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28204577 HBL Internship Report

28204577 HBL Internship Report

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Internship Report on HBL

F-8 Branch, Islamabad.
3/11/2010

Submitted in partial fulfillment of the requirements For the degree of Master of Business

Submitted To : Submitted By : Program : Enroll # :

Col. Imtiaz A. Mohar Khurram Jehanzeb MBA 01-122081-048

BAHRIA UNIVERSITY, ISLAMABAD CAMPUS

Contents
ACKNOWLEDGEMENT ........................................................................................................................... 5 1. 2. 3. 4. 5. y y y y 6. 7. 8. 9. 10. 11. 12. 13. y y y y 14. 15. y y 16. y y About HBL ........................................................................................................................................ 6 ORIGIN OF TERM BANK ................................................................................................................. 7 HISTORY OF BANKING IN PAKISTAN.................................................................................................. 7 History of HBL .................................................................................................................................. 8 Mission & Objectives........................................................................................................................ 9 Mission ............................................................................................................................................ 9 Vision............................................................................................................................................... 9 Our Brand ........................................................................................................................................ 9 Values .............................................................................................................................................. 9 Board of Directors .......................................................................................................................... 10 Management Forum ...................................................................................................................... 11 A Bird s Eye View ........................................................................................................................... 12 HBL at A Glance.............................................................................................................................. 13 Organizational Hierarchy ............................................................................................................ 14 Chain of command ..................................................................................................................... 15 Chain of command in Bank Branch ............................................................................................. 16 Human Resource Management .................................................................................................. 17 Recruitment and Selection ............................................................................................................. 17 Entry level programs ...................................................................................................................... 18 Experienced Professionals.............................................................................................................. 18 Selection Process ........................................................................................................................... 19 Services Offered by HBL ............................................................................................................. 19 Technology ................................................................................................................................ 20 Software used by HBL .................................................................................................................... 20 MISYS............................................................................................................................................. 20 INNOVATION.............................................................................................................................. 22 House Finance ............................................................................................................................... 22 Auto Finance .................................................................................................................................. 22

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y y y y y y y y y y 17. 18. y y y y y              

HBL Flexi Loan ................................................................................................................................ 22 Life Style ........................................................................................................................................ 22 HBL Rescue .................................................................................................................................... 23 For Personal Loans ......................................................................................................................... 23 For Credit Card Payments............................................................................................................... 23 Auto Cash (Debit/ ATM Card) ......................................................................................................... 23 Habib Bank icard as your Debit Card............................................................................................... 23 HBL iCard as your ATM Card ........................................................................................................... 24 HBL Fast Transfer ........................................................................................................................... 24 HBL E-Bank..................................................................................................................................... 24 HBL F-8 Markaz Branch .............................................................................................................. 24 Departments I worked in ............................................................................................................ 24 Operations ..................................................................................................................................... 24 Foreign Currency Department ........................................................................................................ 25 Advances Department.................................................................................................................... 25 Account Opening Department........................................................................................................ 25 Requirement for Account Opening ................................................................................................. 25 Current Account OR Demand Deposit: ........................................................................................... 26 SAVING ACCOUNT.......................................................................................................................... 26 Basic Banking Account ................................................................................................................... 26 Opening of an Account ................................................................................................................... 26 Allotment of Account Number ....................................................................................................... 26 Specialty of Account Number ......................................................................................................... 27 Cheque Receipts Department ........................................................................................................ 27 Fixed Deposits Department ............................................................................................................ 27 Remittance Department................................................................................................................. 28 Intra Bank Transfers ....................................................................................................................... 28 Interbank Transfer ......................................................................................................................... 28 Local Fund Transfers ...................................................................................................................... 28 Issuance of Banker s Cheque .......................................................................................................... 28 Clearing Department...................................................................................................................... 28

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.................................................................................................... 29 Main problems in HBL .................... 32 CONCLUSION & RECOMMENDATIONS........................................... 31 Opportunities.................................................................................................................................... Inward Clearing............................................................................................................................................ 30 Strengths ............................................................................................................................................................................................................................ 33 CONCLUSION ..........................................................................  19......................................................................................... 20....................................................................... 30 Weaknesses ................................ 33 RECOMMENDATIONS .............................................................................................................................................. 33 ACKNOWLEDGEMENT 4 ..................................... 31 Threats ...........................................................................     21.............................. 30 SWOT ANALYSIS OF HBL .......... 29 Outward Clearing .......................................................................................................................................

