Internship Report

On

BANK AL HABIB LTD.

By

Adeel Sajjad

161260

Session

2016-2020

Department of Business Administration

Air University, Multan Campus

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DEDICATION

I want to dedicate this report to my Parents .who help me a lot in every step of my life .Their

support make me strong to doing difficult task in my life .There prayers help me in solving hurdles

in my life. May Almighty Allah bless them with happiness.

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Acknowledgement

All praise to Almighty Allah, the most merciful and compassionate, who give me skills and

abilities to complete this report successfully.

I am thankful to all my colleagues’ members at bank.

I found every one very co-operative and helpful for providing me the theoretical as well as

practical knowledge about the function and operation of the bank.

I am also thankful to Branch Manager Mr. Adeel Hussain Assi who give me the opportunity to

avail practical experience.

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Executive Summary

In old era the banking sector was not modern all the record was made by hand, but now there is

the modern banking system. Every bank want to give new and technological changes .Now the

banking system of Pakistan is converted on IT base (computer, ATM, Online banking) .There is a

lot of involvement of IT everything in the bank is based on software. Employee’s attendance

toward the account opening of the customer everything is done on computer.

I want to get the exposure of the modern banking system So , I get my Internship in Bank Al Habib

to know the practical and theatrical knowledge of banking .There I learnt a lot about the

organization culture of bank .And has knowledge about the different departments of the bank (

Cash , Finance , Clearing , Account opening etc). There I learnt how all the departments are aligned

by each other.

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Table of Content

Overview of the Organization ....................................................................................................................... 1

History of Bank .......................................................................................................................................... 1
DAWOOD HABIB GRUOP........................................................................................................................... 1
VISION AND MISSION.................................................................................................................................... 2
Vision Statement ....................................................................................................................................... 2
Mission Statement .................................................................................................................................... 2
Competitors .............................................................................................................................................. 4
Organization Structure.................................................................................................................................. 4
Board of Directors ..................................................................................................................................... 4
Chief Executive .......................................................................................................................................... 6
Company Secretary ................................................................................................................................... 6
Bank Al Habib Hierarchy Structure ............................................................................................................... 7
Number of employees .............................................................................................................................. 8
Main Offices .............................................................................................................................................. 8
Departments of Bank Al Habib...................................................................................................................... 8
HR Department ............................................................................................................................................. 8
Cash department .................................................................................................................................... 10
Clearing department ............................................................................................................................... 10
Finance department................................................................................................................................ 11
Locker department ................................................................................................................................. 11
Account Opening department ................................................................................................................ 12
Remittance department.......................................................................................................................... 12
Transfer department............................................................................................................................... 12
Comments on the Organization Structure .............................................................................................. 13
Plan of the Internship Program ................................................................................................................... 14
Introduction of the Organization ............................................................................................................ 14
Date of starting and ending .................................................................................................................... 14
My Internship started from May20.2019 to June 30,2019..................................................................... 14
Name of department get Training .......................................................................................................... 14

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Products and Services ................................................................................................................................. 15
Current Account ...................................................................................................................................... 15
Al Habib Basic Banking Account (BBA) .................................................................................................... 15
Al Habib Asaan Current Account............................................................................................................. 15
Al Habib Asaan Remittance Current Account ......................................................................................... 15
Al Habib Apna Individual Current Account ............................................................................................. 16
Al Habib Current Plus Account ................................................................................................................ 16
Al Habib Pensioner’s Current Account.................................................................................................... 16
Saving Account ............................................................................................................................................ 17
Al Habib Monthly Saver Account ............................................................................................................ 17
Al Habib Senior Citizen Account.............................................................................................................. 17
Al Habib Young Saver’s Account ............................................................................................................. 17
Al Habib PLS Saving Account ................................................................................................................... 18
Al Habib Asaan Saving Account............................................................................................................... 18
Al Habib Asaan Remittance Saving Account ........................................................................................... 19
TERM DEPOSIT ............................................................................................................................................ 19
Al Habib Special Saver Certificate ........................................................................................................... 19
Al Habib Treasurer’s Call ......................................................................................................................... 20
Al Habib Mahna Munafa Account ........................................................................................................... 20
Al Habib Salana Munafa Account............................................................................................................ 20
Al Habib Zamanat Account...................................................................................................................... 21
LOANS ......................................................................................................................................................... 21
Housing Finance ...................................................................................................................................... 21
Cash Finance ........................................................................................................................................... 22
Apni Car Auto Finance............................................................................................................................. 22
Prime Minister Youth Business Loan Scheme ......................................................................................... 22
Weekly Journal ............................................................................................................................................ 24
Week one ................................................................................................................................................ 24
Account opening ................................................................................................................................. 24
In Current Account : ............................................................................................................................ 24
Saving Account: ................................................................................................................................... 25
Week two ................................................................................................................................................ 26

