Internship Report

Introduction to HBL

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.

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.

1
Internship Report

THE MISSION STATEMENT

To be the leading private sector bank in Pakistan

With an international presence,
Delivering quality services
Through innovative technology
An effective resource management
In a modern and progressive organization
Culture of meritocracy, maintain
High ethical and professional standards,
With providing enhance value to all our stakeholders,
And contributing to society

VISION

To be the leading bank in the region.

CORE VALUES

The intrinsic values, which are corner stones of HBL are:

• Commitment
• Integrity
• Fairness
• Team-work
• Service

2
Internship Report

OBJECTIVES OF THE HBL

As HBL looks ahead to the future by moving through the decade of the 1947 its efforts
are guided by a broad framework of corporate objectives, which are as follows:
It will endure to provide its customers with as many creative financial services and
products, as is required. As today customer demands a package of services suited to his
particular business, HBL plans to develop different and new products to cater to the
customer's demand. HBL has they strength to be a market leader.
Bank will keep standing and by and develop, its human capital base. It is planning to
provide all the required training to its staff towards achieving a higher level of
professionalism. HBL will continue striving to build a strong, motivated and dedicated
work force where total commitment will be towards customer's satisfaction and wealthy
growth of organization.
HBL will endure to provide a competitive return to its shareholders and will strive to
maximize its share value. The enhancement in its capital and returns will be a continuous
process. HBL is interested in being one of the most financially viable institutions. So it
lays great emphasis on gradual building up to a healthy deposit mix. In the years ahead,
the bank will enhance its focus on growth through operational efficiency, creating
strategic alliances developing well-structured networking system innovating new
products, enhancing marketing and sales efforts improving customer service, achieving
greater employee motivation and providing the best value to its stakeholders - will make
it a leader in the corporate world.

HOW CHALLENGE BE DELIVERED

These objectives and guiding mission will be achieved through

Focused objective
Winning as a team
Excellence in delivery
Relentless quality
Upward rising sales

3
Internship Report

Management

R. Zakir Mahmood
President and CEO

Sima Kamil
Head-Corporate &
Investment Banking

Ayaz Ahmed
Chief Financial Officer

Jamil Iqbal
Chief Compliance
Officer

Faizan Mitha
Global Treasurer

4
Internship Report

Aslam Gadit
Head-Remedial Assets

Tulu Islam
Chief Information
Officer

Nausheen Ahmed
Company Secretary &
Head Legal

Dr. Razi Azmat

Head-Human
Resources

Shahid Fakhruddin
General Manager-

International & Market

Risk Management

Aman Aziz Siddiqui

General Manager-Gulf

5
Internship Report

Sohail Malik
Chief Risk Officer

Nauman K. Dar
Head-International
Banking

Abid Sattar
Head-Retail &
Consumer
Banking

Mudassir H. Khan
Head-Global
Operations

Salim Amlani
Chief Internal Auditor

Mirza Saleem Baig

Head-Learning &
Development

6
Internship Report

Aly Mustansir
Head-Marketing &
Brand Management

Mubashar Maqbool
Head-Commercial &
Retail Lending

Mohammad Aslam
Head-Islamic Banking

Abdur Rashid Awan

Business Head-Semi
Urban Areas

Muhammad Ali
Regional Chief
Corporate
Banking-North and
Rawalpindi-Islamabad

7
Internship Report

Introduction to Branch

Islamic university Branch was having operations which were according to conventional
banking. State bank has announced policy that all banks should have at least one Islamic
branch in each city. Keeping in view this announcement, HBL management decided to
convert Islamic University Branch to Islamic Banking.

After 30th June 2010 all the operations of the bank were converted to Islamic Banking
operations. By doing this they also need to have a merger with other branch of HBL so
that they can have help in conversion, so a merger was done with I-9 Branch of HBL.

After conversion it was important that there should be a Branch manager who can carry
Islamic Banking operations in a good manner and should have much information of
Islamic Banking. So Mr. Omer Farooq was appointed as Branch Manger who previously
worked with Alflah Bank.

