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Evolution of Banking

The word 'Bank' is derived from the words Bancus or Banque or Bank. This history of banking is traced to as early as 2000 B.C. The priests in Greece used to keep money and valuables of the people in temples. These priests thus acted as financial agents. The origin of banking is also traced to early goldsmiths. They used to keep strong safes for storing the money and valuables of the people. The first stage in the development of modern banking, thus, was the accepting of deposits of cash from those people who had surplus of money. The goldsmiths used to issue receipts for the money deposited with them. These receipts began to pass from hand to hand as settlement of transactions because people had confidence in the integrity and solvency of goldsmiths.

The goldsmiths soon discovered that all the people who had deposited money with them do not come to withdraw their funds in cash. They found that only a few persons presented the receipts for withdrawing cash during a given period of time. They also found that most of the money deposited with them was lying idle. At the same time; they found that they were being constantly
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requested for loan on good security. They thought it profitable to lend at least some of the money deposited with them to the needy persons. This proved quite a profitable business for the_ goldsmiths. They instead of charging safe keeping charges from the depositors began to give them interest on the money deposited with them. This was the third stage in the development of banking.

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.

History of Banking In Pakistan
The interesting point which I observed during the span of mine internship was the historical background of Banking & Financial sector which is the one in which great improvement and growth is observed since the formation of Pakistan. For studying the growth of this sector we can divide it into three stages, which are as follows: a) b) c) Pre-Nationalization Era Nationalization Era Post Nationalization Era
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a)

Pre Nationalization period:

There were only two Muslim banks in Indo Pak before partition; they were .Habib Bank Ltd. (est. in 1941 at Bombay) & Australia Bank Ltd. (est. In 1944 at Lahore). All other banks, at that time, were either owned by Hindus or Foreigners. At the time of partition there were 631 bank branches in area which came under Pakistani control. But due to bloodshed and violence at large scale, mostly branches were closed and the disparity can be accessed from the fact that on July 1948 there were 195 branches with deposits of Rs.88 crore (880 million) only. Also a factor lagging in Pakistani industry was a central bank of its own, by that time Reserve Bank of India was acting as central bank for both countries and same currency notes were used in both territories. But Reserve Bank of India was biased and Set down Pakistan on many occasions such as the issue of funds transfer etc. In this period drastic steps were taken in government sector for the improvement of overall position. The private sector also responded to these changes and some very positive changes were observed. Some of the steps taken by the government in this regard were as under

1) 2) 3) 4) 5)

Inauguration of State Bank of Pakistan (SBP) on 1st July, 1948. Setting up of National Bank of Pakistan in November, 1949 to control the 'jute' export in East Pakistan and to act as agent of SBP. Larger powers were given to SBP through SBP Act (1956) for controlling purposes. Banking Companies Ordinance 1962 for protection and guidance to banks. Establishment of specialized banks, such as ADBP (1952); a) b) c) d) HBFC (Nov, 1952); P1CIC (Oct, 1957) IDBP (Aug. 1961); NDFC (Jan, 1973).

These were the steps, which built a strong banking sector in Pakistan. This is also obvious from the facts that by 1973 there were almost 10 foreign banks were working in Pakistan and all over deposit position was around Rs.2300 crore (23,000 million). A bird eye view of 5 top banks was as given below:
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BANK POSITION IN 1973
BANK HBL NBP UBL MCB ABL NO. OF BRANCHES 667 579 497 506 145 DEPOSITS (Rs in Millions) 6,160 5,660 5,670 1,640 570

B) Nationalization Period
On January 01, 1974 all Pakistani banks were nationalized through Nationalization Act 1974. Under this law all Pakistani banks became a public property. All small banks were merged in bigger banks to create 5 major Pakistani banks Pakistani banks. These banks were to control by Pakistan Banking Council. There are still controversies about this act of government as whether it contributed in success of failure of banks. However the major changes after nationalization were as follows: · · · · Working of banks was extended to under developed areas. Market expansion for credit and deposits. Decrease in service level of bank officers. Decrease in profitability as well.

However the effect of expansion was enormous and it can also be depicted with the help of table 2 which shows the deposit & branch positions of different nationalized banks.

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013 33.482 50. Along with this a permission to open banks in private sector was also granted. In Millions) 153. 1991.BANK POSITION IN 1992 Bank HBL NBP UBL MCB ABL TOTAL No. UBL taken up by UAE party in 2002.362 C) Post Nationalization Era In 1990 the government decided to denationalize all the nationalized institutes. The rules regarding establishment of new banks and for incoming foreign banks were also relaxed. 2003 HBL was taken by AKFED After these changes a large number of private and foreign banks started their operations in Pakistan and the present status can be seen from the following figure: Internship Report 5 .privatized banks are. For this purpose. Some was also suggested in banking sector. 1991 ABL taken up by its own employees in September. d) December 29.431 128. of Branches 1926 1448 1684 1288 750 7096 Deposits (Rs. amendments were made to Nationalization Act 1974 and two nationalized banks were privatized.679 87. a) b) c) MCB taken up by a private group in April. The.757 453.

Over the years. HBL has grown its branch network and become the largest private sector bank with over 1. it strives to embody its brand personality: honest. SME and Agriculture lending programmes and banking services are offered in urban and rural centers.Habib Bank Limited HBL was the first commercial bank to be established in Pakistan in 1947. With a presence in 25 countries. and inclusive. the number of its branches was only 12. HBL has the largest Corporate Banking portfolio in Pakistan with an active Investment Banking arm. approachable. As it continues to grow. Our first international branch was established in Colombo. It is the first Pakistani bank to raise Tier II Capital from external sources. 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 Internship Report 6 . 1942 at Bombay. Kenya and Kyrgyztan and representative offices in Iran and China. UAE. It was established with a paid up capital of Rs. both locally and abroad. HBL is also the largest domestic multinational. At an early stage. The Bank is expanding its presence in principal international markets including the UK. South and Central Asia. affiliates in Nepal. Africa and the Far East. In the UK and GCC. Key areas of operations encompass product offerings and services in Retail Banking. With a domestic market share of over 40%. HBL established operations in Pakistan in 1947 and moved its head office to Karachi. HBL is currently rated AA+ (Long term) and A1+ (Short term)*. HBL has always been a bank and a brand for the masses.450 branches across the country and a customer base exceeding five million relationships. with a history that is inextricably linked with the history of Pakistan itself. Nigeria. subsidiaries in Hong Kong and the UK. It was the first Muslim Bank of the sub-continent. History of Habib Bank Habib Bank Limited was established by Mr. 2.5 million. Sri Lanka in 1951 and Habib Bank Plaza was built in 1972 to commemorate the bank’s 25th Anniversary. HBL focuses on trade finance and remittances for the South Asian Diaspora in addition to basic banking facilities. Ismail Habib (Late) on August 25.

