INTRODUCTION

1.1) BACK GROUND OF STUDY

In a modern economy, banks play a very important role in the economic development of a country. Bank is a financial intermediary between the borrowers and lenders. It borrows from one party and lends to another and the difference between the terms in which it borrows and lends is the source of its profit. The banks influence the economic activity in two ways. Firstly the lowering of interest rate makes the investment more profitable and an increase in the interest rate discourages investment. Secondly, the making of capital available to the investors increases investment, production and trade in the economy and vice versa. The financial sector in Pakistan can be grouped into banking and non-banking financial institutions (NBFIs). Banking institutions include large public sector scheduled banks; private sector banks and foreign banks while NBFIs include development finance institutions (DFIs), private sector investment banks, leasing companies modarabas and mutual funds. In 1974, under the Banks (Nationalization) Act 1974, 13 commercial banks were nationalized and were merged/amalgamated into five commercially viable units i.e. Habib Bank Limited, National Bank of Pakistan, United Bank Limited, Muslim Commercial Bank, and Allied Bank Limited on the basis of their respective strengths and weaknesses. Pakistan Banking Council (PBC) was set up in 1974 to look after the administrative matters of nationalized commercial banks and co-ordinate their activities within the framework of basic policies laid down by the State Bank

1.2) BANKING SECTOR OF PAKISTAN Public Sector Banks

The large public sector scheduled commercial banks, namely National Bank of Pakistan, and First Women Bank are owned by the government of Pakistan (GoP). Although other banks, Habib bank limited, Muslim Commercial Bank, Allied Bank Limited and United bank Limited were privatized but still GOP has significant stakes in them. These six large banks are dominant in terms of total number of branches, deposits and advances, collectively accounting for 72% to 74% of total deposits and advances.

Private Sector Banks

Private sector banks are relatively new compared to public sector banks. These banks are still very small in terms of branch network and level of operations. They focus on very selective market segments where they are quite successful. Despite a lower profile in total deposits and advances, these banks account for 22% of the total profitability of the sector.

These banks are Askari Commercial Bank, Bank Al Falah Limited, Bolan bank Limited, bank Al- Habib limited, Faysal bank Limited, KASB bank Limited, Meezan bank Limited, Metropolitan bank Limited, Prime Commercial bank Limited, PICIC Commercial bank Limited, Saudi-Pak commercial Limited, Soneri bank Limited and Union bank limited.

Foreign banks
Owing to the inefficiencies of the public sector scheduled banks which stem from their nationalization in the 70s, the relatively lower standing of the private sector banks and the dollarisation of the economy, foreign banks have been able to perform extremely well by exploiting gaps in the local banking sector. There are 16 foreign banks operating in the country: ABN AMRO, Al-Baraka Islamic bank, American express bank Limited, bank of Tokyo Mitsubishi Limited, Bank of Ceylon, Credit Agricole, Indosuez, Citi bank N.A, Deutsche bank A.G, Doha bank, Habib bank A.G Zurich, Hong Kong & Shanghai Banking Corporation Limited, International Finance Investment & Commerce bank Limited, Mashreq bank P.S.C, Oman International Bank S.O.A.G, Rupali bank Limited, Standard Chartered bank. The foreign banks have a strong presence in all the major cities and are targeting high net worth individuals and blue chip companies. Their strategy is quite successful as they account for 34% of total sector profits, despite having only 5% of deposits and 6% of advances.

Micro Finance banks

Currently there are two micro finance banks are operating in Pakistan. One is Khushhali bank and other is the first micro finance bank Ltd.

OVERREVIEW OF HABIB BANK LIMITED

SNAPSHOT
Habib Bank Limited is one of the largest commercial bank of Pakistan. It accounts for a substantial share approximately 20% of the total commercial banking market in Pakistan with a network of more than 1400 branches including domestic and 55 overseas branches in 26 countries spread over Europe, the Middle East, Far East, Asia, Africa and the United States. 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 HBLs leadership in Pakistans corporate arena.

MISSION STATEMENT
To be recognized as the leading financial institution of Pakistan and a dynamic international bank in the emerging markets, providing our customers with a premium set of innovative products and services, and granting superior value to our stakeholders shareholders, customers and employees

VALUES OF HABIB BANK LIMITED

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

Humility

Integrity

HBL
Meritocracy Team Work Culture of Innovation

Humility
HBL encourage a culture of mutual respect and treat between team members and customers with humility and care.

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

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

Team Work
Teamwork becomes a cohesive and unified force, to offer the customer, a level of service beyond their expectations. This force is derived from participative and collective endeavors, a common set of goals and a spirit to share the glory and the strength to face failures together.

Culture of Innovation
HBL aim to be proactively responsive to new ideas, and to respect and reward the agents, leaders and creators of change.

HISTORY
The decade of 40s was not very fortune for the establishment of a banking company. History is witness to the failure of 150 banking companies established during the period and some carried the big names of Ram Krishna Dalmia and their likes. In such a period the successful establishment of a bank by Muslim sponsors was nothing less than a miracle. The inception of Habib Bank, in Bombay on August 25, 1941, heralded the dawn of a glorious era, for the Muslims of the sub-continent. The bank began with a paid-up capital of Rs2.5 million. The following balance sheet of HBL was prepared in 1942. Figure was as follows: Branches Deposit Advances profit 02 24 Million 10.3 Million 0.4 Million 4

In 1945deposits were doubled to Rs.57.3 million. In 1947, deposits increased to Rs.260 million. The banks steady growth not only signified the implicit confidence and trust placed in the integrity and dedication of the Habib family but was a victory and confirmation of their vision, foresight, acumen and expertise in the field of banking. The four Habib brothers, Mr. Ahmad Habib, Dawood Habib, Mohammad Ali Habib and Ghulam Ali Habib in 1941, formed Habib Bank. Mr.Dost Muhammad who was the first General Manager of the bank first headed it. On this untimely demise in 1948, he was succeeded by his younger brother Mr. Razzaq H. Mohammad, who remained President until the bank was nationalized in 1974 while Mr. Rashid D. Habib, son of Late Mr. Dawood Habib was its Managing Director. About sixty years back, it was indeed considered a daring venture on the part of a Muslim business family to think of setting up a bank. Muslims were then considered unsuited to the banking profession. Leaving aside the non-Muslims, even Muslims were reluctant to trust their own banks.

