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Every batch of participants pursuing the MSc course in The Islamia University of Bahawalpur is involved in Internship Program as part of their course curriculum. For improving my knowledge and practical skills the “Commerce” gives me this opportunity to do Internship in Habib Bank Limited Ahmad pur road Bahawalpur to enhance mine knowledge and skills which will be beneficial for me. My work here is mostly related to retail and consumer banking. I spend most of time in account opening, clearing, remittance, foreign exchange and credit department. During my internship different projects and assignment assigned to me by my supervisors of different. Like Mr. Faheem baig, incharge of accounts opening department assigned a target to help him in account opening of customers and advertise the new products of HBL like HBL Value Account and Money Club Accounts. Similarly Mr. Yaqoob, incharge of remittance Department assigned me a target to help him in his work. Mam Sumaira, incharge of advances and insurance department also tell me about her work. I also spend time on reception of HBL to learnt public dealing. This report contains the necessary information about the sections and functions of HBL. This report is prepared in simple and understandable format so that ordinary person can also take benefit from this report. While preparing this document in its present shape, a number of people extended their help. I wish to thank all of them. I gratefully acknowledge the officers of different departments for updating and in some cases revising the paragraphs relating to their respective working.
We deem it our utmost pleasure to avail this opportunity to express gratitude & deep sense of obligation to my revered teachers and HBL‟s relationship manager Mr. compassionate attitude. I would like to extend hurtful thanks to my adoring parents and friends for their day and night prayers sacrifices and encouragement. May all of them live long and enjoy a happy life! . Finally. moral and financial support throughout the course of our study. Zaiuddin and Mr. moral support and enlightened supervision during this whole project.Acknowledgment All praises belong to almighty Allah who the supreme authority knows the ultimate elation underlying all sorts of phenomenon going on in this universe & whose blessing & exaltation flourished my thought & thrived my ambitions to have the cherished fruit of my modest efforts my humblest thanks to the Holy Prophet Hazrat Muhammad (PBUH) who is forever a torch of guidance & knowledge for humanity as a whole. kind behavior. Waseem Bhati for their valuable and dexterous guidance. untiring help.
Who gave me this opportunity. .Dedicated To My respected parents & teachers and Supervisors in HBL. To show My potential and skills and whose endless Support and Kindness Is beyond expressions and words May not Just is enough to express My gratitude.
Singapore. UAE. Belgium. The balancing act between what customers want and what the HBL can provide must be optimized in order to maximize HBL‟s long-term profits. HBL has the largest Corporate Banking portfolio in the country with an active Investment Banking arm. Africa and the Far East. Sri Lanka in 1951 and Habib Bank Plaza was built in 1972 to commemorate the bank‟s 25th Anniversary. Oman. With a domestic market share of over 40%. South and Central Asia. Consumer Banking as well. traders and farmers. It encompasses product offerings and services in Retail Banking and. . in recent years. HBL is the first Pakistani bank to raise Tier II Capital from external sources. HBL is currently rated AA (Long Term) and A-1+ (Short term).EXECUTIVE SUMMARY HBL established operations in Pakistan in 1947 and moved its head office to Karachi Our first international branch was established in Colombo. International operations were expanded to include the USA. Seychelles and Maldives and the Netherlands. 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. HBL is expanding its presence in principal international markets including the UK. Satisfying customers are the only way to stay competitive in today's Market Place.
1941 when it commenced business with a fixed capital of 25000 rupees. He engaged in private banking.Introduction Habib Bank Ltd is a Banking HBL which is engaged in Commercial & Retail Banking and related services domestically and overseas. Quaid-e-Azam Muhammad Ali Jinah asked the bank to move its operation to Karachi after the creation of Pakistan. HBL is currently uses rate AA and A1+ HABIB BANK GROUP is a leader in Pakistan‟s services industry. So‟ HBL has come a long way from its modest beginnings in Bombay in 25 august. But its history starts in 1841 when a young boy name Ismail Habib reach Bombay for job. Impressed by its initial performance. This time HBL again helped the governance of Pakistan and came to rescue to provide Pakistan with assistance of no t less than 8 crore. HBL Enjoy 20% of the market Share in Pakistan. HABIB BANK has been a pioneer in providing innovative banking services such as first installation of mainframe computer in Pakistan followed by ATM and more Internet banking facilities in all branches. During the early days of newly born state. Ismail Habib was very keen and intelligent and became partner of his boss. is the proud symbol of HBL leadership In Pakistan‟s corporate ground. Later on he was elected as a president of the market. An extensivnetwork of 1425 domestic branches the largest in Pakistan and 55 international branches to meet customer needs. government of Pakistan faces the great problem of fund shortage. Habib Bank Plaza. Besides this. The main strength of HBL brand is its great . Perhaps the HABIB BANK LIMITED establish in 1941 at Bombay. the tallest building in Pakistan. HBL establish itself in the Quaid‟s city in 1943 and became a symbol of pride and progress for the people of Pakistan. Today HBL is truly the bank of the people Providing its customers on venience and Satisfaction all Over the world. After some time he got the job with a dealer in utensils and non ferrous metals. Many years later he expended his business.
