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EXECUTIVE SUMMARY
We have established a new record in the banking sector by achieving pre-Tax Profits of Rs. 15.14 billion for the year 2007.Net profits climbed to Rs. 2.04 billion from Rs. 10.1 billion. Given the wide geographical operations of Habib Bank Group in 25 countries, this reflects the benefits of embedding technology in all parts of the Bank. In Consumer Banking we introduced Auto Financing and Life Style Financing Scheme for consumer durables and further expanded the Flexi Loan Scheme. HBL was the first bank to offer low cost US Dollar financing to help exporters and now has over Rs 12 billion in such loans, the largest of any bank in Pakistan.HBL also launched Online Banking, Internet Banking and PC Banking in 2008, offering a full service, round-the-clock access to banking. With inflation below 11%, the State Bank cut the Discount Rate to 12.5% from 113.5% in January 2008. The increase in foreign exchange reserves has led to strong growth in banking sector deposits. For the overall banking sector, average lending rates have declined by 2.75% and yield on government securities has declined by 3.5-8%, with steeper falls in the second half. Customer deposits grew from Rs 273 billion to Rs 306 billion (12%) and Assets from Rs 334 billion to Rs 403 billion (21%). Net Revenues increased from Rs 14.1 billion to Rs 16 billion (+13%). Habib Bank also had continued success in recovery of defaulted loans in 2008, with cash recoveries of Rs 3 billion. Overall, return on customer loans declined from 10.5% to 8.5% a reduction of 2%. Declining yields on customer advances, T Bills and National Saving products have forced us to lower rates on our deposits. This narrowing of spread reduced the Bank’s profitability by around Rs 3 billion. Corporate and Investment Banking Group continues to face tough price competition, as the market growth has been limited. Our International and Overseas Banking Group is an invaluable asset of HBL. Economic growth is expected to pick up, with low interest rates leading to higher investment.

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Mission Statement
“To make our customers prosper, our staff excel and create value for shareholders”

COMMERCIAL BANKING IN PAKISTAN
It was very difficult for Pakistan to build up its own Banking system immediately after independence without sufficient resources. Following the announcement of the partition plan in June 1947 there was a haste movement on the parts of banks to transfer their funds and accounts across the borders. The banks having their registered offices in Pakistan were transferred to India. In an effort to bring about the collapse of the new state by the persecuting an international policy of withdrawal, the Indian bank offices closed quickly. Those banks, which stayed, were considering the winding up of their business. By 30th June 1948 the number of schedule banks in Pakistan declined from mere scratch. Today there are more than 7000 branches of commercial banks along with an established network of supplementary financial institutions. All this development in the banking sect is the result of untiring efforts of four decades.

Phases of banking in Pakistan
Broadly speaking we can divide the development of commercial banking into four phases: PHASE-1 1947-1974 Establishment of commercial banking system PHASE-2 1974-1979 Nationalization of banks PHASE-3 1979-1991 Islamisation process PHASE-4 1991-2000 Privatization process PHASE-5 2000-Onward

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Introduction of Habib Bank
HBL established operations in Pakistan in 1947 and moved its head office to Karachi. Our first international branch was established in Colombo, Sri Lanka in 1951 and Habib Bank Plaza was built in 1972 to commemorate the bank’s 25th Anniversary. With a domestic market share of over 40%, HBL was nationalized in 1974 and it continued to dominate the commercial banking sector with a major market share in inward foreign remittances (55%) and loans to small industries, traders and farmers. International operations were expanded to include the USA, Singapore, Oman, Belgium, Seychelles and Maldives and the Netherlands. On June 13, 2002 Pakistan's Privatization Commission announced that the Government of Pakistan had formally granted the Agha Khan Fund for Economic Development (AKFED) rights to 51% of the shareholding in HBL, against an investment of PKR 22.409 billion (USD 389 million). On February 26, 2004, management control was handed over to AKFED. The Board of Directors was reconstituted to have four AKFED nominees, including the Chairman and the President/CEO and three Government of Pakistan nominees.