Tribute of Quaid-e-Azam Muhammad Ali Jinnah

Mr. Jinnah responds confidence in the bank by not only opening his personal account but also by entrusting the collection of relief fund for Muslims in 1947. I have opened an account with Habib Bank Limited, Chandni Chowk in the name of Muslim League Bihar Relief Fund for the sufferers and distressed Muslims of communal riots of Bihar and Delhi. I appeal to the Muslims all over the country to contribute generously and send contributions to Habib Bank. It was the implicit trust and support that Habib bank achieved its privileged position of becoming the first Muslim bank of sub- continent. The consequent appointment of Mr. Muhammad Ali Habib, one of the banks pioneers, as his advisor on financial affairs of the new state, is also an important milestone in the history of Habib Bank.

Habib Bank and Pakistan

Again, due to certain differences between the Governments of India and Pakistan, when the transfer of funds was withheld in 1948 by India, Habib bank readily came forward and subscribed heavily to the Government by the bank at a nominal rate of interest, even before the actual issue of securities. 5

In the chaos and turmoil of partition, the Muslims of India were helped by Habib bank to transfer their funds to Pakistan free of any charges. In this way, when other Indian Banks had adopted a non- cooperative attitude, it was Habib bank, which was solely responsible for the transfer of hundreds of crores of rupees from India to Pakistan.

Silver Jubilee and Golden jubilee

Habib bank celebrated its silver jubilee in 1966 on completion of 25 successful years of its operation. The Government of Pakistan officially acknowledged the unique role of the bank in the financial history of Pakistan. Its services to the nation and the state were commended by the President, the Central and Provincial Minister, Governors of the East and West Pakistan. The Government of Pakistan issued Special Commemorative Postage Stamps as a tribute to the fact the Habib Bank and Pakistans freedom movement were born together and that one helped the other to its destiny. Newspapers and prominent Economic and Trade journals brought out comprehensive supplements on the occasion and while paying rich tributes in their editorial, stressed that no Muslim of the sub-Continent could forget Habib banks services to the cause of liberation of the people. Silver Jubilee celebrations were memorable indeed. The slogan Habib Bank key pachis saal behtar khidmat ki behtreen missal was on everybodys lips. In fact the impact was so great that the entire nation shared the jubilation and paid glowing tribute for the banks selfless service to the nation a country. The president of Pakistan in his message termed the bank as A shinning example for all other to emulate Golden jubilee of bank on completion of 50 years was celebrated in1991 with full enthusiasm and commitment to provide better service to its customers.

Habib bank was nationalized

The nationalization of Pakistani system in 1974 has crossed many milestones in terms of branch network, deposits and advances etc. no doubt, bank in developing country have to fulfill their social obligations. Bank has done a commendable job in this respect by offering banking facilities to the weaker section of the society.

BUSINESS VOLUME
Habib Bank which started the operations with 30 branches in Pakistan but now with a network of 1469 branches is operating its operations*. HBL wholly owned 3 Subsidiaries namely Habib Bank Financial Services (PVT) LTD. Karachi, Habib Finance International LTD (Hong Kong) and Habib Finance Australia Ltd. Sydney; 2 Joint Ventures namely Habib Nigeria Bank Ltd. (40%) and Himalayan Bank Ltd. (20%) and 2 representative offices in Iran and Egypt. The market share of HBL is 16% of total banking sector in Pakistan.

Business volume: 2001 Assets Investment Deposits Advances EBIT

333750605 57792325 283444680 167225401 2224230

2002
403012535 142877930 328182054 167523299 4088026

2003
434931930 158870811 360648228 183654042 5469168

2004
486981658 134540558 404629059 258306053 7247440

2005
528893905 107384470 432545165 316881635 13833975

GROUPS OF HABIB BANK LIMITED

Habib Bank hits the different market segments and for each segment a different GROUP is maintained for this purpose. Each group fulfills the needs of the customers by giving desired products. Retail Banking Corporate Banking International and Overseas Banking Global treasury Corporate planning and information technology Global compliance Human resource and organizational development Credit Policy Audit and Investigation

CONTRIBUTION FOR SOCIAL WELFARE

Apart from playing a historical role and pivot role in banking Habib bank has reflected its interests in humanitarian goals contributing the social welfare of the people. Various secular institutions have been established through out the country and grants, stipends and scholarships are regularly given to students with high academic merits. Special support has also been extended to health awareness programs for the illiterate, as how to safeguard health through preventive measures and control or cure common disease. Greater emphasize is given to preventive measures, hygienic habits and childcare to combat the high infant mortality rate. Dispensaries have been opened in Kutchi Abadis. In times of natural disasters such as floods, earthquake and other such phenomenon it is in keeping with the spirit and tradition of the banks pioneer to come to the forefront in helping to alleviate the resulting misery of the affected victims by providing money and kind. Commitment and dedication to a nation is at the core of its success and development. The bank takes pride in playing its role towards the betterment of society and further serving the nation. Habib bank not only playing an economy in Pakistan, but has also played a major role in promoting national sports. It has thereby inspired a sporting spirit, which is reflected by of its players earning international fame in the field of cricket end hockey.

NUMBER OF EMPLOYEES
Human Resource being the pulse of any organization and is its most precious asset. Training of this resource is of vital importance. With this key factor in mind Habib Bank pioneered its first training programme in 1946, in which Muslim youth were recruited after an extensive tour of leading academic institution. The bank training division has grown well now and contributing much in developing other institutions too. Training programmes are conducted with the latest aids and equipment and involve extensive to new recruits and existing staff with specialized courses that cater to the different cadre of personnel on topics of management, marketing, selling, accounting and finance, banking law and practice and internal procedure. The total numbers of employees were 16314on 31/12/2005.

PRODUCT LINES

Following are the important products of HBL: Deposits (Pls, Current, MPDC, Super Value Account,) HARYALI (agricultural loans) REHAISH (house loans) AUTO FINANCE (auto loans) HBL FAST (for funds transfer) FLEXI LOANS (for salaried class) VALUE VISA DEBIT CARD (ATM Card)

ORGANIZATIONAL STRUCTURE OF HABIB BANK LIMITED

Being a Privatized bank Habib Bank Limited has the following ownership structure.

