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INTERNSHIP REPORT

ON
HABIB BANK LIMITED PAKISTAN
PREEDY GATE BRANCH BANNU
SUBMITTED TO:
SIR AMAN ULLAH AWAN
DIRECTOR (IMS)
SUBMITTED BY:
MUHAMMAD ASHRAF KHAN
BBA-IT (Hons)
ROLL NO#78
SESSION !""#-!"$"
INSTITUTE OF MANAGEMENT SCIENCES% UNI&ERSITY OF SCIENCE AND
TECHNOLOGY BANNU
APPROVAL SHEET
AN INTERNSHIP REPORT
ON
HABIB BANK OF PAKISTAN, PREEDY GATE BRANCH
INTERNSHIP REPORT SUBMITTED TO THE DIRECTOR, INSTITUTE OF MANAGEMENT
SCIENCES, IN PARTIAL FULFILLMENT OF THE REQUIRMENTS FOR THE DEGREE OF
BBA-IT (HONS)
EXTERNAL EXAMINER:

SIGNATURE: .
DIRECTOR: PROF:
HAI AMAN ULLAH KHAN A!AN
SIGNATURE
SUPERVISOR:
NAME: MR. AFTAB KHAN
DESIGNATION: LECTURER
SIGNATURE: .
I"#$%$&$' () M*"*+','"$ S-%'"-'#, U"%.'/#%$0 () S-%'"-' *"1 T'-2"(3(+0 B*""&
DEDICATION
I dedicate this
effort to my
Parents & Teachers
who Guide
&
Encourage me
during the course
Of
My Studies and
preparation of this
Report.
PREFACE
Every student of Bachelor in Business Administration at UNIVERSITY OF SIENE AN!
TE"NO#O$Y BANNU has an essential re%uirement to do Si& 'ee(s internshi) in any of the 'ell
re)uted or*ani+ation, The )ur)ose of this )ro*ram is to ac%uaint the students 'ith )ractical a))lications
of theoretical conce)ts tau*ht to them durin* conduct of their BBA -IT. )ro*ram,
The internshi) in "ABIB BAN/ is )ersonally arran*ed 0y my o'n resources and the de)artment *ave
me a letter for *ettin* this internshi),
Really1 it 'as a nice o))ortunity to have a close com)arison of theoretical conce)t in )ractical field1
involvin* the use of )rimary and secondary data, This Re)ort may de)ict deficiencies on my )art 0ut
still it is an out)ut of a student2 efforts1 for 'hich I 0e* )ardon,
The out )ut of my analysis is summari+ed in a sha)e of Internshi) the contents of the re)ort Sho's the
detail of se%uence of these, The re)ort is concluded 'ith )ro0lem and su**estions,
3U"A33A! AS"RAF /"AN
BBA4IT -"ons.
RO## NO5 678
UST BANNU
ACKNOWLEDGEMENT
No one can say that I am )erfect everyone should admit that 'ithout the hel) of A##A" and "is )eo)le
a man can2t *et anythin* so I 0o' my head 0efore almi*hty Allah 'ith *ratitude, I am also very much
than(ful and )resents salute to many individuals 'ho have hel)ed me in sha)in* this re)ort ,I am also
very much than(ful to lot of former fello's and contem)orary collea*ues 'ho too( the time and trou0le
durin* the last fe' days to s)ea( to me a0out the 'ay this te&t could 0e further im)roved,
Iamvery than(ful to the director of I3S "a9i Aman Ullah A'an Sahi0,
I am also than(ful to the staff of "a0i0 Ban( #td,
3U"A33A! AS"RAF /"AN
BBA4IT -"ons.
RO## NO5 678
UST BANNU
Executive Summary:
As 'e all (no' very 'ell that time and tide 'ait for none, So1 0ecause of this ra)id chan*e in time and
era 'e have to co)e 'ith it, !urin* this era I *ot an o))ortunity of *ettin* )ractical (no'led*e a0out the
Ban(in* system in :a(istan, So to %uench the thirst of )ractical e&)osure and for *ettin* the 0asic
(no'led*e a0out Ban( I 9oined "B# :reedy $ate Bannu, !urin* si& 'ee( in "B# I *ather all necessary
information a0out "B#,
Efforts have 0een made to com)ile this re)ort in such a 'ay that activates its salient features not only for
students 0ut also for the layman, I have divided this re)ort into different ha)ters,
First ha)ter is a0out introduction OF "B#, Second ha)ter is a0out $eneral Ban(in* !e)artment
*ives us descri)tion a0out ho' to o)en an account1 ho' to de)osit and clearin*, Third ha)ter discusses
the )rocedure of customer dealin* and satisfaction fourth ha)ter is a0out the 0ranch 'here I 'or(ed
and 'atch different function 'hich I learned in "B# :reedy $ate Bannu,
Fifth ha)ter is a0out the )rocedure of *ettin* different ty)e of loans and advances, Si&th ha)ter is
*ust of (no'led*e ac%uired 0y me, ha)ter seven is a0out S;OT ANA#YSIS of "B#, ha)ter Ei*ht
tells a0out my (no'led*e 0ecause here I *ave different ty)e of Recommendation to different )ro0lems,
At last I must say that this te&t is desi*ned to stimulate the curiosity a0out mana*ement )ractices of
"ABIB BAN/ #td of :a(istan, And to raise reader2s consciousness a0out the 0an(in* system 'or(in*
in :a(istan and out side the :a(istan,
T*43' () C("$'"$
ha)ter !escri)tion :a*e
!E!IATION <<<<<<<<<<<<<<<<<<<<,
A/NO;#E!$E3ENT <<<<<<<<<<<<<<<,,,
:REFAE <<<<<<<<<<<<<<<<<<<<<<
E=ETIVE SU33ARY <<<<<<<<<<<<<<<<,
I
II
III
IV
5 INTRODUCTION
3eanin* Of Ban( <<<<<<<<<<<<<<<<<<<,
Ty)es Of Ban(<<<<<<<<<<<<<<<<<<<<,,
"istorical !evelo)ment Of Ban( <<<<<<<<<<<<<,
"istory > !evelo)ment Of "B# #td <<<<<<<<<<<,,
Values Of "B# <<<<<<<<<<<<<<<<<<<<,
$oals Of "B# <<<<<<<<<<<<<<<<<<<<,,
;hen "B# :reedy $ate Is Esta0lished <<<<<<<<<<,,,
Basic Function <<<<<<<<<<<<<<<<<<<<,
Or*ani+ational Structure Of "B# <<<<<<<<<<<<<
3em0ers Of Board Of !irectors <<<<<<<<<<<<<,,
?47
?
?
@
8
A
B
B
B
6
7
6 GENREL BANKIMG DEPARTMENT
Account O)enin* Section <<<<<<<<<<<<<<<<,
!e)osits Section <<<<<<<<<<<<<<<<<<<,,,
learin* Section <<<<<<<<<<<<<<<<<<<,,,
Remittance Section <<<<<<<<<<<<<<<<<<,,
Account Section <<<<<<<<<<<<<<<<<<<,,,
C4?C
C
?@
?8
?D
?6
7 FUNCTION OF HABIB BANK LIMITED
ommercial Ban(in* <<<<<<<<<<<<<<<<<<
or)orate Ban(in* <<<<<<<<<<<<<<<<<<,,,
Investment Ban(in* <<<<<<<<<<<<<<<<<<,
Retail Ban(in* <<<<<<<<<<<<<<<<<<<<,
Islamic Ban(in* <<<<<<<<<<<<<<<<<<<,
The 3ission Of "B# <<<<<<<<<<<<<<<<<,
@E4@6
@E
@A
@B
@B
@6
@6
8 FUNCTIONING OF HBL !HERE I DID MY INTERNSHIP
Ban( !e)osits <<<<<<<<<<<<<<<<<<<<,,
O)enin* Of Account <<<<<<<<<<<<<<<<<<
An Introduction <<<<<<<<<<<<<<<<<<<<
Account O)enin* Form > Si*nature ard <<<<<<<<<,,
Account O)enin* Re*ister <<<<<<<<<<<<<<<,,,
Issuance Of he%ue Boo( <<<<<<<<<<<<<<<<
Recordin* In To $eneral #ed*er <<<<<<<<<<<<<,
Ty)es Of Account 3aintained By "B# :reedy $ate Branch Bann
@748?
@7
@7
@7
@7
@C
@C
@C
8E
"ABIB BAN/ #I3ITE!
"A:TER 5 ?
