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Strength can be defined as an area where a company is best at doing something or a

feature that puts the company at an advantage in comparison to its competitors. HBL
enjoys the following strength:

Habib Bank enjoying long history of over 65 years of experience and profitable

HBL is the largest private bank in Pakistan now and people trust is very high.

It has the largest branch network among private banks of Pakistan.

HBL has been very effective in controlling costs as it successfully restructured itself after
privatization. During this process more than 1600 employees were relieved under golden
handshake scheme and 110 branches were closed.

Excellent branches appearance gives an edge to HBl over other banks.

The branches are well furnished even in less developed areas where other banks ranches
give poor view.

HBL has the ability to bring innovative products and service like personalized service,
electronic funds.

The Banks rupee traveler cheques have been market leaders for the past six years.

HBL car to car financing scheme is unique in auto loan scheme.

HBL has forged strategic alliances with international banks ofr expanding its network
further both locally and internationally.

HBL has forged strategic alliances with international banks for expanding its
network further, both locally and internationally.


Maximum number of branches carrying out the proper maintenance and complexity
in providing identical working atmosphere at the every branch.

Inferior organization of revival of the system is a danger to bankruptcy.

Be deficient in customer feedback.

Little job contentment.

Pitiable ATM service

Irregularity in efficiency and working environment due to the largest of branches.

Sense of uncertainty in the employees allocated at little money-making branches due

to the downsizing.

Females feel nervous in an environment in the middle of the male workers.

Prey of political and socio cultural stress

Short of professionalism in the branch employees frequently.


Huge available market prospective in consumer banking.

An opportunity exists, in shape of opening of ladies banking segment inside the

branch which is completely a new idea it will pull customers towards bank.

Chance for mounting value added services combined with corporate banking
relationships, cash management services to large and medium sized corporate clients.


strategy of government on business and commerce sector provide HBL

opportunities to take return of these policies to meet professionally with the business
people to solve their problems with the instant cash and investment facilities.

Government is taking very courageous steps to endorse Information Technology in

Pakistan. HBL has an opportunity to recover its technology.

Customer advice on diverse

products and accounts ha really improved bank

performance and encouraged the ambiance for other potential policies.

Habib Bank Ltd also has an opportunity to its new technological expansion like telebanking and internet banking facilities in a way to serve more competently.

E banking facility too is an innovative opportunity which is a prosperous business in

foreign countries and can also be here if HBL takes the step ahead.

Due to well-organized and expert managemen group HBL can also develop and
enlarge its foreign business productively.

HBL provides opportunity to make use of its abilities and efficiencies in leasing


Consolidation in the banking segment ensuing in increased rivalry.

Scarcity of qualified and focused personnel at minor managerial and officer stage.

Increasing global technological progression.

Firm regulation by government over credit conveniences to the customers as poorly as

to meet the prudential

Loss of assurance of out of the country customers due to freezing of accounts.

Facing more opposition by overseas banks in the marketplace.

Overseas banks are flourishing in field of consumer financing.

PEST Analysis
A broad view of the market is seen as an important tool in the management
is interested in creating a better service for customers. Rapid


change, global competition and the response preferences of the highly diversified
buyer in many markets require the constant attention of the market vouchers to
identify business opportunities






strategies, see the shifting patterns of buyers, evaluation and guidance the
choice of targeting the buyers and to classify based on their segment.

Identification of external Macro-economic

factors that affect

buyers and thus

includes the size and the composition of the market overtime in the first
instance, the construction of customer profiles. These influences include:

Political and legal environment

Economic trends

Socio Cultural environment

Technological factors

Political and Legal Environment

Banks are mostly affected by political and legal consideration of a country. This
environment consists of agencies of law enforcement and government regulations
that influence and limit various organization and individuals. Mostly these laws are
designed to create new business opportunities.
Business legislation has the following main objectives

To protect the banking companies of unfair competition.