3.1) Shareholding pattern of Habib Bank Limited*

HBL is organized along functional lines with eight core divisions namely Corporate & International Banking, Retail Banking, International Banking, Audit & B.R.R., Credit Policy, Asset Remedial Management (ARM), Information Technology Group and Human Resources Group. The different layers of HBL management are given below. Head Office (President) Group/ Divisional Heads Regional Heads (23 Regions) Regional Managers Branch Managers

Ownership Structure
Shareholders Shareholding Securities and exchange commission of 1 Pakistan National bank of Pakistan( Trustee 105924 Department) Privatization commission 1886 Islamic republic of Pakistan 6468187 State bank Of Pakistan 417774002 Agha Khan Fund for Economic Development 265650000 690000000 %age 0.015 0.938 60.547 38.50 100

3.2) BOARD OF DIRECTORS

In management of the banks, the Board of Directors is at the top of controlling bodies. The Board of Directors of the Habib Bank Limited consists of 08 members, named below, with Mr. Zakir Mehmood as President.

1. Mr. Sultan Ali Allana 2. Mr. Zakir Mehmood 3. Mr. Ian Donald Cheyne 4. Mr. Muhammad Ismail Qureshi

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5. Mr. Sajid Zahid 6. Mr. Shaukat Hayat Durrani 7. Mr. Ahmed Waqar 8. Mr. Arif Mansur

3.3) HABIB BANK LIMITED LALKURTI BRANCH (0640) RAWALPINDI

The control and supervision of each branch is entrusted to Chief Manager. In Lalkurti branch Mr. Hamid ullah saif is the Chief Manager of the branch. Under his supervision a total of 12 staff members including 1 OG I, 2 OG II, 3 OG III, 3 Cash Officers, 1 BDE, 3 non-clerical staff. Operation Manager is Mr. B.K Malik OG II; CD In charge is Mr.Amir Saeed OG I. Main department in HBL Lalkurti Branch are Advances, Deposits, Accounts, Bills, Clearing, Cash Department, Remittances, Customer Services Department and Lockers Department. Chief Manager

Operation Manager

CD In charge 3 Cash Officers One Supervisor

Remittance Incharge

Clearing/ bills Officer

Business Development Executive

03 NonClerical Staff

DUTIES OF ACCOUNT DEPARTMENT

Following are the duties of account department

Arranging Vouchers and Supplementary

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Vouchers of debits and credit are sorted accordingly and than preparing supplementary of these vouchers.

Supplementary Sheet
Total Debit and Credit of main head and sub head of account for particular day. For example if expenditure (Lipton Tea bags, Nestle Milk and sugar) is incurred than expenditure is the main head

Preparation of Summaries
After Supplementary a summary is prepared to complete summary figure of cash receipt and payment are added on taking two sides of the cashier book, the two sides of the summary will agree. It means that transaction made accordingly but if divergence occurs than it means that something is wrong in contra entry.

Cash Book Cum General ledger

By balancing the cashbook, we mean that all the transactions have properly been recorded and there is no mistake in any of the vouchers.

Balancing and Maintaining Books Transfer Book

Transfer Book maintained in branch to record the entire internal debit and credit vouchers except cash and clearing transactions passed in a day. At the end of each day total of cash receipts, payment and total of outward clearing add to the total of transfer book and match with the computer sheet.

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Preparing Statements
Accounts department also prepares different types of statements. These statements reflect the efficiency and financial position of that particular branch, For example statement of affairs reflects the
consolidated picture of a branch at a particular date. Similarly income & expenditure statement, which is prepared by the branch at the end of every month,showing the profit and loss position of branch.

DEPOSITS DEPARTMENT
As internee mentioned earlier that deposit is the department, which establishes the long-term relation between the bank and customers. Deposits are Liabilities of the bank and bank has the responsibility to pay back this liability when customer comes on the counter according to terms and conditions or when they come due.

ACCOUNT OPENING
Habib Bank Limited, Lalkurti Branch provides this opportunity to its potential customers to become a customer of King of Financial institutions (HBL). For this purpose different type of accounts which HBL offers are

Current Accounts
Features: 1. Account can be opened with Minimum Balance Rs.I000/- with no maximum limit.

2. Checking Account 3. No profit is paid. 4. Service charges is Rs.50/

5. Statement of Account dispatched on half yearly basis or as requested. 6. There is no restriction for withdrawals of amount and number of Cheques.

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PLS Saving Accounts

Features: 1. Account can be opened with Minimum Balance Rs.1 OOO/-- with no maximum limit.

2. Checking Account
3. Profit is payable at yearly rate declared every half year. 4. Profit is calculated on monthly products i.e. on minimum balance of Re.1/ to Rs.lO, OOO/- 0.1 % and Rs. I 0,001/- to above 1.25%. 5. Service charges Rs.50/- and it is applicable to accounts according to time-to-time instructions of State bank of Pakistan. 6. Profit is Paid/Credited in Account on half yearly basis. 7. Statement of Account dispatched on half yearly basis after posting of profit.

8. There is no restriction for withdrawals of amount and numbers of cheques.

PLS special saving deposit (SSD)

Features: 1. 2. 3.

. Account can be Opened with Minimum Balance Rs 1OOO/- with no maximum limit. . Checking Account . Profit is payable at indicatives rates for each half year.
Profit under this scheme is calculated and paid to the depositors on daily products basis on the 1st working day of the following month according to above slab. In case the average balance during any calendar month changes (rises/falls) from a slab, the profit for that month will be paid at the rate applicable to relevant average balance slab.
If during a calendar month a party maintains average balance, which does not come within the

ambit of SSD scheme then No Profit shall be paid. SERVICE CHARGES Rs.50/-. Profit is paid in Cash or Credited in Account.

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Statement of Account dispatched on monthly basis. There is no restriction for withdrawals of amount and numbers of Cheques.

Account of Illiterate person and account of Illiterate Pardah Nasheen ladies

For illiterate person account known as "Photo Account" is opened by taking two to three attested photographs of that person. That person operates his/her account by thumb impression in front of the bank officer and that person is required to come individually to operate the account Right hand thumb impression for male and left for the females, Account of "illiterate Pardah Nasheen ladies" is a very interesting task for the bank because no one can see her face and also she cannot sign any document so for this purpose Habib Bank take help from
the lady officer of the bank and open the account according to the terms and conditions.

LETTER OF THANKS
When Process of opening of account is completed than Letter of thanks to introducer and to account holder is sent by mail. By this HBL strengthen the customer relationship.