information. 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 am very thankful to the honorable internship incharge. courage and enthusiasm needed to write and complete this report. Khurram Jehanzeb 5 . I also know how to face the problems and how to find out the ways for their solutions. advice and suggestions that I needed which contributed importantly to this report. It was pleasure for me to be sent to The HBL. Who gave me the strength. Islamabad. patience. The preparation of this report was a massive undertaking but the highly competent and experienced bankers of HBL F-8 Markaz Branch. F-8 Markaz Branch. Provided me with all assistance.ACKNOWLEDGEMENT First of all I am thankful to ALMIGHTY ALLAH . I learnt a lot from this training program and this would guide me a lot while selecting my career. I have a debt of gratitude to all my teachers who taught me throughout my academic career.

Seychelles. It was nationalized in 1974. Kenya. Singapore. France (Paris). 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. About HBL HBL is the prime Bank in country. Scotland (Glasgow). Bahrain. Oman. Sri Lanka. They acquired 51 percent of shares of HBL. Mauritius. Currently HBL is having customer base of over 6 million Pakistan International 6 . Maldives. Egypt. Turkey (Istanbul). Lebanon (Beirut). Sudan. established in 1941. but on 26th February 2004 it was privatized by Government of Pakistan and taken over by Aga Khan Fund for Economic Development (AKFED). It internationally operates in countries including USA (New York). Afghanistan. Nigeria. Manchester. Kuwait. Indonesia and Australia. Bangladesh. Hong Kong. UAE. Birmingham). having its registered head office in Karachi. Belgium (Brussels).1. United Kingdom (London. Iran. Netherlands (Rotterdam).

Muhammad Ali Jinnah issued the order for the establishment of State Bank of Pakistan on 1st of July 1948. 1949 was fixed as the date on which independence was to take effect. pays it out when required.198 million. 1948 due to administrative and technical difficulties involved in immediately establishing and operating a Central Bank.880 million whereas the advances were Rs. deals with money and credit. It is therefore. not possible to decide as to which of the opinion is correct. etc.2. National Bank of Pakistan Habib Bank Limited 7 . In 1949. The Pakistan Banking Council prepared banks amalgamation schemes in 1974 for amalgamation of smaller banks with the five bigger banks of the country. total number of banks in Pakistan were 38 out of these the commercial banks in Pakistan were 2. firms and companies at a lower rate of Interest and gives at higher rate of interest to those who need them. for no record is available to ascertain the validity of any of the opinions "A financial institution. ORIGIN OF TERM BANK It has not so far been decided as to how the word µBank¶ originated. which were Habib Bank Limited and Australia Bank of India. It accepts Deposits from individuals. The total deposits in Pakistani banks stood at Rs. These five banks are as under: 1. exchanges currency. There were 14 Pakistani scheduled commercial banks operating in the country on December 1973. HISTORY OF BANKING IN PAKISTAN The partition plan was announced on June 3. makes loan at interest. National Bank of Pakistan was established. 2.´ 3. which means µjoint stock fund¶. It started with six offices in former East Pakistan. Some authors opine that this word is derived from the words µBancus¶ or Banque¶ which mean a bench. Other authorities hold the opinion that the word µBank¶ is derived from the German word µBack¶. It was decided that the Reserve bank of India should continue to function in the dominion of Pakistan until September 30. At the time of partition. The Governor General of Pakistan. 1947 and August 15.´ ³A financial establishment which uses money deposited by customers for investment.

