HMB Internship Report on Products and Services

IN THE NAME OF ALLAH THE MOST BENEFICIENT AND MOST MERCIFUL
INTURNSHIP REPOR ON HABIB METROPOITONBANK
By
ALI ABBASS
Roll NO 01018
PARTICIPANT CGB
LAHORE
This Report is submitted in partial fulfillment
The requirements for the programe of CGB
INSTITUTE OF BANKERS PAKISTAN KARACHI
January 28,2017
.
Table of contents
CHAPTER NO 1 3
HABIB METRO POLITON BANK 3
INTRODUCTION AND HISTORY 3
CHAPTER NO 2 7
HMB PRODUCTS 7
HMB SERVICES 17
CHAPTER NO 3 26
ACCOUNT OPENING 26
TYOES OF ACCOUNTS 26
TYPES OF CUSTOMER 27
CHAPTER NO 4 32
CASH OPERATION 32
CASH MANAGMENT 35
CHAPTER NO 5 36
CLEARING 36
REMITTANCES38
CHAPTER NO 6 41
ATM OPERATION 41
CHAPTER NO 7 42
TRADE OPERATIONS 42
LETTER OF CREDIT 44
CHAPTER NO : 1
HABIB METROPOLITON BANK
1.1 HISTORY AND INTRODUCTION

Habib metropolitan was incorporated in Pakistan as public listed company in 1992.under the
name the metropolitan bank. The bank commenced, duly licensed, full scheduled commercial-
banking operations in October 1992.Metropolitan Bank, from October 1992 to September 2006,
remained a highly rated bank and, vide its nationwide 51-branch on-line network, established as
a distinguished provider of trade finance services. On October 26, 2006 Habib Bank AG
Zurich’s Pakistan Operations merged into Metropolitan Bank Limited and the merged entity was
named Habib Metropolitan Bank Limited (HMB). Demonstrating a strong commitment to
Pakistan economy, HBZ is the principal shareholder of HMB.HMB operates in all major cities of
the country. The Bank ranks within Top 10 in Pakistan with a strong vision to be the most
respected Financial Institution.HMB has its primary focus on retail banking and trade finance
and also offers highly innovative E-Banking solutions and Consumer Banking to its customers.
The Bank’s Islamic Banking Division is fully capable of catering to customers seeking Shariah
compliant products. The HBZ Group is heir to a rich tradition of banking and commerce dating
back to more than 160 years. The group’s flagship and HMB’s principal, HBZ (incorporated
1967) enjoys International ranking of 687 in terms of capital. With Headquarters in Switzerland,
the HBZ Group also operates in Hong Kong, Singapore, United Arab Emirates, Kenya, South
Africa, United Kingdom and North America. The Pakistan Credit Rating Agency (PACRA) has
allotted both long-term and short-term ratings of Habib Metropolitan Bank Limited at “AA+”
(Double Aplus) and “A1+” (A one plus), respectively. These ratings, being the highest amongst
the local sector Private Banks, denote a very low expectation of credit risk emanating from a
very strong capacity for timely payment of financial commitments.
1.2 VISSION
Based on a foundation of trust, to be the most respected financial institution, delighting

customers with excellence, enjoying the loyalty of a dedicated team, meeting the expectations of
regulators and participating in social causes while providing superior returns to share holders .
1.3 MISSION
The Mission of the Habib metropolitan Bank is to foster a sound economic and financial
environment which promotes the development of its stakeholders and encourages a culture
of excellence and leadership."
1.4 PAACRA RATING AGENCY
Low expectation of credit risk emanating. Very strong capacity for timely payment of financial
commitments. The ratings incorporate Habib Metro's association with a diversified and
financially strong international bank - Habib Bank AG Zurich (HBZ).This association helps in
assimilating the parent's best practices into Habib Metro, while fostering control environment
with enhanced level of regulatory oversight. The ratings recognize the bank's healthy financial
profile emanating from a strong equity base, that is supplemented by an adequate flow of
profitability. The bank sustained its dominant position in its niche market self liquidating trade
finance though with higher focus of other banks, the competition is increasing. The bank
characterizes concentration in its deposit as well as loan books. The bank's asset quality is
relatively stressed compared to similar rated banks. However, the accumulation has stalled with
high likelihood of reduction in the overall size of the infection. Nonetheless, strong provision
coverage limits any drag on risk absorption. The rating is dependent on management's ability to
successfully execute its business strategy of diversification in the northern region and growth
while upholding position in its respective niche. Any weakening in asset quality, in turn, putting
pressure on the bank's profitability and risk absorption capacity ,may have negative
implications for the ratings.
1.5 ACHIEVEMENT
 HMB is one of the top ten banks in Pakistan.
 A very high credit quality.
 A very low expectation of credit risk.
 A very strong capacity for timely payments of financial commitments.
1.6 CARPORATE INFORMATION

BOARD OF DIRECTORS
 Chairman and President Kassim Parkeh

 Chief Executive
Anjum Iqbal
 Directors
Muhammad H. Habib
Raza S Habib
Bashir Ali Muhammad

Anwar H Japanwala
Ronaid V.Emerson
Firasat Ali
Mohammad Ali R.Habib (Executive Directors)
 Audit Committee
Raza S Habib
Mohammed Ali R Habib
Kasim Parkeh
 Company Secretary
Muhammad Imran
1.7 COMPETATORS
 Arif Habib Bank
 Muslim commercial Bank
 Bank al Habib
 National Bank of Pakistan
 Bank al Falah
 Standard charted Bank.
CHAPTER NO: 2
PRODUCTS AND SERVICES