To protect consumer from unfair commercial practices adopted by banks

To protect the interests of society by the unbridled business behavior

Economic trends
Along with increased borrowing capacity, a banking market requires improved
consumer market volume. borrowing capacity depends concerned:

The result of the Consumer

Savings rates

consumption patterns

Interest rates

Budget deficit

Exchange rates

Cost of living


Socio Cultural Environment

A society is determined by established and / or understood beliefs, norms and
values. People in a society consciously and unconsciously interact with:






The following are the main factors. That arise because of the change in the socio
Cultural environment ?

Awareness of service

Concern for the environment

Improved customer relations

Technological Factors
The advance in the technological forces have played an important role in
shaping people's lives. The rate of change of technology and its adoption has
significantly affected the growth rate of the economy worldwide and the same
is the case in Pakistan banking industry in general and people in particular
HBL. With each passing day, new technology is generating deep roots affects
what could be pragmatic in the long run. These intensify techniques involved in
online banking. In brief PEST analysis evaluates the banking sector in general and
provides information about the external macro condition.

Competitors Habib Bank Limited

It has many competitors in your industry only advantage is carrying more Gob
deposits. organizations and advances in gold. The others do not have this kind
of opportunity, but they are far HBL well amid the customer, behavior,
perspective, services, saving time, products, etc. The following is a list of
Deposit Department
Bank offers money and are merely the mobilization of funds within the economy.
They borrow from and lend one person to another the difference between the loan
rate loans is its propagation or gross profit. Therefore we can rightly say that
deposits are blood bank that makes the body of an institution to get to work.
These deposits are the responsibility of the bank so from

the point of view of the

bank can refer to them as laibilities.

Account Types
Current Account
In these accounts it allows tthe customer to deposit or withdraw money as and
when he likes. You can, therefore, deposits or withdraw money several times in
one day, if he likes. There is also no reaction on the amount to be deposited or
withdrawn. However there is minimal





Rs.5000/. usually this type of account is opened for business. Without the benefit
is paid by the bank an no service charged are deducted by the bank in the current
account deposits.

Account can be opened with a minimum balance Rs. 1000/ with no maximum

Check the balance at any time during banking hours.

No benefits are paid.

Statement sent a letter request.

There is no restriction on the withdrawal of the amount and check


saving exchange gains and losses

Profit and Loss Sharing Account

This type of account is for those people who want to make small savings. This type
of account is opened with a minimum deposit of Rs. 1000/- or the prescribed amount
of time to time. The benefit is paid to these accounts the minimum balance for
one month for the whole of that month. Zakat and other taxes are deducted



rules. The


for this account is dully

completed prescribed opening A/C shape, photocopy of National Identity Card

(Resident Pakistan), two passport photos with signature / thumb print (Resident
Pakistan), copy of passport photos having resident visa page country where they
lived Pakistanis, two passport-size firms and A/C opening from Non resident
Pakistani photographs with signature Printing / thumb etc.

Account can be opened with a minimum balance Rs.1000/- or time limit to

be announced in time without limit prescribed.

The benefit is payable to the monthly theme for the adjustment of the
slowdown in the real rate of profit declared every six months.

The benefit is calculated on monthly products.

Zakat is deducted at the time of valuation account.

The benefit is paid / credited into account in half every year for six
monthly PLS savings accounts.

Statement dispatched on half a year after the publication of the profit.

There is no restriction on the withdrawal of the amount and check


Fixed Deposits
Fixed deposits made after the due date may be withdrawn. In these deposits, the Bank has
high interest rates based on time deposits. The shorter the period of the deposit, plus
interest and vice versa.
Account opening section
In this section, I have to learn to open a new account. The HBL opening different types of
accounts. Opening an account is to build relationships with customers banker. Before a
bank opens a new account, the banker has the integrity, decency, occupation of the
potential customer and the nature of the cases through the preliminary reference data to
determine the time of account opening. I have explained these accounts. To open an
account first customer to fill in a form prescribed by the bank. The person is needed to
any reference or for the introduction to make the opening of the account. Introducer can a
person be an account with HBL. Some important information about introducer is, for
example, the name and account number of the insertion device is written in the area on
the sample signature cards. Then, to find out whether there is a real contributor or send a
letter to him to thank him for that introduction, so nothing can get bad in the
announcement. There are different requirements for different types of accounts and
account holders. One important thing is that the customer must have a business customer.
The limit of the company's 40 million customers and corporate clients industry still has.
The following parties are involved in TT
The applicant
Signs branch
Librado branch
Following the important things to be included in the TT:
Full name of the beneficiary or account number must be listed in the application form.
Instruction on the manner of payment must be obtained.
A recording of the presentation foreign registry should be maintained.
All shipping costs should be controlled by numbers or codes.

