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Internship Report
(2010)
Internship report
Master of business administration program

Name: Muhammad Ali Pervez

Reg. No. FA08-MBA-167
Specialization: MBA ( Human Resource Management )
COMSATS
Institute of information Technology
Wah Cantt

Company Name: Habib Bank Limited

Main Telephone Number: 0514545541
Postal Address: Aslam Market, Wah Cantt.
Supervisor Name: Sir Tariq

Telephone Number: 0333-5457383

Start date of internship: 1h July 2009

End date of internship: 28th August 2009

Report date: 1st June 2010

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Evaluation
Muhammad Ali Pervez
Completed Internship at
Habib Bank Limited ( HBL )

Internship report submitted for the final evaluation in

Partial Fulfillment of the requirement for the Degree of

Master in Business Administration

It is certified that, the internship report and the work contained in

it conforms to all the standards set by the Institute for the evaluation of any

such work.

1. _________________________

2. _________________________

3. _________________________

4. _________________________
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Dedication

This report is dedicated to the greatest man in the world that shows
us the right path. Who is the great patron of the mankind that is
Holy Prophet Hazrat Muhammad (PBUH).

I would also like to dedicate this small effort of extract to my

Parents and Teachers. They have always been a shinning star to
look upon, to give light and to show me the directions when
ever I am lost. May Allah give them more strength and long life
to guide me forever, Ameen.

Muhammad Ali Pervez

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ACKNOWLEDGEMENT

I thanks to ALLAH Almighty, the most beneficent and merciful to everyone, who gave
me ability and courage to successful, complete this work, because I am nothing without
his blessings for me.

I wish to express my love and obliged for my Parents for all those nights he spent praying
for my mission, and me. My Parents who’s rising gave me character and an empathetic
heart. Special thanks to below mentioned personalities at HBL; Ms. Bushra Ali, Mr.
Shiraz Munawar, Ms. Sadaf. Who have contributed and allowed me to participate in all
kinds of professional development.

I am also highly thankful to our teacher for providing us references to get information
regarding the specific internship report.
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Table of Contents

CONTENTS Page No.

Sr.No.

1 Executive Summary 7
2 Introduction 10
3 History 12
4 Organizational Structure 17
5 Product & Services 18
6 Individual Customers 18
8 Business Customers 21
9 Advances Department 37
10 Remittance Department 43
11 Clearing Department 32
12 Foreign Exchange Department 42
13 Deposit Department 28
14 Human Resource Management 46
15 SWOT Analysis 74
16 Work Description 80
17 Recommendations & Conclusions 83
18 Bibliography 85
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EXECUTIVE SUMMARY

HBL was the first commercial bank to be established in Pakistan in 1947. Over the years,
HBL has grown its branch network and become the largest private sector in banking with
over 1450 branches across the country and customer base exceeding 5 Million
relationships. With a presence in 25 countries, subsidiaries in Hong Kong and the UK,
affiliates in Nepal, Nigeria, Kenya and Kyrgyzstan and rep offices in Iran and China,
HBL is also the largest domestic multinational.

HBL product and services are divided into two main divisions i.e. Individual Customers
& Business Customers. For Individual Customers HBL provides the following products
and services to meet its individual customer requirements. Product and services that
includes in Individual Customers are CarToCar, Car Loan, Credit Cards, Deposit
Accounts, Banc assurance, Debit Card, Phone Banking, and Mutual Funds. Whereas for
Business Customers HBL provides Corporate Banking, Commercial Banking, Investment
Banking, Islamic Banking, Cash Management, Zarai Banking, Global Treasury and Asset
Management.

HBL is performing its activities through the following functions departments that are
Deposit Department, Clearing Department, Advances Department, Foreign Exchange
Department and Remittance Department.

HBL is offering numbers of Products and Services to its customer. HBL is offering
lucrative schemes, products and services suiting best to the wants and demands of the
customers. HBL is using offering competitive prices to attract its customers. For
Promotion Strategy, HBL uses different sources e.g. through TV Commercials, placing
Ads in Newspapers, Broachers, Press Releases, Publications, Sponsoring Activities and
Actively Participate in different festivals or Celebrations. To meet the needs and wants of
its Customer, HBL has 1450 branches across the country .
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Financial Analysis of HBL is done on the basis of following ratios that are current ratio,
cash ratio, advances to deposit ratio, loan to asset ratio, earning asset to total asset ratio,
loan loss provision to total loans ratio, return on asset ratio, return on equity ratio, return
on loan, return on investment,net interest margin, net working capital ratio, management
rate of return capitalization ratio, debt ratio, debt to equity ratio, earning per share, book
value per share, price earning ratio, dividend pay out ratio.

In Last sections Work done at branch is defined and the SWOT analysis of both the firm
and branch is conducted, which shows the Strength, Weakness, Opportunities and Threats
of overall firm and the branch. And finally according to my knowledge and findings
some Recommendations to the bank are given to improve its working.
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MISSION Statement
“To make our customer prosper, our staff excels and creates value for shareholders”

VISION Statement
“Enabling people to advance with confidence and success”
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INTRODUCTION TO HBL

HBL was the first commercial bank to be established in Pakistan in 1947. Over the years,
HBL has grown its branch network and become the largest private sector in banking with
over 1450 branches across the country and customer base exceeding 5 Million
relationships

The Government of Pakistan privatized HBL in 2004 through which (Aga Khan Fund for
Economic Development) AKFED acquired 51% of the Bank's shareholding and
management control.

With a presence in 25 countries, subsidiaries in Hong Kong and the UK, affiliates in
Nepal, Nigeria, Kenya and Kyrgyzstan and rep offices in Iran and China, HBL is also the
largest domestic multinational. The Bank is expanding its presence in principal
international markets including the UK, UAE, South and Central Asia, Africa and the Far
East.

Key areas of operations encompass product offerings and services in Retail and
Consumer Banking. HBL has the largest Corporate Banking portfolio in the country with
an active Investment Banking arm. SME and Agriculture lending programs and banking
services are offered in urban and rural centers.

HBL Brand
Our brand identity is the outward expression of what we stand for as an organization.
This is summarized in our vision, mission and is supported by our values.
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HBL Values
Our values are the fundamental principles that define our culture and are brought to life
in our attitudes and behavior. It is our values that make us unique and unmistakable. Our
values are defined below:

Excellence
This is at the core of everything we do. The markets in which we operate are becoming
increasingly competitive, giving our customers an abundance of choice. Only through
being the very best - in terms of the service we offer, our products and premises - can we
hope to be successful and grow.

Integrity
We are the leading bank in Pakistan and our success depends upon trust. Our customers -
and society in general - expect us to possess and steadfastly adhere to high moral
principles and professional standards.

Focus
We understand fully the needs of our customers and adapt our products and services to
meet these. We always strive to put the satisfaction of our customers first.
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Meritocracy
We believe in giving opportunities and advantages to our employees on the basis of their
ability. We believe in rewarding achievement and in providing first-class career
opportunities for all.

Progressiveness
We believe in the advancement of society through the adoption of enlightened working
practices, innovative new products and processes, and a spirit of enterprise.

HISTORY OF HBL
HBL at its present state has a long and rich history of deeds and sacrifices. All this has
been possible on the account of sustained efforts.

The first branch of HBL started functioning on 30th August, 1941 at Muhammad Ali
Road Bombay, where Quaid-e-Azam Muhammad Ali Jinnah first of all opened his
personal account. Mohammad Ali Habib was a man of stern and persistent will. Allah
Almighty had bestowed him with extra ordinary capabilities. He was devoted to his Bank
with a view to take his share in the uplift of the strife-torn and devastated Muslim
community. At the time of its inception, the Bank's total paid up capital was Rs.2.5
million but it is evident from the following data that the Bank experienced a steep rise in
the business in a few years.
In 1942, on the desire of Quaid-e-Azam, Habib family migrated to Pakistan and later on
shifted the Bank's Head Office from Bombay to Karachi on 7th August, 1947 just one
week prior to independence, to play its pivotal role in the development of this newly born
country.
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At the time of independence, the areas which now constitute Pakistan were producing
only agricultural products raw material for indo-Pak subcontinent. Partially no industries
were there to process the raw -material, therefore the raw material was exported from
Pakistan. There were 19 non-Indian foreign Banks which were engaged in the export of
crops from Pakistan with only two Pakistani Banks i.e. HBL and the Australia Bank. The
circumstances were completely un-certain. The confidence of the people had been shaken
by the un-friendly environment and till the time peace had not been restored, people
would naturally have been interested in other things. The nation was quite young with
extreme scarcity of resources and these definitely added to the difficulties of the govt., to
run its own Banking system immediately.

Following the announcement of the independence plan in June, 1947, the Hindus residing
in the territories now comprising Pakistan started transferring their assets to India and
vice versa. The Banks included those having their registered offices in Pakistan,
transferred them to India in order to bring a total collapse of the new state. It had been
decided that the Reserve Bank of India would continue to function in Pakistan so that the
problem of demand and time liabilities, coinage, currencies, exchange rate etc be settled
between India and Pakistan and the Indian Notes would continue to be legal tender in
Pakistan till 30th September, 1948. Again due to certain differences between Indian
Pakistan, the Indian Govt. withheld Pakistan's share of Rs.75 core in forward and
subscribed heavily to the Govt. of Pakistan to the tide over the crises, Payment was made
to the Govt., by the Bank at a very nominal rate of interest, even before the actual issue of
securities.

At a time when this newly born country was at whirlwind of crises, it was HBL which
fulfilled generously the financial needs of all its sectors, paid salaries to the employees of
all Govt. departments, helped in the establishment of State Bank of Pakistan which the
Quaid-e-Azam inaugurated on July 1st, 1948. HBL after partition opened its branches
throughout Pakistan to provide finance and other facilities to the business community.
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In association with HBL, the Govt. sponsored Pakistan Finance Corporation Limited for
financing of cotton. The Bank helped handsomely in the construction of WARSAK DAM
PROJECT, WAPDA, & K.D.A. by provided finance and other facilities.

