INTERNSHIP REPORT ON

HABIB BANK LIMITED PAKISTAN

SUBMITTED BY: MUHAMMAD IRFAN ALI
LOGID: mc070402338
Pho!" 03#3$%747208
M&'( &))*!++: +,!)'*-&m./,&hoo0com
1 mc070402338/230!)3045
A))*!++: 6&*) " 2 Moh&(& 7h&h K3*&'
MBA 8FINAN7E9
2007$0:
SUPER;ISED BY: MAHER AMEER MUHAMMAD
DATE OF FINAL REPORT
#0$04$200: <o #0$0%$200:
NAME OF THE UNI;ERSITY
;IRTUAL UNI;ERSITY OF PAKISTAN

;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
1
DEDI7ATION
A((&h A(m'=h<, ( whose claim (to obedience) cannot be satisfied by those who
attempt <o )o +o>9
& His Beloved People.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
2
A7KNO6LEDGEMENT
Thanks to ALLAH Almighty for giving me such a beautiful opportunity and enabling me
to complete my project. Thanks to my loving parents and guardian who help me a lot at
every phase of my life encouraged me in the days of depression and sacrificed for my
better future.
! am very thankful to "r. "aher Ameer "uhammad my supervisor who has helped me a
lot in finding an appropriate project and for his reviews encouragement and support.
! am thankful to all of my teachers and my class fellows and friends whom
#heerfulness and guidance is an asset for me .! am especially thankful to the bank staff
and particularly.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
$
E?!c3<'2! S3mm&*,
H%L established operations in &akistan in 1'() and moved its head office to
*arachi +ur first international branch was established in #olombo ,ri Lanka in
1'-1 and Habib %ank &la.a was built in 1')2 to commemorate the bank/s 2-th
Anniversary. H%L has the largest #orporate %anking portfolio in the country with an
active !nvestment %anking arm. !t encompasses product offerings and services in 0etail
%anking and in recent years #onsumer %anking as well.
,atisfying customers are the only way to stay competitive in today1s "arket
&lace. The balancing act between what customers want and what the H%L can provide
must be optimi.ed in order to ma2imi.e H%L/s long3term profits.
H%L is e2panding its presence in principal international markets including the 4* 4A5
,outh and #entral Asia Africa and the 6ar 5ast.
7ith a domestic market share of over (89 H%L was nationali.ed in 1')( and it
continued to dominate the commercial banking sector with a major market share in
inward foreign remittances :--9; and loans to small industries traders and farmers.
!nternational operations were e2panded to include the 4,A ,ingapore +man %elgium
,eychelles and "aldives and the <etherlands.
H%L is currently rated AA :Long Term; and A31= :,hort term;. H%L is the first &akistani
bank to raise Tier !! #apital from e2ternal sources.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
(
I<!*+h'4 c!*<'-'c&<!
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
-
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
>
T&@(! o- co<!<
I<*o)3c<'o 8
B*'!- h'+<o*,1 O2!*2'!. o- <h! o*=&'A&<'o #2
N&<3*! o- <h! o*=&'A&<'o #8
B3+'!++ 2o(3m! 2#
P*o)3c< ('!+ 22
7om4!<'<o*+ 37
O*=&'A&<'o&( +<*3c<3*! 4#
O*=&'A&<'o&( H'!*&*ch, ch&*< 43
N3m@!* o- !m4(o,!!+ 44
M&' o--'c!+
44
7omm!<+ o <h! o*=&'A&<'o&( +<*3c<3*! 4B
P(& o- ,o3* '<!*+h'4 4*o=*&m 47
A @*'!- '<*o)3c<'o o- <h! @*&ch .h!*! I )') ,o3* '<!*+h'4 47
S<&*<'= &) !)'= )&<!+ o- ,o3* '<!*+h'4 48
Th! )!4&*<m!<+ ' .h'ch I =o< <*&''= &) <h! )3*&<'o o- ,o3* <*&''= 48
T*&''= 4*o=*&m 4:
I<*o)3c<'o o- &(( <h! )!4&*<m!<+ 4:
D!<&'(!) )!+c*'4<'o o- <h! )!4&*<m!< ,o3 .o*5!) ' 4:
S<*3c<3*! o- <h! F'&c! D!4&*<m!< 70
D!4&*<m!< h'!*&*ch, 70
Acco3<'= +,+<!m o- <h! o*=&'A&<'o 7#
F'&c! +,+<!m o- <h! o*=&'A&<'o 73
Mo@'('A&<'o o- -3)+ 73
G!!*&<'o o- -3)+ 7:
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
)
So3*c!+ o- -3)+ 8#
7*'<'c&( &&(,+'+ 88
R&<'o &&(,+'+ :B
O*=&'A&<'o &&(,+'+ ' com4&*'+o .'<h '<+com4!<'<o*+ #0#
F3<3*! 4*o+4!c<+ o- <h! o*=&'A&<'o0 #03
S6OT &&(,+'+ o- o*=&'A&<'o ' <h! @3+'!++ +!c<o* #04
7oc(3+'o 1 *!comm!)&<'o+ -o* 'm4*o2!m!< #08
R!-!*!c! 1 So3*c!+ 3+!) ##0
ANNECES ###

;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
?
Introduction
Habib %ank Ltd is a %anking H%L which is engaged in #ommercial @
0etail %anking and related services domestically and overseas. H%L 5njoy
289 of the market ,hare in &akistan. Today H%L is truly the bank of the people
&roviding its customers convenience and ,atisfaction all +ver the world. Habib
%ank &la.a the tallest building in &akistan is the proud symbol of H%L leadership
!n &akistan/s corporate ground. H%L is currently uses rate AA and A1=.
ESTABLISHMENT:
Habib %ank Limited was established by "r.!smail
Habib :Late; on August 2- 1'(2 at %ombay. !t was the first
"uslim %ank of the sub3continent. !t was 5stablished with a
&aid up capital of 0s. 2.-millon
BRAN7HES:
<umbers of branch of H% L 1($).in the form of 1(8? retail
%anking branch 1? commercial banking division 18
#orporate center 1 !slamic banking.
R!='+<!*!) o--'c!:
H&@'@ B&5 L'm'<!) 4<h F(oo*D H&@'@ B&5 To.!*
E'&h A2!3! I+(&m&@&)D P&5'+<&0
Pho!: 0B#$2872203 10B#$282##83
F&?: 0B#$287220B
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
'
H!&) o--'c!A
H&@'@ B&5 P(&A& I0I0 7h3)*'=&* Ro&)
K&*&ch' F 7B%B0 P&5'+<&0
Pho!: 24#8000 GB0 L'!+H
F&?: 02#$:2#7B#
A3)'<o*+:
T&+!!* H&)' Kh&(') 1 co0
8A m!m@!* -'*m o- KPMG I<!*&<'o&(9
Sh0 S3(<& T*3+< B')=0 No0 2
B!&3mo< Ro&)
K&*&ch'$7BB30
P&5'+<&
A0F0 F!*=3+o 1 7o0
8A m!m@!* -'*m o- 4*'c! .&<!* ho3+! coo4!*+9
S<&<! L'-! B3'()'= #$7
I0 I0 7h3)*'=&* Ro&) K&*&ch'
P&5'+<&0
A3)'< 7omm'<<!!:
M*0 S'5&)&* M3+<&-& Kh& 7h&'*m&
M*0 E@*&h'm S')&< M!m@!*
M*0 A+&* H3++&' Sh&m+' M!m@!*
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
18
Board of Directors:
,ul t an Al i Al l ana 7h&' *m&
"oe. B amal D' *!c< o*
Ahmad B awad D' *!c< o*
0. Caki r "ehmood P*!+ ' )!< 1 7EO
Das i n "al i k D' *!c< o*
,aj i d Cahi d D' *!c< o*
"us ht aE "al i k D' *!c< o*
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
11
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
12
M&&=!m!<
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
,ohail "alik
Froup 52ecutive 0isk "anagement
N&3m& K0 D&*
Froup 52ecutive !nternational %anking @
#5+ Habib Allied !nternational %ank
&lc.4*
A@') S&<<&*
Froup 52ecutive
0etail @ #onsumer %anking
I&-&* AA'A O+m&'
Froup 52ecutive Human
0esources @ +rgani.ational Gevelopment
M3)&++'* H0 Kh&
Froup 52ecutive
#hief #ompliance +fficer
S&('m Am(&'
Froup 52ecutive Audit
%00 @ !nvestigation
A+(&m G&)'<
Froup 52ecutive
Asset 0emedial "anagement
Yo3+3- N&+'*
Froup 52ecutive
!nformation Technology
N&3+h!! Ahm&)
H%L ,ecretary
@ Head of Law Givision
R0 I&5'* M&hmoo)
&resident @ #5+
Froup 52ecutive
#orporate %anking
A,&A Ahm!)
Froup 52ecutive
#hief 6inancial +fficer
E&m'( IJ@&(
Froup 52ecutive "!,D, H
%usiness &rocess 0e3engineering
E&m'( A0 Kh&
Froup 52ecutive
Flobal +perations
F&'A& M'<h&
Froup 52ecutive
Flobal Treasurer
M'*A& S&(!!m B&'=
Froup 52ecutive
#ommercial %anking
K&+h'- Sh&h
Froup 52ecutive
!nvestment %anking
A(, M3+<&+'*
Head of "arketing
@ %rand "anagement
1$
Overview of the Organization
H'+<o*,
The branches of Habib %ank in &akistan
H%L &la.a in *arachi
"ohammed Ali Binnah &akistan1s founding father reali.ed the importance of financial
intermediation while he was campaigning for the creation of a separate homeland for the
"uslims of !ndia. He persuaded the Habib family to establish a commercial bank that
could serve the !ndian "uslim community. His initiative resulted in the creation of Habib
%ank in 1'(1 with H+ in %ombay :now "umbai; and fi2ed capital of 2-888 rupees.
The bank played an important role in mobili.ing funds from the "uslim community to
finance the All3!ndia "uslim League1s campaign for the establishment of &akistan. Habib
%ank also played an important role in channeling relief funds to the people hurt in the
communal riots and violence that preceded the departure of the %ritish from !ndia.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
1(
After &akistan was born in 1'() Habib %ank at the urging of Fovernor3Feneral Binnah
moved its headEuarters to *arachi &akistan1s first capital. This gave *arachi its first
commercial bank of the newly formed !slamic 0epublic of &akistan. The Habib family
owned and managed the bank until the &akistan government nationali.ed it on 81 Banuary
1')(.
1'-1 H%L opened the first of $ branches in ,ri Lanka.
1'-2 H%L established Habib %ank :+verseas;.
1'-> H%L opened first of - branches in *enya.
1'-) or 1'-? H%L opened a branch in Aden.
1'>1 H%L opened the first of what would become > branches in the 4*.
1'>( H%L opened the first of ( branches in "auritius and a branch in
%eirut.
1'>> H%L opened the first of ? branches in the 4A5.
1'>' H%L opened first of $ branches and an +%4 in %ahrain. However
H%/s branch in Aden is nationali.ed.
1')1 H%L opened an +%4 in ,ingapore and a branch in <ew Dork.
1')2 H%L opened the first of 11 branches in +man. H%L constructed
Habib %ank &la.a in *arachi to commemorate the bank/s 2-th
Anniversary.
1')( The government of &akistan nationali.ed H%L and H%L merged
with Habib %ank :+verseas;.
1')- H%L opened a branch in %elgium. H%L also merged with ,tandard
%ank a &akistani bank.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
1-
1')> H%L opened a branch in the ,eychelles the first of two branches in
%angladesh and a branch in the "aldives.
1')' H%L opened a branch in the <etherlands.
1'?8 H%L opened a branch in &aris and another in Hong *ong.
1'?1 H%L established <igeria Habib %ank with (89 ownership. H%L
also opened a representative office in Teheran.
1'?2 H%L opened a branch in *hartoum.
1'?$ H%L opened branch in the *arachi 5&C and a branch in !stanbul.
1'?( H%L established Habib American %ank in <ew Dork with a branch
each in "anhattan and Iueens and a 4, !nternational %anking 6acility.
H%L also opened a branch in #alifornia.
1'?) H%L opened in Australia.
1''1 The Habib Froup established a separate private bank the %ank AL
Habib after private banking was re3established in &akistan. H%L opened a
branch in the 6iji !slands and took over the &aksistani branches of failed
bank %##!.
1''2 !n <epal H%L acEuired 289 of Himalayan %ank.
1''- H%L established a representative office in #airo.
1''8s H%L established Habib 6inance :Australia; and Habib 6inance
!nternational Limited Hong *ong.
2888 H%L established Habib #anadian %ank.
2882 +n Bune 1$ 2882 &akistan1s &rivati.ation #ommission announced
that the Fovernment of &akistan had granted the Aga *han 6und for
5conomic Gevelopment :A*65G; a subsidiary of the Aga *han
Gevelopment <etwork rights to -19 of the shareholding in H%L against
an investment of &*0 22.(8' billion :4,G $?' million;.
H%L1s 4* operation came close to being shut down due to regulatory
issues with the 6inancial ,ervices Authority. The issue was resolved by
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
1>
converting the operations to a subsidiary. Then Habib %ank Limited and
Allied %ank of &akistan merged their operations :Habib contributed its >
branches and Allied its (; into a new bank called Habib3Allied
!nternational %ank in which Habib %ank has a '8.- percent shareholding
while Allied %ank has '.- percent. ,imultaneously with the transfer of
business to the new bank both allied and Habib %ank close down all
independent operations in the 4*.
288$ H%L received permission to open a branch in Afghanistan.
288( +n 6ebruary 2> the Fovernment of &akistan handed over
management control of Habib %ank to A*65G. The %oard of Girectors
was reconstituted to have four A*65G nominees including the #hairman
and the &residentH#5+ and three Fovernment of &akistan nominees
288> H%L sold the operations that it had established in 6iji in 1''1 to
%ank of ,outh &acific.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
1)
Vision
,imply the vision of Habib %ank is mass banking. At the time of formation it
changed its motto from class banking to mass banking. 52pedite the economic
growth of the country through spreading the banking services to the doorsteps of
mass people so that they get institutional financial help and participate in the
economic activities of the country.
Mission
To be the trendsetter for innovative banking with e2cellence and
perfection.
To be the best performing bank in the country and the region.
To e2ceed customer e2pectations through innovative financial products @
services and establish a strong presence to recogni.e shareholders1
e2pectations and optimi.e there rewards through dedicated workforce.
*eeping ahead of other competitors in productivity and profitability. To
attain budgetary targets fi2ed in each area of business.
Objectives
Like other business organi.ation the core desire of Habib %ank is to ma2imi.e
the profit through saving @ loaning money to the life of the common people.