Advances Department
This department worked under the guidance of experienced and qualified knowledge
banker. Mr. Nadeem, which service the bank had for the past 22 years. This department
has played one of the main functions of the bank because a bank is organizations that take
deposits and give progress. Progress department one of the most sensitive and important
services of the bank. The majority of the reinforcement is achieved through this section.
The work of this department is to make proposals on loans. The headquarters of Credit
Management Division directly controls all developments. As is well known bank is an
institution of the profits. Surplus balances attracts customers with low interest rates and
progress in the interest of individuals and companies higher. Credit extensions are the
most important activity of all financial institutions, because it is the main source of
income. However, at the same time, is a very dangerous command, and the risk can not
be completely eliminated, but it can be greatly minimized certain techniques. Any person
or company who wants to borrow HBL must be a prescribed form, which for the first
time, complete the following information to the banker.

As we have seen in the previous analysis of the financial statements, I realized that Habib
Bank works very well since its inception. It is very difficult to make suggestions to
improve the conditions of bank Habib Bank Limited. As we know that nothing is perfect,
there is always room for improvement, so can recommend the following suggestions to

Employee training programs can be continuously fed so that employees are aware of the
latest developments especially with customers.

Bank may introduce incentive schemes for employees on a regular basis so that if employees
can work from my heart for the good of the organization.

Banks different regimes should be provided to target customers in order to have a

reasonable market share.

Bank should help the company through no-interest loans to talented students.

Online Banking should be introduced in all branches.

To motivate the salary / wage workers must be on a par with the best level of banks.

Aggressive advertising campaign to be launched through the print and electronic media
for new products and schemes by initiating aggressive marketing policy.

Bank should establish an induction plan, so that when a customer opens the bank account
must be provided with a booklet that the procedure for submitting checks, payroll, etc.
know much time bank staff and store while performing the customer.

The attitude of bankers with all the customers are not the same; more attention and good
service to certain customers and giving up a large part of them. Some customers are
responsible for the bank and do their work to others; It is not good practice. All customers
must be treated fairly.

HBL should increase their communication with customers about the conditions of the
various products and services.

Account Opening Department

In this department I have to learn how to open a new account of a customer. The HBL open the differ

ent types of accounts. The opening of an account is the establishment of banker customer relationshi

p. Before a banker opens a new account, the banker should determine the prospective customers int

egrity, respectability, occupation and the nature of business by the introductory references given at t

he time of account opening. I already explain these accounts. In order to open an account first of all t

he customer has to fill a form prescribed by the bank. The person is required to bring some reference

or introduction for opening the account. Introducer may be a person who has an account with HBL.

Some important information regarding introducer e.g. the name and account number of the introduc

er is written on the space provided on the specimen signature cards. Then in order to find out whethe

r he is a true introducer or not a letter is sent to him thanking him for this introduction, so that anythin

g wrong may come into notice. There are different requirement for different types of accounts and a

ccount holders. An important thing is that the customer should have a corporate customer. The corp

orate customer limit is 4 million and this branch always deals the corporate customer.



Duly filled prescribed A/C opening form.

Attested photocopy of N.I.C./Passport of Account Holder(s), Proprietor, Partners, Directors

and office Bearers as the case may be.

Certified true copy of the certificate of incorporation or registration (in case of limited comp

anies & registered bodies only).

Certified true copy of the certificate of commencement of business (in case of public limited

companies only).
Certified true copy of the memorandum and articles of association (in case of limited compa

Certified true copy of rules and regulations or By-Laws (in case of association etc.).
Certified true copy of the resolution of the Board of Directors/Managing Committee/Gover

ning Body regarding conduct of the account.