HBL first international branch was established in Colombo, Sri Lanka in 1951 and Habib
Bank Plaza was built in 1972 to commemorate the bank’s 25th Anniversary.

With a domestic market share of over 40%, HBL was nationalized in 1974 and it
continued to dominate the commercial banking sector with a major market share in
inward foreign remittances (55%) and loans to small industries, traders and farmers.
International operations were expanded to include the USA, Singapore, Oman, Belgium,
Seychelles and Maldives and the Netherlands.

On June 13, 2002 Pakistan's Privatization Commission announced that the Government
of Pakistan had formally granted the Aga Khan Fund for Economic Development
(AKFED) rights to 51% of the shareholding in HBL, against an investment of PKR
22.409 billion (USD 389 million). On February 26, 2004, management control was
handed over to AKFED. The Board of Directors was reconstituted to have four AKFED
nominees, including the Chairman and the President/CEO and three Government of
Pakistan nominees.Another innovation introduced by HBL is the evening Banking cash
long after the crossing of normal Banking hours. It was also the first in making available
such new facilities as Gift Cheques, Rupee Traveler’s Cheques, Credit Card System,
short term and long term schemes for small businessmen.
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CORPORATE INFORMATION

Auditors
KPMG Taseer Hadi & Co.
Chartered Accountants

Registered Office
4th Floor, Habib Bank Tower
Jinnah Avenue
Islamabad, Pakistan.
Phone: 051-2872203 & 051-2821183
Fax: 051-2872205

Head Office
Habib Bank Plaza
I. I. Chundrigar Road
Karachi - 75650, Pakistan.
Phone: 021-2418000 [50 lines]
Fax: 021-9217511

Registrars
THK Associates (Pvt.) Ltd.
Ground Floor, State Life Bldg No. 3
Dr. Ziauddin Ahmed Road
Kara
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HBL Board of Directors (BOD)

NAME DESIGNATION

Sultan Ali Allana CHAIRMAN

R. Zakir Mahmood PRESIDENT & C.E.O

Mushtaq Malik DIRECTOR

Ahmed Jawad DIRECTOR

Yasin Malik DIRECTOR

Moez Jamal DIRECTOR

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ORGANIZATION HIRERCHY OF HBL

President

Board of Directors

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Assistant Vice President

Officer Grade I, II, III

Clerical Staff

Non Clerical Staff

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HBL PRODUCT & SERVICES

HBL product and services are divided into two main divisions

 Individual Customers

 Business Customers

INDIVIDUAL CUSTOMERS
With a customer base of 5 million and a network of more than 1,450 branches in
Pakistan, HBL is the largest private bank in the country. Our network means that we are
geographically closer to our customers than any other bank. This gives us the insights
needed to provide a variety of products that directly reflect customer needs.

HBL caters to all market segments, offering products that are as diverse as the people we
service. We remain resolute in our commitment to provide products that are competitive
and services that are exemplary, needs and works closely with you to realize your goals.
HBL provides the following products and services to meet its individual customer
requirements. Product and services that includes in Individual Customers are

 Car-to-Car
 Car Loan
 Credit Cards
 Deposit Accounts
 Banc assurance
 Debit Card
 Phone Banking
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 Mutual Funds

HBL Car-to-Car
HBL CarToCar is a revolutionary car financing offer. It makes the car of your
choice affordable and practical with a buy back guarantee. HBL CarToCar offers
matchless features and unique options at the end of the lease. Now you can drive a new
car at the end of every two years.

HBL Car Loan

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

HBL Credit Cards

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

HBL Deposits Accounts:

HBL offers a wide range of accounts suited to meet individual customer needs.

Terms Accounts
Offered in a variety of tenors with deposits as low as Rs. 10,000.

Savings Accounts
HBL’s Saving Accounts cater to individual saving habits
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Current Account
Current Account offered the features that meet daily banking needs.

Foreign Exchange Accounts

Offered in multiple currencies with interest paid on a quarterly basis

HBL Bancassurance:
HBL and New Jubilee Life Insurance Company Limited (NJLI) introduce Amaan
(Retirement Plan) and Tabeer (Child Education & Marriage). These products have been
designed keeping HBL’s customer base as the focus and will provide life insurance along
with an investment option.

Amaan-Retirement Plan
A pension plan that offers attractive investment returns.

Tabeer- Children Education

An Insurance plan that enable parents to cover education and marriage costs.

HBL Debit Card:

HBL Visa Debit Card allows you to pay for your purchases directly from your bank
account. You don’t have to carry cash and your monthly statement provides you with a
complete record of all your transactions so you can manage your expenses with ease.
It has following prominent features
 No Interest
 Ease & Security
 No Liability
 International Recognition and Acceptability
 Spending Limits
 Free Account Statement
 24 Hour Customer Service
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 Global Customer Assistance Service

HBL Phone Banking

Your bank is just a phone call away. You can now call HBL Phone Banking and save a
trip to the branch. Your query will be resolved in a single telephone call from anywhere
and at anytime.

BUSINESS CUSTOMERS
HBL has a long history of being a partner of growth for business and industry. We
provide tailored banking solutions to business customers of all sizes in a wide range of
industries. We cater to the needs of a broad spectrum of clients. To do this, the business
banking group is segregated by the size of the customer. For customers with an annual
turnover between PKR 50 million to PKR 300 million, our Commercial Banking group
provides a wide range of products that meet specific customer needs. The Corporate
Banking Group focuses on personalized services to large corporate borrowers who need
tailored facilities. The Corporate Bank manages a diverse portfolio, being an active
player in a multitude of sectors including textiles, sugar, leather, pharmaceuticals,
fertilizer, petrochemicals, power, aviation, automotive, telecom, oil and gas and FMCGs.
The Investment Banking Group is a market leader. It provides innovative capital strategy
solutions to major local and multinational entities.
For Business Customers HBL provides
 Corporate Banking
 Commercial Banking
 Investment Banking
 Islamic Banking
 Cash Management
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 Zarai Banking
 Global Treasury
 Asset Management

CORPORATE BANKING

HBL Corporate Banking Group comprises a seasoned team of Relationship Managers

(RMs) to meet the demanding service standards of large corporations. A long history of
financing and nurturing relationships in Pakistan has given HBL a unique insight,
enabling us to provide timely and effective financial solutions for our customers to meet
the growing challenges of a global economy.

If you are a corporate customer, with a turnover of at least PKR 300 million, we have a
range of solutions designed to help you with your banking needs. Our RMs has the
expertise you need to create tailored financial solutions catering to the specific
requirements of your business.

Whether establishing a new venture or expanding an existing business, our team

understands your banking needs and works closely with you to realize your goals.

Services

We provide the following service to meet your funding requirements

 Working Capital Finance, including Overdraft, FE Loans, etc
 Pre and Post Shipment Export Financing (PKR and USD based)
 LMM Funding
 Receivable Discounting
 Islamic Banking Facilities
 Cash Management Services
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 Trade Services including letter of Credit, Letter of Guarantee and Standby Letter
of Credit, etc.

COMMERCIAL BANKING
HBL’s Commercial Banking Group targets medium sized companies with a turnover of
at least PKR 50 Million. Our business units are located in Karachi, Lahore, Faisalabad,
Sialkot, Gujranwala and Peshawar. Each unit is dedicated to service business clusters
located within these cities.

We have the ability and the resources to meet the needs of our business with our pro-
active, responsive and experienced Relationship managers who are committed to
understanding your business.

We cater to the needs of a broad spectrum of clients. To do this, the business banking
group is segregated by the size of the customer. For customers with an annual turnover
between PKR 50 Million to PKR 300 Million, our Commercial Banking group provides a
wide range of products that meet specific customer needs.

Services:
We offer financing for the following

 Working Capital
 Procurement of Inventor
 Receivables
 Procurement of Machinery
 Expansion of production facilities
 Import of raw materials
 Exports
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 Guarantees

INVESTEMENT BANKING
HBL offers full-service Investment Banking capabilities to its client. This year alone,
HBL has closed over thirty transactions with a cumulative worth of over USD 2 billion.
This is a testament to the out-of-box thinking and the innovative products we bring to our
customers.

The Investment Banking Group functions in three specialist business areas:

 Project Finance

 Debt Capital Markets & Syndications and

 Equity Capital Markets & Advisory.

ISLAMIC BANKING
Islamic Banking is a growing market segment that offers attractive opportunities to
potential and existing customers. At HBL, Islamic Banking offers Shariah compliant
products and services to meet the short and long term requirements of business and trade.
Islamic Banking provides Ijarah (leasing) for vehicles, plants and machinery to meet long
term customer resource requirements. Murabaha (local and Import) facilities are provided
to meet the short-term financial needs of mid-market and corporate customers. HBL’s
Islamic Banking products are fully Shariah compliant and duly certified by independent
Shariah Advisors.
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Service
HBL’s Islamic Banking Branch provides following Services
 Opening of Current Account and Basic Banking Account(BBA)
 Collection of Foreign/ Inland Bills
 Acquisition of Assets on Ijarah
 Purchase of Raw Materials, Semi-Finished/ Finished goods or Store or Spares
through Murabaha
 Foreign/ Inland Remittance
 Utility Bills Collection
 E-banking/ Internet Banking Services

ZARAI BANKING
HBL Zarai Banking Facilities are spread across the country and provide financing
through more than 800 of our branches. HBL’s presence in all agriculture bets of the
country ensures easy access to farmers in rural areas

HBL Zarai Banking provides loans to small-scale land owning farmers as well as large
institutionalized and alliance based finance, enhancing agricultural harvest and, in turn,
economic output of the country

Products and Its Features

HBL Zarai Banking enables farmers to invest in premier quality seeds, fertilizers,
pesticides, agricultural implements and non-farm setups through its various product
programs
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 Crop Inputs

Crop specific finance for purchase of Agri inputs such as seed, fertilizer, pesticide
and other related inputs

 Farm Implements

Finance available for purchase of farm implements & machinery like combined
harvester, sprayers, ploughs, tube wells and other crop-related tools/implements.