Team Work: Our tteam sttriives tto become a cohesiive and uniifiied force.... .. Mission statement To be recognized as the leading financial institution of Pakis tan and a dynamic international bank in the emerging mare t s . . Values of HBL Humility: We encourage a culture off mutual respect and treat both our team members and customers with humility and care. Cullture of Innovatiion: we aiim tto be proacttiivelly responsiive tto new iideas.services to all customers especially to the corporate customers and its prominent head office building that has dominated Karachi s skyline for 35 years.. and tto respectt and reward tthe agentts. integrity means a synergic approach towards abiding our core values..... providing our customer s with a premium set of innovative products and services . Integrity: For us.... Meritocracy: At every level.. Thiis fforce iis deriived from parttiiciipattiive and collllectt iive endeavors. we form a network of a well -integrated team. customer s and employees . a common sett of goalls and a spiiriitt tto share tthe gllory and the sttrengtth tto face faiillures ttogetther.. United with tithe force of shared values and integrity. and granting superior value to our s take holders – shareholder s . a llevell of serviice beyond your expecttattiions. We are. tthe custtomer.. we have designed a consistent system of human resource practices. based on object live criteria throughout all the llayers of tthe organziation. ttherefore. from select ion to advancement. lleaders and creattors of change... tto offfer you. ablle tto achiieve a speciifiic llevell of performance att every llayer of tthe organiizatt iion.....
2.5millon BRANCHES: Numbers of branch of HB L 1437. there are a number of different banks. BANKS AND SCOPE OF BANKING WHAT IS BANK? A bank is an institution for the custody. It was the first Muslim Bank of the sub-continent. performing various functions. Our first international branch was established in Colombo. the main activity or function of banking is borrowing and lending of money with a margin of gain. It is a pipeline through which currency moves into and out of circulation. Sri Lanka in 1951 and Habib Bank Plaza was . 1942 at Bombay. as far as the present day banking is concerned. loan or exchange of money for sanctioning credit.ESTABLISHMENT: Habib Bank Limited was established by Mr. It was Established with a Paid up capital of Rs. for transferring funds by domestic foreign bills of exchange. History of HBL HBL established operations in Pakistan in 1947 and moved its head office to Karachi. set up under specific different objectives.Ismail Habib (Late) on August 25. As it is clear from the definition of banking.in the form of 1408 retail Banking branch 18 commercial banking division 10Corporate center 1 Islamic banking. However.
Today. . Our main activities are: Correspondent banking Treasury services Depository products (current account services/term deposits). HBL has more than 1489 branches all over Pakistan and presence in 26 countries across five continents. the tallest building in Pakistan. 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. formed in 1941 it provides banking and financial services in Pakistan. Nature of HBL: Habib Bank Ltd (HBL).409 billion (USD 389 million).built in 1972 to commemorate the bank’s 25thAnniversary. 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. including the Chairman and the President/CEO and three Government of Pakistan nominees. Oman. with 1. Habib Bank is truly the bank of the people. providing its customers convenience and satisfaction all over the world. Seychelles and Maldives and the Netherlands. is the proud symbol of HBL‟s leadership in Pakistan‟s corporate arena. as it gear up to face the challenges of the new millennium. With a domestic market share of over 40%. With a revamped customer oriented philosophy. International operations were expanded to include the USA. Current Status of HBL: Today. 2004. Transacting guarantee and indemnity business. Singapore. On February 26. Habib Bank Plaza. International remittances. management control was handed over to AKFED. . against an investment of PKR 22. The Board of Directors was reconstituted to have four AKFED nominees. Belgium. On June 13. we are pursuing new avenues of leadership through innovation.455 domestic branches all over Pakistan. traders and farmers.
Now you can drive a car you always wanted. Repayment options ranging up to 7 years. C Eligibility Criteria: riteria Salaried Individuals Citizenship Age Minimum monthly income Pakistani 22-60 years Rs. 25.000 Self-Employed Business persons/ Professionals Pakistani 22-65 years Rs. Undertaking and executing trusts. you can place your requests and queries. 6) HBL’s Products and Services The following are the product and services of HBL: HBL Car Loan: HBL CarLoan helps you get your preferred car through a simple and hassle-free process. 20. Choice of used. Insurance at all times for complete peace of mind and security. new local/imported and reconditioned imported car. Up to 85% of financing for the car of your choice. track the status of your repayment/loan account and avail other value-added services through HBL Phone Banking.000 . backed by superior service and support. Round the clock support available through HBL Phone Banking.
So make the most of your shopping experience. Accepted at over 29 million merchants worldwide. HBL CreditCard makes shopping fun and paying simple. Gold Card Green Card .Documentation Salaried Individuals • Copy of CNIC • 2 recent passport size photographs • Latest original salary slip and personal bank statement for last 3 months Self-Employed Business persons/Professionals • Copy of CNIC • 2 recent passport size photographs • Bank statement for last 6 months and bank letter confirming details of account • Proof of business Credit Card Welcome to a world of convenience and flexibility.
000 Minimum gross salary requirements Salaried individuals Self-employed business persons/professionals Green Card Rupees 15.000 180.000 500.000 25. .000 Credit limit range Minimum Maximum Rupees 20. call HBL PhoneBanking at 111-111-425 or contact your nearest HBL branch.000 Home Loan HBL HomeLoan offers financing options to purchase a new house or renovate an existing house.000 149. For details regarding available financing options.000 Rupees 150.Gold Card Rupees 50.
6 months experience with confirmed employment status in the current job. Maximum age at the time of loan maturity should Minimum age at the time of Age criteria of the main be 60 years. loan application should be 21 applicant and co-borrower years. Maximum age at the whose income is being Contractual employees time of loan maturity should clubbed (spouse only) Minimum age at the time of be 65 years. . loan application should be 21 years. Maximum age at the time of loan maturity should be 55 years Length of Employment Permanent employees Minimum 1 year experience. Third party contractual not eligible.Eligibility Criteria Salaried Individuals Self-Employed Business Persons/ Professionals Nationality Pakistani (resident) Pakistani (resident) Permanent employees Minimum age at the time of loan application should be 21 years. Minimum 2 years experience in personal business Contractual employees Minimum 2 years work experience.