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 Clearing ............................................................................................................................................... 26
Week three ............................................................................................................................................. 27
Finance/Trade ..................................................................................................................................... 27
Week four ............................................................................................................................................... 28
Cash ..................................................................................................................................................... 28
Week five ................................................................................................................................................ 29
Locker/Transfer ................................................................................................................................... 29
Week six: ................................................................................................................................................. 30
Remittance .......................................................................................................................................... 30
HR PLAN ...................................................................................................................................................... 31
SWOT Analysis............................................................................................................................................. 32
Strengths ................................................................................................................................................. 32
Weaknesses ............................................................................................................................................ 33
Opportunities .......................................................................................................................................... 33
Threats .................................................................................................................................................... 34
Applied learning .......................................................................................................................................... 35
Conclusion ................................................................................................................................................... 36
Recommendations ...................................................................................................................................... 38

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List of Abbreviation

1. NIFT : National institution facilitation technology

2. SWIFT : Society for worldwide interbank financial telecommunication
3. BAHL : Bank Al Habib Limited
4. IT : Information technology
5. ATM : Automated Teller Machine
6. LMS : Learning management system
7. HBL : Habib bank limited
8. MCB : Muslim commercial bank
9. UBL : United bank limited
10. CNIC : Computerized National Identity Card
11. TCS : Tranzum Courier Services
12. OBC : Outward bill for collection
13. FED : Federal Excise Duty
14. LC : Letter of credit

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Overview of the Organization

History of Bank

Habib Bank Limited was established in Bombay in 1941 by the sons of Habib Esmail. The bank
had over 30 branches operating in India at the time of partition. Quaid-e-Azam Mohammad Ali
Jinnah reposed confidence in the bank by opening his personal account. On the creation of Pakistan
in 1947, and following the advice of the Quaid-e-Azam, Habib Family shifted all of its businesses
including Habib Bank to Pakistan. The bank played a vital role in meeting the financial and
banking needs of Pakistan. It continued to record tremendous growth and progress, it emerged as
the leading private-sector commercial bank in Pakistan when it was taken over by the Government
of Pakistan along with all other Pakistani banks on January 1, 1974.

'In 1991, the government again decided to allow the private sector to establish commercial banks
in the country. Dawood Habib Group was amongst the first to be granted permission to set up a
new bank under this policy. Bank AL Habib Limited was incorporated in October 1991 by the
grandsons of Habib Esmail and started operations in January 1992. Although Bank AL Habib
commenced operations in 1992, it embodies the same high standards of integrity, prudence, and
trust which have characterized Habib Family's banking operations in Pakistan and abroad for about
70 years. The bank is particularly conscious of the trust reposed in it by the depositors, and its
prime duty is to protect and honor this trust all times. Guided by the values taught and practiced
by Habib Esmail more than a century ago, the bank has continued to grow and progress in all areas
of its operations. In a short span of 25 years, the Bank's assets have grown to more than Rs, 750
Billion, with a network of 747 branches and sub-branches, a Wholesale Branch in the Kingdom of
Bahrain, Seychelles and Malaysia and Representative Offices in Dubai, Istanbul, Beijing, China
and Nairobi, Kenya.'

DAWOOD HABIB GRUOP

DAWOOD HABIB GROUP, the sponsor of Bank AL Habib Limited, has a long track record in

Banking which dates back to the 1920's. The Bank was among the founder members of Habib

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Bank Limited which played a major role in meeting the financial and banking needs of Pakistan,

and which was nationalized along with other Banks in Pakistan on January 1, 1974.

Under the subsequent privatization policy of Government of Pakistan, DAWOOD HABIB

GROUP was granted permission to set up a commercial bank. Bank AL Habib was incorporated

as a Public Limited Company in October 1991 and started banking operations in 1992.

The Late Hamid D. Habib, grandson of the founder of Habib Group, was the first Chairman of

Bank AL Habib Limited. He was the Director in Habib Bank Limited from 1954 and its Chairman

from 1971 until its nationalization. After the death of Mr. Hamid D. Habib in May 2000, Mr. Ali

Raza D. Habib, who was Director on the Board, he was appointed the Chairman of the Bank, a

position he continues to hold.

VISION AND MISSION

Vision Statement

“TO BE OUR CUSTOMERS' MOST CONVENIENT AND TRUSTED BANK”

Mission Statement

“TO MAKE BANKING SAFE, SIMPLE, AND PLEASANT”

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Competitors

Their competitors are all the commercial banks working in the Pakistan.

