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INTERNSHIP REPORT ON
BANK AL HABIB LIMITED

Prepared by:
Name: UMAIR SHAHZAD
Class: M. Com.
Roll No.: 182927
Session: 2016-2018
Registration No.: 2016-GCUF-182927

COLLEGE OF COMMERCE
GOVERNMENT COLLEGE UNIVERSITY, FAISALABAD

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DECLARATION

I, Mr. Muhammad Umair Shahzadstudent of M.Com in Government College

University Faisalabad 2016-2018, hereby declare that the material printed in the
Internship Report is my own work and has not been printed, published and
submitted as research work, thesis or publication in any form in any University,
Research institution etc in Pakistan material used from other sources has been
properly acknowledged / referred.

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Acknowledgement

The past of all great works is to eye witness that no great work was ever done
without either the active or impassive support a person surrounding and ones
close quarters, thus it is no hard to conclude how dynamic assistance from
seniors. Could tremendously influence the implementation of a project. I am
highly grateful to our educated faculty Mr. Adnan Afzal for her active direction
throughout the completion of the project.
Last but not the least, I would also want spread my gratefulness to those who
could not be stated here but here well played their role to motivate the curtain.

Muhammad Umair Shahzad

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DEDICATION

I would like to dedicate this Report to my parents, for their never-ending support
and the sense of security they have given when I wanted it most. They have
waited so long for this moment to come true; I am glad that their waiting has
finally been rewarded.

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TABLE OF CONTENTS
CHAPTER # 1
1.1Basic Information 10
1.2 Introduction /Background 11
1.3 Inspiring Growth 11
1.4 Objectives 11
1.5 Functions of bank 12
1.6 Vision of Bank Al Habib Ltd. 12
1.7 Mission of Bank Al Habib Ltd. 13
1.8 Core values 14
CHAPTER #2
2.1Organizational Structure/Hierarchy 15
2.2Organizational structure 15
2.3 Board of Directors 16
2.4 Departments of Organization 17
CHAPTER# 3
3.1Product(s) Introduction 22
CHAPTER# 4 23
4.1Own Work 31
4.1.1 Deposit department 32
4.2 Learning Experiences 33
CHAPTER# 5
5.1SWOT Analysis 35
5.2 Strengthes 36
5.3 Weaknesses 36
5.4 Opportunities 37
5.5 Threats 37
CHAPTER# 6
6.1Financial Statements Analysis 41
6.2Horizontal Analysis 43
6.3Vertical Analysis 45
6.4 Cashflow Analysis 47
6.5Ratio analysis 48
6.6 Organizational Analysis 56
CHAPTER#7
7.1Conclusion 55
CHAPTER#8
8.1 Recommendations 59
8.1.1 Technological Advancements 59
8.1.2 Workshops and Counseling 60
8.1.3 Incentives 60
8.1.4 Priority Banking and Business Development 61
8.1.5 Innovative Products 61
8.1.6 Placements of Employees 61
8.1.7 Amenities in Branch 61
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CHAPTER NO 1

INTRODUCTION & BACKGROUND OF ORGANIZATION

Learning Objectives:

 Basic information
 Inspiring Growth
 Objectives
 Functions of bank
 Our vision
 Our Mission
 Core values


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ORGANIZATION INTRODUCTION
Organization Name
Year of Foundation
Authorized Capital
National Tax Number
General Sales Tax Number
Business Nature
Organization/Company Type
Principal Activity
Major Product(s)/Service(s)
Bi Product(s)/Service(s)
Mailing Address
Phone No.
Fax
Website
E-Mail
Facebook
Bank AL Habib
1991
Rs.15 Billion
Individual
Public Limited Company
Trading/Services
Saving accounts, deposite account, loans, lockers,
Consume finance, ATM, Visa Debt, demand draft
Phone banking ,Pay order , AL Habib Auto finance.
E-mail: info@bankalhabib.com
(041) 2601907-16
Fax: (041) 2601902 & 2601909
www.bankalhabib.com
info@bankalhabib.com
Bank Al Habib (Official)

OUR VISSION

"To be a quality financial service provider maintaining the highest standards in banking practices"

OUR MISSION

“"To be a strong and stable financial institution offering innovative products and services while contributing
towards the National economic and social development”

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CORE VALUES

We are Customer Centric

We have High Moral Standards
We Take Ownership
We are Pro-Active
We Collaborate

Bank AL Habib was incorporated as a Public Limited Company in October 1991 and started
banking operations in 1992. DAWOOD HABIB GROUP, the sponsor of Bank AL Habib
Limited, established Habib Bank in Bombay in 1941. Habib Bank moved its operations to
Karachi after the independence of Pakistan and was nationalized in 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 honour 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, 600
Billion, with a network of 553 branches and sub-branches, a Wholesale Branch in the Kingdom
of Bahrain, Seychelles and Malaysia and Representative Offices in Dubai, Istanbul and
Beijing,China.

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INSPRING GROWTH

AS OF 31 DECEMBER 2016

Financials

Total Deposits 489.424 Billion

Total Advances 201.212 Billion
Total Investments 346.697 Billion
Paid Up Capital 11.114 Billion
Reserves 9.457 Billion
Retained Earning 7.912 Billion
Profits Before Tax = 8.005 Billion
After Tax = 6.025 Billion
2 014 2

