.com/articles/07/banking.asp
     wiki.answers.com/Q/Evolution_of_banking
Internship Report             78   Habib Bank Limited



                          INDEX


Annex A:

INTERNTSHIP CERTIFICATE

Annex B:

INDICATIVE RATES

Annex C:

ACCOUNT OPENING FORM

Annex D:

REMITTANCES APPLICATION

Annex E:

DEBIT CARD APPLICATION FORM

Annex F:

DEPOSIT SLIP

				
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