Professional Documents
Culture Documents
MBA(finance)
UNIVERSITY OF GUJRAT
SCIENCE COLLEGE EVENING CAMPUS
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ACKNOWLEDGEMENT
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All praises and thanks for Almighty Allah who is entire source of
knowledge and wisdom to mankind. Who gave me the strength, patience,
courage and enthusiasm needed to write and complete this report, then to my
friends who assisted me in this effort and we worked daylong to accomplish
this assignment and to my parents who supported me financially and
encouraged me morally.
I worked in the different department of the Habib Bank Limited branch
G.T. Road Gujrat of Pakistan for the aim to get the practical knowledge. The
employees of the HBL are very cooperative who provide me all the necessary
information required to me for the completion of the report.
It was pleasure for me to be sent to the HBL branch G.T. Road Gujrat.
I am very thankful to the honorable internship incharge. It was a very healthy
activity for me.
The preparation of this report was a massive undertaking but the highly
competent and experienced bankers of HBL branch G.T. Road Gujrat.
Provided me with all assistance, information, advice and suggestions that I
needed which contributed essentially to this report.
Executive Summary:
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This report is for academic purpose. In this report I have mentioned the
history, role of organization in Pakistan, network, working of different
departments, particular information regarding the HBL branch Gujrat,
organizational structure, polices, strategies, SWOT analysis, PEST analysis,
Ratio analysis of HBL, and different problems of HBL and recommendations.
For this report I gather information from Branch Manager and also searched at
internet and collect information about organization.
Every student of Master in Business Administration at University of
Gujrat has a necessary requirement to do Six to Eight weeks internship in any
of the well reputed organization. The purpose of this program is to acquaint
the students with practical applications of theoretical concepts taught to them
during conduct of their MBA program. Really, it was a nice opportunity to
have a close comparison of theoretical concept in practical field, involving the
use of primary and secondary data. All the efforts on the way are summarized
in shape of this Internship Report.
This report has different chapters and each chapter contains
information regarding the particular area. Not only is the introduction of
internship report given but the introduction of HBL.
The word 'Bank' is said to have been derived from the words Bancus or
Banque or Bank. HBL was the first commercial bank to be established in
Pakistan in 1947. Over the years, HBL has grown its branch network and
become the largest private sector bank with over 1,450 branches across the
country and a customer base exceeding five million relationships. HBLs
branch network is extended all over the Pakistan which has its competitive
edge over all other private sector banks in Pakistan. At the end of this report I
have given my suggestion for the improvement of the bank.
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Table of Contents
1
1.1
1.2
1.3
1.4
1.5
Organization:..............................................................11
1.6
Summary:.................................................................12
INTRODUCTION TO HBL....................................................13
2.1
2.2
2.3
2.5
2.6
Summary....................................................................21
3.1.2
3.1.3
Number of departments..........................................25
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Operations Department:...................................................27
Finance Department.........................................................32
Administration Department..............................................32
Account opening department:..........................................33
Cash department:.............................................................35
Bill clearing department:..................................................35
Foreign department:.........................................................36
Fixed Deposits Department..............................................36
3.1.4
3.2
Current staf................................................................38
POLITICAL ENVIRONMENT.................................................53
ECONOMIC TRENDS..........................................................53
SOCIO-CULTURAL ENVIRONMENT.....................................54
TECHNOLOGICAL FACTORS...............................................55
LEGAL ENVIRONMENT.......................................................56
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References........................................................................66
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CHAPTER no.1
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1.1
1.3
Page 9
1.4
For the completion of my report both primary and secondary data was
utilized. Methodologies used were both:
I.
II.
1.5
Primary Data:
Personal observations
Discussion with Bank Personnel
Secondary Data:
Annual reports
Journals
Newspapers
Reports
Internet
Organization:
I have selected Habib Bank Limited for internship. Gujrat branch of
Habib Bank was the organizations where I have spend 6 weeks as an internee.