Earnings Per Share, P/E Ratio & Break Up value

Earning Per Share Rs. 6.66

Price earnings ratio Rs. 6.25
Break-up value per Rs. 28.52
share

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OBJECTIVE
Bank AL Habib Limited expects all of its employees to act in full compliance with the policies &
guidelines set forth in this Code of Conduct.
It is the employee's responsibility to make oneself familiar with the following and other policies
related to their own business unit:
1. OUTSIDE BUSINESS INTEREST
2. FINANCIAL INTEREST
3. ANTI BRIBERY & CORRUPTION
4. VIOLATION OF LAW
5. POLITICAL PARTICIPATION
6. PROTECTING BANKS RESOURCES
7. ACT OF MISCONDUCT
8. DATA SECURITY AND CONFIDENTIALITY
9. ABIDANCE OF LAWS OF THE LAND
10. PUNCTUALITY
11. SEPARATION FROM THE BANK
12. ETHICS, DISCRIMINATION OR HARASSMENT
13. DRESS CODE & PERSONAL HYGIENE
14. PROTECTING BANK RESOURCES
15. FRAUD, THEFT OR ILLEGAL ACTIVITY
16. EMPLOYEE IDENTIFICATION & SECURITY
17. USAGE OF COMMUNICATION TOOLS
18. RECORD MANAGEMENT
19. TAXATION
20. WORKFORCE DIVERSITY
21. RELATED STAFF MEMBERS
22. DRUG FREE WORKPLACE
23. HEALTH AND SAFETY
24. UNFAIR DEALING PRACTICES
25. MEDIA AND PUBLIC SPEAKING
26. VENDOR RELATIONSHIP

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27. CONFLICT OF INTEREST

28. ACCESS TO BUSINESS INFORMATION
29. CUSTOMER CONFIDENTIALITY
30. PERSONAL INVESTMENTS
31. PERSONAL FINANCIAL NEEDS
32. MODIFICATIONS AND AMENDMENTS
33. BREACH OF CODE OF CONDUCT

Functions of bank:

The banks accept deposits from the public. Deposits can be of current, saving, fixed or profit and
loss saving accounts type.
Banks advance loans to business, traders and exporters. The banks borrow money on interest and
make their income. The loans are provided to public in form of overdrafts, discounting of bill of
exchange or cash credit system etc.
People deposit money in banks and the banks create credit with that amount after keeping with it
small cash in reserve for day to day transactions.
They transfer money from one place to another in country and other countries.
Banks invest in stocks and shares. It purchases securities for the bank’s business and also on
behalf of customer.
Banks provide medium of exchange like cheque. 90% of transactions take place through this
system.
Banks provide service of safe custody. It also provides the confidential report of the customer.
It deducts zakat from accounts on behalf of government. Banks also collects bills, salaries
cheques and promissory notes etc.
Banks also provide many other miscellaneous services such as trade information,
traveler’scheque, supply of credit evening services, export promotion cell, transfer of funds etc

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ORGANIZATIONAL STRUCTURE/HEIRARCHY
CHAPTER NO 2

ORGANIZATIONAL STRUCTURE &HEIRARCHY

Learning Objectives:

 Heirarchy
i
h
&
e
t
a
p
r
o
m
b
c
fi
n
d
y
u
s
l
f
ti
 Board of Directors
ffi
o
k
s
f
h
r
e
m
l
t
i
p
a
c
n
d
v
,
ti
g
u
l
r
t
n
o
d
a
m
b
P
&
I
F
c
e
s
u
i
k
R
g
h
y  Management committies

 Departments of the Organization

The operating structure of the bank is very effective and fulfills the rations of the organization.
The division of work is established among the administration and employees who are expert in
their work. The organization provide them on the job training to make them well awared about
the changing needs of this age of globalization. The currently adopted structure is eefective and
designed for the smooth functioning of the organization.

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BOARD OF DIRECTORS
The Board of Directors of the Bank comprises of the following:

Name Designation
Mr. Ali Raza D. Habib Chairman
Mr. Abbas D. Habib Managing Director & Chief Executive
Mr. Anwar Haji Karim Director
Mr. Murtaza H. Habib Director
Mr. Qumail R. Habib Executive Director
Syed Mazhar Abbas Director
Mr. Shahid Ghaffar Director
Mr. Safar Ali Lakhani Director
Syed Hasan Ali Bukhari Director
Mr. Arshad Nasar Director

Company Secretary
Bank’s company secretary is as follows:

Name Designation
Mr. Mohammad Taqi Lakhani Company Secretary

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DEPARTMENTS OF ORGANIZATION

1. Finance Department

• Allocation of funds
Finance department proportionate the whole funds acquired. It makes the allocations of the funds
for customer lending, government lending, investment in different projects and shares, to bear
the administrative expenses, for the salary and bonuses of employees and training and workshops
etc.
• Sources of funds
Banks make money by lending money at higher rate than the cost of money they lend.The bank
collectsinterest payment from the debt securities and interest on loans. The sources of funds are
as follows:
Deposits
Share equity
Debt
2. Management Department

Centralization/Decentralization

The management is of centralized type at SBl. All the decisions regarding the organization and
the branch banking are taken by the head office.

Work specialization
There is work specialization in the organization, the work is divided among the departments and
each department is responsible for his/her task, the employees also analyzed the working of other
departmetns, which they have to perform during the job rotation.

3. Human Resource Department

Human resource department takes care of all HR matters of banks network in the whole country.
it tries to tries to get the best workforce through out the Pakistan.
• Employees’ recruitment and selection

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For the Employee’s recruitment and selection the advertisement is given on Bank AL Habib
bank’s internet site and the newspapers etc. the applicants are interviewed and the grading
criteria is kept in mind by the HR. the interviewers from the area where the workforce is required
proffered on the other interviewers from distinct areas.
• Training and Development
The HRM provides the training to the new work force and also to the old ones for the
development in their work. The workshops are conducted when a new product is introduced by
the organization. On the job training is also conducted to make the performance better.

Business Volume

Rupees in ‘000
Particulars (un-audited) 31 (audited) 31
March 2017 December 2016
Total Assets 181,668,879 169,233,872

Total Liabilities 167,813,825 155,951,229

Share Capital 11,024,636 11,024,636
Net Income 301,245 299,808

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CHAPTER NO 3

PRODUCTS & SERVICES

Learning Objectives:

 Products

 Services

 Schemes

 Accounts

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Products and Services:

Bank AL Habib offers a diverse range of products & services to cater to the growing banking
needs of our customers. Our brand promise “Rishta Bharosay Kaa”
manifests our commitment to constantly innovate our product suite for the best match of personal
& business needs of our customers, including Commercial,
Retail & Corporate segments.
With our Corporate Vision, “to better serve customers to help them and the society grow” and
our Mission to “provide innovative and efficient financial
solutions to our customers”, we integrate with our valuable customers to provide them
convenient and hassle-free product solutions. Empowered by an
ever-growing network of branches and ATMs, we strive to become the bank of choice for our
existing and potential customers.