 ALLIED BANK

 MEZAN BANK

 HBL

 MCB

 National Bank of Pakistan

 Punjab Bank

 Al Falah Bank

 Soneri Bank

 UBL

 ETC are the competitor of Bank Al Habib.

Organization Structure

Board of Directors

The Board of Directors of the Bank comprises of the following:

Name Designation Occupation

Mr. Abbas D. Habib Chairman Banker

Mr. Anwar Haji Karim Director Industrialist

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Ms. Farhana Mowjee Director Industrialist

Khan

Syed Mazhar Abbas Director Former Banker

Mr. Qumail R. Habib Executive Director Banker

Mr. Safar Ali Lakhani Director Former President,

Soneri Bank

Limited

Syed Hasan Ali Director Former MD &

Bukhari CEO - Mackinnon

Mackenzie & Co.

of Pakistan/

Corporate Advisor

Mr. Murtaza H. Habib Director Industrialist

Mr. Arshad Nasar Director Former Chairman /

CEO - Oil & Gas

Development Co.

Ltd. Former

Country Chairman

& MD - Chevron

Pakistan

Mr. Adnan Afridi NIT Nominee Chief Executive

Director Officer / Managing

Director – NITL

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Chief Executive

Name Designation Occupation

Mr. Mansoor Ali Chief Executive Banker

Khan

Company Secretary

Name Designation Occupation

Mr. Mohammad Company Secretary Banker

Taqi Lakhani

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 Bank Al Habib Hierarchy Structure:-
CEO

Group Head

Zonal Head

Area
Manager

Branch
Manager

Operation Trade&Finan Transfer

Remittance
Manager Lockers ce

Unit In Clearing Account

charge Opening

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Number of employees

9415(in 24 June ,2016 ) is the total number of employees working with Bank Al Habib .They all

are very talented and hard working . The bank has a network of 650(15july,2017) branches

(inclusive of Islamic, Conventional & Sub-branches) .The employees of Al Habib bank are very

much satisfied with the bank and Administration .Because the bank work best for their employees

.There are many training programs held to train their employees how to behave with your kind

customer and colleagues.

Main Offices

Bank Al Habib head office is located in Multan , Punjab but its principal office is located in

Karachi . It is because they initially started to expand in the MULTAN region ,therefore, they

prefer to make their head office in Multan .Its their strategic decision .

Departments of Bank Al Habib

HR Department

The HR department of Bank Al Habib is strong . It monitor the staffing and performance of the
employees . In BAH there is a culture of staffing and performance measurement . The staffing is
the process in which an employee is hire and in the end fire ,all the process include in staffing
.For example , A boy is hire in the bank , further he is fresh or experience , he should be given a
training by HR department .All the development of the employee is done by this department .
HR department is held in Karachi .

There are four bonuses

1. Eid al Adhza

2. Eid AL Fitr

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3.Rabi Ul Awwal

4. Appraisal (performance).

There are three type of Fresh employees

 Banking officer : The banking officer has grade 3 and normally, they get 15 or 20
days training.
 Graduate trainee officer: The graduate trainee officer has grade 2 and they get 3
month training.
 Management trainee officer :The management trainee officer has grade 1 and they
get 6 month training.

Training

Now , HR department have the duty of that employee’s because HR department have given
training to the employees according to their field of interest .The HR update the performance of
that employee with the help of annual appraisal . The HR did not only give training of the
employees physically ,it give training to the employees by LMS( learning Management System)
.The LMS is the computer base program which give training on different course’s like clearing
,Cash , Trade etc. In every month the employee should done the course’s .Inside it all the
relevant information is given .

In Bank Al Habib there are two types of training off job training and on job training . The on-job
training is done when the employee is on the job .The training of the employee is done with
LMS(learning management system) .The work which is related to employee day to day activities
is done in on-job training . It is done to update the knowledge of their employee’s with the time.
It also help the bank to recall the important concept of banking .For example , BAH send a
circular related to Anti money laundering into LMS .The employee’s should go-through that
document and there is a test of that topic .So, in this way the on-job training is done in Bank al
Habib .

The off-job training is conducted at HR department Karachi for one week,2-3-4 month etc. .In
which a employee is completely cut-off from his/her routine banking task .The main goal of off-
job training is to give proper knowledge sharing , product development ,attitude and behavior
changing of the employee’s etc. It include the detail or face-to-face interaction among the top
management and employee’s .

All the staff of Bank Al Habib training is conducted . The branch Managers meeting is also
conducted to discuss the target ,new challenges ,product development , new rules and regulation
etc.