Documentation Salaried Individuals Self-Employed Business Persons/ Professionals CNIC copy 2 passport size photographs Letter from employer 2 latest salary slips or salary certificate Bank statement for last 6 months and bank letter confirming details of account Copies of property documents CNIC copy 2 passport size photographs Proprietorship: Bank Certificate / Latest Tax Assessment Order Latest one year bank statement Partnership Deed Registered Form C Memorandum. Article of association and registered Form 29 A (applies to company directors) Copies of property documents Bank Charges Application processing charges (including 16% Rs.000/.(non-refundable) FED) Early settlement charges Partial payment charges Late payment charges Property evaluation fee Legal fee 4.7% of outstanding principal 4.7% of adjusted principal Rs. 7. 700 (for each late payment) Actual cost plus 16% FED to be recovered Actual cost plus 16% FED to be recovered .
You don‟t have to carry cash and your monthly statement provides you with a complete record of all your transactions so you can manage your expenses with ease.Bancassurance HBL and Jubilee Life introduce Amaan (Retirement Plan ) and Tabeer (Child Education & Marriage). These products have been designed keeping HBL‟s customer base as the focus and will provide life insurance along with an investment option. Debit Card HBL Visa Debit Card allows you to pay for your purchases directly from your bank account. Features No Interest Ease & Security No Liability International Recognition& Acceptability Spending Limits 24 hour Customer Service Global Customer Assistance Service .
2. 25. HBL Personal Loan helps you fulfill your financing needs.HBL Personal Loan From quality education to a grand wedding to personal well-being.000 • • Documentation The applicant should be 21 years or more at the time of loan application and 61 years or less at the time of loan maturity. Features and Benefits • • • Processing fee on approval only Repayment tenures from 12 to 60 months Loan amount ranging from Rs. Get hard cash the easy way with HBL Personal Loan. Requisite documentation is listed below: • Verified original copy of CNIC • Legal Agreement • Other documents required (According to segment) 24/7 access to HBL PhoneBanking Top-up facility available after every 12 months .000.000 to Rs.
Services: Deposit Accounts HBL CarToCar HBL CarLoan Mobile phone prepaid vouchers T-PIN Generation Your TPIN (Telephone Personal Identification Number) is generated the first time you call and you can use it as your password for verification purposes. You can change your TPIN anytime you like. .HBL Phone banking HBL Pho Your bank is just a phone call away. You can now call HBL Phone Banking and save a trip to the branch. selfservice banking through IVR and additional services through our PhoneBanking Officers. Your query will be resolved in a single telephone call from anywhere and at anytime. For details on features and benefits please see below.
. Fast Direct Credit Instantly receive money in any HBL account. HBL FastTransfer offers three modes for receiving money in Pakistan: 1. 3. HBL .000 for instant collection from any HBL Branch.HBL FastTransfer HBL FastTransfer lets you receive your remittance instantly and absolutelyfree.provides unmatched convenience and a confirmation SMS to inform you that your money is ready for collection.Pakistan’s largest banking network . Fast Cash Receive up to PKR 500. 2. Fast Draft Non HBL account holders can get their account credited the same day.
Organizational structure: The management and organizational structure of HBL is given as follow. At Head Office Level: Secretary Board Credit Committee Board of Directors Internal Audit Treasury Committee President Budget & Finance HR Committee Personal & Admin General Treasury Credit Control System & Operation Computer and IT Accounts . a.
.o Retail Banking The Retail Banking network. The objjectt iive of settttiing-up Commerciiall Bankiing was ttwo-folld:: Fiirstt tto sttop tthe erosiion of markett share iin tthe miiddlle markett. The network provides HBL with the largest diversified low cost deposit base of any bank in Pakistan. HBL Corporate & Investment Banking Group is now recognized as a market leader and regularly arranges and participates in most large structured finance deals. Second. is the core strength of Habib Bank. . o Commercial Banking: Enterprises operating in the middle market contribute significantly to the economy of a country. 2000 Commercial Banking came into being. The network provides HBL with the largest diversified low cost deposit base of any bank in Pakistan. to regain the lost market share Commercial Banking is making headway with improvement not only in terms of the business figures but also in its ambiance. On November 1. and forms the basis for many of our other business lines: corporate and investment banking and treasury activities. and forms the basis for many of our other business lines: corporate and investment banking and treasury activities. o Corporate Banking: The Corporate Banking Group serves large institutional customers who require sophisticated products in an environment of intense competition. During FY-2000 HBL‟s management decided to address this issue. with 1425 branches. Renovation of is being carried out in order to give a professional look to all the Commercial Banking Centers.
o International Operations: HBL‟s ability to operate successfully in diversified markets and cultures is a function of a long history in international banking – when first international branch was opened in 1951. This environment is composed of regulatory agencies and government law that influence and limit various organizations and individuals. The available borrowing power depends on: Consumer income Saving rates Consumption patrons Rates of interest Budget deficit Exchange rates Cost of living Inflation . POLITICAL AND LEGAL ENVIRONMENT Banks are strongly affected by the political and legal considerations. ECONOMIC TRENDS A banking market requires better consumer market in volume along with higher borrowing power. Mostly these laws create new opportunities for business. To protect consumers from unfair business practices adopted by banking companies To protect the interest of the society from unbridled business behavior. The Bank ‟ s branches in financial centers continue to provide efficient trade settlement and reimbursement services to the entire network and business with other banks. Business legislation has following main purposes To protect banking companies from unfair competition.