 PKR Current Accounts:

Customers can open any PKR Current Account for their day-to-day banking needs and enjoy the
convenience of Banking offered via 550 online branches
and a growing ATM network of 700+ machines across the country. Our popular Rupee Current
Accounts include:
Bank AL HabibApna Current Account
Bank AL HabibApna Current Account is our flagship current account for businesses providing
efficient, accessible and convenient banking transactions.
Bank AL HabibApna Business Account gives numerous free facilities without maintaining any
average balance requirement, including free issuance of
Banker’s Cheques, free online banking, free Cheque books, free VISA Debit Classic Card, and
much more, to help your business grow without
paying for the Banking Services. In addition, Bank AL HabibApna Account comes with free
worldwide accidental insurance cover and ATM withdrawal
coverage to help protect your loved ones by keeping their future secure.

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Bank AL Habib Current Plus Account

Bank AL Habib Current Plus Account is a rupee account which lets you enjoy an array of
banking services available on Bank AL HabibApna Account, free of cost,
without maintaining any average balance and with no restriction on number of transactions.

 PKR Savings Accounts:

Bank AL Habib offers a variety of Savings products for salaried persons or those who have a
fixed regular income to encourage savings. We also have Savings
Accounts for senior citizens and pensioners. Some of our Savings products include:
PLS Savings Account
PLS Savings Account is a basic deposit account with no minimum balance requirement. This
account may be opened with an initial deposit of PKR
100 only. We offer Alternate Delivery Channel Services on these accounts, including VISA
Debit Card and Bank AL Habib Direct Internet Banking.
Monthly Saver Account
Monthly Saver Account is a flexible and fast growing cumulative profit account. The rate of
profit on this account increases with your balance
without any demand and negotiations with the Bank. Monthly Saver Account has no minimum
balance requirement. As with the PLS Savings
Account, this account may also be opened with an initial deposit of PKR 100 only. Alternate
Delivery Channel Services on this account includes
VISA Debit Card and Bank AL Habib Direct Internet Banking.
Bank AL Habib Senior Citizen Account
Bank AL Habib Bank offers a Savings account for its senior account holders so they may retire
with a smile. Bank AL Habib Senior Citizen Account calculates the profit on
the monthly average balances and the profit is credited to the account on the first working day of
the following month. We provide the VISA Debit
Classic Card and the first Cheque book of 25 leaves for free to our Bank AL HabibSenior
CitizenAccount holders.

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 PKR Term Deposit Accounts

Term Deposits
Bank AL Habib Term Deposits are for customers who intend to retain their savings for a fixed
period and earn a higher rate of profit. Term Deposits allow
customers to save a fixed amount in Rupees for a set period ranging from 1 month to 3 years at
attractive profit rates. The depositor has the option
to reinvest the deposit automatically with or without profit.
Diamond Deposits (Monthly Income Scheme)
Bank AL Habib Diamond Deposits provide investment opportunities to investors looking for
additional monthly income with an attractive return. With terms
from 1 year to 3 years, investors earn a monthly profit credited to an associated Current Account
for easy withdrawal and use through the VISA
Debit Card and over 263 Bank AL Habib Bank ATMs across Pakistan.
 Deposit Accounts
Bank AL Habib Bank also offers FCY Current, Savings & Term Deposit Accounts to cater to the
foreign currency transactional needs of our customers.
Financing Products
In addition to our conventional financing products, including Running Finance, Cash Finance,
Finance against Imported Merchandise (FIM) and Finance
Against Trust Receipts the Bank also offers following specific financing products to help the
customers grow their business without worrying about
funding requirement.
Bank AL Habib Speed Finance
In line with our brand promise of “Rishta Bharosa Kaa”, we have introduced “Bank AL Habib
Speed Finance” which is one of the latest addition to our suite
of financing products. It has been designed to provide hassle-free and quick financing solutions
to meet both the short and long term financing
needs of Consumers, Small & Medium Enterprises, Commercial and Retail businesses. This
product allows the customers to avail various financing
facilities which are best suited to meet their particular need(s) enabling them to grow and
prosper.

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Agriculture Financing
Bank AL Habib offers various Agriculture Finance Schemes for the farming and rural
community that help them advance their agricultural operations,
both for Production & Development. The following Agri product suite is available to meet the
needs of our customers:
• Bank AL Habib Revolving Credit Scheme
• Bank AL Habib Farm Mechanizing Support Financing Scheme
• Bank AL Habib Tractor Financing Scheme
• Bank AL Habib Aabiari/Tube well (Water Management) Financing Scheme
• Bank AL Habib Live-Stock Development Financing Scheme
• Bank AL Habib Land Development (Islah-e-Arazi) Financing Scheme
• Bank AL Habib Go-Down, Silos, Cold Storage, etc. Construction Financing Scheme
Financing
Bank AL Habib offers credit facilities to sector of the country to facilitate the customers to grow
their businesses and also contribute their share
towards industrial growth of the country. Our Financing covers a wide range of segments
including manufacturing and trade-related activities.
The Bank is committed to play its role towards strengthening the sector by encouraging quality
players to avail credit facilities from us,
Empowering.