Seychelles and Maldives and the Netherlands. Values Our values are the fundamental principles that define our culture and are brought to life in our attitude and behaviors. management control was handed over to AKFED. On December 29. It is these values that make us unique and unmistakable. Vision.industries. The Board of Directors was reconstituted to have four AKFED nominees. against an investment of PKR 22. On February 26. giving our customers an abundance of choice. Our values are defined below: Excellence This is at the core of everything we do. Mission and Values Vision Enabling people to advance with confidence and success.can we hope to be successful and grow. our products and premises . 2003 Pakistan's Privatization Commission announced that the Government of Pakistan had formally granted the Aga Khan Fund for Economic Development (AKFED) rights to 51% of the shareholding in HBL. including the Chairman and the President/CEO and three Government of Pakistan nominees. Belgium.409 billion (USD 389 million). Oman. Singapore. 2004. traders and farmers. International operations were expanded to include the USA. Mission To make our customers prosper. The markets in which we operate are becoming increasingly competitive. our staff excel and create value for shareholders. Only through being the very best – in terms of the service we offer. Integrity Internship Report 7 .

Progressiveness We believe in the advancement of society through the adoption of enlightened working practices. HBL has forged strategic alliances with international banks for expanding its network further. Meritocracy We believe in giving opportunities and advantages to our employees on the basis of their ability. Customer Focus We understand fully the needs of our customers and adapt our products and services to meet these. Habib bank is an internationally recognized name in banking services and products. We believe in rewarding achievement and in providing first-class career opportunities for all.and society in general – expect us to possess and steadfastly adhere to high moral principles and professional standards. HBL is the largest private bank in Pakistan now and people trust is very high. auto-teller machines and evening banking. 8 Internship Report . During this process more than 1. HBL has the ability to bring innovative products and services like personalized service. electronic funds Transfer. sophisticated financial products such as electronic banking. both locally and internationally. The Bank’s Rupee Traveler Cheques have been market leaders for the past six years. We always strive to put the satisfaction of our customers first. Excellent branches appearance gives an edge to HBL over other banks. It has the largest branch network among private banks of Pakistan. HBL’s car to car financing scheme is unique in auto loan segment. Our customers .We are the leading bank in Pakistan and our success depends upon trust. HBL enjoys the following strengths: · · · · · · · · · · HABIB BANK is a well established bank enjoying long history of over 65 years of experience and profitable operation. HBL has been very effective in controlling costs as it successfully restructured itself after its privatization. SWOT Analysis Strengths Strength can be defined as an area where a company is best at doing something or a feature that puts the company at an advantage in comparison to its competitors. innovative new products and processes and a spirit of enterprise. The branches are well furnished even in less developed areas where other banks’ branches give a poor view.600 employees were relieved under a golden handshake scheme and 110 branches were closed.

They take the all routine activities as a boring job. Most of the employees lack managerial training as they are not properly educated. The symptoms are new products. yet the fact remains that it is not market leader as NBP. market share. Due to seniority. HBL can avail the following opportunities. they have moved up on the hierarchy line to Grade-I. new players. easiness and cheapness have become the catchwords for the competitiveness and usefulness of all the business operations. II or III positions having hardly bachelor degrees.Weaknesses A weakness is defined as an area in an organization where the organization is not as good at doing something as its competitors or a thing which an organization lacks thus putting the organization at disadvantage in comparison to its competitors. three factors. quickness. This transformation is taking place across all sectors of the banking industry. new channels etc. Its total assets are always less than NBP total assets. Only those banks that use their technology resources effectively have the opportunity to secure real competitive advantage in this fast-changing industry through real product or service differentiation. Now as it is a privatize bank that is why GOVERNAMENT support to HBL decreased as it was in past · · · Opportunities An opportunity can be defined as a change in external environment which if properly exploited with the organizational strengths will result in enhanced sales. HBL has the following weaknesses. Though HBL is second largest bank in Pakistan. Like centralization of cheque book issuing process. Internship Report 9 . Particularly it is commonplace today to say that banking is undergoing a radical transformation. to think strategically about IT investments. · · · Lack of communication between bank and customers about terms and condition of products and services. Mission of HBL is not well defined. Employees at branch level are not properly motivated to work by heart. That is why Habib bank urgently needs to improve their ability. Based on the above definition. Using its strengths. or income. This type of senior staff cannot apply the modern and innovative techniques of management in decision making. Opportunities require explanation therefore I have used headings instead of arrows E-Banking Generally speaking.

e. markets. and can well be linked to the main computer. Present rates are 4% above KIBOR i. No bank in Pakistan is offering this service currently. AUTOMATIC TELLER MACHINE (ATM) This system is known as "Any Time Money" because it allows customers who have an ATM card to withdraw money at any time from the bank without interacting with human teller. The Online banking is fast gaining ground in Pakistan. to receive cash. HBL differentiate and increase its deposit by offering attractive rate of return on deposits. It can also be used to deposit cheques and cash into the accounts. railway stations etc. They allow the customers to transfer money to and from accounts to view account information. This facility has still not been started for customers in Pakistan. The customer clicks into the Website and gets the history of the bank.High mark up rates Of late markup rates have increased considerably. Rates of Return / Profits on Deposits are so low and unattractive that very limited options are available to the depositors. Then he can demand the necessary application form through the net. 16% appx. High markup rate has decreased the interest of people in loaning from from banks. So Habib bank should focus heavily on providing online banking faculties to its customers. Internship Report 10 . Rate of return The range and choice of products available & offered by the commercial banks is limited. Since the ATM machine can be installed anywhere like petrol bunks. It allows customers to transact with the bank 24 hours a day and 365 days a year. Currently it is doing the same. Some software companies are also offering network-banking facilities. CORPORATE BANKING TERMINAL (CBT) Large corporate customers can log into the bank's database and have access to their accounts/transactions from their business houses. Habib bank can increase its income by offering loan at lower interest rate than other banks. They do not match the current rate of inflation. ONLINE BANKING It is doing banking transactions through our home P.C. He fills in the form and passes it on to the bank. So Habib can focus on that. The banks that do business through net have Websites. So an opportunity exists for Habib bank to differentiate.

7. UBL. Pakistan is facing economic and political instability which is a big threat. MCB etc The Rupee Travelers Cheque (RTC) sales volumes may be affected on account of regulatory restriction imposed by SBP on issuance of large value denominations. banking departments of habib bank Various departments are working in all the branches of Habib bank to facilitate the customers. In the context of HBL’s external environment. 4. I.T department. which has affected HBL. Account opening department. Cash department. Foreign banks are flourishing in field of consumer financing. or income. 1. 2. Foreign exchange department.Threats Threat can be defined as a change in external environment which if not met with proper strategies will result in loss of revenues. For the last of 2 to 3 years. Internship Report 11 . Alfalah. Operations of HBL A. Credit department. Lockers department. Afghan war and Iraq war has a deep effect on the economy of Pakistan. market share. the following potential threats exist: · · · · · · Other private commercial bank with sound profitability is also a threat to HBL e. Bill clearing department. 5. Following are the banking departments functioning in HBL Jinnah Chowk branch Sahiwal.g. 3. 6. Increased regulations from State Bank of Pakistan may affect its business.

