Professional Documents
Culture Documents
HBL Internship Report
HBL Internship Report
Submitted To :
Submitted By :
Khurram Jehanzeb
Program :
MBA
Enroll # :
01-122081-048
ACKNOWLEDGEMENT................................................................................................. 5
1.
About HBL............................................................................................................ 6
2.
3.
4.
History of HBL...................................................................................................... 8
5.
Mission................................................................................................................. 9
Vision................................................................................................................... 9
Our Brand............................................................................................................. 9
Values................................................................................................................... 9
6.
Board of Directors.............................................................................................. 10
7.
Management Forum........................................................................................... 11
8.
9.
HBL at A Glance................................................................................................. 13
10.
Organizational Hierarchy.................................................................................14
11.
Chain of command.......................................................................................... 15
12.
13.
Experienced Professionals.................................................................................. 18
Selection Process............................................................................................... 19
14.
15.
Technology...................................................................................................... 20
MISYS................................................................................................................. 20
16.
INNOVATION.................................................................................................... 22
House Finance.................................................................................................... 22
Auto Finance...................................................................................................... 22
Life Style............................................................................................................ 22
HBL Rescue........................................................................................................ 23
HBL E-Bank......................................................................................................... 24
17.
18.
Operations.......................................................................................................... 24
Advances Department........................................................................................ 25
SAVING ACCOUNT.............................................................................................. 26
Opening of an Account....................................................................................... 26
Remittance Department..................................................................................... 28
Interbank Transfer.............................................................................................. 28
Clearing Department.......................................................................................... 28
Inward Clearing.................................................................................................. 29
3
Outward Clearing............................................................................................... 29
19.
20.
Strengths............................................................................................................ 30
Weaknesses....................................................................................................... 31
Opportunities..................................................................................................... 31
Threats............................................................................................................... 32
21.
CONCLUSION............................................................................................................ 33
RECOMMENDATIONS............................................................................................. 33
ACKNOWLEDGEMENT
ACKNOWLEDGEMENT
First of all I am thankful to ALMIGHTY ALLAH. Who gave me the strength, patience,
courage and enthusiasm needed to write and complete this report, then to my
friends who assisted me in this effort and we worked daylong to accomplish this
assignment and to my parents who supported me financially and encouraged me
morally. I have a debt of gratitude to all my teachers who taught me throughout my
academic career.
It was pleasure for me to be sent to The HBL, F-8 Markaz Branch. I am very thankful
to the honorable internship incharge. I learnt a lot from this training program and
this would guide me a lot while selecting my career. I also know how to face the
problems and how to find out the ways for their solutions.
The preparation of this report was a massive undertaking but the highly competent
and experienced bankers of HBL F-8 Markaz Branch, Islamabad. Provided me with all
assistance, information, advice and suggestions that I needed which contributed
importantly to this report.
Khurram Jehanzeb
1. About HBL
HBL is the prime Bank in country, established in 1941, having its registered head office in
Karachi. It was nationalized in 1974, but on 26 th February 2004 it was privatized by Government
of Pakistan and taken over by Aga Khan Fund for Economic Development (AKFED). They
acquired 51 percent of shares of HBL.
It is one of the largest Banks of Pakistan with 1466 branches inside country and 112 overseas
offices (presence in 25 countries) at different destinations around the world covering 5
continents. It internationally operates in countries including USA (New York), United Kingdom
(London, Manchester, Birmingham), Scotland (Glasgow), Belgium (Brussels), France (Paris),
Lebanon (Beirut), Netherlands (Rotterdam), Turkey (Istanbul), Kenya, Mauritius, Seychelles,
Nigeria, Afghanistan, Bahrain, Oman, UAE, Iran, Sri Lanka, Sudan, Kuwait, Bangladesh, Egypt,
Hong Kong, Singapore, Maldives, Indonesia and Australia. Currently HBL is having customer
base of over 6 million
Pakistan
International
"A financial institution, deals with money and credit. It accepts Deposits from individuals,
firms and companies at a lower rate of Interest and gives at higher rate of interest to
those who need them.