Promotion/ Appraisal

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Generally . the promotion of the employees is done in 3 year. But , If the employee’s KPI’s(Key
Performance Index) is good. Above hundred percent ,in which it include how much account you
open’s , How much car finance did you done , how quickly did you complete the work of your
desk ,did you satisfy your manager all these type of indicator are included in KPI’s .If your
KPI’s is good , the branch Manager give you high points at appraisal .If your KPI’s are below the
hundred percent , the branch Managers give you low appraisal .Means it all depend on the
Branch Manager of the bank . It may promote you in one or two year .If the employee satisfy the
Manager he/she will get good appraisal . And, performance all depend on the KPI’s .

Cash department

The cash department of the bank deals with handling of the cash ,bill collection , cash payments

and maintenance of Vault. The cash officer check the cash further the notes are fresh or defective

.If they get defective or soiled notes they sent it to head office .The customer deposit the cash with

deposit slip , the cash officer twice count the notes and match with the deposit slip. The customer

along cheque will came to cash officer , the cash officer check the name , date , amount in words

and figures, payee’s name etc ,and mactch the signatures to customer signature at the time of

opening the account .Then , the cash officer paid cash to payee. All the utility bills like Mepco ,

sui gas are collected by cash officer. Vault is the place in the bank where money is stored .

Clearing department

When cheque of other bank came into the Bank Al habib , The clearing officer has to clear the

cheque .These are the ways of doing clearing :

 Local clearing : These cheques are cleared in 48 hours ,and these cheques belongs to the

same city.

 Same-day clearing : The cheques which are less than one lac ( Rs 1,000,000) are cleared

within the same day .

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 Intercity clearing : The cheques which belong to other city are cleared in 3 days .

 Inward and outward clearing : NIFT is a clearing house which provides the facility of

clearing the cheques of different banks .

Finance department

The finance department of the deals with all the Loan programs which the company is giving .In

Bank Al Habib “Apni Car” is a loan program of one to five year in which minimum twenty(20) %

down payment is required. Cash finance is also available but against national saving certificate ,

Pak currency deposit and this is for one to five years. The house buildingfinance its for long term

basis for twenty year .And the Bank Al Habib has added a Prime Minister Youth Business Loan

Scheme , this helps the young men’s/women’s entrepreneur for supporting them in their future

with minimum markup of six(6)% .

Locker department

There are three type of locker are available for the customer small, medium and large .On small

locker the rent is Rs3,000 per annum , on medium it is Rs4,000 and on large it is Rs5,000 but If

the account holder deposit more than one lac then the locker will be free to avail for that specific

customer only .

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Account Opening department

The account Opening officer is the main person in the bank. The person who want to open the

account in Bank Al Habib he/she will require for some documents which include Income prove ,

Orignal CNIC , Reffaral (A person who has account in that bank).That person not be bank crupt

First the Debarred list is generated that in Govrnment record the person is clean or not .and Second

, FIU watch list is generated to look in the past history of that person in Bank Al Habib portals.

There are basically two account are available current and saving .Further their different types are

available .

Remittance department

Bank AL Habib helps the people who are working outside the Pakistan by giving them fastest

access of sending their money to their loved ones in a easy way .It also contribute to the Pakistan

economy because the foreign currency helps the economy of the country at large. The bank has

Bank Al Habib home remittance facility to their account holder and other bank account holder.

Through they can easily transfer the money from abroad to their parent account in Pakistan .

Transfer department

Where the amount are transfer from one account to an other account .The account holder and

receiver must be of the same bank .and the same branch then the transfer process is done . For

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example , The account holder of Bank Al Habib , Gulghast branch transfer the cheque amount Rs

25,000 to the same bank account holder of that branch .

Comments on the Organization Structure

The organization structure of bank Al Habib is Tall which means that what ever the top

management take decision all of the employees of that organization has to fellow the orders. The

top management deals with all the big decision specially the strategic .The structure of their

organization is good it help the bank to expand its products and services with time. All the staff

member are committed to the work .

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Plan of the Internship Program

Introduction of the Organization

Bank Al Habib LTD is the name of the organization where I get my internship program .It is

located near Chungi no 6 , Gulghast .Its the banking sector company which work for all the

financial matters .The Bank Al Habib is the commercial bank . It has different departments Cash

department , Clearing department , Finance department etc . The bank help the people in their

financial matters . The bank Al Habib is the only bank to provide the best banking services

according to the preference of the people .

Date of starting and ending

My Internship started from May20.2019 to June 30,2019.

I started my internship program in May and successful ended it in the end of June ,with help of

banker’s colleagues. I spend my best time in the bank .Where I get the all the necessary information

regarding the banking sector.

Name of department get Training

1st week I get training from Account opening , 2nd week I get training from Clearing ,3rd week I

get training from Finance/Trade ,4th week get training from Cash , 5th week from Locker and

Transfer and In the end 6th week I get training from Remittance .