Documents require for opening an account: · · · · · Copy of CNIC Service certificate or student card. There are certain formalities which are to be observed for opening of an account with a Bank. During the process customer id and account number is generated. Posting the account on the system: After that officer has to post the new account on computer system for further processing. New account remains active for one day after that it is blocked by the head office until CNIC of the customer is verified from NADRA. These formalities in brief are as under: FORMAL APPLICATION: The customer is to fill "Account Opening Form. It is a formal request by a customer to the bank to allow him to have and operate the account. Now a day in Habib bank cheque book issuing process is centralized that take 06 days to complete.Accounts opening department Basic function of the accounts department is to open new account and facilitate the customer for the account opening purpose. he agrees to open the account. SECRECY: Internship Report 12 . Utility bill Provisional receipt KYC (Know Your Customer) SPECIMEN SIGNATURE: When the Banker is satisfied about the integrity of the customer. The Banker obtains the specimen signatures of the customer on the signature book or on card. Cheque book issuing: After the CNIC verification account opening officer has to issue a cheque book to customer so that he can be able to make withdrawal from his account.

Notice by a Customer Internship Report 13 . partnerships. Cheque Book A chequebook contains a number of cheques. JOIN ACCOUNT: A joint account occurs when two or more than two customers have one account. It enables a customer to make withdrawal from his account or make payment to various parties by issue of cheques. trusts and non-profit organizations. Following documents are required. The object of this book is to provide the customer with the bank’s acknowledgement for receipt of money to be credited his account. which is given to a customer upon written request and after marking the payment for the chequebook. Types of accounts: Individual accounts: Individual accounts are the most common personal investment accounts. BOOKS RELATING TO CUSTOMERS: Pay-in-Slip When money is to be deposited in the bank the pay in slip is to be filled. companies. Business accounts: Business accounts can be opened by institutions. GROUNDS FOR CLOSING THE CUSTOMER’S ACCOUNT: The banker may close the account of the customer due to following reasons: i. Opened by single person.The secrecy of depositor’s account is the. Responsibility of every official engaged in the Bank service. The parties to a joint account are considered in law as they are one person.

Puts the stamp of the “cash Received” on the payment slip. Since the banker customer relationship comes to end. The first portion is for bank record while other one is given to the customer. He counts the cash and makes the detail of the notes at the back of the pay slip.ii. IV) ORDER OF COURT A court of law may serve a banker with an order in garnish proceeding in execution of a decree prohibiting him from honoring a customer’s cheques. iii. II) DEATH OF CUSTOMER On death of his customer. Iv. Account number and amount. However. it can act only in accordance with provisions mentioned in the letter of probate issued by a competent courts. Then he credits the entries in the computer by serial No. The cashier receives the pay slip and cash. the bankers treat their customers as it unless a fairly inclusive evidence of the customer’s insanity is available to them. Very causations and competent personnel are needed for the Job. he brings a Cheque along with him. III) CUSTOMER’S INSANITY If the customer becomes insane or mental it terminates the banker’s authority to act as his customer’s agent. Death of a Customer Customer’s Insanity By order of court I) NOTICE BY CUSTOMER The banker closes the account of the customer on the application of the customer for closing his account. in such as situation. In this case the following steps are taken. the bank must stop payment on cheques drawn on him by the deceased customer because the death revokes his authority to pay such cheque. Cash payments procedure: When a customer comes to withdraw a certain amount from his account. Internship Report 14 . account type. Cash deposit procedure: The customer fills the pay slip. The heirs or the executors of the deceased customer are not authorized to operate on the account. Cash department Cash Department is very sensitive and risky part of the bank. Then he compares the detail with amount written on slip and signs the pay Slip. it is usually considered that the banker’s authority to pay his customer’s cheques is revoked by notice of insanity. HBL has really such a diligent staff with appreciable competencies and will to do work. Main function of cash department is to deal with cash payment and cash receipts.

He gives the cash to bearer and the respected account is debited. Etc. the banker may rely on personal guarantees to protect himself against loss on advances or overdraft to the applicant. Guarantees When an application for advance cannot offer any tangible security. against promissory notes. and existing or future debt. the posting is done in the computer and the cheque is stamped posted with the serial number and date. 2. the goods are said to be Hypothecated The Internship Report 15 . He takes two signatures at the back of the cheque from the bearer. Balancing cash at the end and transferring excess cash: At the day end cash department is responsible for balancing the cash. CREDIT DEPARTMENT 1. The bankers prefer such securities that do not run the risk of general depreciation due to market fluctuations. 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. 2. Other instructions are also received e. A predated cheque cannot be cashed. frozen.The cashier receives the cheque and checks it whether it is post dated or predated.g. Common Securities for the banker’s advances are as under:SECURITIES 1. Online fund transfer: Another function of the cash department is of online transfer of funds. The computer checks out whether there is balance in the account or not. Types of credits INTRODUCTION The function of credit department is to lend money in the form of clean advances. as well as secured advances against tangible and marketable securities. The transfer is called a mortgagor. Customer has give filled remittances form with cash or without cash (from account transfer) to the cashier in cash department who will then credits the beneficiary account. blocked. Jinnah Chowk branch’s limit for cash is 40 million which it can keep within the branch over the night excess cash is transferred to NBP. 3. He gives the cheque for posting at the computer. Physical cash should be balanced with the amount in the computer. 3. Introduction Securities. 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. the transferee a mortgage. or the performance of an engagement which may rise to a pecuniary liability. Cheque can be cashed within six months.

While in case of the default the pledge has the power of sale after giving due notice. 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. b. 5.essence of hypothecation is that neither the property in the goods not the possession of them are possession is left with the borrower. but the security is granted by means of letter of hypothecation. teachers without any interest or mark up with the recommendations of the MPA or MNA. Promissory Note Sometimes promissory note is also accepted as a security. TYPES OF ADVANCES The advances which are given by Habib Bank Limited are as under:1. but the pledge has the exclusive possession of property until the advance is repaid in full. surgical instruments. Loan ordinary (Demand Finance to Students) Qarz-e-Hasana Scheme Loans are allowed to the students. "A promissory note is an instruments in writing containing an unconditional undertaking signed by the maker. which usually provides for a banker’s charge on the hypothecation goods. House Building Loans against mortgage of property. to pay on demand or at a fixed or determinable future time a certain sum of money only. Internship Report . Pledge In a pledge the ownership remains with pledge. at zero percent rate of interest. 16 Loans are offered to the staff of the following three categories." A promissory note is incomplete until has been delivered to payee or the bearer. TYPES OF ADVANCES a. While banks provides at concessional rate of interest. the sum promised in a promissory note may be made by two or more makers who may be liable there on jointly and severally. Demand Finance (Staff) i. ii. 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. c. Demand Finance (Packing Credit) Scheme introduced by State Bank of Pakistan for exporter of carpet. Loan for purchasing vehicles. Moreover. or to the bearer or the instrument. 4. to or to the order of certain persons.

saving certificate Deposits Mortgage of property Guarantee of person SMALL LOANS Loan is allowed to contractors clearing and forwarding agents. Agricultural inputs Tube wells Live Stock Framing 17 Internship Report . ii. 2. TYPES OF RUNNING FINANCE I. 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. ii. Unsecured Under such type of overdraft the bank pay upon the personal security of the customer’s mentioned on the customer’s account. a company with bills of exchange and invoices. 3. Loan equivalent to month’s salary. covering bills of exchange bills of lading airway bills of exchange bills of lading airways bills etc. Secured Under this type of overdraft the bank allows his customer to withdraw more than his deposits after giving security against the amount overdrawn. iii.iii. FINANCE AGAINST THE FOREIGN BILLS (FAFB) The advance facility is allowed both to local foreign bills and is classified as under:i. Share certificate. such as: i. II. ii. are given under this head. 4. The securities against which they given are: i. FAFB (Foreign) advances against foreign bill. iv. RUNNING FINANCE (Overdraft) Running finance (old name overdrafts) are advances. FAFB (Local) advance against Railway receipts and truck receipt. which are generally. AGRICULTURE LOANS Loans to the farmers with holding up to 25 acres for meeting their short terms. given to meet temporary requirements of the customers. medium and long terms Agricultural production requirements. iii.