. In brief PEST analysis affects the overall banking companies and provides us the information about the external macro condition. norms and values. The improvement techniques involved in on line banking. The rate of change of technology has greatly affected the rate of growth of economy.SOCIO-CULTURAL ENVIRONMENT A society is shaped by beliefs. New technology is creating deep rooted affects which could be observed in long run. Which arise because of change in socio-cultural environment? Consciousness about services Concern for environment Improved customer relation TECHNOLOGICAL FACTORS Forces of technological advancement have played the most dramatic role in shaping the lives of people. People in a society consciously and unconsciously interact with: Themselves Others Organization Society Nature Following are the main factors.
Hierarchy Chart PRESIDENT Senior Executive Vice President (SEVP) Executive Vice President Senior Vice President (SVP Vice President (VP) Assistant Vice President (AVP) Officers Grade -1 Officer Grade –II .
Officer Grade –I Cashier Clerks Peon .
BOARD OF DIRECTORS ZAKIR MEHMOOD PRESIDENT CHIEF EXECUTIVE SULTAN ALI ALLANA CHAIRMAIN AHMAD JAWAD DIRECTOR SAJID ZAHID DIRECTOR .
Moez Jamal DIRECTOR MUSHTAQ MALIK DIRECTOR .
deposits or withdraws money several times in a day if he likes. Therefore we can rightly state that deposits are the blood of the bank which causes the body of an institution to get to work. All Pakistani‟s Resident/Non-Resident. Any Foreign National Individuals (Single-Jointly) having valid Resident Pakistan VISA/Work Permit can open and operate the Account. . Attested photocopy of N.I. Certified true copy of the certificate of incorporation or registration (in case of limited companies & registered bodies only). Partners. Proprietor. Requirements for Opening of Account: Duly filled prescribed A/C opening FORM.C. TYPES OF ACCOUNT: 1) CURRENT ACCOUNT: In this type of accounts the client is allowed to deposit or withdraw money as and when he likes. there is requirement of minimum balance maintenance of Rs. He may. Usually this type of account is opened by the businessmen. the difference between the rate of borrowing lending forms their spread or gross profit. No profit is paid by the bank and no service charges are deducted by the bank on current deposits account. II.5000/-. Certified true copy of the certificate of commencement of business (in case of public limited companies only)./Passport of Account Holder(s). thus. Directors and office Bearers as the case may be. Individuals (Single-Jointly) Companies/Firms etc.DEPOSIT DEPARTMENT Bank deals in money and they are merely mobilizing funds within the economy. These deposits are liability of the bank so from point of view of bank we can refer to them as liabilities. can open and operate the Account but he should be a corporate customer. They borrow from one person and lend to another. However. There is also no restriction of amount to be deposited or withdrawn. Eligibility: I.
Statement of Account dispatched on request letter. two Passport size photographs and signatures on A/C Opening Form for Non-Resident Pakistani with Signatures/Thumb Impression etc. Photo copy of Passport with Page bearing Resident Visa of the Country where Pakistani Residing. . 1000/. Zakat & other taxes are deducted as per rules of the government. Photo Copy of National Identity Card (Resident Pakistani). two Passport size photographs with Signatures/Thumb Impression (Resident Pakistani). The profit is paid on these accounts on the minimum balance during a onth for the whole of that month. The requirements for this account is duly filled prescribed A/C opening FORM. Profit is payable at monthly subject to adjustment on deceleration of actual profit rate declared every half year.1000/.with no maximum limit. No profit is paid. This type of account is opened with a minimum deposit of Rs. There is no restriction for withdrawals of amount and number of cheque. Checking balance at any time during banking hours.or the amount prescribed from time to time. Profit is calculated on monthly products Zakat will be deducted on valuation dates of account. Features: Account can be OPENED with Minimum Balance Rs.). Certified true copy of the resolution of the Board of Directors/Managing Committee/Governing Body regarding conduct of the account. 2) Profit and loss sharing savings: This type of account is for those persons who want to make small savings'. Features: Account can be OPENED with Minimum Balance Rs.1000/. Certified true copy of rules and regulations or By-Laws (in case of association etc. Certified true copy of the memorandum and articles of association (in case of limited companies).or prescribed limit that is announced time to time with no maximum limit.
Under this deposit scheme. Different profit rates are applied to different type of term deposit. Eligibility: All Pakistani‟s Resident/Non-Resident individuals. a deposit is received from the depositor under the condition that he will intimate the bank before a certain period in case of withdrawals. Profit is Paid/Credited in Account on half yearly basis in case of six monthly PLS saving accounts. 4) PLS term deposit: A type of term deposit. 3) PLS special notice deposit: Special notice deposit is paid on daily product bases. Departments can purchase the TD. There are two types of special notice deposit. Govt/Semi Govt. It is in the form of receipts and profit on these receipts is paid biannually. Two Passport size photographs with Signatures/Thumb Impression (Resident Pakistani). in which a receipt is issued for varying tenors ranging of deposit. The profit is paid on these deposits but it is nearly equivalent to saving account rate that is paid on special notes. There is no restriction for withdrawals of amount and numbers of cheque. It has no maximum limit but not less than 1 month. Any Foreign National having valid Resident Pakistan VISA can purchase TD. Photo Copy of National Identity Card (Resident Pakistani). Photo copy of Passport with Page bearing Resident Visa of the Country where Pakistani Residing . Account opening rate is 1000 and the zakat is deducted on the rules and regulation. they are 7 days and 30 days notice deposits. Statement of Account dispatched on half yearly basis after posting of profit. Requirements for Purchase of TD: Duly filled prescribed FORM. Firms/Companies. These receipts are encashable after expiry of the period for which they were issued.
