HBL IS A SERVICE ORGANIZATION

HBL established operations in Pakistan in 1947 and moved its head office to Karachi.
HBL first international branch was established in Colombo, Sri Lanka in 1951 and Habib
Bank Plaza was built in 1972 to commemorate the bank’s 25th Anniversary.

With a domestic market share of over 40%, HBL was nationalized in 1974 and it
continued to dominate the commercial banking sector with a major market share in
inward foreign remittances (55%) and loans to small industries, traders and farmers.
International operations were expanded to include the USA, Singapore, Oman, Belgium,
Seychelles and Maldives and the Netherlands.

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.

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.

How objectives are developed?

Objectives are basically branches of mission statement. As they flow from the purpose or
mission of the bank. They are developed after analyzing environmental trends and
measuring their internal . They are developed by mutual consensus

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SYMBOL OF HBL
Symbol depicts
Bismillah ============Islamic Culture and Values
Sword ============== Power
Lion================ As a symbol of strength
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.
( I )Humility ( ii ) Integrity ( iii ) Meritocracy (iv ) Teamwork ( v ) Culture of Innovation

CODES OF ETHICS

“A code of ethics is a formal statement that acts as a guide for making

decisions and acting within an organization.”

HBL works for code of ethics for the implementation of ethical business practices to
achieve effectively and efficiently.

MISSION STATEMENT

To make their customers prosper, their staff excel and create value for
shareholders

VISION

“Enabling people to advance with confidence and success”

VALUES
HBL values are the fundamental principles that define their culture and are
brought to life in their attitudes and behavior. It is their values that make
them unique and unmistakable.

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MANAGEMENT SYSTEM
In HBL there is an open management system

“An open management system is one that is influenced by and is continually

Interacting with its environment to seek new growth opportunities.”

ORGANIZATIONAL LEVEL

TOP MANAGEMENT MIDDLE LOWER LEVEL

MANAGEMENT MANAGEMENT

President Executive Vice President Assistant Vice President

Senior Executive Vice Senior Vice President Officers
President Vice President

ROLES PERFORMED BY DIFFERENT LEVEL OF

MANAGEMENT

TOP LEVEL MANAGEMENT

 To make day to day decisions to run the organization to make more profit.
 To implement policies approved by board of directors.
 To recommend different products / changes in policies / procedure for approval.

MIDDLE LEVEL MANAGEMENT

 To perform departmental activities.
 To supervise activities & direct the organizational source toward, achievement of
organizational goals.
 To supervise operational activities of branches.
 Monitoring / marketing the products.
LOWER LEVEL MANAGEMENT
 To render services to customers.
 To sell product to the customers.

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Products/ Services
Individual customers
HBL caters to all market segments, offering products that are as diverse as the people we
service. HBL remain resolute in their commitment to provide products that are
competitive and services that are exemplary. Whether establishing a new venture or
expanding an existing business, HBL team understands your banking needs and works
closely with you to realize your goals. HBL provides the following products and services
to meet its individual customer requirements
• Term Accounts:
• Current Accounts:
• Saving Accounts
• Foreign Currency Accounts
• Banc Assurance:
• Amaan - Retirement Plan:
• Debit Card:
• Phone Banking

Business Customers:
HBL offers a wide range of products and services for its business customers. They are
as follows
• Corporate banking
• Commercial Banking:
• Investment Banking:
• Islamic Banking:
• Cash Management
• E-Banking:
• Asset Management:
• Collection of Dividends:
• Purchase and Sale of Securities:
• Acts as an agent:
• Collection of Utility Bill:
• Locker Facility

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 • Acts as a referee
• Agency Services to Customers:Collection of Cheques:
PURPOSE OF HBL WHEN DEVELOP PLANS

In HBL both the purposes of planning has been used

PROTECTIVE purpose of planning is to minimize risk by reducing the uncertainties

surrounding business condition.
AFFIRMATIVE purpose is to increase the degree of organizational success.

MANAGEMENT BY OBJECTIVES (MBO)

Management by objectives (MBO) is a systematic and organized approach that allows

management to focus on achievable goals and to attain the best possible result from
available resources.
HBL applies MBO process to increase organizational performance by aligning goals and
subordinate objectives throughout the organization.
They believe ideally, employees get strong input to identify their objectives, time lines
for completion, etc. MBO include ongoing tracking and feedback in the process to reach
objectives.

MBO for next Organizational

operating Objectives
period begins Revised

Rewards Workers
Given Objective set

Performance
Progress Monitored
evaluated

MBO Process

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IMPLEMENTATION OF STRATEGY IN HBL
Strategy implemented in HBL in the following manner.

STEP1: Review organizational objectives

HBL’s objective is to make other customer prosper and to create value for their
stakeholders.

STEP2: Set worker objectives

To earn profit for the organization

STEP3: Monitor progress

Less complaint
Timely service is provided
Monthly revenue and cost

STEP4: Evaluate performance

Performance efficiency achieving his goals / targets.
His performance is appraised with regard to the targets allocate to staff

STEP5: Give rewards

Promotion
Special salary increase
Cash price

Tactical Planning
Tactical planning is the short range planning. HBL use tactical planning and they usually
develop their short range strategies .Goals of Tactical Planning of Habib Bank are:

 Integrate specific project lists for each directorate

 Establish short-term 6 month to 1 year goals
 Negotiate commitment and dependencies

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STRATEGIC PLANNING

Strategic planning is a long-range planning that focuses on the organization as a whole.

Long range planning is usually defined as a period of time extending about three to five
years into the future.

Managers may have a problem trying to decide exactly how far into the future they
should extend their strategic planning. As a general rule, they should follow the
commitment principle which states that managers should commit funds for planning only
if they can anticipate, in the foreseeable future; a return on that investment .for an
organization like HBL the importance of planning is not crucial but also vital to its
survival in the modern day economy. HBL well and truly recognizes the need for an
efficient and pragmatic planning tool.

In the light of economic conditions in Pakistan, HBL growth strategy aims at maintaining
short and long-term deposits to minimize the cost of funds.

HBL will continue to make changes to the operation of their business, with a
reorganization of the Consumer and Retail Banking businesses already underway. They
will also continue to focus on reducing and optimizing costs, making them a leaner
organization that can adopt to change much more quickly.

Enhanced IT will help HBL enhance and expand their product offering, upgrading their
operations in urban areas and continuing to meet the needs of rural areas that so many of
their competitors overlook

STRATEGY MANAGEMENT
Strategy management is the process of ensuring that an organization possesses and
benefits from the use of an appropriate organization strategy.
The strategy management process which HBL uses for the formation of their short / long
term strategies general consist of five sequential and continuing steps.

 Environmental analysis
 Establishment of an organizations directions
 Strategy formulation
 Strategy implementation
 Strategy control

HBL has environmental analysis and acts accordingly by pinpointing factors and to
counter the same timely.HBL as its strategy, targets the consumers (low /middle /high
income) by introducing the products. For example, it targets the middle income consumer
by introducing consumer products like Flexi loan/Visa Card and Balance Transfer

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Facility (BTF) and house loan/car loan products were introduced for high income
consumers.

CONCLUSION
HBL is clearly the first choice of every one who believe 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. Personal loan is a Distinguished
feature 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 to other banks, if they given proper attention to every customer
then in few years it will be the leading bank of the country.

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