The first branch of HBL started functioning on 30th August. The confidence of the people had been shaken by the un-friendly environment and till the time peace had not been restored. 2. History of HBL Habib Bank Limited was established by Mr. Ismail Habib on August 25. the areas which now constitute Pakistan were producing only agricultural products raw material for indo-Pak subcontinent. The Banks included those having their registered offices in Pakistan. the Hindus residing in the territories now comprising Pakistan started transferring their assets to India and vice versa. Many investors have already invested and still many more to come. Government went for privatization of financial institution. transferred them to India in order to bring a total collapse of the new state. 4. 1942 on the desire of Quaid-e-Azam Muhammad Ali Jinnah. Partially no industries were there to process the raw material. Due to its remarkable growth. It was the first Muslim bank of sub continent. HBL and the Australia Bank. father of the nation.5 million. banking sector of Pakistan has become very attractive for foreign investors. coinage. exchange rate etc be settled between India and Pakistan and the Indian 8 . to run its own Banking system immediately. In 1942. people would naturally have been interested in other things. currencies. Quaid-e-Azam first of all opened his personal account. The circumstances were completely uncertain. 4.e. There were 19 non-Indian foreign Banks which were engaged in the export of crops from Pakistan with only two Pakistani Banks i. The nation was quite young with extreme scarcity of resources and these definitely added to the difficulties of the govt. United Bank Limited Muslim Commercial Bank Limited Allied Bank Limited In early 90¶s after the failure of nationalization policy. 1942 at Muhammad Ali Road Bombay.3. It was established with paid up capital of Rs.. therefore the raw material was exported from Pakistan. Habib family migrated to Pakistan and later on shifted the Bank's Head Office from Bombay to Karachi on 7th August. 1947. to play its pivotal role in the development of this newly born country. 5. 1947 just one week prior to independence. It had been decided that the Reserve Bank of India would continue to function in Pakistan so that the problem of demand and time liabilities. In last ten to fifteen years banking sector in Pakistan has shown tremendous growth. on the desire of Quaid-e-Azam. Following the announcement of the independence plan in June. At the time of independence.

paid salaries to the employees of all Govt. by provided finance and other facilities. helped in the establishment of State Bank of Pakistan which the Quaid-e-Azam inaugurated on July 1st. At a time when this newly born country was at whirlwind of crises. Meritocracy 9 . HBL after partition opened its branches throughout Pakistan to provide finance and other facilities to the business community. Mission & Objectives y Mission ³To make our customers prosper. Customer Focus E.D. The Bank helped handsomely in the construction of WARSAK DAM PROJECT. Progressiveness D. Our values are defined below: A. y Values Our values are the fundamental principles that define our culture and are brought to life in our attitudes and behavior.75 core in forward and subscribed heavily to the government of Pakistan to the tide over the crises. In association with HBL. WAPDA.A. it was HBL which fulfilled generously the financial needs of all its sectors. sponsored Pakistan Finance Corporation Limited for financing of cotton. the Govt. 1948. our staff excel and create value for shareholders´ y Vision ³Enabling people to advance with confidence and success´ y Our Brand Our brand identity is the outward expression of what we stand for as an organization. 1948. Integrity C. Again due to certain differences between Indian Pakistan.Notes would continue to be legal tender in Pakistan till 30th September. 5. It is our values that make us unique and unmistakable. This is summarized in our vision. Excellence B. mission and is supported by our values. departments. the India government withheld Pakistan's share of Rs. & K.

Board of Directors 10 .6.

Management Forum 11 .7.

 Pakistan s Largest Banking Network . A Bird s Eye View Year 1941 1942 1943 1946 1947 1966 1974 1991 1997 2004 2006 Commenced operation. Declared best Bank. Silver Jubilee. HBL was Privatized.8. Largest Private Commercial Bank in Pakistan with branch network of 1477 branches within Pakistan and 65 international branches in 26 Countries. Important Event Deposits reached 20 million rupees. Bank was Nationalized. Moved operations from Bombay to Karachi on the Quaid s Request. Golden Jubilee HBL was Reorganized.  The Best Emerging Market Bank in Pakistan  HBL among Top 500 Global Financial Brands 2008 2009 12 . HBL head office transferred to Pakistan. First Banking Scheme Started for the Muslim Youth.

545 183.140 517.681 5469 7146 13833 434. ( in millions) PROFIT (PRE-TAX) Rs.291 654.654 258.2 6212.013 1516 1473 2003 2004 2005 360.8 63. ( in millions) BRANCHES 194142 1947 1973 24.9.0 15.652 1425 1477 2008 437.1 1.531 228.4 27.0 10.0 2 266.5 113.622 16254 696.8 731.799 1084 1904 2001 2002 283.432 354.8 120680.2 11679 21 749 1974 1990 8592.306 316.751 403.712 1464 13 . (in millions) ADVANCE S Rs.893 1470 1469 1425 2006 2007 459.225 167.0 321. HBL at A Glance Operational & Financial Aspects Year DEPOSIT Rs.3 0.4 81140.098 74.7 4005.0 7579.481 349.648 404.9 211.182 167.932 486.523 2224 4088 333.445 328.982 528. ( in millions) ASSETS Rs.629 432.980 20532 10199 590.

financial institute & Project Finance 14 .10. Organizational Hierarchy Chairman President Board of Directors SEVP International Operations SEVP Finance. Audit & Administration SEVP Corporate Banking & Treasury SEVP Asset Remedial Management SEVP Retail Banking & Information Technology SEVP Credit Policy SEVP Corporate Banking.