PRECAUTIONS IN OPENING OF ACCOUNT

Account opening form should be completed in all respects. In account opening form bank must keep following things in mind All required documents are attached. Particulars of account should be completed. Verification of signatures (of introducer and of account holder) on the AOF
Proper introduction obtain. Deposit must be made in cash

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FUNCTIONS OF FINANCE DEPARTMENT

ACCOUNTING SYSTEM OF THE ORGANIZATION HBL is maintaining double entry book keeping system. For effective reporting and record keeping purpose, HBL purchased a new ISO certified software called MISYS. The accounting system consists of this channel: 1. Cashiers book 2. General Ledger 3. Pak/Head office Account 4. Treasury (Monitoring Authority) FINANCE SYSTEM OF THE ORGANIZATION Finance system consists of following two systems. 1. Financial control system/Division 2. Advances/credit/loans FINANCIAL CONTROL SYSTEM/DIVISION The main purpose of this division to control the revenue and expenditure of the bank. It allocates the budget for expenses. This division controls all the revenue in the interest of all the stakeholders. ADVANCES/CREDIT/LOANS SYSTEM It is one of the most important departments in any bank because it is bank responsibility to invest deposits in some useful source by satisfying the monetary need of customers according to terms and conditions. While advancing loans the bank observe SBP prudential regulations Credit control of government of Pakistan Credit policy of the bank for a special and particular product Margin requirement of the government

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Responsibilities of credit department

Credit officer maintains the record of different loans like record of flexi loan, transport finance, staff finance, in which present situation of disbursement and outstanding loan is mentioned. When any
customer pays the installment that portion is debited from his/ her loan. Computerized record also maintained accordingly. If any customer has account in this branch of HBL than bank has the right to debit his/her

accounted on date of installment if on the time of disbursement "Letter of Authority to debit the account" is attached. Credit officer responsible for the proper enquires and investigation of the parties. He perform credit analysis to check the credit worthiness of borrower financial statement analysis is one of the tasks, which he has to perform. Ensuring this thing that loan made according to the HBL credit policy.

DIFFERENT FORMS OF LOANS

HBL give loans to its customers for a period of less than 1 year up to the 10 years. Basic three types of loans are

Short-term loan
Loan for a period of less than one year. It include the Demand financing, Running Finance, Cash finance, Flexi loan up to 1 year different staff financing for one year and all export financing.

Medium term loan

Loan for a period of 1-2 years. It inc1udes Auto Finance, Flexi Loan for two years, and loans for different housing projects are also including in this category

Long term Loan

Loans for a period of more than 2 years. It includes loans against Government securities and letter of credit more than five years.

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DIFFERENT FINANCES MADE TO CUSTOMERS

Habib Bank Auto Finance
Habib Bank Auto Finance Lease offers the most flexible and convenient option to the salaried as well as self-employed individuals to get a car of their choice. Now customers have the flexibility of structuring their lease finance in terms of tenure, down payment and deferred payment to suit their requirement. Features
Lease finance available for all new locally assembled cars and light transport vehicle

Accommodating fixed lease tenures of 36, 48 and 60 months Minimum down payment as low as 10% Amount of leasing available up to Rs.l, 500,000 Option of deferred payment up to 30% of the vehicle's invoice price to reduce your monthly rental Lowest processing charges Best comprehensive insurance package at the most competitive rates which includes third party liability and security against theft and terrorism, accident cover for Rs.200,000/- any where in the world for the lessee & his/her family, speedy process of claims and many more

No hidden cost involved

Habib Bank Flexi Loans

With the rising cost of living, it is becoming increasingly difficult to make expensive purchases or meet unexpected expenses. We can help you finance them with Habib Bank Flexi Loans. You may avail a personal loan of up to SIXTEEN TIMES of your net take-home salary.

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ADVANTAGES Flexible tenure: 36 or 60 months Low rates

No processing fee Credit Life & Disability Insurance

Repayment through easy and affordable monthly installments Credit Life & Disability Insurance

Repayment through easy and affordable monthly installments

Two easy steps to avail Flexi Loan 1. Fill in an application form 2. Submit it to the designated

Consumer Finance (Lifestyle)

Banks have signed the Memorandum of understanding with local vendors for consumer's durables. Habib Bank offers an exclusive financing scheme for consumer electronics and households appliances. Leading manufacturers entered in to agreement with banks are LG, Samsung, Philips, Siemens, Waves and PEL. Features
Quick approvals Full credit life insurance coverage Most economical monthly installments Easy to manage tenure of 6,12, 18, 24 & 3'6 months

Free delivery at your doorstep 12 & 18 months tenure only if amount is Rs. 20,000 or less.

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Staff financing
HBL always want to keep the employees satisfied and fulfill their monetary needs. Three type of financing is for the staff. Housing Finance, 3 Basic salary and transport finance. Process of Sanctioning the Staff finance Staffs members submit the request from duly recommended by Manager! Department In charge office thoroughly examines application and sends for sanctioning. Sanction Limits are different from bank to

bank according to policies. Advising sanction also contain the list of documents to be obtained before and after disbursement finance.

Cash finance
This facility provided to the manufacturers against stocks of finished goods/ raw material and work in process at some appropriate margin. Customer can avail this opportunity in full or in parts. On expiry date it must be cleared on. Period of this facility is one year.

Demand Finance
It is extendable to meet different modes of requirements of borrower that is available against tangible securities for consumption purpose or otherwise it is a one-time facility disbursed in full and mark- up is charged thereupon. This facility is for one year and can be extended by competent authority. Through monthly/ quarterly installments or in lump sum as agreed by sanctioning authorities.

Fixed Asset Financing

This mode of finance is extendable on medium and long-term basis to such customers who are utilizing these funds for capital requirements. This facility may be extended to firms, companies and other corporate bodies under the banks normal financing policy. Period for the FAF as per productive life of the particular asset! Machine for which finance is sanctioned and repayment capacity
of the borrower.

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House Finance It is long term financing, extended to individuals for the purpose of construction of houses, Features: 1. Finance shall not exceed limit of 5.00 (M). Minimum amount of finance is Rs. 2. 0.15 (M).

3. Disbursement is made in lump sum in case of purchase and in installments for construction
of house at debt equity ratio 70:30 after utilization of borrower's equity.

4. Repayment period is for 15 years but grace period of 12 months is allowed in case of construction
of house.

Running Finance
Running finance is extended to retail traders individuals against any of the following securities approved according to financial requirement. It is allowed for maximum period of
1 year. This loan is recovered on quarterly basis.