8
Internship Report

Management

Mr. OMER FAROOQ

Branch Manager

Mr. AZAM ALI

Manager Operations

Mr. NAEEM SAJJAD

Manager Trade

Mr. MUBBASHIR ILYAS

Manager Clearing and Account Opening

Mr. SHEHZAD
Relationship Manager

Mr. FIDA
Manager Teller

Mr. IQBAL
Cashier

9
Internship Report

DEPARTMENTS AND ASSIGNED WORK

Banking procedures are divided between various departments. Different

departments do their jobs in occurrence with the bank policies. In HBL each branch is
divided into various departments. Head of department manages each department &
officials of the branch follow procedures.

The departments working within a branch are as:

GENERAL BANKING DEPARTMENT

 Account opening department

 Remittances department
 Cash department
 Clearing department

PRIVILEGE BANKING DEPARTMENT

 Online banking
 Lockers

CREDIT DEPARTMENT

FOREX DEPARTMENT
 Import department
 Export department
 Foreign currency department

ACCOUNTS DEPARTMENT
IT- DEPARTMENT

10
Internship Report

HBL Islamic university Branch was working as conventional Branch but now change has
been brought in HBL branch and branch has been converted to Islamic Banking. Now
this branch is not having some Departments including:

Credit Department
Forex Department

Forex Department was there in the branch but now they are not having license for that so
Branch is not facilitating Regarding Forex Accounts or transfer. MISYS is the name of
the software which is being used by the branch for operations. I ave worked in following
departments and I was given different tasks in all of the following departments.

ACCOUNT OPENING DEPARTMENT

Account Opening In-charge

Officer Officer

Functions of Account Opening Department

• Providing account opening form according to the customer's requirements,

• Guide the customer about the requirements of the account opening and form
filling,
• Check the forms whether they are correctly completed or not,
• Preparing checklist,
• Stamping on the form,

11
Internship Report

• Maintaining account opening register,

• Pasting of forms in register after release from general banking in charge,
• Issuance of cheque books,
• Issuance of accounts maintenance certificate,
• Closure of account
• Verification of signature in case of cheque presented before releasing of account
opening from SS card is not yet scanned

IMPORTANCE OF INTRODUCTION

FOR A\C OPENING

Introductory references As soon as a person opens an account with the bank, the banker
customer relationship is established. In such situation this is advisable the banker should
not open new accounts of unknown persons unless references regarding the integrity and
responsibility of the purposed persons are obtained from respectable parties.
Failure to exercise this care may result in serious consequences not only for the banker
concerned but also for the other bankers and general public. It is not sufficient to obtain
the reference but its genuineness must also be verified. Omission of this may have serious
consequences.
In practice we see that there is tough competition among bankers for procurement of
deposits, so to press a prospective new customer to find the desired reference may offend
him, yet he is to be welcomed by the banker as a source of fresh deposits. But these
practical difficulties have to be handled tactfully because the risk involved to carry out
this requirement partially or wholly may lead to undesirable results.

PRECAUTIONS TO AVOID FRAUD

If preliminary necessary inquiries mentioned above are not made and account is opened,
it is possible that an undesirable person is provided with a chequebook to defraud

12
Internship Report

innocent people or the person being an undercharged bankrupt may put the banker in
difficult situation.

1. SAFEGUARD AGAINST UNINTENTIONAL OVERDRAFT

Sometimes due to misreading of the balance an account may be inadvertently overdrawn
or the credit entry of customer is placed into the account of another person by mistake
who happens to have withdrawn that amount. in all such cases the amount can only be
realized if the person is man of integrity.

2. INQURIES ABOUT CUSTOMERS

Have all necessary information with him regarding his Generally a banker is asked by
another banker to give his opinion about his customer’s financial position. Therefore, it is
beneficial for the both that the banker should customers.

3. PROOFS FOR REASONABLE CARE AND INQUIRY

Under section 131 of negotiable instrument act, 1881 a collecting banker is protected
provided he collects the cheques of his customers in good faith and without negligence.
But if the banker fails to make preliminary inquiries he may be deprived of statutory
protection, being guilty of negligence.

ACCOUNT OPENING PROCEDURE &PRECAUTIONS:-

KNOW YOUR CUSTOMERS

The objective of knowing a customer is to have a fair idea about the identity, financial
resources, and general information about the customer at the time when the relationship is
established. A banker must have following information about the customer:
 Customer name:
Enter complete name as mentioned in original ID card /other business documents.
Nature of business /profession: if customer is of salaried class enter his employer name.
If the customer is a businessman, trader, sole proprietor, enter the business name, for

13
Internship Report

example “Jamil Traders”etc.also enter the customer’s title/position and address of the
business/employer. Address with P.O.BOX is not acceptable. Similarly remarks like
“Private service”, “business” are not acceptable, rather specify what type of
company/business the customer is associated with for example Manager Philips Electrical
Company.