 Tractors/ Agricultural Vehicles

Finance available to individual farmers, self-employed tractor operators, providing

the option to select vehicles from a range of different manufacturers

 Livestocks

Finance available for feed, medicines, raw material, raising charges and other related
activities

 Poultry

Finance available for all poultry related activities including poultry farm
construction/equipment, hatchery plant & machinery, poultry feed, poultry medicines,
composite feed production, poultry processing and other related activities

 Fish Farming

Finance are available for inland fish farms as well as deep-sea fishing. This includes
procurement of boat, fish locating equipment, nets & ropes, ice maker, fish farm
water solution, hatchery construction/equipment, purchase of medicines / feed and
other related activities
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 Group Lending

Joint finance facility for a group of farmers with small land holdings for working
capital requirement

CASH MANAGEMENT:
HBL offers a comprehensive platform for customers to avail Cash Management Services
throughout Pakistan. HBL Cash Management Services reduce the cash turnaround of
your company, thereby making its cost efficient.

Advantages

 Centralized Collections/ Funds Transfer

 Centralized Payments/ Disbursements
 Customized MIS Reporting
 Centralized Customer Support through IT/Operations

Products and Services Collection

 Easy Collect
 Standing Instruction via Debit Authority (SIDA)
 Outward Bills for Collection (OBC)

Payments

 Salaries/ Expenses
 Online Cheque Payments (Vendor Payments)
 Utility Bill Payments
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E-Banking/ Internet Banking

 Electronic MIS reporting through email

 Viewing of account statement through E-Banking Services
 Dedicated Customer Support Officers for Query Handling and Reconciliation.

ASSET MANAGEMENT
HBL Asset Management Limited - A Wholly own subsidiary of Habib Bank Ltd. Was
incorporated on 17 February, 2006 as a public limited company under the Companies
Ordinance 1984 and was licensed for Investment Advisory and Asset Management
Services by Securities and Exchange Commission of Pakistan on 3rd April, 2006.

HBL DEPARTMENTS
HBL is performing its activities through the following functions
1. Deposit Department
2. Clearing Department
3. Advances Department
4. Foreign Exchange Department
5. Remittance Department

DEPOSIT DEPARTMENT
The function of Deposit Department of Habib Bank is to collect deposits from the
customers. Following are the types of deposits offered by the Habib Bank

i. Current Deposit
ii. Saving bank Deposit
iii. Profit and Loss sharing account
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iv. Fixed deposit

v. Foreign currency deposit
vi. Cumulative deposit certificate

1. Current Deposits:
In Current deposit bank facilitate the client to deposit or withdraw money as and when he
likes. He may thus deposits or withdraws several times in a day if he likes. Usually the
bank allows this and service charges are deducted by the bank and current deposit
account

2. Saving Bank Deposits

This type of account is for those people who want to make small savings. This type of
account is opened with Rs 100. In this case deposits can be made only up to a costing
amount and with drawls are allowed twice a week. If the depositors want to withdraw
money more than Rs 15000, a notice of 7 days must be required.

3. Profit and Loss Sharing Account

This type of accounts is one step towards the Islamisation of Banking system in Pakistan.
Under such types of accounts the bank allows no interest to the customers. The executive
board of the bank declares profit or loss every year. PLS saving account having running
minimum credit balance of Rs 100 would be eligible for sharing Profit/Loss of the bank.
The rate of profit or loss on PLS saving accounts shall be determined by the bank at the
close of each half year.

4. Fixed Deposits:
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In this type of account a certain amount is deposited for a certain time period such six
months, 2 years or longer of that. A fix deposit receipts is issued in the same of the
depositor. The receipt is signed by the officer in charge and the bank manager. A notice is
given to the depositor requesting the depositor to withdraw his money or to renew this
deposit. The interest allowed on fixed varies with the period for which the deposits are
made.

5. Foreign Currency Accounts

Foreign currency account is opened by depositing foreign currency. In HBL you can open
foreign currency account in
 US dollar
 Pound Sterling
 Japanese Yen
 Deutsche Mark

BOOKS RELATING TO CUSTOEMRS

a. Pay-in-Slip
When money is to be deposited in the bank the pay in slip is to be filled. The object of
this book is to provide the customers with the bank acknowledgement for receipt of
money to be credited his account

b. Cheque Book
A Cheque book contains a number of cheques, which is given to a customer upon written
request and after making the payment for the cheque book. It enables a customer to make
withdrawal from his account for make payment to various parties by Issue of Cheques.

c. Pass Book:
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Passbook is a copy of the customer account as it appears in the book of the bank. The
clerk in this book records balance. This concept of maintaining the passbook is not in
practices because of the computerization system.

GROUND FOR CLOSING THE CUSTOMERS ACCOUNT

The banker may close the account of the customers due to the following reasons

 Notice by a customer
 Customer’s Insolvency
 Customers Insanity
 By order of Court
 Unsatisfactory operation

a. Notice by customer

The banker closes the account of the customer on the application of the customer for
closing his account.

c. Customers Insanity

If the customer becomes insane or mental, it termites the banker’s authority to act as
customers agent. Since the banker customer relation comes to an end, in such a situation,
it is usually considered that the banker’s authority to pay his customer’s cheque is
revoked by notice of Insanity. However, the bankers treat their customers as it unless a
fairly inclusive evidence of the customer’s Insanity is available to them

d. Order of Court

A court of law may serve a banker with an order in garnish proceeding. In execution of a
degree prohibiting him from honoring a customer’s cheque.
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e. Customer Insolvency

Insolvency is civil death therefore, the insolvent adjusting loses his rights receiver or
liquidator as the banker receives the notice of insolvency of the adjusting or petition filed
for adjusting a filled customer Insolvency.

CLEARING DEPARTMENT
1. Introduction
2. Clearing House
3. Advantages of Clearing House
4. Function of Clearing Department
5. Procedure of depositing cheque
6. Types of cheques collected by clearing department
7. Scrutiny of pay in slip
8. Procedure after scrutinizing

INTRODUCTION
Every bank acts in 2 ways
1. Paying Bank
2. Collecting Bank

Here in theory no legal obligation on a banker to collect cheques, drawn up to other

banks for a customer. It is however, an important function of crossed cheques. A large
part of this work is carried out through the bankers clearing house wherever it is
established
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CLEARING HOUSE
A Clearing House is the place where representative of all the bank get together for the
purpose of offsetting the Inter Bank Indebtedness arising from the transfer of deposits by
a customer of a particular bank to another bank

ADVANTAGE OF CLEARING HOUSE

The advantages are manifold. It prevents the cost and waste involve in collection each
and every cheque and claim. Which a banker holds against another, across the counter
with all the danger of loss in the transit incumbent upon it. Great economy is also
achieved in the employment of liquid cash by setting the difference by simpler transfer of
credit from one account to another, there by minimizing the necessity of holding large
cash balances, clearing house works under the control of state Bank of Pakistan .A banker
has no legal obligation to collect cheques drawn upon other banks for the customers,
though modern banks have assumend this important function of their own choice.
Thereore, is is very important that since they have assumend this function, the banker
should be very careful in their performance, otherwise they will face more difficulties,
So, if they provide this facility when the cheques are crossed.

FUNCTION OF CLEARING DEPARTMENT

The following are the main functions of clearing departments

 To accept transfer deliveries and clearing cheques form the customer of the
branch and to arrange for their collection
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 To arrange the payment of cheque drawn on the branch and given for collection to
any other branch of Habib bank of Pakistan or any other members, or sub-
members of the local clearing house.

 To collect amounts of cheques drawn on members, sub-members of the local

clearing house, sent for collection by those Habib Bank Limited, branches which
are not represented a local clearing house.

PROCEDURE OF DEPOSITNG CHEQUES IN CLEARING

DEPARTMENT
Whenever a customer wants to deposit cheque, etc, he fills a pay in slip and hands it over
the counter along with the instruments he wants to deposit with the instrument he wants
to deposit with bank. As far as possible the customer desire that on of the staff member
fill in a slip for him, he should be obliged promptly.

The smaller portion of the perforated pay in slip is handed over to the depositor and the
portion becomes the regular portion of a credit voucher.

TYPES OF CHEQUES COLLECED BY CLEARING DEPARTMENT

a. Transfer cheques: are those cheques, which are collected and paid by the same branch
of the bank
b. Transfer Delivery Cheques: are those cheques, which are collected and paid by two
different branches of a bank, situated in the same city.
c. Clearing Cheques: are those cheques in which the payee( person who deposit cheque
for collection) and the drawer of a cheque maintain the account with different banks.
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When the cashier receives the cheque, which are to be deposited for clearing purpose, the
following points must be verified.

The Instrument should be neither stale nor post dated.

 If the instrument is crossed, no negotiable, it can be for the third party (can be
endorsee of an order cheque, or a holder of bearer cheque)
 The instrument should not bear any unauthorized alteration
 The amount in words and figures should be the same
 The instrument should be drawn on a member, or any of local branches
 If the cheque is crossed “ Account payee only” or “Payee’s Account”, it should
only be accepted for collection for the payee’s account
 The cheques or drafts should not be crossed specially to anyother bank
 A cheque payable to one of the joint account holder should not be collected for
the joint account without the payee’s endorsement, or consent
 A cheque payable to a firm should not be accepted for credit to a partner’s
account
 A cheque drawn by a customer in the capacity of an agent, Attorney, or Manager
of his company or firm should not be collected for credit to his personal account
 Pay orders, although negotiable, should not be collected for third parties
 Do not collect an instrument in the accounts of an agent, or of the servant of the
payees of endorsee of the instruments
 Mall transfer Receipts pay slips and treasury receipt should not be collected for
persons other than the payee
 If an account is new, or the balance or operation of the account is not satisfactory,
satisfy yourself about the titles of the customer to the instruments before the titles
of the customer to the instrument before accepting the deposit
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 Branch agent’s permission should be obtained before accepting a third party

cheque or treat for credit of the account of the staff member
 If the payee is a government department, government official, or a trust account,
the instrument cannot be collected, nut for the payee’s account
 If the payee of an instrument is Habib Bank Limited, it can be collected for credit
of the drawer’s account, or the amount of instrument may be utilized as desired by
the drawer in writing
 Cheque payable to a trust, account should not be collected for credit to at trustee
account
 All the endorsement should be regular, and on endorsement should be missing.
After the cashier scrutinizes the cheque he must also scrutinize the pay in slip

SCRUTINY OF PAY-IN-SLIP
Following steps are involved in the scrutiny of pay in slip

1. On both the counterfoil and the pay in slip following should be checked
a. Date of Deposits
b. Account number
c. Title of the account
d. The cheque/ number and the drawer bank/name
e. Total amount in words and figures

2. Customer should use separate pay in slip for transfer, transfer delivery and
clearing cheques

3. The amount noted should be the same as the amount of the instruments, and the
amount in words and figures should be same

PROCEDUCRES AFTER SCRUTINIZING

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After scrutinizing the cheques and other deposit instruments and paying slip at the
counter the following procedure is under taken by cashier if he is satisfied.