SECURITIES AGAINST DIFFERENT LOANS

ACCORDING TO THE REQUIREMENT

Stock exchange securities like shares Fixed assets like Land, building

Inventories
Various forms of deposits Life insurance policies

Salary cheques

MOBILIZATION OF FUNDS
Funds represent savings of the people and organization, which are deposited with banks. Basic function of all commercial banks is mobilization of deposits and channalizing them into investment in business and industry as well as lending to the state through purchase of government securities. HBL target market is consumer or SMES. The reason is long lasting relation with the consumer. The market of consumer is big and mobilization is easy. It also mobilizes funds through corporate sector for this purpose HBL opened its corporate branches for dealing with large institutions.

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GENERATION/SOURCES OF FUNDS
The main source of funds is deposit of the bank. Deposits are the raw material from which banks create their services for business and industry. Which consist of people savings. But the bank attract this deposit through better services, better return and long lasting trust of HBL with the consumers. Other sources of funds are consortium, project financing and World Bank. Types of Deposits Demand Deposits Current Deposits Saving Deposits Sundry Deposits Time Deposits Munafa Plus Deposit Certificates Investment Plus Deposit Certificates (minimum Rs ten million)

ALLOCATION OF FUNDS
Deposits are used by banks for financing to different types of borrowers. Deposits are used for onward lending at higher rate as compare to acquiring rate. When a customer deposit money in his account , he has right to withdraw it; but he can not enquire from the banker about its utilization. The bank after generation give this fund to consumers, corporate sector, Pakistan Investment Bonds, Project financing, Treasury bills, Lending to government. The SBP also issue some regulations to give advances to a special sector of the economy, which needs funding. Funds are allocated to various assets as per detail given below. ASSETS Cash and balances with treasury Balances with other banks Lending to financial institutions Investment Advances Other assets Operating fixed assets Deferred tax asset Total asset RS IN 000 (2005) 33051049 31813513 12272248 107384470 316881635 14481818 11166195 1842977 528893905

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FINANCIAL ANALYSIS
Introduction to financial analysis Financial analysis involves the use of various financial statements, e.g. balance sheet, income statement etc. There are various stakeholders such as owners, managers, creditors, government agencies, employees, prospective investors etc. interested in the financial condition and results of operations of a business enterprise. In general, the varying interests of all groups fall in three broad categories: Solvency Profitability; and Stability Solvency refers to the companys ability to meet its debt on due dates. Profitability means the success that the firm has had in earning a return on the assets. Stability is composed of several factors, a continues demand for a companys product or services, a reasonable and stable relation between revenues and expenses and sufficient net income to pay a regular dividend. Tools of Analysis 1. Ratio Analysis 2. Vertical Analysis 3. Horizontal Analysis RATIO ANALYSIS An index that relates two accounting numbers and is obtained by dividing one number by the other. We calculate ratios because in this way we get a comparison that may prove more useful than the raw numbers by themselves. Regulatory Ratios Advances to Deposit Ratio= Total advances/ Total deposits 2005 2004 2003 Advances to Deposit 73 64 50 Ratio Total Advances 316881635 25830605 18365404 3 2 Total deposits 432545165 40462905 36064822 9 8 2002 51 16752329 9 32818205 4 2001 59 167225401 283444680

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80 70 60 50 40 30 20 10 0 2001 2002 2003 2004 2005

advances to deposits

Comments: The Advances to Deposit ratio is showing healthy growth, it was 59% in 2001 and it becomes 73% in 2005. This increase reflects that bank is playing its role in the economic growth of the country by providing main factor of production Capital. Due to increase in the advances the banks profitability also increased. Cash to Deposit Ratio= Cash / Deposit 2005 7.64 33051049 43254516 5 2004 7.90 31970290 40462905 9 2003 7.66 27639313 36064822 8 2002 8.36 27449292 32818205 4 2001 9.76 27669376 283444680

Cash to Deposit Ratio Cash Deposits

10 8 6 4 2 0 2001 2002 2003 2004 2005 cash to deposti

Comments: The cash to deposit ratio is also decreasing. In 2001 it was 9.76, whereas in 2005 it reduces to 7.64 of the deposit. It shows the bank is utilizing its assets more productively in investment. The cash in hand is the only asset on which there is no earning, by reducing this figure and utilizing it for investment is good approach of the management.

CAPITAL ADEQUACY RATIO 24

Equity to Assets= Equity / Assets 2005 7.50 40487850 52889390 5 2004 6.40 31463777 486981658 2003 5.40 23717884 43493193 0 2002 4.88 19706925 40301253 5 2001 3.84 12814168 333750605

Equity to Assets Equity Assets

8 7 6 5 4 3 2 1 0 2001 2002 2003 2004 2005 Equity to Assets

Comments: The equity to asset ratio is also increasing. In 2001 it was 3.84 and in 2005 it becomes 7.50 almost doubled in 5 years. The increasing equity shows healthy sign of bank financial stability. Equity to Deposits= Equity / Deposits Equity to Deposits Equity Deposits 2005 9.16 40487850 43254516 5 2004 7.70 31463777 40462905 9 2003 6.51 23717884 360648228 2002 6.00 19706925 32818205 4 2001 4.52 12814168 283444680

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10 8 6 4 2 0 2001 2002 2003 2004 2005 Equity To Deposits

Comments:
The equity to deposit ratio is also increasing consistently. In five years it reaches to 9.16 from 4.52. The good point is that deposit of the bank increased and equity is also increasing.

Profitability Ratio
Net Profit Margin= Net Profit / Net Sales *100 Net Profit Margin Net Profit Net Sales 2005 30 9646549 32343206 2004 32 5763404 18198725 2003 21 4017657 19049914 2002 8 2033960 2395611 4 2001 4 1112342 26738446

25 20 15 10 5 0 2001 2002 2003 2004 2005 net profit margin

Comments: The profitability of the bank increased tremendously from 4% to 30%. It shows that bank decreases its expenses and increases the sources of revenues. The provision expense also decreases in the last 5 years by adopting the policy of prudent lending; this cut off in the provision also enhanced the net profit margin of the bank.