 Consumer Finance
Bank AL HabibAuto Car Finance
You can become the owner of a brand new car through Bank AL Habib Car Finance Scheme.
Bank AL Habib offers Car Finance facility up to PKR 2.0 million,
repayable up to 5 years in equal monthly installments. Processing of application is fast and
hassle-free with partial payment and early settlement
options.
Home Remittances
Bank AL Habib introduces “Bank AL Habib Mehnat Wasool”, the Home Remittance Service.
The service provides customers the convenience of collecting their

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remittances sent from abroad from any of Bank AL Habib’s 553 Branches in 170 cities across
Pakistan. Initially launched with MoneyGram as one of
the international money transfer partners, Bank AL Habib has signed-up with RIA Financial
Services (RIA Money Transfer), Wall Street Finance
Canada Ltd., Al Falah Exchange & Golden Money Transfer under PRI to facilitate its customers.
 Alternate Delivery Channel Services
Bank AL Habib Mobile Banking
Bank AL Habib Mobile Banking lets our customers access their accounts anytime and anywhere
via their mobile phones. Customers can view their account
statements, perform fund transfers, get mobile top-ups and pay their bills conveniently sitting in
the comfort of their homes and offices.
Bank AL Habib Direct Internet Banking
Bank AL Habib Direct Internet Banking provides our customers a hassle-free, simple and secure
platform to operate their bank account from the internet
24/7 from anywhere in the world. Customers can access their Bank AL Habib Banking account
anytime, print account statements, pay utility bills, transfer
funds and view the history of their Bank AL Habib Internet Banking activities with a single click
from their computers.
Bank AL Habib VISA Debit Card
Bank AL Habib VISA Debit Card brings a cashless experience of spending and making
payments countrywide and across the globe. Customers are
privileged to avail unmatched opportunities and benefits of the VISA Classic Card and VISA
Debit Gold Card.
SMS Alert
Bank AL Habib offers SMS Alert Service to all of its customers, in order to make them feel
secure and in control of their spending. The alerts are instant
and keep customers updated about their account transactions.
Phone Banking
Customers can access their account 24/7 with Bank AL Habib Phone Banking. With a telephone,
VISA Debit Card number and T-pin, customers gain instantaccess to their accounts and get all
the information they need. Simply dial +92-21-111-014-014

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 Protection and Coverage Products

Bancassurance
Bank AL Habib Bank offers numerous coverage products to protect customers and their dear
ones. Benefit from an array of Bancassurance products to
match your specific needs, ranging from your children’s education plans to business protection
plans:
• Bank AL Habib Saver Plan
• Roshan Takmeel Plan
• Roshan Aghaz
• Karobar Muhafiz Product
ATM Withdrawal Coverage - Takaful
Bank AL Habib Takaful ATM Withdrawal Coverage is a product that covers you in the event of
loss of cash resulting from armed hold-up or forced
deprivation on withdrawals from any 1-Link/Mnet ATMs in Pakistan. The coverage is available
for both conventional and Islamic account holders.
Bank AL Habib Islamic Banking
Bank AL Habib Islamic Banking segment “Bank AL HabibIslamic” offers a broad range of
100% Shari’ah-Compliant financial solutions. Our Islamic portfolio includes:
Financing Products
• Murabaha
• Ijara
• Salam
• Diminishing Musharaka
• Trade Finance
• Letter of Credit & Guarantees
• Deposit Products
• Bank AL Habib Aasaan Business Account
• Bank AL Habib Bachat Savings Account
• Bank AL Habib Munafa Savings Account
• Bank AL HabibIslamic Term Deposit
• Bank AL HabibIslamic Tijarat Account (Local and Foreign Currency)

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Corporate Advisory
Bank AL Habib provides a one-window approach to its valued Corporate customers for their
Working Capital, Project Finance, Trade Structuring and
Investment Banking needs through our dedicated Relationship Managers and Branch Channels in
a seamless manner.
Cash Management
SBL’s Cash Management Channel ‘Bank AL Habib Trans@act’, provides our valued customers
with a comprehensive, end-to-end cash flow management,
i.e Receivables and Payables Management, in the most effective and efficient manner.
Our CM service, comprises of a full array of products & services, designed and tailored to enable
Corporate, Commercial and SME customers to
securely exchange funds and financial information in real-time with their trading partners, for the
optimal management of working capital.

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CHAPTER NO 4

OWN WORK

Learning Objectives:

 Duties performed

 Learning Experiences

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OWN WORK

 Duties performed:

I performed the following duties in Deposit department during my job.

Deposit department:
In deposit department I performed the duties of accepting inward clearing and outward clearing
and to make their entries in ledgers.
1. Clearing:

There are two types of clearing

 Inward clearing

In inward clearing the SBL recieves the cheques of other banks where the customers of SBL
have also bank accounts. The SBL receive these cheques for clearing purpose through NIFT.
NIFT has a function to drop the instruments to the banks and then debited the reciever bank and
credited the sender bank for inward clearing. When the bank receive the instrument the
information i.e date, account title, signature, stamps (branch stamp, clearing stamp, account
credited realization stamp and if the cheque has been sent for more than one time the cancelation
stamp are to be checked), amount written in words and figures and to check the balance
remaining in account.
When all the requirements are fulfilled I was obliged to enter them in inward ledger. Incase if
any requirement is not with the clearing the instrument will be return back to the bank.
For the purpose of returning the cheque it has to fill the returning memo which includes the
following information with it.
1. Returning date

2. Number of the instrument

3. Account number

4. Reason

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5. Stamp and signatures of the departmetn head.

After filling the following information I attach it with a bundle cover. I have to wrote the
following details on the bundle cover.
6. Date

7. Number of instrument

8. Stamp of the branch

9. Signature of officer.

The returning of instrument also take place via NIFT. At the start of day the inward clearing has
been received by the officer and after it the returning instruments separated if any. Then I were
used to do balancing on inward clearing ledger.
 Outward clearing:

A clearing in which the SBL receives the instruments of their account holders with other banks is
called outward clearing. Outward clearing takes place via NIFT. In eveing the instruments are
received by NIFT and pay them to their banks on next day. After the completion of the process
the, receives bank credit its customer’s account and the other one debit its customer’s account.
I was used to receive the cheques from customers and filling of information on deposit slips. The
payee’s account will be credited on realization stamp and

the other stamps are also pasted like branch stamp, clearing stamp, after completing this all
process I used to enter the information in outward ledger and send them by NIFT.
Same day clearing:
In this clearing the procedure of clearing is just same like normal celaring, but the difference is
that it takes place on the same day between 9:00 am to 9:30 am. I also sent these types of
clearing during my internship.
Intercity clearing:
Intercity clearing takes place among different cities. The procedure of this clearing is same like
normal clearing. I also perfrom the duty of receiving and sending od intercity clearing.