T. A large part of this work is carried out through the N. NIFT. drawn up to other banks for a customer.iv.. branches which are not represented at the local clearing area. the customer desire that one of the staff member fill in a slip for him. Bills clearing department INTRODUCTION Every bank acts in two way i.e. 5. NIFT is proactively involved in the modernization of payment systems in Pakistan.I. etc. One portion of the perforated pay in slip is handed over to the depositor and the portion becomes the regular portion of a credit voucher Internship Report 18 . Paying Bank Collecting Bank Here in theory no legal obligation on a banker to collect cheques. 6. he fills a pay in slip and hands it over the counter along with the instruments he wants to deposit with bank. 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.National Institutional Facilitation Technologies (Pvt. i. however. It is. To arrange the payment of cheque drawn on the branch and given for collection to any other branch of Habib Bank of Pakistan or any other members. ii. 4. an important function of crossed cheques. As far as possible. PROCEDURE OF DEPOSITING CHEQUES IN CLEARING DEPARTMENT Whenever a customer wants to deposit cheque. sub-members of the local clearing house sent for collection by those Habib Bank Limited. he should be obliged promptly. Land improvement 5. FUNCTION OF CLEARING DEPARTMENT The following are the main functions of clearing department.) Limited: NIFT is a joint venture between a consortium of six major banks and private sector.F. To collect amounts of cheques drawn on members. To accept transfer deliveries and clearing cheques from the customer of the branch and to arrange for their collection. It is responsible for the establishment and management of automated clearinghouse facilities in Pakistan. or sub-members of the local clearing area.

Transfer Delivery Cheques Transfer Deliver cheques are those cheques. Transfer Cheques Transfer cheques are those cheques. rate and originating country etc. e-g importer. exporter. Forex Department International trade is growing and with the development of international trade it has become more imperative. The currency of one country is exchanged for that of another. The procedure of opening of an L/C is as follow · The first thing is the Performa invoice. For countries to devote more and more attention to the complicated mechanism of Foreign Exchange. that a country should conserve its foreign exchange resources. It is more important in case of developing countries. The mechanism or system by which international obligations or indebtedness are fulfilled. which is. and advisory bank.TYPES OF CHEQUES COLLECTED BY CLEARING DEPARTMENT a. iii. Descriptions of goods. It covers following three senses: i. situated in the same city. LC involves banking channels in foreign trade to mitigate risk. Internship Report 19 . c. It is need of time. MEANING OF FOREIGN EXCHANGE The foreign exchange term refers to the principles that determine the rate of exchange. b. what type of goods you are needed and what are the quality. The principles on which the people of world settle their debts to one another. These clearing instruments are handed over to NIFT after posting necessary stamps and checking them for any errors. sends by the exporter to the importer and includes the information like. The Performa invoice is a document (say a clip). Letter of Credit: It is a negotiable instrument through which the bank of the exporter deals with bank of the importer through the guarantee of a bank. Clearing Cheques Clearing cheques are those cheques in which the payee (Person who deposit cheques for collection) and the drawer of a cheque maintain the account with different banks. ii. exporter bank. Then further process of clearing is carried on the behalf of NIFT. which are collected and paid by two different branches of a bank. There are different parties involved in the L/C. importer bank. which are collected and paid by the same branch of bank.

60. Terms 6. the bank asks him to accept that he will pay within 30. 90. Sight On seeing the documents the importer has to pay. Rate 3. 120. At Sight and Negotiation: It means that exporter will submit his documents with the bank and immediately asks for payment. Necessary Documents required for L/C: · NTN · Tax Authority registration certificate · Chamber of Association’s trade certificate · Type of Business · NIC · Margin · Registration No. Payment Mode I. Fill the import form of the govt. What type of goods you are needed and what are the quality. Commercial Invoice Internship Report 20 . Because the importer is not allowed to import that goods which are prohibited by the Govt. which is the proof of this that there is no objection on the goods. II. Acceptance: On showing the documents to the importer.· · · · Before to open a L/C the bank also consider that the goods which the importer is importing is allowed by govt. Port of Loading and destination 9. Not Allowed) 8. Contents of IB 8 1. Importer and Exporter’s particulars 4. Documents Required: · · Certificate of Origin. Amount 5. which the customer is importing. 10. 180 etc days. · Application for L/C On providing these documents the importer will be given the L/C form named as IB-8. Transshipment (Allowed. of Pakistan or not. Request for LC 2. III. Partial Shipment (Allowed. rate and originating country etc. of Pakistan. not allowed) 7. The importer is asked to show the membership certificate of any chamber of commerce and industry affiliated with the Pakistan federation of chamber of commerce and industry. of Pakistan.

2) Open A/C: Importer makes payment after receiving the goods. Charges: For L/C following charges are applicable.· Bill of Lading / Air way bill. · Commission · Postage · L/C Advising commission · L/C amendment Commission · L/C confirmation Commission · L/C Negotiation Commission Payment Mode: In foreign trade payment modes are 1) Advance Payment: Importer makes payment before delivery of goods. Cheque book is issued within 15 minute of receiving request from customers after making necessary register entries and posting stamps on it. Issuing foreign exchange accounts cheques books Another function of foreign exchange department in Jinnah Chowk branch is to issue foreign exchange accounts cheques books to customers on request. This process is not yet centralized. Products and Services of Habib Bank Limited Retail Banking For Individual Customers Deposit Accounts Internship Report 21 .

2. HBL is currently offering three types of accounts in current account category. Their detail and name is as under. 1. Their detail and name is as under. 4. 1.000 Unlimited transactions Non-profit bearing HBL DebitCard and Inter Branch Transaction System (IBTS) facilities Funds transfer to any bank through HBL PhoneBanking Basic Banking Account (BBA) · · · · · Can be opened with only Rs. Basic Banking Account (BBA) HBL BusinessValueAccount · · · · · · · Unique transactional account for Businessmen Up to 5.000 No minimum balance requirement Upto 2 withdrawal and 2 deposit transactions free every month Unlimited withdrawals through HBL DebitCard Non-profit bearing Savings accounts Avail the flexibility of making transactions while earning profit on daily/monthly basis. 20. 5. Current Account 3. HBL Value Account PLS-Savings Account Remittance Munafa Plus Savings Account Daily Munafa Account Daily Progressive Account Internship Report 22 . 500.000 HBL DebitCard and Inter Branch Transaction System (IBTS) facilities Up to 10 Bankers Cheques free (at minimum balance of Rs.000) Funds transfer to any bank through HBL PhoneBanking Current Account · · · · · Minimum balance of Rs. paid every quarter Minimum balance of Rs.Current Accounts Make unlimited transactions while maintaining a low minimum balance every month. 5. 3. HBL BusinessValueAccount 2. 1. HBL is currently offering five types of accounts in savings account category.35%* profit per annum Profit calculated daily.