 Fixing the stamp

 Scruting, and receipt by the authorized officer
 Returning the counter foil to the depositors
 Certificates and confirmation by the officer-incharge of the department
 Separating the cheque into transfer delivery, and clearing cheque

PROCEDURE OF CLEARING AT CLEARING HOUSE

The mechanism of setting interbank indebtedness operates as follows:
Clerks representing various banks meet at a common place, the clearing house. Every
day. Every clerk then delivers to the others the cheques and the other claims which their
respective banks hold against his banks hold against is bank cheques and other
documents dishonored will be returned to the representative of the respective bank. The
various amounts of receipts and deliveries are now added up and a balance is struck there
in and the final settlement is effected by the supervisor of the clearing house by
transferring balance kept and the central bank by these various clearing banks.

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

INTRODUCTION
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The function of advances department is to lend money in the form of clean advances,
against promissory notes, as well as secured advances against tangible and marketable
securities. The banker prefer such securities that do run the risk of general depreciation
due to market fluctuations
Common Securities for the banker’s advances are as under

1. Guarantees

When an application for advance cannot offer any tangible security, the banker may rely
on personal guarantee to protect himself against loss on advances or overdraft to the
applicant

2. Mortgage

A mortgage is the transfer of an Interest in specific immovable property for the purpose
of security the payment of money advanced or to be advanced by way of loan, and
existing or future debt, or the performance of an engagement which may rise to a
pecuniary liability. The Transferor is called Mortgagor, and the transferee is Mortgage.

3. Hypothecation

When property in the shape of goods is changed as security for a loan from the bank the
ownership and possession is left with the borrower, the goods are said to be
hypothecated. The essence of hypothecation is that neither the property in the goods not
the possession of them are possession is left with the borrower, the goods are said to be
hypothecated the essence of hypothecation is that neither the property in the goods not
the possession of them are possessed by the lender, but the security is granted by means
of letter of hypothecation, which usually provides for a banker’s charge on the
hypothecation goods
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4. Pledge

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

5. Promissory Note

Sometimes promissory note is also accepted as a security. “ A promissory note is an

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

TYPES OF ADVANCES
The advance which are given by Habib Bank Limited are as under

1. DEMAND FINANCE

Demand finance is those advances which are allowed in lump sum for a fixed period and
repayable lump sum or gradually in installments.

TYPES OF DEMAND ADVANCE

a. Demand Finance (Packing Credit)

Scheme introduced by SBP for exporter of carpet, surgical instrument at zero percent rate
of interest. While banks provides at concessional rate of interest
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b. Loan ordinary (Demand Finance to Students)

Qarz-e-Hasana Scheme loans are allowed to the students, teachers without any interest or
markup with the recommendations of the MPA or MNA

c. Demand Finance (Staff)

Loans are offered to the staff of the following four categories

 House building loans against mortgage of property

 Loan for purchasing vehicles
 Loan equivalent to month’s salary

2. RUNNING FINANCE (OVERDRAFT)

Running Finance previously called Overdrafts are advances, which are generally given to
meet temporary requirements of the customers. A good customer use the bank running
finance limit as a mean of protecting his credit in the market and as a line of security
defense to meet his commitments

TYPES OF RUNNING FINANCE

 Unsecured

Under such type of overdraft the bank pay upon the personal security of the customer’s
mentioned on the customer’s account

 Secured

Under this type of overdraft the bank allow his customer to withdraw more than his
deposits after giving security against the amount overdrawn
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i. Share certificate, Saving Certificate

ii. Deposits
iii. Mortgage of property
iv. Guarantee of person

 Cash Finances (Commercial Loans –Inward)

This type of loans are given against following

i. Against Locally manufactured goods
ii. Cash finance against Rice and Paddy
iii. Against pledge
iv. Against Commodities Beside advances against the above commodities parties for
advances against other commodities like tobacco, oil, may approach bank

 Against Trust Receipts

To obtain adjustment of an overdue account or to facilitate the borrower to self the pledge
good it is sometimes necessary to deliver a portion of the goods, against the trust receipt
and promise form the borrower to deposited the sale proceeds with the bank

 Small Loans

Loan is allowed to contractor clearing and forwarding agents

 Finance against foreign Bills (FAFB)

The advance facility is allowed both to local foreign bills and is classified as under

FAFB (local) advance against Railway receipts and truck receipt, a company with bills of
exchange and Invoices are given under this head
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FAFB (Foreign) advances agaist the foreign bill, covering bills of exchange, bill of lading
airway, etc.

 Agriculture Loans

Loans are given to the farmers with holding up to 25 acres for meeting their short,
medium and long term Agricultural Production requirement. Such as
a. Agricultural Inputs
b. Tube wells
c. Live Stock Farming
d. Land improvement

 Industrial Loans

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

FOREIGN EXCHAGE DEPARTMENT

 International trade is growing and with the development of International trade it

has become more imperative

 For countries to devote more and more attention to the complicated mechanism
of Foreign Exchange. It is more important in case of developing countries; it is
need of time, that a country should conserve its foreign exchange resources.

Meaning of Foreign Exchange

The foreign exchange term refers to the principles that determine the rate of exchange. It
covers following three senses:
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 The mechanism or system by which international obligations or indebtedness are

fulfilled
 The currency of one country is exchanged for that of another
 The principles on which the people of the world settle their debts to one another

Foreign Exchange Transactions

 The foreign exchange transactions are usually of two types

 Merchandise transaction: These consist of visible imports and exports i.e. the
purchase of goods for abroad and sale of goods to abroad
 Service transaction: these represent inward and outward payment in respect of
shipping. Insurance, banking and travel services. It includes payment in respect of
interest, dividends, rents and profits etc.
 Un-required transfers: in indicates the payments and receipts from of reign
countries in shape of such items as home remittance by workers abroad, gifts ,
aids etc
 Capital Account Transaction
1. Long Term Capital Transfers:
Those transfers whereby residents of one country acquire securities (Stock and Bonds)
and tangible assets (land etc) in foreign countries with the purpose of earning profits in
future.
2. Short term Capital Transfer:
Those transfers which move relatively quickly from country to country
 For speculative purposes
 To take advantage of difference in interest rates
 As balancing items where a country has a debit or credit balance on current
accounts
 The important examples are
 Money, Gold etc.
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 Holding of commercial credit, bills, cheques etc

 Transaction with IMF(International Monetary Fund)

REMITTANCE DEPARTMENT
Remittance department performs following functions
 Mail transfer (MT)
 Telegraphic Transfer (TT)
 Demand Drafts (DD)

Mail Transfer (MT)

When a customer requests the bank to transfer his money from one branch of bank to
another branch of bank of the same bank or from one city to another city to the same
bank or any other bank. Customer fills the form given by bank. If the customer has an
account with that amount as mentioned in the application form then concerned officer
will undertake the following procedures to make the mail transfer complete

i. Branch Mail Transfer form

ii. Receiving branch Register copy
iii. Issuing Branch register copy
iv. Beneficiary advice
v. Advice to customers

In care where the customer is not account holder of the bank then the customer will have
to deposit the amount which he wants to transfer under Mail. Then the above procedures
will be done.

Telegraphic Transfer (TT)

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This type of transfer is simple. After filling the application form the concerning officer
shall fill the telegraphic transfer form. Then it is sent to the required bank which on
receiving it immediately make the payment to the customer and after wards the voucher
are sent to the bank by ordinary mail.

Demand Draft (DD)

Demand draft is just like cheques and issued when the customer wants to take cash with
him personally.Demand draft can easily be handled whatever amount it has and the
money can easily be taken from the bank when it is presented. In fact, the bank persuades
the customer to transfer money by drafts and avoid the risk of frauds involves in MT and
TT Draft. It is issued only when the bank knows customer and bank has the confidence in
him.

PRODUCT
HBL is offering numbers of Products and Services to its customer. HBL is offering
lucrative schemes, products and services suiting best to the wants and demands of the
customers. Therefore keeping this in view HBL Products and Services are divided into
two main Categories i.e. for Individual Customers and for Business Customers

PRICE
HBL is using offering competitive prices to attract its customers. Different Products and
Services to different income level group are offering by keeping in mind the ease of its
customers.

PROMOTION
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For Promotion Strategy, HBL uses different sources e.g. through TV Commercials,
placing Ads in Newspapers, Broachers, Press Releases, Publications, Sponsoring
Activities and Actively Participate in different festivals or Celebrations.

PLACEMENT
To meet the needs and wants of its Customer, HBL has 1450 branches across the country,
customer base exceeding 5 Million relationships which makes it largest private banking
sector in Pakistan. To facilitate its customers the bank has been changing both the interior
and exterior of the branches with better layout. New furniture and layout of these
branches has become quite helpful in avoiding the long queues. To facilitate timely
services to valued customers, separate utility booths have been set up. HBL has its
branches where there no other banks gone. Most branches in Rural areas are
computerized too.

