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With the worthy grace of Almightly Allah who gave us strength, courage, preservation

and patience to finish the report would have never come true.

I am delightful to thank our respected Teachers and Principal, in respect of their True,

Sincere, Elder and Valued guidance and pertinent suggestions for the subject matter.

I am thankful to the management of Satellite Town Branch Mirpurkhas, whose great

assistance and support rendered us an opportunity to make this report. And all the

respected staff members of the HBL Satellite Town Branch Mirpurkhas, and sincere co-

ordination and information, which supported us during the internship program.




The University of Sindh was established under Act No. XVIII 1947. An Act to

establish and in corporate a University in the province of Sindh.

Is the second oldest University of Pakistan.

The University of Sindh if the first University of Pakistan which introduced

computer science and technology courses (then known as digital communication)

in 1974.

The University of Sindh is the first University which started Bachelor and Masters

Degree Programs in Information Technology, Multimedia and E-Commerce.

The University of Sindh is the first public sector University of Pakistan which

realizing the importance of private sector participation in imparting quality

education in Computer Science and Information Technology, adopted

comparatively liberal affiliation policies, as a result it presently has the largest

enrolment in these areas of studies and shall soon emerge as the larges producer

of qualified computer and I.T. and Business Executives in Pakistan.

The revised Sindh University Act of 1972 envisages the mission of the University

as dissemination and advancement of knowledge to bring about social-economic

change in the community.


The University will offer degree program at both undergraduate and graduate levels in the

disciplines of the liberal arts, teacher education, sciences, management, and technologies.

The programs will have a strong component of general education necessary for students

to develop an interest in values and to encourage intellectual pursuits, personal

development, and a commitment to life=long learning and service.

University will provide specialized associate degree and certificate programs to

meet the educational, economic, and social needs of the region.

University will provide opportunities for personal growth through a wide variety

of co-curricular and extra-curricular, cultural, development and recreational

programs, activities, and student organizations.

University will develop International relationships and linkage with appropriate

institutions and agencies for mutual enrichment, promoting education, health

services and technology.

University will maintain environments that enhance the professional and personal

development of students faculty and staff.




The College of Modern Science commonly known as CMS was established in 1998 to

cater the needs of quality education in business management, computer science and

information technology. The main campus of the college is located at a peaceful and posh

area of Unit # 2, Latifabad, Hyderabad on main road linking auto bhan with Shah Bhittai

Hospital. The college has established centers and campus at Mirpurkhas, Karachi,

Nawabshah, Lahore, Faisalabad, Multan and Rahimyar Khan to conduct the job oriented

degree programming Business Administration Computer Science and Information


The college has excellent computer and electronic labs, ever growing libraries,

environment friendly class rooms, separate common class rooms for boys girls and above

all an enviable learning atmosphere. The medium of instruction at the college is English.

The faculty members are highly qualified and motivated the hold higher educational

degree from renowned foreign and Pakistani Universities.


The CMS has a mission to promote the growth of intelligent, highly motivated and

ethically responsibly Business management and Computer Scientific through fostering an

environment of integrity, fairness, trust and mutual respect. The students will find their

education challenging the work load demanding and the faculty expectations high. The

breach of academic and ethical codes not go unnoticed at CMS as after two warnings

from faculty and Administration they students still defying this code would be asked to

leave the college.

CMS was formally inaugurated by the Honble Govenor of Sindh on 26 th. February 1998.

It has the unique distinction of enjoying the affiliation of the University of Sindh

Jamshoro for master and bachelor degree programs in business administration computer

science and information technology under semester system. The relevant degree shall be

awarded by the University of Sindh Jamshoro on successful completion of the course of

study at the college.


It is the partial requirement to obtain of MBA (Master of Business Administration)

To intern means to train in any particular field under the supervision of specialist in wide

range of fields. Internship gives students practical exposure to the corporate environment

and the business scenario, student come back well equipped with practical experience

internships a job experience while students going through the MBA degree program

students often base their career decisions an opportunity to get inside knowledge about

the organization through this training before they master.



Economic development of a country immensely depends on the efficient service of banks,

industry, trade, commerce, agriculture and many other economic activities are so such
dependent on banks that we can not think of then without banks.