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Return on Equity= Dividend / Average total Equity 2005 24.33 2004 18.47 2003 17.11 2002 10.32 2001 8.68

Return On Equity

25 20 15 10 5 0 2001 2002 2003 2004 2005 Return on Equity

Comments: The return on equity looks at the return earned by management on the stockholders investment that is on owners equity. The return on equity is net income, which represents the return from all sources, operating and non- operating. The return on equity of the bank shows a consistent growth in last 5 years. The return on equity in 2001 was 8.68, whereas in 2005 it becomes 24.33. It means bank is paying handsome amount in the form of dividend to its shareholders. Return on Total Assets= Net Income / Average Total Assets *100 2005 1.82 9646549 52889390 5 2004 1.18 5763404 48698165 8 2003 0.92 4017657 43493193 0 2002 0.50 2033960 40301253 5 2001 0.33 1112342 333750605

Return on Total Assets Net Income Total Assets

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2 1.5 1 0.5 0

Return on Total Assets

2001

2002

2003

2004

2005

Comments: The return on total assets measures the efficiency with which management has utilized the assets under its control regardless of whether these assets were financed with debt or equity. The return on total assets also showing healthy growth in last 5 years. It was 0.33 in 2001 and reaches to 1.82 in 2005. It indicates that bank is utilizing its assets in a professional way. This trend should be maintained to be competitive in the market. Earning Per Share= Net Income / No of Ordinary Shares 2005 13.86 2004 8.21 2003 5.82 2002 1.68 2001 0.92

Earning Per Share

14 12 10 8 6 4 2 0 2001 2002 2003 2004 2005 Earning Per Share

Comments: Earning per share is perhaps the most widely used of all accounting ratios. The trend is earning per share and the expected earnings in future periods are major factors affecting the market value of a companys share. The EPS share is encouraging for the investor. In 2001 EPS was 0.92 and in 2005 it becomes 13.86. This consistent growth shows better policies and utilization of available resources. LIQUIDITY RATIO

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CURRENT RATIO= CURRENT ASSETS / CURRENT LIABILITIES Current Ratio Current Assets Current Liabilities 2005 16 77136810 47322584 2 2004 16 69144461 44157710 9 2003 18 70547447 39851665 4 2002 17 64321182 37206226 8 2001 24 75600642 312307262

25 20 15 10 5 0 2001 2002 2003 2004 2005 Current Ratio

Comments: The current ratio expresses the relationship between Current Assets and Current Liabilities. As debts come due, they must be paid out of current assets. The current ratio indicates a companys short run debt paying ability. It is a measure of liquidity and solvency. The current ratio of HBL is decreasing. In 2001 it was 24 whereby in 2005 it becomes 16.it should be reduced because from managerial point of view too high a current ratio may indicate that capital is not being used productively.

VERTICAL ANALYSIS
Introduction: Vertical analysis also called component percentages indicate the relative size of each item included in a total. For example each item on a balance sheet could be expressed as a percentage of total assets. This shows quickly the relative importance of each type of assets as well as the relative amount of financing obtained from current creditors, long term creditors and stockholders. Another application of vertical analysis is to express all items in an income statement as a percentage of net sales. Such a statement is called a common size income statement.

Habib Bank Limited Vertical Analysis Comparative Balance Sheet For the Year 2001-2005
2005 2004 2003 2002 2001

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Assets
CASH & BALANCES WITH TREASURY BANKS BALANCES WITH OTHER BANKS LENDING TO FINANCIAL INSTITUTIONS INVESTMENT ADVANCES OTHER ASSETS OPERATING FIXED ASSETS DEFFERED TAX ASSET - NET

TOTAL LIABILITIES:
BILLS PAYABLE BORROWING FROM FINANCIAL INSTITUTIONS DEPOSITS & OTHER ACCOUNTS OTHER LIABILITIES TOTAL LIABILITIES:

(In %) 6.25 6.02 2.32 20.30 59.91 2.74 2.11 0.35 100

(In %) 6.55 6.85 0.77 27.58 53.12 2.44 2.28 0.41 100

(In %) 6.35 4.67 6.35 36.53 42.23 2.65 1.64 0.74 100

(In %) 6.81 6.67 2.48 35.45 41.57 4.50 1.78 0.74 100

(In %) 8.29 7.52 6.84 17.32 50.10 6.37 1.76 1.80 100

1.09 6.60 81.78 2.87 1.30 0.39 4.36 0.16 1.44 100

1.56 6.02 82.96 2.90 1.41 0.54 2.78 0.17 1.66 100

1.44 7.27 82.92 2.92 2.80 1.84 0.38 (1.16) 0.05 1.54 100

1.45 9.44 81.43 2.79 3.02 1.99 0.25 (2.22) 0.05 1.79 100

1.62 7.02 84.93 2.59 3.65 2.40 0.30 (3.49) 0.060 0.93 100

REPRESENTED BY:
SHARE CAPITAL OTHER TIER 1 CAPITAL CAPITAL RESERVES UNAPPROPRIATED PROFIT/ACCUMULATED LOSS & OTHER RESERVES MINORITY INTEREST SURPLUS ON REVALUATION OF ASSETS

TOTAL

HABIB BANK LIMITED VERTICAL ANALYSIS COMPARATIVE PROFIT & LOSS A/C FOR THE YEAR 2001-2005
DESCRIPTION: MARKUP/RETURN/INTEREST EARNED MARKUP/RETURN/INTEREST EXPENSED NET MARKUP/INTEREST INCOME PROVISION AGAINST NON PERFORMING LOANS & ADVANCES PROVISION AGAINST OFF BALANCE SHEET OBLIGATIONS & OTHERS PROVISION AGAINST DIMINUTION IN VALUE OF INVESTMENTS NET MARKUP/INTEREST INCOME AFTER PROVISIONS 2005
100 22.66 ---9.20 0.40 (0.26) 68.00

(IN PERCENTAGE) 2004 2003 2002

100 24.57 --10.37 3.14 (0.83) 62.75 100 28.59 --25.61 2.37 0.80 42.62 100 48.34 --11.09 --(0.60) 41.17

2001
100 57.72 ---9.85 ---0.01 32.41

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FEE, COMMISSION & BROKERAGE INCOME INCOME/GAIN ON INVESTMENTS INCOME FROM DEALING IN FOREIGN CURRENCIES OTHER INCOME

9.08 5.34 4.34 5.53 43.58 0.77 0.21 -42.77 12.95 29.83 0.26 13.86

13.79 23.27 6.02 11.10 75.73 1.35 0.04 -39.82 8.15 31.67 0.49 8.21

10.73 18.45 5.61 5.94 51.35 1.68 0.11 (1.51) 28.71 7.62 21.09 0.03 5.82

8.75 7.49 4.78 4.81 49.29 (0.26) 0.02 (0.90) 17.06 8.57 8.49 0.04 1.68

6.84 4.11 5.44 4.12 43.85 0.27 0.05 (0.44) 8.32 4.16 4.16 0.01 0.92

EXPENSES
ADMINISTRATIVE EXPENSES OTHER PROVISIONS/ WRITE OFFS OTHER CHARGES STAFF WELFARE FUND PROFIT BEFORE TAXATION TAX PROFIT AFTER TAXATION MINORITY INTEREST EARNING PER SHARE

IMPORTANCE:
By computing component percentages for several successive balance sheet and income statement, we can see which items are increasing in importance and which are becoming less significant.

