Habib Metro Bank Report

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INTERNSHIP REPORT OF
HABIB METROPOLITAN BANK LIMITED
By
Your Name
Roll No
Submitted in Partial Fulfillment of Requirements for the Degree of

Master of Commerce
To
Department of Management Sciences
National University of Modern Languages

Faisalabad, Campus.
August, 2014
National
University
of
Modern
Languages
Faculty of Information Technology and Management
Sciences
It is hereby certified that the report has been thoroughly and

carefully read and recommended to the faculty of management
sciences. For acceptance of final internship report by Name, roll#,
Session (Sep 2012 to June 2014) morning, in partial fulfillment
of the requirements for the degree of (name of Degree of) National
University of Modern Languages Faisalabad.
Dated
Supervisor
Supervisor signature
Panel member name
Panel member signature
Head of department
TABLE OF CONTENT
Chapter
Page
TABLE OF CONTENTS i
EXECUTIVE SUMMERY . v
ACKNOWLEDGEMENT... vi
DEDICATION.... vii
I
Commercial Banking in Pakistan And Origin of Islamic
Banking............................................................................1
1.1
Background Of Pakistani Banking...........................................1
1.1.1
Scheduled Banks and NBFIs.............................................1
1.1.2
Studies Conducted............................................................2
1.2
Regulations Of Commercial Banking In Pakistan....................2
1.3
Technology Used By Commercial Banks In Pakistan...............3
1.4
Structure Of Commercial Banks In Pakistan...........................3
1.5
Challenges Faced By Commercial Banks In Pakistan..............4
1.6
Commercial Banks Operating In Pakistan...............................5
1.7
Introduction Of Islamic Banking.............................................7
1.7.1
Re-launching of Islamic banking.......................................8
1.7.2
Departments and divisions...............................................8
1.8
Vision Statement Of Islamic Banking......................................9
1.9
Mission Statement Of Islamic Banking...................................9
1.10 Objectives Of Islamic Banking..............................................10

1.11 Islamic Modes Of Financing..................................................11
1.11.1 Musharakah....................................................................11
1.11.2 Mudarabah.....................................................................11
1.11.3 Murabaha.......................................................................11
1
1.11.4 Salam.............................................................................12
1.11.5 Istisna.............................................................................12
1.11.6 Ijaraha............................................................................12
II
Introduction of Habib Metropolitan Bank Limited..........13

2.1
Introduction..........................................................................13
2.1.1
2.2
HBZ Group......................................................................13
Company Profile...................................................................14
2.2.1
Vision Statement............................................................14
2.2.2
Company Registration Number.......................................14
2.2.3
Company National Tax Number......................................14
2.2.4
Registered Office............................................................14
2.2.5
Website...........................................................................14
2.3
Habibmetro Organization Chart............................................15
2.3.1
Habibmetro Code of Conduct for Directors of the Bank..15
2.4
Habibmetro Memberships....................................................17
2.5
Product.................................................................................17
2.5.1
Current Account..............................................................17
2.5.2
Saving.............................................................................18
2.5.3
Term Deposit...................................................................23
2.6
Services................................................................................25
2.6.1
Habibmetro Home Remittance.......................................25
2.6.2
Habibmetro Money Gram International..........................25
2.6.3
Habibmetro Cash Management Services........................26
2.6.4
Habibmetro E-Salary.......................................................26
2.6.5
Habibmetro Rent Free Lockers........................................26
2.6.6
Habibmetro Short Term and Long Term Finance.............26
2.6.7
Habibmetro Shares Subscription Desk (Services)...........26
2.6.8
Habibmetro 24 Hours Call Center...................................27
2.6.9
Habibmetro Web Banking...............................................27
2.6.10 Habibmetro SMS Banking...............................................28

2
2.6.11 Habibmetro POS (Point of Sale) Services........................28

2.6.12 Habibmetro E-Statement................................................29
2.6.13 Habibmetro Visa (ATM / Debit Card)...............................29
2.7
Habibmetro Islamic Banking.................................................30
2.7.1
Mission............................................................................30
2.7.2
Introduction....................................................................30
2.8
Islamic Product.....................................................................31
2.8.1
Habibmetro Islamic Current Account..............................31
2.8.2
Habibmetro Islamic Saving Account...............................31
2.8.3
Habibmetro Islamic Investment Certificates (HIIC).........32
2.8.4
Habibmetro Murabaha....................................................33
2.8.5
Habibmetro Ijarah...........................................................33
2.8.6
Habibmetro Diminishing Musharakah.............................33
2.8.7
Habibmetro Trade Services.............................................34
III Structure and Departments of Habibmerto...................36

3.1
Hierarchy Chart....................................................................36
3.2
Brief Introduction Of All The Departments...........................37
3.2.1
Business development department................................37
3.2.2
Cash management department......................................37
3.2.3
Account opening department.........................................37
3.2.4
Credit department..........................................................37
3.2.5
Dispatch department......................................................38
3.2.6
Clearing department......................................................38
3.2.7
Account department.......................................................38
3.2.8
Finance department........................................................38
3.3
Comment On The Organizational Structure..........................39
3.4
Future Prospects Of The Organization..................................39
IV Learning in Six Week Internship..................................41

4.1
A Brief Introduction Of The Branch.......................................41

3
4.1.1
Starting and the ending dates of my internship.............41
4.1.2
Names of the departments in which I got training.........41
4.2
Training Program..................................................................42
4.2.1
Account opening department.........................................42
4.2.2
Cash department............................................................43
4.2.3
Credit department..........................................................44
4.2.4
Cleaning department......................................................45
4.2.5
Inward clearing...............................................................46
4.2.6
Outward Clearing............................................................46
4.2.7
Remittances Department................................................47
4.2.8
Western Union................................................................48
4.2.9
Telegraphic transfer (TT).................................................49
4.2.10 Demand draft (DD).........................................................49

4.3
Ratio Analysis.......................................................................50
4.3.1
Gross spread ratio..........................................................50
4.3.2
Noninterest income to total income ratio.......................51
4.3.3
Spread ratio....................................................................52
4.3.4
Return on Asset ROA Formula.........................................53
4.3.5
Return on Total Equity(ROE)...........................................54
4.3.6
Debt Ratio.......................................................................55
4.3.7
Debt / Equity Ratio..........................................................56
4.3.8
Times Interest Earned.....................................................57
4.3.9
Advance /deposit ratio....................................................58
4.3.10 Operating cash flow ratio...............................................59

4.3.11 Dividend Per share..........................................................60
4.3.12 Earning per share...........................................................61
Analytical Analysis......................................................62
5.1
Swot Analysis.......................................................................62
5.1.1
Strengths........................................................................62
5.1.2
Weaknesses....................................................................63
5.1.3
Opportunities..................................................................63
4
5.1.4
Threats...........................................................................64
VI Conclusion and Recommendation................................65

6.1
Conclusions..........................................................................65
6.2
Recommendations For Improvement....................................66
6.2.1
Security cameras............................................................66
6.2.2
Proper reception.............................................................67
6.2.3
Token system..................................................................67
6.2.4
Behavioral and professional training..............................67
References...................................................................... 68
EXECUTIVE SUMMARY
This report is about HabibMetro. In October 1992, HabibMetro was

established under HabibMetro Ordinance 1949. National bank is
owned by the government and act as an agent of the State bank of
Pakistan. Its headquarter is situated in Karachi. It has its national
and international level branches i.e. 51 national. HabibMetro
maintains its positions as a pakistans premier bank for higher
achievements. Its subsidiaries include HMB Capital, HMB Modaraba
Management Company, HMB Exchange Company, Taurus Securities,
HMB Almaty and others. It offers its unique products that are
affordable for all classes.
During my internship, I learn a lot about working in different
departments that are account opening, clearing and remittance. The
main department of any bank is finance department and the main
function of any bank is to deal with finance. Any bank secures the
5
resources of general public and offers them a good profit. HMB also
provides services for government employees. One portion of bank is
reserve for government employees dealings only.
After complete analysis of HabibMetro, I come to this conclusion that
the HabibMetro plays an important part in financial sector and it can
gain highest success.
DEDICATION
To My Loving Teachers, Friends, and family members who have been

steadfast supporters throughout myM.com with their invaluable love
and understanding
T
6
ACKNOWLEDGEMENT
7
First of all I am thankful to ALLAH who always helped me in all of the

ways in my life and always gave me courage and patience to do all
of my internship in a good manner and secondly I am thankful to my
teacher and all of the staff of the bank that also helped me to do my
internship.
YOUR NAME
1
2
3
4
5
6
7
8
9
CHAPTER NO 1
1 INTRODUCTION OF HABIB METROPOLITAN BANK

LIMITED
10
2
1. INTRODUCTION
3
4
Habib
Metro
was
incorporated
in
Pakistan as a Public Listed Company in

1992 under the name, Metropolitan
Bank Limited. The Bank commenced,
duly
licensed,
full
commercial-banking
scheduled
operations
in
October 1992.
Metropolitan Bank, from October 1992
to September 2006, remained a highly
rated bank and, vide its nationwide 51branch on-line network, established as a
distinguished provider of trade finance
services.On October 26, 2006 Habib
Bank A G Zurich`s Pakistan Operations
merged into Metropolitan Bank Limited
and the merged entity was named
Habib
Metropolitan
Bank
Limited.
Demonstrating a strong commitment to

Pakistan economy, HBZ is the principal
shareholder of Habibmetro.
Habibmetro operates in all major cities
of the country. The Bank ranks within
Top 10 in Pakistan with a strong vision
to be the most respected Financial
Institution. HABIBMETRO has its primary
focus
on
retail
banking
and
trade
finance and also offers highly innovative

E-Banking
solutions
and
Consumer
Banking to its customers. The Banks

Islamic Banking Division is fully capable
of
catering
to
customers
seeking
Shariah compliant products.