2.1 NON REMUNERATIVRE ACCOUNTS
There are following non remunerative accounts
 Basic banking accounts
 Current accounts
 Super current account
 Foreign currency current account
BASIC BANKING ACCOUNT
It is nonprofit checking account. There is no minimum balance requirements. There are no
minimum balance charges applied. Only individual can open these type of accounts. Your basic
banking requirements do not require multiple monthly cheque transactions, then Basic Banking
account may fulfill your day to day banking needs with no minimum balance requirement or
restrictions on ATM withdrawals.
TRANSACTIONAL BENEFITS
 No minimum amount requirement for opening the account.
 No requirement for maintaining minimum balance.
 Non-remunerative account.
 No limit on number of ATM / Deposit transactions.
 Two cheque transactions will be allowed free per calendar month. Charge of Rs. 25/- per
cheque will be applied from the third cheque onwards.
FREE SERVICES
 Free HABIBMETRO ATM/Debit Card.
 Free Funds Transfer within HABIBMETRO.
 Free Web banking services.
 Yearly Statements.
 Free payments order

CURRENT ACCOUNT
It is non remunerative checking account. It provides the over draft facility as per arrangement.
There is no restriction on withdrawals facility. There is no limit on transaction. Individuals,
sole proprietor, and corporate person can open these type of account.
 The minimum amount required to open the account is Rs 5,000/-
 This is a checking account with no limit on the number of transactions.
 Cheque Book(s)first cheque book free ,Rs.5 per leaf will be charged if previous month
average balance is less than 25000/-
 Free Payment Orders
 Free HABIB METRO ATM/Debit Card(for individuals only)
 Free Funds Transfer within HABIBMETRO
 Free Web banking services
 Free Half-yearly Statements
 Rent Free lockers
SUPER CURRENT ACCOUNT
It is non remunerative checking account. The banks provide the over draft facility on this type of
account as per arrangement. There is no limit on the transaction. Individual, sole proprietor and
corporate person can open these type of accounts. Enjoy unmatched accessibility to funds
anywhere in Pakistan with a host of free services. With Habib Metro
Super Current Account, you grow your business while we take care of your banking needs.
 Free cheque book
 Free payments order
 Free debit card for individuals only
 Free electronic fund transfer with HABIB MTRO
 Free web info and tele info.
 Free half yearly statements
 Rent free lockers
ADDITIONAL BENEFITS ON AVERAGE BALANCE OF (100,000) IF MAINTAINED
 Free payment stop
 Free demand draft issuance HABIB METRO ONLY
 Free intercity clearing through NIFT
 Free clean bills for collection OBC
 Free pay order and demand draft cancellation
 Free duplicate statements
 Free retail collection facility
 Same day clearing charges Rs.50 only

HABIB METRO ASAAN ACCOUNT (CURRENT)
ELIGIBILITY
 Individuals (Single or Joint capacity)

 Pakistani Nationals only
 Only 1 account per CNIC and cannot maintain any other regular account at HabibMetro
Amount Requirement
PKR 100/- with no minimum balance requirement

Limit / Turnover
Limits of HabibMetro Assan Account will be as follows:

 Total Debit per month : Rs. 500,000
 Total Credit Balance Limit : Rs. 500,000
TDR Facility
Allowed, however the amount of the TDR will be clubbed in calculating the total Credit balance
of the account i.e. 500,000/-
Free Benefits
 Free First Cheque book (Subsequent Cheque will be charged as per SOC)
 Free ATM Debit Card
 Free Web Banking
 Free Half/Yearly Account Statement as per SBP requirements.
2.2 REMUNERATIVE ACCOUNTS

 PLS saving
 Saving plus
 Privilege 55+
 Multiplier
 Junior savers
 FC saving
 FC saving plus
 FC junior savers
HABIBMETRO PLS SAVING ACCOUNT
It is remunerative checking account. Remunerative are those account on which we give the
profit. Offers you the simplest way to save and manage your savings with high rate of return.
ELIGIBILITY
 Individuals only
 No minimum amount requirement.
 Profit Calculated on Average Balance & paid on Half Yearly Basis.
 Exclusive Free Life Insurance Cover
 Min Qualifying Balance: Rs 15,000/-
 Maximum claim: Rs 1,000,000/-
 Basis: Average credit balance of previous 6-months
 Zakat, Withholding Tax & Other Levies
 Zakat / Taxes will be applicable as per law/rules from time to time.
FREE SERVICES
 Cheque Book
 Free HABIB METRO ATM/Debit Card

HABIBMETRO SAVING PLUS ACCOUNT

Earn monthly profits and access your growing savings at all times
ELIGIBILITY
 Individuals Only
 Average Deposit Upto Rs. 250, 000/- & below
 Average Deposit Over Rs. 250, 000/-
 Minimum saving rate will be applied if the amount falls below Average Deposit of Rs. 250,000/-
Profit Payment
 Monthly Profit Payment on Average Balance
 Exclusive Free Life Insurance Cover
 Zakat, Withholding Tax & Other Levies
FREE SERVICES
 Cheque Book

HABIB METRO ASAAN ACCOUNT (SAVING)
ELIGIBILITY
 Individuals (Single or Joint capacity)
 Pakistani Nationals only
 Only 1 account per CNIC and cannot maintain any other regular account at Habib Metro
 PKR 100/- with no minimum balance requirement
 Total Debit per month : Rs. 500,000
 Total Credit Balance Limit : Rs. 500,000
LIFE INSURANCE
Life insurance coverage of Habib Metro Asaan Saving Account as per the below formula
 Minimum qualifying average balance is Rs. 15,000/- & maximum sum insured of Rs.
500,000/-
 Minimum relationship of 06 months
 Free Insurance would be equal to the average of 06 monthly balance in case of death
FREE BENEFITS:
 Free First Cheque book (Subsequent Cheque will be charged as per SOC)
 Free ATM Debit Card(visa debit card charges as per schedule of charges)
 Free Web Banking
 Free Half/Yearly Account Statement as per SBP requirements