Banks plays a vital role in maintaining the stability of price level in country. In other
words we can say that economic development and prosperity of a country is connected
with the development of a good banking system.

Banking effects great economy in metallic and currency. The greater part of the countrys
business is settled by cheques, bank drafts without the use of coins or notes. The use of
cheques also fees the public from the risks of loss where the use of coin and notes would

Bank collected small sums lying idol with people and increase the supply of capital.
Banks are store houses of money, collected from various sources which they lay out in
various enterprises or lent out to those who have got the talent but lack capital are given
opportunity to show their worth.

Banks are not only finance home trade and industry, but also make possible international
payments by accepting and collecting bills of exchange by issuing letters of credit and
foreign trade is developed.

Banks create the habit of saving and thrift among the people and the collected saving are
invested by the clients of banks in productive activities.

Banks collect the savings of the individuals and institutions and in this way circulation of
wealth takes place and the hoarded wealth is mobilized for the development of the
country. Banks create, which in addition to money in circulation and bridges the time gap
between the manufacturer and marketing of a product. This gap is filled by banks giving
loans to the industries and production of wealth does not suffer.



The word Bank itself is drive from the words Banco Bancus or Bancus, which

means a bench. The early bankers, the Jews in Lombardy, transited the business of money

exchange on benches in the market.

Banking is an ancient institution. It is in fact as primitive as human society. Modern

banks have developed from very old system of banking. It has been growing side by side

with the human civilization. Historians are of the opinion that perhaps they were the

Babylonians who developed banking system as early as 2000 B.C. There was all because

of the prevailing respect and confidence in the clergy. King Hammurabi (1728-1686

B.C.) the founder of the Babylonian Empire drew up a code were in he laid down

standard rules of procedure for banking operations.

In Greeks some temples as those of Ephesus and Delphi, were the most powerful and

biggest banks of their time where the people deposited their money and other valuables

for safety and security. The Romans organized and regulated the conduct of private bank

in such a way that outmost confidence was created in them. They were familiar with the

use of cheques and bill of exchange.

The sub-continent society was also familiar with banking system right from the

beginning. Borrowing and Lending of money existed in this area between 2000 and 1400

B.C. and banking institution existed in one form or the other.


G.Crowther in his book An out-line of money suggests that banker has three ancestors.

Firstly-Goldsmiths, Secondly-Merchants, and Thirdly-Money Lenders.

In Europe, Eastern Bankers were money changers. AT that time, these people took an

advantage of the process and started keeping deposits of valuables and jewelries on the

basis of their sound financial position in the community. The origin of banking which

started in the 12th. Century after the fall of Roman Empire subsequently developed with

the developed with the development of trade. The Jewish merchants to Lombardy

developed banking system. May of these Lambards (Merchants) migrated to England in

the 14th. Century, were the pioneers of Banking.

The Bank of Venice established in the year 1157 or 1171 A.D. is perhaps amon the first

public banking institution. Other banks such as Bank of Barcelona in Spain was founded

in 1401, the bank of Geneva (Italy) in 1407, the Bank of Amsterdam in Holland was

established in 1609.

In England development of bank took place in the days of Elizabeth-I. In 1640 public

banking started. The bank of England was established in 1694. In 1935, Reserve Bank of

India was established. The State Bank of Pakistan was inaugurated by the Quaid-e-Azam

1st. July 1948.



The history of banking system in Pakistan dates back to independence of Pakistan in

August 1947, when various banks transferred their Headquarters and funds to across the

border likely to fall in India. This trend emerged due to dominant role of Hindus in pre-

partitioned Indian Banking System.

According to Menial there were 3496 branches of Indian scheduled banks in the

undivided sub-continent as on 1st. March 1947 out of which on 487 branches were located

in areas presently constituting Pakistan. However the number of branches of scheduled

banks drastically declined to 195 to 487 immediately after partition.

At the time partition, there were only tow banks having the honor to be the first

commercial bank of Pakistan namely Habib Bank Limited, which was setup in 1941 with

its Head Office in India and Australia Bank Ltd., which was established in 1944 with its

Head Office in Pakistan.

Following the partition, an expert committee was setup and this committee recommended

that the Reserve Bank of Pakistan of India being the Central Bank of Pakistan and the

undivided India should continue function to as Central bank of Pakistan and the Indian

currency notes would continue to be legal tender in Pakistan till 30 th. September 1948.