To complete my internship at Habib Bank Limited was my top priority as it
was an honor for me to join HBL. The value of HBL is very good and people
have a good image of HBL in their minds. Customers have satisfactory
services getting from bank and feel proud of being the customer of HBL.
Thats why I have also satisfactory period spend at HBL. They not only care
for their customers but workers and internees as well.
1.6
Summary:
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This is the first chapter of the report containing the detail introduction
of the report. This chapter starts from the introduction. Then contains data
about the background of the report. In this chapter study purpose is also
depicted. Objectives and scope of internship at HBL are discussed in detail in
this chapter. Data collected from primary and secondary sources are
mentioned in methodology section of the report. Then the description of
organization I have chosen for internship is made. Now it is the end of chapter
one on the summary. Thus chapter one is all about the complete introduction
to internship report.
CHAPTER no.2
2 INTRODUCTION TO HBL
Chapter two is about the introduction to the organization. In this
chapter the overall banking system is depicted. This chapter contains
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information about what is the current banking situation in Pakistan. How many
banks are working in Pakistan and how the banks work in Pakistan. Then the
role of specific bank (Habib Bank Limited) is depicted in detail. The overall
introduction of organization is also included in this chapter.
What are the different functions of the organization are also included in
this chapter. Like all other banks, HBL also has its own objectives which are
also the part of this chapter.
Then the specific organization in which I did my internship is also
included. At the end of the report the summary of the whole chapter is written.
2.1
banking, are greater than ever before. In the financial year of 2004-05, the
banking sector experienced growth rates of 21% and 36% in its deposit and
advances portfolio respectively, which in turn, has increased the banks
stability as compared to the preceding year .A significant shift of focus from
industrial lending to consumer products has allowed the banks to enjoy
enormous spreads. However, the manufacturing sector is still enjoying the
highest share in credit facilities extended by the banking industry.
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banks,
national
savings
schemes,
insurance
companies,
1947. Over the years, HBL over 1,455 branches across the country and a
customer base exceeding five million relationships. With a presence in 26
countries, subsidiaries in Hong Kong and the UK, affiliates in Nepal, Nigeria,
Kenya and Kyrgyzstan and representative offices in Iran and China, HBL is
also the largest domestic multinational. The Bank is expanding its has grown
its branch network and become the largest private sector presence in principal
international markets including the UK, UAE, South and Central Asia, Africa
and the Far East. Key areas of operations encompass product offerings and
services in Retail Banking. HBL has the largest Corporate Banking portfolio in
Pakistan with an active Investment Banking arm. In the UK and GCC, HBL
focuses on trade finance and remittances for the South Asian Diaspora in
addition to basic banking facilities. HBL has always been a bank and a brand
for the masses, with a history that is inextricably linked with the history of
Pakistan itself. As it continues to grow, both locally and abroad, it strives to
embody its brand personality: honest, approachable, and inclusive.
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2.3
at national and international level. HBL has following distinct Vision, Mission
and Values:
HBLs Vision, Mission and Values:
OUR BRAND
Our brand identity is the outward expression of what we stand for as an
organization. This is summarized in our vision, mission and is supported by
our values.
Vision
Enabling people to advance with confidence and success.
Mission
To make our customers prosper, our staff excel and create value for
shareholders.
SYMBOL OF HBL
Symbol depicts
Bismillah ============Islamic Culture and Values
Sword ============== Power
Lion================ As a symbol of strength
Values
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Our values are the fundamental principles that define our culture and
are brought to life in our attitude and behaviors. It is these values that make us
unique and unmistakable. Our values are defined below:
Excellence
This is at the core of everything we do. The markets in which we
operate are becoming increasingly competitive, giving our customers an
abundance of choice. Only through being the very best in terms of the
service we offer, our products and premises - can we hope to be successful and
grow.
Integrity
We are the leading bank in Pakistan and our success depends upon trust. Our
customers - and society in general expect us to possess and steadfastly
adhere to high moral principles and professional standards.