COMPANY PROFILE
Vision Statement
Based on a foundation of trust, to be the

most
respected
financial
institution,
delighting customers with excellence,

enjoying the loyalty of a dedicated
team,
meeting
the
expectations
of
regulators and participating in social

causes while providing superior returns
to shareholders
8
Company Registration Number
K-03892
(CUIN 0028018)
10
Company National Tax Number
11
12
0711167-3
13
Ground Floor, Spencers Building,
Registered Office
I.I.Chundrigar Road,
3
Karachi74200,Pakistan
Phone (92-21)111-14-14-14
Fax (92-21) 3263 0404 05
14
Website
15
Parent Company Habib Bank AG
Zurich (www.habibbank.com)
16 Subsidiary Company HabibMetro
Financial Services (www.hmfs.com.pk)
17
BACKGROUND
18
Banking
in
Pakistan
first
formally
started in Pakistan during the period of

British colonialism in the South Asia.
After independence from British Raj in
1947, and the emergence of Pakistan as
a country in the globe, the scope of
banking in Pakistan has been increasing
and expanding continuously. Pakistan's
oldest
bank
is
the
State
Bank
of
Pakistan, which is also the central bank

of the nation. Before independence on
August 14, 1947, the Reserve Bank of
India was the central bank of what is
now
Pakistan.
After
independence,
Muhammad Ali Jinnah took actions to

establish a central bank in Pakistan,
which resulted in the new founding of
the State bank of Pakistan, with its
headquarters to be based in Karachi.
Only 7% of the population uses the
4
banks, has tremendous potential but

this needs to be pushed a little further.
19 Pakistans financial sector consists of
Scheduled
Commercial
include
nationalized,
private
banks;
Financial
which
foreign,
and
Institutions
include
Banks
and
Non-banking
(NBFIs)
Development
which
Finance
Institutions (DFIs), Investment Banks,

leasing
companies,
modarabas,
and
housing finance companies tan under

structure,
conduct
and
performance
paradigm of industrial organization.
20
Scheduled Banks and NBFIs
21 Scheduled Banks and NBFIs (excluding
Moradabad and leasing companies) are
both regulated by the State Bank of
Pakistans Prudential Regulations, albeit
through different wings, and are subject
to different SBP regulatory requirements
such as CapitaLand liquidity reserve
requirements. Modaraba and leasing
companies are being regulated by the
Securities and Exchange Commission of
Pakistan
(formerly
Corporate
Law
Authority), which is a body corporate.

Compared to commercial banks which
cater
mostly
to
short-term
working
capital requirements, NBFIs cater to

medium and long term financing needs
and, thus, are barred from engaging in
5
any
commercial
banking
activities
including trade business and issuing

cheques. However, the SBP allowed
commercial banks to undertake long
term
project
scheduled
lending.
banks,
Among
only
the
Pakistani
commercial banks are listed.
22
Studies Conducted
23 Although there are number of studies on
market
structure,
performance
in
the
conduct
and
banking
sector
conducted since 1960s for a number of

countries (for a survey see Swank 1996,
Berger 1995, & Gilbert 1984), there is
hardly such a study in the context of
Pakistan. However, there exist some
studies with limited scope like Qureshi,
et al (1998) on cost structure of five
commercial banks and one specialized
bank1, Malik, et al (1989 & 1991),
Qureshi et al (1984) and Qureshi & Shah
(1992) on the rural finance and Siddique
& Siddiqui (1998) on overall profitability
of
the
banking
Recently
SBP
sector
in
(2002)
Pakistan.
evaluated
commercial banks performance under

traditional
analysis,
framework
but
it
also
of
financial
excluded
an
analysis of the market structure and

conduct of the banking sector. Thus,
one is still unable to find a study on the
6
NBP, HBL, UBL, and ABL, MCB & ADBP

commercial banks of Pakistan.
24
REGULATIONS OF COMMERCIAL BANKING IN PAKISTAN
25
26 Regulations of Pakistans commercial Banks
Limit on Exposure to a Single Person/Group

Limit on Exposure against Contingent Liabilities
Minimum Conditions for Taking Exposure
Limit on Exposure against Unsecured Financing Facilities
Linkage between Financial Indicators of the Borrower and Total
Exposure From Financial Institutions

Exposure against Shares/TFCS and Acquisition of Shares
Guarantees
Classification and Provisioning For Assets
Assuming Obligations On Behalf Of NBFCS
Facilities to Private Limited Company
Payment of Dividend
Monitoring
Margin Requirements
27
TECHNOLOGY USED BY COMMERCIAL BANKS IN PAKISTAN
28
29
Technological advances are quickly
changing the face of the Pakistani

banking industry. Alternative channels
are growing quickly and represent a
sizable
portion
of
banks
revenue
streams as all banks as well as mobile

network operators are jumping on the
branchless banking bandwagon.
30 As I discussed in the previous piece
about shrinking spreads, published on
November
utilized
by
4,
the
business
commercial
model
banks
of
7
collecting
deposits
and
investing
in
treasury bills is not sustainable. No

single additional revenue stream can
completely
compensate
for
the
declining interest income, so banks will

have to aggressively pursue revenue
expansion
from
streams.
31 Competition
is
several
also
diversified
expected
to
intensify in smaller cities as there are

many underserved affluent customers in
Hyderabad,
Multan,
Sukkur,
etc.
Aggressively growing mid-sized banks

such as Bank Alfalah and Meezan Bank
are looking to expand their branch
network to these cities.
32 Given the intense competition and
increasingly price-sensitive customers,
price increase for standard banking
services, such as cheque book issuance,
is
unlikely.
To
generate
additional
income, banks will have to develop new

and innovative products and cross-sell
to increase products per customer.
33
STRUCTURE OF COMMERCIAL BANKS IN PAKISTAN
34
35
We will discuss structure of banks in
Pakistan, first in terms of number of

banks and size of banks (as measured
by assets, deposits, etc), then in terms
of concentration ratios(Lorenz curve,
Gini co-efficient, Herfindahl index and
8
Concentration
Ratio).In
1990,
seven
domestic banks and seventeen foreign

banks were doing business in Pakistan.
All the domestic banks were owned by
the
government.
Entry
of
domestic
private sector in the banking business

had
been
banned
since
the
promulgation of Banks.
36 Nationalization Act 1974 However, as
a part of financial liberalization strategy
of 1990s, Private sector was allowed to
open commercial banks in 1991. At that
time fifteen banks were opened. During
the next ten years the process of
entering of new banks and exiting of
inefficient banks continued. Moreover,
in order to go some step further to
make the banking sector competitive,
the government also denationalized a
couple of commercial banks. In 1999,
there were 19 domestic banks and
seventeen foreign banks in Pakistan
(see Annex for list). Of the domestic
banks, four were owned by the federal
government, two were privatized, two
were
owned
by
the
provincial
governments and the rest were in the

private sector. The government has also
minimized
its
interventions
in
the
business of its own banks in order to

ensure that a competitive environment
prevails in the industry. Along with the
growth
of
banks
in
numbers,
their
9
business
also
shows
reasonable
growth during 1990s. Total assets of

commercial banks grew at a compound
annual growth rate of 15 percent, from
Rs 419 billion at the beginning of
decade to Rs 1,469 billion by the end of
1999.
37 Amongst different groups, assets of private banks showed fastest
growth during 1990s, followed by foreign banks. A similar trend is
witnessed in the advances and deposits of the banks.
38
CHALLENGES FACED BY COMMERCIAL BANKS IN
PAKISTAN
39
40
The banking sector in Pakistan has
been going through a comprehensive

but complex and painful process of
restructuring since 1997. It is aimed at
making
these
institutions
financially
sound and forging their links firmly with

the real sector for promotion of savings,
investment, and growth. Although a
complete turnaround in banking sector
performance is not expected until the
completion
of
reforms,
signs
of
improvement are visible. The almost

simultaneous nature of various factors
makes it difficult to disentangle signs of
improvement and deterioration.
41 Commercial banks have been exposed
and withstood several types of pressure
since 1997. Some of these are
10
Multipronged reforms introduced by the central bank,