INTRO!UTION
5.5 MEANING OF BANK:
The 'ord F0an(G has 0een derived from the French 'ord F0an%ueG or 0ancus 'hich means 0ench1
office or institution for the (ee)in*1 lendin* and e&chan*in* of money, Some authorities have the
o)inion that FBan(G is derived from the F$ermenG 'ord 0ac( 'hich to the meanin* of F9oint stoc(
fundG, The 0an( is a financial institution that 0orro's money from one )arty and lends to the other )arty
-$overnment1 individual1 0usiness. and the difference 0et'een 0orro'in* and lendin* rate of
)rofitHInterest for the 0an(, Ban( 0orro's and lends money on interest 0asis, Ban(s are classified
accordin* to their s)here of activityI the main ty)es of 0an(s are as under,
ommercial 0an(
Industrial 0an(s,
A*ricultural 0an(s,
Savin* 0an(s,
E&chan*e 0an(s,
entral 0an(s,
oo)erative 0an(s
5.5.5 COMMERCIAL BANK:
ommercial is en*a*ed in )erformin* the routine duties of 0an(in* 0usiness, Such 0an( collects the
money from the )eo)le -as 0orro'in*. and e&tends the same money as a loan for develo)ment )ur)oses,
ommercial 0an( )lays a vital role in the economic develo)ment of a country 0y )erformin* the variety
of function as *iven 0elo'J
?, Acce)tin* of de)osits -urrent1 savin* and fi&ed account.,
@, 3a(in* loans and advances -overdraft1 cash credit1 discountin* 0ill.,
"ABIB BAN/ #I3ITE!
8, A*ency services to customers -ollection of che%ues1 dividends1 electricity1 'ater and *as 0ills1
and sale of securities1 and acts as a trustee,
A, $eneral utility services -Forei*n 0usiness1 Issue traveler che%ues1
)rovidin* trade information.,

5.6 HISTORICAL DEVELOPMENT OF BANK:
"istory of 0an( is very oldI the history of 0an( is traced to as early as @EEE B,, The )riest in $reece
used to (ee) money and valua0le of the )eo)le in tem)les, Its ori*in is also traced to early *oldsmiths,
They used to (ee) stron* safe1 for storin* the money and other valua0le of the )eo)le, :eo)le 'ith
sur)lus money de)osited 'ith them, The first sta*e in the develo)ment of 0an(in* 'as the acce)tance of
de)osits from )eo)le,
#ater on *oldsmiths 0e*an to issue recei)ts for the money de)osited 'ith them to settle transactions,
These recei)ts 'ere used in )ayment of de0t and acce)ta0le to all, This 'as the second sta*e to'ards
the develo)ment of 0an(in*,
;hen *oldsmiths reali+ed that they had sur)lus money therefore they intended to lend some )ortion of
money to he nearly traders and merchants 'ho constantly re%uested for loans This 0usiness 'as %uiet
)rofita0le and they instead of char*in* interest from de)ositors 0e*an to *ive interest on the money
de)osited 'ith them to attract more )eo)le this 'as the third sta*e to'ards the develo)ment of 0an(in*,
They also )lanned to allo' the customers to 'ithdra' in e&cess of the amount de)osited to meet the
customer2s needs, This facility is called overdraft and they used to (ee) some )ortion of money for this
)ur)ose, After some time there 'as then started too much confusion in the 0an(in* system and they
'ere not a0le to meet the demands of customers, This failure on the )art of money lender to return
money caused distress
amon* the )eo)le,
To overcome this )ro0lem )eo)le felt that their must 0e a 0an( 'hich control the 0an(in* activities of
different lendin* or*ani+ation, As a result of conference held in ?BA7 at
"ABIB BAN/ #I3ITE!
Nurem0er*, The decision 'as ta(en in favor of esta0lishin* a 0an( that re*ulates the 0an(in* activities,
The first 0an( 'as found in $eneva in ?B76, #ater on many other 0an(s 'ere esta0lished 'ill the same
o09ective,
;e can conclude that commercial 0an(in* system actually develo)ed in nineteenth century, No' a days
the 0an(in* activities has *reatly increased commercial 0an(s are no' multi serviced or*ani+ations and
)lay an im)ortant role in financial mar(ets and in the economic develo)ment of the country,
5.7 HISTORY AND DEVELOPMENT OF HBL:
The "a0i0 Ban( #td is a leader in :a(istanKs services industry, An e&tensive net'or( of ?A@B domestic
0ranches L the lar*est in :a(istan and BB international 0ranches has ena0led "B# to )rovide
com)rehensive services that meet customer needs, This has ensured thrivin* client relationshi)s that
form the 0ac(0one of the Ban(Ks o)eration,
Today1 "B# )lays a central role in :a(istanKs financial and economic develo)ment, It has come a lon*
'ay from its modest 0e*innin*s in 3um0y on Au*ust @B1 ?CA? 'hen it commenced o)erations 'ith a
fi&ed ca)ital of @B1EEE ru)ees,
Im)ressed 0y its initial )erformance1 Muaid4e4A+am 3ohammed Ali Ninnah as(ed the Ban( to move its
o)erations to /arachi after the creation of :a(istan, "B# esta0lished itself in the Muid2s city on Au*ust
61 ?CA7 and 0ecame a sym0ol of )ride and )ro*ress for the )eo)le of :a(istan,
"a0i0 Ban( has 0een a )ioneer in )rovidin* innovative 0an(in* services, These have included the
installation of the first mainframe com)uter in :a(istan follo'ed 0y the first AT3 and more recently1
internet 0an(in* facilities in almost ?A@B domestic 0ranches,
The Ban(Ks to'erin* )resence in :a(istanKs financial and commercial life has remained unchan*ed over
the decades, The stren*th of its 0rand and ima*e is sym0oli+ed 0y its )rominent "ead Office 0uildin*
that has dominated /arachiKs s(yline for8BYears,
"ABIB BAN/ #I3ITE!
As )er "B# 3ana*ement result 'e continue to 0uild on our trac( record and in our %uest for e&cellence
'e strive to meet the needs of 0oth our customers and our em)loyees, At "a0i0 Ban( 'e aim to ensure
customer satisfaction 0y )rovidin* hi*h %uality 0an(in* services, This is made )ossi0le 0y the
)rofessionalism of our em)loyees all of 'hom are
)rovided 'ith the re%uisite trainin* and o))ortunities to ena0le them to reali+e their full )otential,
5.8 VALUES OF HBL:
I"$'+/%$0:
For us1 inte*rity means a syner*ic a))roach to'ards a0idin* our core values, United 'ith the
force of shared values and inte*rity1 'e form a net'or( of a 'ell4inte*rated team,
M'/%$(-/*-0:
At every level1 from selection to advancement1 'e have desi*ned a consistent system of human
resource )ractices1 0ased on o09ective criteria throu*hout all the layers of the or*ani+ation, ;e
are1 therefore1 a0le to achieve a s)ecific level of )erformance at every layer of the or*ani+ation,
T'*, !(/9:
Our team strives to 0ecome a cohesive and unified force1 to offer you1 the customer1 a level of
service 0eyond your e&)ectations, This force is derived from )artici)ative and collective
endeavors1 a common set of *oals and a s)irit to share the *lory and the stren*th to face failures
to*ether,
C&3$&/' () I""(.*$%(":
'e aim to 0e )roactively res)onsive to ne' ideas1 and to res)ect and re'ard the a*ents1 leaders
and creators of chan*e,
"ABIB BAN/ #I3ITE!
5.: GOALS OF HBL:
?, To mo0ili+e )rivate savin*s and )u0lic funds for divertin* the same into )roductive channels
and ensure their availa0ility, To )romote industrial a*riculture and socioeconomic )rocess
throu*h the active )artici)ation of )rivate and )u0lic sector in the )rovince,
@, "el) under develo)ed areas and create em)loyment o))ortunities1 es)ecially in the rural areas of
the )rovince, Further1 to *uide and assist the )eo)le of :a(istan servin* overseas to effectively
and )rofita0ly invest their forei*n savin*s in the )rovince as 'ell as in other )arts of :a(istan,
8, reate a diversified and sound )ortfolio for utili+ation of idle funds and their investment in the
e&istin* and ne' ventures es)ecially in the )ioneerin* of hi*h4techs a*ro40ased e&)ort oriented
and en*ineerin* )ro9ect to ensure ma&imum returns,
A, :artici)ative and see( the share of the country in the ca)ital mar(et of :a(istan 0y 'ay of
su0scri)tion throu*h locally )eo)led resources in the leadin* stoc( e&chan*e of the country and
eventually )avin* the 'ay for esta0lishin* a stoc( mar(et in the )rovince,
5.; !HEN HBL PREEDY GATE IS ESTABLISHED:
This Branch 'as esta0lished on 3ay ?E1 ?CB@ to facilitate t'o *iant Business community and inha0itant
of "B# -BANNU. Branch1 0esides )rovidin* series of *eneral 0an(in* to the citi+ens and near0y areas,
urrently it an on4line 0an(,
5.< BASIC FUNCTIONS:
5.<.5: A--'=$%"+ () 1'=(#%$#:
a, urrent account 0, Savin* account c, Fi&ed de)osit account
5.<.6: A1.*"-%"+ () 3(*"#:
a, #oans and advances 0, ash credits c, :rovision of Mar+e4e4"asna
5.<.7: A+'"-0 )&"-$%("#:
ollection of che%ues
Transfer of funds from one )lace to another,
"ABIB BAN/ #I3ITE!