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 Products and Services

Current Account

Al Habib Basic Banking Account (BBA)

An Account which provide the basic functions to people .There is no minimum limit required

.Their is the facility of SMS alert , free ATM card , Free online banking .But charges on the cheque

book .

Al Habib Asaan Current Account

It’s the simple Account to entertain the people who are not have any income proof . The Account

can be opened by Rs 5/- and maximum balance limit is Rs 5,000,000/- The account holder can get

SMS alert service, Free ATM card ,Free online banking etc. .

Al Habib Asaan Remittance Current Account

The account help the people living outside the Pakistan , the account can be opened without any

money . The account holder can open and close the account when ever they want .The account is

easily open by filling one form . There is free ATM card facility , Free online banking ,cheque

book facility etc. Passport is required to open the account .

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Al Habib Apna Individual Current Account

The Apna Individual Current Account by name focus the person who want get services of the

banking sector without hurdle’s .The main focus are students , Teacher’s , Doctor , etc .The

Account can be open after getting the income proof , CNIC etc. Free life insurance is given to the

account holder who maintain amount of one million.

Al Habib Current Plus Account

The account is made for business people and individual also .In this Account each and every thing

is free like ATM , cheque book, banker’s cheques and Pay orders .There no life insurance facility

available for this account holder .

Al Habib Pensioner’s Current Account

The Account help the people who wants to live their easier in oldage . The people open their

account for avail banking services and for some saving porpose ,when the account holder get retire

from his/her job they get the amount in their account . The account holder can get free cheque

book , free ATM card ,E-banking facility etc . But the account holder is require to submit the

Pension certificate and Pension Payment Order

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 Saving Account

Al Habib Monthly Saver Account

The people who want monthly profit they can open this account . The account can be opened by

providing CNIC , income proof ,Bill copy etc. The account holder can avail free ATM card , free

online banking .

Al Habib Senior Citizen Account

The people whose age is 60 year or above can open the account . They can open the account by

providing all the necessary documents like income proof, CNIC , bill copy etc .The customer can

open the account with zero balance .Account holder recive monthly profit on it .The senior people

can live their life easily with the help of this account .

Al Habib Young Saver’s Account

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To encourage the youth about the saving . The account helps the students to save their money

,which help them in difficult times .With the help of saving the future of that youth is bride because

they know how manage and spend the money .The children can open the bank account along with

their parents without their parents the account can not be opened .

Al Habib PLS Saving Account

The profit and loss sharing account can be open by the customer to boostup their earning .or saving

the money for their day to day expenditure .The profit is given to the account holder . The account

can be open with the help of income proof . And account holder get free life insurance .

Al Habib Asaan Saving Account

The account can be open easily without any income proof only the CNIC is required to open the

account in the bank .There is free life insurance of the account holder . The account is opened to

avail the profit which is given in 6 month or in a one year .

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Al Habib Asaan Remittance Saving Account

The account is open by the people to benefit their family by availing the profit on their remittance

.The account is open easily by providing CNIC and passport pf that person . The free life insurance

is given to the account holder .

TERM DEPOSIT

Al Habib Special Saver Certificate

An certificate which can be get with minimum amount Rs 25,000/- and its life is three year in

which six profit payments are made to the certificate holder .

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Al Habib Treasurer’s Call

The societies , trust type organization have idle funds available they give it to the Bank Al Habib

by deposited in current account .They get profit on it , in monthly basis. In august 1 ,2019 the

interest rate is 11.25% per annum.

Al Habib Mahna Munafa Account

High Returns Reliable and Convenient

1 Year Deposit 12.00% per annum (p.a)

2 Years Deposit 12.10% per annum (p.a)

3 Years Deposit 12.25% per annum (p.a)

4 Years Deposit 12.10% per annum (p.a)

5 Years Deposit 12.10% per annum (p.a)

The minimum amount to deposit is Rs 25,000/- .Each month profit is given to them .

Al Habib Salana Munafa Account

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In this account the amount is deposited for one year , means for one year the amount is been fixed

to the bank . Its easy for the customer who want reliable and convenient life ,and last limit to fix

the amount is Rs 25,000/-.

Al Habib Zamanat Account

The people who age is 18 to 60 years old can avail this .They has the ease of making their own

investment plan that what type of installment did you want. Whatever will be easy for that person

the Al Habib Zamanat Account can be open. They can make the installment in monthly

basis, yearly or quarterly. And there is a free life insurance for the person for entire period of the

plan .They can get one year to twenty year plan .

LOANS

Housing Finance

This loan help the people to buy new house's , improvement , construction etc .The loan tenure is

one year to twenty five year .The maximum limit of this loan is fifty millions .Rupees only.