Human Resource Management

HBL is an organization that provides opportunities for its staff to have a challenging and
rewarding long-term career. To this end the Human Resource Group (HRG) encourages
and motivates its employees to excel in the responsibility that they have in the
organization .It believes that creativity and innovation comes from talent, knowledge and
experience and it is HBL’s endeavor to provide and maintain an environment which not
only nourishes these strengths but also provides opportunities for the staff to have a
career which has multidimensional growth opportunities.
In doing so, HRG has been restructuring and redesigning the overall structure of the
organization, which includes rationalization, cutting down the decision layers,
improvement in staff training and hiring professionals and MBAs at entry-level
management.
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The overall direction of HRG has been towards nurturing the strengths of the human
capital to its maximum with a defining principal to help create a progressive environment
and sustain a thorough commitment of our staff towards focused customer service.
HRG therefore recognizes the need to proactively invest in staff training and develop
courses on a regular basis. Under the umbrella of its Management and Organization
Development Division (MODD) its Management Development Institute (MDI) with its
three fully equipped chapters at Karachi, Lahore & Islamabad regularly conducts and
outsource technical and personal development courses for its all level of staff enabling
them to meet the challenges of the ever-changing business requirements and customer
needs. During 2008, 529 courses, workshops, skill development clinics and seminars in
the disciplines of Service & Attitude, Market Research & Selling, Management &
Communication, Credit & Finance, I.T. & e-Banking, Treasury & Trade Finance, Global/
Domestic Banking Operations and on other diverse subjects were conducted by In / Ex-
House professionally skilled, qualified and certified faculty and industry experts for
10233 people of senior / middle line management & staff carving 1334 days training
days. There is no budget limit for Training and Education at Habib Bank.
HR Group aims to maintain and further improve the service-oriented culture and to make
employment not only satisfying but also enjoyable.

Job Analysis:

The procedure for determining the duties and skill requirements of a job and the kind of
person who should be hired for it is called Job analysis. Job analysis is every important as
job analysis information is used in Selecting and recruiting, compensation, performance
appraisal, training and in resolving other issues which HBL faces. HBL takes Job
analysis services from Sidat Hyder Morshed Association (SHMA) which is the biggest
HR consulting firm in Pakistan. The methods which are used in collecting job analysis
information are
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• The interview
• Questionnaires

The Interview for job analysis:

Interview is a big source in collecting information in the job analysis. Individual

employees, group of employees and supervisors with vast knowledge about jobs are
interviewed. The format of interview is Structured and unstructured. In structured
interview a set of sequence of questions are followed by interviewers and in unstructured
type of interview the interviewer pursues points of interest as they come up in response to
questions.

Questionnaires:

In questionnaire the employees solve the fill out questionnaires to describe their job-
related duties and responsibilities. The formats of questionnaires are either structured or
open ended.

Quantitative job analysis techniques:

Following methods are also used in job analysis which are called quantitative job analysis
techniques

The position analysis questionnaire (PAQ):

A questionnaire used to collect quantifiable data concerning the duties and

responsibilities of various jobs.

The Department of Labor (DOL) procedure:

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A standardized method by which different jobs can be quantitatively rated, classified, and
compared.

Job description:

After getting job analysis information the next step is to describe job description which
contains the points of job identification, job summary, chain of command relationships),
responsibilities and duties, standard occupational classifications and standard of
performance and working conditions.

Job specifications:

After formulating job description the next step taken is job specification in which the
traits of employees are defined who are assumed suitable for the job.

HR manual contains five processes

1. Selecting and Recruiting

2. Training and Development
3. Performance Appraisal
4. Compensation
5. Employee relation

1. Selecting and Recruiting:

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The recruitment and selection process starts with employment planning. This process of
deciding what positions the firm will have to fill, and how to fill them. Personnel or
employment planning embraces all future positions, from maintenance clerk to CEO.

Selecting and recruiting process according to HBL

The diagram below represents the process on which HBL’s selection is based. This gives
an overview to potential candidates as to the steps involved in becoming a part of the
HBL team.

In recruitment process first of all planning session is occurred, in planning session it is

determined that which section HBL will have to fill and how to fill. If there is a vacancy
of executive job then succession planning is done for filling that vacant place.

Analysis of positions and requirement:

After planning it is analyzed that which position is going to be filled and the requirement
is analyze by job analysis.

Identify candidates:
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HBL identifies its candidates by developing the criteria of job description and job
specification and acting upon these criteria job vacancy ads are spread through different
Medias like newspapers and internet.

Outside sources:
HBL uses outside sources for recruitment which are
• Advertising
1. Newspapers (Daily Jung, Nawa-e-Waqt, The Nation, Dawn and Daily Khabrein
etc)
2. Trade and professional journals (Aurora Magazine)
3. Internet job sites (rozee.pk)
• Outside sources of candidates:
1. Sidat Hyder Morched Association works for outsourcing for HBL.
2. College recruitment
3. Employee referrals
4. Walk-ins

Finding internal candidates:

1. Job Posting
2. Rehiring former employees

Prescreening and short listing:

Many candidates apply for job in response to vacancy ads by submitting their CVs.
Selection board goes through those CVs and selects those candidates which initially
fulfill criteria of selection board. After prescreening selection board short lists the
candidates who are considered most suitable for job at initial level on the basis of their
resume.
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Test/ interview:
In this process short listed candidates are called for test and interview according to nature
of their applied jobs.

Selection Interview:
Selection interview is conducted for short listed candidates. A selection interview is the
procedure designed to predict future job performance on the basis of applicant’s oral
responses to oral inquiries.

Formats used in selection interview:

• Structured/Directed
• Unstructured/Non directed

Modes of Interview:
• Penal interview
An interview in which a group of interviewers questions the applicant.
• Structured sequential interview
An interview in which the applicant is interviewed sequentially by several persons; each
rates the applicant on a standard form.

Types of questions:
• Situational:
A series of job-related questions that focus on how the candidate would behave in a given
situation.
• Job related:
A series of job-related questions that focus on relevant past job-related behaviors. These
types of questions are asked from those candidates who have past experience of job.
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• Stress:
An interview in which the interviewer seeks to make the applicant uncomfortable with
occasionally rude questions that supposedly to spot sensitive applicants and those with
low or high stress tolerance. These sorts of questions are asked according to high
designation of candidate.
• Puzzle questions:
Recruiters for technical and finance job use questions to pose problems requiring unique
solutions to see how candidates think under pressure.

Testing:
Organizational performance always depends in part on subordinates having the right
skills and attributes. Keep in view this point HBL tries its level best to hire highly skilled
and suitable employee for each job. For judging these skills HBL conducted some tests of
employees on the basis of
• Reliability
• Test validity
The consistency of scores obtained by the same person when retested with the identical or
equivalent tests is called reliability and the accuracy with which a test and interview what
it purports to measure or fulfills the function it was designed to fill is referred as validity.

Types of test:
Generally two types of tests are taken in HBL
• Tests of Cognitive ability
• Physical tests
o Cognitive test abilities consists of
1. Intelligence Tests
Tests of general intellectual abilities that measure a range of abilities, including memory,
vocabulary, verbal fluency, and numerical ability are intelligence tests.
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2. Aptitude tests
Tests that measure specific mental abilities, such as inductive and deductive reasoning,
verbal comprehension, memory, and numerical ability are aptitude tests.
o Tests of physical abilities
Tests that measure static strength, dynamic strength, body coordination, and stamina are
physical. Job related to guards and deliverers go through this sort of test.

HBL adopts recruitment process as

• Entry level programs
• Experienced professionals
• Campus recruitment
• Rehiring

Entry Level Programs:

HBL’s Entry-Level Programs are structured to ensure that you will quickly assume
responsibility for concrete tasks and important projects. Rotational assignments across
different business units provide a comprehensive and valuable experience in a relatively
short amount of time.

Experienced Level Program:

HBL recruits experienced professionals in all areas of the bank and encourage the
creation and pursuit of innovative ideas. HBL’s dynamic work environment offers
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diverse opportunities to stimulate ongoing employee needs and supports career

enhancement opportunities. HBL encourages you to explore this section to find out about
current job openings and how to submit your resume.

Campus recruitment:

HBL is proud of its ability to nurture individuals and empower them to hone their
talents. HBL size gives itself the unique ability to provide fast growth and significant
responsibility early on in a career with multiple avenues to reach the top.
As part of HBL’s human resource strategy, HBL visits various universities across the
country to induct & groom fresh business graduates every year. Enthusiastic and talented
youth form the backbone of its banking operations and are nurtured to become future
leaders at HBL.
To attract the best young talent, HBL’s resource department employs a pro-active
strategy. HBL actively participates in campus seminars by giving presentations that
highlight HBL’s background, vision, mission, values, recruitment & selection process,
future career prospects and overall business strategies. HBL hires fresh talent on a
permanent basis and offer a wide range of career opportunities across all functions,
including Finance, Marketing, Operations, Information Technology and Human
Resources.

Rehiring Former employees:

It is an internal hiring source. Rehiring the former employees is the process in which
HBL rehires the former employees. But this process is practiced very rarely.
Final Selection:
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After going trough all the processes the best candidates according to HBL’s selection
boards are selected.

Orientation:
Just after final selection and before starting of training process orientation is conducted
for selected employees in orientation new employees are provided with basic background
information about the HBL the basic contents of successful orientation are
o Information on employee benefits
o Personnel policies
o The daily routine
o Company organization and operations
o Safety measures and regulations

2. Training and development:

Training is the process of teaching new employees the basic skills they need to perform
their jobs and development is result of that training.
For training and developing HBL follows five steps process of training and development
 Needs analysis: Identify job performance skills needed, assess prospective
trainee’s skills, and develop objectives.
 Instructional design: Produce the training program content, including workbooks,
exercises, and activities.
 Validation: Presenting (trying out) the training to a small representative audience.
 Implement the program: Actually training the targeted employee group.
 Evaluation: Assesses the program’s successes or failures.
• Task analysis:
In this area a detailed study of a job to identify the specific skills required, especially for
new employees are analyzed.
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• Performance analysis:
After analyze the main tasks required in performing jobs it is verified that there is a
performance deficiency and determining whether that deficiency should be corrected
through training or through some other means (such as transferring the employee). If
there is found some deficiency in performing job then training is highly recommended to
recover deficiencies.
Training methods used by HBL:
• On-the-job Training
• Off-the-job Training
• Apprenticeship Training
• Informal learning
• Effective lectures

On-the-job Training:
Having a person learn a job by actually doing the job is OJT. Methods of OJT are
– Coaching or understudy
– Job rotation
– Special assignments
– Action Learning

Coaching or understudy: It is the OJT method in which employee is coached and taught
by profession that how to do the job in order to meet HBL’s goals and objectives. At
managerial level the trainee works directly with a senior manager or with the person he or
she is to replace; the latter is responsible for the trainee’s coaching.
It is done at all levels of job. New employees are trained through coaching and old
employees are also trained through this method like when some new innovation is
introduced old employees are trained in order to handle that new innovation. In 2008 all
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managers have been trained to operate Misys Software (Automation of service provision
and book management).