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Cheque book issuance:

The people who have account with the bank receives cheque book. There exist a leaf in the
cheque book which the account holder gives to acquire a new cheque book. The officer used to
fill it and makes the entry for issuance of cheque book. After that I used to enter details in cheque
book issuance ledger. There are a minimum charges charged by the bank on issuance every new
cheque book.
Attaching the vouchers:
I performed the duty of attaching the vouchersof deposties and remittances department on next
day.
Filling of deposit slips:
I performed the duty of filling depositers slips against cash and cheque. For cash deposits, the
customers pay cash at counter.I used to stamp these deposit slips and took signatures by the
depositor and officer. There are two parts of this deposit slip, one part is kept by the bank for
record purposes and the other is returned to the customer.
Learning Experiences

a. Knowledge Gained:
I gained the knowledge about the working of the bank. It helps me to go through the practical
uses of knowledge which I learned in the courses of management of financial institutions. I got
value able work experience. I learned about the opening of new accounts with the banks, to fill
customer deposits slips and the cheque filling.
b. Skills Learned:
I learned the skills to read financial statement of the bank and to analyze it with other banks. The
subject of organizational behavior was quite helpful to work with a team.
c. Attitudes/Values:

Integrity is most important for success. It demonstrates sound moral and ethical principles of a
person regard to his/her work. Honesty and trust are essential to integrity. Performing with honor
and truthfulness are important. The others trust can be gain with integrity.
Dependability is also an important value for success in a job position. It is helpful to become
essential part of the organization.

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d. Most Challenging Task:

Filling the form to open a new account was the most challenging task assigned to me. I
performed it well in manner.

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CHAPTER NO 5

SWOT ANALYSIS

Learning Objectives:

 Strengths

 Weaknesses

 Opportunities

 Threats

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SWOT ANALYSIS

1.1 DEFINITION of 'SWOT Analysis'

A tool that identifies the strengths, weaknesses, opportunities and threats of an organization.
Specifically, SWOT is a basic, straightforward model that assesses what an organization can and
cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to
take the information from an environmental analysis and separate it into internal (strengths and
weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT
analysis determines what may assist the firm in accomplishing its objectives, and what obstacles
must be overcome or minimized to achieve desired results. SWOT analysis is based on the
strengths, weaknesses, opportunities and threats. I found thefollowing main points for SBL in
regard of SWOT analysis.

Strengths:
 The profitability of the organization is improving and there is a growth trend in system
share.
 The bank has designed its website to provide quick services and to be user friendly to its
customers

 It enhances the communication of information in regard to the need of valued customers.

 It provides the facility of mobile banking, VISA debit card etc to their customers.
 The workforce is very cooperative and dedicated. They are loyal and active. They
provide quick services to their customers.
 They provide loan on lowest interest rate and give a high markup on deposits.
Weaknesses:
 Bank is operating well but its marketing is not quite effective.
 The bank is not well commercial.
 From the time being they did not emphasize in the advertisement.
 Advertisement is a way to keep customers abreast with services and products.

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 The bank has remained its focus only with big cities, bank is needed to educate people
about the functioning of bank and vast their network.
 There are no foreign branches so the bank bears an extra cost for correspondent banks.
 The employee development and PROMOTION IS POOR

Opportunities:
 It is a growing organization and can capture and penetrate corporate customers by
expanding their network.
 It is operating special products like Bank AL Habib Home finance, car finance and
personal finances etc.

 Due to excellent routine banking it has earned a good name.

 Islamic banking is a feature which attracts large numbers of customers who do not want
to deal with non-Islamic banking system.
 The business expansion to the foreign market can also increases the funding of the bank

Threats:
 The saving of the people is decreasing due to the high inflation rate in the country. People
have less money with them to deposit. Thus the deposits of the banks are decreasing, it is
a great threat for the future banking of Pakistan.
 The other banks are also providing the same type of products like car finance, home
finance and self finance.
 There is more competition among the banks.
 Other banks are also opening their branches all over the Pakistan and the foreign banks
are also like to open their branches there.
 There is uncertainty in political and economic environment of Pakistan it’s a threat also.

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SWOT ANALYSIS
The following SWOT analysis highlights Bank AL Habibstrengths, weaknesses, opportunities
and threats.
S Strength:
 Expert team of Retail audit.
 Best team coordination.
 Expert in public relationing.
 Expert in marketing.
 High investment.
 Established the first Radio index.
 Pioneering investment in business
sector.
 First market research tool.
 Mobile measurement in 10 countries.
 Billons of sales transaction a month.
 Profitability of bank is improving.
 It provides the facility of mobile
banking, VISA debit card
 The workforce is very cooperative and
dedicated.
 They provide loan on lowest interest
rate
O Opportunities:
 Can capture and penetrate
corporate customers by
expanding their network.
 It is operating special products
like Bank AL Habibghar finance,
car finance
 Due to excellent routine banking
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P a g e | 34
W Weakness
 Big gap between lower team and
management.
 Not equal distribution of opportunities.
 Due to covering remotes areas from basic
stations the cost was double.
 Difficulties to understand the consumer
behavior.
 Market is not quite effective
 The focue is only in big cities.
 The employee development and promotion
is poor.
 They did not emphasis on advertisement.
 The bank is not well commercial.
T Threats:
 Now a day’s many Research
companies in market therefore
competition is growing fast.
 Due to increase in terror in Asia to
cover the remote areas is though.
 Threat of fake reporting due to any
individual mistake.
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it has earned a good name.  The deposits of the banks are

 The business expansion to the decreasing
foreign market can also increases  There is uncertainty in political and
the funding of the bank. economic environment of Pakistan
it’s a threat also.