The +bjectives of the Habib %ank is given belowA
I0 B*o&) Go&(:
As a nationali.ed commercial organi.ation Habib %ank belongs to the people.
!t implies that it stands for meeting the banking needs of the mass people of
the society.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
1?
II0 O4!*&<'= Go&(:
!n compliance with the very nature of the organi.ation the objective in mind
the bank aims at e2celling Euality and diversified services. To fulfill its
mission Habib %ank has its main objectives as followingsA
To provide banking services to people.
To earn profit.
Act as a media of e2change.
To contribute to gross domestic product :FG&;.
"aintain a satisfactory deposit mi2.
To promote and boost up business sector inside the country.
To help to grow entrepreneurship.
!ncrease loan portfolio diversification and geographical coverage.
To mitigate unemployment problem.
&rovide finance speciali.ed services to the e2port.
To help to boost economic development.
To help in development and industriali.ation of the country
S!*2'c! A<<'<3)!+:
Habib %ank is a service organi.ation. !t will live and prosper on the
Euality of service it provides. Hence Euality of service must be maintained
at all levels.
%anks image with people should be identified on the Euality and diversity
of services that the people aspire to receive.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
1'
As a dynamic bank it will remain in search of new field of activity in line
with people economic need. ,uggestions by customers and other people
shall receive proper attention so as to help identify new activity or
improve upon present activities.
The bank shall maintain healthy competition with other banks aiming at
e2celling services in meeting economic needs of the people.
Nature of the organization
Acc!4<'= D!4o+'<+
The primary function of H%L is to accept and receive surplus money from the people
which they willingly deposit with the %ank. Like all other %anks H%L also take
incitation to attract as much depositor/s as it can. They offer different deposit schemes
to its customers which includes the following types. These schemes as follow.
73**!< D!4o+'<+
This type of account is often maintained by the business
#urrent deposits are those deposits on which %ank offers no interest but it allows the
account holders to withdraw their money at any time they want without giving any
prior notice to the community which reEuires large sums of money very often for
their business transaction.
P*o-'< &) (o++ +h&*'= &cco3< 8S&2'=9
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
28
,aving deposits or &L, is those accounts on which %ank offers a lower rate of
interest. After the !slami.ation of the %anking system in the country it has been given
the name of &L, saving account. The %ank undertakes to repay deposits on demand
up to a certain amount.
F'?!) )!4o+'<+
6i2ed deposits are those which can be withdrawn only after the maturity period. !n this
type of deposits the %ank allows high rates of interest depending on the time period of
deposits. The shorter the period of deposits the less will be the interest and vice versa.
M&5'= Lo&+ &) &)2&c!+
The second most important function of H%L is to provide financing facility to its
customers. These loans and advances are usually made against document of title to goods
marketable securities and personal securities. H%L charges different interest rates on
these loans and advances depending on the terms and conditions settled with the
customers. 6ollowing types of loans and advances are made available to the customers.
D!m&) F'&c!+
Gemand finances are those finances which are given to the borrowers for specified period
and can be called back without any prior notice. !t is a single transaction finance. !t can
be long term medium term and short term. "ark up is also charge. Here the amount can
be withdrawn once at the time of disbursement.
R3'= F'&c!
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
21
H%L provides these finances against the security of current assets like shares bond cash
crops like cotton and other cashable commodities. The borrower/s account is opened with
the %ank with the amount of the total loan provided or allowed to the borrower. The
borrower is allowed to withdraw any amount from his account within the specified limit
and interest is charged only on the amount actually withdrawn.
O2!* D*&-<
This type of facility is usually given to very loyal clients. This allows them to withdraw
over and above the amount held by them in their account and interest is charged only on
the amount which is withdrawn in e2cess of the amount actually held in their account.
D'+co3<'= @'((+ o- !?ch&=!
Giscounting bills of e2change can also be considered as a form of loan because it allows
the holder to get the bill encased before the maturity period. A bill of e2change is usually
issued by the importer of goods to the e2porters which allows them to be paid in their
own currency after three months time. !f the e2porter needs the money before the
maturity of the bill of e2change he can get his money from the %ank by discounting the
bill of e2change. The %ank utili.es their surplus funds by discounting the bills of
e2change at their market worth i.e. %ank pay to the holders of the bill on amount eEual to
their face value after deducting interest at the current rate for the maturity period of the
bill. +ur stated objective of being a premier emerging market bank.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
22
Business volume
Habib %ank Limited :H%L; &akistan/s biggest !&+ of 0s 12 bn in terms of value
will be formally listed today at the *arachi ,tock 52change :*,5;. This listing would
further add 0s 1>2 bn to the banking sector market capitali.ation of nearly 0s $)88
bn if we simply take the offer price of 0s 2$-Hshare as a pro2y. &akistan/s banking
sector has already got the biggest share of 2'9 in the market capitali.ation of *,5
and with this listing it will increase up to $$9.
7e have signaled our positive outlook for the bank in our detailed J&akistan/s
banking jewel/ !&+ report on H%L mainly due to 1; our forecasted #D8) 0+5 of
2)9 which is also in line with high performing peer banks vi.. "#% %ank @ 4nited
%ank :4%L; 2; satiating 189 yield on earning assets $; presence of more than ?89
low cost deposits and mere (.29 weighted average cost on remunerative deposits (;
greater market share of fee3based income of 1>9 vis3K3vis peer banks -; management
thrust on retail banking >; strong brand eEuity. +n the flipside recent draft circular by
,tate %ank of &akistan :,%&; regarding withdrawal of forced sale value :6,L;
facility on illiEuid securities in taking provision coverage against non3performing
loans :<&Ls; is a blow to H%L. H%L has relatively low provision coverage against
historical <&Ls and we e2pect the bank to make more provisioning to the tune of 0s
-.2 bn that could impair our #D8) 5&, forecast of 0s 2>.?-Hshare.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
2$
Product ines
S!*2'c!+ K P*o)3c<+ O--!*!) @, <h! @&5
7&* <o c&*
7&* Lo&
7*!)'< 7&*)+
D!4o+'< Acco3<+
B&c&++3*&c!
D!@'< 7&*)
Pho! B&5'=
M3<3&( F3)+
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
2(
#0 7*!)'< 7&*)+
7elcome to a world of convenience fle2ibility and opportunity. The H%L #redit #ard
will add simplicity and e2citement to your life. Accepted at over 2( million merchants
worldwide H%L #redit #ard makes shopping fun and paying simple. "ake the most out
of your shopping e2perience with your very own H%L #redit #ard.
Go() 7&*) G*!! 7&*)
'0 7o2!'!c!
''0 S!c3*'<,
'''0 A--o*)&@'('<,
'20 7&+h A)2&c!
20 B&(&c! T*&+-!* F&c'('<,
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
2-
2'0 I<!*!< +ho44'=
'0 7o2!'!c!
!nstead of paying with cash simply present your H%L #redit #ard to the
shopkeeper and pay for anything you want.
B'(( P&,m!<+
7e1ll pay your bills on your behalf and charge the amount to your H%L #redit
#ard. Dou can give one3time standing instructions to pay your monthly bills.
#heck the amount in your monthly card statement and make the payment with
your regular card payment.
SMS A(!*<+
6or all transactions an ,", alert will be sent to you on your mobile phone to
confirm that the transactions have been conducted by you. A nominal fee will be
charged for this service.
E$S<&<!m!<+
Dou can enroll for an e3statement with a simple call. An e3statement with details
of all your transactions will be sent to your specified email address every month.
Dou won/t have to wait for your paper statement any more or have to worry about
storing it.
S<&<!m!< @, F&?
H%L #redit #ard also offers the facility of receiving your card statement by fa2.
Bust give us a call and your last card statement will be fa2ed to you at the fa2
number specified by you
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
2>
''0 S!c3*'<,0
Dour H%L #redit #ard ensures your money stays completely secure. Dou cannot
lose cash if you don/t carry it. !n the unlikely event that your card is stolen call us
at H%L &hone %anking and your card will be blocked immediately.
'''0 A--o*)&@'('<,
B3, No.D P&, L&<!*
H%L #redit #ard gives you the fle2ibility to buy what you want when you want
and pay for it later. A credit card statement will be sent to you every month with
details of all your purchases. Dou will have 21 credit free days to make the
payment from the statement date. &lease pay at least $ days in advance if you
make your payment by cheEues to allow enough time for clearance.
P&, A+ M3ch A+ Yo3 6&<
Dou have the freedom to pay the entire outstanding amount on your card
statement or as little as -9 of the outstanding balance in your statement. The
remaining amount will be transferred to ne2t month/s statement. A nominal
service charge will be applied to the unpaid amount each month.
Lo.!* R&<! E2!*, Y!&*
Bust make sure all your H%L #redit #ard payments are made before the due date
and you will benefit from a reduction in the rate of service charges at the end of
each year.
'20 7&+h A)2&c!
!f you reEuire cash urgently you can go to any specified H%L branch and
withdraw cash at the counter. Dou can also go to any 1 Link AT" in &akistan and
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
2)
more than )?8888 AT"s and financial institutions worldwide displaying the
LisaH&lus logo. Dou can withdraw cash up to the available cash advance limit on
your H%L #redit #ard. 6or #ash Advance nominal service charges will be
applied from the withdrawal date.
20 B&(&c! T*&+-!* F&c'('<,
7ith your H%L #redit #ard %alance Transfer 6acility you have the opportunity
to pay off balances you owe to other banks through your H%L #redit #ard at
lower service charges.
2'0 I<!*!< +ho44'=
5njoy a hassle free shopping e2perience and shop from a choice of online
merchants all from the comfort of your home. To activate Hde3activate the service
please call 11131113(2-
20 HBL 7&* Lo&
H%L #ar Loan helps you get your preferred car through a simple and hassle3free
process backed by superior service and support. <ow you can drive a car you
always wanted.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
2?
7&* Sho.*oom 7&* N&2'=&<o*
#hoice of either a new localHimported car or a reconditioned imported car.
0epayment options ranging unto ) years.
4pton ?-9 of financing for the car of your choice.
!nsurance at all times for complete peace of mind and security.
0ound the clock support available through
30 HBL Pho! B&5'=M
PHONE BANKING
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
2'
Dour bank is just a phone call away. Dou can now call H%L &hone %anking and save a
trip to the branch. Dour Euery will be resolved in a single telephone call from anywhere
and at anytime.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
$8
Dou can place your reEuests and Eueries track the status of your repaymentHloan
account and avail other value3added services through H%L &hone %anking.
E('='@'('<, 7*'<!*'&
S&(&*'!)
I)'2')3&(+
S!(-$Em4(o,!)
B3+'!++ 4!*+o+KP*o-!++'o&(+
#iti.enship &akistani &akistani
Age 223>8 years 223>- years
"inimum
monthly income
0s. 28888 0s. 2-888
Doc3m!<&<'o
S&(&*'!) I)'2')3&(+
#opy of #<!#
2 recent passport si.e photographs
Latest original salary slip and personal bank statement for last $ months
S!(-$Em4(o,!) B3+'!++ 4!*+o+KP*o-!++'o&(+
#opy of #<!#
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
$1
2 recent passport si.e photographs
%ank statement for last > months and bank letter confirming details of account
&roof of business
Hom! Lo&
H%L yet not offered home loan in the future the management of the H%L will
offered Home loan also.
T,4!+ o- &cco3<+ o--!*!) @, <h! @&5
T!*m Acco3<+
H%L/s Term Accounts are offered in a variety
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
$2
of tenure with deposits as low as 0s.18 888.
HBL A)2&<&=! Acco3<
T!*m P*o-'<
#0 ,!&* #8L
B ,!&* #BL
3 ,!&* #4L
# Y!&* #2L
"ultiple options for tenure and profit payout
Loan facility up to '89 of deposit
"inimum reEuired investment as low as 0s. 2-888
S4!c'&( No<'c! T'm! D!4o+'<
) days or $8 days :and over; notice
"inimum deposit of 0s. 18888
%alances less than 0s. 1 million
%alances eEual to and greater than 0s. 1 million
0eturns range from 8.)-9 to (9 depending on notice period and amount
T!*m D!4o+'< R!c!'4<+
$ month term deposit
"inimum balance of 0s. 18 million
0eturns range from 8.)-9 to 2.2-9
IPD7
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
$$
"inimum investment of 0s. 28 million e2cept in the case of 1 month where
minimum investment is 0s. 188 million
Available in 1 month $ month > month 12 month and $ year terms
&rofit paid on maturity
0ates on !&G are conveyed on a daily basis by the Treasury Givision
R!m'<<&c! M3&-& 4(3+ D!4o+'< 87!*<'-'c&<!+9
Available in 1 year $ year and - year certificates
&rofit disbursement is monthly Euarterly bi3annually annually and on
maturity
&rofit paid on maturity
0eturns range from ).?9 to 119
73**!< Acco3<
<on3profit bearing
<o transaction limits
"inimum balance of 0s. 18888. !f the average balance falls below this
amount then service charges will be deducted
<o restriction on anyone opening a #urrent Account :as long as regulatory
guidelines are met;
B&+'c B&5'= Acco3< 8BBA9
<o minimum balance
<o service charges
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
$(
S&2'=+ Acco3<
&rofit paid bi3annually
"inimum average balance of 0s. 18888
-9 profit per annum
HBL ;&(3! Acco3<
)9 profit per annumN
&rofit credited every $ months
Geposit ranges from 0s. 18888 to 0s. 188888
6le2ibility of withdrawals
HBL S34!*2&(3 Acco3<
).2-9 profit per annumN
&rofit credited every $ months
Geposit ranges from 0s. 188888 to 0s. -88 88
6le2ibility of withdrawals
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
$-
R!m'<<&c! M3&-& P(3+ S&2'= Acco3<
0emittance %ased :no credit allowed e2cept remittance;
Gaily %asis &roduct
Tiered
"onthly profit
"inimum average balance of 0s. 18888
Less than 0s. 28888 earns 8.189 profit
0s. 1 million and above earns -9 profit
S4!c'&( S&2'= B&5 D!4o+'< Sch!m!
Gaily %asis &roduct
Tiered
"onthly profit
"inimum balance of 0s. 28888
0eturns unto ?9
D&'(, M3&-& 4(3+ D!4o+'< Acco3<
Gaily %asis &roduct
Tiered
"onthly profit
"inimum balance of 0s. -8888
0eturns unto ?9
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
$>
F7$SB
,avings Account offered in $ currencies 4,G :4, dollar; 540 :5uros; and
F%& :4* pound;
Tiered product with rates depending on choice of currency
To earn profit minimum balance in 4,G 540 and F%& is 1888
!nterest is payable on a Euarterly basis
HYFFD 8H'=h Y'!() Fo*!'= 73**!c, F'?!) D!4o+'<9
Available in 1 month 2 month $ month > month and 12 "onth in 4,G 540
and F%&
Tiered product with rates depending on choice of currency and term
&rofit paid on maturity only. <o interim interest is payable.