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Cash Finance

The people of wants cash loan for their daily activities such as education or day to day expenses

they can avail this loan .The account holder must has to deposit in his account , then the loan is

given on 90% of its deposits .

Apni Car Auto Finance

Now , you can get a car .On your own choice it can be new car , used car or imported car .The

Bank Al Habib give you the key of your car .The account holder can get the car by paying the 20%

down payment and installment are made . The tenure can be of one year to five year. Minimum Rs

2,500,000/- and maximum Rs 30,000,000/- loan is given .

Prime Minister Youth Business Loan Scheme

To encouraging the youth the Prime Minister Youth Business scheme was launched to motivate

the young entrepreneur in their minimum Rs 10,000/- and maximum Rs 20,000,000/- is given as

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a loan with easy installment plan . First year no Payment on installment is paid .From second year

the installment started .

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 Weekly Journal

Week one

Account opening

In week one , my Branch Manager Mr. Adeel Hussain take me to the Account Opening officer Mr.

Zain ul Abideen . Their I get all the basic information of all about the banking sector. The Account

opening officer give me introduction of their bank and tell me about the different accounts which

are open in their bank . When ,I am doing the internship at that time State Bank of Pakistan as

strict order to take bio-metric verification of all the account Holder’s. There I learnt a lot about

how to deal with the customer and what different type of Accounts are available .There are two

type of account first was current account and second was Saving account

In Current Account :

 Al Habib Asaan Account: It’s the simple account which is open without any income proof.

In this only cheques charges are charged and other all services like ATM card, Online banking are

free.

 Al Habib Apna Current Account: The account is open for professional people , who wants

banking services .The account holder can get free life insurance and all other services are free like

Free ATM card, online banking , banker’s cheques etc.

 Al Habib Current Plus Account: In this account only life insurance is not available other

all the services are free .This account is for business-men.

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Saving Account:

 Al Habib Asaan Saving Account: In this account ,the profit is given in 6 month period. In

this account all other services like online banking , cheque book and ATM Card etc. are charged

by the bank.

 Al Habib Mahana Munafa: In this account , the account holder get monthly profit .

The task was assign to me was to guide the customer about different types of account and give all

the necessary documents to the account officer .The important documents include specimen card

on which the name , signature and account number is mentioned on it , account opening form is

required to open a account of the customer . The customer is required to give original CNIC and

income proof.

The account opening officer check the Debarred/black list of that customer to check that the person

is defaulted in the record of government or not . If he is clear from the black list then , the Account

opening officer check in F-I-U watch list to check the customer record in the bank record .

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 Week two

Clearing

The second week I spend in the clearing department .Where Mr. Farukh give me introduction of

the clearing department. When cheque of other bank comes to bank al Habib ,then the cheques are

send to NIFT .which is a clearing house in Pakistan ,who provide services to the banks by clearing

the cheques of different bank at one place .

There are different types of clearing:

 Local clearing: In which cheques are clear within the 48 hours .

 Same day clearing: The cheques which amount is equal or less than one lac , are cleared in

it .The cheque is clear within the same day .

 Intercity clearing: It will take the 3 days to clear the cheque .

 OBC: When there is NIFT not available then the cheques are send to that particular bank

or to the National Bank of Pakistan for clearing .It will take 3 days. The cheques are send by

courier service like TCS ,Pakistan Post etc.

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 Week three

Finance/Trade

In Finance and Trade Mr. Belal Ahmed give me a brief introduction about the finance and trade

subject. Where he tell me that in bank al Habib there are two main type of loan programs first short

term plan which include Cash finance ,Agricultural finance , Term finance and long term finance

which include house building finance , Apni car Auto loan .The short term loan are of 1 to 5 years

tenure and long term is of 5 to 25 year tenure .

In trade letter of credit is issued to facilitate the customer .The bank issue LC for customer on

which the other person from other country issue LC from their bank .The importer and exporter

bank give guarantee of their account holder ,If our account holder fail to pay the banks are

responsible for paying to that bank .Packing list , invoice sheet and shipping document etc. are

provided in Letter of credit .The swift message is sent to each other to the banks .

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 Week four

Cash

In cash department I learnt how the cash payments or cash receipt are made , how bill are collected

and how the cash officer maintain the cash flow .The Vault is available in the bank in which all

the cash of the bank are stored .When the customer came to deposit the cash in his account ,the

account holder fill the deposit slip and give to the cash officer along with cash .The cash officer

count twice the money and match to the deposit slip and transfer the amount to his account .All

the Utility bills are collected by the bank. When a person came along cheque ,the cash officer

check all the parts of that cheque like payee name, signature ,amount in words and figures ,etc.

,and then he give the amount of the cheque .(If the amount increase the limit of Rs 50,000 ,the

CNIC copy is required for that payee.).