HABIBMETRO PRIVILEGE 55+ SAVINGS DEPOSIT
ELIGIBILITY
 Individuals
 Age Requirement: 55 years & above
 No minimum amount requirement.
PROFIT PAYMENT
Monthly Profit Payment on Average Balance.
FREE LIFE INSURANCE COVER
 In case of joint account, primary account holder will be covered up to 65 years of age.
 Maximum Age: 65 years. In case of joint account, 1st person will be covered if under 65
years.
FREE SERVICES
 Cheque Book
HABIBMETRO MULTIPLIER ACCOUNT
Enjoy the facility of making transactions while earning profit on daily basis
ELIGIBILITY
 Individuals / Companies
 Profit calculated on daily basis and paid on monthly basis
FREE BENEFITS
 Cheque Book
 Free HABIBMETRO ATM/Debit Card
 Rent Free locker

HABIBMETRO FOREIGN CURRENCY SAVING PLUS ($, £, €)
Considering the Need of HABIBMETRO’s Customer, HABIBMETRO Now Offer’s “Foreign
Currency Saving Account with unique features
ELIGIBILITY
Individuals only
CURRENCY TYPE
 US Dollar
 Pound Sterling
 Euro
PROFIT PAYMENT
 Monthly Profit Payment on Minimum Balance.
 Anniversary Bonus
 Upon maintaining a minimum balance of 100,000/- or more in respective currency for the
year, the account holder will be eligible to receive an anniversary Bonus
 Taxes & other levies will be applicable as per law/rules from time to time.
FREE SERVICES
 Outward Remittances (2 per month)
 Cheque Books
 Collection of Outward Foreign Cheques
 SMS Alerts & Internet Banking

 Charges as per SOC will be applicable on remittance (local/foreign) against foreign
currency notes deposited in FCY accounts. 0.50% if funds remitted locally or abroad
14 days from date of deposit in FCY (charges are not applicable on FC cash
withdrawals.
2.3 HABIB METRO TERM DEPOSIT

 Habib Metro Mahana
 Premium Deposit Scheme
 Izafa Certificate
HABIBMETRO MAHANA SCHEME
Habib Metro Mahana Scheme offers high rate of returns on your fixed deposits with the benefit
of monthly profits.
ELIGIBILITY
This Scheme is open for Individuals
 Minimum Investment: Rs 25,000/-
 Funds may be deposited for 1, 2,3,4 & 5 year
 Profit will be paid on monthly basis.
 Upon maturity principal will be automatically rolled over at the rate applicable on the
date of maturity.
PREMATURE ENCASHMENT
 A premature encashment fee will be levied for premature withdrawal of funds from the
scheme.
 The rate of the fee will be 2% of the deposit amount or the amount of profit already paid
until the date of premature withdrawal, whichever is lower.
HABIBMETRO PREMIUM DEPOSIT SCHEME

You can now enjoy the facility of quarterly or half yearly profit payments at your convenience
ELIGIBILITY
The scheme is open for any:
 Individuals
 Minimum deposit requirement is Rs. 25,000/-,
 Funds may be deposited for 1, 2, 3, 4 & 5 years
PROFIT PAYMENT
 Profit will be paid on Quarterly or Half Yearly basis as per customer’s preference at
the time of booking the deposit.
 Maturity
 Upon maturity principal will be automatically rolled over at the rate applicable on
the date of maturity.
ZAKAT WITHHOLDING TAX & OTHER LEVIES
 zakat / taxes will be applicable as per law/rules from time to time.
 Premature encashment
 Premature encashment fee will be levied for premature withdrawal of funds from the
scheme.
 The rate of the fee will be 2% of the deposit amount or the amount of profit already paid
until the date of premature withdrawal, whichever is lower.

HABIBMETRO IZAFA CERTIFICATES
Earn higher returns by investing it in Certificate of Deposit for 05 Years.
ELIGIBILITY
 Individuals
 Minimum: Rs. 10,000
 Certificates are offered for 05 years with Profit Paid on Maturity.
 Encashable anytime, no penalties
Zakat Withholding Tax & Other Levies

Zakat / Taxes will be applicable as per law/rules from time to time.
2.4 SERVICES
HABIBMETRO HOME REMITTANCE
Home Remittance Division is facilitating overseas Pakistanis under the guidance and patronage
of Pakistan Remittance Initiative (PRI), a joint initiative of State Bank of Pakistan, Ministry of
Overseas Pakistanis and Ministry of Finance. Through this service loved ones, families, friends
& remitters can send money back to Pakistan.
Home Remittance Division facilitates instant transfer of money sent by overseas Pakistanis
through our dedicated agents in various parts of the world.
HABIBMETRO also facilitates Money Gram International who is one of the leading money
transfer companies in the world whereby beneficiaries can receive cash at our bank counters.
HABIBMETRO account holders will have their remittance directly transferred to their accounts
while non-customers can obtain cash instantly from all of our branches or through our
correspondent arrangement with Allied Bank of Pakistan.
FOR HABIBMETRO ACCOUNT HOLDERS
As soon as the remittance is received for our account holders, we credit the funds
instantaneously. Upon availability of mobile number SMS alerts are generated to the
beneficiaries for their convenience.
FOR CASH OVER COUNTER PAYMENTS
Beneficiaries can collect their cash payments from any HABIBMETRO & Allied Bank branches
across Pakistan. You can receive your remittances by following a simple three step procedure:
Step 1:
Ask the sender / remitter for the reference number / PIN code.
Step 2:
Visit any HABIBMETRO or Allied Bank branch throughout Pakistan with the given reference
number / PIN code and your original CNIC or Passport
Step 3:
Collect your payment from the counter after completion of formalities. If mobile number has
been provided SMS alerts are generated to the beneficiaries for their facilitation.
FOR OTHER BANK ACCOUNT HOLDERS
If you are maintaining an account with any other bank, funds will be transferred to your
account directly.
Our Home Remittance Partners (Tie-Ups)
HABIBMETRO has partnered with the best known exchange companies and banks in the
following countries:
 Canada
 Hong Kong
 Isle of Man
 Kenya
 Qatar
 Singapore
 South Africa
 Spain
 Switzerland
 United Arab Emirates
 United Kingdom
 United States of America
HABIBMETRO MONEYGRAM INTERNATIONAL
Money Gram has a global reach through its network of over 334,000 local agents in more than
200 countries and territories, providing customers with convenience and flexibility. Money Gram
is a fast, trusted and secure service to receive money all over the world from your loved ones in a
few minutes.
HOW CAN YOU RECEIVE YOUR MONEY?