"andlin* of Salaries and :ensions of federalH)rovincial em)loyees and defense )ersonnel,
Assistin* to A*riculture
Act as an a*ent or re)resentative of his customers
ollection of Ne*otia0le Instruments
Issuin* $uarantees and Indemnities
$rantin* of letter of credit
5.<.8. G'"'/*3 &$%3%$0 #'/.%-'#:
Utility Bills collection
Sale and encashment of :ri+e Bonds
Issue of Travelers he%ues
Su))lyin* of Trade information
Act as a referee
Financin* of Forei*n E&chan*e
:re)aration of feasi0ility re)orts for small industrial units
ollection of fees and money for )eo)le )roceedin* on F"a99G )rovidin* )il*rima*e services
"ABIB BAN/ #I3ITE!
ORGANI>ATIONAL STRUCTURE OF HABIB BANK LIMITED
PRESIDENT AND CEO
< MEMBERS OF BOARD OF DIRECTORS
G.E, IOBG G.E, CPOD G.E, CPCS G.E, RBG G.E, CIBG G.E, ARM G.E, AGA HEAD OF IT
HEAD OF HR HEAD OF FINANCE
SENIOR VICE PRESIDENTS
VICE PRESIDENTS
ASSISTANT VICE PRESIDENTS
GRADE I OFFICERS
GRADE II OFFICERS
GRADE III OFFICERS
CLERICAL STAFF
NON-CLERICAL STAFF
"ABIB BAN/ #I3ITE!
M',4'/# () B(*/1 () D%/'-$(/#:
$,E $ROU: E=EUTIVE
IOB$ INTERNATIONA# AN! OVERSEAS BAN/IN$ $ROU:
:O! OR:ORATE :#ANNIN$ AN! OR$ANIOATIONA# !EVE#O:3ENT
:S RE!IT :O#IY AN! O3:ANY SERETARY
RB$ RETAI# BAN/IN$ $ROU:
IB$ OR:ORATE AN! INSTITUTIONA# BAN/IN$ $ROU:
AR3 ASSETS RE3E!IA# 3ANA$E3ENT
A$A AU!IT AN! $ENERA# INFOR3ATION
"ABIB BAN/ #I3ITE!
"A:TER5@
$ENERA# BAN/IN$ !E:ART3ENT
This de)artment consists of the follo'in* sectionsJ4
@,? Account o)enin* section,
@,@ !e)osit section,
@,8 learin* section,
@,A Remittance section,
@,B Accounts section,
6.5 ACCOUNT OPENING SECTION:
6.5.5 HO! TO OPEN AN ACCOUNT:
There are certain formalities 'hich are to 0e o0served for o)enin* of a current or savin* account 'ith a
Ban(, These formalities in 0rief are as under,
6.5.5.5 FORMAL APPLICATION:
The customer is to fill PAccount O)enin* Form, It is a formal re%uest 0y a
customer to the 0an( to allo' him to have and o)erate the current or savin* account,
6.5.5.6 SPECIMEN SIGNATURE:
;hen the Ban(er is satisfied a0out the inte*rity of the customer1 he a*rees to o)en the account, The
Ban(er o0tains the s)ecimen si*natures of the customer on the si*nature 0oo( or on card,
6.5.5.7 MINIMUM INITIAL DEPOSIT:
In :a(istan the current account can 0e o)ened 'ith a minimum of Rs, BEEEH4 and :#S Savin* Account
'ith a minimum of Rs ?EEEH4 These amounts are also the minimum 0alances to 0e maintained 0y the
account holders 'ith the Ban(,
"ABIB BAN/ #I3ITE!
6.5.5.8 OPERATING THE ACCOUNT:
;hen an account is o)ened in a Ban(1 the Ban(er *ives to the customer,
i, :ay in sli) 0oo(,
ii, he%ue Boo( and )ass 0oo( 'ith a vie' to o)erate it,
6.5.5.: PRECAUTIONS IN PREPARING THE PASS BOOK:
The Ban(er should 0e careful in )re)arin* the )ass 0oo(
"o'ever1 the customer himself should,
i, Send the )ass 0oo( for ma(in* entries and also )eriodically chec( u) them,
ii, "e should also see that the entries are initialed 0y the accountant,
iii, The customer should verify the entries 'ith o'n 0oo(s of account,
iv, In order to safe *uard the secrecy of the accountI the customer should receive the )ass 0oo( in
closed cover,
N($'J This :ractice in the )ast,
No'4a4!ays these information can 0e o0tained 0y )eriodic or a re%uest or account,
6.5.6 !ITH-DRA!L:
;ithdra'al is made on che%ues su))lied 0y the Ban(, A ne' che%ue 0oo( is issued only on recei)ts of
the re%uisition sli) attached to the che%ue 0oo( issued )reviously,
6.5.7 INTEREST:
The current rate of interest allo'ed on de)osit in savin* Ban( account is ascertained at the Ban(, This
rate is su09ect to chan*e, The amount of interest is calculated for each calendar month on the lo'est
0alance at credit of an account 0et'een the close of the ?st day of a month and the end of the month and
only on every com)lete sum of ten ru)ees,
Every account is made u) half yearly to 8Eth Nune 8?st !ecem0er1 and the interest calculated as a0ove is
added to the 0alance of each account as on these dates,
"ABIB BAN/ #I3ITE!
6.5.8 TRANSFER OF AN ACCOUNT:
Account can 0e transferred to any other 0ranches of "B#, free of char*e, If a de)ositor 'ants to transfer
his account1 he )resents his )ass 0oo( )ersonally or sends it to Ban( and 'rites an a))lication for the
transfer of an account,
6.5.: CLOSING OF AN ACCOUNT:
It is done sim)ly on letter or re%uest for closin* the account1 unused che%ue leaves on hand are also
surrendered at the same time,
6.5.; SECRECY:
The secrecy of de)ositor2s account is the, Res)onsi0ility of every official
en*a*ed in the Ban( service,
6.5.< TYPES OF BANK ACCOUNT:
6.5.<.5 SAVING ACCOUNT:
Savin* Account is that account in 'hich customer )uts his sur)lus money 'hich he saves from his daily
e&)enditure,
The account can 0e o)erated 0y de)ositin* a minimum cash of Rs, ?EEEH4, Small )ercenta*e of interest
is allo'ed on the 0alance of this account,
6.5.<.6 CURRENT ACCOUNT:
The current account is that one 'hich the customer dra's his daily che%ues and is normally o)erated 0y
the Business4men, It can 0e o)erated 0y minimum amount of Rs, BEEEH4 Any num0er of che%ue can 0e
issued 0y the account holder for 'ithdra'al or for )ayment, No interest is allo'ed on this account,
6.5.<.7 OINT ACCOUNT:
A 9oint account occurs 'hen t'o or more than t'o customers have one
account, The )arties to a 9oint account are considered in la' as they are one )erson,
"ABIB BAN/ #I3ITE!
6.5.<.8 PROFIT AND LOSS SHARING ACCOUNT.
This can 0e o)erated 0y a )erson1 firm or or*ani+ation 0y de)ositin* Rs, ?EEEH4 or a0ove, The holder of
this account 'ill *et )rofit of his amount1 or he 'ill 0ear the loss as the case may 0e, So an individual is
e%ually )artici)ant in )rofit and loss,
The holder of account can 'ithdra' u) to Rs,?B1EEEH4 )er month1 in case of hi*her 'ithdra'al1 seven
day )rior notice is necessary1 0ut in )ractice have not seen it, This account is o)erated under interest free
system,
6.5.<.: FIXED DEPOSIT ACCOUNT.
In this account an amount is de)osited into the Ban( for a fi&ed )eriod of time, The fi&ed )eriod may 0e
three months1 si& months1 one year1 t'o years1 five years and more, The Ban( allo's a hi*her rate of
interest for lar*er )eriod,
At the time of o)eratin* on account the Ban( issues de)osit certificates for the )eriod and amount, The
account holder can 'ithdra' his amount 0efore the s)ecified )eriod1 0ut refundin* the e&cess )rofit )aid
at hi*her rate and the same Ban( 'ill allo' loan a*ainst that certificate, Ban( is lia0le to *ive interest on
this account on maturity date is monthly or %uarterly or si& month,

6.6 DEPOSITS SECTION:
There are t'o ty)es of de)osits i,e, current and savin*, There are different
forms )resent in the section of or de)osits,
i, urrent account form,
ii Savin* account form,
iii :rivate or individual form
iv :rivate firm account form
In the a0ove mentioned forms1 the 0an( ma(es an a*reement 'ith his customers,
"ABIB BAN/ #I3ITE!