Account opening in special cases Blind person account: A blind person can easily open an account in the bank like other persons but it is preferred that he should open a joint account with a normal person.1000/. The one thing that is provided extra by the blind person is two photographs duly attested by an authorized person. Two Passport size photographs and signatures on A/C Opening Form for NonResident Pakistani with Signatures/Thumb Impression. there should be an authorized person with him who checked the signature and the amount filled by blind person.with no maximum limit. In this regard the profit is declared from time to time but will be paid only once at the time of encashment of receipt of maturity. Non resident person account: Non-resident persons are those who do not live in Pakistan permanently. 5) PLS khas term deposit: Pls khas term deposits are acceptable for a period ranging from one and half year to five years in multiple of six months. Profit is payable at yearly rate declared every half year. Profit is Paid/Credited in Account on half yearly basis. Features: TD can be purchased with minimum of Rs. According to the tax authority the non-resident persons are those who live in Pakistan: . If he wants to open the account individually. The banker can not fill the amount and check the signature. Photo Copy of Passport with Page bearing Resident Visa of Pakistan (Foreign Nationals). Zakat will be deducted only once at the time of maturity or before maturity. The holder of term deposit receipt must keep the receipt under lock any loss of receipt must inform the bank because without it the bank will not pay the amount.
Defense account. Non Pakistani‟s account. REMITTANCES DEMAND DRAFT: Demand draft is a written order drawn by a branch of a bank upon the branch of same or any other bank to pay certain sum of money to or to the order of specified person.In case of foreigner not more than 180 days. Its Legal provisions are same as that of cheque. Provident fund. Government account. Demand draft is negotiable instruments that can be negotiating at any time before its cancellation. All things will remain same. Non Muslim‟s account. Zakat treatment on all accounts Zakat will be deducted on all accounts except the followings: Fiqah Gafreia account. Following parties are involved in demand draft: Applicant issuing branch . After getting this information State Bank give instructions to bank about handling of not resident person‟s account. only one thing that is passport copy of the person will have to provide to the bank. The logic behind this is that the bank insures the entry and the exit date of the person in Pakistan. In case of Pakistani not more than 90 days etc. The person has to inform bank 15 days before entering in Pakistan and the bank also send this information to State Bank of Pakistan. Trust account. It can be issued to the customers as well as non customer against cash cheque and letter of instruction. In proceeding 4 years not more than 365 days.
One code is with issuing person and the second is with an other person. Minor cannot avail this facility. When they combine the codes it‟s become an amount that is called check. Following parties are involved in TT Applicant Drawing branch Drawee branch Beneficiary Following important things should be included in TT: Full name of the beneficiary or account number should be mentioned in the application form. Full name of payer should be mentioned.drawee branch Beneficiary A demand draft may be issued against the written request of the customer before issuing it must be seen that the demand draft is in order. A record in the remittance outward register should be maintained. There should be branch where payment is to be made. Telegraphic transfer is not negotiable and the funds are not payable to bearer. The payment is made after the confirmation of the check. TELEGRAPHIC TRANSFER: Telegraphic transfer means the transfer of funds from one branch to another branch of the same bank or upon other bank under special arrangements just like a telegram. Instruction regarding mode of payment should be obtained. . In telegraphic transfer the bankers use secret codes. The DD application must be scrutinized by the counter clerk in respect of following points. Amount in words and figures must be same The applicant on two places should sign application.
Following parties are involved in pay order: Applicant issuing branch Payee MAIL TRANSFER: Mail transfer is not negotiable and the procedure of it is same with the procedure of DD. If the customer is the account holder of this bank. In which he states that I want to transfer the money from this bank to that specific bank by mail.When a customer request the bank to transfer his money from this bank to any other bank of the branch of same bank in the city. Pay order is meant for bank own payment but in practice they are also issued to customers. If the customer is not the account holder of the bank. then firstly he has to deposit the Money and then rest of the procedure will be adopted to transfer his money STAFF MEMBER AND THEIR DUTIES . the bank will debit his account and the concerned officer will fill forms to make the mail transfer complete. outside the city of outside the country the first thing he has to do is to fill an application form. All the remittance must be controlled through number or codes. PAY ORDER: Pay order is an instrument through which payment can be made from one bank to another bank.
5) Supervision of daily transaction & NBP RSF. Banker’s checks. 2-MANAGER OPERATION: 2) Old record maintenance. 4) Audit. HMT.MUSSARAT BAJWA. 1) Opening of new CD. 3) All types of correspondences. . 1) Lockers maintenance.ZAHAID.1-MANAGER: Mr. 3) Reconciliation of Unreconcile Entries & with holding tax. 8) Maintain of computer record 9) Any other duty assigned by the manager. 1) Processing of Fund Base / non fund base proposals. Rent & ATM issued. 3-MANAGER CREDIT: Miss Saima. Advantage accounts etc. 5) Mark up accruals and handling of stock reports. 7) Weekly and monthly balancing. 2) Documentation of commercial/ seasonal finances. 3) Safe custody of finances documents. recovery.TT etc. 4) Handling of security stationary. 6) Supervision of advances. 2) Checking of cash book & general supervision. Mr. 6) Issuance of cheques books. HRD etc. PLS. 4) Monthly / Weekly statements relevant.