Freezing of foreign currency accounts,
Continued stagnation in economic activities and low growth and
Drive for accountability and loan recovery. All these have brought
a behavioral change both among the borrowers as well as among
the lenders. The risk aversion has been more pronounced than
warranted.
42
43
11
44
45
46
47
48
49
50
51
52
53
54
55 CHAPTER NO. 2
HABIBMETRO ORGANIZATION CHART
56
57
58
59
60
61
62
63
64
12
65
66
HIERARCHY CHART
67
68General Manager
69
Regional Manager
70
Branch Manager
71
Branch Credit Committee
72
Internal Auditor
73
Credit Department
Customer Service DepartmentGeneral Banking
74
Account Opening Department
75
76 Cash Deposit Department

Foreign Exchange Department
Bills Remittances Department
Clearing Department
13
HABIBMETRO ORGANIZATION CHART
77
14
78
15
79
80
81
82
83
Habibmetro Code of Conduct for Directors of the Bank
84
The members of Board of Director of
HabibMetro
Ltd,
hereinafter
called
HabibMetro, are expected to uphold the

core values of the Bank relating to
lawful and ethical conduct of business,
Key aspects of the Banks Code of
Conduct include the following
Integrity and honesty
85
The directors shall discharge their
responsibilities
with
the
highest
standards of ethics and professional

honesty and integrity in all dealings with
the
public,
employees.
clients,
The
investors
directors
are
and
also
required to comply with the regulations

of the Bank in letter and spirit in order
to protect the interest of the Bank and
to inform the Board if he became aware
16
of any irregularity that might affect the

interest of the Bank.
86
Professionalism
87
The directors shall serve the Bank
honestly, faithfully, ethically and with

utmost competence, and shall use their
best endeavor to promote and uphold
the interest and goodwill of the Bank.
88
Fidelity and secrecy
89
The directors shall not disclose to any
person
any
information
as
to
the
practice, dealings and affairs of the

Bank, or to divulge any information
relating to the affairs of its customers,
except in circumstances in which it is in
accordance
usage
with
law,
customary
practice
among
and
banks,
necessary or appropriate to divulge

such information as director of the
Bank.
90
Conflict of interest
91
The directors shall ensure that their
personal interests do not conflict with

the responsibilities they owe to the
bank.
In
become
particular,
personally
they
shall
involved
in
not
any
transaction, negotiation or contract on

behalf the bank, with an entity in which
they or any of their relative/friend has
17
an
interest,
without
full
written
disclosure and prior written consent of

the Board of Directors.
92
Insider dealing
93
The directors shall abide by the terms
and
conditions
applicable
subscribing
laws
contained
and
and/or
in
regulations
acquiring
all
on
the
shares/securities of the Bank.
94
95
HABIBMETRO MEMBERSHIPS
International Chamber Of Commerce.

Karachi Bankers Club.
Management Association of Pakistan.
Overseas Investors Chamber of Commerce & Industry.
Pakistan Banks Association.
Swiss Business Council.
The Institute of Bankers Pakistan.
96
97
98
99
100
18
CHAPTER NO.3
PRODUCT/ SERVICES
101
19
PRODUCT
102
Current Account
Habib Metro Basic Banking Account
103
Your basic banking requirements
do not require multiple monthly cheque

transactions,
then
Basic
Banking
account may fulfill your day to day

banking
needs
with
no
minimum
balance requirement or restrictions on

ATM withdrawals.
104
105
Features & Benefits
No minimum amount requirement for opening the account.

No requirement for maintaining minimum balance.
Non-remunerative account.
No limit on number of ATM / Deposit transactions.
Two cheque transactions will be allowed free per calendar month.
Charge of Rs. 25/- per cheque will be applied from the third
cheque onwards.
106
Free Services
Free Payment Orders.

Free HABIBMETRO ATM/Debit Card.
Free Funds Transfer within HABIBMETRO.
Free Web banking services.
Yearly Statements.
Rent Free lockers.
107
20
Habibmetro Current Account
108
Enjoy your everyday banking
needs with absolute ease through our

non-interest bearing Current Account.
109
110
Features & Benefits
The minimum amount required to open the account is Rs 5,000/This is a checking account with no limit on the number of
transactions.
111
112
Free Services
Cheque Book(s)
Free Payment Orders
Free HABIB METRO ATM/Debit Card
Free Funds Transfer within HABIBMETRO
Free Web banking services
Free Half-yearly Statements
Rent Free lockers
113
Saving
Habibmetro PLS Saving Account
114
Offers you the simplest way to
save and manage your savings with

high rate of return.
115
116
Individuals / Companies
117
Eligibility
Amount Requirements
No minimum amount requirement.

21
118
Profit Payment
Profit Calculated on Average Balance & paid on Half Yearly Basis.
119
Exclusive
Free
Life
Insurance
Cover
Min Qualifying Balance Rs 15,000/Maximum claim Rs 1,000,000/Basis Average credit balance of previous 6-months
120
Zakat, Withholding Tax & Other
Levies
Zakat / Taxes will be applicable as per law/rules from time to

time.
121
Free Services
Cheque Book(s)
Free Payment Orders
Rent Free lockers
122
Habibmetro Saving Plus Account
123
Earn monthly profits and access
your growing savings at all times
124
125
Eligibility
126
Amount Requirements
Individuals Only
Minimum Average Deposit Rs. 100, 000/Maximum Average Deposit Rs. 25, 000, 000/22
*If the amount falls behind the minimum requirement or exceeds

the maximum required deposit; profit will be paid on prescribed
SBP rate.
127
Profit Payment
Monthly Profit Payment on Average Balance
128
Exclusive
Free
Life
Insurance
Cover
129
Levies

time.
130
131
Free Services
Cheque Book(s)
Free Payment Orders
Rent Free lockers
132
Habibmetro Privilege 55+ Savings Deposit
133
Considering
HABIBMETROs
HABIBMETRO
the
privilege
Now
Offers
Need
of
Customer
Privilege
55+, a saving account with unique
23
features. As HABIBMETROs Privilege

customers you now enjoy,
134
Individuals
Age Requirement 55 years & above
135
Eligibility
Amount requirement*
Minimum Average Deposit Rs. 25, 000/Maximum Average Deposit Rs. 25, 000, 000/-
136
*If the amount falls behind the minimum requirement or
exceeds the maximum required deposit; profit will be paid on

prescribed SBP rate.
137
Monthly Profit Payment on Average Balance
138
Profit Payment
Anniversary Bonus
Upon maintaining a minimum balance of Rs. 1,000,000/- or more

for the year, the account holder will be eligible to receive an
anniversary Bonus
Exclusive Free Life Insurance Cover
In case of joint account, primary account holder will be covered
up to 65 years of age.
Maximum Age 65 years. In case of joint account, 1st person will
be covered if under 65 years.

139
140
Levies
24

time.
141
Free Services
Cheque Book(s)
Free Payment Orders
Rent Free lockers
142
Habibmetro Multiplier Account
143
Enjoy
the
facility
of
making
transactions while earning profit on

daily basis
144
Individuals / Companies
145
146
Eligibility
Profit payment
Profit calculated on daily basis and paid on monthly basis
147
Levies

time.
148
Free Features
Cheque Book(s)*
Free Payment Orders
Free HABIBMETRO ATM/Debit Card
Rent Free lockers
25
149
Habibmetro Foreign Currency Saving Plus ($, , )
150
Considering
the
Need
of
HABIBMETROs Customer, HABIBMETRO

Now Offers Foreign Currency Saving
Account with unique features
151
152
Eligibility
153
154
Currency Type
155
Profit Payment
Individuals
US Dollar
Pound Sterling
Euro
Monthly Profit Payment on Minimum Balance.
156
Anniversary Bonus
Upon maintaining a minimum balance of 100,000/- or more in

respective currency for the year, the account holder will be
eligible to receive an anniversary Bonus
157
Withholding Tax & Other Levies
Taxes & other levies will be applicable as per law/rules from time
to time.
158
159
Free Services
Issuance of FTTs*
Outward Remittances (2 per month)*
Cheque Books
Collection of Outward Foreign Cheques
26
SMS Alerts & Internet Banking
160
Term Deposit
161
Habibmetro Mahana Scheme
162
Habib Metro Mahana Scheme
offers high rate of returns on your fixed

deposits with the benefit of monthly
profits
163
164
This Scheme is open for Individuals
165
Tenure & Investment Details
Funds may be deposited for 1, 3 & 5 years
167
Amount Requirements
Minimum Investment Rs 25,000/-
166
Eligibility
Profit Payment
Profit will be paid on monthly basis.
168
Maturity
27
Upon maturity principal will be automatically rolled over at the

rate applicable on the date of maturity.
169
Levies

time.
170
Premature Encashment
A premature encashment fee will be levied for premature
withdrawal of funds from the scheme.