6.7 CLEARING SECTION:
Every Ban( )erforms the )ayin* and receivin* functions, he%ues are
collected 'hich are dra'n u) to Ban(s for customers, Similarly the che%ues dra'n on different Ban(s
and de)osited 0y Ban(s o'n customers for collection 'ithin the city is (no' as clearin* The functions
of receivin* and )ayin* is mostly done throu*h the clearin* house, A clearin* house can 0e defined as
PAA )lace 'here that re)resentatives of all Ban( *et to*ether to settle the recei)ts and )ayment of
che%ues dra'n on each otherP learin* "ouse )rovides the facility 'hich can hardly 0e dis)ensed 'ith
es)ecially1 in case of crossed che%ues,
There are t'o main ty)es of clearin*,
i Out'ard clearin*
ii In'ard clearin*,
6.7.5 OUT!ARD CLEARING:
It includes those che%ues and other instruments 'hich are sent 0y the Ban( to the Ban(s for )ayment on
0ehalf of its o'n clients, he%ues are sent to clearin* house thorou*h local main 0ranch,
A delivery messa*e from the local main 0ranch comes to every 0ranch at a fi&ed time to )ic( its out'ard
clearin* or out'ard returns as the case may0e,
Out'ard learin* at Branch
a, Account num0er of )ayeeHendorsee is 'ritten on the 0ac( side of the che%ues,
0, The instrument and the )ayin* in sli)s are se)arated,
c, The instruments are sorted I Ban(4'ise and 0ranch 'ise,
d, Schedules are )re)ared,
e, Nottin* of all the schedules are ta(en in the clearin* "ouse statement, Amount of the che%ues
in 'ritten in the P!eliveredP and to )ay column,
"ABIB BAN/ #I3ITE!
f, After 0alancin* the out'ard clearin*1 the )ay in sli)s are released to ,! de)artment,
*, After 0alancin*1 a transfer de0it voucher is )re)ared,
h, The instrument1 schedules are delivered to the messen*er from the main 0ranch,
6.7.6 IN!ARD CLEARING.
The che%ues dra'n are called in'ard clearin* dra'n on "a0i0 Ban( throu*h its re)resentatives, On the
Ban( )resented 0y other Ban(s for )ayment it includes those che%ues and other instruments of :a(istan
0ranches 'hich other Ban(s )resent at the clearin* house,
In'ard learin* at the !ra'n Branch
a, Num0ers of instruments noted in the schedules are verified immediately on recei)t,
0, The amountKs of all the instruments are 9otted do'n and totaled, If should 0e e%ual to
the amount mentioned in schedule from the local main 0ranch,
c, The amounts are de0arred to the relevant accounts if other'ise in order,
6.7.7 TYPES OF CHEQUES COLLECTED BY CLEARING SECTION:
6.7.7.5 TRANSFER CHEQUES:
These are the che%ues 'hich are collected and )aid 0y same 0ranch of "B# For e&am)le 3r, Ali is a
customer of "B# of ITY 0ranch and dra's a che%ue in favor of 3r, "ussain 'ho is also the customer
of the same 0ranch,
6.7.7.6 TRANSFER DELIVERY CHEQUES:
The che%ues 'hich are collected and )aid 0y t'o different 0ranches of a Ban( situated in the same city,
For e&am)le a )erson dra's a che%ue on N,B,:, main 0ranch1 !,I,/han in favor of another )erson 'ho
maintains an account 'ith N,B,:, Ra(h 3andra 0ranch1 !,I,/han,
"ABIB BAN/ #I3ITE!
6.7.7.7 CLEARING CHEQUES:
;hen the )ayeeHendorse and the dra'er of che%ue maintains account 'ith
different Ban(s1 the collection Ban( in any one of the follo'in* methodsJ4
a, It can collect cash 0y sendin* its re)resentative 'ith the che%ues to each of the )ayin* Ban(s,
It is not so much a))ro)riate,
0, The Ban( maintains an account 'ith the )ayin* Ban(,
c, The che%ues can 0e e&chan*ed 0y re)resentative of the various Ban(s 'ho meet at a fi&ed
time and at a fi&ed )lace, This is the most efficient method of collection and )ayin* che%ues,
6.7.8 FUNCTIONS OF CLEARING SECTION IN A BRANCH:
a, To acce)t transfer1 transfer delivery and clearin* che%ues from the customer of the 0ranch and
to arran*e for their collection,
0, To arran*e )ayment of che%ues dra'n on the 0ranch and *ives for collection to any other
0ranch of ",B,#, or any other mem0er or such mem0er of local clearin* house,
c, To collect amounts of che%ues dra'n on mem0ers of the local clearin* house sent for
collection 0y N,B,:, 0ranches not re)resented at the local clearin* house,
6.7.: PROCEDURE FOR CLEARANCE OF CHEQUE:
The customers are )rovided 'ith the co)es of )ay In4sli)1 'henever the customer 'ants to de)osit any
che%ue1 he fills in the )ay in sli) himself and hands it over the counter alon* 'ith the instrument,
"ABIB BAN/ #I3ITE!
6.8 REMITTANCE SECTION:
Remittance means transfer of money from one )lace to another )lace, It is of
t'o (inds,
IJ Inland remittance,
IIJ "ome remittance,
6.8.5 INLAND REMITTANCE.
An inland remittance means a transfer of money )aya0le at a certain )lace 'ithin the country, Inland
remittances can 0e classified as underJ4
IJ ;ithin locality,
IIJ Out side locality,
6.8.5.5 !ITHIN LOCALITY:
;hen a 0ranch situated in !,I,/han is re%uired to send drafts to any other 0ranch situated in the same
city the )rocess is (no' as 'ithin locality, For e&am)le "B#, 3ain Branch1 !,I,/han sends any draft to
"B#, Ra(h 3andar 0ranch1 !,I,/han,
6.8.5.6 OUTSIDE LOCALITY:
Outside locality is an im)ortant ty)e of inland remittances1 'hich means the transfer of money )aya0le
outside the city, For e&am)le1 "B#, 3ain Branch !,I,/han sends any draft to a Branch situated at
#A"ORE,
It is commonly done throu*h the follo'in* meansJ4
!emand !raft -!, !.
DEMAND DRAFT (D.D):
!emand draft is a 'ritten order 0y a 0ranch of a s)ecified Ban(1 dra'n on another 0ranch of the same
Ban( to )ay a certain sum of money only to or to the order of the :ayee, !emand drafts are )urchased
0y the clients and after recei)t of money Ban( issues and delivers the !,!, to the )urchaser1 'ho
himself sends it to the )ayee, In !,!, the Ban(s
"ABIB BAN/ #I3ITE!
do not recover )ostal char*es as it is )aya0le 0y the )urchaser, The Ban(1 after deliver of !,!, to the
)urchaser also sends its o'n advice called IBO -Inter Branch redit Order. to the dra'ee 0ranch
mentionin* therein all details of issued draft, No' 0an(er che%ue )aya0le any 'here in :a(istan,
6.: ACCOUNT SECTION:
Every Business or*ani+ation deals in money matters, Ban( also deals in money and more over since the
money 0elon* to the de)ositors therefore1 it is of utmost im)ortance to (ee) systematic and correct
record,
Further4more1 the Ban(s are commercial institutions and its main o09ective is to earn )rofit1 therefore1
then record of all incomes and e&)enditures are (e)t correct and systematically,
In ",B,#, the res)onsi0ility for maintainin* necessary accountin* data and to (ee) u) to date records In
a systematic manner has 0een assi*ned to the Accounts !e)artment,
The Branches of Ban( )erform their daily routine 'or( and deal in money that 0elon*s to de)ositors,
"ere account de)artment hold *reat im)ortance in 0an(in*1 0ecause it (ee)s all the accountin* records
)ro)erly,
6.:.5 ACCOUNTS TERMS:
The account de)artment maintains all the accountin* records )ro)erly there
are certain accountin* terms 'hich are defined into the follo'in*,
6.:.5.5 ACCOUNT:
A summary of all de0it and credit transaction )ertainin* to a similar nature or to
an individual or 0ody of )ersons is called an account,
6.:.5.6 VOUCHERS:
;ritten evidence recorded on a )eace of )a)er in res)ect of money transaction is called voucher,
"ABIB BAN/ #I3ITE!
6.:.5.7 GENERAL LEDGER:
3ain led*er is a 0oo(1 'here various accounts of different ty)e are (e)t,
$enerally this 0oo( is in 0ended form containin* several sheets for several accounts,
6.:.5.8 SUBSIDIARY LEDGER:
;here a main head has *ot different su04head of itJ su0sidiary leader are
maintained, These su0sidiary led*ers are maintained from the main led*er,
6.:.6 BOOKS AND STATIONERY:
The account de)artment uses the follo'in* 0oo(s and stationery
ash 0oo( cum4*eneral led*er
Re*ister of vouchers
Transfer 0oo(
Receivin* cashier 0oo(
:ayin* cashier 0oo(
Su))lementary sheets
!ifferent vouchers
6.:.7 FUNCTIONS OF THE ACCOUNT SECTION:
!urin* the course of daily 0usiness of the 0ranch1 a num0er of che%ues are )resented 0y customer for
cash )ayment1 thou*h transfer1 delivery and clearin* che%ues at the counter, Also a num0er of ne'
accounts are o)ened and cash is de)osited 0y the customers, A num0er of ne' vouchers are )assed 0y
the 0ranch 0y de0itin*1 one account and creditin* another account,
So in order to ensure that durin* the day all the transactions have )ro)erly 0een recorded and they are
com)lete in all res)ects and are recorded in )ro)er 0oo(s 0y the 0ranch this recordin* is done on daily
0asis and maintained 0y account section,
The main functions of the account section of a 0ranch are as follo's,
"ABIB BAN/ #I3ITE!