Customer Focus
We understand fully the needs of our customers and adapt our products
and services to meet these. We always strive to put the satisfaction of our
customers first.
Meritocracy
We believe in giving opportunities and advantages to our employees on
the basis of their ability. We believe in rewarding achievement and in
providing first-class career opportunities for all.
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Progressiveness
We believe in the advancement of society through the adoption of
enlightened working practices, innovative new products and processes and a
spirit of enterprise.
MANAGEMENT SYSTEM:
In HBL there is an open management system.
An open management system is one that is influenced by and is continually
interacting with its environment.
ORGANIZATIONAL LEVEL
TOP MANAGEMENT
President
Senior Executive Vice President
MIDDLE MANAGEMENT
Executive Vice President
Senior Vice President
Vice President
LOWER LEVEL MANAGEMENT
Assistant Vice President
Officers
ROLES PERFORMED BY DIFFERENT LEVEL OF
TOP LEVEL MANAGEMENT
To make day to day decisions to run the organization to make more
profit.
To implement policies approved by board of directors.
To recommend different products / changes in policies / procedure for
approval.
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securities.
Issuing of travelers chafes to give credit facilities to travel.
Issuing of letter of credit to facilitate imports and exports.
Accepting bills of exchange on behalf of customers.
Purchasing shares for the customers.
Undertaking foreign exchange business.
Furnishing trade information and tending advice to customers.
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shares.
The credit requirements of different sectors.
Offer credit to the agriculture sector at a lower rate.
Effective and efficient service among the competitor.
The international trade.
The banking services to urban and rural area
Uplift the bank in banking as superior and best banking. Serve
Commercial Banking
Corporate Banking
Investment Banking
Global Treasury
Islamic Banking
Cash Management
Asset Management
Zarai Banking
have chosen the HBL Gujrat branch. Many branches of HBL in Gujrat. I
completed my internship in HBL branch.
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This branch is located on the G.T. Road BR. Gujrat. This is located on
such a place where people can go easily and not face any difficulty in reaching
there to get the banking services.
The place where HBL is working is good for transport facility. Every
type of transport has an easy access to this location thus increasing the value
of this branch.
Internee Work:
I have spend in HBL branch 6 weeks. 1 week for products
information, 2 week for account opening, 1 week for clearing dept., 1 week for
cash dept. and 1 week for remittance. My timetable in Ramadan 8 to 1:45 and
in normal day 9 to 5. Starting & ending date my internship is 5 th july to 19th
august 2013.
2.3
Summary
This chapter is about the introduction to Habib Bank Limited. First of
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CHAPTER no.3
3 Introduction of HBL My Branch 1449:
Chapter three is about the introduction to the Habib Bank Limited. In
this chapter the overall working of HBL is described. This chapter contains
information about the brief history of the organization. When the bank was
established and who starts it.
HBL branch G.T. Road Gujrat is established 19 august 1975. No of
account is 2484 and base is 380,399.
Banks have a proper communication system through which the head
office communicate to the branch offices. The details of communication
system followed by head office are included in chapter three.
HBL branch of G.T. Road BR. Gujrat has many departments. In this
branch manager, operational manager, assistant manager, cash officer, cashier.
Staff of the branch, their qualifications and experiences is also the part of the
chapter. Branch also has training programs, and details about them are
included in it. Responsibilities of the employees are also written.
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3.1
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sector with a major market share in inward foreign remittances (55%) and
loans to small industries, traders and farmers. International operations were
expanded to include the USA, Singapore, Oman, Belgium, Seychelles and
Maldives and the Netherlands.
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Furthermore this department makes the Balance sheet on daily basis and if any
mistake occurs in the accounts then it will be corrected in the beginning that
way banks saved from any serious damage.
Audit team comes from the head office on the annually and semi
annually basis to check the accounts. Audit team may also come at any time in
the Banks to check that whether the staff maintaining the customer record on
daily basis or not.