A financial establishment which uses money deposited by customers for investment, pays it out
when required, makes loan at interest, exchanges currency, etc.
1.
2.
3.
4.
5.
In early 90s after the failure of nationalization policy, Government went for privatization of
financial institution. In last ten to fifteen years banking sector in Pakistan has shown tremendous
growth. Due to its remarkable growth, banking sector of Pakistan has become very attractive for
foreign investors. Many investors have already invested and still many more to come.
4. History of HBL
Habib Bank Limited was established by Mr. Ismail Habib on August 25, 1942 on the desire of
Quaid-e-Azam Muhammad Ali Jinnah, father of the nation. It was established with paid up
capital of Rs. 2.5 million. It was the first Muslim bank of sub continent. Quaid-e-Azam first of all
opened his personal account.
The first branch of HBL started functioning on 30 th August, 1942 at Muhammad Ali Road
Bombay, In 1942, on the desire of Quaid-e-Azam, Habib family migrated to Pakistan and later
on shifted the Bank's Head Office from Bombay to Karachi on 7 th August, 1947 just one week
prior to independence, to play its pivotal role in the development of this newly born country.
At the time of independence, the areas which now constitute Pakistan were producing only
agricultural products raw material for indo-Pak subcontinent. Partially no industries were there to
process the raw material; therefore the raw material was exported from Pakistan. There were 19
non-Indian foreign Banks which were engaged in the export of crops from Pakistan with only
two Pakistani Banks i.e. HBL and the Australia Bank. The circumstances were completely uncertain. The confidence of the people had been shaken by the un-friendly environment and till
the time peace had not been restored, people would naturally have been interested in other
things. The nation was quite young with extreme scarcity of resources and these definitely
added to the difficulties of the govt., to run its own Banking system immediately.
Following the announcement of the independence plan in June, 1947, the Hindus residing in the
territories now comprising Pakistan started transferring their assets to India and vice versa. The
Banks included those having their registered offices in Pakistan, transferred them to India in
order to bring a total collapse of the new state. It had been decided that the Reserve Bank of
8
India would continue to function in Pakistan so that the problem of demand and time liabilities,
coinage, currencies, exchange rate etc be settled between India and Pakistan and the Indian
Notes would continue to be legal tender in Pakistan till 30 th September, 1948. Again due to
certain differences between Indian Pakistan, the India government withheld Pakistan's share of
Rs.75 core in forward and subscribed heavily to the government of Pakistan to the tide over the
crises.
At a time when this newly born country was at whirlwind of crises, it was HBL which fulfilled
generously the financial needs of all its sectors, paid salaries to the employees of all Govt.
departments, helped in the establishment of State Bank of Pakistan which the Quaid-e-Azam
inaugurated on July 1st, 1948. HBL after partition opened its branches throughout Pakistan to
provide finance and other facilities to the business community. In association with HBL, the
Govt. sponsored Pakistan Finance Corporation Limited for financing of cotton. The Bank helped
handsomely in the construction of WARSAK DAM PROJECT, WAPDA, & K.D.A. by provided
finance and other facilities.
Vision
Enabling people to advance with confidence and success
Our Brand
Our brand identity is the outward expression of what we stand for as an organization. This is
summarized in our vision, mission and is supported by our values.
Values
Our values are the fundamental principles that define our culture and are
brought to life in our attitudes and behavior. It is our values that make
us unique and unmistakable. Our values are defined below:
A. Excellence
B. Integrity
9
C. Progressiveness
D. Customer Focus
E. Meritocracy
10
6. Board of Directors
11
7. Management Forum
12
Year
Important Event
1941
Commenced operation.
1942
1943
1946
1947
1966
Silver Jubilee.
1974
1991
Golden Jubilee
1997
2004
2006
2008
2009
13
9. HBL at A Glance
Yea
r
DEPOSIT ADVANCE
Rs.
S
(in millions)
Rs.
PROFIT (PRE-TAX)
ASSETS
Rs.
Rs.