Any time the customer can close their account if he is not satisfy with the bank or may be other reaso

n. He can easily close their account. For closing of account the customer meets the manager that he

want to close his account .For this purpose the application is written to the manager. The manager si

ng this application and this is submit to the account opening department this department close the ac

count of the custom.


1. Remittance0Department
Remittance is a major function of the bank. It is the transfer of money from one place to another plac

e without directly involving cash. As it is the function of the Bank to the money to any place where t

here is a Bank. It is the most easiest and safe way to send money to any place. Bank charges menial a

mount as a commission for the remittance. Here in the Habib Bank Limited Chubara Road Layyah

Branch there is also remittance Department. By providing this service to the customers the national

bank earns a lot of income in Exchange.


There are two types of bills remittance:



Remittance Inward


Remittance Outward



Cheques and Drafts received for payment and clearance or drawn on us from customer of other bank

s on behalf of their customers is called Remittance Inward.




All instruments issued by us, which are drawn on other branch of the same bank or instruments depo

sited for collection from other bank locally or out of city are called Remittance Outward

There are mostly four methods to remit the money. They are

Demand Draft (DD)

Mail Transfer (MT)
Pay Order (PO)

Telegraphic Transfer.(TT)

Demand Draft (DD)


It is the most commonly method used for remittance of money. It is very simple, firstly a form is to b

e filled in which all details are specified that where and it which branch the draft is to be sent then the

money is depositor which is called draft and money can be drawn after showing to the bank of the sp

ecified branch of the Bank. Only specified person can draw the money on that draft. Another metho

d to secure the payment of the draft could be the crossing of the draft, which means that it will only b

e deposited in the payee's account. To make it more secured and safe the Bank has coded the amount

exceeding Rs. 15 . Only the banker or the person known the actual amount of the draft in return ban

000 0

k gets a commission which is its mode of earning.


Following parties are involved in demand draft:


Issuing branch
Drawee branch

A demand draft may be issued against the written request of the customer before issuing it must be s

een that the demand draft is in order.


The DD application must be scrutinized by the counter clerk in respect of following points.

There should be branch where payment is to be made.

Full name of payer should be mentioned.
Amount in words and figures must be same
The applicant on two places should sign application.

Mail Transfer (MT)


The money is transferred through mail. One Branch of the bank sends advice to the branch of the sa

me bank to credit the account of payee. In this type of transfer the payee must has the Bank account.

For example, now days PTV's licenses are made all over the Pakistan. Bank also gets commission o

n the mail transfers the amount to the PTVs Islamabad account.


Pay Order (PO)


Pay order is less expensive method of transfer money. Normally this method is used to transfer mon

ey inside the city. If it is used city wide, it takes a long time. The bank charge Rs. 1 which is flat fee t


he pay order and an excise duty of Rs, 1 per leaf withholding tax of 2 % on the sum is also taken from

the party. Now if the pay order is to be cancelled or duplicate of the pay order is to be needed is case

of misplacement Rs.2 is to be paid.



Following parties are involved in pay order:


issuing branch

Telegraphic Transfer.(TT)

It is a good safe and fast method of transferring money from one place to another. The advice is sent t

hrough the telegram and the bank to which the advice is made reconfirms that whether the advice is

made or not. After the confirmation the money is paid to the payee. Telegraphic Transfer could be m

ade by giving the name and the telephone number of the payee but account number is considered go

od and sage. The amount exceeding Rs.15 is coded in order to keep security.


Following parties are involved in TT


Drawing branch
Drawee branch

Following important things should be included in TT:


Full name of the beneficiary or account number should be mentioned in the application form

Instruction regarding mode of payment should be obtained.
A record in the remittance outward register should be maintained.
All the remittance must be controlled through number or codes.