Job Rotation: Moving a trainee from department to department to broaden his or her
experience and identify strong and weak points. Job rotation is usually done at
managerial level. HBL’s Manager Associate (MA) program is used for job rotation
training.

Special Assignments: Special assignments are also given to employees for special
training. These assignments are actually related to tasks within the branch by achieving
those tasks assigned by trainer, employee get training.

Action Learning: Management trainees are allowed to work full-time analyzing and
solving problems in other departments. This OJT method is just for managerial level
employees.

Off-the-job Training:
It is the method which is opposite to the OJT. In this method employee does not get
training at his/her work place. This method of training is only for managerial level
employees. Off-the-job training methods are
• Case study method
• Outside seminars
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Case study methods: special case studies are given to employees which contains some
dilemma about banking sector. By solving those case study problems employee gets
training to take bold and effective decision in crucial situations.

Outside seminars: HBL encourages its employees to participate in the seminars

arranged by banking sectors not just in the Pakistan but also beyond the boarders. By
participating in outside seminars employee gets authentic knowledge about the new
horizons of banking sector which is useful for HBL and makes it leading bank in
Pakistan.

Apprenticeship Training:
A structured process by which employees become skilled workers through a combination
of classroom instruction and on-the-job training. It is actually combination of OJT and
lectures delivered to employees. It may be for both levels of managerial and fresh
employee. In this method employee is first given the lecture about his/her job and after
that implementation of lecture in practical field is observed.

Informal Learning:
The majority of what employees learn on the job they learn through informal means of
performing their jobs on a daily basis.

Effective Lectures:
Lectures about jobs are also delivered. These lectures are delivered to new employees as
well as senior level employees and managerial level too. In these lectures employees are
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prepared for facing new challenges in the banking sectors and also told them how to
achieve those challenges.

Succession Planning:
It is actually management developing program. Management development is attempt to
improve current or future management performance by imparting knowledge, changing
attitudes, or increasing skills. In order to achieve management development, succession
planning is done. Succession planning is a process through which senior-level openings
are planned for and eventually filled. The main purposes of succession planning are
Anticipate management needs, Review firm’s management skills inventory, Create
replacement charts, Begin management development. HBL’s Management Trainee (MT)
program deals with succession planning. MT is defined in the following section of
Training and developing methods.

Training and development programs at HBL:

HBL uses following programs for training and development
• Management Trainee
• Management associate
• Cash officers
• Internships

Management Trainee:
HBL’s Management Trainee (MT) program looks for highly motivated individuals who
exhibit the potential to excel as future leaders. The program is geared towards providing
challenging work assignments complemented by a learning component for select
individuals from reputable universities. At HBL, the MT program offers extensive
interactive classroom training, on the job rotations and personal mentoring from senior
management to provide a comprehensive learning experience. The objective of the
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program is to realize potential and translate the experience into a successful banking
career.

Management associate:
HBL’s Management Associate Program is a training and rotational program focused on
dealing with branch banking requirements. It provides accelerated development
opportunities across HBL’s branch network of Retail, Corporate & Commercial banking.
During this program, candidates are assigned with challenging business scenarios to
enhance their critical and analytic skills. Another crucial element of the program ensures
that managerial skills are honed and developed. This provides associates with the
expertise required to handle supervisory and administrative tasks that will result in the
development of successful business managers.

Cash officers:
HBL’s Cash Officers Program catapults successful candidates to the front lines of the
bank. Candidates in this program are the bank’s ambassadors and must have exemplary
skills in dealing with clients. The program involves an extensive one-month training
period based on branch banking operations before placement in the branches. Energetic
and focused graduates from HEC recognized institutions with good communication and
interpersonal skills qualify for HBL’s Cash Officers Program. Before being placed at
HBL branches, these individuals must exhibit a proven ability to add value and act as
agents of change.

Internships:
HBL’s Internship Program offers promising students with the exciting opportunity to
apply their classroom learning experience to real life corporate assignments. Through the
program, internees can support their career goals by using the internship as a launching
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pad for creating contacts with professionals in the field and identifying their own
competencies to build a successful career with HBL.

3. Performance Management and appraisal:

Evaluating an employee’s current and past performance relative to its performance
standards is called performance appraisal.
A process that consolidates goal settings, performance appraisal, and development into a
single common system to ensure that employee’s performance is according to company’s
aims is called performance management.

Performance management and appraisal at HBL:

HBL’s performance management and reward systems ensure that goals are met in an
effective and efficient manner. HBL defines a clear path for you to contribute to the
organization’s overall goals, peppered with regular reviews and feedback to help you
gauge your progress. At HBL growth is not a function of time but rather of performance.
As your performance improves, the role that you play within the organization will
accelerate to reflect your input. HBL generally uses BARS (Behaviorally anchored
rating scale) it is an appraisal method that uses quantified scale with specific narrative
examples of good and poor performance.

Performance Appraisal form of HBL:

HBL’s performance appraisal form contains two sheets, one is FORM B2 and other is
FORM B3. FORM B2 contains appraisal for Clerical staff at branch or Field Offices
there are two main headings Area/factors and level of achievement points. Level of
achievement point contains five points ratings A (4), B (3), C (2), D (0-1) and N/A.
AREA/factors contains five kind of factors which are
• A-Productivity
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• B-Individual \attributes
• C-Technology
• D-Customer Service
• E-Personal

Each area is further categorized in different factors.

Area A-Productivity contains
1. Job knowledge
2. TD clearing/Bills Ledger Posting
3. Timely Lodgment of Clearing
4. Followed Return unpaid cheques
5. Nothing of Stop Payment Instruction
6. Volume of Work Handled
7. Accuracy & Attention to Detail
8. Willingness & Ability to work with other units/people
9. Ability to write Effectively
10. Adoptability of new assignments
11. Deposit Mobilization /saving/current CPDC etc
12. Number of fresh account arranged
13. Reduction in customer complaint
14. Hajj application target
15. Timely Balancing of branch ledger/books etc
16. Accuracy in counting/cash handling & counting speed
17. Receiving of payments of utilities
18. Dispatch of requisite statements
19. Maintenance of guns in order
20. Zero theft
21. Delivery of letter/Dak in time
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22. Quality of work

23. Speed of work
24. Filing and record keeping
25. Typing/data entry speed
26. Typing/data entry accuracy

B-Individual Attributes contains

1. Professional/technical knowledge & competency
2. Initiative (eagerness to learn, enlarge knowledge)
3. Reaction to responsibility
4. Sense of responsibility
5. Oral communication Ability
6. Written communication ability
7. Sorting of notes
8. Cash excess/shortage situation
9. Performing under pressure
10. Ability to work without supervision
11. Willing to work after office hours

C-Technology contains
1. Knowledge of computer
2. Knowledge of internet & E-mail

D-Customer contains
1. Courtesy to Customer
2. Rapport with customer
3. Creative response to customer needs
4. Business sense (maximum revenue/ minimum cost)
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E-Personal contains
1. Health & energy
2. Appearance
3. Integrity & loyalty
4. Grooming
5. Manner of speech
6. Attitude
7. Intelligence
8. Leave record
9. Attendance record
10. Punctuality

Each factor is marked tick against level of achievement and in the end total points scored
is written in the specific box. Also the signatures of appraisee and appraiser are taken.

FORM B3:
This form contains two big boxes. First box is about Development Plan/ Supervisor
comments. In this box supervisor gives comments about appraisee strengths and further
appraisee’s development needs (need to improve academic & professional qualification).
Second box is called overall assessment box. In this box appraiser gives the overall
performance grade to appraisee according to B2 form and the grade is given in form of
A, B, C, D. Then comments of appraisee is also taken in form of agree/disagree. Then
overall assessment is reviewed by reviewer and reviewer gives its comments too, but it is
not necessary. After it final acceptance of appraisee is also taken along with signatures.

Following is some brief detail about appraisal areas

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A-Productivity:
Productivity is actually about the performance of employee in the clerical field. It
indicates that how much effectively and efficiently an employee performs its duty and
how much employee is committed with the achievement of organizational goals and
objective. Following factors of Productivity are defined briefly;

Job knowledge: It is first and basic factor of productivity. This factor shows that how
much employee has awareness about his/her job.

TD clearing/Bill ledger posting: This productive factor indicates the ability of employee
about ledger posting of HBL. His shows how much an employee is expert and clear in
indicating or posting of ledger regularly.

Timely Lodgement of clearing: This is the job in which the employee of HBL is to
present the cheques of other banks, which are given by customers for depositing in their
accounts in the State Bank before 10 o’clock. In this assessment it is determined whether
employee is punctual in presenting cheques to State Bank in the specific time.

Follow return unpaid cheques: In this job the employee is to return the unpaid cheques
to the bank before 3 pm which are rejected by State Bank due to some incompleteness
like absence of signatures, inefficient money in the account of customers or other reasons
cause refusal of cheques by State Bank. In performance appraisal it is assessed that
whether employee is fulfilling his job well or not and on the basis of his performance he
is given points.

Noting of Stop payment Instruction: In this job employee notes the stop payment
instruction due to lose of cheques by customer. If customer loses his/her cheques then
he/she has to tell about lost cheques to the branch of HBL and in response the employee
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is to note down the stop payment and also feed this information in the computer for
database record in order to restrict misuse of the lost cheques.

Volume of work handled: In this assessment it is noted that how much volume of task
or work is being handled by employee and on the basis of volume of work handled the
employee gets points of achievement against the block in appraisal form.