3) Supervision of cheques and daily checking of vouchers. 3) Preparation of Excess cash /SBP cash statements.7) Any other duty assigned by the manager 4-MANGER TELLER: 2) Cancellation of cheques. MR. SYED HASHIM 1) Issuance of cash receipt / utility bills receipts. 7-Teller / CLG Remittance (Imputer): Mr.MAJID . 8) Checking of dak / courier registers. 4) Checking of daily transaction of CD / PLS/JRC computer sheets. 2) Daily checking of Suspense Account and other GLs 3) Customer records of new accounts. 4) Any other duty assigned by the manager. SHAHID. monthly Balancing 7) Transfer of Funds. 1) Punching of vouchers. ABDUL KAREEM KHAN. diagnostics etc. 1) Handling of cash payment/ receipts and Utility Bills. deceased accounts/Unclaimed deposits and statements of accounts. 4) Clearing. MR. 5-CASH OFFICER: 2) Sorting of cash. 5) Checking of daily run. remittances and cheque Return Register 5) Any other duties assigned by the manager. MR. 6) Stop payments & weekly. 9) Any other duty assigned by the manager. .
8- R.B.O. (B.S.O.)
MISS. SAHARA. MISS. SUMERA.
1) Processing of loan Proposals 2) Loan Recovery / Follow up etc. 3) Introduce of new borrowers for loan financing 4) Any other duty assigned by the manager.
Financial Analysis of HBL
00% 84.50% 2007 2008 2009 Ratio 2010 2011 Earning Assets to Total Assets Ratio = Earning Assets/ Total Assets Years Ratios 2007 86.00% 83. High performance banks have a high ratio. Ratio is slightly decreases in 2008.00% 86.86% 2011 84.59% 2010 85.50% 86.30% 2009 85. but after it there is sharp decline in this ratio from 2009.68% Comments: This ratio shows how well bank management puts banks assets to work.81% 2008 86. But in order to compete in today highly competitive environment it is necessary for HBL that to enhance it performance by wisely puts its assets in beneficial projects.68%. Now in 2011 it is 84.50% 84.00% 85. . The above graph presents the HBL‟s earning assets to total asset ratio from 2007 to 2011.50% 85.Earning Asset to Total Asset Ratio 87. which is not a bad figure.
Now in 2011. it has decreased to 10. So it requires quick attention of management of HBL to serious steps to enhance its profitability.00% 2.00% 6.Interest Margin to Average Earning Assets Ratio 12.12% 2011 10. for it provides an indication of management‟s ability to control the spread between interest income and interest expense.00% 2007 2008 2009 2010 2011 Ratio Interest Margin to Average Earning Assets Ratio= Interest Margin/ Average Earning Assets Years Ratios 2007 9.22%. It increased between 2007 and 2009.00% 0.42% 2010 11. The above graph presents the HBL„s Interest Margin to Average Earning Assets Ratio from 2007 to 2011.00% 8.22%.29% 2008 10.00% 4. It means profitability of HBL decline in 2011 in comparison of 2009 and 2010. .60% 2009 11.00% 10. Comments: It is a key determinant of bank profitability.
121 times 2010 1121. But it gain increased .297 times 2011 Comments: The loan loss converge ratio helps to determine the assets quality and level of protection of loans.Off Years Ratios 2007 428.Loan Loss Coverage Ratio 1200 1000 800 600 Ratio in times 400 200 0 2007 2008 2009 2010 2011 Loan Loss Converge Ratio= Pretax Income + Provision for loan losses /Net Charge. This ratio decreased materially in 2008. The above graph presents the HBL„s Loan Loss Converge Ratio from 2007 to 2011.668 times 2009 587.05 times 2008 77.
00% 6. Now in .00% 2. It means now HBL manage to take less loss from loans and improve the eminence of its assets.00% 0. Now in 2011.00% 1.51% 2008 8.00% 5.54% 2009 8. it is at its peak figure in these five years.00% 3.00% 8.sharply in 2009.00% 2007 2008 2009 2010 2011 Ratio Equity Capital to Total Assets Ratio= Equity Capital / Total Assets Years Ratios 2007 7.00% 7. This ownership provides the cushion against the risk of using debt and leverage.78% Comments: This ratio is also called funds to total asset.00% 4.00% 9. This ratio is increased in these five years piercingly. Equity Capital to Total AssetsRatio 10.04% 2011 8. The above graph presents the HBL„s Equity Capital to Total Assets Ratio from 2007 to 2011. measure the extent of equity ownership in the bank.63% 2010 9.
5 10 9.78%.83 times 2011 9.12 times 2010 8. Deposits Times Capital Ratio 11 10.5 Ratio 9 8. which appears not to be good for HBL as compared to previous year.2011.178 times 2009 9.5 8 2007 2008 2009 2010 2011 Deposits Times Capital Ratio= Average Deposits/ Average Stockholder’s Equity Years Ratios 2007 10.32times Comments: .389 times 2008 9. it is reduces to 8.
it is only 9.The ratio of deposit time‟s capital concerns both depositors and stockholders.00% 66. More capital implies a greater margin of safety. So HBL should use that techniques or strategies that help it to enhance its capital. Now in 2011.32 times. it decreased sharply. The above graph presents the HBL„s Deposits Times Capital Ratio from 2007 to 2011.30% 2010 65.00% 60.00% 68. To some extent. In 2007. it was at its peak value but after 2007. Loan to Deposits Ratio 76.00% 70.97% 2009 70. indicating a bank‟s debt position.00% 64.00% 74. which is a good sign for HBL because it increases from previous year.20% 2008 74.47% 2011 .00% 2007 2008 2009 2010 2011 Loan to Deposits Ratio Loan to Deposits Ratio= Averages Total Loans/ Average Deposits Years Ratios 2007 73. sine more money is available for investment purpose.00% 58. it is a type of debt/equity. while a larger deposit gives a prospect of higher return to stockholder.00% 62.00% 72.