Commercial Banking:
HBL’s Commercial Banking Group targets medium sized companies with a turnover of at least PKR 50 million. Our business units are located in Karachi, Lahore, Faisalabad, Sialkot, Gujranwala and Peshawar. Each unit is dedicated to service business clusters located within these cities. We have the ability and the resources to meet the needs of your business with our pro-active, responsive and experienced Relationship Managers who are committed to understanding your business.
We offer financing for the following: • • • • • • • • Working Capital Procurement of Inventory Receivables Procurement of Machinery Expansion of production facilities Import of raw materials Exports Guarantees

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Management Committee Names
Zakir Mahmood Khayyam Mahmood Butt Atif R. Bokhari Sohail Malik Naeem Iqbal Khaleeq Kayani Jamil Iqbal Altaf Hussain Hanif Akhai Ayaz Ahmad Jamil A. Khan

Designation
President and Chief Executive Officer SEVP & Group Executive Information Technology. SEVP & Group executive Corporate & Investment Banking SEVP & Group Executive Corporate & Investment Banking SEVP & Group Executive Remedial Management Asset

SEVP & Group executive International SEVP & Group Operations executive Global

SEVP & Group executive Audit, BRR & Investigation SEVP & Treasury Group executive Global

SEVP & Group executive Financial Control & Corporate Planning SEVP & Banking Group executive Retail

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Management Hierarchy
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PRESIDENT BOARD OF DIRECTOR MEMBER EXECUTIVE BOARD REGIONAL CHIEF ZONAL CHIEF BRANCH MANAGERS

Business Groups
1)-CORPORATE AND INVESTMENT BANKING GROUP (CIBG) Corporate and Investment Banking Group Operation
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CIBG serves large institutional and corporate customers in Pakistan through 12 dedicated corporate banking centers in all major cities. The CIBG portfolio consists of most of the largest names in the market and represents all major industry groups, including textiles, large scale manufacturing, telecommunications, petrochemicals, fertilizer, airlines, transportation and services. It offers its clients a comprehensive range of banking services via a one window interface through designated relationship managers.

2)-GLOBAL TREASURY GROUP (GTG) Global Treasury Group Operation:The role of our Treasury is reviewing, streamlining and controlling the Bank’s domestic and international money and foreign exchange markets related operations for the maximization of returns on assets and equity, aiming to transform treasury related risks into safe revenues on a continuing basis.

3)-INTERNATIONAL AND OVERSEAS BANKING GROUP (IOBG) International and Overseas Banking Group Operation:HBL’s international network is amongst the most extensive of emerging market banks with a presence in 25 countries through 120 offices of the Group and its affiliates. The network spans the principal financial centers of USA and Europe, and the developed and emerging markets in Asia, the Middle East and Africa. The Bank’s 50 year history in the international market provides it a well established network of both commercial customers and correspondent banking relationships.

4)-RETAIL BANKING GROUP (RGB)

Retail Banking Group Operation:The Retail Banking network, with 1425 branches, is the core strength of Habib Bank. Its extensive reach in all geographic locations – urban and rural – throughout the country, provides access to over 5 Million customers across all sectors of the economy. The network provides HBL with the largest diversified low cost deposit base of any bank in Pakistan, and forms the University Of Sargodha

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basis for many of our other business lines, corporate and investment banking and treasury activities. RGB has three principal areas of activity: 1. The retail network for deposit mobilization. 2. Commercial banking group to serve small and medium enterprises (SME). 3. Consumer banking group. Deposits mobilization, the traditional strength, continued to perform strongly in 2008 with deposits growing by 12%.HBL has moved aggressively and has already introduced three major products: 1. Personal Loans 2. Car Financing 3. Durable Financing in association with major suppliers of consumer products

DEPARTMENT OF HABIB BANK
Habib Bank is performing its activities through the following functions:

DEPOSIT DEPARTMENT
The function of deposit department is to collect deposits from customers. Following type of deposits are offered by Habib Bank. i. Current deposit ii. Saving bank deposit iii. Profit and loss saving account iv. Fixed deposit v. Foreign currency deposit

1. Current Deposits In the type of account the client is allowed to deposit or withdraw money as and when he likes. He may, thus, deposit or with draw several times in the day if he likes. Usually the bank allows this and service chargers are deducted by the bank and current deposit account. 2. Saving Bank Deposits This type of account is for those persons who want to make small savings. This type of account is opened with Rs. 100. In this case deposits can be made only up to a costing amount and with drawls are allowed twice a week. If the depositors wants to withdraw more than Rs. 15000 a seven days notices is required before the withdrawal.

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3. Profit and Loss Sharing Deposits These types of accounts are one step towards the Islamisation of Banking system in the Pakistan. Under such types of accounts the bank allows no interest to the customers. The executive board of the bank declares profit or loss every year. PLS saving account having a running minimum credit balance of Rs. 100 would be eligible for sharing profit/loss of the bank. The rate of profit or loss on PLS saving accounts shall be determined by the bank at the close of each half year, in its sole discretion and the banks decisions shall be final and binding on the PLS account holder. 4. Fixed Deposits In the type of account a certain amount is deposited for a certain, period such as sixmonth, two years or longer. A fix deposit receipts is issued in the same of the depositor. The receipt is signed by the officer incharge and the bank manager. A notice is given to the depositor requesting the depositor to withdraw his money or to renew this deposit. The interest allowed on fixed varies with the period for which the deposits are made. 7. Foreign Currency Accounts Foreign currency account is opened by depositing foreign currency. In ABL you can open foreign currency account in: i. US DOLLAR ii. POUND STERLING

BOOKS RELATING TO CUSTOMERS
a) Pay-in-Slip When money is to be deposited in the bank the pay in slip is to be filled. The object of this book is to provide the customer with the bank’s acknowledgement for receipt of money to be credited his account. b) Cheque Book

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A cheques book contains a number of cheques, which is given to a customer upon written request and after marking the payment for the cheques book. It enables a customer to make withdrawal from his account or make payment to various parties by issue of cheques. c) Pass Book Passbook is a copy of the customer account as it appears in the books of the bank. ; The clerk in this book records balance. But now a day due to computerization the concept of passbook is not in practice.

GROUNDS FOR CLOSING THE CUSTOMER’S ACCOUNT
The banker may close the account of the customer due to following reasons: i. Notice by a Customer ii. Death of a Customer iii. Customer’s Insolvency iv. Customer’s Insanity v. By order of court vi. Unsatisfactory operation

ADVANCES DEPARTMENT
1. Introduction 2. Securities. 3. Types of advances

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INTRODUCTION The function of advances department is to lend money in the form of clean advances, against pr9omissory notes, as well as secured advances against tangible and marketable securities. The bankers prefer such securities that do not run the risk of general depreciation due to market fluctuations. Common Securities for the banker’s advances are as under:SECURITIES 1. Guarantees When an application for advance cannot offer any tangible security, the banker may rely on personal guarantees to protect himself against loss on advances or overdraft to the applicant. 2. Mortgage A mortgage is the transfer of an interest in specific immovable property for the purpose of security the payment of money advanced or to be advanced by way of loan, and existing or future debt, or the performance of an engagement which may rise to a pecuniary liability. The transfer is called a mortgagor, the transferee a mortgage. Hypothecation When property in the shape of goods is charged as security for a loan form the bank the ownership and possession is left with the borrower, the goods are said to be Hypothecated The essence of hypothecation is that neither the property in the goods not the possession of them are possession is left with the borrower, the goods are said to be Hypothecated the essence of hypothecation is that neither the property in the goods not the possession of them are possessed by the lender, but the security is granted by means of letter of hypothecation, which usually provides for a banker’s charge on the hypothecation goods.