Accuracy & attention to detail: In this job it is indicated that how much an employee is
attentive and accurate in noting down the job whether he/she is performing at desired
level or not.

Willingness and ability to work with other people/unit: In this section it is noted that
how much the employee is willing and how much he/she has the ability and quality to
perform well in the group of people or unit and it is determined is he/she is able to
perform in the group or not if a group task or assignment is given.

Ability to write effectively: In this assessment it is noted that how much employee has
effective skills of writing which matters in reporting or hand written application.

Adoptability of new assignments: In this job it is determined how much employee is

able adopt new assignments related to his/her job. Does he/she have ability to adopt new
challenges in his/her job?

Deposit Mobilization/saving/current CPDC etc: In this factor it is assessed that how

much the employee is responsible for depositing certificates of saving, current and CPDC
(Crore Pati Deposit Certificate) purchased by customers.
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Number of fresh account arranged: In this job the employee is to arrange new accounts
by feed the data in the database system and issuing cheques books. In this assessment it is
appraised that how much the employee has arranged newly opened accounts and on the
basis of number the employee is granted with grade on the appraisal sheet.

Reduction in customer complaint: This job is related with customer service member. In
appraisal it is defined how many complaints of customers are reduced by employee.

Haj application target: This job is related with Islamic Banking section of HBL. Each
employee is given with the target of submission Haj application. On the basis of
submitted target Haj application employee gets point ratings on appraisal form.

Timely balancing of Branch Ledger/books: In this job employee has to balance the
branch ledger on the daily basis. On the basis of balancing of ledger in time the employee
is given grade points on appraisal sheet.

Accuracy in counting/cash handling & Counting speed: This determines that how
much employee is able to count or handle the cash efficiently and how fast cash is
counted by the employee.

Dispatch of requisite statements: In the bank the employee of related job is to dispatch
the balanced Ledger/Books, financial statements and number of accounts before authority
of branch on monthly basis. While appraising employee it is defined that how much
he/she is efficient and punctual in his/her job.
Maintenance of Guns in Order: In this assessment it is determined that how much the
employee is active in performing the order of his/her head. The obedience of the
employee to his/her head in the bank task is counted in this assessment.
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Zero Theft: In assessment the employee is assessed according to handling of his/her

honesty in his/her job. It is counted that how much he/she has been committed with theft
in performing job.

Delivery of Letter/Dak in time: This job is about the deliverer of letter/Dak to the one
bank to other banks, one branch to other branches of HBL and dispatch of cheques to
State Bank. The employee is graded with points according to punctuality in delivery in
the appraisal form.

Quality of work: In this assessment the employee is given with grade points according to
quality of his/her performance in his/her specific job.

Speed of work: In the assessment of job this factor shows that how much fast and
efficient an employee is in performing his/her task related to his/her field.

Filing and record keeping: In this job the employee is to file and record the data of
customer for database. According to effectiveness of record keep employee gets points in
appraisal form.

Typing/Data entry speed: This is about computerized record keeping. In this factor it is
assessed that how much the employee has speed in typing data.

Typing/Data entry accuracy: In record keeping it is noted that how much accurate the
employee is in typing data for database.

B-Individual Attributes:
This area of factor is about the employee’s attribute or properties in performing job.
Followings are factors of individual attributes;
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Professional/technical knowledge & competency: In this attribute it is checked that

how much the employee has professional skills about his/her job and how much he/she is
competent has technical knowledge about his/her job in the bank.

Initiative (eagerness to learn, enlarge knowledge): In this factor it is noted that how
much employee is eager to learn new thing about job and how much he/she is interested
in enlarging knowledge of job. Initiative factor is very important in job field cause initiate
new task in the field is good attribute of professional employee.

Reaction to responsibility: In this attribute it is assessed that how the employee reacts
when some responsibility is given to him, it is noted whether he/she reacts warmly and
professionally or considers new responsibility as a burden.

Sense of responsibility: in this attribute it is assessed that how the employee takes the
responsibility whether takes it professionally and serious or carelessly.

Oral Communication Ability: In this factor it is assessed that how much employee has
ability to communicate orally with the customers and head. Speaking skills are counted in
this appraisal.

Written Communication ability: In this attribute the ability and writing skills of
employee is assessed.
Sorting Notes: In this factor the ability of sorting and handling of currency notes are
judged. It is assessed that whether employee is sorting notes according to sequence.

Cash excess/shortage situation: Cash handling is noted in this factor. It is a negative

appraisal. Some time employee gives or receives more or less amount by customers, if
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he/she gives more than real amount then he/she has to compensate this money from
his/her own pocket.

Performing under pressure: In this factor the performance of employee is assessed

under pressure situation. It is checked that how much he/she is capable and confident to
perform under pressure circumstances.

Ability to work without supervision: In this factor it is checked that how much the
employee is able to perform his/her duty efficiently without supervision and it is also
assessed that whether supervisor has to keep eye on his/her to get the work one.

Willing to work after office hours: In this factor it is noted that how much employee is
dedicated towards his/her job even after office hours.

C-Technology:
This is the area of appraisal in which the capability of using of technology of employee is
assessed. Followings are major factors of area of technology

Knowledge of computer: The knowledge of using of computer is counted in this factor.

Knowledge of e-mail & internet: The knowledge of internet and sending/receiving is

assessed in this factor of technology area.

D-Customer Service:
This is the area of appraisal in which the motivational and dedicated level of employee
toward customer service is assessed. Followings are factors of this area;
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Courtesy to customers: in this factor of customer service area it is assessed that how
much employee is courteous towards customers, whether he/she is deals with customers
politely or harshly.

Rapport with customer: In this factor it is assessed that whether employee cashes the
cheques of customer within time or he/she makes customers wait due to his/her personal
gossips etc.

Creative response to customer’s needs: In this factor it is judged that how creatively
and professionally the employee responses to customer’s needs regarding banking
system.
Business sense: This factor determines the sense of employee regarding business that
whether he/she knows about economic terms and their uses.

E- Personal:
This is the area in which personality of employee is evaluated. Factors of this area are as
following;

Health & Energy: In this factor of personal area physical and mental health of
employee is evaluated and also the use energy of performing in job.

Appearance: In this factor the appearance of employee is counted. The dress code and
manner of dressing is assessed.
Integrity and Loyalty: In this factor the loyalty and integrity of employee is assessed.
The dedication and commitment of employee while performing duty is counted. Honesty
and faithfulness with job and company is also assessed.
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Grooming: In this factor the development and grooming of employee’s personality is

counted.

Manner or Speech: In this factor of personality the manner of speech or manner of

talking to others are assessed. Manner of speech should be polite and understandable.

Attitude: In this factor the employee gets point on the basis of positive and professional
attitude in his/her personal life.

Intelligence: In this factor of personality the intelligence of employee is evaluated.

Attendance record/Leave Record/Punctuality: The employee is given grade points on

the basis of regular and timely attendance according to time table.

4. Compensation:
The salaries, rewards, bonuses, and incentives on the basis of job and performances are
compensations.

Compensation at HBL:
HBL’s focus is on attracting, developing and retaining the best in the business by
offering market driven compensation and benefits packages. HBL’s compensation and
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benefits strategy combines the need to maintain a high performance culture along with
market competitiveness. Annual benchmarking exercises are conducted to stay abreast
with industry standards. According to performance each employ gets benefits and
compensation. Time does not matter only performance matters at HBL. Employees are
paid in two forms
• Direct payments
• Indirect payments
Direct financial payments: Pay in the form of wages, salaries, incentives, commissions,
and bonuses.
Indirect financial payments: This mode of payment is not related to cash payments like
medical, insurance, residence, car, car fuel etc.

5. Employee relation:
Employee Relations involves the body of work concerned with maintaining employer-
employee relationships that contribute to satisfactory productivity, motivation, and
morale. Essentially, Employee Relations is concerned with preventing and resolving
problems involving individuals which arise out of or affect work situations.
The environment at HBL is cultural, ethical and challenging that that encourages
creativity and commitment among employees. HBL fosters a work environment where
employees can realize their potential whether locally or in the international arena. Thus,
HBL enables its employees to achieve their professional goals while keeping in synch
with the bank’s overall objectives.
HBL believes in two skills for employee relation
 Interpersonal communication
 Conflict management

Interpersonal communication skill: At HBL the first skill for managers to understand
and practice is interpersonal communications, because it is the foundation for all actions
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in the workplace and it allows the manager an opportunity to build relationships with the
overall workgroup without alienating anyone in the work environment. Working with
diverse groups of people requires a tremendous amount of interaction. If these
interactions are positive, they can help create the right workplace climate, attitudes,
beliefs and behaviors. Keeping in view these all points interpersonal HBL emphasizes on
strong interpersonal communication skill for effective accomplishment of goals.

Conflict management: In HBL the second skill for managers to leverage, is conflict
management. It is actually conflict resolving approach. Learning to leverage this skill
helps in resolving employee relations issues quickly and effectively, and creates greater
satisfaction with the workgroup. In this skill manager let his/her subordinates to speak
and say whatever they feel during working with manager. Manager cares employees
emotions and feelings.

SWOT ANALYSIS OF HBL

SWOT is an acronym for strengths, weaknesses, opportunities and threats. SWOT is
related to what the present position of an organization. SWOT tells you how strong an
organization is, what are its weak areas, what are the opportunities for its better
performance and how is the organization threatened by others. SWOT analysis is based
on the assumption that if managers carefully review such strengths, weaknesses,
opportunities, and threats a useful strategy for ensuring organizational success will
become evident
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HBL is considered to be a very sound bank in the financial circles. It’s a bank where the
customers can safely keep their money as long as they want.
Following is a list of SWOT of HBL

Strengths

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

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

 HABIB BANK is a well established bank enjoying long history of over 65 years
of experience and profitable operation.
 HBL 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 its privatization. During this process more than 1,600 employees were
relieved under a 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’
branches give a poor view.
 HBL has the ability to bring innovative products and services like personalized
service, electronic funds Transfer, sophisticated financial products such as
electronic banking, auto-teller machines and evening banking.
 The Bank’s Rupee Traveler Cheques have been market leaders for the past six
years.
 HBL’s car to car financing scheme is unique in auto loan segment.
 Habib bank is an internationally recognized name in banking services and
products.
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 HBL has forged strategic alliances with international banks for expanding its
network further, both locally and internationally.