2. Advances0Department
This department has been working under the supervision of knowledge experienced & well qualifie

d banker. Mr. Nadeem, who has been serving this bank for the last 22 years. This department has bee

n playing one of the primary functions of the bank because a bank is the organizations that accept de

posits & give advances. Advances department is one of the most sensitive and important department

s of the bank. The major portion of the profit is earned through this department. The job of this depar

tment is to make proposals about the loans. The Credit Management Division of Head Office directl

y controls all the advances. As we known bank is a profit seeking institution. It attracts surplus balan

ces from the customers at low rate of interest and makes advances at a higher rate of interest to the in

dividuals and business firms. Credit extensions are the most important activity of all financial instit

utions, because it is the main source of earning. However, at the same time, it is a very risky task and

the risk cannot be completely eliminated but could be minimized largely with certain techniques. A

ny individual or company, who wants loan from HBL, first of all has to undergo the filling of a presc

ribed form, which provides the following information to the banker.


Advances are investments of bank to earn profit. After restructuring of Habib Bank Limited, Head o

ffice gives loan targets to each branch that must be achieved for its survival. The manager is responsi

ble to achieve these targets in the given period. The amount is collected partially with an agreement

containing the markup or interest rate, which is to be paid the interest, or markup is applied on a time

limit after that it can be increased with the given conditions applied.

There are basically two types of loans.


Fund base
Non-fund base

In fund base the cash is involved.

While is non fund base cash is not involved.

These are following types of advances those are given by the BANK.

Cash Finance (CF)

Running Finance (RF)
Machinery Loan.
International Development Agency Loan(IDA)

Cash finance (CF)


Cash Finance is the biggest loan given to the businessmen, industrialists, and its limit is in crores an

d bank do require security for this purpose. After the proper investigation and documentation these f

inances are given and genuine property is pledged as a matter of security.


These loans are taken for the purchase of stocks etc. The bank appoints its staff of two or three perso

ns at the place where that stock is lying. Bank also keeps the record of the stock and current position

too. A notice is also written at the place that the stocks are pledged with

the bank. To get these types of loans prior permission from the zonal office of the Habib bank is also

required. The bank gets back its principal amount and also markup for the loan

Running finance (RF)


Running Finances are also given for the purchase of stock etc. But its limit is not too much. Normall

y up to RS 15, , is given as a Running Finance and no staff is appointed. This is termed as Hypothe

000 0000

cation, which means that party is wholly liable for the stock and

payment of the principal amount and markup. The procedure is almost same as for the cash finance a

nd the loan is given to those parties which are able to prove its genuineness and satisfies the bank. Th

e bank also pledges the genuine security of the party which normally more valuable than the amount

of loan. To get this type of loan prior permission of the zonal office is necessary.

Machinery loan

Certain loans are given for the purchase of machinery. These loans are called Local Machinery Man

ufacturing Loan (LMM LOAN). The bank finances for the machinery, which is manufactured in Pa

kistan. Like other loans after the proper verification and proper documentation.

With the prior approval from the zonal office, these loans are given. The bank pledges some genuine

property as a security. Personal security is also required in the getting of this loan. The loan is to rep

ay in certain installments which includes the mark0

up also. Normally these loans are for the period of five years and first six or three months are exempt

ed from the installments as the ease or as the terms and conditions may be. The rate of the interest to

be paid by the party is 8% per annum.


International Development Agency Loans.


These loans are given for the purchase of foreign machinery, stocks, etc.

Though these loans are not in practice but there is a provision for this loan. The cause of in practicin

g of the loan may be the unawareness of the people about the provision.

The rate of interest on these loans is 11% per annum.


These finances are provided by the World Bank.


There are five principles, which must be duly observed while advancing money to the borrowers.


Other Finance system of the HBL


Demand finance

Fixed assets financing (FAF)

House Finance

Hire Purchase Financing

3. Marketing0Department

The function of the marketing department of a HBL is to advertise about the bank and reach more po

ssible customer who would open accounts with the HBL. They usually start up the campaign or a pr

omotional scheme explaining a benefit that come along with the process of account opening with th

e bank. Such a campaign usually results in the increase in the customers base and increased the prof

it for the HBL.