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 Week five

Locker/Transfer

My fifth week was spent to locker and transfer officer ,where they give me the all information

regarding the lockers. Mr. Irshad told me that , we have three sizes of the locker are available with

different rent amount payable per annum. The sizes are small ,medium and large. You can get

small locker with Rs. 3000/- rent plus FED and plus One time security of Rs. 20,000/-. If a person

want medium locker rent is Rs 4,000/- plus FED and security of Rs.30,000/-.If a person want large

locker rent is Rs. 5,000/- plus FED and security of Rs. 50,000/- .The security is refundable.

When a customer want to get a locker , He/she has to provide the security fees and to fill the locker

documents on which all the necessary information is mentioned clearly. One key of the locker is

store to bank and one for the customer .When a customer want to use the locker ,he/she has to

came to locker officer ,and where he write the locker number and takes signature of the customer

as a proof .

Then , I learnt about the transfer. The transfer of the cheques are done by transferring fund from

one account to another account .But both of the account are of the Bank Al Habib and of the same

branch Gulghast branch . For example, a person came to a transfer officer along with cheque ,and

said he want to transfer the amount of that cheque to a specific account .The officer saw the slip

on which the account number of that person is mentioned where he want to transfer the money

.After verifying the

signature ,amount in words and figures on the cheque ,the transfer officer transfer the amount to

that account.

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 Week six:

Remittance

The Remittance officers guide me about all the information regarding remittance. Remittances is

the process of sending money from outside the country towards their parent country .The people

who work abroad send remittance to their families. There is the easy process of sending money

from abroad with the help of agent like Money Gram and RIA Money transfer .They have reach

more than 150 countries and having 300,000 plus local agents available there.

The person who has account of Remittance at Bank Al Habib can avail this offer .They can get

payment in hand or in their bank account . There is no need to fill any form to get the remittance

amount .

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HR PLAN

The performance Measurement system should be introduced in Bank Al Habib . In this . the

performance of all the employees is directly monitor by HR department .Each entry or working is

directly monitor by the HR . like in Telenor there is PM(Performance Measurement) system , in

which HR tell you ,that in one day how much token a single employee serve . The bank Al Habib

should also introduce this type of system . In which , a work or task which is done by an employee

should be send to the that employee . In this way , the employee should be active in performing

day-to-day activities . He knows that HR is watching me .There should a sheet or a table will be

send to the employee Id in which all the activities is mention an employee has done. The employee

will be monitor by the HR . The HR department should handle the KPI’s and appraisal of an

employee. The Performance Measurement system should help the employee’s to work more . The

system guide the employee’s that ,the work you perform is not up-to the mark ,make up-to the

mark .

In this way , the liking and disliking concept of a Branch Manager will be finish . Because, if the

Manager rate low to the appraisal of the employee ,rather than his performance is up-to the mark

. The employee promotion will be affected in this way .So, the favoritism of the Branch Manager

will be finish .

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 SWOT Analysis

Strengths

 The expansion of the bank Al Habib banks in different cities of the Pakistan is the big

strength for the company .Because ,their market size will be increase in this way and traffic also

increase in a good manner for the company .

 The bank Al Habib is providing fifty percent free education to the people/families, who

didn’t afford to pay for their school fees. The bank is providing them the quality education .So, the

children at large contribute to the society and boost up the economy of the Pakistan.

 The name of BANK AL HABIB is also a strengths for the bank .Because, of their rich

history.

 They give extensive training to their employees .With the help of the training they

understand the mindset of the upper management .That what they want from us to deliver to the

kind customer.

 The online banking is the strength to the bank .In today’s world everything is being done

on the internet .IT has too much success in the world .

 Customer satisfaction is the big strength for the bank .They provide all type of services to

their customer .

 Bank Al Habib has the potential to encounter the competitive environment in the market.(

As they provide high rate of return at term deposit of 12.25% ) .

 Younger’s account of the bank Al Habib is good source of promotion for bank Al Habib.

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Weaknesses

 Employees at branch level are not properly motivated to work by heart . They take the all

routine activates as a boring job.

 I observed that some customers are facing problems to physically visit the branch just to

have bank statement .

 At many occasion Bank Al Habib ATM network gets slow and the machines don’t allow

for transaction so they should renew their ATM links.

 Favoritism of Branch Manager by give good appraisal to the employee whose KPI’s are

low.

Opportunities

 They should be target on proving the small medium enterprise financing .Because there is

a lot of population below the thirty years old .So, the young population became the entrepreneur.

 They should also increase the marketing campaign and make the marketing strategies in

that way they grape the market share .

 It has the strong potential for growth .

 Use of new advertising techniques to spread awareness about different Bank Al Habib

product.