Subsequently it was decided to have separate Central Banks and the State Bank of

Pakistan was setup and started functioning from 1st. July, 1948.


Thus history of Banking System in Pakistan started with the establishment of the State

Bank of Pakistan which was inaugurated by the Quaid-e-Azam Mohammad Ali Jinnah on

1st. July 1948. The State Bank of Pakistan played an active role in the development of

banking system in Pakistan. One of the major tasks faced by the State Bank of Pakistan

was issuance of Pakistan currency notes in place of Indian currency. The Pakistani

currency notes issued during October 1948 included the denomination of Rs.10/- and


Consequently three Banks were established which includes Muslim Commercial Bank,

formed in September 1948, bank of Bahawalpur in October 1948 and national Bank of

Pakistan 1949. Habib Bank also transferred its Head Office from Bombay to Karachi due

to partition in August 1947 and it was assisted by the State Bank to finance domestic

trade of country.

By the end of December 1973 the total number of Pakistani Scheduled Banks increased

to 13. After the nationalization of Commercial Banks branches exceeded 6700 in 1985.

Now in nearly 1990s the Government of Pakistan has also established First Woman Bank

to encourage women for making saving and investments to provide them more job

opportunities and to seek their active participation in the development of national



Habib Bank Ltd. is a commercial bank and transacts all types of banking business. HBL

was established in August 1941, the first branch was laid down at Bombay by the Quaid-

e-Azam, the first account was opened of Mohammad Ali Jinnah. The bank has a

distinction as a commercial bank under umbrella of State Bank of Pakistan. Since

establishment in 1941 has been playing leading role in commercial banking in Pakistan.

It has 1425 branches in Pakistan and 55 branches are in abroad. It has offices at all title

major financial centers all over the world including pride place like as Wall Street New

York and United Nations Plaza. It has International network including branches at

Bahrain, Dubai, AbuDhabi, Cairo, Paris, Frankfurt, Hong Kong, Kuwait, Beijing,

Bradford, Brimingham, London, Manchanter, Tokyo, Chicago, Washington, Columbo,

Kathamdo, Tehran etc.

In Pakistan the bank provide the complete banking facilities to the people at all over the

branches operatoring even far-flung Northern areas. Habib Bank is the first bank in the

country to introduce and implements supervised the rural credit program to helps small

farmers to obtain loans at these doorsteps on easy terms and conditions. It has also

played pioneer role in the introduction of profit-n-loss sharing system (PLS). As a major

step towards Islamazition of a economy.

In addition to the normal business operations, the bank provides special loan facility for

higher education Qarz-e-Hasna to deserving poor students for medical and engineering

colleges in Pakistan. The Bank has well equipped research department to work and


advice on developing trend of finance and Banking, Besides a very well managed library

in Head Office Karachi.


The history of Habib Bank Limited in part of Pakistans struggle for economic

independence when HBL came into existence in August 1941. since then Habib bank

playing continuously important role in Pakistan economy . at the time of Hindu pak

partition the only Pakistani bank was exist in scenario Habib bank made great support to

establish the country.

In july 1948 when state bank of Pakistan was established the bank needed liquidity to

flourish the bank Habib Bank played important role and provided the major funds in this


Before nationalization in 1974 the was growing year by year and its market was more

than 50% out of 100%. In 1974 the socialism was on the peak and government of that

time nationalized all the banks and industries. Which was wrong decision of the

government. After nationalization the banks were falling down into losses.

In 1990 after failing the communism the capitalism again emerged and government

decided to privatized all the banks. In this regard the government appointed the

professional management from out side the banks. the new management gave the task to

get profit from the loss.

First, the management took the initiative, in the first phase in 1997 they made restructure

of the and closed near about 500 branches across the country and excess staff reduced by

offering Golden shake hand. In this exercise 7500 employees got Golden hand. they also


restructured the department and split into different part to boost the organization

performance as retail banking, corporate, human resource, finance, and IT departments


Human resource department established a MDI (Management Development Institute )

To train the employees modern banking and technology owing to this exercise the

employees become competitive and got produced better result.

After becoming the profitable organization, in Dec2003 the government sell-off the 51%

equity of bank to Agha khan foundation for Rs.22 billion and handed over the

management to them.