11. Chain of command Chairman President Board of Director Member Executive Board Regional Chief Zonal Chief Branch Manager Operations Manager Bank Staff 15 .

Chain of command in Bank Branch 16 .12.

During 2008. There is no budget limit for Training and Education at Habib Bank. skill development clinics and seminars in the disciplines of Service & Attitude. 529 courses.T. HR Group aims to maintain and further improve the service-oriented culture and to make employment not only satisfying but also enjoyable. improvement in staff training and hiring professionals and MBAs at entry-level management. In doing so.13. 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. Treasury & Trade Finance.Human Resource Management HBL is an organization that provides opportunities for its staff to have a challenging and rewarding long-term career. y Recruitment and Selection Our Recruitment Meritocracy is an integral part of HBL¶s recruitment policy. This ensures openness and transparency. workshops. Under the umbrella of its Management and Organization Development Division (MODD) its Management Development Institute (MDI) with its three fully equipped chapters at Karachi. 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 has been restructuring and redesigning the overall structure of the organization. which includes rationalization. Our merit-based recruitment process incorporates the principles of equal opportunity and leads to the appointment of the most capable candidate. Credit & Finance. Management & Communication. HRG therefore recognizes the need to proactively invest in staff training and develop courses on a regular basis.It believes that creativity and innovation comes from talent. Global/ Domestic Banking Operations and on other diverse subjects were conducted by In / Ex-House professionally skilled. knowledge and experience and it is HBL¶s 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. To this end the Human Resource Group (HRG) encourages and motivates its employees to excel in the responsibility that they have in the organization . qualified and certified faculty and industry experts for 10233 people of senior / middle line management & staff carving 1334 days training days. I. cutting down the decision layers. The merit principle at HBL aims to identify the most suitable person for the job assessed on the basis of the following parameters: 17 . Market Research & Selling. allowing greater confidence in the outcome of the selection process. & e-Banking.

Our dynamic work environment offers diverse opportunities to stimulate ongoing employee needs and supports career enhancement opportunities. 18 .‡Educational Background ‡Skills and Competencies ‡Abilities and Attitude ‡Experience ‡Interpersonal / Communication skills y Entry level programs It includes y y y y Management Trainee Cash Officer Management Associates Internship y Experienced Professionals We recruit experienced professionals in all areas of the bank and encourage the creation and pursuit of innovative ideas.

y Selection Process The diagram below represents the process on which we base our selection.         Services Offered by HBL Habib Bank offers the following services to the customers: Commercial Banking Corporate Banking Investment Banking Global Treasury Islamic Banking (referred to Modaraba) Cash Management Asset Management Zarai Banking 19 . This gives an overview to potential candidates as to the steps involved in becoming a part of the HBL team. 14.

supervision 20 . deposited. y Equation system Clearing inward or out ward. One type is the online branches whereas other type is batch branches (offline branches). There are two types of branches come under HBL network. special or intercity clearing. Accounts opening. y Technology Software used by HBL HBL is enjoying the competitive advantage of vast operational area. So obviously HBL uses two types of different software.15. y MISYS MISYS (online) perform two type of system y Cashier system This system use only cash transaction like cash withdraw. LFT etc. Remittance. All batch branches use SIMEX software whereas online branches use MYSIS.

21 .

 Financing from Rs. a lease product.000.000.10. It is basically meant for those in service people who earn more than Rs. Salient features of HBL LIFESTYLES:  Loans for salaried/ self Employed individuals or business persons  Low Mark-ups leading to affordable monthly installments. 3. designed to offer you an economical way for owing the car of your choice. Some characteristics are:        Lowest Down Payment Lowest monthly rentals Fixed repayment tenures of 36. 5. Since the introduction of this scheme Rs. INNOVATION y House Finance HBL provides the facility of house finance.500.000 per month.000. 200. y HBL Flexi Loan HBL had introduced a unique loan system for the middle income serving people in various public sectors.000 22 . y Life Style Habib Bank Lifestyle is an economical financing scheme for Household Appliances and consumer Electronics. The Financing available for:  Purchase of house  Home improvement and renovation  Self Construction y Auto Finance Habib Bank Auto Finance.16.000 to Rs. All locally assembled new cars can be financed through this scheme.48and 60 months. This loan meets the petty requirements of the salaried class. 6 billion is advanced throughout the country. Lowest Processing charges Insurance premium rates as low as 3% Worldwide personal accidental insurance coverage of up to Rs. The maximum limit of this loan is Rs.