Loans make up a large portion of the bank„s assets.32% 2008 11.00% 0. and its principal obligations are the deposit that can be withdrawn on request but within time limitation.00% Comments: .00% 10.44% 2011 11.00% 12. Equity to Deposit Ratio 14.44% 2009 11. it is at its peak value but after it decreased.00% 2007 2008 2009 2010 2011 Ratio Equity to Deposit Ratio= Equity/ Total Deposit*100 Years Ratios 2007 9.00% 4.00% 2.00% 8. and it measures the bank‟s position with regard to taking risks.72% 2010 12.Comments: It is a type of asset to liability ratio. This is a type of debt coverage ratio. The above graph presents the HBL„s Loan to Deposits Ratio from 2007 to 2011.00% 6. In 2008. Now in 2011.
32% to 12.00% 20.00% 15.00% 10.00%. Net Profit Margin 35.This ratio represents the shareholder‟s equity and the total deposit of HBL from 2007 to 2011.55% .44% and then decreases to 11.38% 2010 29.00% 5.37% 2011 24.34% 2008 32.00% 30. As shown in above diagram it increases from 2007 to 2010 and from 9. It is like equity to debt ratio. Because deposits are our liability which is need to pay back to the account holders.00% 25.00% 2007 2008 2009 2010 2011 Ratio Net Profit Margin= Net profit after tax/Total Income*100 Years Ratios 2007 29.00% 0.58% 2009 24.
A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors.58% in 2008 and then again reduces to 24. It measures how much out of every dollar of sales a company actually keeps in earnings.00% 25.55% in 2011 which is not good sign for HBL.00% 5. The above graph presents the HBL„s net profit margin from 2007 to 2011 and it is 29.37% in 2010. Now it is 24.34% in 2007 and increase to 32.00% 15. or net profits divided by sales. Return on Equity 30.00% 20.38% in 2009 and 29.00% 0.Comments: A ratio of profitability calculated as net income divided by revenues.00% 2007 2008 2009 2010 2011 Return on Equity= Net Profit/ Total Equity*100 Years 2007 2008 2009 2010 2011 .00% 10.
50% 1.00% 1.19% 21.00% 2007 2008 2009 2010 2011 Ratio Return on Assets= Net profit after tax/Total Assets*100 .01% in 2010.Ratios 23.84% in 2011 which shows the reduction of profit on equity which is not a good sign. Return on Assets 2.50% 0.9% 24.84% Comments: The amount of net income returned as a percentage of shareholders equity. Now it is 17.00% 0.17% 16.50% 2. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. It is a measure of profitability of stockholders' investments. It shows net income as percentage of shareholder equity. As it enhance from 2007 to 2008 then reduce in 2009 and 21.01% 17.
The return on assets (ROA) ratio illustrates how well management is employing the company's total assets to make a profit.82% 2008 2. .55% in 2011 which shows that return on asset reduces and management need to give proper attention on company‟s asset. the more efficient management is in utilizing its asset base. The higher the return.13% 2009 1.Years Ratios 2007 1.55% Comments: This ratio indicates how profitable a company is relative to its total assets.06% 2011 1.45% 2010 2.45% in 2009 it is good in 2010 after which it reduces to 1. From 2007 it increases in 2008 and then it reduces to 1.
00% 84.45% 2011 87.00% 87.00% 85.00% 82.50% 2009 84.00% 88.Deposit to Total Liabilities 89. And it is beneficial for the bank when it is increasing one.60% in 2011.60% Comments: This ratio shows that at what percent deposits are held as compared to total liabilities because major part of bank liabilities are of deposits which banks are need to be pay back to the costumer at their demand. As shown in graph it reduces from 2007 to 2009 and then increases in 2010.50% 2008 85.50% 2010 87.00% 86.00% 2007 2008 2009 2010 2011 Deposits to total Liabilities = Deposits/Total Liabilities*100 Years Ratios 2007 88. Now it is 87.00% 83. .
00% 2009 33.00% 15. The higher level of investment indicates the lack of credit off-take in the market. It is 20% in 2007 and it reduces to 17% in 2008 and 33% in 2009 it reduces to 21%.00% 2008 17.06% Comments: Total investment to total assets indicates the extent of deployment of assets in investments as against advances.00% 30.00% 20.00% 5.06% in 2011. . Now it is 25.00% 2010 21.00% 10.00% 2007 2008 2009 2010 2011 Ratio Investment Over Total Assets = Investment /Total Assets * 100 Years Ratios 2007 20.00% 25.Investment Over Total Assets 35.00% 2011 25.00% 0.
40% 6. the more sluggish the firm's sales.20% 7.38% Comments: The total asset turnover ratio measures the ability of a company to use its assets to efficiently generate sales. This ratio considers all assets. It is increases from 2007 to 2008 and then reduces in 2009 and greater in 2010 7.97% 2010 7.00% 5.56% 2009 5.80% 6.80% 5.01%.38% which is not harmful but less than previous year. current and fixed.Asset Turnover Ratio 7.20% 6. as compared to historical data for the firm and industry data.01% 2011 6. The lower the total asset turnover ratio (the lower the # Times).60% 5. .40% 2007 2008 2009 2010 2011 Ratio Asset Turnover Ratio =Total Revenue / Total Assets Years Ratios 2007 6.60% 6.21% 2008 6. Now it is 6.00% 6.