Now the Habib Bank Limited is running under the management of the Agha khan

foundation successfully. After the privatization the launched a lot of new products e.g

flexi loan, auto finance, house finance etc.

Habib Bank Limited is now in No.1 position in commercial Banking and providing good

services to its 5 million customers throughout the country and overseas. Habib Bank

Limited vision to make it great bank of the locally and growing globally.



There is a prescribed procedure for opening of saving and current accounts. Following

steps are involved while opening a new bank account.

Application form for opening of account.


Signature Card.

Pay-in-slip Book.

Pass Book.

Cheque Book.


A person who wishes to open a Bank Account is required to complete this form. The

personal information is to be furnished. The applicant signs the declaration to the effect

that he has understood the rules and regulations of the bank.


As required under the banking law, the new customer needs to be introduced by the

account holder of the same branch where the account is being opened. The manager or

any other bank officer may introduce he new customers it they know them personally.



At the time opening an account a specimen signature containing three signature is

verified when the cheque is presented for payment.


After completing the necessary formalities cash or cheques is deposited in the bank by

completing the pay-in-slip. This pay-in-slip consists of two parts; on is used by the bank

and other part generally known as counter-foil is retained by the customer. The customer

fills-in this slip by showing the account number, amount to be deposited in cash or



This is an account book which is provided free of charge by the bank to the customers.

All entries relating to withdrawal of cash and deposits are made in the Pass Book. Pass

Book are generally maintained for saving bank accounts and current accounts.


After completing all formalities for opening saving or current accounts, a cheque book is

issued to the customer for withdrawing cash from his or her account at the time of need.

The cheque book contains minimum 10 leaves and maximum 100 leaves. The bank also

charges excise duty. Every leaf contains two parts. The left hand part is called

counterfoil and the right hand part is a cheque which is presented for receiving cash

from bank. The counterfoil is retained by the customer. The cheque book also contains an

application form for issue of an other book when all the leaves are utilized.



The salient feature of the Profit & Loss sharing saving accounts to be opened in HBL is

as under:

These accounts can be opened by individuals in their own single or joint names

can open the accounts. The PLS saving account can also be opened for provident

fund or other benevolent funds of companies, firms, organizations of welfare and

educational institutions. PLS saving accounts can be opened with a minimum

account of Rs.100/= only

Money can be withdrawn from PLS saving accounts only through cheques.

The cheque book containing leaves of cheques is supplied to the customer after

payment of Rs.3/= per leaf including excise duty.

The share in the profiles a minimum balance of Rs.100/= must be maintain in the

account. The minimum balance of 6th. And last month of the year will qualify for

the profit.

The profit will be calculated on the basis of monthly minimum balances for the

period of six months i.e. profit.

The Head Office of HBL determines the profits of loans on PLS saving deposits

and advises its branches, the rate a time of distribution of these profits to

concerned PLS saving account.


Withdrawal from PLS saving accounts is allowed not after then times in a

calendar month and for a total month not exceeding Rs.25000/= for withdrawals

of large amounts. 7 days notice in writing is required to be given.

In the event of contravention of rules shall be deducted from his total profit

earning products.

There shall be no restriction to maintaining the maximum balance in PLS saving


On the 1st. of Ramadan, every year the zakat @ 2 will be recovered from the

deposits on title balances of that day. But the declaration of zakat, is given by the

depositor, or he is Non-Muslim no Zakat will be recovered from his account

balance. In the same day, zakat is not recovered from the amount in which the

balances are below or up zero a prescribed limit as declare by the Administrator of

Zakat Pakistan. This system of accepting deposits has been started in HBL since



In the case of Fixed Deposits are made for a fixed period, the money deposited cant

be withdrawn before the expiry of the period fixed or before giving an advance notice

to the bank. Fixed deposit carries a higher rate of interest than the other types of bank

accounts, and the rate of interest rise with the length of the period and the amount of



For opening the fixed account, the bank grants to the depositors a Fixed Deposits

Receipt (FDR) which is not transferable to any other person. When the deposit is

withdrawn, the receipt must be provided to the bank.


The salient feature of the Profit & Loss Sharing Term Deposit accepted by HBL are given

as under:

The PLS term deposits are accepted from individuals in their own single or joint

names, companies, firms and other organizations.