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CHAPTER NO 6

FINANCIAL STATEMENTS ANALYSIS

Learning Objectives:

 Statement of financial position

 Three years vertical analysis

 Three years horizontal analysis

 Cash Flow analysis

 Financial Ratios

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Statement of Financial Position

AS AT 31 DECEMBER 2017 2017 2016 2015

ASSETS
Cash and balances with treasury banks 15,776,136 12,672,753 38,577,760
Balances with other banks 1,024,566 957,170 3,204,284
Lendings to financial and other institutions 154,342 2,737,751 5,818,072
Investments – net 75,715,677 46,702,797 355,081,488
Advances – net 106,083,673 97,179,028 205,858,857
Operating fixed assets 5,216,811 4,008,574 15,782,394
Deferred tax assets – net - 103,495 _
Other assets – net 9,204,102 4,872,304 15,700,959
213,175,307 169,233,872 640,023,814
LIABILITIES
Bills payable 2,779,715 2,577,943 8,665,462
Borrowings 25,824,908 10,485,479 62,592,299
Deposits and other accounts 163,250,371 140,579,907 516,197,547
Sub-ordinated loans - - 2,994,600
Liabilities against assets subject to finance - -
lease
Deferred tax liabilities – net 1,419,963 - 3,627,612
Other liabilities 2,861,123 2,307,900 7,754,760
196,136,080 155,951,229 601,832,280
NET ASSETS 17,039,227 13,282,643 38,191,534

REPRESENTED BY
Share capital 11,024,636 11,024,636 11,114,254
Reserves 933,911 617,500 10,329,233
Discount on issue of right shares (1,001,361) (1,001,361) (112979)
Unappropriated profit 3,150,185 1,809,641 10,414,605
14,107,371 12,450,416 31,745,113
Surplus on revaluation of assets - net of 2,931,856 832,227 6,446,421
tax
17,039,227 13,282,643 38,191,534

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THREE YEARS’ VERTICAL ANALYSIS

STATEMENT OF FINANCIAL POSITION/PROFIT

201720162015
Millions % Millions % Millions %
( R s . I n Million)
Statement of Financial Position
Cash and balances with treasury banks 15,776 7% 12,673 7% 38,577 7%
Balances with other banks 1,025 0% 957 1% 3,204 0%
Lending to financial and other institutions 154 0% 2,738 2% 5,818 0%
Investment-net 75,716 36% 46,703 28% 355,0 56%
Advances-net 106,084 51% 97,179 57% 205,8 34%
Operating Fixed assets 5,217 33% 4,009 2% 15,78 2%
Deferred tax assets-net - 0% 103 0%
Other assets 9,203 50% 4,872 3% 15,700 2%
213,175 100% 169,234 100% 640,023 100%
Liabilities and Equity
Customer deposits 163,250 77% 140,580 83% 516,197 81%
Borrowings 25,825 12% 10,485 6% 62,592 9%
Bills payable 2,780 1% 2,578 2% 8,665 2%
Other liabilities 2,861 1% 2,308 1% 7,754 2%
Deferred tax liabilities-net 1,420 1% - 0% 3,627 1%
sub-ordinated loans - 0% - 0% 2,994 0%
196,136 92% 155,951 92% 601,832 95%
Net Assets 17,039 8% 13,283 8% 38,191 5%
Represented by
Share Capital (net of discount) 10,023 5% 10,023 6% 11,114 2%
Reserves 934 0% 618 0% 10,329, 2%
Un-appropriated profit 3,150 1% 1,810 1% 10,414 2%
Surplus on revaluation of assets 2,932 1% 832 0% 6,446 2%
17,039 8% 13,283 8% 38,191 8%
Profit & loss account
Mark-up / Return / Interest Earned 16,871 86% 13,601 85% 13,778 88%
Fee, Commission , Brokerage and
-Exchange income 1,939 10% 1,600 10% 1,191 8%
Capital Gain and Dividend Income 535 3% 623 4% 528 3%
Other income 171 1% 177 1% 138 1%
Total Income 19,516 100% 16,001 100% 15,63 100%

Mark-up / Return / Interest Expensed 10,626 54% 8,751 55% 8,934 57%
Operating expenses 5,899 30% 4,985 31% 4,459 29%
Provisions 549 3% 735 5% 520 3%
Taxation 860 4% 493 3% 618 4%
Total Expenses 17,934 92% 14,964 94% 14,531 93%

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Profit after taxation 1,582 8% 1,037 6% 1,104 7%

THREE YEARS’ HORIZONTAL ANALYSIS

STATEMENT OF FINANCIAL POSITION/PROFIT & LOSS

201720162015
STATEMENT OF millions % millions % millions %
FINANCIAL POSITION
ASSETS
Cash and balances with treasury banks 15,776 40% 12,673 32% 38,577 100%
Balances with other banks 1,025 31% 957 29% 3,204 100%
Lending to financial and other institutions 154 - 2% 2,738 47% 5,818 100%
Investment-net 75,716 21% 46,703 31% 355,0 100%
Advances-net 106,084 51% 97,179 47% 205,8 100%
Operating Fixed assets 5,217 33% 4,009 25% 15,78 100%
Deferred tax assets –net - _ _ _ _ _
Other assets 9,203 50% 4,872 31% 15,700 100%
213,175 33% 169,23 26% 640,023 100%
Liabilities and Equity
Customer deposits 163,250 31% 140,580 27% 516,197 100%
Interbank borrowings 25,825 41% 10,485 16% 62,592 100%
Bills payable 2,780 32% 2,578 29% 8,665 100%

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Other liabilities 2,861 36% 2,308 29% 7,754 100%

Deferred tax liabilities 1,420 39% - 0% 3,627 100%
sub-ordinated loans - 0% - 0% 2,994 100%
196,136 513% 155,951 408% 38,191 100%
Net Assets
Share Capital (net of discount) 10,023 90% 10,023 90% 11,114 100%

