1 INTRODUCTION OF HBL

HBL was the first commercial bank to be established in Pakistan in 1947. Key areas of operations

encompass product offerings and services in Retail and Consumer Banking. HBL has the

largest Corporate Banking portfolio in the country with an active Investment Banking arm. SME

and Agriculture lending programs and banking services are offered in urban and rural centers.

HBL is currently rated AA (Long term) and A-1+ (Short term) and has a balance sheet size of

over USD 11 billion. It is the first Pakistani bank to raise Tier II Capital from external sources.

1.1. Brief History of HBL

HBL at its present state has a long and rich history of deeds and sacrifices. All this has been

possible on the account of sustained efforts. On 25th of August 1941, Habib Bank inaugurated

its operations with the bank’s first branch in Bombay. In 1947 Karachi saw its first commercial

bank of the newly formed Islamic Republic of Pakistan, when the bank shifted its head office

there. Throughout the decades, HBL has held the mantle of a dynamic leader, by adding value

to the lives of its customers. 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. On June

13, 2002 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.

It was HBL that introduced products such as Credit Cards, ATMs, Travelers Cheques, etc., to
the Pakistani market. We at Habib Bank cater to the needs of millions with our quality products
& services. Today, Habib Bank is truly the bank of the people, providing its customers
convenience and satisfaction all over the world. Habib Bank Plaza, the tallest building in Pakistan,
is the proud symbol of HBL’s leadership in Pakistan’s corporate arena.

1.2 OBJECTIVES OF HBL

Following are some of the main objectives of HBL.

 To earn profit for the Bank itself and maximize its shareholder’s value.
  To provide solutions for multiple requirements of clients of diverse

 financial nature.

 To manage with the changing trends of the modern day financial market.

 To be a diversified bank by offering all basic consumer services along with

 specialized services

 Honest and ethical conduct, including ethical handling of actual or apparent

 conflicts of interest between personal and professional relationship.

 To provide employment opportunities to people.

 To help in development and industrialization of the country.

1.2.1 CORE VALUES OF HBL

HBL is firmly grounded with a corporate philosophy that incorporates five solid values
which each individual associated with the bank abides by.

Excellence:

This is at the core of everything they do. The markets in which they operate are becoming increasingly

competitive, giving their customers an abundance of choice. Only through being the very best - in terms

of the service they offer, their products and premises - can they hope to be successful and grow.

Integrity
For them, integrity means a synergic approach towards abiding their core values. United with the
force of shared values and integrity, they form a network of a well-integrated team.

Meritocracy
At every level, from selection to advancement, they have designed a consistent system of human
resource practices, based on objective criteria throughout all the layers of the organization. HBL
is therefore, able to achieve a specific level of performance at every layer of the organization.

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

Progressiveness
They believe in the advancement of society through the adoption of enlightened working
practices, innovative new products and processes, and a spirit of enterprise.

1.3 ORGANIZATION STRUCTURE

Any organization needs a structure, which provides a framework for successful operations. The operation

of an organization involves a number of activities, which are related to decision-making, and

communication of these decisions. These activities must be well coordinated so that the goals of the

organization are achieved successfully