The PLS term deposits receipts are issued for any amount. There are no minimum

or maximization limits in a Single Term Deposit Account.

Rendering cash only can make the term deposits.

PLS term depositors may be allowed some facilities against the security of these

receipts credit, after marking lieu of the relevant receipts and subject to

recovery of a service charge.

Under Term Deposit Scheme, the depositors have case to earn profit immediately,

after respective maturity date, but they have been offered a liberal facility. In case

the depositors fail to withdraw their term deposits on maturity their funds will

remain temporarily in use and out of profits earned. A reasonable share would

occur to such overdue PLS Term deposits at the rates declared on PLS sharing



The Head Office of the bank determined the Profit or Loss on PLS term deposit at

Bi-Annual intervals.


The end of June and December each year and payment of profit to or deduction of

loss, if any from the PLS term deposits is to be made. The deposits for longer period

will earn a little more profit that those for shorter period deposits.

In case of encashment before maturity but after completion of 03 months

profit will be paid for the entire period to the PLS saving accounts after

deduction zakat, if any.

If PLS term deposit expired and the depositor requires with in 01 months after

expiring date for reinvestment, the PLS term deposit will be reinvested for the

desired from the date medially following the expiring date.

Zakat or the face value PLS term deposits will be recovered as may times, as

the valuation dates i.e. 1st. Ramadan fall between the date of issue and the

date of expiry of the deposit.



HBL has also introduced Foreign Currency Account for Pakistan and Foreign nationals in

Pakistan and abroad. This scheme assures its customers of better profit and superior

service. The salient feature of Foreign national to is as under:

It offers Pakistani or Foreign National to operate a foreign currency account with

any one of their unauthorized branches spread all over the country.

Deposits of this account will be acceptable in all convertible currencies, but

accounts will be maintained on the customers choice in US dollars, British

Ponds, German Mark or Japanese Yen.

Depsoits may be in the form of remittances in foreign currency; travelers cheques

on the bank counter will be accepted.

The customer can make withdrawals and transfer to any where in the world.

All the deposits and profits in customers foreign account are exempted from

zakat or wealth tax.

The customer sources are protected from any security of concerned authorities.

The HBL has over 1425 branches at home and aborad. Of these more than

branches authorized and fully equipped to deal with all kinds of foreign currency


(HBL has world wide network of branches and it has associate in Saudi Arabia

Bank Al Jazira and National Exchange Company in U.A.E. to facilitate the

customers in Pakistan, Saudi Arabia and U.A.E.)




Bank promotes the facility of remitting the funds with in the country and outside the

country and with in the country certain limits. Usually money remitted through

Demand Draft, Telegraphic Transfer. The Institution provides the facility of

remittance the funds within the city, within the country and also outsides the country

(Foreign Remittance) within certain limits.

The means of transfer of funds/amounts from one branch another with the country

banking instruments is terms as inland Remittance.

a) Demand Draft (DD)

b) Pay Order (P.O)

c) Telegraphic Transfer (T.T)

d) Mail Transfer (M.T)



It is written order drawn by one of a bank received from other branch of same bank under

special agreements to pay certain sum of money to or to the order of specified person.

The bank charges the commission according the amount.


A pay order is a written document for payment, made in receipt from issued and payable

by the bank to the person named and addressed their Pay Order can be made for the

branch of same bank within the same city, there is option to change the bank (name) but

that banks commission is fixed according the amount.


Transfer of funds from one branch to another branch of the same bank under special

arrangements for the payments for the payment to beneficiary through telegram, telex,

fax and telephone is called Telegraphic Transfer. It is necessary that there should be

account of the person from shown the T.T is made instead of amount (mentioning) there

are some special codes, the bank charges are the same as Demand Draft.


Transfer of funds from one branch to another branch of the same branch within city or

out side through mail courier services is called Mail Transfer.


Customer fills the application to get license for the lockers. There are certain types of






The relevant officer hands over the keys to the customer. A customer is charged certain

rates like for; small locker Rs.1000/=

Medium lockers Rs.1500/= and

Large locker Rs.2500/= is charged for a year and chargeable for each year.



Advance Department receives the title applications from intending borrowers and submits

the same applications to higher authority after processing, for approval. The advances can

be following nature.

Agriculture advance to farmers.