4. Pledge In a pledge the ownership remains with pledge, but the pledge has the exclusive possession of property until the advance is repaid in full. While in case of the default the pledge has the power of sale after giving due notice. 5. Promissory Note

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Sometimes promissory note is also accepted as a security, "A promissory note is an instruments in writing containing an unconditional undertaking signed by the maker, to pay on demand or at a fixed or determinable future time a certain sum of money only, to or to the order of certain persons, or to the bearer or the instrument." A promissory note is incomplete until has been delivered to payee or the bearer. Moreover, the sum promised in a promissory note may be made by two or more makers who may be liable there on jointly and severally.

TYPES OF ADVANCES
The advances which are given by Habib Bank Limited are as under:1. DEMAND FINANCE (Ordinary Loan) Demand Finances are those advances which are allowed in lump sum for a fixed period and are repayable lump sum or gradually in installments. TYPES OF ADVANCES a. Demand Finance (Packing Credit) Scheme introduced by State Bank of Pakistan for exporter of carpet, surgical instruments, at zero percent rate of interest. While banks provides at concessional rate of interest. b. Loan ordinary (Demand Finance to Students) Qarz-e-Hasana Scheme Loans are allowed to the students, teachers without any interest or mark up with the recommendations of the MPA or MNA. c. Demand Finance (Staff) Loans are offered to the staff of the following four categories. i. House Building Loans against mortgage of property. ii. Loan for purchasing vehicles. iii. Loan equivalent to month’s salary. .

RUNNING FINANCE (Overdraft) Running finance (old name overdrafts) are advances, which are generally, given to meet temporary requirements of the customers. A good customer use the banks running finance limit as a mean of protecting his credit in the market and as a line of security defense to meet his commitments.

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TYPES OF RUNNING FINANCE I. Unsecured Under such type of overdraft the bank pay upon the personal security of the customer’s mentioned on the customer’s account. II. Secured Under this type of overdraft the bank allows his customer to withdraw more than his deposits after giving security against the amount overdrawn. The securities against which they given are: i. Share certificate, Saving certificate ii. Deposits iii. Mortgage of property iv. Guarantee of person 3. CASH FINANCES (Commercial Loans Inward) These types of loans are given against following: i. Against locally manufactured goods. ii. Cash finance against Rice and Paddy iii. Against pledge iv. Against commodities Besides advances against the above commodities parties for advances against other commodities like tobacco, oil, may approach bank. v. Against Trust Receipts To obtain adjustment of an overdue account or to facilitate the borrower to self the pledged good it is some times necessary to deliver a portion of the goods, against the trust receipt and promise from the borrower to deposit the sale proceeds with the bank.

SMALL LOANS Loan is allowed to contractors clearing and forwarding agents. 5. FINANCE AGAINST THE FOREIGN BILLS (FAFB) The advance facility is allowed both to local foreign bills and is classified as under:University Of Sargodha

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i. FAFB (Local) advance against Railway receipts and truck receipt, a company with bills of exchange and invoices, are given under this head. ii. FAFB (Foreign) advances against foreign bill, covering bills of exchange bills of lading airway bills of exchange bills of lading airways bills etc. 6. AGRICULTURE LOANS Loans to the farmers with holding up to 25 acres for meeting their short terms, medium and long terms Agricultural production requirements, such as: i. ii. iii. iv. Agricultural inputs Tube wells Live Stock Framing Land improvement

7. INDUSTRIAL LOANS Besides the short-term loans which play a part in working capital medium and long-term loans are also given to industrial sector for purchase of machinery and other capital nature goods.

ACCOUNTS DEPARTMENT
Usually Accounts are maintained in two ways: a. Journal System b. Vouchers System Journal system is adopted by some commercial industrial institutions. In journal system entries are reported in Journal Books and then posted to ledger. Voucher system is used for every transaction. Voucher has to be prepared either in cash or in transfer or in clearing, the Sheet upon which these vouchers are summarized transactions-wise and consolidated into a figure is called supplementary.