( in millions)
( in millions)
BRANCHES
( in millions)
194 24.0
1-42
10.3
0.4
27.0
194
7
266.0
63.7
1.5
321.2
21
197
3
7579.8
4005.1
113.0
11679
749
197
4
8592.8
6212.4
211.8
15,531
1084
199
0
120680.2
81140.9
731.0
228,799
1904
200
1
283,445
167,225
2224
333,751
1516
200
2
328,182
167,523
4088
403,013
1473
200
3
360,648
183,654
5469
434,932
1470
200
4
404,629
258,306
7146
486,982
1469
200
5
432,545
316,681
13833
528,893
1425
200
6
459,140
349,432
20532
590,291
1425
14
200
7
517,481
354,980
10199
654,652
1477
200
8
437,098
74,622
16254
696,712
1464
10.
Organizational Hierarchy
Chairman
President
Board of
Directors
SEVP
International
Operations
SEVP Corporate
Banking & Treasury
15
11.
Chain of command
Chairman
President
Board of Director
Regional Chief
Zonal Chief
Branch Manager
Operations Manager
16
Bank Staf
17
12.
18
13.
HBL is an organization that provides opportunities for its staff to have a challenging and
rewarding long-term career. To this end the Human Resource Group (HRG) encourages and
motivates its employees to excel in the responsibility that they have in the organization .It
believes that creativity and innovation comes from talent, knowledge and experience and it is
HBLs endeavor to provide and maintain an environment which not only nourishes these
strengths but also provides opportunities for the staff to have a career which has
multidimensional growth opportunities.
In doing so, HRG has been restructuring and redesigning the overall structure of the
organization, which includes rationalization, cutting down the decision layers, improvement in
staff training and hiring professionals and MBAs at entry-level management.
The overall direction of HRG has been towards nurturing the strengths of the human capital to
its maximum with a defining principal to help create a progressive environment and sustain a
thorough commitment of our staff towards focused customer service.
HRG therefore recognizes the need to proactively invest in staff training and develop courses on
a regular basis. Under the umbrella of its Management and Organization Development Division
(MODD) its Management Development Institute (MDI) with its three fully equipped chapters at
Karachi, Lahore & Islamabad regularly conducts and outsource technical and personal
development courses for its all level of staff enabling them to meet the challenges of the everchanging business requirements and customer needs. During 2008, 529 courses, workshops,
skill development clinics and seminars in the disciplines of Service & Attitude, Market Research
& Selling, Management & Communication, Credit & Finance, I.T. & e-Banking, Treasury & Trade
Finance, Global/ Domestic Banking Operations and on other diverse subjects were conducted
by In / Ex-House professionally skilled, qualified and certified faculty and industry experts for
10233 people of senior / middle line management & staff carving 1334 days training days. There
is no budget limit for Training and Education at Habib Bank.
HR Group aims to maintain and further improve the service-oriented culture and to make
employment not only satisfying but also enjoyable.
Meritocracy is an integral part of HBLs recruitment policy. Our merit-based recruitment process
incorporates the principles of equal opportunity and leads to the appointment of the most
capable candidate. This ensures openness and transparency, allowing greater confidence in
19
The merit principle at HBL aims to identify the most suitable person for the job assessed on the
basis of the following parameters:
Educational Background
Skills and Competencies
Abilities and Attitude
Experience
Interpersonal / Communication skills
Management Trainee
Cash Officer
Management Associates
Internship
Experienced Professionals
We recruit experienced professionals in all areas of the bank and encourage the
creation and pursuit of innovative ideas. Our dynamic work environment offers
diverse opportunities to stimulate ongoing employee needs and supports career
enhancement opportunities.
20
Selection Process
The diagram below represents the process on which we base our selection. This gives an
overview to potential candidates as to the steps involved in becoming a part of the HBL
team.
14.
Commercial Banking
Corporate Banking
Investment Banking
Global Treasury
Islamic Banking (referred to Modaraba)
Cash Management
Asset Management
Zarai Banking
21
15.
Technology
MISYS
MISYS (online) perform two type of system
Cashier system
This system use only cash transaction like cash withdraw, deposited, Remittance,
Accounts opening, LFT etc.