T&@!!* F 7h'()*! E)3c&<'o:
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
$)
An insurance plan that enables parents to cover education and marriage costs.
DEBIT 7ARD
H%L Lisa Gebit #ard allows you to pay for your purchases directly from your bank
account. Dou 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 e2penses with ease.
No I<!*!+<
E&+! 1 S!c3*'<,
No L'&@'('<,
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
$?
I<!*&<'o&( R!co='<'o1 Acc!4<&@'('<,
S4!)'= L'm'<+
F*!! Acco3< S<&<!m!<
24 ho3* 73+<om!* S!*2'c!
G(o@&( 73+<om!* A++'+<&c! S!*2'c!
H%L has a long history of being a partner of growth for business and industry. 7e
provide tailored banking solutions to business customers of all si.es in a wide range of
industries.
7e cater to the needs of a broad spectrum of clients. To do this the business banking
group is segregated by the si.e of the customer. 6or customers with an annual turnover
between &*0 -8 million to &*0 $88 million our #ommercial %anking group provides a
wide range of products that meet specific customer needs.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
$'
The #orporate %anking Froup focuses on personali.ed services to large corporate
borrowers who need tailored facilities. The #orporate %ank manages a diverse portfolio
being an active player in a multitude of sectors including te2tiles sugar leather
pharmaceuticals fertili.er petrochemicals power aviation automotive telecom oil and
gas and 6"#Fs.
The !nvestment %anking Froup is a market leader. !t provides innovative capital strategy
solutions to major local and multinational entities.
H%L offers a wide range of products and services for its business customers. They are as
followsA
!om"etitors
Loc&( P*'2&<! B&5+ ' P&5'+<&
Allied %ank of &akistan Limited
Arif Habib 0upali %ank Limited
Askari #ommercial %ank Limited
%ank Al Habib
%ank Al 6alah Limited
6aysal %ank Limited
"#% %ank
4nited %ank Limited
Fo*!'= B&5+ ' P&5'+<&
#itibank <A
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
(8
A%< A"0+ %ank <L
H,%#
American 52press %ank Limited
5mirates %ank
Goha %ank
%ank of Tokyo "itsubishi Limited
However Habib %ank feels that its major competitors are as followsA
4nited %ank Limited :4%L;
"#% %ank
#itibank
Askari %ank
As far as 4%L is concerned Habib %ank feels that it is a competitor because 4%L itself
is a sister H%L of Habib %ank as the Abu Ghabi Froup has stake in 4%L and so there is
always a comparison between them.
6urthermore Askari %ank is a competitor because of the fact that the product and
services that it offers is fairly similar to that of Habib %ank and its markup rates are
similar as well. "#% after being privati.ed has also introduced a wide variety of
services and with its large number of account holders it is also a big competitor.
#itibank is a foreign bank that has been established in &akistan for a long period of time
and has introduced a number of first class services and as Habib %ank is also competing
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
(1
in the services industry it needs to benchmark its product and services to a bank with a
stature to that of #itibank
Their Goals and Strategies
U'<!) B&5 L'm'<!)
4%L was established in 1'-' to provide banking facilities to the nation after its
nationali.ation in 1')1 the bank became an inefficient enterprise however after its
privati.ation in 2888M the whole face of 4%L has been changed.
Today 4%L stands on a solid network of more than 1888 branches nationwide and 1-
overseas branches and with an e2perience of (> years its main goal is to become the
leading bank of &akistan.
To achieve its goal 4%L has introduced innovative products in the banking sector to
facilitate the general public. !t was one of the very first banks to introduce internet and
,", banking to its customers. !t has divided its banking into three divisions each having
customi.ed products to satisfy the needs of that particular divisionA
#onsumerA for individual customers
#ommercialA for small and medium enterprises
#orporateA for large national and multinational companies
These strategies have helped 4%L to raise its image in the banking sector. !ts long term
credit rating is JAA=
1
/.
M7B B&5
!n 1')( "#% was nationali.ed along with all other private sector banks. This led to
deterioration in the Euality of the %ank/s loan portfolio and service Euality. 5ventually
"#% was privati.ed in 1''1. The vision of "#% is
1
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
(2
J#hallenging and #hanging the 7ay you %ank./
The main strategies of the bank have concentrated on growth through improving service
Euality investment in technology and people utili.ing its e2tensive branch network
developing a large and stable deposit base and managing its non3performing loans via
improved risk management processes.
!n 288> "#% %ank was awarded the 5uro money Award for the Jbest bank in &akistan/
which shows its commitment of changing the way you bank.
A+5&*' B&5
Askari #ommercial %ank was established in 1''2 with the vision of maintaining
e2cellent standards of banking Euality and service so as to serve its customers better.
7ith time Askari %ank has also changed its identity changing its name to a shorter
JAskari %ank/ a new logo and a new slogan JAsk 4s/.
Askari %ank has a wide variety of product and services that cater to need of all type of
customers. !t also developed a wide variety of products for the J*saans/ or farmers of
&akistan a segment of &akistani/s neglected by the baking sector of &akistan. Askari
bank was also the first bank in &akistan to introduce AT" machines on a third party
basis.
Askari %anks long term rating of JAA=/ by &akistan #redit 0ating Agency Limited
:&A#0A; also shows its commitment of developing e2cellent standard of products and
services for its customers.
7'<' B&5
#iti %ank was established in &akistan in 1''8 and since then has been using its
international roots and knowledge to make a name in the &akistani banking sector. !ts
main vision is to provide right financial solutions 3 every time all the time and to fulfill
their vision #iti %ank has used its ability to identify market needs and develop products
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
($
which are uniEue in concept and fulfill customer reEuirements. 5very customer is served
by a versatile team of relationship managers who ensure in3depth knowledge of trends
and opportunities while synchroni.ing their financial activities.
,ome of the innovative products introduced by #iti %ank or the very first time in the
&akistani %anking sector are as followsA
#itiFold &riority %anking
&hoto #redit #ard
6irst to launch &ersonal Loans in &akistan
6irst foreign bank to launch "aster#ard in &akistan
#omplaint Tracking ,ystem :#T,; launched
Organizational structure
A well3developed and properly coordinate structure is an important reEuirement for
the success of any organi.ation. !t provides the basic framework within which
functions and procedures are performed. Any organi.ation needs a structure which
provides a framework for successful operations. The operation of an organi.ation
involves a number of activities which are related to decision making and
communication of these decisions. These activities must be well coordinated so that
the goals of the organi.ation are achieved successfully.
#$%&!$&%' O( )B
At present the %ank operates through one central and 2$ 0egional +ffices and 1($'
branches all over &akistan. The president and 52ecutives #ommittee look after the
affairs of the %ank. 5ach 0egional Head Iuarter is headed by a #hief 52ecutive and
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
((
assisted by Feneral "anager +perations and Feneral "anager ,upport ,ervices. The
0egional Head Iuarter controls the branches in their area. +verseas operations
consist of >- main branches two affiliates two representative offices and two
subsidiaries. &resident from Head +ffice at *arachi controls the officers of the %ank
with the help of the senior management. 6unctional responsibilities of the %anks are
broken into seven groups known as 1; !nternational +perations Froup2; #orporate
%anking and Treasury !nvestment Froup$; 0etail %anking and +peration Froup
6inance Audit and Administration Froup-; Assets 0emedial "anagement Froup>;
#redit &olicy Froup);#orporate %ank 6inancial !nstitutions and &roject 6inance
Froup. !n addition to the overall controlling authority president also manages the
!nternational +perations Froup individually. 7hile the ,enior 52ecutive Lice
&residents supervise rest of the functional groups. 5ach ,enior 52ecutive Lice
&resident is individually responsible for the group which is assigned to him. At the
level of provinces there are 0egional Head Iuarters headed by 0egional #hief
52ecutives :0#5;. 5ach 0#5 is assisted by F" operations and F" ,upport
,ervices. %ranches are also controlled by the 0#5s. #ircle +ffices of the past times
have been removed to reduce "anagerial Layers which were working under the
control of Conal +ffices. This happened as a result of policy of beginning new
changes in the organi.ational structure.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
(-
Organizational )ierarch* chart
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
(>
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
P*!+')!<
7h&'*m&
SE;P I<!*&<'o&(
O4!*&<'o
Bo&*) o- D'*!c<o*+
SE;P 7o*4o*&<! B&5'=
1 T*!&+3*,
SE;P F'&c!D A3)'< 1
A)m''+<*&<'o
SE;P A++!< R!m!)'&(
M&&=!m!<
SE;P R!<&'( B&5'= 1
I-o*m&<'o T!cho(o=,
SE;P 7*!)'< Po('c,
SE;P 7o*4o*&<! B&5'=D -'&c'&(
'+<'<3<! 1 P*oM!c< -'&c!
()
N3m@!* o- !m4(o,!!+
M&' o--'c!+
H&@'@ B&5 P(&A& I0I0 7h3)*'=&* Ro&)
K&*&ch' F 7B%B0 P&5'+<&0
Pho!: 24#8000 GB0 L'!+H
F&?: 02#$:2#7B#
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
HBL P*o-'(!: Habib %ank Limited
T'c5!*: H%L
E?ch&=!+: *A0
2008 S&(!+: )$('?888888
M&Mo* I)3+<*,: 6inancial
S3@ I)3+<*,: #ommercial %anks
7o3<*,: &A*!,TA<
Em4(o,!!+: 1(12$
(?
!omments on the organizational structure
The purpose of an organi.ational structure is to help in creating an environment for
human performance. !t is then a management tool and not an end in its own. Although
the structure must define the task to be done the rules so established must also be
designed in the light of abilities and motivation of the human recourse available. %y
analy.ing the organi.ational structure of H%L presence of the following elements can be
found in its structure.
7!<*&('A!) D!c'+'o M&5'=
%y looking at the organi.ational structure of H%L would be found that the structure at
H%L is a critical one. All the decisions are made at the top management level and the
subordinates have to obey these decisions. This trend in the decision making shows a
pattern of rigidity in structure of H%L.
Do..&*) 7omm3'c&<'o
#ommunication is the process by which information is e2changed and understood by two
or more people usually with the interest to motivate or influence the behavior of others in
the organi.ation. Gownward communication is the message and information sent from
top management to subordinates in a downward direction. "anagers can communicate
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
('
downward to the employees through speeches massages in H%L publications
information leaflets tucked into pay envelops material on bulletin boards policy and
procedure mandates. The same pattern is followed at H%L. <o doubt it/s a very
traditional approach but it can create problems because it ignores the receiver of the
communication because the issuer
+f policies and procedures does not ensure communication. !n reality may the messages
communicated downward are not understood perfectly.
7h&' o- 7omm&)
The chain of command is an unbroken line of authority that links all persons in an
organi.ation and shows who reports to whom. %y analy.ing the organi.ational structure it
can be found that there is a scalar principle followed with in the %ank because each and
every person knows to whom can one report. The authority and responsibility for
different tasks and duties are different as well as every one knows the successive levels
of management all the way to the top.
A3<ho*'<, &) R!+4o+'@'('<,
The chain of command illustrates the authority structure of H%L. Authority is the formal
and legitimate right of the manger to make decisions issues orders and allocates
resources to achieve organi.ational desired outcomes. %y analy.ing the chain of
command of H%L one can come to the conclusion that as there is scalar pattern
followed at the organi.ational setup of H%L therefore it is implied that everyone in his
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
-8
position knows that what is one/s authority and what is the responsibility and the
authority it allocated.
D!(!=&<'o
Gelegation is the process which managers use to transfer the authority and responsibility
to position below in the hierarchy. "ost organi.ations today encourage managers to
delegate authority to the lowest possible level to provide ma2imum fle2ibility to meet
customer needs and adapts to the environment. %ut at H%L no such system prevails the
managers try to keep as much of the authority as they can and if some authority is
delegated it is sure that it will be misused
Plan of *our internshi" "rogram
A @*'!- '<*o)3c<'o o- <h! @*&ch
Habib %ank Limited main branch chubara road Layyah is the center of the employee of
different organi.ations cotton and grain business. According to its location majority of its
accounts holders are businessmen and employees of different organi.ations and as well as
it has huge accounts of the farmers those are the brokers of wheat and cotton. This
%ranch work under the very e2perienced "anager #hudary ,arwer.He is very talented
and hardworking person he tries to make hard to improve the progress of the branch by
leaps and bunds. He manage his employees very efficiently also motivated them
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
-1
according to his work and encourage them. The employees of this branch are also well
e2perienced. 5very employee of the branch guide the customers properly.As the
working of the branch is organi.ed so different are made in order to make the working
easier and error free. 5very person of the branch done his duty beautifully.
#tarting and ending dates of internshi"
! start my internship at H%L from 1838(3288' to 1838>3288'. ! completed two month in
the H%L and in this two month ! get great e2perience from different departments of the
H%L.
$he de"artments in which I got training and the
duration of training
Th!+! &*! )!4&*<m!<+ .h!*! I =!< <*&''=
#0 R!m'<<&c! D!4&*<m!<
20 F'&c! D!4&*<m!<
30 Acco3< +!*2'c!+ D!4&*<m!<
40 A=*'F'&c! D!4&*<m!<
S*0" N&m! o- <h! D!4&*<m!< D3*&<'o
F*om To
# 0emittance Gepartment #0$04$200: 2B$04$200:
2 6inance Gepartment 2%$04$200: #0$0B$200:
3 Account services Gepartment ##$0B$200: 2B$0B$200:
4 Agri6inance Gepartment 2%$0B$200: #0$0%$200:
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
-2
$raining "rogram
I<*o)3c<'o o- &(( <h! )!4&*<m!<+
Th!*! &*! +om! N&m!+ o- <h! )!4&*<m!<+
#0 Acco3< D!4&*<m!<
20 R!m'<<&c! D!4&*<m!<
30 U<'('<, @'((+
40 7D I ch&*=! D!4&*<m!<
B0 F'&c! )!4&*<m!<
%0 7&+h D!4&*<m!<
70 A=*' $F'&c! D!4&*<m!<
Detailed descri"tion of the de"artment I
wor+ed
Th!+! &*! <ho+! )!4&*<m!<+ .h!*! I .o*5!)