The rate of the fee will be 2% of the deposit amount or the
amount of profit already paid until the date of premature
withdrawal, whichever is lower.
171
Habibmetro Premium Deposit Scheme
172
You can now enjoy the facility of
quarterly or half yearly profit payments

at your convenience
173
Eligibility The scheme is open for
any
Individuals
174
Minimum deposit requirement is Rs. 25,000/-,
175
176
Amount Requirement
Tenure
Funds may be deposited for 1, 3 & 5 years
28
177
Profit Payment
Profit will be paid on Quarterly or Half Yearly basis as per

customers preference at the time of booking the deposit.
178
Maturity
Upon maturity principal will be automatically rolled over at the

rate applicable on on the date of maturity.
179
Levies
All payments will be subject to Zakat (as per rules), withholding

tax and other government levies as applicable from time to time.
180
181
Premature Encashment
A premature encashment fee will be levied for premature
withdrawal of funds from the scheme.

The rate of the fee will be 2% of the deposit amount or the
amount of profit already paid until the date of premature
withdrawal, whichever is lower.
Habibmetro Izafa Certificates
182
Earn higher returns by investing
it in Certificate of Deposit for 07 Years.
183
184
Eligibility
185
Amount Requirement
Individuals
29
Minimum Rs. 10,000/-
186
187
Tenure
Certificates are offered for 7 years with Profit Paid on Maturity.
188
Early Encashment
Encashable anytime, no penalties
189
Levies

time.
SERVICES
190
Habibmetro Home Remittance
191
Habibmetro
Home
Remittance
facilitating
overseas
Division
is
Pakistanis
under
patronage
of
the
guidance
Pakistan
and
Remittance
Initiative (PRI), a joint initiative of State

Bank of Pakistan, Ministry of Overseas
Pakistanis
Through
and
this
Ministry
service
of
Finance.
loved
ones,
families, friends & remitters can send

money back to Pakistan.
192
Habibmetro Money Gram International
30
193
Money Gram has a global reach
through its network of over 334,000

local agents in more than 200 countries
and territories, providing customers with
convenience and flexibility. Money Gram
is a fast, trusted and secure service to
receive money all over the world from
your loved ones in a few minutes.
194
Habibmetro Cash Management Services
195
Cash Management department
provides
high
quality
solutions
and
services to its Corporate Clients. The

client can be benefited in the form of
efficient
liquidity
management
to
increase their profitability
196
Habibmetro E-Salary
197
which
Comprehensive system through

salary
employees
of
disbursement
our
valued
to
the
corporate
customers with ease & efficiency.
198
Habibmetro Rent Free Lockers
Secure
Rent Free Lockers
31
Refundable security deposit

Available in,
199
SIZ
200 Sec
urity
Depo
sits
201
SM
202 Rs.
20,00
0
203
ME
204 Rs.
35,00
0
205
LA
206 Rs.
60,00
0
207
EX
208 Rs.
100,0
00
209
210
32
Habibmetro Short Term and Long Term Finance
211
The bank also offers short term
working
under
capital
sharia
financing
including
compliant
modes,
exports/import financing and long-term

finances
to
Corporate/Commercial
customers as well as SMEs trade &

industry. It also extends Agricultural
credit, specialized financing tailored to
customers needs and is also a regular
member of Syndicated financing club.
212
Habibmetro Shares Subscription Desk (Services)
213
We provide following services to
our valued customers.
Initial Public Offering IPO

Right Shares RS
Term Finance Certificate TFC
Dividend Warrant DW
214
Habibmetro 24 Hours Call Center
33
215
Now
you
can
access
your
account without going to the bank, 24

hours a day, 7 days a week absolutely
free. Thismeans all you need is a touchtone telephone at home, at work or on
the go to access all the information you
needwithout making a trip to the branch
Dial 0800-42242 (Habib) and reach our
Customer Services Representative
Get your account Balance

Short Statement
Cheques in Clearing
Lodge a complaint in case of any inconvenience
Cash dispense issue complaints
ATM/VISA Prepaid Card Blockage
Inquire about the daily accounts related profit rates and currency
exchange rates
VISA Card internet activation
VISA Card Transaction details
Lead(s) Generation
Inquire about our product offerings
Habib Metro Network Information
216
Habibmetro Web Banking
217
218
Web Banking
Access your account from your
home or office or anywhere in the world.
Login through web banking username and password.
219
Following
services
can
be
accessed 24/7
Up-to-date Account Balance.

Cheques in Clearing
Account statement
34
Beneficiary Management (Local Fund Transfer, Outside Fund
Transfer)
Debit / Credit Advice
220
221
Internal Fund Transfer ( HabibMetro To HabibMetro)

Inter Bank Fund Transfer (HabibMetro To Other Bank)
222
Fund Transfer
Utility Bill Payment Services
Electricity
Sui Gas
PTCL
Internet Service Providers (ISP)
PTCL Evo Prepaid
PTCL Evo Postpaid
Wateen
WiTribe
223
Mobile Top Up/Airtime Purchase
(Easy Load)
TELENOR
UFONE
WARID
ZONG
QUBEE DISTRIBUTOR
MOBILINK
Habibmetro SMS Banking
224
SMS
HabibMetro SMS Banking utilizes

channel
financial
as
to
well
conduct
as
non
various
financial
transactions. The simple to use service

facilitates
HabibMetro
customers
to
conduct transactions from the location

35
of
their
convenience.
simple
structured SMS will land the required

information on your fingertips.
225
Habibmetro POS (Point of Sale) Services
Now you can withdraw cash from all HMB branches cash counters
easily and without any delay.

Each HabibMetro branch is now equipped with a POS machine
available on their Cash Counters.

No need to issue cash cheques and no need to wait .
Cash can be withdrawn up to Rs. 400,000/- via HMB VISA (ATM /
Debit card).
Cash can be withdrawn up to Rs. 250,000/- via HMB ACCESS
(ATM / Debit card).
(Subject to availability of funds in the account )
226
Habibmetro E-Statement
227
You
can
get
your
account
statement electronically and avoid use

of paper based statements.
228
E-statement will be delivered at
your designated email address and the
same will arrive in no time as compared
to courier. In addition E-Statement is a
more secure mode of transmission.
229
Just
fill
up
the
attached
subscription form and visit your branch
to avail this free service and make
Pakistan a Green State.
230
36
Habibmetro Visa (ATM / Debit Card)
HABIBMETRO VISA Debit Cards are available to our valued clients
at all HABIBMETRO branches.

Make transactions up to the credit balance available in your
account
Withdraw cash through convenient POS terminals at all
HABIBMETRO branches.
Daily ATM Withdrawal Limit Rs 100,000/Daily Branch cash counter POS Limit Rs 400,000/Local Purchase and Online Shopping Limit Rs 200,000/-
231
232
HABIBMETRO
Access
(ATM
Debit Card)
HABIBMETRO Debit Cards are FREE, and available to our valued
clients at all HABIBMETRO branches.

Make transactions up to the credit balance available in your
account
Withdraw cash through convenient POS terminals at all
HABIBMETRO branches
Daily ATM Withdrawal Limit Rs 30,000/Daily Branch cash counter POS Limit Rs 250,000/-
BRIEF INTRODUCTION OF ALL THE DEPARTMENTS
233
234
There is brief introduction of all
the departments of the HABIB METRO

bank
235
Business development department
236
The
business
department
promotes or selling the product to the

customers, products like ATM account
37
opening forms etc .this department

work
as
set
the
target
according
the
current
strategies
circumstances
this department work with the three

strategic objectives.
customer satisfaction
employee satisfaction
Business results.
237
Cash management department
238
In this department the teller are
the casher person receive the deposited

and the give the cash to the account
holder
on
their
demand
and
also
maintained the online etc. in cash

department there is three type of sector
.
239
Token issuance
Cash receipt
Cash payments
Bill receives or fees received etc.
240
Account opening department
241
The
account
opening
department is the department which

deals with the account opening open of
new
account
or
the
verifying
the
account this department is necessary as

par the order of the state bank of
Pakistan in this department I come to
38
know how to open the account by filling

the account opening form and also
attached the NIC card copy and it is
verify by the NADRA
242
Credit department
243
In this department the bank
granted the loan to the customer and

there are the different type of the credit
which is provided to its customer during
my internship I learned that if some
individual request for the loan then
bank granted him a loan according to
limit and some requirement for different
kind
of
loan
for
example
if
the
organization request for the loan then

bank granted the loan according to
some
requirement
and
limits
which
apply on the organization.
244
Dispatch department
245
Dispatch department is the very
important sector in the bank because all

inward and outward mails in which
ordinary and sensitive as well, routed or
transfer to this department as the mail
in the branches consists of documents
covering title to goods, cheques, inter
branch Dr. Cr. Advices, letter of credit in
international banking apart from other
39
routine letters. So it is important to

handle dispatch carefully and make sure
there is not wrong devilry
246
Clearing department
247
There are two type of clearing in
the bank and during my internship me

doing both type of the clearing.
Inward clearing
Outward clearing
248
Account department
249
This is important department in
which the account are maintained and

also the voucher and the books and the
all the expenses or expenditure of the
bank are maintained so it is the most
important
department
of
the
bank
maintain all the account of the bank is

the duty of this department and this
department is working well.
250
Finance department
251
Financing
department
is
the
important department because bank

finance in various ways like advancing
the loan and make the profit as a excess
amount in the way of interest the HABIB
40
METRO finance in such a way giving the

loan to the customer and also buy the
share of the private organization also
finance in the agriculture sector and the
private sector as well.
252
COMMENT ON THE ORGANIZATIONAL STRUCTURE
253
The success of the organization
is based on organizational structure the