Weaknesses

A weakness is defined as an area in an organization where the organization is not as good

at doing something as its competitors or a thing which an organization lacks thus putting
the organization at disadvantage in comparison to its competitors. Based on the above
definition, HBL has the following weaknesses.

 Lack of communication between bank and customers about terms and condition

of products and services. Like centralization of cheque book issuing process.

 Employees at branch level are not properly motivated to work by heart. They take

the all routine activities as a boring job.

 Most of the employees lack managerial training as they are not properly educated.

Due to seniority, they have moved up on the hierarchy line to Grade-I, II or III

positions having hardly bachelor degrees. This type of senior staff cannot apply

the modern and innovative techniques of management in decision making.

 Mission of HBL is not well defined.

 Though HBL is second largest bank in Pakistan, yet the fact remains that it is not

market leader as NBP. Its total assets are always less than NBP total assets.

 Now as it is a privatize bank that is why GOVERNAMENT support to HBL

decreased as it was in past

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Opportunities

An opportunity can be defined as a change in external environment which if properly

exploited with the organizational strengths will result in enhanced sales, market share, or
income. Using its strengths, HBL can avail the following opportunities. Opportunities
require explanation therefore I have used headings instead of arrows

E-Banking

Generally speaking, three factors, quickness, easiness and cheapness have become the
catchwords for the competitiveness and usefulness of all the business operations.
Particularly it is commonplace today to say that banking is undergoing a radical
transformation. The symptoms are new products, new players, new channels etc. This
transformation is taking place across all sectors of the banking industry. That is why
Habib bank urgently needs to improve their ability, to think strategically about IT
investments. Only those banks that use their technology resources effectively have the
opportunity to secure real competitive advantage in this fast-changing industry through
real product or service differentiation.

High mark up rates

Of late markup rates have increased considerably. Present rates are 4% above KIBOR
i.e. 16% appx. High markup rate has decreased the interest of people in loaning from
from banks. Habib bank can increase its income by offering loan at lower interest rate
than other banks.

ONLINE BANKING
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It is doing banking transactions through our home P.C. The banks that do business
through net have Websites. The customer clicks into the Website and gets the history of
the bank. Then he can demand the necessary application form through the net. He fills in
the form and passes it on to the bank. The Online banking is fast gaining ground in
Pakistan. Some software companies are also offering network-banking facilities. So
Habib bank should focus heavily on providing online banking faculties to its customers.
Currently it is doing the same.

CORPORATE BANKING TERMINAL (CBT)

Large corporate customers can log into the bank's database and have access to their
accounts/transactions from their business houses. This facility has still not been started
for customers in Pakistan. So Habib can focus on that.

AUTOMATIC TELLER MACHINE (ATM)

This system is known as "Any Time Money" because it allows customers who have an
ATM card to withdraw money at any time from the bank without interacting with human
teller. Since the ATM machine can be installed anywhere like petrol bunks, markets,
railway stations etc, and can well be linked to the main computer. It allows customers to
transact with the bank 24 hours a day and 365 days a year. They allow the customers to
transfer money to and from accounts to view account information, to receive cash. It can
also be used to deposit cheques and cash into the accounts. No bank in Pakistan is
offering this service currently. So an opportunity exists for Habib bank to differentiate.

Rate of return
The range and choice of products available & offered by the commercial banks is limited.
Rates of Return / Profits on Deposits are so low and unattractive that very limited options
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are available to the depositors. They do not match the current rate of inflation. HBL
differentiate and increase it’s deposit by offering attractive rate of return on deposits.

Threats

Threat can be defined as a change in external environment which if not met with proper
strategies will result in loss of revenues, market share, or income. In the context of HBL’s
external environment, the following potential threats exist:

 Other private commercial bank with sound profitability is also a threat to HBL

e.g. UBL, Alfalah, MCB etc

 The Rupee Travelers Cheque (RTC) sales volumes may be affected on account of

regulatory restriction imposed by SBP on issuance of large value denominations.

 For the last of 2 to 3 years, Pakistan is facing economic and political instability

which is a big threat.

 Foreign banks are flourishing in field of consumer financing.

 Afghan war and Iraq war has a deep effect on the economy of Pakistan, which has

affected HBL.

 Increased regulations from State Bank of Pakistan may affect its business.

WORK DESCRIPTION

I have started my Internship Program from July 1 2009 to August 28 2009 in Habib Bank
Limited (HBL) wah cantt. The branch where I done my internship was completely
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computerized that all things to be done through computerized system. During my

Internship Period I’ve learned and performed various tasks at different time period.

In the beginning I worked in customer service and Account department of the branch,
where I learned that how to open different deposits accounts in the bank, and what are
their procedures and requirements. Although a week later i moved towards the Bills &
Remittance Department but with the passage of time and time to time I guide and inform
the clients who are interested in opening account in the bank and help them in filling of
the form.

I have learned some basic functions of banking i.e. how deposit amount are carried out in
the bank. It is done in two ways. One is Customer wants to deposit through Cash and
other is if he wants to deposit through Cheque. In first case where Customer wants to
deposit through Cash a voucher is filled for the customers with the descriptions of
Account number, amount deposited title of the account and the name of the customer
having that account. The depositor put a signature on the voucher and the amount is paid
to cashier who stamped it and the voucher consisted of two parts, one is given to the
customers and the other part remains with the bank. In this type of deposit, the voucher is
received by writing the amount as BY CASH. And In Second situation where customer
wants to deposit through Cheque the same procedure is followed but in the voucher the

Cheque number through which the amount is deposited is written against writing BY
CASH. It becomes my whole time duty during my internship program to guide and help
people in filling their deposit slips. Along with this I was given the assignment of issuing
Cheque books. It is issued to those customers whose accounts are operated by the
concern bank. Cheque books in two different categories are issued which are as follows
i.e. Cheque book for Current account and Cheque book for Profit & Loss Sharing
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Accounts (PLS). The cheque book was issued to Customer after 3 working days from the
time of applying for cheque book.

In Remittance department I had learned its basic operation. Remittances are sums of
money sent in payment for or against something. The remittance department is mainly
concerned with these payments. Remittances are divided into: Inward remittances refer to
payment in favor of the banks account holders inward remittance includes all Cheque
received for collection. Whereas Outward remittances are all payments made to other
people on behalf of the account holders in the bank. Outward remittances can also be
done for none account holders who deposit cash in the bank and remittance tools are
prepared for them. Among the work done by the clearing department is receiving credit
advises in favor of the banks account holders and also debit advises against the account
holder’s accounts. There are various tools of remittances to the customers who want the
facility of remittance. One is the Demand Draft, & made for the customer. This mode of
remittance is normally used for payment to out of city beneficiaries. They are normally
also drawn on banks near the beneficiary’s residence. Other is Pay Order, mostly used
when a customer wants to pay someone who is in the same city as he uses and who
prefers non cash payment for any service or goods that he/she sold. This remittance
facility is providing to the general public as a whole..

My leaning experience
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My experience during my internship was nothing short of being fabulous. It developed a

practical attitude in me and realized me the importance of the job assigned to me. The
most important things that I learned from my Internship are

Dealing with different peoples in different styles

 Practical exposure of workplace.

 Practical experience of working practices related with to field of education
 Managing things and creating balance in my work and personal life as well
 I found the six week internship period short so that I can’t go in depth of each
section. The duration should be more than 6 weeks.

Internship is an evitable activity and the experience that is acquired from the internship is
spectacular and this experience helps a lot in professional carrier.

RECOMMENDATIONS & CONCLUSION

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During my Six Weeks Internship at HBL wah cantt, I observed many things at the Bank
such as its working procedures, policies, and many other aspects of practical nature of a
big organization like Habib Bank Limited. On the basis of all these observations I came
to the conclusion.

As we see that this world is very dynamic and changing, so any organization, financial or
non-financial has to be innovative in order to be in a run for competition for the products it
develops or the services it provides to its consumers.

Habib Bank Limited is one of the oldest and more settled banks of Pakistan in fact it
remained in the business of financial services for more than the life of our country.
Probably it was one of the most established Banks at the time of independence of
Pakistan. During its course of history Habib Bank contributed a lot in the development
and fostering the growth of the economy in the country.

Despite all these facts there are some areas, which need to be improved, like it should
computerize all its Network of branches in order to meet the requirements of a new era
and to fulfill the needs of 21st century. Some of the main recommendations are given
below,

 A Special Training Camp of employee should send abroad, so that they can be
more production for HBL by studying and analyzing banking practices abroad
 An Outline/Timetable for Internees working should be defined by the
organization that how many days an internee will work in each department and
who is his/her counselor
 In over-crowded areas, the setup should be made in such a way that it maintains
discipline in branch
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 ATM facility should be improved as today’ HBL ATM service is not as much
quick, and mostly remained disconnect from its main Network
 Serious action should be taken on Customer feedback to improve HBL Services
 Modern forecasting techniques should be adopted in order to meet the dynamic
and competing business environment
 All branches should be computerized, and proper training program should be
given to employees to use new technology easily.
 Downsizing should not be done, reducing the number of employee, taking more to
handle customers
 Proper Sitting arrangement for customer ease should be provided
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Bibliography
Material on these books, articles and websites has helped me a lot in preparation this
report

Books

 HBL Corporate Profile 2008

 HBL Annual Reports 2008 and 2009 first Quarter

Articles & Documents

 BANKING SECTOR REFORMS IN PAKISTAN:

http://www.ishrathusain.iba.edu.pk/speaches/BANKING_SECTOR_REFORMS.pdf
 www.encyclopedia.com/doc/1G1-61864366.html

Websites

 www.hbl.com
 www.habibbankltd.com
 www.hblasset.com
 www.investopedia.com/articles/07/banking.asp
 wiki.answers.com/Q/Evolution_of_banking