#0 R!m'<<&c! D!4&*<m!<
20 F'&c!KA)2&c! D!4&*<m!<
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
-$
30 Acco3< +!*2'c!+ D!4&*<m!<
40 A=*'F'&c! D!4&*<m!<
Th!+! &*! )!<&'( o- <h!*! )!4&*<m!<0
#0 R!m'<<&c! D!4&*<m!<
As it is the function of the %ank to the money to any place where there is a
%ank. !t is the most easiest and safe way to send money to any place. %ank
charges menial amount as a commission for the remittance. Here in the Habib
%ank Limited #hubara 0oad Layyah %ranch there is also remittance
Gepartment. There are mostly four methods to remit the money. They Are
i. Gemand Graft :GG;
ii. "ail Transfer :"T;
iii. &ay +rder :&+;
'0 D!m&) D*&-<
!t is the most commonly method used for remittance of money. !t is very
simple firstly a form is to be filled in which all details are specified that
where and it which branch the draft is to be sent then the money is depositor
which is called draft and money can by drawn after showing to the bank of the
specified branch of the %ank. +nly specified person can draw the money on
that draft. Another method to secure the payment of the draft could be the
crossing of the draft which means that it will only be deposited in the payee1s
account.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
-(
To make it more secured and safe the %ank has coded the amount e2ceeding
0s. 1-888. +nly the banker or the person known the actual amount of the draft
in return bank gets a commission which is its mode of earning.
''0 M&'( T*&+-!* 8MT9
The money is transferred through mail. +ne %ranch of the bank sends
advice to the branch of the same bank to credit the account of payee. !n this
type of transfer the payee must has the %ank account. 6or e2ample now
days &TL1s licenses are made all over the &akistan. %ank also gets
commission on the mail transfers.
'''0 P&, O*)!* 8PO9
&ay order is less e2pensive method of transfer money. <ormally this method
is used to transfer money inside the city. !f it is used city wide it takes a
long time. The bank charge 0s. 18 which is flat fee the pay order and an
e2cise duty of 0s 1 per leaf with holding ta2 of 289 on the sum is also
taken from the party.
<ow if the pay order is to be cancelled or duplicate of the pay order is to be
needed is case of misplacement 0s.28 is to be paid.
20 F'&c!KA)2&c! D!4&*<m!<
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
--
This department has been working under the supervision of knowledge
e2perienced @ well Eualified banker. "r. <adeem who has been serving this
bank for last 22 years.
This department has been playing one of the primary function of the bank
because a bank is the organi.ation that accept deposits @ give advances.
Advances department is one of the most sensitive and important departments
of the bank. The major portion of the profit is earned through this department.
The job of this department is to make proposals about the loans.
The #redit "anagement Givision of Head +ffice directly controls all the
advances. As we known bank is a profit seeking institution. !t attracts surplus
balances from the customers at low rate of interest and makes advances at a
higher rate of interest to the individuals and business firms. #redit e2tensions
are the most important activity of all financial institutions because it is the
main source of earning. However at the same time it is a very risky task and
the risk cannot be completely eliminated but could be minimi.ed largely with
certain techniEues.
Any individual or company who wants loan from H%L first of all has to
undergo the filling of a prescribed form which provides the following
information to the banker.
There are basically two types of loans.
6und base
<on3fund base
!n fund base the cash is involved while in non3fund base cash is not
involved.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
->
These are following types of advances those are given by the bank.
#ash 6inance
0unning 6inance
Any individual or H%L who wants loan from H%L first of all has to undergo the
filling of a prescribed form which provides the following information to the
banker.
<ame and address of the borrower.
&9 52isting financial position of a borrower at a particular branch.
@9 Accounts details of other banks :if any;.
c9 ,ecurity against loan.
)9 52iting financial position of the H%L. :%alance ,heet @ !ncome
,tatement;.
!9 ,igning a promissory note is also a reEuirement of lending through this
note borrower promise that he will be responsible to pay the certain amount of
money with interest.
P*'c'4(!+ o- A)2&c!+
There are five principles which must be duly observed while advancing money to
the borrowers.
,afety
LiEuidity
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
-)
Gispersal
0emuneration
,uitability
&0 S&-!<,
%anker/s funds comprise mainly of money borrowed from numerous customers
on various accounts such as #urrent Account ,avings %ank Account #all
Geposit Account ,pecial <otice Account and 6i2ed Geposit Account. !t indicates
that whatever money the banker holds is that of his customers who have entrusted
the banker with it only because they have full confidence in the e2pert handling of
money by their banker. Therefore the banker must be very careful and ensure that
his depositor/s money is advanced to safe hands where the risk of loss does not
e2ist. The elements of character capacity and capital can help a banker in arriving
at a conclusion regarding the safety of advances allowed by him.
@0 7h&*&c<!*
!t is the most important factor in determining the safety of advance for there is no
substitute for character. A borrower/s character can indicate his intention to repay
the advance since his honesty and integrity is of primary importance. !f the past
record of the borrower shows that his integrity has been Euestionable the banker
should avoid him especially when the securities offered by him are inadeEuate in
covering the full amount of advance.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
-?
!t is obligation on the banker to ensure that his borrower is a person of character
and has capacity enough to repay the money borrowed including the interest
thereon.
c0 7&4&c'<,
This is the management ability factor which tells how successful a business has
been in the past and what the future possibilities are. A businessman may not have
vast financial resources but with sound management abilities including the
insight into a specific business he may make his business very profitable. +n the
other hand if a person has no insight into the particular business for which he
wants to borrow funds from the banker there are more chances of loss to the
banker.
)0 7&4'<&(
This is the monetary base because the money invested by the proprietors
represents their faith in the business and its future. The role of commercial banks
is to provide short3term capital for commerce and industry yet some borrowers
would insist that their bankers provide most of the capital reEuired. This makes
the banker a partner. As such the banker must consider whether the amount
reEuested for is reasonable to the borrowers own resources or investment.
!0 L'J3')'<,
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
-'
LiEuidity means the possibilities of recovering the advances in emergency
because all the money borrowed by the customer is repayable in lump sum on
demand. Fenerally the borrowers repay their loans steadily and the funds thus
released can be used to allow fresh loans to other borrowers. <evertheless the
banker must ensure that the money he is lending is not blocked for an undue long
time and that the borrowers are in such a financial position as to pay back the
entire amount outstanding against them on a short notice. !n such a situation it is
very important for a banker to study his borrower/s assets to liEuidity because he
would prefer to lend only for a short period in order to meet the shortfalls in the
wording capital. !f the borrower asks for an advance for the purchase of fi2ed
assets the banker should refuse because it shall not be possible for him to repay
when the banker wants his customer to repay the amount. Hence the baker must
adhere to the consideration of the principles of liEuidity very careful.
-0 D'+4!*+&(
The dispersal of the amount of advance should be broadly based so that large
number of borrowing customer may benefit from the banker/s funds. The banker
must ensure that his funds are not invested in specific sectors like te2tile industry
heavy engineering or agriculture. He must see that from his available funds he
advances them to a wide range of sector like commerce industry farming
agriculture small business housing projects and various other financial concerns
in order of priorities.
Gispersal of advances is very necessary from the point of security as well
because it reduces the risk of recovery when something goes wrong in one
particular sector or in one field.
=0 R!m3!*&<'o
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
>8
A major portion of the banker/s earnings comes form the interest charged on the
money borrowed by the customers. The banker needs sufficient earnings to meet
the followingA
a; !nterest payable to the money deposited with him.
b; ,alaries and fringe benefits payable to the staff members.
c; +verhead e2pense and depreciation and maintenance of the fi2ed assets of
the bank.
d; An adeEuate sum to meet possible losses.
e; &rovisions for a reserve fund to meet unforeseen contingencies.
f; &ayment of dividends to the shareholders.
h0 S3'<&@'('<,
The word Osuitability/ is not to be taken in its usual literary sense but in the
broader sense of purport. !t means that advance should be allowed not only to
the carefully selected and suitable borrowers but also in keeping with the overall
national development plans chalked out by the authorities concerned. %efore
accommodating a borrower the banker should ensure that the lending is for a
purpose in conformity with the current national credit policy laid down by the
central bank of the country.
7&+h F'&c!
#ash finance is the biggest loan given to the businessmen industrialists. After
the proper investigation and documentation these finances are given and
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
>1
genuine property is pledged as a matter of security. These loans are taken for the
purchase of stocks etc. the bank appoints its staff of two or three persons at the
place where that stock is lying0 This is a very common form of borrowing by
commercial and industrial concerns and is made available either against pledge
or hypothecation of goods produce or merchandise. !n cash finance a borrower
is allowed to borrow money from the banker up to a certain limit either at once
or as and when reEuired. The borrower prefers this form of lending due to the
facility of paying markupHservices charges only on the amount he actually
utili.es. !f the borrower does not utili.e the full limit the banker has to lose
return on the un3utili.ed amount. !n order to offset this loss the banker may
provide for a suitable clause in the cash finance agreement according to which
the borrower has to pay markupHservice charges on at least on self or one Euarter
of the amount of cash finance limit allowed to him even when he does not
utili.e that amount.
%ank also keeps three records of the stock and current position. a notice is
also written at the place that the stock are pledged with the bank To get these
types of loan prior permission from the .onal office of the H%L is also
reEuired the bank gets back its principal amount and also markup for the loan.
The rate of markup is 0s. 8.-21H1888 per day.
Doc3m!< R!J3'*!) Fo* <h! Lo&
#0 D!m&) P*om'++o*, No<! DP No<!
This document is filled in by the party that promises to pay the amount
whenever it is demanded.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
>2
20 F&c'('<, L!<<!*
This is the reEuisition of the finance facilities to the bank by the party.
30 B&(&c! 7o-'*m&<'o
After the approval of loan this letter is written by the party that such amount is
in the account of the party.
40 L!<<!* o- P(!)=! 8IB2%9
6or the getting of the cash finance a letter of pledge is to be given to the bank
that such property is to be pledged with the bank as a security.
B0 L!<<!* o- G3&*&<!!+ 8IB 2:9
A letter for the personal guarantees is also reEuired in which the guarantee
from a sound person to the party is attached with the application.
%0 A=*!!m!< -o* F'&c'= 8IB %9
This agreement for the short term medium termHlong term on the markup
basis. At most these are the documents reEuired in attaining of the loan.
R3'= F'&c!
7hen a customer borrows from a banker a fi2ed amount repayable either in
periodic installments or in lump sum at a fi2ed future time it is called a
OloanP. 7hen bankers allow loans to their customers against collateral
securities they are called Osecured loansP and when no collateral security is
taken they are called Oclean loansP.
The amount of loan is placed at the borrower/s disposal in lump sum for the
period agreed upon and the borrowing customer has to pay interest on the
entire amount. Thus the borrower gets a fi2ed amount of money for his use
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
>$
while the banker feels satisfied in lending money in fi2ed amounts for definite
short periods against a satisfactory security.
This is the most common form of bank lending. 7hen a borrower reEuires
temporary accommodation his banker allows withdrawals on his account in
e2cess of the balance which the borrowing customer has in credit and an
overdraft thus occurs. This accommodation is generally allowed against
collateral securities. 7hen it is against collateral securities it is called
O,ecured +verdraftP and when the borrowing customer cannot offer any
collateral security e2cept his personal security the accommodation is called a
O#lean +verdraftP. The borrowing customer is in an advantageous position in
an overdraft because he has to pay service charges only on the balance
outstanding against him. The main difference between a cash finance and
overdraft lies in the fact that cash finance is a bank finance used for long term
by commercial and industrial concern on regular basis while an overdraft is a
temporary accommodation occasionally resorted to.
D!m&) F'&c'=KLo&+
7hen a customer borrows from a banker a fi2ed amount repayable either in
periodic installments or in lump sum at a fi2ed future time it is called a
OloanP. 7hen bankers allow loans to their customers against collateral
securities they are called Osecured loansP and when no collateral security is
taken they are called Oclean loansP.
The amount of loan is placed at the borrower/s disposal in lump sum for the
period agreed upon and the borrowing customer has to pay interest on the
entire amount. Thus the borrower gets a fi2ed amount of money for his use
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
>(
while the banker feels satisfied in lending money in fi2ed amounts for definite
short periods against a satisfactory security
30 A77OUNT DEPOSIT DEPARTMENT: $
!t controls the following activitiesA
a; AH# opening.
b; !ssuance of cheEue book.
a; #urrent aHc
b; ,aving aHc
c; #heEue cancellation
d; #ash
Acco3< o4!'=
The opening of an account is the establishment of banker customer relationship.
%efore a banker opens a new account the banker should determine the
prospective customer/s integrity respectability occupation and the nature of
business by the introductory references given at the time of account opening.
&reliminary investigation is necessary because of the following reasons.
i. Avoiding frauds
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
>-
ii. ,afe guard against unintended over draft.
iii. <egligence.
iv. !nEuiries about clients.
There are certain formalities which are to be observed for opening an account
with a bank.
6ormal Application
!ntroduction
,pecimen ,ignature
"inimum !nitial Geposit
+perating the Account
1. &ay3!n3,lip %ook
2. &ass %ook
$. !ssuing #heEue %ook
&9 N3&('-'c&<'o o- 73+<om!*
The relation of the banker and the customer is purely a contractual one
however he must have the following basic Eualifications.
He must be of the age of majority.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
>>
He must be of sound mind.
Law must not disEualify him.
The agreement should be made for lawful object which create legal
relationship
<ot e2pressly declared void.
@9 T,4!+ o- Acco3<+
6ollowing are the main types of accounts
1; !ndividual Account
2; Boint Account
$; Accounts of ,pecial Types
&artnership account
Boint stock H%L account
Accounts of clubs societies and associations
Agents account
Trust account
52ecutors and administrators accounts
&ak rupee non3resident accounts
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
>)
6oreign currency accounts
1
I++3'= o- ch!J3! @oo5:
This department issue cheEue books to account holders.
0eEuirements for issuing cheEue book
a; The account holder must sign the reEuisition slip
b; 5ntry should be made in the cheEue book issuing book
c; three rupees per cheEue should be recovered from aHc holder if not then debit
hisHher account.
73**!< &cco3<
These are payable to the customer whenever they are demanded. 7hen a banker
accepts a demand deposit he incurs the obligation of paying all cheEues etc.
drawn against him to the e2tent of the balance in the account. %ecause of their
nature these deposits are treated as current liabilities by the banks. %ankers in
&akistan do not allow any profit on these deposits and customers are reEuired to
maintain a minimum balance failing which incidental charges are deducted from
such accounts. This is because the depositors may withdraw #urrent Account at
any time and as such the bank is not entirely free to employ such deposits.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
>?
4ntil a few decades back the proportion of #urrent Geposits in relation to 6i2ed
Geposits was very small. !n recent years however the position has changed
remarkably. <ow the #urrent Geposits have become more importantM but still the
proportion of #urrent Geposits and 6i2ed Geposits varies from bank to bank
branch to branch and from time to time.