Another important function of HBL is to use of the segmentation strategy, in it the HBL divide the m

arket into distinct group of buyers with different needs how might require It is very important strateg

y which is applied by the operation marketing department in the HBL, the Main focus of this selecti

ng strategy is to spreading the market into different groups, where the persons have comparable nee

ds as well as wants for services and products.


The marketing department in HABIB BANK LIMITED is very strong. It is the main source of gaini

ng and maintains the customers that can give a large profit to the bank. There are five relationship m

anagers in Habib bank and every person is responsible for the credit of his party. There are three mar

ket of HBL.


T-Bill and Govt. Securities

Bonds of Provincial Govt.
Defense Saving Certificates
Mutual Funds etc.


Equities e.g. shares

Mutual Funds
Debt Market


Spot Transactions
Outright Transactions
Swap Transactions

HBL corporate center only deal with the following categories of business:

The organization that have minimum 25 million sales in a year.

The organization that have availed 8 million finance
Agri based industry.
HBL do not deal with the agriculture sector.



4. Clearing0Department
The major function of clearing department is to receive the cheques, which are drawn on some other

banks. The customer can get the money in his account at Habib Bank Limited through a cheque dra

wn on another bank. The bank accepts these cheques and collects the amount from that bank on whi

ch cheques are drawn through the Clearing House. Bank charges some commission for this function

Every bank performs both as a paying as well as collecting functions on behalf of its customer. It is h

owever an important function of crossed cheques. A large part of this work is carried out through the

bankers clearing house. A clearing house is a place where representatives of all the banks of a city g

et together and settle the receipts and payments of cheques drawn on each other bank. As the collecti

ng banker runs the certain risks in receipt of their ownership, the law has provided certain protection

s to the banks. The basic function of clearing dept. arises when HBL account holder deposits cheque

of another back to collect its payment on his behalf or HBL account holder gives a cheque to any oth

er party concerning to any other bank. Usually a cheque is sent through clearing is credited to the de

positor account day after tomorrow.


In this regard there are two types of clearings.


Inward Clearing
Outward Clearing

Inward clearing means all those cheques which are issued by account holders too their parties and n

ow these cheques are presented for payment (in term of amount of cheque credit to presenter accoun


Similarly when outside parties issue some cheque to our account holders, they deposit these cheque

s in cheque Receipts Department. Afterward these cheques, as relating to other banks operating in c

ountry, are sent to clearing department or further process. Clearing dept. sends these cheques to resp

ective banks and after realization of cheque, funds are credited to the account of respective customer

. In this regard there are two types of clearing


Intra city clearing

Intercity clearing

5. Foreign0Exchange0Department
As the Pakistani currency accounts are opened the requirements are same for the foreign currency ac

counts. All the transactions are made in the foreign currency in which the account is opened.

6. Computer0Department
Through this department bank has make its way to enter in twenty0

first century. This department is playing a very important role in making the banking procedures fast

ers and helping the bank for providing the new services to its customers. This division provided the

bank with online branches system to make the whole procedure fool proof.

There are three types of branches in all over the Pakistan.

Online Branches

The branches, which are directly, linked with the central computer AS0

4 through wide area networking through fiber optic cables. These branches have dumb terminal dir

ectly linked with central computer. Yet only forty0

four branches all over the Pakistan are online. Out of forty0

four, seventeen are located in Karachi, seven are located in Lahore, and two are located in Islamabad

and two in Multan and two in other regional offices.

Batch Branches;

The branches where all transactions are carried out with the computer based system but these branch

es are not connected to the central computer with wide area networking. Batch branches are using th

ree types of system, Branch Back Office (BBO) based on FoxPro, Branch Automated System (BAS

) based on UNIX Branch Integrated System (BIS) based on FoxPro, in Karachi mostly branches faci

ng this problem. Now-a0

days efforts are under way to convert all branches into Electronic Banking System (EBS) which is u

sed by online branches as this system doesn't require a person to remaining sitting till the branch clo

sed its operation but the system automatically close itself when the branch time is over. The databas

e in head office is also on this system.