1.24 and 36 months Low Processing charges Full credit Life Insurance Free Doorstep Delivery of items Available throughout Pakistan from over 330 designated Habib Bank Branches y HBL Rescue (Balance Transfer Facility) HBL provides the facility to transfer your personal loan and credit card liabilities.000. at the lowest rates ever. 23 .000 Choice of 12.up Quick processing Full Credit Life insurance Available from over 400 designated branches throughout Pakistan y For Credit Card Payments       Maximum loan up to Rs.1. exact purchase amount is deducted from your account.36.24.000 Lowest mark-up-compared to any credit card Choice of 12.48 and 60 months for payback Quick processing Full Credit Life insurance Available from over 400 designated branches throughout Pakistan y Auto Cash (Debit/ ATM Card) Habib BANK icard is used for dual purposes-a debit card and an ATM card and provides you the direct access to cash in your account. y For Personal Loans The salient features of HBL Personal Loan are       Maximum loan up to Rs.     Fixed tenures of 6.48 and 60 months for payback Lowest Mark.18.12.24. y Habib Bank icard as your Debit Card When payment is made at any merchant location using the card .36.000.

Remittances Dept. It is also the main branch of Habib Bank in Islamabad. designed to be user friendly. manager operations had introduced me with Mr. PIN Change etc. 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. The day I reported in branch (27th July). HBL F-8 Markaz Branch It was an honor for me to get training in HBL CDA Civic Centre. Mr. quick and easy payment option  Nationwide acceptability at various merchant locations displaying ORIX Network logo  Free of charge debit card transactions y HBL iCard as your ATM Card  Offer a number of facilities such as cash withdrawal. Fixed Deposits Dept. assures secured access and confidentiality. It is the largest retail banking branch in Pakistan with deposits of 22 billion rupees. y HBL E-Bank It provides services via a dedicated communication link on the internet. 17. This service. The E-Banking services provide anytime. secure. y HBL Fast Transfer This service provides a unique solution for overseas Pakistanis to send money back home in a swift and convenient manner. Funds transfer between accounts. Mini Statement. anywhere banking to all 6 million customers. 18. Convenient. Illyas with mutual consultation assigned me seven departments which are as follow y Operations      Cheque Receipts Dept. 24 .  Accepted at all 1LINK and MNET ATMs across the Country. Departments I worked in During the six week internship as I had to work in different department. Illyas Ahmed experienced bank employee and told me that he would act as internship coordinator. Clearing Dept. Account Opening Dept. Balance Inquiry.

partnership firm or JSC) who wants to initiate relations or to avail the services of bank has to open an account. (Annexure)Before opening an account there are certain requirements. These are  Current Account  Savings Account  Basic Banking Account  25 . y Requirement for Account Opening There are different accounts that can be opened with a bank. It is known as Gateway to the bank as anyone (any individual. For opening of account a form is given which includes all necessary requirements needed for further process.y Foreign Currency Department y Advances Department In upcoming lines I will discuss departments one by one in detail. This form also includes term and conditions of account holders and all details of bank and customer relationship. This is why it is known as gateway to the bank. y Account Opening Department Account opening department is one of the most important departments of a bank.