S&2'= &cco3<
,avings Geposits account can be opened with very small amount of money and
the depositor is issued a cheEue book for withdrawals. &rofit is paid at a fle2ible
rate calculated on si23month basis under the !nterest36ree %anking ,ystem. There
is no restriction on the withdrawals from the deposit accounts but the amount of
money withdrawn is deleted from the amount to be taken for calculation of
products for assessment of profit to be paid to the account holder. !t discourages
unnecessary withdrawals from the deposits.
!n order to populari.e this scheme the ,tate %ank of &akistan has allowed the
,avings ,cheme for school and college students and industrial labor also. The
purpose of these accounts is to inculcate the habit of savings in the constituents.
As such the initial deposit reEuired for opening these accounts is very nominal0
7h!J3! c&c!((&<'o:
This department can cancel a cheEue on the basis ofM
a; &ost dated cheEue
b; ,tale cheEue
c; 7arn out cheEue
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
>'
d; 7rong sign etc
7&+h
This department also deals with cash. &ayment of cheEues deposits of cheEues
etc.
(. Agri6inance Gepartment
At HBL Agri 6inance we understand the peaks and troughs of farming. That/s
why we have designed our lease loan and hire3purchase agreements to match
your income situation. +n an arable or dairy farm for e2ample cash flow is tight
early in the year when you are buying stock and feed. Dou may have a surplus at
harvest time or when you receive the single farm payment.
7e simply arrange to take high repayments when cash flow is good and lower
ones at Euieter periods. !f necessary you can even hold off payments during
periods when your income is under pressure.
F(!?'@(! (o&
+ur lease loan and hire3purchase agreements do not just apply to farms. 7e also
help finance eEuipment used by local authorities landscape gardeners and sports
clubs in caring for grounds. 4nlike buying eEuipment outright this allows you to
spread your payments over several yearly budgets. !f club membership is an issue
it means you can spread costs fairly between present and future members. 6or
more information contact your local HBL Agri 6inance
Area sales e2ecutive
M3(<'4(! !J3'4m!< 43*ch&+!
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
)8
&age $
!f you need a range of different pieces of eEuipment or vehicles over period of
time we may be able to arrange a credit line for you. 7e can make an agreed
amount of finance available to you to draw down :take; as you need. Ask your
Agri 6inance area sales e2ecutive about credit lines and agency purchasing.
O3<*'=h< 43*ch&+!
!f you want to buy eEuipment outright our hire3purchase agreement is the fle2ible
and cost3effective alternative to overdrafts or term loans. 6ull ownership passes to
you at the end of the agreed term. +n the other hand with a loan agreement you
will own the eEuipment from the beginning. This can be useful in grant3aided
projects for e2ample where you need an invoice in your own name. Hire
purchase and loan agreements offerA
fi2ed repayments making budgeting easyM
repayments which you can time to suit the income pattern
+f your farmM
the option to claim capital ta2 allowances on the eEuipmentM
interest on your repayments which is ta23deductible M
A fle2ible depositM
LAT which you can claim back immediately on the whole purchase
&rice :e2cept for motor vehicles;M and
with a hire3purchase agreement no need for e2tra security or to repay
+n demand :unlike bank loans;.
Ask your H%L Agri 6inance area sales e2ecutive to e2plain
The benefits to you in detail.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
)1
L!&+! &=*!!m!<+
Leasing is an efficient way of paying for the use of eEuipment over a set
&eriod of time. Dou negotiate the purchase of the eEuipment you want and we will
pay
The supplier and keep legal ownership of the eEuipment. Dou then rent the
eEuipment from us over an agreed term 3 from five up to seven years for tractors.
Dou can then choose from the following options.
#arry on using the eEuipment for a small yearly rental fee.
,ell the eEuipment as our agent and keep all the sales proceeds.
Trade it in as a repayment against new eEuipment.
O<h!* @!!-'<+ o- (!&+'= 'c(3)!:
6i2ed rentals making budgeting easyM
0entals you can time to suit your incomeM
4sing the eEuipment just as if you owned itM
0entals which are fully ta23deductible :e2cept for motor vehicles;M
4sing an overdraft facility for other purposesM
Dou do not usually need e2tra security which you would for a bank loanM
And
a fle2ible first rental payment.
Dour HBL Agri 6inance sales e2ecutive will tell you more about
The benefits of leasing. Talk to your accountant about which leasing
&roduct is most suitable for you.
The key to our success is our focus and dedication to agriculture. 7e know that
our business depends on farming 3 a uniEue industry with uniEue problems and
challenges. As a result we make it our business to understand the needs of !rish
farmers. +ur field service is one of a kind 3 a team of dedicated area sales
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
)2
e2ecutives covering the whole country and backed by teams at regional offices.
+ur nationwide network of branches means we understand the rural economy.
7e always try to make sure our service and products meet your needs. 7e work
with agricultural dealers and manufacturers to provide a Euality service to the
farming community.
Agriculture finance is defined as a subset of rural finance dedicated to financing for
agricultural related activities vi.. input supply production processing and
marketing.
understood as the outstanding practice in the particular process or function i.e.
producing
the best results among those in the same industry. 0ural finance as defined by the
7orld %ank:7% 0eport3288(; includes a range of financial services such as
savings credit
payments and insurance to rural individuals households and enterprises both farm
and
non3farm on a sustainable basis. !t includes financing for agriculture and agro
processingHagribusiness.
"icrofinance is the provision of financial services for poor and low income people
and also covers the lower ends of both rural and agriculture finance. !t includes
financing
both in rural and urban areas. #onsistent with these operational distinctions
agricultural microfinance can be defined as referring to the overlap of agriculture
finance andmicrofinance dedicated to providing financial services to poor agricultural
households.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
)$
Im4o*<&c! o- A=*'F'&c!
Availability of agrifinance is a prereEuisite for enhancing productivity and
improving standard of living by breaking the vicious circle of poverty of small
farmers. !t has been observed that farmers usually utili.e the credit facility to meet
short term credit needs mostly for purchase of inputs. The banks are also interested
in e2tending short term credit. The e2perience of developed economies shows that
agriHrural credit for investment in the form of machinery eEuipment and
infrastructure has played major role in increasing productivity and future cash
flows. Therefore banks need to increase the supply of credit in the form of medium
to long term investment in the farm and nonfarm sector. 6armers can also avail the
opportunity to transform their lands into mechani.ed farming units to reduce cost
and increase profitability.
S<*3c<3*! o- <h! F'&c! D!4&*<m!<
D!4&*<m!<&( h'!*&*ch,
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
)(
7&4'<&( S<*3c<3*! G0E
B3)=!<'= G0E A3)'<o* E?!c3<'2!
I2!+<m!< G0E Acco3<&< E?!c3<'2!
Treasurer
Finance
director
Chief Financial
Ofcer (CFO)
Ayaz Ahmed
Chief Executive
Ofcer (CEO)
F'&c! D!4&*<m!<
(unctions of the (inance De"artment
Acco3<'= +,+<!m o- <h! HBL
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
)-
HBL h&+ +om! &cco3<'= +,+<!mO+ -3c<'o+
P B&(&c! 'J3'*!
P P*o)3c< 'J3'*!
P T*&+&c<'o h'+<o*,
P S<&<!m!< *!J3!+<+
P 7h!J3! @oo5 *!J3!+<
P S<o4 4&,m!<
P P&, o*)!* K DD *!J3!+<
P B&(&c! c!*<'-'c&<!
P F3) <*&+-!*+
P AK 7 m&'<&'+
P ;!*'-'c&<'o K =!!*&<'o K ch&=! o- TPIN 3m@!*+
P U<'('<, @'(( 4&,m!<+
Th!+! &*! +om! )!<&'(!) o- <h!+!
Guring the course of daily business of the branch a number of cheEues are
presented by customer for cash payment though transfer delivery and clearing
cheEues at the counter. Also a number of new accounts are opened and cash is
deposited by the customers. A number of new vouchers are passed by the branch by
debiting one account and crediting another account.
,o in order to ensure that during the day all the transactions have properly been
recorded and they are complete in all respects and are recorded in proper books by
the branch this recording is done on daily basis and maintained by account section.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
)>
%alancing the cash book means that all the transactions have properly been
recorded and there is no mistake in any of these vouchers.
Arrangement of voucher.
&reparation of suplimentaries.
&reparation of summary.
Agreement of total of the summary with the total of transfer book.
To Budge the performance of branches the Head +ffice reEuires periodic statements
from them. Through these statements the top management watches the progress of
the branches and they provide them necessary guidance The top management
decisions depend upon these statements also. The following are the important
statements prepared by the account sectionA 3
%alance sheet on daily basis.
&ak account on daily basis.
&rovisional income and e2penditure statement on monthly basis.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
))
(inance s*stem of the )B
P D!m&) -'&c!
P F'?!) &++!<+ -'&c'= 8FAF9
P Ho3+! F'&c!
P R3'= -'&c!
P 7&+h F'&c!
P M3+h&*'5& F'&c'=
P LMM F'&c! 8Loc&( M&3-&c<3*!) M&ch'!*,9
P H'*! P3*ch&+! F'&c'=
P B*')=! -'&c!
Mobilization of funds
The business of accepting deposits of money and lending andHor investing of such monies
is an activity governed by specific laws. The #entral %ank has in terms of the provisions
of the %anking Act <o. $8 of 1'?? or the 6inance #ompanies Act <o. )? of 1'??
authori.ed the following three categories of institutions to carryon such businessA
Licensed commercial banks
Licensed speciali.ed banks
0egistered finance companies
+nly the following categories of institutionsHorgani.ations are e2empted from the
reEuirement to obtain a license from the #entral %ank for the purpose of carrying on the
business of.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
)?
B, <h!+! &c<'2'<'*!+ .! c& mo@'('A!) o3* @&5O -3)+
!mproving member services and patronage
#onsider use of outside funding
!mproving operating efficiency
&romoting patronage
Fiving priority to mobili.ing member funds
Too much institutional capital
#ooperatives need to find ways to increase member funding since this provides the
lowest cost lowest risk form of capital for operations and investment. As government and
donor support continues to decline increasingly this also becomes the only practical
source of funding for cooperatives. 5ven where outside support is still available the
advantage of increased reliance on member funding is that it gives greater autonomy to
the cooperative and lowers the risk of eventual withdrawal of outside funding.
The strategy for increasing member funding depends on the particular circumstances of
the cooperative the type of activity it is engaged in and its scale of operation. Among the
strategies to consider areA
Im4*o2'= m!m@!* +!*2'c!+ &) 4&<*o&=!
"ost strategies for cooperative development reEuire increased funds. The strategy for developing
the cooperative so that it maintains or e2pands its market position should focus on operational
efficiency and on patronage on how the cooperative can maintain e2isting business and attract
more business and new members. !ncreased patronage provides an important source of member
capital. However it also usually reEuires more working capital for the operation of the business
of the cooperative and may reEuire more investment in fi2ed assets such as buildings and
eEuipment.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
)'
7o+')!* 3+! o- o3<+')! -3)'=
!n simple terms the higher the institutional and member capital the more outside lenders such as
H%L and suppliers will be willing to loan funds to the cooperative. #are should be taken in
borrowing however since the higher the outside funding as a proportion of funds used the higher
the risk if something goes wrong. :This risk is measured by the gearing ratio 3 an increased
gearing ratio meaning a higher risk;. !f more funds are reEuired a low gearing ratio can be
maintained if member contributions are also increased. 6or e2ample if the cooperative owns
Q1888 and needs an additional Q1888 it will be highly geared :-89 gearing ratio
(
; if all funds
come from a loan. Alternatively if the cooperative raises an additional Q-88 from member
funding the sum to be borrowed would be lower The gearing ratio would then be 2-9
-
representing a considerably lower risk. !t is also easier to find a bank or other lender willing to
provide the less risky loan. The interest rate will also often be lower
(
i.e. gearing ratio R 1888 S :1888 = 1888; T 188 R -89
-
i.e. gearing ratio R -88 S :1-88= -88; T 188 R 2-9
Im4*o2'= o4!*&<'= !--'c'!c,
!mproving efficiency can be important for the mobili.ation of funds. !t enables a
cooperative to offer more competitive prices securing and keeping member loyalty.
6unding and efficiency are related. #ooperatives with sufficient funds are able to invest
in training and technology to reduce costs and to increase or improve production. 7ell
managed technologically efficient cooperatives are generally more likely to accumulate
capital.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
?8
P*omo<'= 4&<*o&=!
The more members use the cooperative/s services 3 that is by selling through or buying
from the cooperative 3 the more funds the cooperative will receive. !t is therefore
important for the cooperative to promote patronage. This is most easily achieved when
cooperatives provide services valued by members offer competitive prices and prompt
payment.
G'2'= 4*'o*'<, <o mo@'('A'= m!m@!* -3)+
"ost cooperatives will have to rely on member generated funds to finance their
operations. "embers/ financial stakes in the cooperative enforce greater accountability of
the cooperative to members build member participation in decision making and
strengthen cooperative financial self3reliance and operational autonomy. There are a
number of ways in which member funds are obtained. !n many cases increased levels of
funding can be achieved through adjusting these methodsA
No$*!-3)&@(! m!m@!*+h'4 -!!+ 34o Mo''=
These fees are often small but they need not necessarily be so if new members are
buying into a successful business that provides valuable services.
M!m@!* +h&*!+
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
?1
All members are reEuired to purchase shares which are usually the primary source of
member capital. ,hares purchased should earn interest and are refundable to the member
upon withdrawal from membership or to hisHher heirs in the event of the member/s death.
,hares in some cooperatives can be paid for over time through check3offs from a
member/s transactions with the cooperative. The members share account is credited with
the amount of the deduction.
"any changes in cooperative financing are underway in 5urope. These have included the
issue of new classes of shares in addition to member shares that are weighted on the
.asis of one share one vote providing control and governance incentives that result from
cooperative solidarity but not necessarily by the traditional ownership structure. This
techniEue can attract additional members and capital from those who would otherwise not
be willing to contribute their capital due to their relative lack of control when capita
entitles each member to only one vote regardless of the members/ investment in the
cooperative. +ther changes involve the use of limited company forms of organi.ation for
certain activities undertaken for the benefit of cooperatives and their members. These
activities may include wholesale or other large scale marketing activities.
R!<!<'o o- +3*4(3+0
A surplus arises when the cooperative is able to retain some of the proceeds from sales of
members/ produce or from members/ purchases from the cooperative. This surplus can
either be retained by the cooperative as institutional capita or paid out in patronage
refunds to members following the close of each year !n practice cooperatives often offer
prices more favourable than those prevailing in the market creating little surplus and
making it impossible to offer patronage refunds. !n other cases cooperatives are
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
?2
protected by governments and do not operate in competitive markets making any surplus
unrelated to competitive performance.