You can collect your payment from any branch of HABIBMETRO in just three simple steps
 Ask the remitter for your specific 8-digits reference number.
 Visit any of our branches along with the reference number (given to you by remitter) and
original CNIC or passport.

 Fill a simple form given to you by the branch staff, present your CNIC/ Passport, and
collect the payment immediately from the counter.
HABIBMETRO CASH MANAGEMENT SERVICES

Cash Management department provides high quality solutions and services to its Corporate
Clients. The client can be benefited in the form of efficient liquidity management to increase
their profitability
CASH MANAGEMENT SERVICES
The department is offering following products for Corporate Clients and F.I.s
 Collection of Funds
 Disbursement of Funds (For Financial Institutions)
 Management Information System (MIS)
 Daily position of account in Statement form
COLLECTION
Habib Metro Bank offers a wide range of collection products to meet the specific requirements
of the clients like local cheque collections, upcountry cheque collections and cash collections.
With a wide network, customized MIS and multiple channels for delivery of MIS, Habib Metro
Bank renders quick and effective management of receivables.
MANAGEMENT
Cash Management Department provides Daily MIS containing Received, Cleared, Returned
Instruments and Cash / Funds Transfer reports along with Statement of Account. These MIS
reports are emailed on daily basis to our corporate clients. The Cash Management Service is
highly flexible which out rightly save the time and money through its speedy and accurate
collection mechanism.
ACCOUNT
The Statement of Account showing all cheque and cash collection is sent to corporate client and
F.I.s on daily basis. In addition to the MIS, the client can also access its account via Tele Info and
Web Info at their own convenient.
HABIBMETRO 24 HOURS CALL CENTER
CALL CENTER/ TELE INFO SERVICES.
Now you can access your account without going to the bank, 24 hours a day, 7 days a week
absolutely free. Dial 0800-42242 (Habib) / (+9221) 111 142 242 and reach our Customer
Services Representative
 Get your account Balance
 Short Statement
 Cheque in Clearing
 Lodge a complaint in case of any inconvenience
 Cash dispense issue complaints
 ATM/VISA Prepaid Card Blockage
 Inquire about the daily accounts related profit rates and currency exchange rates
 VISA Card internet activation
 VISA Card Transaction details
 Lead(s) Generation
 Inquire about our product offerings

 Habib Metro Network Information
WEB BANKING
Access your account from your home or office or anywhere in the world.
 Login through web banking username and password.
 Up-to-date Account Balance.
 Cheque in Clearing
 Account statement
 Beneficiary Management (Local Fund Transfer, Outside Fund Transfer)
 Debit / Credit Advice
FUND TRANSFER
 Internal Fund Transfer ( HabibMetro To HabibMetro)
 Inter Bank Fund Transfer (HabibMetro To Other Bank)
UTILITY BILL PAYMENT SERVICES
 Electricity
 Sui Gas
 PTCL
INTERNET SERVICE PROVIDERS (ISP)

 PTCL Evo Prepaid
 PTCL Evo Postpaid
 Wateen
 WiTribe
MOBILE TOP UP/AIRTIME PURCHASE (EASY LOAD)

 TELENOR
 UFONE
 WARID
 ZONG
 QUBEE DISTRIBUTOR
 MOBILINK
SMS BANKING
HabibMetro SMS Banking utilizes SMS channel to conduct various financial as well as non
financial transactions. The simple to use service facilitates HabibMetro customers to conduct
transactions from the location of their convenience. A simple structured SMS will land the
required information on your fingertips. HabibMetro customers do not require a smart phone
to avail this service. A standard mobile phone capable to send SMS is all what HabibMetro
customers need. Using HabibMetro SMS Banking our customers can conduct the following
transactions. Transactions along with their message format are mentioned below for our
customer convenience.
HABIBMETRO SMS ALERT SERVICE.

 We are pleased to introduce HABIBMETRO mobile banking facility, which would be
available on request to all our existing and new account holders.
 Account holders who subscribe to this facility would receive SMS messages on their
designated mobile phones for all types of transactions that they had requested.
 Following inquiries can be requested by the customers for their accounts.
 Transaction Inquiries
POS (POINT OF SALE) SERVICES
 Now you can withdraw cash from all HMB branches cash counters easily and without
any delay.
 Each HabibMetro branch is now equipped with a POS machine available on their Cash
Counters.
 No need to issue cash cheques and no need to wait .
 Cash can be withdrawn up to Rs. 400,000/- via HMB VISA (ATM / Debit card).
 Cash can be withdrawn up to Rs. 250,000/- via HMB ACCESS (ATM / Debit card).
(Subject to availability of funds in the account )
E-STATEMENT
 You can get your account statement electronically and avoid use of paper based
statements.
 E-statement will be delivered at your designated email address and the same will arrive
in no time as compared to courier. In addition E-Statement is a more secure mode of
transmission.
 Just fill up the attached subscription form and visit your branch to avail this free service
and make Pakistan a Green State.
VISA (ATM / DEBIT CARD)
 HABIBMETRO VISA Debit Cards are available to our valued clients at all
HABIBMETRO branches.
 Make transactions up to the credit balance available in your account

 Withdraw cash through convenient POS terminals at all HABIBMETRO branches.
 Daily ATM Withdrawal Limit Rs 100,000/-
 Daily Branch cash counter POS Limit Rs 400,000/-
 Local Purchase and Online Shopping Limit Rs 200,000/-
 HABIBMETRO Debit Cards are FREE, and available to our valued clients at all
branches.
 Make transactions up to the credit balance available in your account
 Withdraw cash through convenient POS terminals at all HABIBMETRO branches
 Daily ATM Withdrawal Limit Rs 30,000/-
 Daily Branch cash counter POS Limit Rs 250,000/-
RENT FREE LOCKERS
 Secure
 Rent Free Lockers
 Refundable security deposit
 Available in following size
 Size security deposit
 Small 20,000
 Medium 35,000
 Large 60,000
 Extra large 100,000