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Threats

 The competition factor is alarming because new banks are developing and some multi-

national banks are coming in the Pakistan. This would increase the competition in term of giving

new technological banking tools and other services also.

 Circumstances of Pakistan are a great threat for the existence of the Bank Al Habib.
 More and more banks are launching their operations in Pakistan which is increasing
competition for the Bank AL Habib.
 The conventional banks those having high growth rate and high market share are always
being a threat.

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 Applied learning

In the bank, I learn how the bank employees work like a team to boost the work .Their main focus

was on satisfying the needs of the customer .The behavior of the employees matter a lot to a

customer .So, the bank was provided their staff training that how to deal with your client .It is

important for the bank to entertain their customer by giving them proper time and focus. Time

management was very much important in the bank very one was there at 8:30AM at morning .The

important thing was that, Branch Manager himself was there before 8:30AM .The step of Branch

Manager is as a leading role to the staff to be on time at bank.

At every morning before bank timing there was a short meeting between branch manager and all

the staff. In which they discuss on the top issues which was face by the employees or the purpose

was to convey the message of the upper management.

The main emphasize of the banker’s was to build strong and healthy relationship with their account

holder. They give importance to their customer and guide them in a good manner .In this way , the

account holder trust and satisfaction level will be increase .

In Bank Al Habib , their was a portal (INTRANET) which give employees access to all the

information of the account holder and their account was maintain on that portal .Their unique User

name and Password was there to login into that portal .There was online system of attendance for

the employees .They give different products and services to attract the customer .They also did

advertisement to increase their market size.

The people who work in banking sector they should be high in emotional stability .because , in

bank you will meet a hundred and thousands of people .The behavior and attitude of every

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customer is different .The interpersonal skill of mine will be increase by interacting with different

people. If a person is good in emotional stability and interpersonal skills ,he will be more confident

and calm in dealing with the customer .The HR is not directly involved in the appraisal process of

an employee. The Branch Manager is responsible for the appraisal of an employee .The innovation

in the banking sector is increasing day by day .The market of the bank is ,So much diverse in

nature .The bank should focus on the product and services they, are offering to the market.

Conclusion

Banking will help all of us to attain more. It gives opportunity for some to invest and some to

borrow to make better future for others .Everyone is benefited with it. Banking is a business which

is built on the trust .The trust of customer toward the bank and bank trust towards its customer's .

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Bank Al Habib LTD provides the banking services to their client .They give different products and

services to their account holder and also for other. The bank Al Habib didn't compromise on the

quality of the services they are providing to their account holder. They give high interest on the

term deposit.

As we all know that there is no such company in the universe which is quite perfect in anything

,all the companies have flaws . So, Bank Al Habib also have some flaws which include the loan

process system of the bank is not too good .The employees of the bank Al habib has given less

incentive. Every bank is struggling for the growth and market size .The bank's strategies is to built

a big market share. So, Bank Al Habib also wants to expand its number of branches in Pakistan

and outside the Pakistan also. Bank Al Habib is grooming itself rapidly and Boost up the economy

at large .

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 Recommendations

I have spent six week of my Internship in Bank Al Habib, Gulghast branch . Where I tried my best

to learnt about the banking system of Bank Al Habib. And observe the banking environment . I

have observed the strengths and weaknesses of the bank. Based on that observation I have made

some recommendation which helps the organization to cope up with the challenges the bank face

.The recommendations help the bank to increase its performance and became more efficient .

The training of the Cash officer must be done on weekly basis. On the peak time the attitude

or behavior of the cashier not be rude .The training must be given to the cashier to be kind and

humble to their kind customer .

The bank should focus on the Small medium enterprise’s loan program .In order to grip the

market share and to contribute to the society by providing advances to the young entrepreneurs .

The Branch Manager should give equal importance to all of his employees .The favoritism

factor , of the Manager should be finish . So, the employee’s should be promoted at their own

talent .

The bank al Habib must follow the system of Performance measurement. In this way , the

employees are directly monitor by the HR .

The customer service must be enhance by giving equal importance to the customer. The

branch staff will not give high value to the customer ,with which he/she has personal relations.

The bank must ensure that the bank statement is sending to the customer on monthly basis.

There should not be delay in sending bank statement .Because , it will make a customer

dissatisfaction .

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 Reference

Primary Source

Mr. Adeel Hussain Assi Branch Manager

Mr. Zeshaan Operation Manager

Mr Belal Ahmed Finance and Trade

Secondary Source

https://www.bankalhabib.com/

https://www.bankalhabib.com/about-us/history-of-bank.php

https://www.bankalhabib.com/about-us/dawood-habib-group.php

https://www.bankalhabib.com/about-us/vision-and-mission.php

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