Equation system
Clearing inward or out ward, special or intercity clearing, supervision
22
23
16.
INNOVATION
House Finance
HBL provides the facility of house finance. The Financing available for:
Purchase of house
Home improvement and renovation
Self Construction
Auto Finance
Habib Bank Auto Finance, a lease product, designed to offer you an economical way
for owing the car of your choice.
Some characteristics are:
Life Style
Habib Bank Lifestyle is an economical financing scheme for Household Appliances
and consumer Electronics.
Salient features of HBL LIFESTYLES:
Loans for salaried/ self Employed individuals or business persons
Low Mark-ups leading to affordable monthly installments.
24
HBL Rescue
(Balance Transfer Facility)
HBL provides the facility to transfer your personal loan and credit card liabilities, at
the lowest rates ever.
25
HBL E-Bank
It provides services via a dedicated communication link on the internet. The EBanking services provide anytime, anywhere banking to all 6 million customers.
This service, designed to be user friendly, assures secured access and
confidentiality.
17.
It was an honor for me to get training in HBL CDA Civic Centre. It is the largest retail
banking branch in Pakistan with deposits of 22 billion rupees. It is also the main
branch of Habib Bank in Islamabad. It also serves as credit hub as well as cash bank
for Islamabad region. It was an opportunity as well as honor for me because it not
only gives me a lot of practical exposure to real field work but also clear
understanding that how large institutions are run and controlled.
18.
Departments I worked in
During the six week internship as I had to work in different department. The day I
reported in branch (27th July), manager operations had introduced me with Mr. Illyas
Ahmed experienced bank employee and told me that he would act as internship
coordinator. Mr. Illyas with mutual consultation assigned me seven departments
which are as follow
26
Operations
27
There are different accounts that can be opened with a bank. These are
Current Account
Savings Account
Basic Banking Account
SAVING ACCOUNT
Saving accounts are opposite of current account. These sorts of accounts are
provided to encourage savings habits. There are different classifications of saving
accounts, usually termed as short, medium and long term saving plans. Each set
has its own unique characteristics. The saving Account of Habib Bank is started from
20,000/-, any Amount less than bank will make charges of 55 per month against the
balance. The function of the saving accounts is to save the surplus money of the
people by giving them good interest rate. (Annexure 1)
28
Opening of an Account
When all requirements are fulfilled by the applicant, the procedure of account
opening starts. To open an account of any type, bank officer has to go through five
different windows of MYSIS than the account holder information is sent for
verification.
1)
2)
3)
4)
5)
1416
Branch Code
29
75000254
Account Serial #
03
Type of account
Interbank transfers
Intra bank transfers
Online transfers
Travelers cheques
All those cheques which are of same branch or bank (e.g. HBL) are termed as online
transfer provided that both concern branches are online. Cross stamps are engraved
in front of instrument received to make it ownership of bank.
As this department acts as facilitator and there is also enough idle time, so more
than often different responsibilities are also assigned to this department. These
include
Remittance Department
As it is clearly depicts from its name, this department is used to remit amount from
one place to another. This department performs following functions
Interbank Transfer
When an account holder (may be of same branch but should be of HBL) presents a
cheque of another party (account holder of HBL any other branch), funds are
transferred immediate by using online system and available for usage. This is
known as interbank transfer.
Clearing Department
Every bank performs both as a paying as well as collecting functions on behalf of its
customer. It is however an important function of crossed cheques. A large part of
this work is carried out through the bankers clearing house. A clearing house is a
place where representatives of all the banks of a city get together and settle the
receipts and payments of cheques drawn on each other bank. As the collecting
banker runs the certain risks in receipt of their ownership, the law has provided
certain protections to the banks.
The basic function of clearing dept. arises when HBL account holder deposits
cheque of another back to collect its payment on his behalf or HBL account holder
gives a cheque to any other party concerning to any other bank. Usually a cheque is
sent through clearing is credited to the depositor account day after tomorrow. In this
regard there are two types of clearings
Inward Clearing
Outward Clearing
31
Inward Clearing
Inward clearing means all those cheques which are issued by account holders to
other parties and now these cheques are presented for payment (in term of amount
of cheque credit to presenter account).