6.:.7.5 BALANCING AND MAINTAINING OF BOOKS:
Balancin* the cash 0oo( means that all the transactions have )ro)erly 0een
recorded and there is no mista(e in any of these vouchers,
?, Arran*ement of voucher,
@, :re)aration of NR,
8, :re)aration of summary,
A, A*reement of total of the summary1 'ith the total of transfer 0oo( 0ranch NR,
6.:.7.6 PREPARATION OF STATEMENTS:
To Nud*e the )erformance of 0ranches1 the "ead Office re%uires )eriodic statements from them,
Throu*h these statements the to) mana*ement 'atches the )ro*ress of the 0ranches and they )rovide
them necessary *uidance,
"ABIB BAN/ #I3ITE!
"A:TER5 8
7.5 FUNCTIONS OF HABIB BANK LIMITED
To fulfill the 0asic o09ective that is of socio4economic nature "B# )erform follo'in* im)ortant
functions,
ommercial Ban(in*
or)orate Ban(in*
Investment Ban(in*
Retail Ban(in*
Islamic Ban(in*
7.5.5 COMMERCIAL BANKING:
Enter)rises o)eratin* in the middle mar(et contri0ute si*nificantly to the economy of a country,
Traditionally1 this sector 'as the stron*hold of "B#2s 0usiness, !urin* the early CEs1 'ith the
li0erali+ation of the financial sector in :a(istan1 com)etition in the industry stiffened due to the
emer*ence of ne' 0an(s in the )rivate sector, The senior mana*ement at most of these 0an(s com)rised
)ersonnel from "B#,
They not only (ne' the mar(et 0ut 'ere also familiar 'ith the shortcomin*s of "B#, Under the ne'
set4u)1 they 'ere a0le to address these shortcomin*s and 0e*an to tar*et "B#2s customer 0ase, ;ith the
ince)tion of an alternative1 "B# customers started mi*ratin* to the ne'ly esta0lished 0an(s this causin*
the erosion of "B#2s mar(et
share, !urin* FY4@EEE "B#2s mana*ement decided to address this issue, "ence forth1 ommercial
Ban(in* 'as created to focus on the 0usiness needs of the middle mar(et customers, On Novem0er ?1
@EEE ommercial Ban(in* came into 0ein*, At )resent1 ?7 ommercial enters and Su04enters
functionin*1 located at /arachi1 #ahore1 Faisala0ad1 Sial(ot and $u9ran'ala,
"ABIB BAN/ #I3ITE!
G(*3#:
The $oals of settin*4u) ommercial Ban(in* 'as t'o4foldJ
First to sto) the erosion of mar(et share in the middle mar(etI
Second1 to re*ain the lost mar(et share
The strate*y ado)ted to achieve the a0ove o09ective 'as to )osition ommercial Ban(in* se*ment as
the FTrade Finance Ban(G for its customers, The rationale 0ehind this strate*ic decision 'as to ca)itali+e
on the e&istin* mar(etin* (no'led*e > stron* contacts 'ith the middle mar(et customers1 'ho 'ere
loyal to the "B# 0rand,
The )roduct line of ommercial 0an(in* includesJ
7.5.5.5 FUND BASED FACILITIES:
Runnin* Finance for ;or(in* a)ital re%uirements -RF.
Finance A*ainst :ac(in* redit for :re4shi)ment -FA:.
Finance A*ainst Forei*n Bills for :ost4shi)ment -FAFB.
Finance A*ainst Im)orted 3erchandise -FI3.
Finance A*ainst Trust Recei)t -FATR.
!emand FinanceJ 3edium Term #oans -!F.
7.5.5.6 NON-FUND BASED FACILITIES:
#etter of redit -#.
-a. !A -Unseen. -0. !: -Si*ht.
#etter of $uarantee -#$.
Successful achievement of the strate*y entailed addressin* the follo'in* (ey issuesJ
!evelo)in* a sales culture so that 0usiness 'as a**ressively sou*ht
Im)rovement of ounter Service
Reducin* the turnaround time on credit decisions
"ABIB BAN/ #I3ITE!
Trainin* of staff to enhance credit and sales s(ills
Follo'in* initiatives 'ere ta(en to address the a0ove issuesJ
Fictionali+ation of 0ranches into t'o (ey areasJ
3ar(etin*I and
O)erations
Im)lementation of a standard or*ani+ation at enters > su04centers 'here 0y there 'ere t'o (ey areas
'ithin o)erationsJ
Trade
ounter Service i,e, ash > Remittances
!e4layerin* of the redit )rocessin* to ensure %uic( turnaround on credit decisions
Settin* u) of Relationshi) 3ana*ement teams at all ommercial Ban(in* enters to focus on
)rocurement of 0usiness
Settin*4u) of redit Administration !e)artments at all enters for im)roved Ris( 3ana*ement
Trainin* of staff in follo'in* (ey areasJ
-a. redit -0. Trade Services Q om)uter literacy
I,=*-$ () $2' #$'=#
The decision to setu) ommercial Ban(in* has 0een fruitful, This is evident from the follo'in* resultsJ
Enhanced customer interaction 0y the 0ranch mana*ement has no' 0ecome )ossi0le after
se*re*ation of mar(etin* and o)erations at the 0ranch level,
"ABIB BAN/ #I3ITE!
!ecentrali+ation of redit Authority and streamlinin* of the )rocesses have resulted in reduced
turn around time, urrently decision ma(in* in this area is )erha)s most efficient in the mar(et
)lace,
Our strate*y has allo'ed us to achieve our first o09ectiveI the trend of
erosion in our mar(et share has 0een reversed, ;e no' 'ould 0e
loo(in* at re*ainin* our mar(et share,
ommercial Ban(in* is ma(in* head'ay 'ith im)rovement not only in terms of the 0usiness fi*ures 0ut
also in its am0iance, Renovation of is 0ein* carried out in order to *ive a )rofessional loo( to all the
ommercial Ban(in* enters,
"ABIB BAN/ #I3ITE!
7.5.6 CORPORATE BANKING:
or)orate Ban(in* $rou) serves lar*e institutional and cor)orate customers in :a(istan throu*h ?E
dedicated cor)orate 0an(in* centers in all ma9or cities, The IB$ )ortfolio consists of most of the
lar*est names in the mar(et and re)resents all ma9or industry *rou)s1 includin* te&tiles1 lar*e scale
manufacturin*1 telecommunications1 )etrochemicals1 fertili+er1 airlines1 trans)ortation and services, It
offers its clients a com)rehensive ran*e of 0an(in* services via a one4'indo' interface throu*h
desi*nated relationshi) mana*er, or)orate Ban(in* is reco*ni+ed as a mar(et leader due to its uni%ue
a0ility to meet the entire s)ectrum of a customer2s 0an(in* re%uirements, "B#2s lar*e e%uity 0ase
allo's to meet the financin* needs of the lar*est cor)orate and it2s lar*e net'or( and s)eciali+ed teams
are a0le to deliver and )rovide customi+ed solutions, The $rou) has increasin*ly focused on )rovidin*
value addition services to the customers1 e,*, )ayroll and cash mana*ement services, The Ban( has
0ecome a leader in cash mana*ement services 0y levera*in* its lar*e domestic 0ranch net'or( and no'
)rovides such services to a ran*e of lar*e and medium si+ed cor)orations1 includin* the :a(istani units
of some Fortune BEE,com)anies,
The $rou) also strives to stay ahead of the mar(et 0y antici)atin* customer
re%uirements, ;e stron*ly 0elieve in relationshi) 0an(in*1 'hich is essential for us to remain res)onsive
to our customers, ;e also remain focused on im)rovin* )roductivity and ensurin* the %uality of our ris(
mana*ement,
"ABIB BAN/ #I3ITE!
7.5.7 INVESTMENT BANKING:
An Investment Ban(in* Unit has 0een esta0lished 'hich focuses on loan syndications1 develo)ment of
local currency cor)orate 0onds -TFs. and advisory services,
7.5.8 RETAIL BANKING:
The Retail Ban(in* net'or(1 'ith ?A@B 0ranches1 is the core stren*th of "a0i0 Ban(, Its e&tensive reach
in all *eo*ra)hic locations L ur0an and rural L throu*hout the country )rovides access to over B 3illion
customers across all sectors of the economy, The net'or( )rovides "B# 'ith the lar*est diversified lo'
cost de)osit 0ase of any 0an( in :a(istan1 and forms the 0asis for many of its other 0usiness linesJ
cor)orate and investment 0an(in* and treasury activities,
Retail Ban(in* $rou) -RB$. has t'o )rinci)al areas of activityI
The retail net'or( for de)osit mo0ili+ation
The consumer40an(in* *rou),
"B# is the only ma9or 0an( to have a very dedicated *rou) to serve the Small > 3edium Enter)rises
-S3E. sector, "B# 0elieves that the S3E sector can 0e an en*ine of *ro'th for the economy and
re)resents an area of o))ortunity for the Ban(, RB$ 'as therefore esta0lished in late @EEE to )rovide
0an(in* services and credit on a structured and systemi+ed 0asis, It no' covers @B 0ranches in the si&
ma9or industrial cities of :a(istan, The $rou) no' 'or(s closely 'ith its customers1 'hich cover all
se*ments of the economy includin* the te&tile sector1 vendors and su))liers to structure the finances and
im)rove their ca)a0ilities, ;e have 0een very encoura*ed 0y the outcome that reaffirms its 0elief in the
)otential of this sector,
There is a *ro'in* )ro)ensity for consumer s)endin* to u)lift livin* standards,
Reco*ni+in* that consumer demand can 0e a ma9or driver of investment and
economic *ro'th1 the $overnment has also moved to'ards an ena0lin* re*ulatory frame'or( and has
also ta(en initiatives to create an a))ro)riate le*al re*ulatory
"ABIB BAN/ #I3ITE!