00% 2009 90.23% Comments: This ratio measure the proportion of total assets financed by the bank„s creditor.00% 89.00% 2007 2008 2009 2010 2011 Ratio Debt Ratio=total Liabilities/Total Assets Years Ratios 2007 92. It is good for the bank because b HBL has less debt than its asses and liabilities are also decreasing.Debt Ratio 92.00% 90. The higher this ratio.86% 2011 90.50% 92.00% 2008 91. the greater the amount of other people‟s money being used to generate profits.50% 91. The higher this ratio. In 2010. the greater the bank‟s degree of indebtedness and the more financial leverage it has.00% 91.50% 89. It shows that HBL is now paying its debt rapidly.50% 90. it decreased.it is at its peak value in 2007 but between 2007 and 2009. .00% 2010 90. it again increased but decreased in 2011. The above graph presents the HBL„s Debt Ratio from 2007 to 2011.
it was lowest in 2009 and highest in 2008 which was 4.13%.Return on Deposit Ratio 4.50% 4.50% 3.50% 1.00% 1. .1% in 2008 but decreases in 2009 by 1.00% 3.50% 0.13% Comments: Return on deposit is basically calculated for the purpose of checking the increase in profit 4.50% 2.69% 2011 3.00% 2.85% 2010 3.10% 2009 2.25% and reaches at 2.1%.00% 2007 2008 2009 2010 2011 Ratio Return on Deposit Ratio =( Net profit before tax/ Total Deposit)*100 Years Ratios 2007 3.19% 2008 4.00% 0.69% and ultimately decrease in 2011 and reaches at 3.85% that is not a good sign for management and again increased in 2010 which is 3.
00% 2007 2008 2009 2010 2011 Advances to Assets Ratio =Total Advance / Total Assets Years Ratios 2007 59.00% 54.00% 52.64% Comments: This ratio shows the relationship between amounts of total advances to total assets.21%.91% 2008 58.82% 2009 55.00% 58.22% 2010 60.64% and was highest in 2010 which was 60.00% 48.64%. There is a fluctuation in this ratio in the previous years it was lowest in 2011 which was 52.21% 2011 52. .00% 60.00% 56. there was decreasing trend till 2009 and then increased in 2010 and finally decrease in 2011 at 52.Advances to Assets Ratio 62.00% 50.
49 2008 13.Earning Per Share 20 18 16 14 12 10 8 6 4 2 0 2007 2008 2009 2010 2011 Earning Per Share in Rupees Earnings Per Share = Profit for the Year Attributed to Equity holders of Bank/ Weighted Average no of Ordinary Shares Years Ratios(Rs) 2007 14. The EPS ratio should not be used in isolation without considering the capital required to produce the earnings. In 2007.70 2010 16. 14.49 but . The above graph presents the HBL„s EPS Ratio from 2007 to 2011. It is not necessarily a good value investing indicator. it was Rs. Earnings per share serve as an indicator of a company's profitability.18 2009 14.82 Comments: The portion of a company's profit allocated to each outstanding share of common stock.78 2011 18.
It again increased in 2009.82.2010 and 2011. Large deposit base and funds flow can help to avail related market opportunities . HBL should vigilantly work to take this figure up to a considerable point where it should look satisfactory to the investors and share holders. Faster market growth represents opportunity to grow and diversify Restoration of investor‟s confidence and pick up in private sector investment flows.425 branches with an international network of 48 branches in 26 countries 20% share of HBL in financial market Large Balance sheet size Decentralized authority WEAKNESSES: Unfavorable union activities and management conflicts Checking System is at intra-department level Weak marketing policies Nepotism & Favorism Infected portfolio still exists as bad debts Centralized management in particular areas OPPORTUNITIES: Opportunities for growth and expansion in cash management.18. Now in 2011. SWOT ANALYSIS STRENGTHS: Goodwill & historical background Professional and well trained staff Largest customer base HBL is Pakistan's largest commercial bank HBL has a domestic network of 1. it is Rs.after it decreased.
THREATS: Adverse & unstable government policies Political instability Advance technology Competition from other banks PEST ANALYSIS AND ENVIRONMENTAL SCANING A broad view of market is important when management is interested in introducing better services for customers. see the shifting requirements of the buyers. Identification of external and macro factors that influence buyers and thus change the size and composition of market overtime involves initially building customer profiles. evaluate changes in competitors positioning and guide the choice of which buyers to target and classify them according to respective segments. Rapid technological change. These influences include: Political and legal environment Economic trends Socio cultural environment Technological factors . global competition and the diversity of buyers preferences in many markets require the constant attention of the market vouchers to identify promises business opportunities.
Advance for non-productive investment should be stopped. Implantation on the rules. ATMs should be installed in small cities as well. The influence of employees union should be minimized. It will be helpful in sharpening their abilities and developing their skills. Staff should be provided professional training in marketing. The customer satisfaction should be guaranteed through rapid delivery of financial products and services Habib bank should focus in the services of their educational institutes The training should be proper time period Right person on right job should be placed Proper staff should be in the branches. selling. Bank should emphasize on hiring of business graduates and computer experts for the simex system. finance and computer. regulations and policies should be done at all cost. . The political influence should be minimized on all type of the operations of the bank.
sbp.org.secp.asp http://www.pk/index.pk/f_links/index.com.gov.asp http://www.sbp.pk/ .org.com/ http://www.kse.http://www.hbl.pk/ http://www.
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