Reserves 934 9% 618 5% 10,329 100%

Un-appropriated profit 3,150 30% 1,810 - 17% 10,414 100%

Surplus on revaluation of assets 2,932 45% 832 - 12% 6,446 100%

Total Equity 17,039 138% 13,283 34% 38,191 100%
PROFIT & LOSS ACCOUNT
Mark-up / Return / Interest Earned 16,871 122% 13,601 99% 13,778 100%
Fee, Commission, Brokerage and
- Exchange income 1,939 168% 1,600 134% 1,191 100%
Capital Gain and Dividend Income 535 101% 623 118% 528 100%
Other income 171 -123% 177 128% 138 -100%
Total Income 19,516 124% 16,001 102% 15635 100%
Mark-up / Return / Interest Expensed 10,626 118% 8,751 -98% 8,934 -100%
Operating expenses 5,899 132% 4,985 112% 4,459 100%
Provisions 549 106% 735 141% 520 100%
Taxation 860 139% 493 -80% 618 100%
Profit after taxation 1,582 143% 1,037 -94% 1,104 100%

Interpretation of Horizontal Analysis of Balance Sheet of Bank AL HabibBankLimited:

 Horizontal Analysis of the Bank Balance Sheet has been prepared by taking the year 2015as the
base year ad the remaining years as compared to the base year. Themost liquid asset of the Bank
such as cash and balances with treasury Bank hasincreased from the year 2015 to 2016 that is
96% in 2015 and 110% in 2016, where asother liquid assets such as balances with other Banks
and lending to financial andother institutions have shown a decreasing trend such as balances
with other Banks is90% in 2015 and 34% in 2016 and lending to financial institutions is 126% in
2015 and87% in 2016. The reason for this declining trend might be the uncertain political andlaw
and order situations in Pakistan. All other assets such as mark-up accrued in localcurrency, rent
and repayments, suspense account, stamps on hand etc shows aincreasing trend as well as fixed
assets, advances and investment also have shown apositive trend. The overall effect is increased
in total assets.Liabilities especially current liabilities have shown a significant increase in
2011to2015. Bills payable increases from 76% in 2015 to 107% in 2016 and
similarlyBorrowings from 144% to 160% and Deposits and other accounts from 102% to
122%.This increase in current liabilities depicts that the Bank is performing its
operationssuccessfully. Percentage of sub-ordinate loans almost same in both the years.

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Other liabilities also increase from 139% to 167%. In the end the net assets increased from108%
to 118%. Bank AL Habib Bank Limited shows progress in all fields including the
financialposition due to this the market share of Bank AL Habib Bank also increases
 
 

FINANCIAL RATIOS
(a) Liquidity Ratios
 Current Ratio:
“The current ratio determines short term debt paying ability of the organization.”

Current ratio = Current Assets / Current Liabilities

Current Ratio
2017 2016 2015
Ratio = Current Assets/Current
Liabilities 1.3 1.6 1.5

I calculated current assets and current liabilities form the balance sheet of the
organization. From the total assets and liabilities, I deducted non-current assets and non-current
liabilities. Then I divided current assets by current liabilities.
Interpretation: It shows a firm’s ability to cover its current liabilities with its current assets.
Higher is the current ratio; the greater will be the ability of the firm to pay its bills and
obligations. Normal rate of this ratio is 2:1, which is considered well. The upper graph shows
that organization has sufficient assets to fulfill its liabilities but by the time being in
2016liabilities have been increased. The year of 2015 has best position with current ratio.

 Acid Test Ratio / Quick Ratio:

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“The acid test ratio or quick ratio relates the most liquid asstes to current liabilities”.
Acid Test Ratio = (Current Assets-inventory–prepayments) / Current Liabilities

Quick Ratio 2017 2016 2015

Ratio = (Current Assets-

Inventory)/Current Liabilities 67.46% 70.16% 68.30%

This ratio is just like current ratio but difference is that I deducted inventory
from current assets and the answer which I got, I divided it by current liabilities.
Interpretation: This ratio is also called Quick Ratio. In this ratio, inventories and pre-paid
expenses are excluded from current assets. Only cash, marketable securities and Receivables
(called Quick Assets) are considered.
For Quick Ratio, the normal ratio is 1:1. quick assets should be equal to current
liabilities. It should be noted that current ratio measures “general liquidity”, whereas quick ratio
measures “immediate liquidity”. Upper calculations show that year 2016 has the weakest
position than 2016 and 2015. The year 2016 has less quick asset as compared the liabilities.

 Working Capital Ratio:

“The working capital of the business is an indication of the short run solvency of the
business”
Working Capital = Current Assets – Current Liabilities

Working Capital 2017 2016 2015

W.Capital = Current assets-current

Liabilites 99,680,977 85,519,033 55,926,185

I summed up all current assets and current liabilities form the balance sheet of the firm and
deducted all current liabilities from the all current assets. In this way I got working capital.

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Interpretation: It is the difference of Current Assets and Current Liabilities. The year 2016
has maximum current assets and current liabilities than 2016 and 2015.The flow of current
assets and liabilities is upward with the time being.

(b) Leverage Ratios

 Debt Ratio:
“The ratio indicates the firm’s long term debt paying ability”
Debt Ratio = Total Debt / Total Assets

Debt Ratio 2017 2016 2015

Ratio = Total Debt/Total Assets 0.92% 0.92% 1.08%

How much organization has taken loans, trade and other payables. I summed all these and I
divided the answer by total asset to get debt ratio.

Interpretation: A ratio that indicates what proportion of debt a company has relative to its
assets. The measure gives an idea to the leverage of the company along with the potential risks
the company faces in terms of its debt-load. In 2010, the company took huge amount of debt as
compared 2009 and 2008. The amount of debt in the years of 2009 and 2008 is rather same but in
2010 debt amount increased rapidly. In 2010 sundry creditor and advances from the customers
were increased.