CHAPTER NO 3
3.1 ACCOUNT OPENING
There are following types of accounts which are open in habibmetro politon banks
3.2 CURRENT ACCOUNT

This type of account is usually open by both natural and legal person, who need deposit and
withdrawal facility without restriction. Bankers in Pakistan do not allow any profit on these
deposits minimum balance usually required and else incidental charges are deducted.
Introduction is usually considered necessary while opening a current account. It can be both
checking and non checking in nature. Checking accounts are those accounts which banks can
issue the cheque book.
3.3 SAVING ACCOUNTS

This type of account is basically meant for mobilizing savings of people. saving account can be
opened by individuals, charitable institutions, provident funds ,educational institutions. profit is
computed on either minimum, daily average balance held in accounts and is paid at regular
intervals .zakat is deducted on 1st of ramzan,but exemption can be availed as per zakat and
usher ordinance 1980.usually no over draft is allowed.
3.4 TERM DEPOSIT

These deposit can be withdrawn after specified period. Duration may be varying from 1 week to
10 years. Receipt is issued against such deposit. These receipt are non negotiable. If the
customer with draw the money before the maturity, the bank may charge the penalty.
3.5 TYPES Of Customer

INDIVIDUAL ACCOUNTS
An individual capable to entering in to a contract can open an account for personal and
Salary purpose. It can be opened either singly and jointly. Jointly it can be usually up to four
Persons. Only one account can be opened in any category by a person.ATM cannot issued
To jointly operated accounts.
DOCUMENTATIONS FOR INDIVIDUAL ACCOUNT
 Account opening reques
 Account opening form
 Copy of CNIC
 Proof of source of income
 Salary slip if salary account
 Utility bill copy if address differ from ID documents
 Visit report where applicable
Individuals accounts includes the following
 Photo Account
 Minor account
 Parda nasheen women

 Students
 House wife
 Pensioners
PHOTO ACCOUNT
Photo account(individuals with shaky /immature signature including illiterate persons Account
of person signing in raw hand /shaky block letter should be treated as illiterate person account
known as photo account. they should be clearly informed that they cannot issue the cheques in
favor of others persons nor should they hand over their cheques to someone else.
DOCUMENTATIONS
 Copy of CNIC
 Three attested photo graph
 A letter of undertaking to that the person shall not operate the account unless
 they personaly come to the branch and put their thumb impression or signature in
thePresence of bank officer
 Left and right thumb impression to be taken.
 Form Dep 36 b
BLIND VISUALLY IMPAIRED PERSON

These accounts are also treated as photo account, as the customer is required to put his thumb
impression or signature in the prances of bank officer .preferably they should be advised to open
a joint account with a person who is literate and not visually impaired. She/he will be required to
personally visit the branch and should always accompanied by any person, who can see, read and
write. No ATM debit card Can be issued to blind, visually impaired, illiterate ,shaky signature
accounts.
DOCUMENTS
 3 photograph
 A declaration of companion for visually impaired blind person is required.
 An indemnity for visually impaired person on Rs.100 bond paper.
 Form Dep 36 a
MINOR ACCOUNT
An individual who has not attained the age of 18 years is a minor. So according to law minor is
incompetent to enter in to contract. The law allowed that if a competent person has made a
contract for the benefits of minor, it is valid contact. In order to develop the habit of saving in
minors, allow to open such account in the name of guardian. Title of account clearly indicate
the name of minor and guardian.
DOCUMENTATION
 B form of minor
 A guardianship letter is also required when a guardian is appointed by the court of law.
 All documents as individuals account.

PARDA NASHEEN WOMEN
In case CNIC of female does not contain photograph bank mat contain other
Identity documents.
DOCUMENTATION
 Dully attested copy of driving license, Service card, Nikah nama.
 Birth certificate, educational degrees.
 3 photograph dully attested by a gazatted officer.
 Copy of CNIC by the same person who attested the photograph.
 Undertaking for parda nasheen
STAMPS
 Signature admitted
 Signature verified
 Photo account
 All cheques
 Round branch stamp
 Void
 Original seen stamp with power of attorney
3.6 SOLE PROPRIETORSHIP FIRM

Sole proprietorship is a business unit whose ownership and management
Vested in one person. Title of account should be same as the name of firm. Proprietor has to
declare that he is the sole proprietor of the firm and undertake to inform the bank of any
changes. Signature on specimen signature card and account opening form should be obtained
with firm`s stamp.
DOCUMENTATIO
 Copy of CNIC of person
 Account opening request on the business letter head
 Registration certificate
 See the stamp of business
 National tax number
 Letter head of business with complete business address.
 Utility bill if personal address of person differ from CNIC.
 Visit repot
3.7 PARTNERSHIP FIRM
When two or more than two person do their business jointly it is known as partnership. The
maximum number of partner allowed in any firm is 20.the partnership account should always
be opened in the firm`s name. According to Partnership act 1932 requires every firm should be
registered with the registrar of firms. The banks can open accounts of unregistered firm as well.
But clearly mentioned the fact on the face of account opening form and SS card.The signatures
on AOF and SS card of all the partner should be obtained with firm`s stamp.
DOCUMENTATIONS
 Photocopy of CNIC of all partners
 Copy of partnership deed dully signed by all the partner of firm.
 Attested copy of registration certificate with registrar of firm.
 Account opening request on letter head.
 National tax number
 Visit report
3.8 PRIVATE AND PUBLIC LIMITED COMPANIES
DOCUMENTATIONS
 Certified copies of CNIC of all the directors and signatory.
 List of directors on letter form 29 and form A by SECP.
 Copy of certificate of commencement of business
 Original certificate of commencement of business
 Original certificate copy of board resolution.
 List of signatories as per board resolution on company letter head.
 Company rubber stamp to be affixed on AOF and SS card.