HABIB METRO organizational structure is
very
smooth
and
efficient
.for
the
convenience of work the work is divided

to department according to the type of
the work and no bank or organization
can be run if their employee not doing
their assign work or duties the during
my internship in the bank I observed
that at the department doing their
assign
duties
and
there
is
no
discrepancy between the bottom line

employees
and
the
top
level
management .all the communication

between
the
employees
and
the
department is efficient whither it is

horizontal or vertical communication
.there
is
horizontal
harmony
and
among
vertical
line
the
of
management .every employee know his

duty and authority for doing the retain
job I like the structure of the bank due
to it clear and who reports whom
transparency method.
41
254
bank
In my opinion that HABIB METRO

of
Pakistan
doing
the
clear
,transparent and the exceptional work

which make the HABIB METRO bank
(Ltd) a leading bank in the banking
sector of the Pakistan.
FUTURE PROSPECTS OF THE ORGANIZATION
255
256
The future prospectus of HABIB
METRO bank(Ltd) for the convenience of

the customer the bank install the ATMs
machines all the big cities and make all
the branches online these steps takes
more technology in the banking sectors
and make the business more profitable.
257
HABIB METRO team loyal to
takes the Banking to the top level of
success. Key features for the future
prospectus are given below.
258
In future the HABIB METRO bank
work on the customer satisfaction and
make the new rules and launching new
products to the valuable customer to
attain the major share in the market
locally
as
well
as
globally
like
remittances , payroll and the trade

policy
and
making
the
cash
management more effective. The HABIB

METRO bank makes the all branches
online for the customer, the customer
can make the transaction with more
ease at home and on his computer and
42
make the payments of the all type of

utility
bill
by
using
online
banking
service and the other online facilities

too. The HABIB METRO management
invests in his branches and franchise to
make them more business oriented and
effective. HABIB METRO bank introduces
the new financial product and service to
take the leading position as compare to
its competitors and positively traveling
to achieve it goal.
259
HABIB METRO bank taken the
steps to reduce the expenditure and
invest in those things and business to
make sure to maximize its profitability.
HABIB METRO bank focuses on the
expansion
of
its
customer
oriented
franchises and especially in Islamic and

SME segments. The HABIB METRO bank
is taking the steps and investment on
the
employees
and
focus
on
their
training because if there is no talented

and
professional
employees
in
the
organization the organization not make

effective progress.
260
And the final thing is that control
and
command
by
the
central
management so the top management

develops the strong culture and invest
on their franchises and also in other
business activities and HABIB METRO
doing a great gob for the purpose of the
attainment of the goal.
43
261
262
263
264
265
266
267
268
269
270
271
272
273
274
44
275
276
277
278
279
280
281
282
283
284
285
286 CHAPTER NO 4
287
LEARNING IN SIX WEEK

INTERNSHIP
288
45
289
A BRIEF INTRODUCTION OF THE BRANCH
290
291
Thank fully I did my internship
from HABIB METRO bank (Ltd) Allied

hospital branch. This Branch is online
branch so I leaned that the working of
the management is very smooth and
the efficient.
292
In this branch I observed that
this branch doing a great business and
the management and the staff of the
branch is efficient and the professional
and the manage handle all the working
of the branch and this branch have the
very good contact and the relation with
the shops business entities and the
other sound parties as well to increase
the deposit of the branch and maintain
the efficiency of the work and enhance
the organization.
293
The manager
guided
to
the
different functions operating within the

organization
and
the
sub
manager
makes sure and takes the responsibility

that staff doing work efficiently in the
entire department.
294
And also the branch is well
maintained
and
decorated
and
the
entire department have separate place

within the organization to doing there
assign duties and the environment of
46
the organization attract the customer as

well which is good for the organization.
295
Starting and the ending dates of my internship
296
Starting and the ending dates of
my internship program in the HABIB

METRO bank (Ltd)
Allied hospital
branch
297
298
299
Starting Date 1st July 2014

Ending Date 20th August 2014
300
Names of the departments in which I got training
301
During my internship I work
almost in the all department and my

internship duration is 6 week I learnt the
working of the following department
302

Cash department
Credit department
Clearing department
Remittances department
303
TRAINING PROGRAM
304
305
Detailed description of the tasks
assigned to me during the internship

program
47
306
Duration of my internship six
week in a HABIB METRO bank (Ltd)

Allied hospital branch I learned the
detail work of the different department I
work in the various department but I
explain those department in which I got
full
command
during
my
learning
process . The detail of the function

which I perform is mention as under
307
308
In my first two weeks Ill work in
the account opening departments. It is

important
department
of
the
bank
because all the working of the bank

base on account and the bank account
shows the deposit of the bank if any
person working with the bank or the
organization
then
first
step
is
the
account opening and my work is in the

department is to open the new account
for a valuable customer and I learned
that there is few many document which
is use in the opening of new account.
There are many type of accounts the
HABIB METRO bank (Ltd) is offered to its
customer
in
which
include
Current
account, Saving account, (PLS) Profit

and loss account, these have different
specification of the customer which will
gave
benefit
of
him.
For
account
48
opening the minimum amount required

is 1000 Rs.
309
The document which is used in
the opening a new account is as under
Account opening form

The name of person who request for opening the new account
The type of the account
Computerized Copy of national identification card
Check the expiry date
Filled the opening form
Signature of the person
SS Card (Specimen Signature Card)
Mother name
Father name
Present address
Permanent address
KYC Foam (Know your Customer)
CNIC Required for KIN
310
311 The
most
important
in
account
opening is SS Card signature because

we grudge it may which customer
withdraw
the
money
is
original
customer or not, and other step is KYC

Form in this form we collect all secret
information
like
client
Father
and
mother name, income of the business,

his email address, postal address, and
content number. The last one is CNIC
required of KIN for those person who
have a blood relation of client like
father, mother, brother, sister, in this
there is no required for friend or other
person NIC only for those who have a
blood relation of the client.
312
49
Cash department
313
During my internship I spent my
3rd week in the cash department and

cash department is totally deals with
the cash whether the cash comes in the
bank or out from the bank during the
learning in the cash department I learn
the all the activities which is perform in
the
cash
department
department
there
is
.in
the
cash
various
sub
department according to the categories

which are performing by the different
persons in the department in the cash
department
there
are
four
to
five
counters in which include
The issuance the token

Receipt counter or the cash deposit counter
Payment of cash and checks
Verification and clearance the check and account counter
Bill and fee receive counter
314
315
During my learning process I
learned that first of all issue the token

to the customer and then in the receipt
counter
receive
the
cash
and
maintained the account and then if a

customer have a check then the cheque
is verifies by the verification person and
then the casher makes the payment
against the cheque and also transfer the
money online and maintained the all
activities which is casher duties i.e. give
the cash to the valuable customer and
50
the bill and the fees receive counter

receive the bill payment and the fees
and maintain all the activities related to
bill and fees collection.
316
The activities
of
the
cash
department of HABIB METRO bank (Ltd)

is as under
Source of cash
Management of cash
Deposits
Demand draft and the online maintains
Treatment of surplus cash
Treatment of the cash deficit
Cash transit
Issuance of cash
Security arrangements
Verification of cheque
Receive the bill and the fees collection
317
318
This
is
the
most
important
department of the bank I leaned while

working in this department that there is
all about maintains of the cash in this
department
in
the
staff
work
very
carefully make sure there is no mistake

and in the closing at evening both the
sides of the cash account is balanced or
equal then the banks makes the profit.
319
Credit department
320
My
4th
week
during
my
internship in the credit department the

credit department is the one of the most
51
important department of the bank. The

credit
department
is
works
with
maintain the loan and credit and also

issue
the
credit
after
necessary
verification and the security and the

guarantee to the desire limit and there
is the rule and the regulation to issue
the credit and loan to the customers.
321
Credit department of HABIB
METRO bank (Ltd) deals with different
type of running finance and the type of
loan is as under
Cash finance
Demand finance
Term finance
Short term and loan term loan Etc.
322
323
I learned in this department that
the basic information that I entered for

the issuance of credit or loan is as under
Name of the customer

Copy of CINC
Expiry date of the CNIC
Date of birth
Complete address
Income of the customer
324
325
If the individual wants to take
the loan from the bank then there is the

limits of the loan which provided by the
bank to any person or the organization.
I leaned that for the purpose of loan
giving by the bank there is few many
document and the guarantee required
52
by the bank according to the loan type

the requirements is as under
326
Account number of the borrower and the account type

Nature of the business and the main products
Name of the borrower
Purpose of the loan whether it is for partnership or proprietor
business
Type of the business
Details in case of firm and companies associated with the loan
And the current financial position of the business
And the accurate financial statement of the business last two
years or more
And the detail of the borrowers bank account with other banks
327
328
The purpose of the credit is for
the starting the new business or the

expansion of the existing business or
the purchase of the stock
329
Cleaning department
330
My 5th week is all about the
clearing department. I learned the work

and the function which is performed in
the
clearing
department.
This
department the important department

of the bank I learn that clearing is the
process in which bankers settle their
mutual accounts by the claming the
arising account of various instruments
presented by one bank drawn on the
other banks in a same city or the
outside the city through NIFT (National
53
Institutional Facilitation Technologies).