20.57% profit per annum* Inter Branch Transaction System (IBTS) facility Funds transfer to any bank through HBL PhoneBanking Minimum balance of Rs. 20.19%* profit per annum Profit calculated monthly. 20. paid every month Up to 11. 10.000 Unlimited transactions Remittance Munafa Plus Savings Account · · · · Special account for receiving foreign remittances 5. paid every quarter Deposit ranges from Rs.06% profit per annum* Profit paid bi-annually HBL DebitCard and Inter Branch Transaction System (IBTS) facilities Funds transfer to any bank through HBL PhoneBanking Minimum balance of Rs.000 to Rs.000.000 Two withdrawals free every month PLS-Savings Account · · · · · · 5.HBL Value Account · · · · 7.000 Daily Progressive Account · · · · · · Unique transactional account for Institutions Profit calculated daily.000 Internship Report 23 .84% profit per annum* HBL DebitCard and Inter Branch Transaction System (IBTS) facilities Funds transfer to any bank through HBL PhoneBanking Minimum balance of Rs. 1.12%* profit per annum Profit paid every month Minimum balance of Rs. 20. paid every month Up to 8.000 Daily Munafa Account · · · · · Profit calculated daily.

2 month.00%* 1 YEARS 11. 6 month and 12 Month in USD.50%* 6MONTHS 8. with rates depending on choice of currency and term Profit paid on maturity only. Internship Report 24 . Their detail is as under.000 Interest is payable on a quarterly basis HYFFD (High Yield Foreign Currency Fixed Deposit) · · · Available in 1 month.00%* 10 YEARS 17. minimum balance in USD. 25. EUR (Euros) and GBP (UK pound) Tiered product. USD (US dollar). Their detail and name is as under. HBL is currently offering one type of account in terms account category.00%* Foreign Currency Accounts HBL offers Foreign Currency Accounts in multiple currencies as savings and term accounts. with rates depending on choice of currency To earn profit.000 · Withdrawal at end of fixed term Tenure Profit at maturity 3 MONTHS 7. HBL Advantage Account HBL Advantage Account · Multiple options for tenure and profit payout · Loan facility up to 90% of investment · Minimum investment of Rs. EUR and GBP is 1.Terms Accounts Invest your savings in HBL term deposits for a fixed duration and earn profit while keeping your savings secure. No interim interest is payable. 1. EUR and GBP Tiered product. 3 month.00%* 3 YEARS 13.00&* 5 YEARS 14. FC-SB · · · · Savings Account offered in 3 currencies.

Insurance at all times for complete peace of mind and security. Internship Report 25 .12. track the status of your repayment/loan account and avail other value-added services through HBL PhoneBanking. Round the clock support available through HBL PhoneBanking. backed by superior service and support.09 to 31. Further detail of terms and conditions about profit and rates is given in annex “B”. Repayment options ranging Upto 7 years.*NOTE: All the rate and terms and condition are revised by HBL after every six months periods.07. These rates are only applicable for period 01. you can place your requests and queries. Now customer can drive a car he always wanted.09. new local/imported and reconditioned imported car. HBL car loan HBL Car Loan helps customers to get their preferred car through a simple and hassle-free process. Features · · · · · Choice of used. Upto 85% of financing for the car of your choice.

along with articles and Memorandum of Association Copy of last paid utility bill (residence) Bank Statement for the last 1 year Internship Report 26 . Documentation Salaried Individuals · · · · · · · Complete Application Form Salary Certificate / Most recent Salary Slip Bank Statement for past one year Two Copies of NIC Employment Certificate with date of joining Two passport size photographs Copy of the last paid utility bill (residence) Self-Employed Business persons/Professionals · · · · · · · Complete Application Form Two Copies of NIC Two passport size photographs Letter of proprietorship / Registered Partnership Deed Certified latest Form A and Form 29.Eligibility Criteria How to apply · Just visit any HBL branch or Habib Bank Auto Finance Centre for details and application. · Sign the necessary documents on approval of the application · Payment is released within 24 hours of the submission of post-dated cheques and initial payment after approval of the request. · Submit complete set of application without any charges to the branch or the Auto Center. where applicable.

Flexibility HBL CarToCar offers customers several choices at the end of the lease term: • Upgrade . The car’s residual value (forecasted for the end of the specific lease term) is agreed with him at the start of the lease term. Hence. Features Pay only for what you use When customer lease a car under HBL CarToCar. the monthly installment may even be 40% to 50% less than that of conventional financing. Upgrade of lifestyle HBL gives customer the guarantee that if he wishes to return the car to HBL at the end of the lease term. HBL CarToCar offers very low installments as compared to any conventional financing. It makes the car of customer choice affordable and practical with a buy back guarantee.Return the car to HBL and end the lease • Buy .Enjoy the gain from selling off the car at a higher price in the market than what you ay HBL as the residual value Internship Report 27 . Just make a one-time settlement of the car’s residual value to HBL or pay the same in easy installments over a specified extended period of time • Sell . Instead. HBL will directly settle this outstanding liability for customer under the buy back guarantee. customer only has to pay the difference between the car price and the preagreed residual value to the bank. As a result. he will not have to pay off the car’s residual value.Keep the same car. HBL CarToCar offers matchless features and unique options at the end of the lease.Simply return the car to HBL and drive a new one home • Walk away . he only pay for that part of the car’s value that he use during the lease term. Therefore. This amount is deducted from the car price thus lowering the finance amount. Affordability With HBL CarToCar. This finance amount is based only on a part of the car’s value and not the full value of the car.HBL car to car HBL CarToCar is a revolutionary car financing offer. he can upgrade to a new car as frequently as two years without any complication and hassle. Now customer can drive a new car at the end of every two years.

where applicable.Eligibility Criteria Documentation Salaried Individuals · · · · · · · Complete Application Form Salary Certificate / Most recent Salary Slip Bank Statement for past one year Two Copies of NIC Employment Certificate with date of joining Two passport size photographs Copy of the last paid utility bill (residence) Self-Employed Business persons/Professionals · · · · · · · Complete Application Form Two Copies of NIC Two passport size photographs Letter of proprietorship / Registered Partnership Deed Certified latest Form A and Form 29. along with articles and Memorandum of Association Copy of last paid utility bill (residence) Bank Statement for the last 1 year Internship Report 28 .

Internship Report 29 . So that a customer can make the most of his shopping experience. HBL Credit Card makes shopping fun and paying simple.HBL Credit Card By the help of HBL credit card customer enters into the world of convenience and flexibility. Accepted at over 29 million merchants worldwide.