 Memorandum of association
 Articles of association
 Certificate of incorporation.
CHAPTER NO: 4
4.1CASH OPERATION
There are following function of cash operation department.
 Vault operation
 Cash opening at branch
 Cash deposit and withdrawal
 Utility bills and prize bond
 Cash closing /balancing
 Cash management
4.2 VAULT OPERATION

The main vault should remain under dual control. Keys of vault should be assigned to Branch
manager, customer service manager and CD in charge. Main vault will be operated jointly by
Custodian. Only authorized person having access to main vault.
4.3 CASH OPENING AT BRANCH

Stamps will be update at the start of the day. Chief cashier take the appropriate amount of cash
and note it down in the cash movement register. Teller will pass the entry in hplus ``received
from main cash` `then entry will be made in cashier balance book and signed by the teller.
4.4 C ASH DEPOSIT
Cash deposit transaction should be done with proper voucher or deposit slip. Before accepting
the deposit the teller should check the account title, account number, current date, amount in
words and figure should match, deposit slip and its carbon copy. Then teller count the cash and
match it with deposit slip. Then post in hplus in the same account. And transaction detail should
be printed on the deposit slip.
Teller should obtain the copy of CNIC if online deposit any amount. Teller should also take the
copy of CNIC if a person deposit in the same branch Rs.500,000 and above. Customer copy of
deposit slip should be handed over to the depositor .bank copy will be retained by the teller. All
posting must be checked by authorized officer for any error. Late cash deposit should not be
received but in exceptional cases it should be received after approval of branch manager.
4.5 CASH WITHDRAWAL
Cash payments will be made to the customers only through the cheque. Cheque will be
scrutinized for any technical issue .cheque should not be post dated or stale. Amount in words
and figure should be matched. Signature of drawer of cheque should be matched. After
scrutinizing teller should make the payments. After payments of cash, cash paid stamp will be
affixed on the cheque and denomination will be mentioned on the back of cheque. Then
posting will be made in hplus and truncation detail to be printed on the back of cheque. cheque
should be thoroughly scrutinized and recorded in cash payment register. In case of online
withdrawal of any amount, teller will also collect the copy of CNIC. If withdrawal from same or
parent branch of Rs.100,000 or above teller will collect the copy of CNIC. For online withdrawal
of Rs.1,000,000 or above confirmation via email/fax must be obtained from parent branch
4.6 FOREIGN CURRENCY HANDLING
Treatment for foreign currency receipt and payments is sane as in PKR. Online transactions are
not allowed except upon prior approval by area head and zonal head. In Islamic banking
branches desks FCY transaction are allowed. In case of any deposit more than USD.10,000 or
equivalent in a single day, customer should present the original receipt acquisition. Separate
cash receiving and payments registers to be maintained for each currency.
4.7 CASH CLOSING / BALANCING
Teller transaction detail shall be generated at the day end. physical cash will be tallied with
report and will be made in hplus ``return to main cash``.hand over the physical cash to chief
cashier and enter detail in cashier balance book. After reconciliation daily cash position
statement will be prepared by chief cashier. It should be reconciled with cash memo report
from hplus .After proper checking all the cash and relevant registers must be kept in cash vault
under lock and key.
4.8 CASH MANAGEMENT
cash feeding branch manages cash requirement and excess cash in a city or town. if branch
need the cash it request the cash feeding branch on prescribed format. Cash will delivered in
special bags and these bags are sealed with security agency seal.shippment receipt is prepared
in triplicate. original and copy of receipt is handed over to the security agency after verification
of their identity. Third copy is retained for record. Then cash debit voucher is posted in hplus by
the cash sending branch.
4.9 CASH SAFE IN LIMIT
It is maximum amount of cash a branch should hold.
4.10 UTILITY BILLS
A non checking bill collection account shall be maintained at branch. At the day end branch
shall transfer the balance to main collection account. During the counter hour utility to be
collected from All customer. For all bills above Rs.5,000 CD in charge will affix( utility bills cash
received ) stamp after recording detail in utility bills register. Entry will pass in h plus. Company
wise scroll report will be generated positively even in case of NIL collection.
4.11 PRIZE BOND

National prize bond currently following denominations are available.
100 200 750 1,500 5,000 7,500 15,000 25,000 40,000 Cash
position including national prize bond should remain within overall cash insurance limit. Sale of
national prize bond during shut period is not allowed. Shut period means two month prior to
draw date for particular denomination.
4.12 CLEAN NOTE POLICY

Sorting of notes to be done on daily basis. Branch maintain the sufficient stock of re-issuable
balance of cash. Branch will not give the non issuable notes to the public but it will surrounded
to the SBP. It will accept the soiled, mutilated notes from general public.
Removes stapes pins from all the packet and banding strip should be put around all the packet.
Branch keep the sufficient stock of coins of Rs.1,2 , 5.Stamping of re-issuable/soiled on the
wrapper of sorted packets with date and name of branch.
4.13 TYPES OF BOOKS

There are following types of books used in cash operation
 Paying cashier balance book
 Receiving cashier balance book
 Receipt register
 Payment register
 National prize bond register
 Safe in safe out register
 NCR complaint register
 Foreign currency balance book
4.14 TYPES OF MACHINES
There are following types of machines used in cash operation
 Teller machine
 Cash counting machine
 Cash binding machine

 POS machine
 Ultra violet lamp
 Token machine
4.15 STAMPS
Cash received Cash paid Signature verified Bills received Sorted Unsorted soiled defective.
CHAPTER NO 5
5.1CLEARING
There are two types of clearing
1. Inward clearing
2. Outward clearing
5.2 INWARD CLEARING

Inward clearing represents those cheques and instruments drawn on us which are deposited with
others banks now presented to us through NIFT.Inward clearing uploaded by main branch.
Physical instruments received at branch through NIFT representative. Instruments should
scrutinized and check the balance of respective account. Amount in words and figure match,
signature and stamps. If cheque is in order it should be processed in hplus.Delete the cheques
which are to returned on technical grounds. Generate return memo; detail to be entered in cheque
return register inward. Cheque with cheque return memo with complete reason like balance
insufficient, drawer signature required etc handed over to the NIFT representative.
5.3 OUTWARD CLEARING