NIFT is the department of collection of
clearing cheques of each branch, these
plays middlemen of the bank and client.
There are two types of clearing going in
the
bank
Inward
clearing
and
the
Outward clearing .we can say that the

clearing is clear those cheque which
cannot be cash at the cash counter of
the bank . the representative of the
respective bank collect all the cheque
and the instrument which drawn on
there and settle the account and doing
the clearing function this assembly of
the representative of the bank is called
Clearing
house
NIFT
perform
the
clearing on the behalf of the commercial

banks in all the cities throughout the
country.
331
The type of the clearing is as
under
Inward clearing/ Local clearing

Outward clearing/ Intercity clearing
332
Inward clearing
333
The
instrument
and
the
settlement or the claim by the other

banks or the other branches of HABIB
METRO on our branch of HABIB METRO
bank in which include the cheque draft
and etc, are drawn by the other bank
customer or by the HABIB METRO bank
54
branches in clearing in the inward

clearing process there is few thing
include which is mentioned as under
Cross stamp on the face

Clearing stamp on the front and the back
The clearing stamp bearing the date of the next working day
Payees account is credited and the stamp on the cheque and
signature of the operational manager

And before entering the cheque into the computer the stamp and
the signature is to be verified and the cheque is posted and
drafted.
334
Outward Clearing
335
HABIB
I leant about outward clearing in

METRO
bank
clearing
department. out ward clearing is that

the settle of claims of our branch of
HABIB
METRO
bank
or
the
other
branches of HABIB METRO bank drawn

of other banks or other branches of
HABIB METRO bank deposited by our
customer in our branches of the bank ,
presented by our branch of HABIB
METRO bank in out ward clearing .
336
When the cheques of outward
clearing is received then it is entered
into the clearing registered
337
338 Following detail are entered is in the
both registered is as follow
Serial No.
Account no. of the depositor
Depositor name
55
Drawer
Drawee
Cheque No.
Amount of the cheque
Cross stamp on the face of the cheque
And the clearing stamp
And the stamp on the back of the check payee account will be
credited
339
340
The
local
clearing,
bundle
cover is arranged manner the branch

code stamp, total amount and number
of instruments. This amount should
match the one that is kept in the
Clearing Register.
The cheques or the
instrument
bundle
with
cover
and
outline are packed in NIFT bag. Before

putting these items in the bag, a plastic
seal number is required and should be
written on the bundle cover and the
same seal should be used to close the
NIFT bag. This is to ensure additional
safety as when the seal is opened, it is
non-replaceable. If the seal number on
the bag and on the bundle cover does
not match, it is a suggestion that the
bag has been tamper with. Strict action
can be taken by NIFT and the Bank
consequently.
341
In clearing process there s also
include intercity clearness
342
Remittances Department
56
343
My last week is about working in
the remittances department. It is very

important department in the current
scenario in this department the bank
deals with transfer money and different
type of fund and also receive fund from
abroad form the Pakistani community
and others as well which is called
remittances
344
The HABIB METRO bank transfer
different
type
of
fund
through
the
different services in which the some is

mentioned below
345
346 I learnt that the money transfer and
remittances have following features
Quick and hassle free transfer

There is little charges of transfer
And same day devilry to HABIB METRO account holder
SMS alert facility
And for non account holders the funds transfers online or via
bank draft.
347
And also when the nonresident
person sends the fund to their family

the bank is takes the following steps;
Alert with a phone call or SMS to customer

No charges or no deduction to the recipient.
Received the 8 digit PIN from receiver and then check it whether
the remittance is received and fill the form

Then check the copy original national ID card
And then received the CNIC copy from the person
Then the verification Seal or stamp placed on the form
And the last step is that the person received the cash from the
casher
57
348
Western Union
349
During
my
work
in
this
department I deals with the customer

which transfer their money through the
western union. Through the use of the
western union one can get money from
all cities in the Pakistan from western
union branches or any bank or post
office or the money changer. When
person sent the money, the concerned
company or bank give the PIN number
to the person against the name of the
person
and
the
cell
number
who
received the money through western

union. When the receiver go to bank for
receiving of money the bank takes the
PIN number and the original CNIC copy
from the receive and give him money
Telegraphic transfer (TT)
350
filling
Telegraphic transfer is that after

the
application
form
the
concerned officer fills the telegraphic

transfer form after that it is sent to the
required bank and then the concerned
bank makes the payment immediately
to the customer and after that the
voucher sent to the bank by the mail.
58
351
Demand draft (DD)
352
Demand
draft
is
like
an
instrument as issue on the will of the

customer
because
avoid
the
extra
burden of the currency and it is payable

on the demand when the customer want
it its issue by the one branch of the
bank a payable by another branch of
the same bank.
353
354
59
355 CHAPTER NO. 5

SWOT ANALYSIS
SWOT ANALYSIS
356
Strengths
357 Habibmetro Limited has certain
strengths which are different from the
other Banks.
Habibmetro is one of the first Muslim Bank of the world, which is

owned and managed by its own employs. This is the biggest
strength of the Bank. A feeling of ownership is present in every
employ, which not only helps in increasing the productivity of
employs but also creates sincerity with the Bank in them.

Strength is the high motivation of employees to their work
because they know that what so ever they do, it will be in their
own benefit. They know that the profit, which they will earn, will
be distributed among all the employees. So they work with high
motivation and concentration.

Salaries are very reasonable, so the employees are not financially
disturbed and they devote their selves fully to their work.

They have wide area network in all over the Pakistan, so that
they cover a lot of portion of cash transactions and make
customer satisfied.
The Bank has very strict rules and regulations about the
customers complaints. The customers are treated as very
special persons in the Bank.

Conservative and sustainable business policy
Flat hierarchies, high degree of flexibility and lean decision-
making
Highly qualified and experienced staff
60
Customized products packages and services, high level of client

service and close contacts to manufacturers and leasing
companies
Extensive market and asset expertise
Credit portfolio diversified by multiple criteria and categories
Advanced risk management and pricing systems
Maturity matched funding
Strong capital base due to own funds
Unique business model with a clear focus, cycle-neutral business
approach and global presence in all key transport markets
Weaknesses
Relatively high sector exposure

Global presence requires high staff resources
High staff costs due to high levels of employee qualification in
terms of academic expertise and experience

No material client deposits
Dependence on the money and capital markets
Exposure to the Euro/US dollar exchange rate, with an impact on
growth and results

No entertainment facilities are available in the Bank when
customer goes to the Bank and wait for a longer time. These
facilities can be the newspaper, magazines, etc.

Advertisement of Habibmetro is not such goods as of other
banks.
Out look of the Habibmetro branches is not attractive to the
people.
As compare to other private commercial banks the limited
branches of Habibmetro are computerized.
Opportunities
Realization of margins in line with risks taken

Expansion of anti-cyclical Investment Management activities
Building new client relationships
61
Expanding the advisory and other services offered to clients,
investors, and banks

Boosting our reputation as a reliable partner to the international
transport industry
The policies of the new government to uplift the economy and
pursue financial sector reforms are expected to yield positive
results in the banking industry of the country. The Habibmetro is
very well praised to avail promising opportunities.

As a result of the different steps taken by the Government
regarding the betterment of the economy, small borrowers are
attracted to get the financing and start small businesses. So, the
Habibmetro has an opportunity to attract the customers by
giving them attractive schemes.

They have wide area network in all over the Pakistan, if
Habibmetro can make it possible the fast delivery of fund from
abroad through online banking, it can cover the major market of
Pakistan which still is capturing by Hundi.
Threats
Distortions on the money and capital markets, in the broadest
sense.
Decline in transport asset values in the various transport market
segments.
Impact of the global financial markets crisis and the sovereign
debt crisis in Europe.

Increasing debt levels in some industrial countries and emerging
markets.
Unanticipated rise of the US dollar against the Euro.
Further government support for Habibmetro's bank competitors
growing regulatory requirements.