frame'or( to ena0le the develo)ment of a housin* finance mar(et, ;ith its e&tensive 0ranch net'or(
and lar*e customer 0ase1 "B# has an im)ortant role to )lay in the develo)ment of this sector of the
economy in 'hich it e&)ects su0stantial *ro'th in the ne&t five years,
"B# has moved a**ressively and has already introduced three ma9or )roductsI
:ersonal #oans1
ar Financin*
onsumer !ura0le Financin*
in association 'ith ma9or su))liers of consumer )roducts, These have 0een 'ell received and volumes
have 0een 0uildin* u) steadily, It is the
intention of "B# to 0e a leader in consumer financin*, :lans are also
under'ay to develo) mort*a*e financin* for the housin* sector,
A*riculture is the most im)ortant contri0utor to :a(istan2s economy, "B#1 'hich has 0een a leader in
a*riculture financin*1 )lans to increase further its credit to this sector 'ith a )articular focus on
)rovidin* a 'ider ran*e of )roducts to small and medium si+e farmers, In this re*ard1 to )rovide
fle&i0ility1 the "aryali scheme for farmers 'as
introduced 'hich is a 84year revolvin* facility rather than the traditional short term seasonal financin*,
"B#2s s)eciali+ed a*ricultural finance de)artment hel)s farmers in moderni+in* their farmin*
techni%ues, The $overnment has also )rovided a re*ulatory frame'or( to encoura*e cor)orate farmin*
and as this develo)s the )artici)ation in this sector, ;ill *ro' even further, ;hile "B# continue to
develo) its )roducts1 'e reco*ni+e that %uality of customer service 'ill 0ecome an even *reater
differentiatin* factor in the mar(et, "B# have ta(en a num0er of initiatives in this areaI investin* in
technolo*y1 trainin* and u)*radin* of its 0ranches, E&tended 0an(in* hours and 0etter facilities for
utility 0ill )ayments have 0een made availa0le,
"ABIB BAN/ #I3ITE!
In our Retail net'or(1 'e have an unmatched distri0ution net'or(1 'hich )rovides us many
o))ortunities for *ro'th1 and 'e )lan to use this to soon )rovide additional services1 includin* 'ealth
mana*ement services,
7.5.: ISLAMIC BANKING:
The Ban( of /hy0er has ta(en the first ste) to'ards Islamic 0an(in* and for this )ur)ose an Islamic
0an(in* division has 0een esta0lished to com)lete the necessary re*ulatory and o)erational formalities
there0y )avin* the 'ay for commencement of Islamic Ban(in* in its s)eciali+ed 0ranches,

7.6 THE MISSION OF HBL:
To 0e reco*ni+ed as the leadin* financial institution of :a(istan and a dynamic international 0an( in the
emer*in* mar(ets1 )rovidin* our customers 'ith a )remium set of innovative )roducts and services1 and
*rantin* su)erior value to our sta(eholders L shareholders1 customers and em)loyees,
"ABIB BAN/ #I3ITE!
"A:TER 5 A
FUNTIONIN$ OF "B# 'here I did my internshi)J
HBL 4*"9 %# )&"-$%("%"+ &"1'/ )(33(?%"+ #'$ &=:
8.5 BANK DEPOSITS:
!e)osits are to the 0an( as a 0ac(0one is to the 0ody of a man, They are the life0lood of the 0an(,
"ABIB BAN/ #I3ITE! and all other commercial 0an(s )erform the function of de)osit acce)tin*
from the *eneral )u0lic 0y offerin* suita0le rates of interest on them1 or on sim)ly a )romise to re)ay on
demand,
8.6 OPENING OF ACCOUNT BY AN INDIVIDUAL:
After enterin* into 0an( )remises the )erson *oes throu*h the follo'in* ste)s for o)enin* an account in
the 0an( and for 0ecomin* a 0an( customer,
8.6.5 AN INTRODUCTION:
The first im)ortant ste) to ta(e )lace in 0an( is to *et satisfactory introduction of the )erson1 'ho 'ants
to 0ecome 0an(2s customer 0y )uttin* various %uestions,
In "B# -:reedy $ate Branch. the 0ranch mana*er ta(es *reat care of this ste) and *ets introduced 'ith
the )erson himself, "is main intention is to determine the )ros)ective customer2s inte*rity1
res)ecta0ility1 occu)ation1 and nature of 0usiness he is doin* at the time of o)enin* an account,
8.6.6 ACCOUNT OPENING FORM @ SPECIMEN SIGNATURE CARD:
No' the )erson is )rovided 'ith an a))lication form (no'n as Account O)enin* Form,
This form containsJ
i, Title of account
ii, Address
iii, I,!,ard num0er
iv, Tele)hone No, -Office and Residence.
"ABIB BAN/ #I3ITE!
v, Introductory reference -all a0ove mentioned )articulars of introducer .
vi, Si*natures of the a))licant
vii, Amount de)osited
In addition to this the customer is re%uired to attach a co)y of National Identity ard 'ith the form,
S='-%,'" #%+"*$&/' -*/1:
S)ecimen of si*natures 'ill 0e o0tained from de)ositor at the time of o)enin* his account, A s)ecially
desi*ned card is used for this )ur)oseI the card must 0e countersi*ned 0y an official of the 0an( not
0elo' the ran( of an officer,
8.6.7 ACCOUNT OPENING REGISTER:
No' the name of the customer 'ill 0e recorded in account o)enin* re*ister1 and from here the account
no, of the customer 'ill 0e 'ritten on -to) most corners. account o)enin* form and on s)ecimen
si*nature card,
8.6.8 ISSUANCE OF CHEQUE BOOK:
The che%ue 0oo( 'ill ordinarily 0e issued to all customers desirin* to have dra'in* facility, he%ue
0oo( consists of ?E1 @B1 BE1 or ?EE )a*es de)endin* u)on customer re%uirement, ustomer can
'ithdra' money 0y si*nin* a che%ue and 'ritin* the amount he 'ants to 'ithdra' from his account,
A s)ecial che%ue 0oo( re*ister is (e)t to enter the name of the )erson havin* che%ue 0oo(,
8.6.: RECORDING IN TO GENERAL LEDGER:
The concerned officer records the name and amount de)osited 'ith the
0an( in to *eneral led*er, Se)arate led*ers are maintained for different
ty)es of accounts e,*,
i, urrent Account #ed*er
ii, Savin* Account #ed*er
"ABIB BAN/ #I3ITE!
iii, Fi&ed !e)osit Account #ed*er
iv, all !e)osit Account #ed*er
As and 'hen customer de)osits the money1 amount is credited the *eneral led*er and the 'ithdra'al is
follo'ed 0y a de0it entry in the led*er,
N($': This 3ethod is )ast, No'4a4!ays all )ostin* of voucher is due throu*h com)uter,
8.7 TYPES OF ACCOUNTS MAINTED BY HABIB BANK LIMITED (BANNU) PARADI GATE
BRANCH:
The follo'in* ty)es of accounts are maintained in "B#J
?, urrent accounts,
@, :rofit and loss sharin* account,
8, Fi&ed de)osit account,
A, Freedom account,
8.7.5 CURRENT ACCOUNTS:
A 0an( account 'hich may 0e used to lod*e )ayments or to 'ithdra' money on demand, Its main
)ur)ose is to serve the 0usinessman, Form num0er F4B8 is )rovided to the )erson to o)en the account
for 0usiness man, It is a statutory re%uirement to maintain current account, Its main features areJ
?, 3inimum amount for o)enin* this account is Rs,BEEE
@, Any )erson can o)en the account 'ith the 0an(
8, Accordin* to inter 0an(s a*reement interest is not )aid on current account,
A, Ban( act as custodian of money
B, ustomer can 'ithdra' money throu*h che%ue su))lied 0y 0an(,
"ABIB BAN/ #I3ITE!