Outward clearing represents those local cheques and other instruments which are drawn on other
banks and deposited by our customer with us. It should be intercity and normal. In outward
clearing cheques should be collected and scrutinized. After scrutinization the cheque it should
INPUT in the Hplus using outward clearing and deposit the cheque. At the day end all the
instruments are dispatched to NIFT with total balance,number of instruments, bank/branch name
,date and authorized signature.
There are following Stamps used in outward clearing.
 Crossing stamp
 Clearing stamp
 Discharge stamp (Payee a/c credited)
 Mutilated confirmed
 Cutting confirmed
 Posted
5.4 OUTWARD BILLS FOR COLLECTION(OBC)

Outstation cheque /instruments which cannot be lodged in normal or intercity clearing through
NIFT are termed as bills for collection. These bills cannot presented in local and intercity
clearing. Cheque received from customer and scrutinized. Affix the crossing stamp,OBC stamp
along with bank discharge stamp. Schedule prepared and entered in OBC register. Then cheque
and original schedule sent to drawee branch.
STAMPS
Crossing stamp
Discharge stamp(payee`s account credited after realization)
OBC stamp
5.6 REMITTANCES
Remittances includes the following
 Pay order
 Demand draft
 Transfer
5.6.1 PAY ORDER ISSUANCE:
Pay order is issued at the request of the customer, which is used for the payments of within a city. In
Remittance Application Form mention the detail of beneficiary, account holder, purpose of the
instruments etc. On form at the last for bank use only part mention the column of pay order #,
reference (voucher #) signature verified or if customer is non filler of tax return then deduct the
commission / charges that is 0.60% of amount. But pay order is made by free. For other
branches customer pay order is made but for online must verify the signature. If amount is 1
Million or above then required approval from specified branch. In HMB light blue copy used for
pay order. Pay order has divided in three copies, first for the beneficiary second is customer
copy and third is bank copy that is attach with remittance application form. For more than 1
Million or above required the CBC confirmation and mention the back of the cheque about the
person who confirms the CBC and note down the time. For more than 3 millions amount of pay
order required three authorization on remittance application form in which one is Attorney A
person signed (that are normally CSM/Operation manager/ Branch Manager).
PAY ORDER REALIZATION:

If Pay order is made for its self or beneficiary of that instrument is customer then Pay Order is realized at
the desire of the customer.
PAY ORDER CANCELLATION:

If Pay Order is made for the second person or for business name then that instrument is cancelled. But
for that cancellation required special permission. For the enterprises or business required the company
stamp and signature. If signature and stamp is not made then required special approval from the head
office. For that signed on cancellation form and also attach the Indemnity – cum – Guarantee on govt.
stamp paper that worth is Rs.100/-. In Indemnity form required the 2 grantors signatures that are the
account holder of HMB. On pay order face crossing and on back transfer & endorsement stamps made.
PAY ORDER LOST:

If Pay Order is lost then first required the request of stop payment of that instrument. That request is
made on company letter head. Also ask customer for issuance of duplication request of pay order. When
pay order is lost then customer go to police station and submit the FIR and take the copy of FIR for lost
of pay order. When stop payment request, issuance of duplication of pay order and FIR copy is take then
all documents sent to head office and head office issue a circular about that instrument for stop
payment and also take approval from Area Head for issuance of duplication. Normally 3 to 4 days are
required for issuance of duplication of that instrument.
5.6.2 DEMAND DRAFT

Demand draft is made at the request of customer for that customer give the information about the
beneficiary of Demand Draft fill the Remittance Application Form. Demand Draft is used for the out of
city payments. On form at the last for bank use only part mention the column of Demand Draft #,
reference (voucher #) signature verified or if customer is non filler of tax return then deduct the
commission / charges that is 0.60% of amount. But demand draft is not a free, bank take charges for
that. Charges are Rs.100/- plus Rs. 16/- as Punjab sales tax charges. For other branches customer pay
order is made but for online must verify the signature. If amount is 1 Million or above then required
approval from specified branch. In HMB light green copy for demand draft. That is also divided in three
copies but in which first copy is for beneficiary and advice to drawee & bank copy is attach with the
remittance form. For more than 1 Million or above required the CBC confirmation and mention the back
of the cheque about the person who confirms the CBC and note down the time. For more than 3
millions amount of Demand Draft required three authorization on remittance application form
in which one is Attorney A person signed (that are normally CSM/Operation manager/ Branch
Manager).
DEMAND DRAFT CANCELLATION:
If Demand Draft is made for the second person or for business name then that instrument is
cancelled. But for that cancellation required special permission. For the enterprises or business
required the company stamp and signature. If signature and stamp is not made then required
special approval from the head office. For that signed on cancellation form and also attach the
Indemnity – cum – Guarantee on govt. stamp paper that worth is Rs.100/-. In Indemnity form
required the 2 grantors signatures that are the account holder of HMB. On Demand Draft
destroy the signed area and stamp on it of cancellation.
DEMAND DRAFT LOST:
If Demand Draft is lost then first required the request of stop payment of that instrument. That
request is made on company letter head. Also ask customer for issuance of duplication request
of demand draft. When demand draft is lost then customer go to police station and submit the
FIR and take the copy of FIR for lost of demand draft. When stop payment request, issuance of
duplication of demand draft and FIR copy is take then all documents sent to head office and
head office issue a circular about that instrument for stop payment and also take approval from
Area Head for issuance of duplication. Normally 3 to 4 days are required for issuance of
duplication of that instrument.
CHAPTER NO 6
ATM OPERATION
ATM operation contain how to maintain the cash of the ATM machine. There are the following
process for maintaining the ATM operation.
There are the three plates inside the ATM machine that are properly working for the cash
management.
Type 1
Type 2
Type 3
Type 1 plate containing the notes of RS 500/.
Types 2 plate containing with the notes off RS 1000/.
Types 3 plate containing with the notes off RS 5000/.
Before the types 1 plate there is the plate of rejected notes. ATM shows the quantity of the
rejected notes. Rejected notes are those notes which are due to the system link down, customer
received the receipt but not received the amount. All these notes are collected on that plate.
There is taken the print from ATM how much amount is remaining in the ATM machine then
count that amount.
For filing the amount into the plates it must be focused that the filling amount is according to the
plates types
CHAPTER NO 7
7.1 TRADE OPERATIONS
Trade finance relates to the process of financing certain activities related to commerce and
international trade. Trade finance includes such activities as lending, issuing letters of credit,
factoring, export credit and insurance. Companies involved with trade finance include importers
and exporters, banks and financiers, insurers and export credit other service providers.
7.2 BUYER CONSIDERATION
 Demand for the products in his country / industry.
 Who are other sellers of the same product in local & international market.
 Local laws prevailing in seller’s country.
 Country / Currency Risk.
 Time period for shipment.
 Pricing.
 Credit worthiness of seller.
 Terms of settlement.
7.3 SELLER CONSIDERATION
 Demand for his products in buyer’s country.
 Who are the competitors in buyer’s country.
 Local laws prevailing in his ( buyer’s) country.