Spikes in crude oil prices.
First threat is that of political influence. Three boards of directors
are of government. So that they can influence on the decisions of
the Habibmetro.
62
The biggest threat in the banking sector is the continuous

downfall of the country economy since the last few years. If this
downfall remains for more few years then it may be the great
hindrance in achieving the Banks objectives.

New Privates Bank coped with emerging new Technology of IT.
358
63
359
360
CHAPTER NO.6
RATIO ANALYSIS
361
362
Gross spread ratio
363 Formula
364 Net interest margin / mark-up earned
365
366
367
368
370
372
7,
8,
9,
369
371
373
374
375 Working
376
2011
Net income margin = mark-up earned mark-up
expanses
377
= 27263385-19536154=7727231
378
(Page#117 2012 profit and loss account
consolidated)
379
2012L Net income margin = mark-up earned mark-up
expanses
380
= 28566583-19654046=8912537
381
consolidated)
64
382
2013 Net income margin = mark-up earned mark-up
expanses
383
= 24641671-15569764=9071907
384
consolidated)
385
386 Graphical presentation of Gross
Spread Ratio
387
Gross Spread Ratio
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
Gross Spread Ratio
2011
2012
2013
388
389
390
391
392
393
65
394
395 Interpretation
396 Gross spread ratio is increased in every year in its value.
397
Noninterest income to total
income ratio
398 Formula
399 Noninterest income / total income
400
401
402
403
405
407
404
406
408
409
410 Working
411
2011
Total income=interest earned + non mark-up
income
412
=27,263,385+10,172,092=37,435,477
413 (Page # 117 of 2012 profit and loss account
consolidated)
414
415
2012
Total income=interest earned + non mark-up
income
416
=28566583+ 11097039= 39,663,622

consolidated)
418
66
419
2013 Total income=interest earned + non mark-up
income
420
=24,641,671 + 11,782,402 = 36,424,073

consolidated)
422 Graphical
presentation
of
Non
Interest Income to Total Income

Ratio
423
Noninterest income to total income ratio
0.33
0.32
0.31
0.3
0.29
0.28
0.27
0.26
0.25
0.24
2011
2012
2013
424
425
426
427
428
429
430
67
431
432
433
434 Interpretation
435 Non interest income to total Income
ratio is increased gradually.
436
Spread ratio
437 Formula
438 Interest earned / interest expenses
439
440
441
442
446
449
443
447
450
444
448
451
445
452
453 Working
454 2011
455
Page # 117 of 2012 profit and
loss account consolidated

456 2012,2013
457
Page # 122 of 2013 profit and
loss account consolidated
68
458
459
460 Graphical presentation of Spread
Ratio
461
Spread Ratio
1.6
1.55
1.5
Spread Ratio
1.45
1.4
1.35
1.3
1.25
2011
2012
2013
462
463
464
465
466
467
468
469
470
69
471
472
473
474
475 Interpretation
476 Spread ratio increased every year.
477
Return on Asset ROA Formula
478
479 (Earning before income tax / total
assets) * 100
480
482
483
Ye
Ye
484
487
489
24
20
485
488
490
481
486
491
492 Working
493 2011
EBIT = profit before
tax + interest expenses

494
=4,644,806 +
19,536,154=24,180,960
495 (page#117 2012 profit and loss account
consolidated)
70
496 Total assets =288,200,657 (page#116 2012 balance

sheet -consolidated)
497 2012
EBIT = profit before tax +
interest expenses
498
=5,041,324 +
19,654,043=24,695,367
499 (page#122 2012 profit and loss account
consolidated)
500
Total assets =304,310,087(page#121 2012 balance
sheet consolidated)
501 2013
EBIT = profit before tax +
interest expenses
502
=51,17,294 +
15,569,764=20,687,058
503
(page#122 2013
profit and loss accounts -consolidated)

504 Total assets =311,395,637 (page#121 2013 balance
sheet -consolidated)
71
505
Return on Assets
10
8
Return on Assets
6
4
2
0
2011
2012
2013
Graphical Presentation of Return on

Assets
506
507
508
509
510
511
512
513
514
515 Interpretation
516 Return on asset is decrease over the
year and it is not a good sign for the
organization.
517
Return on Total Equity(ROE)

72
518 Formula
519 (Net income / total equity) * 100
520
522
523
Ye
524
526
528
7,
8,3
525
527
529
521
530
531 Working
532 2011
533 Net income 7,362,729 (page#117
2012 profit and loss account
-unconsolidated)
534 Total equity 24,581,369 (page #116
2012 balance sheet unconsolidated)
535 2012
536 Net income 8,310,500(page#122
-unconsolidated)
537 Total equity 28,188,611(page #121
2013 balance sheet unconsolidated)
538 2013
539 Net income 9,562,533(page#122
-unconsolidated)
540 Total equity 27,985,283(page#121
2013 balance sheet -unconsolidated)
73
541
542 Graphical Presentation of Total
Equity
543
Return on Total Equity
35
34
33
32
31
30
29
28
27
Return on Total Equity
2011
2012
2013
544
545
546
547
548
549
550
551
552
553 Interpretation
554 Return on total equity is decrease over
the year this in not worthy for the
74
organization and it is increase by profit

by saving more and more taxes.
555
Debt Ratio
556 Formula
557 Total Liabilities / Total Assets
558
559
560
Ye
Ye
Ye
561
564
567
26
26
28
562
565
568
563
566
569
570
571 Working
572 2011
573 Total liabilities 263,619,288
(page#116 2012 balance sheet
-consolidated)
574 Total assets 288,206,517 (page#116
2012 balance sheet consolidated)
575 2012
-consolidated)
578 2013
75

-consolidated)
581
582 Graphical Presented of Debt Ratio
583
Debt Ratio
0.91
0.91
0.91
Debt Ratio
0.91
0.91
0.9
0.9
2011
2012
2013
584
585
586
587
588
589
590
76
591
592
593
594 Interpretation
595 Debit ratio has been decrease in 2012
and relatively stable 2013
596
Debt / Equity Ratio
597 Formula
598 Total liabilities / total share holder
Equity
599
600
601
602
Ye
Ye
Ye
603
606
609
26
26
28
604
607
610
605
608
611
612
613 Working
614 2011
616 Total shareholders equity 24,581,369
consolidated)
617 2012
77

consolidated)
620 2013
(page #121 2013 balance sheet
consolidated)
623
624 Graphical Presentation of Debt /
Equity Ratio
625
Debt to Equity Ratio
10.8
10.6
10.4
10.2
10
9.8
9.6
9.4
9.2
Debt to Equity Ratio
2011
2012
2013
626
627
628
629
630
631
78
632
633
634
635 Interpretation
636 Debt/ equity ratio has been decrease
over the years.
637
Times Interest Earned
638 Formula
639 Earning before Income Tax (EBIT) /
Interest Expenses
640
641
642
Ye
Ye
Ye
643
646
649
24
24
20
644
647
650
645
648
651
652
653 Working
654 2011 EBIT = profit before tax +
interest expenses
655
=4,644,806 + 19,536,154=24,180,960
656
Interest expenses =19,536,154
657
(Page#117 2012 profit and loss account consolidated)

658 2012 EBIT = profit before tax +
interest expenses
659
=5,041,324+ 19,650,443=24,695,367
79
660
Interest expenses =19,650,443
661
(Page#122 2013 profit and loss account -consolidated)

662 2013 2013- EBIT = profit before tax +
interest expenses
663
=5,117,294+ 15,569,764=20,687,058
664
Interest expense = 15,569,764
665
(Page#122 2013 profit and loss account consolidated)

666
1.32
1.3
1.28
1.26
1.24
1.22
1.2
2011
2012
2013
Graphical Presentation of Time

Interest Earned Ratio
667
668
669
670
671
672
673
80
674
675
676
677 Interpretation Time interest has
increased gragually.
678
Advance /deposit ratio
679 Formula
680 Advance / deposit
681
682
683
684
685
688
691
686
689
692
687
690
693
694
695 Working
696 2011,
697
Page #116 of 2012 balance sheet unconsolidated

698 2012, 2013
699
Page # 121 of 2013 balance sheet -unconsolidated
700
701 Graphical presentation of Advance
to Deposit Ratio
702
81
703
Advance to Deposit Ratio
0.6
0.58
0.56
Advance to Deposit Ratio
0.54
0.52
0.5
0.48
2011
2012
2013
704
705
706
707
708
709
710
711
712
713
714
715
716 Interpretation
82
717 Advance to deposit ratio is decrease

over the period.
718
719
Operating cash flow ratio
720 Formula
721 Operating cash flow / current liabilities
722
723
724
725
727
729
3,
4,
5,
726
728
730
731
732 Working
733 2011
734 Current liabilities = bill payable +
borrowing + deposit +other liabilities
735
=263,619,288
(Page#116 2012 balance sheet

consolidated)
736 2012
738
=263,619,288

consolidated)
739 2013
83
741
=28,3410,354

consolidated)
742 Graphical presentation of
Operating Cash Flow Ratio
743
744
Operating cash flow ratio
0.02
0.02
0.01
0.01
0.01
0.01
0.01
0
0
0
2011
2012
2013
745
746
747
748
749
750
751
752
84
753
754
755
756 Interpretation
757 Operating cash flow increase every
year
758
Dividend Per share
759 Formula
760 Total dividend / no. of outstanding
shares
761
762
763
Ye
Ye
Ye
764
767
770
1,
1,
2,
765
768
771
769
772
=0
766
=
773
774 Working
775 2011
776 Dividend paid = 1,062(page120 2012
cash flow consolidated)
777 No. of outstanding shares =
2,344,818.1
778 2012
779 Dividend paid = 1,569,822(page124
2012 cash flow consolidated)
85