000/-. One thing is very important for understanding that even going through the above mentioned procedure successfully. There is no interest paid by the bank on this sort of account. Who can draw money any time from the bank this is the main function of this account. medium and long term saving plans.000 in this account. the procedure of account opening starts. the current is mainly open for the business man. Current Account OR Demand Deposit: Current Account of Habib Bank is open with 20. The only precaution to operate this account to make sure that balance should not be zero or negative. any Amount less than 20. it does guarantee the opening of account. bank officer has to go through five different windows of MYSIS than the account holder information is sent for verification. Each set has its own unique characteristics. It is similar to current account as no interest is paid. usually termed as short. This is why account is inactive for its first two days. The function of the saving accounts is to save the surplus money of the people by giving them good interest rate. (Annexure 1)  Basic Banking Account This account is basically introduced to cater needs of student and salaried persons. 5.  SAVING ACCOUNT Saving accounts are opposite of current account.the bank will charge 5% on the remaining balance.000/-. To open an account of any type. The saving Account of Habib Bank is started from 20. These sorts of accounts are provided to encourage savings habits. 1) 2) 3) 4) 5) ANC stands for Add New Customer CIM stands for Customer Additional Information Maintenance CAA stands for Customer Account Address OCA stands for Open Customer New Account ZYC stands for Know Your Customer  Allotment of Account Number After going through the procedure above mentioned an account number is given to the customer. 26 .000/. account holder can enjoy unlimited transaction facility. any Amount less than bank will make charges of 55 per month against the balance. After allotment of account number it remains block for two days as the verification process is in process in these two days. We can say that it is an aspect of corporate social responsibility of bank. There will not be any deduction or penalties in case of minimum balance. There are different classifications of saving accounts. With minimum balance of Rs.  Opening of an Account When all requirements are fulfilled by the applicant.

afterward eight digits are customer account serial number and last two digits indicates type of account. HBL) are termed as online transfer provided that both concern branches are online. (Annexure) 27 . Cross stamps are engraved in front of instrument received to make it ownership of bank. The first four digits are code of HBL branch where account is going to be opened. For example 1416 75000254 03 Branch Code Account Serial # Type of account  Cheque Receipts Department It is a helping department for clearing as well as Remittance department. These receivables are than further classified as under     Interbank transfers Intra bank transfers Online transfers Travelers cheques All those cheques which are of same branch or bank (e. When any customer brings any sort of negotiable instrument it has to be deposited in cheque Receipt Dept. 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     ATM Forms issued and Received (Annexure) Draft cancellation(Annexure) Complaint forms Phone banking (Annexure)  Fixed Deposits Department Fixed deposits are those which can be withdrawn only after the maturity period. Specialty of Account Number Fourteen digits account number is allotted to the HBL account holder.g. The shorter the period of deposits. In this type of deposits the Bank allows high rates of interest depending on the time period of deposits. the less will be the interest and vice versa.

funds are transferred immediate by using online system and available for usage.  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). he can transfer funds by LFT. This is known as interbank transfer. banker s cheque is issued.  Issuance of Banker s Cheque Bankers Cheque is recently introduced by HBL to replace old concept of pay order and demand. 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. Remittance Department As it is clearly depicts from its name. the law has provided certain protections to the banks.  Local Fund Transfers If any HBL account holder wants to credit his account without being physically going to the parent branch. A large part of this work is carried out through the bankers clearing house. funds are transferred immediate by using online system and available for usage. Earlier Pay Order (PO) was made for local funds movement whereas Demand Draft (DD) to make payments in outside region. This step was undertaken to make banking operations more customer friendly as well as brought simplicity in banks operations. (Annexure)  Clearing Department Every bank performs both as a paying as well as collecting functions on behalf of its customer. this department is used to remit amount from one place to another. It is however an important function of crossed cheques. Customer has to fill Remittance form which includes all relevant information. But now for all customers. This department performs following functions     Intra bank transfer Interbank transfers Local fund transfers Issuance of bankers Cheque  Intra Bank Transfers When an account holder presents a cheque of another party who is also the account holder of same branch. 28 . The issuance procedure is same as earlier. Remittance department also performs the services of LFT. As the collecting banker runs the certain risks in receipt of their ownership. This is known as intra Bank transfer.

as relating to other banks operating in country. are sent to clearing department or further process. Intercity clearing These cheques are sent through NIFT. 29 . Intra city clearing b. Time for realization may differ in case of remote areas.  Outward Clearing Similarly when outside parties issue some cheque to our account holders. they deposit these cheques in Cheque Receipts Department. 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. Clearing dept. funds are credited to the account of respective customer.The basic function of clearing dept. Afterward these cheques. sends these cheques to respective banks and after realization of cheque. In this regard there are two types of clearings  Inward Clearing  Outward Clearing  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). In this regard there are two types of clearing a. Usually a cheque is sent through clearing is credited to the depositor account day after tomorrow.