HORIZONTAL ANALYSIS
Introduction: The goal of accounting is to provide economic decision makers with useful information. The financial statements generated through the accounting process are designed to assist users in identifying key relationships and trends. The changes in financial statement item from one year to following year are often expressed as trend percentages or horizontal analysis to show the extent and direction of change.

Habib Bank Limited Horizontal Analysis Comparative Balance Sheet For the Year 2001-2005
2004-2005 Assets
CASH & BALANCES WITH TREASURY BANKS % Growth Increase/ (Decrease)

2003-2004
% Growth Increase/ (Decrease)

2002-2003
% Growth Increase/ (Decrease)

2001-2002
% Growth Increase/ (Decrease)

3.38 -4.80

1080747 -1605607

15.67 64.52

4330989 13106474

0.69 -24.41

190021 -6558121

-0.80 7.11

-219984 1783242

BALANCES WITH OTHER BANKS

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LENDING TO FINANCIAL INSTITUTIONS

226.82 11.56 -20.17 22.31 21.50 0.50

8517209 7992349 27138474 57792169 2562224 55471

-83.38 -1.99 -15.33 41.07 3.44 56.23

-18840449 -1402986 -24347867 75435424 395953 3998784

125.93 9.68 11.19 9.63 -36.47 -1.01

12594365 6226265 15992881 16130743 -6614290 -72683

-56.22 -14.92 147.23 0.18 -14.67 22.30

-12842718 -11279460 85085605 297898 -3118587 1310201

INVESTMENT ADVANCES OTHER ASSETS OPERATING FIXED ASSETS DEFFERED TAX ASSET - NET LIABILITIES: BILLS PAYABLE
BORROWING FROM FINANCIAL INSTITUTIONS

-24.01 18.94 6.90 7.17 7.18

-1825441 5558068 27916106 31648733 1017325

21.47 -7.16 12.19 10.81 11.54

1343540 -2263916 43980831 43060455 1465496

7.26 -16.91 9.89 7.11 12.93

423553 -6435341 32466174 26454386 1454050

7.67 62.29 15.78 19.13 30.29

415413 14602219 44737374 59755006 2614167

DEPOSITS & OTHER ACCOUNTS OTHER LIABILITIES TOTAL LIABILITIES: REPRESENTED BY: SHARE CAPITAL OTHER TIER 1 CAPITAL CAPITAL RESERVES
UNAPPROPRIATED PROFIT/ACCUMULATED LOSS & OTHER RESERVES

0.00 0.00 -22.46 70.22 1.37 -5.88 26.42

0.00 0.00 -594359 9520737 11411 -475275 8462514

-43.34 -100.00 61.78 -368.75 258.52 20.38 35.03

-5278495 -8000000 1010323 18604242 602380 1369002 8307452

0.00 0.00 59.19 -43.51 11.66 -7.03 20.35

0.00 0.00 608059 3886490 24335 -507925 31919395

0.00 0.00 4.20 -23.41 2.53 132.41 53.79

0.00 0.00 41406 2730512 5155 4115684 6892757

MINORITY INTEREST
SURPLUS ON REVALUATION OF ASSETS

Net Assets

Habib Bank Limited Horizontal Analysis Comparative Profit &Loss For the Year 2001-2005
2004-2005 Description
MARKUP/RETURN/INTEREST EARNED MARKUP/RETURN/INTEREST EXPENSED NETMARKUP/ INTEREST INCOME PROVISION AGAINST NON PERFORMING LOANS & ADVANCES PROVISION AGAINST DIMINUTION IN VALUE OF INVESTMENTS NET MARKUP/ INTEREST INCOME AFTER
% Growth Increase/ (Decrease)

2003-2004
% Growth Increase/ (Decrease)

2002-2003
% Growth Increase/ (Decrease)

2001-2002
% Growth Increase/ (Decrease)

77.72 63.85 82.24 57.59

14144481 27871068 18616619 30455654

-4.47 -17.89 0.90 -61.32

-851189 974202 123013 -2992022

-20.48 -52.97 9.92 83.69

-4906200 -6134091 1227891 2223213

-10.41 -24.97 9.48 0.89

-2782332 -3854113 1071781 23401

-45.40 92.62

32494424 20924304

-198.87 40.65

-304165 3300072

-206.10 -17.69

297101 -1744646

-3947.1 13.80

-147901 1196281

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PROVISIONS FEE, COMMISSION & BROKERAGE INCOME INCOME/GAIN ON INVESTMENTS INCOME FROM DEALING IN FOREIGN CURRENCIES OTHER INCOME EXPENSES ADMINISTRATIVE EXPENSES OTHER PROVISIONS/ WRITE OFFS OTHER CHARGES STAFF WELFARE FUND PROFIT BEFORE TAXATION TAX PROFIT AFTER TAXATION MINORITY INTEREST

17.03 -59.24 27.99 -11.53

29832773 28107632 31247417 30322700

22.78 20.54 2.49 78.43

465776 721766 26597 888121

-2.49 95.71 -6.57 -1.68

-52214 1718423 -75158 -19366

14.73 63.22 -21.27 4.43

269186 695438 -309172 48906

2.28 1.67 810.32 90.88 182.16 67.38 -6.90

18561915 32098256 32335683 32343206 25095766 30859170 26579802 32253788

40.88 -23.29 -63.63 -100.00 32.51 2.24 43.45 1748.6

3999155 -74351 -13162 287582 1778272 32525 1745747 84581

-17.15 -610.54 409.36 33.66 33.79 -29.33 97.53 -48.81

-2024993 381843 16624 -72423 1381142 -602555 1983697 -4612

0.71 -185.80 -67.20 83.51 83.80 84.74 82.85 177.10

82686 -135438 -8320 -97915 1863796 942178 921618 6039

ORGANIZATION ANALYSIS WITH REFERENCE TO THE MAJOR BANKS

INCOME STATEMENT (RS IN MILLION) (2005)
BANKS ABL HBL MCB NBP UBL PROFIT BEFORE TAX 4777 13834 13340 19056 9708 TAX 1744 4187 4126 6347 3540 PROFIT AFTER TAX 3033 9647 9214 12709 6168