Types of Supplementary a. Debit Supplementary b. Credit Supplementary

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Debit supplementary is used for debit voucher and credit supplementary is used for credit voucher books and registered maintained by bank are as follows: 1. General ledger 2. Statement of daily affairs. 3. Cash book or Cash cum day book. 4. Transfer book 5. Income and expenditure ledger, etc. INCOME INCLUDES 1. Brokerage (A bank sells and buys share, stocks, debentures, other securities and receives payment for these services). 2. Discount 3. Service Charges 4. Rent (On building, Bank Lockers) 5. Commission EXPENDITURES INCLUDES 1. Salaries, allowances and provident fund 2. Rent, taxes, insurance, lighting etc. 3. Profit paid on deposits and borrowings 4. Postage, telegram and stamps 5. Stationary, printing and advertisement charges etc. 6. Auditor’s fee and legal charges. 7. Others

REMITTANCE DEPARTMENT
Remittance department performs following functions:

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i. Mail Transfer (MT) ii. Telegraphic transfer (TT) iii. Demand Drafts (DD) iv. Local Funds Transfer (LFT) MAIL TRANSFER (M.T) When a customer requests the bank to transfer his money from one branch of bank to another branch of the same bank or from one city to another city to the same bank or any other bank. Customer fills the form given by bank. If the customer has an account with that amount as mentioned in the application form then concerned officer will undertake the following procedure to make the mail transfer complete. i. Branch Mail Transfer form ii. Receiving Branch Register copy iii. Issuing Branch register copy iv. Beneficiary advice v. Advice to Customer In case where the customer is not account holder of the bank then the customer will have to deposit the amount which he wants to transfer under Mail. Then the above said procedure will be done. TELEGRAPHIC TRANSFER (T.T.) This type of transfer is simple. After filling the application form the concerning officer shall fill the telegraphic transfer form. Then it is sent to the required bank which on receiving it immediately makes the payment to the customer and after wards the voucher is sent to that bank by ordinary mail. DEMAND DRAFT (D.D.) Demand draft is just like cheques and issued when the customer wants to take cash with him personally. The idea behind it is to avoid the risk and burden of currency notes in huge quantity. Demand draft can easily be handled whatever amount it has and the money can easily be taken from the bank when it is presented. In fact, the bank persuades the customer to transfer money by drafts and avoid the risk of frauds involves in M.T and T.T Draft is only issued when the bank knows customer and bank has the confidence in him.

HBL PRODUCTS & SERVICES
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Retail Products and Services:
Typical Retail products and services of HBL are as follows:-

1) Credit Cards
• • Gold Card Green Card

Welcome to a world of convenience, flexibility and opportunity. The HBL Credit Card will add simplicity and excitement to your life. Accepted at over 24 million merchants worldwide, HBL Credit Card makes shopping fun and paying simple. Make the most out of your shopping experience with your very own HBL Credit Card.

Benefits
• • • • • • Convenience Security Affordability Cash Advance Balance Transfer Facility Internet shopping

2) HBL ATM
ATM can pay cash at odd hours within your withdrawal limit as long as there is balance in your account. You can get cash from any Habib Bank ATM regardless of the fact that your account is in a different branch or a different city. You can check your account balance and get a printed mini statement. It is an extremely convenient way of banking, totally oblivious of time and location. Money when you need it! The good thing about it is that it is a user-friendly machine. The usage of ATM in Pakistan is gaining ground perceptibly. The shared ATM network, which has obviously come to stay, is contributing to the usage factor due to unprecedented convenience of timeless banking. Habib Bank has a large ATM network and enjoys the privilege of being a founder-member of a fast expanding shared ATM network.

3) Debit Card:
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HBL Visa Debit Card allows you to pay for your purchases directly from your bank account. You don’t have to carry cash and your monthly statement provides you with a complete record of all your transactions so you can manage your expenses with ease.

