Habib Bank Limited (HBL)

Introduction

Habib Bank Ltd is a Banking HBL which is engaged in Commercial & Retail Banking
and related services domestically and overseas. HBL has grown its branch network and
maintained its position as the largest private sector bank with over 1,750 branches and 2,000
ATMs globally and a customer base exceeding eleven million relationships. The Government of
Pakistan privatized HBL in 2004 through which AKFED acquired 51% of the Bank's
shareholding and the management control. The remaining 41.5% shareholding by the
Government of Pakistan was divested in April 2015. Today HBL 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 HBL leadership In Pakistan’s corporate
ground.

ESTABLISHMENT

Habib Bank Limited was established by Mr.Muhammad Ali Habib (Late) on August 25, 1942 at
Bombay.

It was the first Muslim Bank of the sub-continent.

It was Established with a Paid up capital of Rs. 2.5millon

HBL was the first commercial bank to be established in Pakistan in 1947.

Functions of HBL

 Branch Banking
 Rural Banking
 Consumer Banking
  Corporate and investment Banking
 Finance
 Financial institutions and global trade services
 Global Compliance
 Global Operations
 Islamic Banking
 Retail Banking

Mission
To make our investor(s) prosper, our staff excel and to create value for our stakeholders.

Vision

Enabling people to advance with confidence and success.

Objectives

. To earn profit.

 To promote and boost up business sector inside the country.

Act as a media of exchange

. To contribute to gross domestic product (GDP).

 Maintain a satisfactory deposit mix.

 To mitigate unemployment problem.

 To help to grow entrepreneurship.

 Increase loan portfolio diversification and geographical coverage.

 Provide finance specialized services to the export.

 To help to boost economic development.

 SWOT Analysis

Strengths

 Name strength (good will)

 Wide range of services.
 Its internal computer system is reliable and easy to use and they maintain data properly.
 . HBL employees interact with their clients as if they are their personal friends and discuss about
their problems as their own
 The officers of HBL are professionals in the banking world.
 HBL has a skill or capability that enables to conceive and implement its strategies
 HBL’s car to car financing scheme is unique in auto loan segment.
 Customer enjoys the services at the residential localities.
 HBL enjoys deep relations with all industries in Pakistan
 HBL focuses on consumer banking by lucrative schemes, products and services suiting best to
the wants and demands of the customers.
 24 hours cash access and safe payment products for high value transaction.
 HBL is the larger commercial bank in Pakistan with the network of over 1750 domestic and
international branches.

Weaknesses

 Less trained staff.

 Lack of information technology.
 Highest number of branches effecting the proper maintenance and difficulty in providing same
working environment at the each branch
 Lack of customer feedback.
 Low job satisfaction.
 Victim of political, legal and socio-cultural pressures
 .Lack of professionalism in the branch employees mostly.
 Opportunities

 Cost reduction
 Master card
 Government is supporting very bold steps of bringing and promoting IT in Pakistan. HBL has an
opportunity to improve in technology.
 Further reduction in intermediation costs possible, with improving technology.
 HBL provides opportunity to utilize its skills and efficiencies in leasing business.

Threats

 Low discount rates.

 Prevailing circumstances increases the difficulties the organization’s.
 For the last of 3 to 4 years, Pakistan is facing economic and political instability which is a big
threat.
 Loss of confidence of overseas customers due to freezing of accounts.
 Increase in regulations from State Bank of Pakistan may affect its business.
 Growing global technological advancement
 Advance services by foreign banks to their customers.
 PESTEL Analysis

Political Factors

 Changes in laws and policies which can be in favor or against the HBL.
 The government of Pakistan has privatized most of the banks. The number of government
owned banks have declined constantly, so these changes directly affect HBL.
 Most of the banks have to finance under the political pressure which becomes bad later on.
 Corruption also impact on the HBL

Economic Factors

 Economy of the Pakistan shows a general slow down and most of the business showing a
negative growth which have potential impact on the growth of the HBL.
 General rise in inflation leads to decrease in the value of the money over the years and customer
demanding high profit rate to meet the inflation and banks unable to give them such rates.
 Literacy rate of the country in lowest in the world and people of the country unable to use new
product of the bank like online banking, call centre, Debit and Credit cards etc.

Social Factors

 98% people of Pakistan are Muslim and interest is prohibited in their religion and they are
reluctant to use the services of the financial institution and HBL have not entered in Islamic
Banking.
 Most of people of Pakistan are not using the banking channel to run their business transactions
due to lack of knowledge of product of the bank.
 New Government regulations regarding deduction of With Holding Tax keep in the people away
from the financial institution because they don’t want to pay Tax to Government.

Technology Factors

 Change in technology is so rapid that financial institution has to invest a lot in buying the new
technology and training their employees to use them.
 HBL purchase new System for interpretation of quantitative and qualitative data to make
financial decision.
 HBL has purchased software called as “MISYS” from a Singapore firm. In 2005, it installed the
system in one branch in Karachi and in its Singapore Branch. After its successful launching, it
has now installed MISYS in about 300 branches in domestic and overseas branches.

Legal Factors

 The banks in Pakistan have to perform their functions in line with SBP directives (regulators),
 Country laws with regard to maintenance of secrecy of information about the customers.
 All the nationalized banks except NBP have been privatized through Privatization Commission o
f Pakistan.
 Health and Safety Act aims at ensuring health and safe workplace for the workers.
 Mid Term Report

Strategic Management

Submitted To

Ms. Nosheen Sarwat

Submitted By

Muhammad Shakeel

Roll #

MB2M-18-49

Institute of Management Sciences Bahauddin Zakariya University Multan