 Country / Currency Risks.
 Time period for shipment.
 Pricing.
 Credit worthiness of buyer.
 Terms of settlement.
7.4 MODES OF TRADE
 Advance Payment
 Consignment Basis
 Letter of Credit
7.5 TYPES OF CREDIT FACILITIES
 Fund Based
 Non Fund Based
7.6 TYPES OF NON FUND BASED FACILITIES
 Letter of Credit
 Letter of Guarantee
 Acceptance
7.7 LETTER OF CREDIT

Letter of credit is the undertaking issued by issuing bank to honor & reimburse the value of draft
to negotiating bank if documents drawn are strictly as per Letter of Credit complying with all
terms & conditions.
Letter of credit is the most important segment of the non-fund business of the bank. It is also
known as the documentary credit. Letter of credit is the means by which the majority of
international transactions occur. This is a letter written to the seller, signed by the buyer’s bank.
This is the written instrument issued by the bank.
7.8 DUOCUMENST
There are following documents required to open letter of credit
 Contract between buyer and seller.
 Party request on letter head.
 Application form
 Branch covering
 Performa invoice
 Insurance documents
 NTN number which is issued by income tax department
 Backed by the request of customer, Importer(buyer).
 Issued in favor of Exporter(seller).
 Bank promises to pay to beneficiary for goods & services.
7.9 CONDITION FOR THE EXPORTER
 Exporter submits all documents called for.
 Exactly as stipulated in the Letter of Credit.
 Meet all the terms & conditions set out in the Letter of Credit.
7.10 BENEFITS OF LC TO BUYER
 Certainly that goods have been shipped.
 Goods are shipped in definite time frame.
 Payment is made only when the goods have been shipped.
 Finance facility available in case of usance LC.
7.11 BENEFITS OF LC TO SELLER
 Security of receiving payment.
 Immediate receipt of payment.
 Pre / Post shipment finance facility.
 No concern after receipt of payment.
7.12 BENEFITS TO BANK
 Source of earning in shape of commission, charges, exchange difference.
 Opportunity to capture ancillary business.
REF RENCES
www.habib metropoliton bank.com.pk

www.google .com
www.scribd.com
www.investopedia

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IN THE NAME OF ALLAH THE MOST BENEFICIENT AND MOST MERCIFUL

INTURNSHIP REPOR ON HABIB METROPOITONBANK

This Report is submitted in partial fulfillment

The requirements for the programe of CGB

INSTITUTE OF BANKERS PAKISTAN KARACHI

1.1 HISTORY AND INTRODUCTION

named Habib Metropolitan Bank Limited (HMB). Demonstrating a strong commitment to

very strong capacity for timely payment of financial commitments.

Based on a foundation of trust, to be the most respected financial institution, delighting

of excellence and leadership."

1.4 PAACRA RATING AGENCY

implications for the ratings.

 A very high credit quality.

 A very low expectation of credit risk.

 A very strong capacity for timely payments of financial commitments.

1.6 CARPORATE INFORMATION

 Chairman and President Kassim Parkeh

Bashir Ali Muhammad

Mohammad Ali R.Habib (Executive Directors)

Mohammed Ali R Habib

 Muslim commercial Bank

 National Bank of Pakistan

 Standard charted Bank.

PRODUCTS AND SERVICES

There are following non remunerative accounts

 Basic banking accounts

 Foreign currency current account

BASIC BANKING ACCOUNT

It is nonprofit checking account. There is no minimum balance requirements. There are no

restrictions on ATM withdrawals.

 No requirement for maintaining minimum balance.

 No limit on number of ATM / Deposit transactions.

cheque will be applied from the third cheque onwards.

 Free HABIBMETRO ATM/Debit Card.

 Free Funds Transfer within HABIBMETRO.

 Free Web banking services.

 Free payments order

There is no restriction on withdrawals facility. There is no limit on transaction. Individuals,

 The minimum amount required to open the account is Rs 5,000/-

 This is a checking account with no limit on the number of transactions.

average balance is less than 25000/-

 Free Payment Orders

 Free HABIB METRO ATM/Debit Card(for individuals only)

 Free Funds Transfer within HABIBMETRO

 Free Web banking services

 Free Half-yearly Statements

 Rent Free lockers

SUPER CURRENT ACCOUNT

anywhere in Pakistan with a host of free services. With Habib Metro

 Free cheque book

 Free payments order

 Free debit card for individuals only

 Free electronic fund transfer with HABIB MTRO

 Free web info and tele info.

 Free half yearly statements

 Rent free lockers

ADDITIONAL BENEFITS ON AVERAGE BALANCE OF (100,000) IF MAINTAINED

 Free payment stop

 Free demand draft issuance HABIB METRO ONLY

 Free intercity clearing through NIFT

 Free clean bills for collection OBC

 Free pay order and demand draft cancellation

 Free duplicate statements