 Address:
Enter the complete business/residential address. With in the brackets you may also
provide prominent address identification marks for ease of physically locating the
address.

 Contact Numbers:
Enter home, official, mobile, fax number and e-mail address (if available). Banker can
verify the number by giving the customer a courtesy call or by sending him a e-mail.

 Other/ secondary/ mailing address:

Some customer may volunteer their parents or siblings’ addressor second home address
or a mailing address other than a permanent address.

 Special instructions:
Clear-cut special instructions must be obtained from customers. If the customer has not
given any special instruction specified column must be cancelled by drawing a line, as
this column must not be left blank in any circumstance.

 Existing/other bankers:
Almost most all the bankers usually have a banking relationship with another bank. In
case of customer who does not have an existing banking relationship, or does not want to
disclose the existing relationship, then it is strongly recommended that at least for some
time this particular account must be kept under observation.

14
Internship Report

TYPES OF ACCOUNTS

1) ACCOUNTS OF GENERAL CUSTOMERS

• Current Account
• PLS Account

As HBL Islamic University Brach was going through a change and was in transition
period, we also had an exercise to convert accounts of customers from conventional
banking to Islamic banking. The basic thing was that the branch code was changed from
1844 to 5006.

REMITTANCE DEPARTMENT

Functions of remittances department

The functions of remittance departments is to handle with the following instruments:

• Pay Order
• Demand Draft
• Pay slip
• Telegraphic Transfer
• Payment of Remittances
• Cancellation of pay order & demand draft

The remittance department deals with the transfer of money from one place to another.
This department deals with the local currency transfer only. HBL provides these services
to both customers & non-customers

15
Internship Report

Remittance can be made through:

1) Instrument transfer
2) Electronic transfer

Instruments of the Remittances Departments

PAY ORDER
Pay order issued from one branch only be payable from the same branch. It is normally
issued for payment in the same city. It is normally referred as banker's cheque

 Get the application form.

 Issue pay order after recovering cheques.
 Do necessary vouchering.
 Make entry in MISYS
 All pay order shall be crossed" payees account only".

Charges on issue of Pay Order

Amount (Rs) Charges (Rs)

Less then 100,000 350/-
Above 100,000 600/-

Duplicate Pay Order:

 Check the record to insure that payment has not been effected.
 Get application for issuing of duplicate PO.

16
Internship Report

 Recover charges.
 Issue duplicate pay order.

DEMAND DRAFT
It is an instrument on demand for which value has been received, issued by the branch of
the bank drawn i.e. payable at some other place(branch) of the same bank. In case of
agency arrangement- demand draft can also be issued by one branch of the bank payable
to other branch of the other bank e.g. DD issued by HBL payable by MCB.

Charges on issue of Demand Draft

Amount (Rs) Charges (Rs)

1 - 10,000 350/-
10,000 – 100,000 350/-
100,000 - 1000,000 350/-
Over 1000,00 600/-

Now HBL has brought a new thing that is banker’s cheaque they have given one name to
both Demand draft and pay order. For the person having account in he branch will be
charged only Rs. 160/-.

17
Internship Report

CASH DEPARTMENT

All physical movement of cash in the bank is made through the cash department.
Normally cash department performs following functions

 Receipt
 Payments
 Act according to any standing instructions
 Transfer of funds from one account to another
 Handling of ATM
 Verification of signatures
 Posting
 Handling of prize bond

Cash receipt section

In this section the cashier in following manner receives cash:

Process of deposits

Deposited on
Fill- up deposit
Receipt Customer
slip

Cashier counts the amounts Cashier counts the

and fulfills other amount and fulfills
requirement other requirements
18
Internship Report

Cash payment section

In this section honoring the cheque through following process makes payment.

Process of payment

Cheque is presented at Cheque is recorded &

token counter token # is allotted

Cashier counts the Cancellation officer

amount & payment cancels cheque
is made

Two signatures on
back of the cheque by Posting is made
customer

19
Internship Report

CLEARING DEPARTMENT

MEANING OF CLEARING
The word clearing has been derived from the word “Clear” and is defined as “ a system
by which banks exchange cheques and other negotiable instruments drawn on each other
within a specific area and thereby secure payment for their clients through the Clearing
House At specified time” in an efficient way”.