(c) Profitability Ratios

 Net Profit Margin Ratio

“this ratio indicates the organization’s margin towards profit against sales”

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Net Profit Margin = Net profit / Net sale*100

Net Profit Margin 2017 2016 2015

Ratio = Net Profit/Net Sale 1.8% 1.5% 3.3%

From net sales I deducted total factory cost to get net profit, then I divided this net profit by net
sale to calculate net profit margin. In this profit and loss account here is not any sale return.

Interpretation: This ratio is used to evaluate a company’s operational efficiency. The year
2015has highest net profit ratio. The sale graph is going upward and year 2016 has lowest net
profit margin. Years of 2016 and 2015 have the highest amount of cost of good sold that
decreased the net profit ratio.

 Return on Assets Ratio:

“In this ratio we measures the total income earned by the total assets of the organization”
Return on Assets = Net income / Total Assets

Return on Assets 2017 2016 2015

Ratio = Net Income/Total Assets 0.83% 0.63% 0.77%

From sale I deducted cost of good sold and got gross profit. From gross profit I deducted
operating expenses, administrative expenses and tax and got net income. Then I divided net
income by the amount of total assets and got return on asset ratio.

Interpretation: It measures that how effectively a company uses its assets. In spite of lowest
amount of total assets in the year of 2015, the organization used effectively and earned more than

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the years of 2015 and 2016. Total assets of the organization are increasing year to year due to
increase of sale of finished products.

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CHAPTER NO 7

CONCLUSIONS

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CONCLUSION

The findings are the facts that we discover from the analysis of an organization and in the light of
those findings we give the suggestion, which are realistic and adoptable for the organization.
After critically analyzing both the operations and financial data of Bank AL Habib,let me
summarize the findings of the report. Here, few finding and implementation plans are given to
overcome the problems mentioned in the previous chapter. These analysis are mainly based on
my practical working & experience at the BAHL. The economy of the country is booming and
with the investment favorable policies andtheir smooth implementation, the role of banks in
today’s economy have become animportant one.

The banking industry is also reaping the fruits of this economic boom by growing rapidly
over the past few years. There are a number of mergers happening in the economy with
foreign investments coming into the banking sector.
It has been twenty-fifth years since the establishment of BANK AL HABIB and since its
establishment
it has aimed to become the leading bank of Pakistan by that provides outstanding services
to its customers.
The bank has seen phenomenal growth in the past few years by opening more branches in
the country, increasing the deposit base, while also increasing the assets and profits of the
bank.
The services that BANK AL HABIB provides have a great market penetration not only because
of their features but also the profit and markup rates that they charge. Also the products
that BANK AL HABIB provides cater to sector of the economy.
The top management of the bank is always developing strategies that cope with
unexpected challenges to deliver products and services more efficiently
Furthermore, as the bank is growing, the number of employees at Bank AL Habib are
increasing, which shows that Bank AL Habib is being considered as a an employer, that
provides its employees with a challenging environment to work in, where they can
harness their full potential and shows confidence as an employer by the employees of the
bank.

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Lastly to become the leading bank of Pakistan, Bank AL Habib has to benchmark
itsservices to its major competitors in the industry or the market leader in the industry and
provide a continuous mean of improvement in its existing products and services, while
introducing new ones to the industry.
In the last section, I would like to give some recommendations and is hoped that if they
are implemented will bring benefits to Bank AL Habib.

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CHAPTER NO 8

RECOMMENDATIONS

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RECOMMENDATIONS

Some of the recommendations that I would recommend to some of the problems

discussed in the above section, that might increase the efficiency of both the operations
and employees of Bank AL Habib are as follows

8.1 Technological Advancements

Bank AL Habib should develop a modern connectivity architecture to effectively maintain
an online connection of the branch with other branches and also the ATM link, which
may include using modern technologies like fiber cables, routers etc. Also backup links
should also be developed,
Also a proper IT department should be established in all branches, with professional
having the knowledge to maintain a secured connection with other banks. Also scheduled
backups of data should be done within the bank.

8.2 Workshops and Counseling

Work shop programs should be conducted in every city, rather than just two centers, for
all Bank AL Habib employees. These workshops should relate to all aspects of banking and
may also be conducted with other banks as a joint program.
Also as parts of the human resource training, counseling programs should be started for
junior executives or new entrants into the bank, introducing them to their prospects in this
industry.
The lower staff employed at Bank AL Habib should also be given a chance to succeed in
life by training them in different simple jobs at the bank, which my include sorting of
cheques, phone banking etc.

8.3 Incentives
Incentive schemes should be developed for the employees that can help motivate them,
which might include:
Personal loans and car financing facilities for all ranks of employees.
Scholarship programs for all employees.

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Introducing employee awards at branch and regional levels.

Job rotation programs to enhance the skills of employees.
8.4 Priority Banking and Business Development Department
There is no priority banking department at Bank AL Habib like that of other bank. A
priority banking department should be developed so as to give even more exclusive and
customized services to high end customers with large deposit accounts. Also Business
Development Department should be developed in all branches, so that they can actively
find prospect customers to take up products from Bank AL Habib.
8.5 Innovative Products
New and innovative products should be introduced by Bank AL Habib like other bank such as
Citibank and Standard Chartered Bank develops for their customer. For this purpose,
special teams should be developed that include professional from all departments of the
banks to come with ideas. This process will increase the number of ideas generated and
even produce innovative products for the bank that might give them the edge.
8.6 Placements of Employees
There are some departments in the bank that do not have enough employees, while some
have more than needed. All this creates inefficiencies and so the operations manager
should look at the department of the branch and see where inefficiencies lie, in
consultation of with the heads of the departments and hire individuals where there are
less employees or rotate employees from other departments.
8.7 Amenities in Branch
There should be a prayer room developed in all branches as many employees want to
pray, but do not have the proper place to do it. Also work like sorting, which takes up a
lot of space should be done in a separate place and amenities like television and internet
connection should be placed in the common room, so as to give employees a relaxing
environment when they have a break.