000. Balance transfer facility Card holder can pay off balances he owes to other banks through his HBL Credit Card at a lower service charge. Pay as much as customer wants A customer can pay the entire or as little as 5% of the outstanding balance in his statement. pay later Buy what customer want. when he want and pay for it later. he should call HBL PhoneBanking to have his card blocked immediately. He can also go to any 1Link ATM in Pakistan and more than 1. Internship Report 30 .000 ATMs worldwide displaying the Visa/Plus logo. A credit card statement will be sent to him every month with details of all his purchases. The unpaid amount will be transferred to his next month’s statement along with applicable services charges. Customer should pay at least 3 days in advance if he makes your payment by cheques to allow enough time for clearance. Withdraw cash up to the available cash advance limit on his HBL Credit Card for a charge applicable from the withdrawal date.Benefits Buy now. He will have 21 credit free days to make the payment from the statement date. Cash advance Customer can go to any specified HBL branch and withdraw cash at the counter. Security Card holder cannot lose cash if he doesn’t carry it! In the event that his card gets stolen/lost.

No matter where card holder is.000 merchants in Pakistan.000. including over 10. Free Account Statement HBL cardholders receive a free monthly account statement for their Debit Card and ATM transactions to help them keep track of their spending. 100. Features No Interest HBL Visa Debit Card is the perfect way of paying for purchases as it gives access to the exact amount of money a customer needed. As an ATM card it is accepted at more than 1. (These figures are subject to the balance available in account). A single swipe automatically debits the exact purchase amount from his personal HBL account. There is no interest or credit on payments because he spends from the money available in his personal HBL Account. HBL is always with him. Ease & Security HBL Visa Debit Card offers ease and convenience because card holder doesn’t have to visit an ATM to withdraw cash. Paying with the HBL Debit card is safe because it eliminates the need to carry cash.000 1-Link & M-Net ATMs in Pakistan and 864. International Recognition & Acceptability HBL Visa Debit Card is accepted at over 20 million Visa merchants worldwide. with the HBL Visa Debit Card. as and when he needs it.Hbl debit card HBL Visa Debit Card allows a card holder to pay for his purchases directly from his bank account. Spending Limits The daily spending limit at shops and outlets on HBL Visa Debit Card is Rs. Internship Report 31 . He doesn’t have to carry cash and his monthly statement provides him with a complete record of all his transactions so he can manage his expenses with ease.000 Visa ATMs worldwide.

provided he work for an organization approved by HBL. Customer can change his TPIN anytime he like. His query will be resolved in a single telephone call from anywhere and at anytime. card holders are protected against fraudulent transactions made on their card after they report the incident. 24. Features · · · · · · · · · · Flexible tenure: 12. Customer may avail a personal loan of up to SIX TIMES of his net take-home salary subject to a maximum of Rs. HBL is helping customer finance them with Habib Bank personal Loans (old name flexi loan). it is becoming increasingly difficult to make expensive purchases or meet unexpected expenses.48 or 60 months No processing fee Repayment through easy and affordable monthly installments from salary. 12000 No salary limit for existing customers.No Liability In case of a lost or stolen card.000/.300. we help you finance Option of add up replacement for existing customer. 23% or 21% rate for existing users instead of 25% HBL phone banking Now the bank is just call away. HBL personal Loans With the rising cost of living. 36. Internship Report 32 . Credit Life & Disability Insurance Repayment through easy and affordable monthly installments You determine the need. Customer can now call HBL PhoneBanking and save a trip to the branch. Minimum salary Rs. self-service banking through IVR and additional services through HBL’s PhoneBanking Officers. T-PIN Generation Customer’s TPIN (Telephone Personal Identification Number) is generated the first time he calls and he can use it as your password for verification purposes.

HBL PhoneBanking services for Deposit Account customers Customers can use the Interactive Voice Response (IVR) system or talk to HBL PhoneBanking Officers to: · Get his account balance · Get information about the last 5-10 transactions carried out on his account · Request bank statement. either through fax or email (as supplied in his subscription form) · Get details of transactions from the last 6 months on each of the accounts listed on his subscription form · Change and/or modify his contact details · Transfer funds between his own accounts (as listed in the subscription form) or from his account to a third party account (as listed in the Third Party Authorization Form) · Transfer funds from his own account to an account in another bank under the 1-Link network (Inter Bank Funds Transfer) · Generate his own choice of ATM Pin without filling a request at your branch · Inquire about HBL’s product offerings · Lodge a complaint in case of any inconvenience · Inquire about the daily accounts related profit rates and currency exchange rates · Request a number of physical instruments and/or branch banking related services that he might require. including: · Pay Order · Demand Draft · Statement · Balance Certificate · Cheque Book HBL PhoneBanking services for HBL CarToCar and Car Loan customers HBL CarToCar and HBL CarLoan customers can enjoy the following services through HBL PhoneBanking: · Balance Inquiry · Last 5-10 Transactions · Statement Generation (Email and Fax) · Account Maintenance · Assistance in case of Car Theft/Damage HBL banch assurance Internship Report 33 .

The plan covers life insurance and gives attractive returns on investment to its customers. Plans are available for both under and over 45 years of age. These products have been designed keeping HBL’s customer base as the focus and will provide life insurance along with an investment option.HBL and New Jubilee Life Insurance Company Limited (NJLI) introduce Amaan (Retirement Plan) and Tabeer (Child Education & Marriage). Tabeer (Child Education and 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. Amaan (Retirement plan) Amaan is a pension plan that provides an opportunity for growth through investment in a balanced portfolio with post-retirement income benefits. Internship Report 34 .

medium and large. some branches also have extra large and cubical lockers. 2750 3850 6050 Key deposit is refundable at the time handing over the locker to bank.Lockers Lockers are available in many of the HBL branches in different sizes like small. HBL has a range of solutions designed to help him with his banking needs. Eligibility for using lockers Only the account holders can avail the facility of lockers. Hbl corporate banking HBL Corporate Banking Group comprises a seasoned team of Relationship Managers (RMs) to meet the demanding service standards of large corporations. with a turnover of at least PKR 300 million. Internship Report 35 . enabling it to provide timely and effective financial solutions for their customers to meet the growing challenges of a global economy. Their RMs have the expertise customer need to create tailored financial solutions catering to the specific requirements of his business. For a corporate customer. HBL’s team understands customer’s banking needs and works closely with him to realize his goals. The annual rent will be directly debited from their respected accounts at the start of the year. Except rural areas because of security reasons. Whether establishing a new venture or expanding an existing business. A long history of financing and nurturing relationships in Pakistan has given HBL a unique insight. For the staff of HBL key deposit is not required and also the annual rent is very low for them. Charges Size SMALL MEDIUM LARGE Key deposit (refundable) 2500 3000 4000 Annual rent Rs.