1. Since clearing does not involve any cash etc. and all the transaction take place
through book entries , the number of transaction can be unlimited.
2. No cash is needed as such the risk of robbery, embezzlements and pilferage are
totally eliminated.
3. As major payments are made through clearing, the banks came manage cash
payments at the counters with a minimum amount of cash in vaults.
4. A lot of time, cost and labor are saved.
5. Since it provides an extra service to the customer of banks without any service
charges or costs, more and more people are inclined and attracted towards
banking.

CLEARING HOUSE
It is a place where representatives of all banks sit together and interchange their claims
against each other with the help of controlling staff of State Bank of Pakistan And where
there is no branch of State Bank of Pakistan the designated branch of National Bank of
Pakistan act as controlling member instead of State Bank of Pakistan

MEMBERSHIP CEASES
 It ceases to be a scheduled Bank.

20
Internship Report

 It is not able to meet its liabilities.

 State Bank of Pakistan or Central Govt. prohibits it to receive fresh deposits.

RULES AND REGULATIONS HAVE CLEARING HOUSE:

 Timing:(Monday through Friday)
i. 1st Clearing at 9:15a.m.
ii. 2nd Clearing at 3.30 p.m.

 Each bank will send competent representative to exchange the cheques.

 Each bank is required to insure that all cheques and other negotiable instruments
are properly stamped and suitably discharged
 An objection memo must accompany each and every cheque when return unpaid
duly initialed.
 Each bank is required to maintain sufficient funds in the principal account with
SBP to meet the payment obligations.
 The State Bank of Pakistan debit the account of each member of the
clearinghouse with the proportionate working expenses incurred on the operation
of clearing house. These expenses are very nominal.

.
OUTWARD CLEARING AT THE BRANCH:
The following points are to be taken into consideration while an instrument is accepted at
the counter to be presented in outward clearing:

 The name of the branch appears on its face where it is drawn o.

 It should be stale or post dated or without date.
 Amount in words and figures does not differ.
 Signature of the drawer appears on the face of the instrument.

21
Internship Report

 Instrument is not mutilated.

 There should be no material alteration ,if so, it should be properly
authenticated.
 If order instrument suitably indorsed and the last endorsee’s account being
credited.
 Endorsement is in accordance with the crossing if any.
 The amount of the instrument is same as mentioned on the paying-in-slip and
counterfoil.
 The title of the account on the paying-in-slip is that of payee or endorsee (with
the exception of bearer cheque).

If an instrument is in order than our bank special crossing stamp is affixed across the face
of the instrument. Clearing stamp is affixed on the face of the instruments, paying-in-slip
and counterfoil (The stamp is affixed in such a manner that half appears on counterfoil
and paying-in-slip). The instrument is suitably discharged, where a bearer cheque does
not require any discharge and also an instrument in favor a bank not need be discharged.
The instrument along with pay-in-slip is retained while the counterfoil is given to the
customer duly signed. Then the following steps are to be taken:

1. The particulars of the instrument and the pay-in-slip or credit voucher are entered
in the outward clearing register.
2. Serial no. Is given to each voucher.
3. The register is balanced; the credit vouchers are balanced from the instruments
and are released to the respective departments against acknowledgement in the
register.
4. The instruments are arranged bank wise.
5. The schedules are prepared in triplicate, two copies which are attached with the
relevant instrument and the third is kept as office copy.
6. The house page is prepared from schedules in triplicate.
7. The schedules and house pages are signed by the house incharge with branch
stamp.

22
Internship Report

8. The grand total of the house page is taken and agreed with that of the outward
clearing register.
9. The instrument along with duplicate schedule and house page are sent to the main
office.
However the amount is kept in float till final status of various instruments is known from
respective paying banks in second dealing.

The entry of the instrument returned unpaid is made in Cheques returned Register. If the
instrument is not to be presented again in clearing then a covering memo is prepared. The
covering memo along with returned instrument and objection memo is sent to the
customer who sent the same to his account.

INWARD CLEARING OF THE BRANCH:

1. The particulars of the instruments are compared with the list.
2. The instruments are detached and sort out department wise.
3. The entry is made in the inward clearing register (serial no. Instrument no.
Account no. Is written).
4. The instruments are sent top the respective departments
5. The instruments are scrutinized in each respect before honoring the same.