7henever possible these practices should be altered either to build up surpluses or
increase patronage refunds and attract new members.
D!-!**!) 4&,m!<+
A surplus creates two opportunities for increasing capital available to a cooperative. +ne
is the surplus retained and the other is the patronage refund that is allocated but not
immediately paid out in cash. Guring the period between the realisation of the surplus
and the cash pay3out of patronage refunds the cooperative has the use of the cash. &ay3
out may take the form of a share or of an obligation to pay the member in the future.
#ooperatives in <orth America have been particularly creative in finding ways of
retaining cash while allocating surpluses. The usual procedure is to issue notes payable
over several years such as five or seven. The member receives a portion of the allocation
each year while the cooperative is able to rotate its capital over the same period.
M&5'= m!m@!* )!('2!*, *'=h<+ <*&+-!*&@(!
!n certain new processing and marketing cooperatives in <orth America the founder3
members can purchase delivery rights which guarantee that the cooperative will purchase
a given amount of produce each year. They also oblige the member to provide a certain
amount of produce. These rights are freely transferable which gives them a market value.
This feature gives members an incentive to behave in a manner that maintains and
increases the market value of their rights.
Too m3ch '+<'<3<'o&( c&4'<&(
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
?$
6or the majority of cooperatives in developing countries the possibility of accumulating
too much institutional capital any time soon is small. However members should be aware
that it is actually possible for the original purpose of the cooperative to be lost if the
amount of institutional capital becomes too large. This may result in the e2clusion of new
members because present members do not want others to benefit from the services
provided and surpluses produced by the capital accumulated. !t may lead to strategies for
intentional losses so that the capital accumulated returns to the members in the form of
unrealistic prices for services. !t may also lead to the conversion of the cooperative to
another legal form such as a limited company 7hile this may benefit e2isting members
by providing them with higher incomes the members should be aware that many of the
ideals of a cooperative may be lost in the process.
G!!*&<'o o- -3)+
The H%L can generated the funds by these sources
M&5'= F'&c!+
I2!+<'= ' 2&*'o3+ -'&c'&( m&*5!<+
%y giving these facilities to their customers we can generates the funds
&ositive 0eturn on Loan
&rovision of 7orking #apital
,hifting of funds into &roductive Hands
,trengthening !ndustriali.ations
%ackbone of <ational 5conomy
L!)'= P*o)3c<+:
0unning 6inance
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
?(
#ash 6inance
Gemand 6inance
#onsumer 6inance
&AG
I2!+<m!< ' F'&c'&( M&*5!<+:
The investment functions are usually performed by Treasury +ffice of the bank. Treasury
invests deposit forA
E+3*'= o4<'m3m 3<'('A&<'o o- A2&'(&@(! *!+o3*c!+0
R'+'= &))'<'o&( *!+o3*c!+ *!J3'*!) -o* M!!<'= c*!)'< )!m&)+0
M&&='= m&*5!< &) ('J3')'<, *'+5+0
I2!+<m!< M&*5!<+
%y investing the H%L in the investment market generat the funds easly and efficiently
that a good place for generating the funds by invests the money. These are three "arkets
Mo!, M&*5!<
#0 T$B'(( &) Go2<0 S!c3*'<'!+
20 Bo)+ o- P*o2'c'&( Go2<0
30 D!-!+! S&2'= 7!*<'-'c&<!+
40 M3<3&( F3)+ !<c0
7&4'<&( M&*5!<
#0 EJ3'<'!+ !0=0 +h&*!+ &)
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
?-
20 M3<3&( F3)+
30 Bo)+
40 D!@< M&*5!<
Fo*!'= E?ch&=! M&*5!<
#0 S4o< T*&+&c<'o+
20 TOM T*&+&c<'o+
30 O3<*'=h< T*&+&c<'o+
40 S.&4 T*&+&c<'o+
So3*c!+ o- -3)+
%anks reEuire funds to support lending. %anks lend to home buyers credit card
customers small and medium businesses and institutional clients.
%anks source their funds from customer deposits and wholesale
markets :domestic and international;. ,ince the onset of the global financial crisis in
late 288) bank funding costs have become a topic of considerable discussion given
their link to retail interest rates. The deposits are the major sources for a commercial
bank. There are two kinds of deposits in a bank including checkable deposits and
non3transaction deposits. #heckable deposits form '9 of the all sources of funds
and non3 transaction deposits form >19 of all sources of funds. The other sources
of funds for a bank are borrowings from other banks and bank capital which almost
makes 2(9 and >9 of the total sources of funds respectively.

7hen e2amining banks/ funding it is important to recogni.e that it is not free and
the price of funding varies according to a range of factors.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
?>

6or most of the last decade banks/ funding sources and the cost of funding has been
relatively predictable. "ovements in the 0eserve %ank/s cash rate have
generally closely appro2imated changes in total bank funding costs.
,ince the global capital markets crisis in late 288) the 0eserve %ank/s cash rate has
not provided an accurate indicator of changes in bank funding costs. %y providing
an overview of bank funding the paper aims to help e2plain why this is the case.
+ver the past year financial markets have e2perienced a serious global financial
event triggered by the 4, sub3prime lending market
6or banks the global credit crisis has made it more difficult to access funds and
those funds are more e2pensive
<o3one is predicting a Euick end. There is a possibility that it may take two years
to see conditions in financial markets stabili.e.
D!@< m&*5!<+
!n terms of funding access for well3rated institutions :i.e. those with strong
credit ratings; borrowing money in their own name there is generally
sufficient liEuidity in the global debt markets. However prices remain
elevated.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
?)
6unding bank lending through securiti.ation markets however is very
strained. There is very little issuance occurring
F3)'=
About -89 of banks/ funding comes from depositsM a further 2-9 from
short3term wholesale funding and 2-9 from long3term wholesale funding.
7holesale funding comes both from domestic and global financial markets
:splits will vary from bank to bank;.
,hort3term funding :e2cluding bills of e2change; constitutes >(9 domestic
issuance and $>9 offshore issuance. 6or long3term funding the spit is 2-9
domestic issuance and )-9 offshore issuance. :These proportions vary
between banks.;
,hort3term funding costs have been volatile since August 288). +n several
occasions the '83day %ank %ill ,wap 0ate :%%,7;
1
spiked sharply
:August 288) ,eptember 288) Gecember 288) 6ebruary 288? "arch
288? Bune 288? ,eptember 288? and +ctober 288?;.
Long3term funding costs remain elevated with no evidence of easing.
,ince the onset of the financial crisis net flows into deposit accounts have
been strong particularly higher yielding personal investment accounts.
%alances in these accounts have increased 1'9 :annuali.ed; compared to
19 for lower yielding personal transaction accounts.
M&*5!< '<!*!+< *&<!+ &) <h! c&+h *&<!
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
??
A number of factors influence interest rates including changes in the official cash
rate inflation e2pectations credit ratings and the broader global financial
environment. 4nder normal circumstances cash rate changes are e2pressly linked
to market interest rate changes. +ver the past year however global events have
had a greater influence on market rates.
I<!*!+< R&<! M&*='+
%anks/ interest rate margins continue to contract. !nterest rate margins for
Australian banks have contracted at a slightly faster pace since the beginning of the
global financial crisis.
#0 G(o@&( !2'*om!<
+ver the past year financial markets have been in the midst of a serious global
financial event caused by the sub3prime crisis in the 4,A. The 0eserve %ank has
commented on the large increase in the delinEuency rate on 4, sub3prime
mortgages which had grown to about 1? per cent of housing loans in the 4,.
Also of the Q4,2 trillion of 4, residential mortgage backed securities :0"%,;
issued to investors in 288>M around a Euarter were backed by sub3prime mortgages.
As a result of the global credit crisis there was a sharp decline in investor appetite
for 0"%, even those of the highest credit Euality.
The 0eserve %ank said that the increase in risk aversion and the e2istence of
considerable uncertainty about where the spreads on these securities will settle has
meant that traditional investors in 0"%, have preferred to wait until more settled
conditions return.
This increased risk aversion has significantly increased the cost of short3term and
long3term funds sourced by financial institutions internationally and in Australia.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
?'
Additionally there has been considerable volatility in the cost of funds.
6inancial e2perts are not predicting a Euick end to the current financial scenario
with some suggesting it will take up to two years to see financial market conditions
stabili.e though there is still uncertainty over whether funding costs will return to
the lower levels they have been in the past.
20 O2!*2'!. o- @&5 -3)'=
Fenerally speaking banks source their funds from deposits :-89; and through
wholesale funding that is short3term wholesale funding :2-9; and long3term
wholesale funding :2-9; in both the domestic and global markets :this split will
vary from bank to bank;. ,hort3term funding relates to borrowings for up to 12
months while long3term funding includes borrowings of greater than 12 months.
%anks borrow money from global financial markets to facilitate lending to
Australian businesses and households. %orrowing costs for banks short3term and
long3term funding reEuirements have increased significantly as a result of the
current global financial crisis.
The price or cost that banks pay for funds depends on many factors. These includeA
changes in the official cash rateM competitionM international eventsM the credit rating
of the bankM and the supply of wholesale funds.
%anks must pay for all funding either though paying deposit interest rates or paying
interest on domestic and global debt. Therefore to determine a bank/s cost of funds
it is important to conduct a detailed analysis of all funding components and how
these are changing. This is discussed further below.
30 S<&<! o- <h! )!@< m&*5!<+
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
'8
6or banks with a strong credit rating :i.e. AA or A; wanting short3term funding
there is generally good liEuidity in debt markets but prices remain elevated when
compared with levels prior to the financial crisis.

6or term funding markets have been very difficult to access and issuance by banks
has been very low particularly in the most recent months. ,preads are now at very
high levels.

%anks rated %%%= are finding it more difficult to access longer3term funding and
are concentrating more on short3term funds private placements and deposit growth.
,ecuriti.ation markets continue to see very low issuance levels. "uch of the
Australian issuance was to the 4,. !nvestor interest in securiti.ed assets has
virtually dried up.
0ecent initiatives designed to stimulate debt markets includeA
guarantee of banks/ term fundingM
deposit guaranteesM and
7idening the range of securities eligible for its repurchase operations :repos; by
the 0%A.
These initiatives align Australia/s response within the conte2t of the broader global
initiatives which are aimed at resolving the financial crisis.
40 F3)'=
%anks source funds from deposits and through wholesale funding 3 short3term and
long3term funds in both the domestic and global financial markets.
7hen the term of any funding arrangement e2pires either in domestic and global
markets banks have to re3finance. ,ince the onset of the global financial crisis
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
'1
wholesale funding costs have increased significantly. 6urthermore interest rate
volatility has increased on these markets and it is widely reported considerable
uncertainty will remain over the ne2t year at least.
Gue to the protracted nature of the sub3prime crisis pressures in financing from the
wholesale market continue.
A%, 6inancial Accounts shows retail deposits constitute ('9 :Q>>- billion; of bank
funding as at Bune 288?. 7holesale funding accounts for -19 or Q)8$ billion. +f
the short3term funding e2cluding bills of e2change :which are not classified by
domesticHoffshore; short3term funding is >(9 domestic and $>9 offshore. 6or
long3term funding 2-9 is domestic and )-9 offshore.
The '83day bank bill swap rate is commonly viewed as the short3term funding cost
benchmark in the market. The divergence :i.e. spread; of the '83day from a market
indicator of the cash rate can indicate changes to the banks/ short3term funding
costs. This cash rate Jmarket/ indicator is called the '83day +vernight !nde2 ,wap
rate :'83day +!,;.
The '83day +!, is a traded instrument by large treasuries. !ts value reflects the
e2pectation of where the cash rate will be in '8 days :it/s like a futures contract;.
Analy.ing the spread between the '83day and the '83day +!, provides a broad
measure of changes to banks/ short3term funding costs. This spread reflects market
conditions as interest rates incorporate both credit premiums and liEuidity in
financial markets. #hanges in these measures also reflect banks/ product pricing and
risk management.
The chart below shows that the cost of short3term funds has been volatile since
August 288). +n numerous occasions the '83day has increased significantly
:August 288) ,eptember 288) Gecember 288) 6ebruary 288? "arch 288? Bune
288? ,eptember 288? and +ctober 288?;.
%anks/ short3term funding costs :i.e. over and above the '83day +!,; have
significantly increased since the global financial crisis. The chart shows that prior
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
'2
to August 288) the cost above the '83day +!, was about ?318 basis points. After
August 288) this spread reached a high of 1(( basis points in early +ctober 288?.
Longer term funding costs continue to stay high with little evidence of easing. The
chart below shows the spread to swap
2
for banks/ three3year term funding. 0ecent
pricing for bank issuance remains about 1)- bps above swap for three3 year terms.
The widening spreads for long term funding are detailed in The ,heet :1? August
288?;A
JAs for the cost of longer term funding the credit spreads the banks have to pay on
their borrowings have been moving steadily wider since the credit crunch began. !n
the domestic market this is best e2emplified in the two and four year parts of the
curve. %ond issuance in "ay attracted a spread of () bps and '- bps for two and
four years respectively.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
'$
7*'<'c&( &&(,+'+
6inancial analysis is the process of identifying the financial strengths and weakness
of the firm by properly establishing relation ship between the items of balance sheet
and profit and loss account in order to make rational decision in keeping with the
objective of the organi.ation for that purpose the management use analytical tools.
To evaluate the financial condition and performance of the business entity the
financial analyst needs to perform UcheckupsU on various aspects of the business
financial health.
A tools freEuently used during these checkups is a financial ratio analysis which
relates two piece of financial data by dividing one Euantity by the other we
calculate ratios because in this way we get a comparison that may prove more
useful than the raw number by themselves. The business itself and outside providers
of capital :creditors and investors; all undertake financial statement analysis. The
type of analysis varies according to the specific interest party involved. The nature
of analysis is depending at the purpose of analyst.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
'(

%alance ,heet
As at December 31, 2008 200% 2007 2008
0upee1s
in 888
cash and balances with treasury banks $2(>-')> $'>?$??$ $'>$11)2
balances with other banks >-))81) $?8)-1' (8($188
lending/s to financial institutions 218?1?88 18-1$)2 (1888)'
investment3net >$(?>$1> 11$8?'2>1 '>2->?)(
advances3net 1'?2$'1-- 21?'>8-'? 2>2-18()8
operating fi2ed assets '8-(1-> 1>82(12$ 1)2>$)$$
deferred ta2 assets3net 1)2$)$ 8 8
other assets3net 118$1(-8 1)?>?)>1 1'?18()>
$(218?2($ (18(?--1) (($>1-'8(
L'&@'('<'!+
%ills payable )8?'>)' 18()'8-? 18--1(>?
borrowings 2$'($()> $'(8>?$1 22>>$?(8
deposits and other accounts 2-)(>1?$? 2'28'?8>> $$82)(1--
sub3ordinate loan 1-')((8 ()'2$2 8
liabilities against assets subject to finance lease 8 8 8
deferred ta2 liabilities3net 8 11?81>2 ($)1$)
other liabilities 111)1('> 11)22('$ 212-$2-8
$812>$'2' $--$>-?(2 $?-1)'?-8
N!< &++!<+ 408443#4 BB##:%7B B843%0B4
R!4*!+!<!) @,:
,hare capital -(>$2)> >2?2)>? >2?2)>?