 There is also over staffing in HBL moreover inefficient individuals are in credit card department. SWOT ANALYSIS OF HBL HBL is considered to be a very sound bank in the financial circles. In SWOT analysis the best strategies accomplish in organization s mission by:    Exploiting opportunities and strengths.  There is huge difference in approaches of experienced staff & young staff  Imported upper level management  Experienced staff is frustrated mainly because of two reasons  Salaries have not been revised from last 10 years  Experienced Habibians are neither satisfied by the privatization of bank nor they were taken into confidence at that times 20. Following is a list of SWOT of HBL  Strengths  A skill or capability that enables HBL to conceive and implement its strategies.  HBL has got a reliable and easy to use internal computer system. HBL maintained its data properly. Main problems in HBL During my internship I found some major problems in HBL overall management. 30 .19.  There is noticeable communication gap between upper level management and operational staff. This is the bank where customers can safely keep their money as long as they want.  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.  The officers of HBL are considered as one of the most able professionals in the banking world. Neutralizing its threats and Avoiding its weaknesses.  HBL is the larger commercial bank in Pakistan with the network of over 1466 domestic and international branches.  HBL has very good security system.

 Lack of customer feedback.  Human resources development and introduction of new technology towards modern banking. Being the pioneer of banking in Pakistan. textile and cement industry.  Customer enjoys the services at the residential localities.  Low job satisfaction.  24 hours cash access and safe payment products for high value transaction.  Having potential to encounter the competitive environment in the market.  HBL enjoys deep relations with all most all industries in Pakistan  Weaknesses  There is week communication system in overall HBL as well as inside 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. 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.  HBL focuses on consumer banking by lucrative schemes.  The band is always on the look to improve its services both to the domestic as well as overseas customers. legal and socio-cultural pressures  .Lack of professionalism in the branch employees mostly.  Sense of insecurity in the employees serving at low profitable branches due to the downsizing.  Opportunities  Huge untapped market potential in consumer banking as well as Islamic Banking 31 .  Victim of political.  Poor ATM s Service  Inconsistency in efficiency and working atmosphere due to the largest of branches.  Females feel uneasy in an environment among the male workers.  Veteran and experience private management group also involved in other interests like. HBL is the oldest and is the richest in experience.

 Habib Bank Limited provides opportunity to utilize its skills and efficiencies in leasing business.  Shortage of trained and specialized staff at lower executive and officer levels  The threat of inconsistency and government policy regarding to business and economics sectors. HBL has an opportunity to improve in technology.  HBL also has an opportunity to expand its new technological advancement more effectively like. cash management services to large and medium sized corporate clients.  Threats  Prevailing circumstances increases the difficulties the organization s achieving high performance.  Government is supporting very bold steps of bringing and promoting IT in Pakistan.  Further reduction in intermediation costs possible.  Growing global technological advancement. services such as cross border / offshore financing for corporate customers can be enhanced. 32 .  Strict regulation by government over credit facilities to the customers as well as to meet the prudential.  Due to efficient and veteran management group.  Consolidation in the banking sector resulting in increased competition. HBL can also improve and expand its foreign operation successfully.  Customer feedback on different products and accounts has really improved the bank performance and encourage the atmosphere for other future policies. phone-banking and internet banking facilities in order to serve the customer more efficiently. specially political and regional situation which makes the environment uncertain.  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. Opportunity for developing value added services combined with corporate banking relationships. if HBL takes the initiatives.  Large international network which principally focuses on trade finance with Pakistan can be utilized to tap trade activities in other markets. specially  E-banking facility is also a new opportunity which is a flourishing business in foreign countries and can also be here. with improving technology. In addition.

33 . HBL has more customers as compare to other banks.  Surveys must be conducted regarding customer satisfaction level and all employees of this dept. 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. Bank is enjoying a healthy market share and taste of good status in terms of its operative features and customer support. In this regard NBP has set best example.  The bank charges high service charges as compared to the other banks. Loss of confidence of overseas customers due to freezing of accounts. CONCLUSION & RECOMMENDATIONS CONCLUSION HBL is clearly the first choice of everyone who believes in qualitative approach of banking an environment of highly responsible people. so these should be lowered down. HBL is clearly the best bank operating in Pakistan. 21.  Also the increasing operation of private banks.  The management should try to decrease job insecurity among the employees.  Highly attractive and advance services by foreign banks to their customers.  Training program should be started for internees and newly appointed employees.  Foreign banks are flourishing in field of consumer financing.  Adding of value added features that offer competitive advantage is also a means of avoiding customer dissatisfaction. should look forward to getting feedback whenever possible.  HBL should immediately take brave steps towards the welfare of experienced Habibians. 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.  Facing more competition by foreign banks in the market.

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