8.7.6 SAVINGAP@L SHARING ACCOUNTS:
To )rovide interest free 0an(in* facilities in :a(istan1 this ty)e of account 'as introduced in Nanuary
?C7@,The main features of this account areJ
?, Instead of havin* fi&ed return in the form of interest the de)osited money 'ill 0e shared in
)rofit and loss of the 0an(,
@, One can o)en the account 0y de)ositin* minimum Rs,?EEE
8, To 'ithdra' a lar*e amount a notice of 6 days to the 0an( is necessary 0ut )ractice not seen,
A, There is not any (ind of interest is )rovided on money de)osited,
B, Rate of )rofit is declared at the close of each half4year,
8.7.7 TIMEAFIXED DEPOSIT ACCOUNT:
This account is the ma9or source of funds for the 0an(s, This account is 0est for )eo)le 'ho have sur)lus
money and don2t need such funds in nearer future, The money is de)osited for a fi&ed )eriod of time,
3ain features of this account areJ
?, Fi&ed amount de)osited for fi&ed )eriod,
@, Amount of )rofit can 0e o0tained after each moth or %uarter1 si& months,
8, "i*her 'ill 0e the time )eriod1 hi*her 'ill 0e the rate of )rofit,
A, A recei)t is used for the amount de)osited called fi&ed de)osit recei)t,
B, :eriod of de)osit can vary from 8 months to ?E years,
The amount can 0e 'ithdra'n 0efore maturity after surrenderin* interest,
"ABIB BAN/ #I3ITE!
"A:TER 5 B
#OANS > A!VANES
I" HBL $2' )(33(?%"+ )*-%3%$%'# () 3'"1%"+ */' *.*%3*43' $( %$# -&#$(,'/#:
Finance for ;or(in* a)italJ
Trade Finance FacilitiesJ
Finance for a)ital InvestmentJ
$eneral :roductsJ
Other :roducts and servicesJ
Investment Assistant -IA.J
:.5 FINANCE FOR !ORKING CAPITAL:
The ommercial Ban(in* at "a0i0 Ban( #imited focuses on small and medium si+ed 0usinesses, This
se*ment is the traditional stron*hold of "B# 'ith )roven e&)ertise and mar(et (no'led*e,
Units dedicated to service small and medium si+ed 0usiness are located at /arachi1 #ahore1 Faisala0ad1
$u9ran'ala and Sial(ot, Each unit has Relationshi) mana*ers 'ith in4de)th (no'led*e of the mar(et,
These relationshi) mana*ers assist e&istin* and )otential customers 'ith their financial needs,
:.6 TRADE FINANCE FACILITIES:
:.6.5 EXPORT FINANCE:
Forei*n urrency Im)ort Finance a*ainst :ac(in* reditJ for )re4 shi)ment re%uirements
-FA:.
Finance a*ainst Forei*n BillsJ for )ost4shi)ment re%uirements -FAFB.
Forei*n urrency E&)ort FinanceJ !ollar financin* for )re > )ost
shi)ment re%uirements -FEF.
"ABIB BAN/ #I3ITE!
:.6.6 IMPORT FINANCE:
Finance a*ainst Trust Recei)tJ for financin* im)orted *oods -FATR.
Finance a*ainst Im)orted 3erchandiseJ for financin* im)orted *oods -FI3.
FinanceJ !ollar financin* for im)ort re%uirements -FIF.
#etter of reditJ for im)ortin* inventory > ca)ital *oods -#.
:.7 FINANCE FOR CAPITAL INVESTMENT:
!emand FinanceJ medium term loans for ca)ital e&)enditure -!F.
#easin*J for financin* ca)ital e&)enditure,
:.8 GENERAL PRODUCT:
#etter of $uarantee -#$.
Bid > :erformance Bonds
3o0ili+ation Advance $uarantees
:.: OTHER PRODUCT AND SERVICES:
ommercial !ay to day 0an(in*J There are a 'ide ran*e of accounts and services to hel) you
mana*e your money, ;e offerJ
urrent AccountsJ Non4interest 0earin* account for your daily 0an(in* needs,
ash 3ana*ement ServicesJ $ivin* you the convenience of cash handlin*,
"a0i0 Ban( Easy AccessJ Real time Fonline 0an(in*G at commercial centers for customers
online transferHde)osit of )ayments,
"B# E4Ban(in*J "a0i0 Ban( #imited has launched a )roduct F"B# e40an(G 'hich allo's @A
hour access to accounts throu*h internet 0an(in*1 and : 0an(in*,
"ABIB BAN/ #I3ITE!
AT3J No'1 addin* more convenience1 the customers can also use the AT3s of other )artner
0an(s,
:.; INVESTMENT ASSISTANT (IA):
Investment Assistant has 0een created s)ecifically to assist e&)atriate :a(istanis 'ho are interested in
investin* in :a(istan, Usin* ommercial Ban(in* as a )latform1 'e 'ill 0e )rovidin* information of
le*islative1 re*ulatory and financial nature to )ros)ective investors to hel) them setu) their 0usinesses in
:a(istan,
"ABIB BAN/ #I3ITE!
"A:TER5D
NE; /NO;#E!$E AMUIRE
Truthfully s)ea(in* every thin* 'as ne' to me in "a0i0 Ban( limited thou*h I have a *ood Boo(ish
(no'led*e 0ut truthfully s)ea(in* it 'as totally different from the )ractical (no'led*e of the 0an(in*,
But 'ith the *race of A##A" and a0le to learn every section of the Ban(,
;.5 !HAT I LEARAND DURING INTERNSHIP:
T"E most im)ortant thin* that i learn is that the difference 0et'een the 0ehaviors of officials, And also
learn more clerical 'or( of "B# as under,
;.5.5 ACCOUNT OPENING SECTION:
I s)ent the ?st three days in account o)enin* section, As the area 'here I did my internshi)1 the )eo)le
are not 'ell educated that is 'hy 'henever a )erson 'ill come for o)enin* an account than the mana*er
referred that man to'ards me, Than I *uide that man and the form of o)enin* an account 'ill 0e filled
0y me and the entire le*al re%uirement are com)leted 0y me, In )ast the "a0i0 Ban( use and the old
ty)e of firm 0ut no' it is usin* a ne' firm of o)enin* an account, There 'ere five si*n are re%uired on
old ty)e of firm 0ut no' the ne' firm re%uire only one side,
;.5.6 CLEARING SECTION:
P*#$ M'$2(1:
I also 'or( in clearin* section durin* my 'or( I learned ho' to collect the different che%ues of different
Ban(s, Then I learned ho' these che%ues of different Ban(s mutually transfer, For mutual transfer
everyday a meetin* is held in NB: main 0ranch Bannu, The re)resentative of UB#1 AB#1 BAN/ A#
FA#A"1 BAN/ OF /"YBER1 and "B# 'as )artici)atin* and thus mutual transfer of che%ues 'as
held,
3r,IRFAN sahi0 'as the in char*e of this section ,"e *ave me a lot of attention,
"ABIB BAN/ #I3ITE!
N'? M'$2(1:
No'4a4!ays this activity done throu*h NIFT,
;.5.7 REMITANCES SECTION:
I also 'or(ed in remittances section ,in remittances section I learned ho' to transform the money from
one )lace to another )lace, In this section I learned1
?J !E3AN! !RAFT,
@J ON #INE TRANSFOR,
On each transaction there is commission char*ed to the sender,
The commission of -!,!. from ? to ?lac( is RsI ?DE,
The char*es are on the -!,!. u) to ?lac( is calculated in )ercenta*e,
The commission of -O,T. is Rs 8BE,
"ABIB BAN/ #I3ITE!
"A:TER 5 6
S;OT ANA#YSIS
The acronym S;OT stands for a firm2s internal Stren*ths and ;ea(nesses and its e&ternal
O))ortunities and Threats, The )ur)ose of such analysis is to 0uild on com)any2s stren*ths in order to
e&)loit o))ortunities and counter threats and to correct com)any2s 'ea(nesses, S;OT analysis is 0ased
on the assum)tion that if mana*ers carefully revie' such stren*ths1 'ea(nesses1 o))ortunities1 and
threats1 a useful strate*y for ensurin* or*ani+ational success 'ill 0ecome evident,
Stren*ths and 'ea(nesses ty)ically relate to the internal environment of an or*ani+ation1 'hereas
o))ortunities and threats are 0rou*ht a0out 0y the e&ternal environment of an or*ani+ation, In the
follo'in* section1 0oth internal and e&ternal analyses of "ABIB BAN/ I3ITE! are outlinedJ
<.5 INTERNAL ANALYSIS:
Internal analysis of a firm is the analysis of its stren*ths and 'ea(nesses, Unless a firm has internal
stren*ths and controls its 'ea(nesses1 it cannot ta(e advanta*e of o))ortunities and esca)e threats 'hich
the e&ternal environment )resents, Follo'in* are the main stren*th and 'ea(nesses of "B#,
<.6 STRENGTH:
Stren*th can 0e defined as an area 'here a com)any is 0est at doin* somethin* or a feature that )uts the
com)any at an advanta*e in com)arison to its com)etitors, "B# en9oys the follo'in* stren*thsJ
?, "ABIB BAN/ is a 'ell esta0lished 0an( en9oyin* lon* history of over DB years of e&)erience
and )rofita0le o)eration,
@, "B# 'as the first )rivati+ed 0an( that *ives it an ed*e over other nationali+ed 0an(s as it can
develo) any strate*y consistent 'ith the demand of mar(et and free from any )olitical or
0ureaucratic influence,
8, "B# is the lar*est )rivate 0an( in :a(istan no' and )eo)le trust is very hi*h,
A, It has the lar*est 0ranch net'or( amon* )rivate 0an(s of :a(istan,
"ABIB BAN/ #I3ITE!