OUTWARD CHEQUES RETURNED UNPAID:

These are the cheque returned unpaid by us in inward clearing. due to some objections.

INWARD CHEQUES RETAINED UNPAID:

These are the cheques retained unpaid to us which were lodged by us in Outward
Clearing.

RETURN OF CHEQUES AFTER CLEARING HOUSE:

Suppose all cheques received in the inward clearing are passed and later on it is found
that a cheque should have been returned, in such cases, we contact the collecting branch
and request them not to make payment against the proceeds of the cheque which was not

23
Internship Report

returned unpaid by us in due time. the cheque with objection memo along with a covering
letter is sent to the collecting branch, making request to issue a payment order in favour
to balance the Cash-cum-day book we may debit suspense account sundry debtors with
the approval of the manager. When the payment order is received, it is lodged in clearing
and suspense account, sundry debtors is adjusted accordingly.

SPECIAL CLEARING:

In addition to the normal clearing function at Clearing house it is mutually agreed to hold
an extra clearing at the clearing house on the particular day and time which is known as
“special clearing” it is arranged due to the rush of work arising out of say, more Holidays
declared by the Central Govt. at a time, but normally special clearing is held on last
working day of our half yearly and yearly closing i.e. 30th June and 31st Dec. every year.

FOREIGN EXCHANGE DEPARTMENT

The term "foreign exchange" is used to denote either a foreign currency or the rate at
which one currency is converted into another or the means & methods by which one
currency is exchanged for another.

Functions of Foreign Currency Account Department

Foreign exchange department performs following functions:

• Foreign Bills for collection (FBC)

• Foreign telegraphic transfer (FTT)
• Foreign Demand Draft (FDD)
• TDR
• Issuance of Proceed realization certificate
• Inward remittances
• Daily Reporting

24
Internship Report

Requirement of Funds Transfer

For transfer of fund in foreign currency, a person must have his account in foreign
exchange in the bank.
Requirement of account opening is $500 or any other currency equivalent to $500.

Types of currency Interest p.a.

Dollar .1%
Pound sterling .1%
Euro .1%

25
Internship Report

SWOT ANALYSIS

An analysis indicating towards the organizations strengths, weaknesses, opportunities and

threat is termed as SWOT Analysis. Such an analysis is very important for the
management in retaining the strength, overcoming the weaknesses, capitalizing over the
emerging market opportunities, and carving ways to successfully tackle with the threats
and ultimately converting them in the strengths for the organization.

During six weeks of my stay at HBL, Islamic University Branch Islamabad, I have come
across the following SWOT analysis of the bank.

STRENGTHS

LEADING PRIVATE SECTOR BANK:

HBL is the leading private sector bank in the banking network in Pakistan with many of
them online branches in major cities of the country

AUTOMATIC OPERATIONS:
The operations performed by the bank are highly automated that result in assurance for
the customers that their transactions are completed reliably, efficiently and securely.

FULL DAY BANKING

One can avail the benefit of the services provided at the bank till 6:00 P.m. which is
highly useful for those customers who find it difficult to leave their officers in the
morning..

ATM NETWORK
The bank has the largest ATM Network cross the country. The customers of HBL
withdraw access their funds any time at all the ATM Sites.

26
Internship Report

CUSTOMIZED SOLUTIONS
The management of the bank believes in customer focused banking rather than the
product oriented banking. The products and services designed by the bank are
specifically tailored to the individual needs of its customers.

CUSTOMER ORIENTED BANKING

The priority banking centres of the bank offer an unmatched where the customer receives
highly privileged services in a highly elegant environment. It gives the chance of
experiencing new standards in banking. Designed specially for those who appreciate only
the finest things in life, Priority Banking offers the very highest levels of personalized
banking to match customer’s unique status.

ELECTRONIC BANKING
The revolution in the banking in the form of electronic banking operations have opened
avenues of excellent, efficient and quick services saving the time and costs of the
customers and fortunately HBL is among those few banks who are already reaping the
benefits of electronic transactions.

ELECTRONIC FUNDS TRANSFER

HBL management is quite prepared to adopt the latest advancements in technology
resulting in revolution in the banking operations such as check clearing process,
computer based teller equipment, automatic teller machines, and electronic funds
transfers among the others.