T. etc.I.Saddar. Karachi 10. including Overdraft. HBL Commercial banking HBL’s Commercial Banking Group targets medium sized companies with a turnover of at least PKR 50 million.Napier Road. Karachi 2. responsive and experienced Relationship Managers who are committed to understanding customer’s business. Karachi 9.Services HBL provides the following services to meet customers funding requirements: · Working Capital Finance. Services HBL offers financing for the following: · Working Capital · Procurement of Inventory · Receivables · Procurement of Machinery · Expansion of production facilities · Import of raw materials · Exports · Guarantees HBL COMMERCIAL BANKING CENTERS 1. Sialkot. Faisalabad. Karachi Internship Report 36 . Gujranwala and Peshawar.Foreign Exchange. Letter of Guarantee and Standby Letter of Credit. Lahore. Its business units are located in Karachi. They have the ability and the resources to meet the needs of customer’s business with their pro-active. etc. Each unit is dedicated to service business clusters located within these cities. Karachi 3.E.Al-Noor. · Pre and Post Shipment Export Financing (PKR and USD based) · Import Financing (PKR and USD based) · LMM Funding · Receivable Discounting · Islamic Banking facilities · Cash Management Services · Trade Services including Letter of Credit. FE Loans.S.Korangi Industrial Area. Karachi 11.

sprayers. pesticide and other related inputs. Gujranwala HBL zarai banking HBL ZaraiBanking facilities are spread across the country and provide financing through more than 800 of their branches.Badami Bagh.4. Tractors/Agricultural Vehicles Internship Report 37 . Crop Inputs Crop specific finance for purchase of Agriculture inputs such as seed. Lahore 14. ploughs. enhancing agricultural harvest and. economic output of the country.Panorama Centre. Faisalabad 17. Faisalabad 16.Circular Road.Paris Road. Lahore 13Peco Road. Lahore 6. pesticides. fertilizer. Karachi 5. in turn. Products HBL ZaraiBanking enables farmers to invest in premier quality seeds. fertilizers.Trust Plaza. tube wells and other crop-related tools/implements. Estate. Sialkot.Super Market. agricultural implements and non-farm setups through its various product programs. Peshawar 12. Sialkot 7.Peoples Colony. HBL ZaraiBanking provides loans to small-scale land owning farmers as well as large institutionalized and alliance based finance.Kashmir Road.Tariq Road.Small Ind. 8. HBL’s presence in all agriculture belts of the country ensures easy access to farmers in rural areas. Sialkot 15. Farm Implements Finance available for purchase of farm implements & machinery like combined harvester.

Ijarah (Leasing) Medium to long term facility for vehicles. nets & ropes.L. as member of their Shariah Supervisory Committee to ensure a sound Shariah Compliance mechanism. raw material. Islamic Banking offers Shariah compliant products and services to meet the short and long term requirements of business. Demand Finance is usually available for short term financing needs while Running Finance is available on the basis of revolving limit. giving prompt responses to customer’s needs and access to Shariah knowledge. HBL also have a Shariah Scholar.B. Their Shariah Advisor has in depth experience in Shariah rulings (Fatawa) and teachings at different forums with qualifications of Dars-e-Nizami. poultry feed. At HBL. hatchery construction/equipment. Islamic banking Islamic Banking is a growing market segment that offers attractive opportunities to potential and existing customers. Poultry Finance available for all poultry related activities including poultry farm construction/equipment. medicines. fish farm water solution. ice maker. Internship Report 38 . fish locating equipment. self-employed tractor operators. raising charges and other related activities. Shariah Compliance HBL’s Islamic Banking products are in strict compliance with the tenets of Shariah and bear Shariah Compliance Certification from an independent Shariah Advisor. poultry processing and other related activities. composite feed production. trade and industry. Products and Services Corporate and Commercial customers can choose from Shariah compliant banking solutions to meet their business needs. plant and machinery leased out to the client on rental basis. purchase of medicines / feed and other related activities. NOTE: These finances may be availed under Demand Finance or Running Finance categories. providing the option to select vehicles from a range of different manufacturers.A and L. hatchery plant & machinery. M.Finance available to individual farmers. Fish Farming Finance available for inland fish farms as well as deep-sea fishing. Livestock Finance available for feed. Group Lending Joint finance facility for a group of farmers with small land holdings for working capital requirement. poultry medicines. This includes procurement of boat.

Collection of Foreign Bills. stores or spares. My duties in the department were related to the followings: · Foreign currency exchange rates. ATM and Lockers department Duties and learning in Foreign exchange department First of all I started my training in foreign exchange department of the bank under the supervision of Mr. Murabaha Local and Import facilities for purchase of raw materials. USD. semi finished and finished goods. Asif Iqbal (Manager Forex department). During this period I got a chance to work and learn in following departments of the bank: · Foreign exchange department · Bills clearing department · Credit department · I. Customers are welcome to visit their Islamic Banking branch for the following services: · Current Account (PKR.T department · Cash department · Accounts. Collection of Local Bills. EURO. I came to know about the different functions of foreign exchange department and how to perform these functions during my work in the department. POUND STERLING) · Basic Banking Account · ATM/Debit Card Facility · Foreign / Inland Remittances · Utility Bills Collection · E-banking / Internet Banking Services · 24/7 Phone Banking Services · Personalized customer friendly services · Saving Deposits will be introduced soon Learning as an internee "Knowledge without practice is sterile "In order to give vent to this idea an Internship program of six to eight weeks has been arranged in different esteemed organizations during M. Internship Report 39 . Trade Services Letter of Credit Facility.Diminishing Musharaka Medium to long term facility for vehicles.A. Letter of Guarantees.B. plant and machinery on joint ownership basis.

During the work in clearing department I came to know about the different functions of clearing department and how to perform them. Opening and negotiation both are centralized process in Habib bank therefore approval from head office is required. I also came know about the process of issuing foreign currency account’s cheque book to customers. documents that bank demands from applicant. and payment on maturity date. And I also came to know about the different types of stamps and their use in particular situation like DAK RECEIVED stamp and CLEARING stamp. Learning Opening of letter of credit. Before sending the documents for payment to importer bank negotiator bank must ensure that the entire document mentioned in Claus 46A of the L.C. · Letter of guarantee · Issuing check books for foreign currency accounts · Remittances applications. · Preparing an add list to be attached with clearing instruments (cheques). Bank starts working on opening process after an application is received from the buyer (importer). Then: · Calculating the total amount of vouchers by summing individual amounts.C are attached and complete. · Filling vouchers · Assigning OBC numbers · Making entries in OBC register Internship Report 40 . I came to know about the process of opening of L. After attaching add list. And I came to know about the process and information required to fill the form.T (Availance Ticket) from regional head office and scanning and mailing the documents to head office Karachi for the purpose of getting approval. If no error is found then making register entries by noting down their OBC number branch code and amount of the voucher.C. Negotiation of L. These clearing instruments are delivered to their respective banks for clearance by NIFT. During the week I learn many things about the mechanism of foreign trade. An applicant who wants to transfer funds abroad must have a foreign currency account in the bank.C) both opening and negotiation. · Calculating the total amount of cheques by summing individual amounts. I came to know the process of sending cheques or other clearing instruments for clearance to zonal branch of another region. · Writing vouchers for demand drafts. getting A.· Letter of credit (L. Then checking whether the amount of cheque and OBC (outward bank collections) voucher attached to it is same or not. I also learnt in case of Banker’s Cheques how to verify signature from the book in which all the signatures of authorized persons of HBL are given with their specific code. Duties and learning in bill clearing department The second department in which I got a chance to work was bill clearing department. form used for that purpose. clearing instruments are handed over to NIFT for further processing. During the week I also worked on Remittances application. Bank starts negotiation of letter of credit (which would be already opened by importer’s bank) after the application from seller (exporter). Because State Bank of Pakistan only allow account to account transfer of funds abroad through banks. And I also worked on OBC (Outward bank collection) forwarding schedule.