Benefits
• • • • • • • • No Interest Ease & Security No Liability International Recognition& Acceptability Spending Limits Free Account Statement 24 hour Customer Service Global Customer Assistance Service

4) Habib Bank Flexi Loans
With the rising cost of living, it is becoming increasingly difficult to make expensive purchases or meet unexpected expenses. We can help you finance them with Habib Bank Flexi Loans. You may avail a personal loan of up to SIX TIMES of you net take-home salary subject to a maximum of Rs.300,000/- provided you work for an organization approved by HBL.

Benefits
• • • • • • • • Flexible tenure: 12, 24, or 36 months Low rates No processing fee Credit Life & Disability Insurance Repayment through easy and affordable monthly installments Credit Life & Disability Insurance Repayment through easy and affordable monthly installments You determine the need, we help you finance

4) Habib Bank Car Loan
HBL Car Loan helps you get your preferred car through a simple and hassle-free process, backed by superior service and support. Now you can drive a car you always wanted.

Benefits
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• • • • •

Choice of either a new local/imported car or a reconditioned imported car. Repayment options ranging up to 7 years. Up to 85% of financing for the car of your choice. Insurance at all times for complete peace of mind and security. Round the clock support available through HBL Phone Banking; you can place your requests and queries, track the status of your repayment/loan account and avail other value-added services through HBL Phone Banking.

Eligibility
Salaried Individuals

Self-Employed Business persons/ Professionals

Citizenship Age Minimum/Month Income

Pakistani 22-60 Years 20,000

Pakistani 22-65 Years 25,000

Documentation
Salaried Individual
• • • Copy of CNIC 2 recent passport size photographs Latest original salary slip and personal bank statement for last 3 months

Self Employed / Professional
• • • • Copy of CNIC • 2 recent passport size photographs • Bank statement for last 6 months and bank letter confirming details of account

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• Proof of business

5) Muhafiz Rupee Travelers Cheques
With the advantages of 100% free purchase and encashment, MUHAFIZ remains the foremost choice with travelers wishing to carry cash in a safe and convenient way. MUHAFIZ is equally suitable to both personal use and business transactions. Regardless of whether you have an account with HBL or not, you can be a MUHAFIZ customer and relish the benefits of Pakistan's leading Rupee Travelers Cheques, including:
• • • • • • •

Accessibility: Issuance from more than 700 branches across the country. Convenience: Encashment at more than 1400 branches. Choice: Available in denominations of Rs. 10,000, 25,000, 50,000 and 100,000. Guarantee: Prompt refund in case of loss or theft. Advantage: Convenience of transferability. Facility: Safety of special security printing. Freedom: Flexibility of no expiry date.

6) ACCOUNTS:
CURRENT ACCOUNT:
a)

Eligibility:a) All Pakistani’s Resident/Non-Resident, Individuals (Single-Jointly) Companies/Firms etc. can open and operate the Account. b) Any Foreign National Individuals (Single-Jointly) having valid Resident Pakistan VISA/Work Permit can open and operate the Account.

b) Features:• • • • • • Account can be OPENED with Minimum Balance Rs.1000/- with no maximum limit. CHECKING ACCOUNT No profit is paid. SERVICE CHARGES Rs.55/- if average balance is less than Rs.20,000/Statement of Account dispatched on quarterly basis or as requested. There is no restriction for withdrawals of amount and number of cheques.

PLS SAVING ACCOUNT:

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a) Eligibility:• • All Pakistani’s Resident/Non-Resident can open and operate the Account. Any Foreign National having valid Resident Pakistan VISA can open and operate the Account.

b) Conditions Deduction of Zakat – With-holding Tax as per rules of the Government.

Value Account:
a) Eligibility:• • All Pakistani’s Resident/Non-Resident can open and operate the Account. Any Foreign National having valid Resident Pakistan VISA can open and operate the Account.