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ASSETS AND LIABILITIES (RS IN MILLION) (2005)

BANKS ABL HBL MCB NBP UBL INVESTMENT TOTAL ASSE TS 44830 192170 107384 528894 70357 299708 156986 577719 61559 358056 DEPOSITS 161907 432545 229340 463427 296499 TOTAL LIABIL ITIES 192170 528894 299708 577719 358056

ADVANCES
Banks HBL NBP UBL MCB ABL 2005 (In %) 29.2 24.7 19.3 16.6 10.2 2005 (In Million) 316882 268839 210153 180323 110947 2004 (In Million) 259089 220794 148225 137318 59485

OPERATING COST TO OPERATING INCOME

OPERATING COST OPERATING INCOME 2005 (Rs In M) 2004 (Rs In M) 2005 (Rs In M) 2004 (Rs In M) 6223 6920 19563 11033 11457 8919 30513 20897 8522 7312 18230 12322 4311 4265 9088 4747 16015 14034 29849 21281

BANKS MCB NBP UBL ABL HBL

NUMBER OF BRANCHES AND LEGENDS

BANKS LEGENDS 2005 2004

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ABL HBL MCB NBP UBL

ABL HBL MCB NBP UBL

741 1470 952 1242 1058

735 1469 941 1226 1072

STAFF COST AND NUMBER OF STAFF

STAFF COST NUMBER OF STAFF 2005 (Rs In M) 2004 (Rs In M) 2005 (Numbers) 2004 (Numbers) 4441 4501 9444 9287 3691 4774 9493 9983 2754 2804 6909 6768 7407 5777 13824 13745 10964 9160 16314 18625

BANKS UBL MCB ABL NBP HBL

Short Falls of Finance Department

The finance department is very important because finances share in banks total assets is high. It is the major source of banks revenue. The bank mobilizes savings in the society and brings capital formation through finance department. Keeping in view the importance of finance department the department requires high quality analysis as it is high risky but due importance is not given to analysis. The five credit factors are 1. Capital 2. Capacity 3. Character 4. Collateral 5. Condition. But in some cases concerned staff does not know about these factors. HABIB bank has less flexibility in its credit structure. It is highly centralized in its decision making process. Even though HBL is the pioneer in introducing computer banking in the Pakistan. But due to miss management HBL could not retain that privilege, as it should be. IT 35

speed is very slow in its finance cycle according to the requirement of current era of information technology. No proper complaint cell or complaint boxes in every branch of the HBL. Thats why complaint against customer proceeds could not reach to higher authority. Process of giving finance is lengthy and proper advice of giving loan is not providing at the time of finance thats why number of the non-performing loans increased. During past few years there is an immense increase in the downsizing of the staff. Thats why extra load of work in many branches and also affect the working of Finance department. Large number of staff does not now the use of computers. They are reluctant of IT. Thats why management is facing hurdles in the implementation of new system called MYSIS. The primary concern in credit is when and where the borrower will get cash to repay the loan. Todays loans are paid with tomorrows cash. But proper attention is not given to its importance.

RECOMMENDATIONS
UNIT SYSTEM Habib bank must introduce the unit system in every branch. Lalkurti branch, which is one of the main branches of Rawalpindi region, still practices the old token system for payments of cheques. Better it would be practice the unit system in the branch it is the time saving system for customers. SHORT COURSES AND TRAINING PROGRAMMES Different short courses and training programmes that are arranged by the training institute are only for the bank routine operations. Programmes especially for the IT training or information about the current trend in the banking sector should be arranged by the training institute. Moreover grooming sessions of the employees also necessary to manage their jobs and to tackle different kind of the customers and their problems. CUSTOMER SERVICES Just like other modern banks customer services department should be well established and well arranged and there should be complaint cell in each branch of the organization. It will

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help the management to improve the quality of services not only at branch level but also at the upper level. LOAN ADVANCEMENT HBL like other commercial banks provide loan facility to people, but most of time advancement of loan is not being done on merit or proper guidelines is missing by the credit officers. The bank of deal with this unequal distribution of bank resources should take so some measures. For this purpose the selection of the officers, which deals with credit department, should be on merit basis. The bank should arrange proper training of these officers. More emphasis must be given on the interpersonal skills of the employees like, dealing with people, good communication skills and analytical skills. Training center should arrange these courses, which help them to develop these skills in the credit officers. More loan advancement is also helping the bank to reduce its enough liquidity, which is increasing due to foreign remittance. STUDENT LOANS It is an opportunity for the bank to launch a loan especially for the students. It will help the bank to promote and motivate the young blood to participate in the development of economy. Banks, which are in highly liquidity problem, can utilize this money by giving to young talent to use their skills. PRIVATIZATION OF BANK According to the privatization policy of the government, HBL is also privatized in order to strengthen it s position. Privatization helps the bank to improve its quality of services.

CONCLUSION
HBL is one of the most important names in the banking sector of Pakistan. It is playing a vital role in the economic growth of the country. It is important to note that business conducted, investment made and the expenditure incurred in accordance with the objectives of the bank. Overall performance of the bank is satisfactory but it still need and improvement because there is no end of success. It has passed the 64 years of its operations and serving the 4th generation of Pakistan. So it becomes its responsibility to regulate such activities, which can help the country to further, move on the road of development. On the basis of its large number of product and services offered and large branch network it has unique presence even though competition is growing day by day. Management of HBL must recognize these things and take the steps to improve it quality. HBL has been going through a comprehensive but complex and painful process of restructuring. It is aimed at making this institution financially sound and forging it links firmly with the real sector for promotion of savings, investment and growth. Although a

37

complete turnaround is not expected till the completion of reforms, signs of improvement are visible. At the end, I can only pray that it gets more prosperity and help the government to boost the development and the standard of living.

BIBLIOGRAPHY
WWW.SBP.ORG.PK WWW.HABIBBANKLTD.COM WWW.FINANCE.GOV.PK WWW.PRIVATISATION.GOV.PK Mr. Hashmi (Directing Officer, MDI Training Center), HISTORY OF HABIB BANK

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Ghausi, s. (2003, August 14). NBP, HBL to open branches in Kabul, The Dawn Mehmood Butt K (2003, July 7) Habib banks e-banking, The Dawn, Advertisement supplement Khan, I (2003, August 24) Shaukat Launches HBLS all encompassing house finance scheme The News Business WE News letter of HBL THE NEW SOFTWARE MYSIS

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