2,564,969.1
781 2013
782 Dividend paid = 2,893,214 (page124
2013 cash flow consolidated)
2,837,546.8
784
785
Dividend per Share
1.2
1
0.8
Dividend per Share
0.6
0.4
0.2
0
2011
2012
2013
Graphical Presentation of Dividend

per Share
786
787
788
789
790
86
791
792
793
794
795
796
797 Interpretation
798 Dividend per share of the company is
fluctuation over the years. It depend
upon the companys policy how much
dividend it likes to share with its share
holder.
799
Earning per share
800 Formula
801 Net income / number of outstanding
802
803
804
Ye
Ye
Ye
805
808
811
7,
8,
9,
806
809
812
807
810
813
814
815 Working
816 2011
817
Net income = 7,362,729

87
818
Number of shares outstanding = 2,344,818.1

819 2012
820
Net income =8,310,500
821

822 2013
823
Net income = 9,562,533
824

825 Graphical Presentation of Earning
Per Share
826
Earning per Share
3.4
3.35
3.3
Earning per Share
3.25
3.2
3.15
3.1
3.05
3
2011
2012
2013
827
828
829
830
831
832
88
833
834
835
836
837 Interpretation
838 Earning per share has decreased over
the years; it is need to be increasing it
by increasing the net income.
839
840
89
841
842
843
844
845
846
847
848
849
850
851
852
853
CHAPTER NO 7
854
CONCLUSION
855
856
90
CONCLUSIONS
857
858
METRO
During my internship in HABIB

bank
(Ltd)
it
has
good
experience of 6 weeks and I learn so

much
about
the
banking
and
the
working and I also observe many thing

in which some thing are good for the
banking business and I observe some
weakness
in
the
HABIB
METRO
branches. the good thing is that most of

the branches are online and connected
with the main Bank and the online
system which I like and observe is
secure and time saving and there is less
chances of the mistake as compare to
non-online bank branches there is also
facility of ATM machine almost all the
branches of HABIB METRO bank which is
good for bank and the customer too and
the working and the functioning of the
HABIB METRO bank is smooth and
customer oriented and the management
is good but there is also the drawback is
that
some
employees
has
not
professional degree which makes the

difference as compare to the work of
the professional degree holder some
employee not paid full attention to the
customer
and
not
use
the
proper
business language with the customer

but the professional have the very good
91
manner and they give proper attention

to their customer.
859
I
experienced
management
is
that
the
to
give
hesitate
internee chance of working in the cash

department because they are not take
any risk. Also some branches have not
full decorated and in some branches
there
is
no
installation
of
rotation
camera which is not good for the

security.
860
I conclude through the study
and perpetration of the ratio analysis I
conclude that the Net profit margin of
the company decrease and it is need to
be improved and Gross spread ratio also
decrease need to be improved, non
interest
income
to
total
income
is
relatively increase which is good sign for

organization . Debt ratio of the company
decreased over the years. Return on
asset (ROA) increasing on the year base
its good because the organization uses
its asset effectively and efficiently and
there is also need to improve the return
on equity. Price earn ratio is stabilizing
over the period of time and the return of
equity has been decreased.
861
862
the
Finally I conclude that by keep

entire
thing
in
mind
organization
doing
good
that
business
overall but the need to make the

policies of the organization is more
92
effective and stabilized which makes the

organization more sound reliable and
strong.
863
CHAPTER NO.8
SUGGESTION AND RECOMMENDATION
864
93
RECOMMENDATIONS FOR IMPROVEMENT
865
866
The HABIB METRO bank (Ltd)
doing good gob over the years that way

the deposit of the organization increase
and the profitability also increase. The
recommendation for the improvement is
as follow
867
Recommendation as the basis of
the ratio analysis
Gross spread ratio of the organization is steady decreasing and
need to be improved.
Noninterest income to total income ratio is improving and need
to be continued.
Spread ratio is good but organization must decrease the interest
expenses which help in improving in the interest income which is
very good for the organization.

Debt ratio is decrease over the period of the time and its thing
need to be continued.
Return on assets is improving over the year and make sure this is
continued.
Organization takes the necessary step to stabilize the net profit
margin.
Return on asset is increasing and this trend need to be continue
Gross profit margin and return on equity is not satisfactory need
to be improved
And also the earning per share of organization needed to be
improved.
868
on
And the other recommendation

the
bank
management
for
improvement is as follow
869
Security cameras
94
870
In some branches there is not
the proper installation of the security

cameras so I suggest that in every
branch there is the installation of the
rotation
security
necessary
for
cameras
the
security
which
of
is
the
organization
871
872
873
Proper reception
874
There is no proper reception in
the bank branches so the people have

no proper information no guide line so
the organization takes a measure for
the reception so that it is good for the
customer because every customer is
valuable for the bank.
875
Token system
876
I observed that the token system
has many problem because if there is

lot of customer and after the break or
the closing of the bank and some time
people have no time so that they bring
token with them it creates a problem for
the bank and the customer too so there
95
is chance to loss the customer in my

suggestion the organization doing the
measure no to loss the value able
customer and increase the staff such as
if there is one casher counter increase it
to two so that customer is treated hurry
and there is time saving both for the
bank and the customer .
877
Behavioral and professional training
878
Last suggestion is that there is
proper education and training of the

staff of the organization and also the
work on the behavior of the staff. If
there is proper training and behavior it
is good of the organization and this step
hold the customer for long period of
time.
96
879

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It is hereby certified that the report has been thoroughly and

Commercial Banking in Pakistan And Origin of Islamic

Background Of Pakistani Banking...........................................1

Scheduled Banks and NBFIs.............................................1

Regulations Of Commercial Banking In Pakistan....................2

Technology Used By Commercial Banks In Pakistan...............3

Structure Of Commercial Banks In Pakistan...........................3

Challenges Faced By Commercial Banks In Pakistan..............4

Commercial Banks Operating In Pakistan...............................5

Introduction Of Islamic Banking.............................................7

Re-launching of Islamic banking.......................................8

Departments and divisions...............................................8

Vision Statement Of Islamic Banking......................................9

Mission Statement Of Islamic Banking...................................9

1.10 Objectives Of Islamic Banking..............................................10

Introduction of Habib Metropolitan Bank Limited..........13

Company Registration Number.......................................14

Company National Tax Number......................................14

Habibmetro Organization Chart............................................15

Habibmetro Code of Conduct for Directors of the Bank..15

Habibmetro Home Remittance.......................................25

Habibmetro Money Gram International..........................25

Habibmetro Cash Management Services........................26

Habibmetro Rent Free Lockers........................................26

Habibmetro Short Term and Long Term Finance.............26

Habibmetro Shares Subscription Desk (Services)...........26

Habibmetro 24 Hours Call Center...................................27

Habibmetro Web Banking...............................................27

2.6.10 Habibmetro SMS Banking...............................................28

2.6.11 Habibmetro POS (Point of Sale) Services........................28

Habibmetro Islamic Banking.................................................30

Habibmetro Islamic Current Account..............................31

Habibmetro Islamic Saving Account...............................31

Habibmetro Islamic Investment Certificates (HIIC).........32

Habibmetro Diminishing Musharakah.............................33

Habibmetro Trade Services.............................................34

III Structure and Departments of Habibmerto...................36

Brief Introduction Of All The Departments...........................37

Business development department................................37

Cash management department......................................37

Account opening department.........................................37

Comment On The Organizational Structure..........................39

Future Prospects Of The Organization..................................39

IV Learning in Six Week Internship..................................41

A Brief Introduction Of The Branch.......................................41

Starting and the ending dates of my internship.............41

Names of the departments in which I got training.........41

Account opening department.........................................42

Telegraphic transfer (TT).................................................49

4.2.10 Demand draft (DD).........................................................49

Gross spread ratio..........................................................50

Noninterest income to total income ratio.......................51

Return on Asset ROA Formula.........................................53

Return on Total Equity(ROE)...........................................54

Debt / Equity Ratio..........................................................56

Times Interest Earned.....................................................57

Advance /deposit ratio....................................................58

4.3.10 Operating cash flow ratio...............................................59

VI Conclusion and Recommendation................................65

Recommendations For Improvement....................................66