0eserves 2(>>2(2> $(888>$? $>)>?)>-
4nappropraited profit --$8')$ -1$8)-8 '1'$$$2
$->->>)- (-(1(1-> -22((?>-
,urplus on revaluation pf assets3net of ta2 -1?)>$' ')8--1' >1'11?'
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
'-
408443#4 BB##:%7B B843%0B4
&rofit and Loss Account
For the year ended December31, 2008. 200% 2007 2008
"ark3upH return H interest earned 2-))?8>1 $1)?>-'- (88($?2(
"ark3upH return H interest e2pensed (-2-$-' )?>--$$ 11->8)(8
<et mark3upH interest income 212-2)82 2$'218>2 2?(?$8?(
&rovision for diminution in the value of investments3net 1211') 18-2>' 2>?$''(
&rovision against loans and advances3net 181(-(8 2'-'-?$ 1$$-12)
%ad debts written off directly ()888 1'' 8
11?2)$) $8>-8-1 (81'121
<et mark3upH interest income after provision 288>''>- 28?->811 2((>$'>$
No m&*5$34K '<!*!+< 'com!
6ee commission and brokerage income 2$112$- 2>$(>18 2?>>)2'
Gividend income ?11?81 >$2$88 >1)--(
!ncome from dealing in foreign currencies >'2818 >'$(8? )2)->(
Fain on sale of securities3net >8-?>- 1-88?>- )(8(2'
4nreali.ed loss on revaluation of investments
classified as held for trading 31$18- 318$1'?
+ther income3net -)8-8- 18881(' '(2$>2
Total non3mark3upH interest income (''1(1> >((?22) -)'1((8
2-8>1$?1 2)$8(2$? $82--(8$
No$m&*5$34K '<!*!+< !?4!+!
Administrative e2penses >(?2-'2 -(2>11> )-(>?)?
+ther provisionsH :reversal;3net 11(11 3$)($ 18128
+ther charges >>)8? -)$?$8 ?$8?$'
Total non3mark3upH interest e2pense >->8)11 -''>28$ ?$?)?$)
52tra ordinaryH unusual item 8 8 8
&rofit before Ta2ation 1?-88>)8 21$8?8$- 21?>)->>
Ta2ation 3 #urrent year -)81(($ >((2$-> )$(12-)
3 &rior years -'$(') 312'(()$ 3?>(?2(
3 Geferred >$$$2 ?'(-'8 1>-$$
>$-?2)2 >8(2()$ >('2'>>
&rofit after Ta2ation 121(2$'? 1-2>-->2 1-$)(>88
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
'>
4nappropriated profit brought forward (''82>8 --$8')$ -1$8)-8
Transfer from surplus on revaluation of fi2ed assets3net of ta2 $21>> 11?-- 21$1'
-822(2> --(2?2? -1-28>'
&rofit available for appropriation #7#%4824 208083:0 20B2%%%:
%asic and diluted earnings per share 3 after ta2 2304 2403 24047
%alance ,heet
Lertical Analysis
%alance ,heet
As at December 31, 2008 2007 2008 2007 2008
9 9
cash and balances with treasury banks $'>?$??$ $'>$11)2 '.>) ?.'$
balances with other banks $?8)-1' (8($188 8.'$ 8.'1
landings to financial institutions 18-1$)2 (1888)' 8.2> 8.'2
investment3net 11$8?'2>1 '>2->?)( 2).-- 21.)8
advances3net 21?'>8-'? 2>2-18()8 -$.$( -'.1?
operating fi2ed assets 1>82(12$ 1)2>$)$$ $.'8 $.?'
deferred ta2 assets3net 8 8 8.88 8.88
other assets3net 1)?>?)>1 1'?18()> (.$- (.()
(18(?--1) (($>1-'8( 188.88 188.88
Liabilities
%ills payable 18()'8-? 18--1(>? 2.'- 2.)(
borrowings $'(8>?$1 22>>$?(8 11.8' -.??
deposits and other accounts 2'28'?8>> $$82)(1-- ?2.28 ?-.)-
sub3ordinted loan ()'2$2 8 8.1$ 8.88
liabilities against assets subject to finance lease 8 8 8.88 8.88
deferred ta2 liabilities3net 11?81>2 ($)1$) 8.$$ 8.11
other liabilities 11)22('$ 212-$2-8 $.$8 -.-2
$--$>-?(2 $?-1)'?-8 188.88 188.88
N!< &++!<+ BB##:%7B B843%0B4
R!4*!+!<!) @,:
,hare capital >2?2)>? >2?2)>?
0eserves $(888>$? $>)>?)>-
4nappropraited profit -1$8)-8 '1'$$$2
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
')
(-(1(1-> -22((?>-
,urplus on revaluation pf assets3net of ta2 ')8--1' >1'11?'
BB##:%7B B843%0B4
%alance ,heet
Hori.ontal Analysis
%alance ,heet
As at December 31, 2008 200% 2007 2008 200% 2007 2008
0upee1s in 888
9 9 9
cash and balances with treasury banks $2(>-')> $'>?$??$ $'>$11)2 188 22.2$ 22.8)
balances with other banks >-))81) $?8)-1' (8($188 188 3(2.11 3$?.-$
lending/s to financial institutions 218?1?88 18-1$)2 (1888)' 188 3'-.81 3?8.--
investment3net >$(?>$1> 11$8?'2>1 '>2->?)( 188 )?.1$ -1.>2
advances3net 1'?2$'1-- 21?'>8-'? 2>2-18()8 188 18.(- $2.(2
operating fi2ed assets '8-(1-> 1>82(12$ 1)2>$)$$ 188 )>.'? '8.>)
deferred ta2 assets3net 1)2$)$ 8 8 188 3188.88 3188.88
other assets3net 118$1(-8 1)?>?)>1 1'?18()> 188 >1.'? )'.-?
$(218?2($ (18(?--1) (($>1-'8( 188 1'.'' 2'.>)
Liabilities
%ills payable )8?'>)' 18()'8-? 18--1(>? 188 ().?1 (?.?$
borrowings 2$'($()> $'(8>?$1 22>>$?(8 188 >(.-? 3-.$(
deposits and other accounts 2-)(>1?$? 2'28'?8>> $$82)(1-- 188 1$.(- 2?.2?
sub3ordinted loan 1-')((8 ()'2$2 8 188 3)8.88 3188.88
liabilities against assets subject to finance lease 8 8 8 188 8.88 8.88
deferred ta2 liabilities3net 8 11?81>2 ($)1$) 188 8.88 8.88
other liabilities 111)1('> 11)22('$ 212-$2-8 188 (.'$ '8.2-
$812>$'2' $--$>-?(2 $?-1)'?-8 188 1).'> 2).?-
N!< &++!<+ 408443#4 BB##:%7B B843%0B4
R!4*!+!<!) @,:
,hare capital -(>$2)> >2?2)>? >2?2)>?
0eserves 2(>>2(2> $(888>$? $>)>?)>-
4nappropraited profit --$8')$ -1$8)-8 '1'$$$2
$->->>)- (-(1(1-> -22((?>-
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
'?
,urplus on revaluation pf assets3net of ta2 -1?)>$' ')8--1' >1'11?'
408443#4 BB##:%7B B843%0B4
;!*<'c&( A&(,+'+
&rofit and Loss Account
For the year ended December31, 2008. 2007 2008 2007 2008
"ark3upH return H interest earned $1)?>-'- (88($?2( 188 188
"ark3upH return H interest e2pensed )?>--$$ 11->8)(8 2(.)(- 2?.?)
<et mark3upH interest income 2$'218>2 2?(?$8?(
&rovision for diminution in the value of investments3net 18-2>' 2>?$''( 8.$$12 >.)82>
&rovision against loans and advances3net 2'-'-?$ 1$$-12) '.$18? $.$$(2
%ad debts written off directly 1'' 8 8.888> 8
$8>-8-1 (81'121
<et mark3upH interest income after provision 28?->811 2((>$'>$ >-.>1$ >1.8'$
No m&*5$34K '<!*!+< 'com!
6ee commission and brokerage income 2>$(>18 2?>>)2' (8.?-? ('.(''
Gividend income >$2$88 >1)--( '.?8-? 18.>>$
!ncome from dealing in foreign currencies >'$(8? )2)->( 18.)-$ 12.->$
Fain on sale of securities3net 1-88?>- )(8(2' 2$.2)> 12.)?-
4nreali.ed loss on revaluation of investments
classified as held for trading 31$18- 318$1'? 38.28$2 31.)?1'
+ther income3net 18881(' '(2$>2 1-.-1 1>.2)2
Total non3mark3upH interest income >((?22) -)'1((8 188 188
2)$8(2$? $82--(8$
No$m&*5$34K '<!*!+< !?4!+!
Administrative e2penses -(2>11> )-(>?)? $-.-(- ('.8?)
+ther provisionsH :reversal;3net 3$)($ 18128 38.82(- 8.8>-?
+ther charges -)$?$8 ?$8?$' $.)-' -.(8(
Total non3mark3upH interest e2pense -''>28$ ?$?)?$) $'.2)' -(.-->
52tra ordinaryH unusual item 8 8 8 8
&rofit before Ta2ation 21$8?8$- 21?>)->> 1$'.-? 1(2.2$
Ta2ation 3 #urrent year >((2$-> )$(12-) (2.282 ().)('
3 &rior years 312'(()$ 3?>(?2( 3?.()') 3-.>2-
3 Geferred ?'(-'8 1>-$$ -.?>82 8.18)-
>8(2()$ >('2'>> $'.-?2 (2.2$2
&rofit after Ta2ation 1-2>-->2 1-$)(>88 188 188
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
''
4nappropriated profit brought forward --$8')$ -1$8)-8
Transfer from surplus on revaluation of fi2ed assets3net of ta2 11?-- 21$1'
--(2?2? -1-28>'
&rofit available for appropriation 208083:0 20B2%%%:
%asic and diluted earnings per share 3 after ta2 2403 24047
Ho*'Ao<&( A&(,+'+
&rofit and Loss Account
For the year ended December31, 2008. 200% 2007 2008 200% 2007 2008
"ark3upH return H interest earned 2-))?8>1 $1)?>-'- (88($?2( 188 2$.$1 --.$(
"ark3upH return H interest e2pensed (-2-$-' )?>--$$ 11->8)(8 188 )$.?1 1--.()
<et mark3upH interest income 212-2)82 2$'218>2 2?(?$8?( 188 12.-> $(.82
188
&rovision for diminution in the value of investments3net 1211') 18-2>' 2>?$''( 188 31$.1( 211(.-)
&rovision against loans and advances3net 181(-(8 2'-'-?$ 1$$-12) 188 1'1.)2 $1.>8
%ad debts written off directly ()888 1'' 8 188 3''.-? 3188.88
11?2)$) $8>-8-1 (81'121 188 1-'.1- 2$'.?2
<et mark3upH interest income after provision 288>''>- 28?->811 2((>$'>$ 188 $.'2 21.?'
No m&*5$34K '<!*!+< 'com!
6ee commission and brokerage income 2$112$- 2>$(>18 2?>>)2' 188 1$.'' 2(.8$
Gividend income ?11?81 >$2$88 >1)--( 188 322.11 32$.'$
!ncome from dealing in foreign currencies >'2818 >'$(8? )2)->( 188 8.28 -.1(
Fain on sale of securities3net >8-?>- 1-88?>- )(8(2' 188 1().)2 22.21
4nreali.ed loss on revaluation of investments
classified as held for trading 31$18- 318$1'?
+ther income3net -)8-8- 18881(' '(2$>2 188 )-.$1 >-.1?
Total non3mark3upH interest income (''1(1> >((?22) -)'1((8 188 2'.1' 1>.8$
2-8>1$?1 2)$8(2$? $82--(8$ 188 ?.'- 28.)$
No$m&*5$34K '<!*!+< !?4!+!
Administrative e2penses >(?2-'2 -(2>11> )-(>?)? 188 31>.$8 1>.(2
+ther provisionsH :reversal;3net 11(11 3$)($ 18128 188 31$2.?8 311.$1
+ther charges >>)8? -)$?$8 ?$8?$' 188 )>8.21 11(-.('
Total non3mark3upH interest e2pense >->8)11 -''>28$ ?$?)?$) 188 3?.>8 2).?-
52tra ordinaryH unusual item 8 8 8
&rofit before Ta2ation 1?-88>)8 21$8?8$- 21?>)->> 188 1-.1) 1?.28
Ta2ation 3 #urrent year -)81(($ >((2$-> )$(12-) 188 1$.88 2?.)>
3 &rior years -'$(') 312'(()$ 3?>(?2( 188 3$1?.11 32(-.)2
3 Geferred >$$$2 ?'(-'8 1>-$$ 188 1$12.-( 3)$.?'
>$-?2)2 >8(2()$ >('2'>> 188 3(.') 2.12
&rofit after Ta2ation 121(2$'? 1-2>-->2 1-$)(>88 188 2-.)2 2>.>2
4nappropriated profit brought forward (''82>8 --$8')$ -1$8)-8
Transfer from surplus on revaluation of fi2ed assets3net of ta2 $21>> 11?-- 21$1'
-822(2> --(2?2? -1-28>'
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
188
&rofit available for appropriation #7#%4824 208083:0 20B2%%%:
%asic and diluted earnings per share 3 after ta2 2304 2403 24047
RATIO ANALYSIS
0atio Analysis is an important and age3old techniEue of financial analysis. 0atios are
important and helpful in the reference thatA
These simplify the comprehension of financial statement and tell the
whole story of changes in the financial conditions of the business.
These provide data for inter3firm comparison. The ratios highlight the
factors associated with successful and unsuccessful firms also reveal
strong and weak firms.
These help in planning and forecasting these can assist management in its
basic functions of forecasting planning coordination and control.
These help in investment decision in case of investor and lending decision
in case of %ankers etc.
However the ratios are only indicators they cannot be taken as final regarding
good and bad financial position of the business other things have also to be seen.
#0 RETURN ON ENUITY
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
181
Gividing profit after ta2ation by share holder/s eEuity. 0+5 compares net profit
after ta2es to the ,hare holder/s 5Euity.