Features:• • • 7% profit Minimum balance Rs. 10,000 Free ATM/Debit Card

Supervalu Account:
a) Eligibility:• • All Pakistani’s Resident/Non-Resident can open and operate the Account. Any Foreign National having valid Resident Pakistan VISA can open and operate the Account.

Features:7.25% profit Minimum balance Rs. 100,000

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Free ATM/Debit Card

7)-Tabeer (child education & marriage plan)
Tabeer is a plan that provides parents with a means to accumulate a fund over a period of time which can then be used to pay for a child’s education or marriage. Plans are available for both under and over 45 years of age.

Features:
Eligible age Minimum payment Benefit on accidental death 18 – 60 years Rs. 3,000 per month In addition to other benefits, Rs. 500,000 will be paid for the marriage of the nominated female child, given that female child is at least 18 years of age

Partial withdrawals Allowed Maturity benefits Two options available: 1. Policy can be cashed in total 2. Funds are paid back as per policyholder's designated time period

Future Plans of Originations:

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An Aggressive growth strategy is in place with the retail bank being the generator of stable low cost deposits. Recent developments include: • • • Branch refurbishment Upgrade in technology Launching of new and re-branded deposit products

The Demand for private sector credit has been relatively flat; we expect it to improve later in the years. There will be a focus on developing the synergy between the corporate and investment bank and a focus on developing the SME segment with its higher margin. Revenues from Bancassurance and other services are Likely to increase as the year progresses. Global Treasury has been reorganized and repositioned, this will augment earnings and enable the group to enhance its shares in finance area. The Bank launched its credit card. While there is tough competition in the credit card market, we believe that we will be able to position the bank to take on lead role in the next five years. The credit card business will take 2-3 years to achieve profitability. The consumer bank is expected to become major revenue generated. HBL has successfully implemented anti-money laundering software and KYC procedures throughout its network. The first phase of Branch refurbishment will see 170 Branches (Urban & Rural) renovated throughout Pakistan over 2008. Over the next five years new building projects will be undertaken in major cities. Human Resource challenges persist and the bank continues to invest in recruiting, retaining, and training high achievers and experienced professionals. The bank is in process of developing and implementing strategies for training staff at different levels within the Bank.

WORK DONE AT THE BRANCH
As every body knows that "Knowledge without practice is sterile "In order to give vent to this idea an Internship program of two months has been arranged in different esteemed University Of Sargodha

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organizations during BBA(Hons.). In this regard on 5th of July 2008, I was asked by my principal to go to Habib Bank to have an internship of two months there. So as per standing order of my Zonal Chief I was assigned to work under the supervision of AVP/Manager of HBL Branch Chowk Satellite Town Sargodha. On my first day of Internship, Manager handed me over the charge of Assistant to Accountant. As three departments namely Accounts, Cash and Billing, and Clearing were being managed by the Manager in this particular branch. I started my practical training by tockening the cheques for withdrawals and entering them into token book. This was the routine work that I had to daily and, at the time of closing exact position of cash in hand, Receipts and Payments was evaluated. The Manager and the Accountants duly signed this evaluation. Secondly I was advised by my Manager to be remained vigilant about the fake cheques giving some instructions for the scrupulous examination of cheques like signature verification from specimen. Right after two weeks, the date of balancing came. Here balancing means balancing of ledgers of Current Deposit and Saving Deposits. The balancing of Current Deposit Ledgers was done on weekly basis while Saving Deposits Ledgers were balanced on semi monthly basis. Then I collected bills of FESCO, PTCL and SNGPL during period of my internship. I also used to write scrolls, which are written to keep record of bills collected by the branch and one copy of them is sent to the concerned organization. After one month I came under the supervision of the Cashier who got me to know, how the books of cash are balanced at the closing of each day. I too learnt to prepare General Ledger which is called as the mother of all books used in the branch. It was really a tough and daunting task. I consumed lot of my time in scrolling the Utility bills of WAPDA, TELEPHONE, and SUIGAS, the collection from these bills were to be performed by me and after the proper vouchering of these bills, a copy of collections was sent to respective departments. After Six Weeks My Manager tells me about the transfer book which keeps the record of the transfer of funds between clients of bank.