Short-term advance to businessmen.

Long-tern advance for setting Industry.

Medium-term advance for working capital.

Seasonal advance to c=Cotton Gainers, Rice and Sugar Mills.



The net profit of HBL Satellite Town Branch Mirpurkhas of 31 st. December was 2005

Rs.11.352 as against Rs.9.245 in 2004, a


Travelers Cheques:

HBL Pak Rupee Traveler Cheques (Muhafiz) A symbol of convenience and safety.

Another service which shows our obsession towards serving better.


o Acceptance throughout the country.

o As good as cash and customer can cash it throughout 1425 branches in Pakistan.

o No validity restriction of service charge.


Be a part of an inter-connected global village with HBL Master Credit Cards. Paying

through Credit Card is the way of future. It is safe, handy widely accepted throughout the



Automated Teller Machines (ATM)

Pak Rupee Travelers Cheques.

Visa Value Debit Card.

Master Credit Card.

Auto Finance.

Flexi Loan.

Life Style.

House Finance.

Tele Banking.


Online Banking.



1. Automated Teller Machines (ATM): It is an electronic machine, which is

used to facilitate to customer round the clock cash drawing. Habib Bank

has more than 500 ATM throughout the country. It has also intend to

install its all over the branch in future.

2. Pak Rupee Travelers Cheques: It is a safe and secure instrument that is

providing convenience to their customer to carry from one place to

another place. It is safe because there is no dangerous of theft or looted.

3. Value Visa Debit Card: Value Visa Debit Card is unique product of

Habib Bank which offers to their customer world wide and accepted all

over the country and overseas.

4. Master Card: Master is a credit facility, which HBL offers its customers

at low markup rate. It is also accepted all over the world. Its expiry period

of one year and markup charge after using 45 days.

5. Auto Finance: Auto Finance loan introduced in 2000 to see the demand of

autos HBL launched a attractive product by the name of Auto Finance at

low markup rate for five years and to have a comprehensive insured it is

more popular in customers Habib Bank has disbursed millions of rupee in

this field so far.

6. Flexi Loan: Flexi Loan is another unique product of Habib Bank, which

offers to government employees, private organizations employees, Arm

Forces employees and multinational companies employees on their

companies recommendation. It is also low markup product for five years

easy monthly installments, which is also insured.


7. Life Style: Life Style is another consumer product, which offers home

appliances to salaried persons and business class, it s low markup and easy

monthly installment for five years.

8. House Finance: House finance is major product of consumer finance,

offers to salaried persons and business class to build their own house. The

Bank offers this facility from Rs.300000/- to Rs.7500000/= at the rate of

12% p.a. to its customers. Habib Bank still disbursed million of rupees in

the field.

9. Tele Banking: Tele banking is a communication banking to which

customers facilitate to transfer their money from one account to another

account or from one place to another place to be at home.

10. E-Commerce: E-Commerce is an aspect of electronic commerce in which

transaction are made through computer. Computers are linked through

Internet and customers are interlinked to each other and make buying and

selling process or transfer their money through computers.

11. Online Banking: It is also computer based transaction in which customers

transferred their money through computer from one place to other places

and world wide.

12. S.W.I.F.T: Swift is fast tracking service to provide their valued customers.



Following are some suggestions, which may help to maintain its credit ability and its


Lack of handsome marketing approach. Bank should take interest to web-

marketing and tele-marketing.

The HBL should introduce the use of computers in order to control with the hectic

business activities. It will also help to reduce the extra burden of manual work.

The bank should more emphasize on providing efficient customer services, they

should provide more facilities to customers.

Every thing should be computerized. So that people deposit more in this bank.

There should be effective communication between employees so they work

together and efficiently produce of high level of output.

Extra counters should be brought in order to facilitate during the rush days the

difficulties faced by the loans should be extended.


The HBL increase the number of its foreign branches in order to compete with

other banking institutions.


During the period of our Internship at Habib Bank Limited Satellite Town Branch

Mirpurkhas. We have drawn the following conclusion.

Habib Bank Limited have wide network of branches all over the country as well

as all over world.

Habib Bank Limited has been in service to its customers since last 65 years.

Habib Bank Limited provides numerous facilities to its customers as well as its

Staff Officer and Executives, which give them a sense of self worth.