This ratio is calculated asA
0+5R&rofit after ta2esH,hare holder/s 5Euity
2008 Q 2:042L
2007 Q 330%#L
20 RETURN ON ASSETS:
This ratio shows the efficiency of organi.ation that how efficiently utili.es their
assets. This ratio relates profits to assets.
!t is calculated asA
P*o-'< &-<!* T&?KTo<&( A++!<+
2008 Q 30%0L
2007 Q 40%0L
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
182
30 EARNING PER SHARE:
<.&.A.T S <o. +f outstanding shares
2008 Q 24047L
2007 Q 24030 L
40 RETURN ON DEPOSIT:
<.&.A.T N 188S Total Geposit
2008 Q 40%B L
2007 Q B022 L
B0 7ASHKDEPOSIT RATIO:
OThis ration is obtained by dividing cash by current liabilities H liabilitiesP.
This ratio shows that the cash is enough for payment of current liabilities or not.
!t is calculated as cash 0atioR#ashHcurrent liabilities
+r
R#ashHTotal Geposit
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
18$
2008 Q ##0:: L
2007 Q #30B8 L
%0 INTEREST IN7OMEKTOTAL IN7OME RATIO:
!nterest !ncome S Total !ncome
2008 Q 8703% L
2007 Q 830#3 L
70 NET PROFIT MARGIN:
This ratio measure the firm/s profitability of salesH interest earned after taking
account of all e2penses and income ta2es.
This ratio can be calculated asA
N!< 4*o-'< m&*=' *&<'oQ N!< P*o-'< &-<!* <&?!+ K '<!*!+< !&*!) R#00
2008 Q 330B4L
2007 Q 3:0:2 L
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
18(
80 A;ERAGE PROFIT PER BRAN7H:
&rofit <et S <o. +f %ranches
2008 Q R+0 #4D:84D::002B
2007 Q R+0 #4D878D7#B04
:0 OPERATING ECPENSE RATIO:
<on markup e2pense S Fross income
2008 Q 27072 L
2007 Q 2#0:% L
#00 TOTAL ASSET TURNO;ER:
!nterestHmarkup earnedN188 S Total asset
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
18-
2008 Q :002 L
2007 Q 7074 L
##0 RISK ASSETS TURNO;ER:
<et interest income after provision S 0isk assets
2008 Q %B0:8 L
2007 Q %80##L
#20 AD;AN7ES TO TOTAL DEPOSITS:
This ratio show that how much efficiently the bank advances the deposits of their
customer to borrower.
!t is calculated as.
A)2&c!+ )!4o+'< *&<'o Q A)2&c!+K )!4o+'<
2008 Q 7:048 L
2007 Q 740:% L
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
18>
#30 DUE FROM BANK TO DUE FROM BANK:
Landing to financial institutionN 188 S %orrowing from financial institution
2008 Q #800: L
2007 Q 20%% L
O*=&'A&<'o &&(,+'+ ' com4&*'+o .'<h '<+ ')3+<*, 8o* .'<h '<+ com4!<'<o*+9
#ompetitive advantage spells out the JuniEueness1 of the organi.ation vis3K3vis its
competitors. so the H%L also have uniEueness in its dealing with customers and
also have uniEueness in his strategy with other their competitors. %usiness analysis
is imperative for the organi.ation to ascertain the mood and the conditions for
starting or consolidating a business venture. %usiness strategy analysis involves
analysis of the organi.ational strategy to create a sustainable competitive advantage
primary objective of competitor analysis is to understand and predict the rivalry or
interactive market behavior between firms in their Euest for a competitive position
in an industry. Therefore the H%L also always analy.e their competitors %anks
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
18)
Toward this end researchers have e2amined factors that influence competitive and
patterns of entry into and e2it from rivals1 markets However researchers have
made limited effort to investigate the prebattle competitive relationship between
rivals and the e2tent to which it may predict rivalrous behavior in the market. This
omission is due partly to the restricted conceptual treatment of competitor analysis
which has not fully incorporated the essential antecedents that affect a firm1s
competitive activity let alone considered them in an integrated way.
!ntensity of rivalry one of &orter1s :1'?8; well3known five forces driving
competition has remained mainly a theoretical construct confined to the industry
level. !n terms of analy.ing firms competing in an industry the strategic3group far
the most popular and relevant. However researchers who use this approach have
largely ignored the market conte2t in which competitors carry on their battles and
the e2tent to which two firms actually compete directly against each other.
Although the marketing literature recogni.es the importance of the market conte2t
its contribution has been primarily in analy.ing competitors and competition at the
brand or individual3market level rather than at the firm level. +ther approaches
usually represent a high degree of abstraction and rely primarily on managers1 or
researchers1 subjective perceptions which often are too remote to be linked to
competitive behaviors in the market Thus far some of the most fundamental
Euestions in competitor analysis have remained une2plored 1'?-;. 6or e2ample
how can researchers studying competition differentiate among players in an
industry to e2plain each player1s market behaviorsV How can a firm before
launching an attack assess its prebattle relationship with a given rival and the
resultant likelihood that this rival would retaliateV How can a firm gauge which
opponent is most likely to attack its marketsV How can strategists differentiate
among a set of competitors to allow the firm to allocate appropriate resources and
attention to eachV 6inally although the importance of competitor analysis and
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
18?
interfirm rivalry is well recogni.ed there has been no systematic attempt to
integrate the two topics.
This article seeks to provide a conceptual link by proposing two firm3specific
theory3based constructsA the market commonality and the resource similarity
between a given pair of competitors. Taking the firm as the basis for analysis !
argue that each firm has a uniEue market profile and resource endowment and that a
comparison with a given competitor along these two dimensions will help to
illuminate the competitive relationship between them and to predict how they may
attack :or respond to; each other in the market. This firm3specific conceptuali.ation
also leads to the idea of competitive asymmetry the notion that a given pair of firms
may not pose an eEual threat to each other. ! first offer a number of propositions
that use market commonality and resource similarity to predict competitive attack
and response. ! also propose measures to assess market commonality and resource
similarity along with a demonstration of how such measures could be implemented.
The article ends with a number of implications for research and practice.
F3<3*! 4*o+4!c<+ o- <h! o*=&'A&<'o.
The structure of the %anking markets has changed radically over the last decade while in
contrast the futures markets more or less maintained the status Euo. %ut now the futures
markets are in catch3up mode as evidenced by the emergence of some dark pools and
%anking firms are beefing up their technology to take advantage of what is coming down
the pike. 6or the future aspects the H%L should be make itself active and also efficient
and effective in the banking field and get the competitive advantage. That when occur
truly when the H%L produce new products and services to their customers. The H%L
should also introduce the new technologies in the %anking field before their competitors
and provide the facilities to their customers and get the customer1s loyalty . The H%L
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
18'
should also provide the better service than their competitors and also should give the full
response in the any branch.
The H%L also should improve their computeri.ed system in the bank and the bank in the
future also want to trained their employees in any technology and also will provide the
new technology that facilitate the customers of the H%L
S6OT &&(,+'+ o- o*=&'A&<'o ' <h! @3+'!++ +!c<o*
H%L is considered to be a very sound bank in the financial circles. The bank where
the customers can safely keep their money as long as they want. !n ,7+T analysis
the best strategies accomplish in organi.ation/s mission byA 1.52ploiting
opportunities and strengths.2.<eutrali.ing its threats and$.Avoiding its weaknesses.
6ollowing is a list of ,7+T of H%L
S<*!=<h+
A skill or capability that enables H%L to conceive and implement its
strategies.
The officers of H%L are considered as one of the most able professionals in
the banking world.
! observed that H%L employees interact with their clients as if they are their
personal friends and discuss about their problems as their own.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
118
H%L has got a reliable and easy to use internal computer system. 5very
information regarding the transactions in customers/ deposits has been
computeri.ed.
H%L maintained its data properly.
H%L has very good security system.
H%L is the larger commercial bank in &akistan with the network of over 1($'
domestic and international branches.
%eing the pioneer of banking in &akistan H%L is the oldest and is the richest
in e2perience.
H%L focuses on consumer banking by lucrative schemes products and
services suiting best to the wants and demands of the customers.
H%L has opened all its branches at commercial areas so that the customers or
clients face no problems in reaching to the bank.
The band is always on the look to improve its services both to the domestic as
well as overseas customers.
Human resources development and introduction of new technology towards
modern banking.
2( hours cash access and safe payment products for high value transaction.
Having potential to encounter the competitive environment in the market.
Leteran and e2perience private management group also involved in other
interests like te2tile and cement industry.
#ustomer enjoys the services at the residential localities.
6!&5!++!+
Highest number of branches effecting the proper maintenance and difficulty in
providing same working environment at the each branch
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
111
&oorer system of recovery of the system is a threat to bankruptcy.
Lack of customer feed back.
Low job satisfaction.
&oor AT"/s ,ervice
!nconsistency in efficiency and working atmosphere due to the largest of
branches.
,ense of insecurity in the employees serving at low profitable branches due to
the down si.ing.
6emales feel uneasy in an environment among the male workers.
Lictim of political legal and socio3cultural pressures
.Lack of professionalism in the branch employees mostly.
O44o*<3'<'!+
Huge untapped market potential in consumer banking
!n opportunity e2ist in form of opening of ladies banking section within the
branch which is entirely a new idea and it will attract customer.
+pportunity for developing value added services combined with corporate
banking relationships cash management services to large and medium si.ed
corporate clients.
Frowing policies of government on business and commerce sector provide
H%L opportunities to take advantages of these policies to meet efficiently with the
business people to solve their problems with the instant cash and financing
facilities.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
112
Fovt. is taking very bold steps to promote !T in &akistan. H%L has an
opportunity to improve in technology.
Large international network which principally focuses on trade finance with
&akistan can be utili.ed to tap trade activities in other markets. !n addition services
such as cross border H offshore financing for corporate customers can be enhanced.
#ustomer feedback on different products and accounts has really improved the
bank performance and encourage the atmosphere for other future policies.
H%L also has an opportunity to e2pand its new technological advancement
likeM tele banking and internet banking facilities in order to serve the customer more
efficiently specially
53banking facility is also a new opportunity which is a flourishing business in
foreign countries and can also be here if H%L takes the initiatives.
6urther reduction in intermediation costs possible with improving technology.
Gue to efficient and veteran management group H%L can also improve !ll and
e2pand its foreign operation successfully.
Habib %ank Limited provides opportunity to utili.e its skills and efficiencies
in leasing business.
Th*!&<+
An area in the environment that increases the difficulties the organi.ation/s
achieving high performance.
#onsolidation in the banking sector resulting in increased competition.
,hortage of trained and speciali.ed staff at lower e2ecutive and officer levels
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
11$
The threat of inconsistency and government policy regarding to business and
economics sectors specially political and regional situation which makes the
environment uncertain.
Frowing global technological advancement.
,trict regulation by government over credit facilities to the customers as !ll as
to meet the prudential.
Loss of confidence of overseas customers due to free.ing of accounts.
6acing more competition by foreign banks in the market.
6oreign banks are flourishing in field of consumer financing.
Also the increasing operation of private banks.
Highly attractive and advance services by foreign banks to their customers.
7oc(3+'o 1 *!comm!)&<'o+ -o* 'm4*o2!m!<
R!comm!)&<'o I P*o4o+!
1; ! will give following suggestions for the better function of the %ankA
2; The management should provide better arrangement for the employees.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
11(
$; The daily newspapers and journals should be provided to the employees
and customers visiting there.
(; A separate hajj applications acceptance counter should be provided to
overcome inconveniences faced by the customers.
-; A separate ladies counter should be there
>; The %ank management should be very careful while granting the loans.
); &ersonal interests should not be given importance and customers
?; &ersonal credit worthiness must be carefully scrutini.ed public relation
desk should be established in each and every branch for guidance as well as
redresses of grievance of customers at the spot.
'; +nline %anking should be introduced in all the branches.
18; Aggressive publicity campaign must be introduced through press and
5lectronic media for new products and scheme by initiating vigorous marketing
policy.
11; <ew talent H professionals should be hired to coupe with the competitive
demand in the industry.
12; !nformation technology should be introduce in all the branches to
enhance the efficiently.
1$; The commission on government rashed enhanced H made rational to
increase the %anks profitability.
1(; The financial statement should be made more transparent and reliable.
1-; #onsumer financing should be initiated to capture the market share.
1>; 5mployee/s induction promotion and transfer should always be made on
merit.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
11-
1); To motivate the employees their remuneration H salaries should be made
at par with top tier %anks.
R!-!*!c! 1 So3*c!+ 3+!) 8Sho3() @! 4*o2')!) ' APA
-o*m&<9
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
11>
! collect this information from
1. Habib %ank Limited of &akistan Annual 0eports
2. ,tate %ank of &akistan &rudential 0egulation for #orporate and #ommercial
%anking.
$. ,tate %ank of &akistan %&0G #irculars
(. Gawn <ewspapers for updated information
-. !nstruction #irculars of <ational %ank Limited
>. 5conomic 0eviews for %anks and their activities
). ,tate %ank of &akistan 7ebsite httpAHHwww.sbp.gov.pk
?. Habib %ank1s website httpAHHwww.hbl.com
! also visit @ complete ? weeks internship in Habib bank of &akistan "ain
#hubara
0oad Layyah for collecting data.
A!?!+
List of Anne2es
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
11)
A!? #
+verview of the organi.ation
%rief history
<ature of the organi.ation
%usiness volume
&roduct lines
#ompetitors
A!? 2
+rgani.ational structure
+rgani.ational Hierarchy chart1
<umber of employees1.
"ain offices
#omments on the organi.ational structure
A!? 3
&lan of your internship program
A brief introduction of the branch where you did your internship
,tarting and ending dates of your internship
The departments in which you got training and the duration of your training
A!? 4
Training program
!ntroduction of all the departments
Getailed description of the department you worked in +0 Getailed description of
the project assigned.
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
11?
A!? B
,tructure of the 6inance Gepartment
Gepartment hierarchy
A!? %
Accounting system of the organi.ation
6inance system of the organi.ation
4se of electronic data in decision making
"obili.ation of funds
Feneration of funds
,ources of funds
A!? 7
#ritical analysis
0atio analysis
Hori.ontal @ vertical Analysis
+rgani.ation analysis in comparison with itscompetitors;
6uture prospects of the organi.ation.
A!? 8
S6OT &&(,+'+ o- o*=&'A&<'o ' <h! @3+'!++ +!c<o*
A!? :
#onclusion @ recommendations for improvement
0eference @ ,ources used
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
11'
;'*<3&( U'2!*+'<, o- P&5'+<&
...023+<3)!<+0'=0com
128