filling application forms. ATM and Lockers department Then I learned about ATM (automatic teller machine). Next my main concern was to know about all the aspects of ATM card. · 21% for existing users’ upto 3 year duration · 23% for existing users for 4 or 5 years duration. Duties and learning in Accounts. types of commercial loan like industrial loan and loan for merchants. customer’s account statement. how to open the locker with the help of two keys. 23% and 25%.g. Only the government servant who has his salary account at least six month old in HBL can apply. process of issuing ATM card to customers. how to activate ATM card.Duties and learning in credit department After bill clearing department I started my work and learning in credit department of the branch. key deposit (refundable). Haroon Butt (Credit Manager) told me about the terms and conditions of the commercial loan. Then I spent my time in lockers department. I also came to know about the process of operating locker by the customer. finance agreement form etc. types of locker like small. · 25% for new customers I also did work on documentation process for personal loan. Loading cash and balancing at the time of loading again. After that bank officer has to take the signature of the customers on attendance register maintained for this purpose. I took all the information about the terms and conditions of allotting and operating a locker. I came to know about the functions and working process of ATM machine. I came to know about the different types of document required to complete a case for sending it to regional head office for approval. Hypothecation and Pledge. He also gave me chance to view some old proposals and the proposal on which he was working. Copy of CNIC of customer and two references. Mr. charges of using lockers. how to make proposal for commercial loan. Only the customer himself or other person authorized by him can operate the locker. CNIC verification report from NADRA. · 1 key in the hand of bank officer (anticlockwise) · 2nd key in the hand of customer (clockwise) Customer is allowed to operate the locker in full privacy. I came know about the types. Internship Report 41 . document required to make a proposal. markup of commercial loan (18. insurance amount for specific size of locker and etc. application form. Different markup for different categories like 21%. charges of issuing and using ATM card. filling forms.5 % annually). Mortgage. medium and large. Document like branch check list. I also came to know about different types of securities which a bank demands from customer while issuing loan. · Flexi loan (personal loan) · Auto finance · Lifestyle loan In Sahiwal region at this point of time from HBL only personal loan is active while auto finance is about to start again in near future and lifestyle loan is inactive. Guarantees. e. I came to know about the terms and conditions of personal loan.

The learning I got while doing this job would never be easy to get otherwise. (2) Mr. 2 month. return rates that a customer can get and other terms and conditions of each type of account. Khalid Dogar assigned us another task. 1. EUR and GBP Assignments (1)During my work in accounts department Mr. Daily Progressive Account Then current accounts 6. PLS-Savings Account 3. Investment plus Deposit FC accounts 11. 3 month. Then I came to know about Saving accounts and different types of accounts in saving category and terms and conditions of each type. Basic Banking Account (BBA) Term accounts 9. As far as checking the old files are concern it seems boring but from my point of view it was very informative. State bank of Pakistan has instructed all the banks in Pakistan to make sure availability of computerized national identity cards of all the account Internship Report 42 . HBL Advantage Account 10. I came to know the procedure for filling the form to open an account. · Copy of CNIC · Utility bill · Provisional receipt · KYC (Know Your Customer) And how to post an account on system after filling the form. FC-SB Savings Account offered in 3 currencies. USD (US dollar). This turns out to be very informative experience for me. Deposits are considered as lifeblood for any bank to survive.Then my duty was in Accounts department. EUR (Euros) and GBP (UK pound) 12. 6 month and 12 Month in USD. Almost above 50% of the application forms were having discrepancies of different types. Remittance Munafa Plus Savings Account 4. Current Account 8. Khalid Dogar (manager operation) assigned me the duty of checking the files of previously opened accounts for any type of discrepancies like utility bill or service certificate of the account holder is attached or not and checking stamps and signature of the staff etc. I came to know about the procedure and different types of deposits that customers can maintain in HBL. different types of stamps required and about signature of the staff. HBL Value Account 2. HYFFD (High Yield Foreign Currency Fixed Deposit) Available in 1 month. Documents required to be attached with the form. It was because an audit of these files in the coming month is scheduled. HBL Business Value Account 7. Daily Munafa Account 5.

address. I think that a proper marketing programme must be launched for client’s awareness. This also turns out to be a very informative experience for me. CNIC number etc. Asif Iqbal. During the time I learnt many new things which are surely going to help me in my professional career. hard work and such other factors must be considered. Our task was to take the information from accounts like Name. We were given a list of accounts from which CNIC was required and preprinted letters. experience. This task gave me more chances to learn about the computer system of HBL and also I can proudly say that I have my own share of working in computerizing HBL’s record. As we know that nothing is perfect. 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. 3. there is always a room for improvement. Recommendations Habib Bank is performing very well since its inception.holders. How this experience will impact my career Working for 07 weeks in HBL as an intern was very informative experience for me. I learn and get a chance to work on computer software that the HBL is using. During the internship I got a chance to understand general consumer’s behavior and their needs and wants related to banking services and products. work. checking balances and updating the information. It is quite difficult to give suggestion to improve the banking conditions Habib Bank Limited. It was a good experience for me to observe and to be the part of practical working of an organization like HBL. Like account holder’s name. Internship Report 43 . 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. how to view account information. Address and Account type by entering the account number in the system and then printing that information on one corner of the letters. so I will recommend following suggestions for HBL: 1. 2. (3) Due to my familiarity with their computer software I was given another task of updating account information on their computer system MISYS. Mismanagement of resources must be avoided as much as possible as it decreases profit but also discourage hard worker and honest employees. In case of any problem I was consulting it with Mr.

it is not a good practice.ishrathusain. Bibliography Material on these books. they pay more attention and good service to some of the customers and neglect a major portion of them. articles and websites has helped me a lot in preparation this report Books · HBL Corporate Profile 2010 Articles & Documents · · BANKING SECTOR REFORMS IN PAKISTAN: http://www. Online Banking should be introduced in all the branches. HBL should increase its communication with customers about the terms and conditions of its different products and services.encyclopedia. 9. Aggressive publicity campaign must be introduced through press and Electronic media for new products and scheme by initiating vigorous marketing policy.html Internship Report 44 . Banks different schemes must be conveyed to the targeted customers so that to have a reasonable share in market. 7. Some of the customers approach to the bank officials and get their work done before others.com/doc/1G1-61864366.pk/speaches/BANKING_SECTOR_REFO RMS. 5.pdf www. 6.edu. Bank should help the society by providing interest free loans to the Talented Students. All the customers should be treated equally. 8.4. The attitude of the bankers with all of their customers is not the same.iba.

com/articles/07/banking.hbl.investopedia.Websites · · · · · www.com www.com/Q/Evolution_of_banking Internship Report 45 .com www.hblasset.com www.answers.habibbankltd.asp wiki.