B, "B# is the mar(et leader in introduction of e40an(in* and it has the lar*est,
D, "B# 'as rated the 0est domestic 0an( for t'o consecutive years of @EEE and @EE? 0y Euro
money1 a leadin* international )u0lication,
6, "B# has for*ed strate*ic alliances 'ith international 0an(s for e&)andin* its net'or( further1
0oth locally and internationally,
7, "B# has the a0ility to 0rin* innovative )roducts and services li(e )ersonali+ed service1
electronic funds Transfer1 so)histicated financial )roducts such as electronic 0an(in*1 auto4teller
machines and evenin* 0an(in*,
C, "B# has 0een very effective in controllin* costs as it successfully restructured itself after its
)rivati+ation, !urin* this )rocess more than ?1DEE em)loyees 'ere relieved under a *olden
handsha(e scheme and ??E 0ranches 'ere closed,
?E, E&cellent 0ranches a))earance *ives an ed*e to "B# over other 0an(s,The 0ranches are 'ell
furnished even in less develo)ed areas 'here other 0an(s2 0ranches *ive a )oor vie',
<.7 !EAKNESSES:
A 'ea(ness is defined as an area in an or*ani+ation 'here the or*ani+ation is not as *ood at doin*
somethin* as its com)etitors or a thin* 'hich an or*ani+ation lac(s thus )uttin* the or*ani+ation at
disadvanta*e in com)arison to its com)etitors, Based on the a0ove definition1 "B# has the follo'in*
'ea(nesses,
?, 3ission of "B# is not 'ell defined,
@, Thou*h "B# is second lar*est 0an( in :a(istan1 yet the fact remains that it is not mar(et leader
as NB:, Its total assets are al'ays less than NB: total assets,
8, No' as it is a )rivati+e 0an( that is 'hy $OVERNA3ENT su))ort to "B# decreased as it 'as
in )ast,
"ABIB BAN/ #I3ITE!
A, Em)loyees at 0ranch level are not )ro)erly motivated to 'or( 0y heart, They ta(e the all routine
activities as a 0orin* 9o0,
B, 3ost of the em)loyees lac( mana*erial trainin* as they are not )ro)erly educated, !ue to
seniority1 they have moved u) on the hierarchy line to $rade4 I1 II or III )ositions havin* hardly
0achelor de*rees, This ty)e of senior staff cannot a))ly the modern and innovative techni%ues of
mana*ement in decision ma(in* almost com)uter (no'led*e,
<.8 EXTERNAL ANALYSIS:
An or*ani+ation has to monitor its environment constantly to (ee) u) 'ith ne' develo)ments and
chan*es in the environment, A chan*e in the e&ternal environment may 0e either an o))ortunity or
threat, In either case1 the or*ani+ation has to )ro)erly use it stren*ths to avail the o))ortunities and avoid
or minimi+e the ne*ative effects of threats,
Follo'in* are the main o))ortunities and threats of "B#,
<.8.5 OPPORTUNITIES:
An o))ortunity can 0e defined as a chan*e in e&ternal environment 'hich if
)ro)erly e&)loited 'ith the or*ani+ational stren*ths 'ill result in enhanced
sales1 mar(et share1 or income, Usin* its stren*ths1 "B# can avail the
follo'in* o))ortunitiesJ
?, It can introduce de0it card system or may convert the e&istin* AT3 cards into a com)lete de0it
card,
@, Ne' )roducts li(e )ersonal loans1 mort*a*e and auto leasin* and cash mana*ement 'hich
diversify credit ris( and add to revenue *eneratin* )roducts1 are currently )rovided in 0i* cities
li(e #ahore1 Islama0ad1 /arachi1 and Ra'al)indi1 these )roducts may 0e tested for success in
other small areas of :A/ISTAN in different )rovinces,
"ABIB BAN/ #I3ITE!
8, As all around the 'orld remittances of money are strictly monitored so as the money remitted
may not fall in hands of so4called terrorists, For that all conventional money launderin* throu*h
"undies have 0een sto))ed1 there is an o))ortunity for "B# to e&tend its 0ranch net'or( to
various countries em)hasi+in* mainly on introducin* electronic fund transfer facilities,
<.8.6 THREATS:
Threat can 0e defined as a chan*e in e&ternal environment 'hich if not met 'ith )ro)er strate*ies 'ill
result in loss of revenues1 mar(et share1 or income, In the conte&t of "B#2s e&ternal environment1
the follo'in* )otential threats e&istJ
?, The fre%uent reduction on D4month and ?@4month Treasury Bills discount rates 0y SB: may
create )ressure on the 0an(s )rofita0ility,
@, The lo' discount rates are also ne*atively influencin* the advances rates 'hich may affect the
0an(s )rofits from the other side,
8, Forei*n 0an(s o)eratin* in :a(istan are )layin* a si*nificant role 0y incor)oratin* ne'
technolo*ies and )rovidin* 0etter %uality services thus creatin* a threat to the local 0an(s
es)ecially to "B# 'hich tries to develo) core com)etence in electronic 0ased )roducts, :olicies
of )rivati+ation1 forei*n e&chan*e reforms1 and structural ad9ustments have increased the inflo'
of forei*n resources throu*h direct and )ortfolio investment, In trade financin*1 the role of
forei*n 0an(s is even more si*nificant1 as a))ro&imately 8E )ercent of the total trade of the
country is transacted throu*h them, 3a9or )ortion of the trade financin* is for im)orters to
esta0lish letters of credit,
"ABIB BAN/ #I3ITE!
"E:TER5 7
:ROB#E3S I SOU$"T
!urin* my Si& 'ee(s stay in -"B# :reedy $ate Branch Bannu. I found various )ro0lems1 'hich I
thin(1 so should 0e resolved for the 0etter functionin* of the Ban(, Some of these )ro0lems are of such
nature that their solution 'ill hel) the Ban( and its 'or(ers in coo)in* in this com)le& 'orld of
*lo0ali+ation,
B.5 PROBLEMS:
These )ro0lems areJ 4
?, There is a lac( of on4line information in the Ban( a0out the chan*es ta(in* )lace in the 'orld of
Ban(in*,
@, A customer cannot find any (ind of 9ournal or ne's)a)er there,
8, In early days of month there is a *reat rush of customers1 'hich cause inconvenience for the
officer concerned and cashier as 'ell,
A, Se)arate ca0ins are not availa0le for the staff,
B, A se)arate counter for ladies is not maintained there,
B.6 RECOMMENDATION:
Recommendation I :ro)ose
I 'ill *ive follo'in* su**estions for the 0etter function of the Ban(J
?, The mana*ement should )rovide 0etter arran*ement for the em)loyees,
@, The daily ne's)a)ers and 9ournals should 0e )rovided to the em)loyees and customers visitin*
there,
8, A se)arate ladies counter should 0e there,
A, The Ban( mana*ement should 0e very careful 'hile *rantin* the loans,
"ABIB BAN/ #I3ITE!
B, :ersonal interests should not 0e *iven im)ortance and customers :ersonal credit 'orthiness must
0e carefully scrutini+ed )u0lic relation des( should 0e esta0lished in each and every 0ranch for
*uidance as 'ell as redresses of *rievance of customers at the s)ot,
D, Online Ban(in* should 0e introduced in all the 0ranches,
6, A**ressive )u0licity cam)ai*n must 0e introduced throu*h )ress and Electronic media for ne'
)roducts and scheme 0y initiatin* vi*orous mar(etin* )olicy,
7, Ne' talent H )rofessionals should 0e hired to cou)e 'ith the com)etitive demand in the industry,
C, The financial statement should 0e made more trans)arent and relia0le,
?E, onsumer financin* should 0e initiated to ca)ture the mar(et share,
??, Em)loyee2s induction )romotion and transfer should al'ays 0e made on merit,
?@, To motivate the em)loyees their remuneration H salaries should 0e made at )ar 'ith to) tier
Ban(s,
"ABIB BAN/ #I3ITE!
$#OSSARY
USTB 4444444444444444444444444444444444444University Of Science and Technolo*y
!,! 4444444444444444444444444444444444444!emand !raft
TT 44444444444444444444444444444444444444Tele*ra)hic Transfer
AH 44444444444444444444444444444444444444Account
OB 44444444444444444444444444444444444444 Other Ban(
OB! 4444444444444444444444444444444444444Other Ban( !raft
:#S 4444444444444444444444444444444444444:rofit and #oss Sharin*
!R 44444444444444444444444444444444444444!e0it
R 44444444444444444444444444444444444444redit
A 44444444444444444444444444444444444444urrent Account
F# 44444444444444444444444444444444444444Fle&i #oan
#$ 44444444444444444444444444444444444444#etter of $rantee
!F 4444444444444444444444444444444444444 !emand Finance
# 4444444444444444444444444444444444444 letter of credit
RF 4444444444444444444444444444444444444 Runnin* Finance
FA: 4444444444444444444444444444444444444 Finance a*ainst :ac(in* redit