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SWOT ANALYSIS OF HABIB BANK LIMITED
Habib Bank Ltd. has got a tremendous reputation in the market; as for years the Bank has been serving the banking requirements of its customers. Although due to the name of the Government being attached with the bank, people have a lot of confidence in it, but on the other hand they take Habib Bank as other Government institutions which don not perform their duties properly. This they do without realizing the fact that the Bank is a Limited Company with a management of its own. The fact can only be understood either by those customers who have been long served by the Bank or by those who are or have been actually the part of the working of the Bank. Habib Bank Ltd. enjoys a 40% market share as far as the domestic deposits are concerned, which is an important factor to measure the success of a Bank. This percentage is second only to National Bank of Pakistan. The Bank has got the largest number of branches in Pakistan and also has the highest number of employees. The most recent figures although not known due to the current restructuring. With all the good things in it, every business has always got some internal strengths and weaknesses pointing out which, it can create opportunities and avoid from threats.

SWOT ANALYSIS
Strength
(1) (2) 3) (4) (5) (6) NAME STRENTH (good will) WIDE RANGE OF NETWORKING INTERNATIONAL BANKING/COVERAG WIDE RANGE OF SERVICES ATM FACILITY BANK FOR ALL

Weakness:
(1) (2) (4) (5) (6) (7) LESS TRAINED STAFF ONLINE BANKING WIDE AREA TO HANDLE LIMITED PERSONAL LOAN ADVERTISING CAMPAIGNS LACK OF INFORMATION TECHNOLOGY University Of Sargodha

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(8)

OVERLOAD WORKING ENVIRONMENT

Opportunities
(1) COST REDUCTION 2) MASTER CARDS 3) IMPROVED PROMOTIONAL TECHNIQUES 4) COOPERATION WITH OTHER BANKS

Threats
1) DE - MOTIVED EMPLOYEES 2) LARGE NUMBER OF COMPETITOR 3) REDUCED AREA NETWORK/BANKING

RECOMMENDATIONS
As we seen from the previous analysis of the financial statements we have realized that that Habib Bank is performing very well since its inception. It is quite difficult to give suggestion

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Internship report on Habib Bank Ltd

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to improve the banking conditions Habib Bank Limited. As we know that nothing is perfect, there is always a room for improvement, so I have found during my internship can be made up taking into account the following suggestions. • HBL is in the process of providing the services of Automated Teller Machine. In order to complete with the other banks ATM services must be provided throughout the country as this service is becoming very popular in bank customers. • The bank is also in process of computerizing its records which is good sign but it is going on with small progress Computerization must be done on early basis. This will help in increasing efficiency of work don, customer’s satisfaction decreases the stationary cost and resultantly it will increase profits. • In Past Habib Bank Limited has always being suffered from bad Government policies. Government intervention should avoid completely. • Employees Training programme must be introduced on continuous basis so that Employees have understanding with the latest developments especially with the customers. • Bank should introduced incentive plans for employees on regular basis so that if employees may work whole heartedly for the welfare of their organization. While giving incentives qualification, work, experience, hard work and such other factors must be considered. • Mismanagement of resources must be avoided as much as possible as it decreases profit but also discourage hard worker and honest employees.

Fresh graduates must be recruited. As the combination of Experienced and fresh can produce better results and it will improve the efficiency of management.

Habib Bank is going towards mobile banking but the problem is that a common client has no idea of its usage due to lack of marketing. I think that a proper marketing plan must be launched for client’s awareness. University Of Sargodha

Internship report on Habib Bank Ltd

28

Banks different schemes must be conveyed to the targeted customers so that to have a reasonable share in market.

Bank should help the society by providing interest free loans to the Talented Students.

University Of Sargodha

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