Outward Clearing
Similarly when outside parties issue some cheque to our account holders, they
deposit these cheques in Cheque Receipts Department. Afterward these cheques, as
relating to other banks operating in country, are sent to clearing department or
further process. Clearing dept. sends these cheques to respective banks and after
realization of cheque, funds are credited to the account of respective customer. In
this regard there are two types of clearing
a. Intra city clearing
b. Intercity clearing
These cheques are sent through NIFT. Time for realization may differ in case of
remote areas.
32
19.
20.
HBL is considered to be a very sound bank in the financial circles. This is the bank
where customers can safely keep their money as long as they want.
In SWOT analysis the best strategies accomplish in organizations mission by:
Strengths
A skill or capability that enables HBL to conceive and implement its
strategies.
The officers of HBL are considered as one of the most able professionals in
the banking world.
I observed that HBL employees (except annoyed ones) interact with their
clients as if they are their personal friends and discuss about their problems
as their own.
HBL has got a reliable and easy to use internal computer system. HBL
maintained its data properly.
HBL has very good security system.
33
HBL is the larger commercial bank in Pakistan with the network of over 1466
domestic and international branches.
Being the pioneer of banking in Pakistan, HBL is the oldest and is the richest
in experience.
HBL focuses on consumer banking by lucrative schemes, products and
services suiting best to the wants and demands of the customers.
HBL has opened all its branches at commercial areas so that the customers
or clients face no problems in reaching to the bank.
The band is always on the look to improve its services both to the domestic
as well as overseas customers.
Human resources development and introduction of new technology towards
modern banking.
24 hours cash access and safe payment products for high value transaction.
Having potential to encounter the competitive environment in the market.
Veteran and experience private management group also involved in other
interests like, textile and cement industry.
Customer enjoys the services at the residential localities.
HBL enjoys deep relations with all most all industries in Pakistan
Weaknesses
There is week communication system in overall
branches.
Highest number of branches effecting the proper maintenance and difficulty
in providing same working environment at the each branch
Poorer system of recovery of the system is a threat to bankruptcy.
Lack of customer feedback.
Low job satisfaction.
Poor ATMs Service
Inconsistency in efficiency and working atmosphere due to the largest of
branches.
Sense of insecurity in the employees serving at low profitable branches due
to the downsizing.
34
Opportunities
Huge untapped market potential in consumer banking as well as Islamic
Banking
Opportunity for developing value added services combined with corporate
banking relationships, cash management services to large and medium sized
corporate clients.
Growing policies of government on business and commerce sector provide
HBL opportunities to take advantages of these policies to meet efficiently
with the business people to solve their problems with the instant cash and
financing facilities.
35
Habib Bank Limited provides opportunity to utilize its skills and efficiencies in
leasing business.
Threats
Prevailing
circumstances
increases
the
difficulties
the
organizations
21.
CONCLUSION
HBL is clearly the first choice of everyone who believes in qualitative approach of
banking an environment of highly responsible people. Bank is enjoying a healthy
market share and taste of good status in terms of its operative features and
customer support. HBL is clearly the best bank operating in Pakistan. Corporate
and commercial functions are distinguished features of HBL experiencing a good
reputation and reasonable mark up with respect to prevailing market mark up
with assurance of satisfaction and support. HBL has more customers as compare
36
to other banks, if they given proper attention to every customer then in few
years it will be the leading bank of the country (asset point of view)
RECOMMENDATIONS
There should be authority in every region which ensures efficient flow of
communication and its understanding.
HBL should immediately take brave steps towards the welfare of experienced
Habibians. In this regard NBP has set best example.
The management should try to decrease job insecurity among the
employees.
Training program should be started for internees and newly appointed
employees.
The bank charges high service charges as compared to the other banks, so
these should be lowered down.
Surveys must be conducted regarding customer satisfaction level and all
employees of this dept. should look forward to getting feedback whenever
possible.
Adding of value added features that offer competitive advantage is also a
means of avoiding customer dissatisfaction.
37