PHONE BANKING
Phone banking service is very attractive for those classes of customers who don’t have
time to personally come to the bank i.e. banking on the phone line thus saving the
precious time of the customers.

27
Internship Report

ETHICAL CONCERNS AND PUBLIC IMAGE

The organizations showing concern for the people, ethics, and environment enjoy good
public reputation and are able to reap the benefits in the long run. HBL management is
quite sensitive to this issue.

WEAKNESSES

In my opinions these are the points that might be detrimental to the efficiency and
profitability of the bank.
.

LOW JOB SATISFACTION

Understanding and the effective management of the human resources is the most difficult
challenge faced not only by the bank but by all the organizations. Even though the people
have been sacrificed in the new organizational developments, it is becoming clear that the
true lasting competitive advantage comes through human resources and how they are
managed. HBL seems to not focusing on this highly critical issue as the job satisfaction
level of the employees working at HBL, was quite low.

LACK OF SPECIALISATION
This famous and useful concept given by Adam Smith in 1776 seems to be missing in the
bank. The employees are constantly rotated from one job to another job of totally
different characteristic in the view of giving them the know-how of the working in all the
departments. But I think this is not a very good tactics used by the management.
Otherwise the situation might be like this ‘Jack of all and master of none.’

CENTRALIZATION
There is a high degree of centralisation in the bank. Almost all the decision-making is in
the hands of the upper management. But centralisation is effective up to a certain level
otherwise it becomes inefficient and at times costly too. I personally observed that delay

28
Internship Report

occurred in the operations of the employees only due to the fact that they had not got any
instructions from the head office.

LACK OF TRAINING FACILITIES

Presently there is no specific training program arranged for the new recruiters. They have
to learn based on their observations and also their mistakes. It takes a bit time for the
fresh one to learn the banking the result is huge amount of blunders, mistakes etc.
resulting in monetary and non-monetary losses for the bank. There is pressure not only on
the new learner but also on the person placed upon with this responsibility.

OPPORTUNITIES

Apart from the ones discussed in External Factors Evaluation Matrix, the bank is facing
the following threats and opportunities currently:

These are positive external environmental factors effecting the organization.

• It deals in bulk business.

• A large amount of foreign investment is attracted.

• Strong potential for growth

• Steady increase in Customer Deposits

• Sharp increase in imports and exports

29
Internship Report

THREATS

High Employees Turnover

As discussed above, the job satisfaction level of the employee is very low resulting in
high turnover, which is bad for any organization as there are huge monetary and non-
monetary costs involved in the fresh recruitments.

High charges
The schedules of charges indicate that the fees charged by the bank on the various
services it provides are extremely high. It may result in decrease in the number of its
exiting customers. Further more, this could be very alarming situation for the bank in
case some of the competitors grasped the opportunity and lowered its rates. The result
would be either the lost of market share or decrease in the charges resulting in lowering
the bank’s income.

Stiff Competition
SCB is currently facing strict competition from the foreign banks especially the American
who banks enjoy a good market position. Collectively U.S. banks hold approximately 9
percent of all commercial banks' assets. At present, three American banks are operating
in Pakistan: American Express Bank; Bank of America and Citibank

30
Internship Report

Conclusion

After spending six weeks at different departments of the bank, interacting with the
employees, getting their views, observing the organizational structure and design, I have
come up with the following suggestions that in my view, will definitely improve a few
weaknesses observed in the bank by me.

Flexible Policies
The bank should be adopt flexible policies, specially in the areas of the recruitment,
promotions, evaluation of the employees otherwise the high turnover observed in the
bank will continue to create problems for the bank now and in the future.

Permanent Hiring
The fresh hiring should be made permanent so that they are secured of their future.
Further the allowances and perquisites attached with the permanent jobs will also
increase the motivation level of the employees.

More Hiring:
In HBL there is one person having different tasks, which some time create pressure for
the employee, so there should more work force to handle operations

Job Training Programs

The bank should place emphasis on the organization of effective training and
development programs for its new as well as existing employees so that these are
gradually updated regarding the recent developments in the field of banking.

31
Internship Report

Revival of the Charges

The rates for the various charges provided by the bank should be brought down a bit, as it
would result in increase in the number of customers of the bank.

Decentralization
The higher authorities should form team-based management rather than centralized
management. It would result in improvement in uplifting the morale of the employees.
They will be more motivated and involved in all their operations resulting in overall
effectiveness of the organization.

32