3.1.3 Number of departments
REVIEW OF VARIOUS DEPARTMENTS OF HBL:
Various departments are working in all the branches of Habib bank to
facilitate the customers.
Followings are the main departments of HBL:
I.T Department
Manager Operations Department
i. Deposit department
ii. Recovery Operation Department
iii.
Finance Department
iv. Internal Audit
v. Administration Department
vi. Account opening department.
vii. Cash department
viii.
Lockers department.
ix. Bill clearing department.
x.
Foreign exchange department.
xi. Information Technology Department
xii. Fixed Deposits Department
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customers loyal with the bank. He not only cares for the existing customers
but also try to generate new references to the bank. Branch Manager tries not
only to sustain the relationship of customers to the bank but also tries hard to
strong the relationship of customers to the bank. Branch Manager looking for
presents customers and also tries to take care of future or expected customers
of the bank. Thus, as this department is directly related to make the customer
bank relationship stronger so it is the most important department of the bank
and branch manger directly deals with customers to make them loyal with the
bank.
Credit Department:
The function of credit department is to lend money in the form of clean
advances, against promissory notes, as well as secured advances against
tangible and marketable securities. The bankers prefer such securities that do
not run the risk of general depreciation due to market fluctuations.
Loans are offered to the staff of the following four categories.
House Building Loans against mortgage of property.
Loan for purchasing vehicles.
The Credit Department is responsible for advancing loans to the
customers. The loans are mainly categorized in two types as given below:
i.
Lending Products:
ii.
enterprises
Banking Products:
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with each other through intranet. The banking and treasury transactions
are also made through this system and could be accessed anywhere in all
over the Pakistan.
Software used by HBL
HBL is enjoying the competitive advantage of vast operational area.
There are two types of branches come under HBL network. One type is the
online branches whereas other type is batch branches (offline branches). So
obviously HBL uses two types of different software. All batch branches use
SIMEX software whereas online branches use MYSIS.
MISYS
MISYS (online) perform two type of system
Cashier system
This system use only cash transaction like cash withdraw, deposited,
Remittance, Accounts opening, LFT etc.
Equation system
Clearing inward or out ward, special or intercity clearing, supervision
Operations Department:
The other important department is the operations department.
Remittance officer is also in this department so increases the value of this
department. Thus there are many operations which fall under this department.
Due to increasing the number of operations under this department, the
department is getting most importance. The operational departments fall under
this head is as follows:
3.1.1.1 Deposit department:
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facilities
Up to 10 Bankers Cheques free (at minimum balance of Rs.
500,000)
Funds transfer to any bank through HBL Phone Banking
3.1.1.3 Current Account
facilities
Funds transfer to any bank through HBL Phone Banking
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Term
1 Year
10.25%
3 Year
11.00%
5 Year
10.87%
10 Year
10.24%
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Treasury:
Accounts:
different statements.
Internal Audit
This Div. works under the Board of Directors. It has a President who is
CIA qualified. Its function is to observe the internal control. The audit is
conducted quarterly. The audit teams inspect every branch of the bank.
Surprise visits are also conducted by the auditors.
Administration Department
All the matters of administrative nature are being dealt in this
department. This includes: transfers, posting, promotion orders, leave orders,
approvals etc.
Account opening department:
Basic function of the accounts department is to open new account and
facilitate the customer for the account opening purpose. There are certain
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Copy of CNIC
Service certificate or student card.
Utility bill
Provisional receipt
KYC (Know Your Customer)
Pictures of account holder
75001089
Account Serial #
01
Type of account
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generated. New account remains active for one day after that it is blocked by
the head office until CNIC of the customer is verified from NADRA.
Cheque book issuing:
After the CNIC verification account opening officer has to issue a
cheque book to customer so that he can be able to make withdrawal from his
account. Now a day in Habib bank cheque book issuing process is centralized
that take 06 days to complete.
Types of accounts:
Individual accounts:
Individual accounts are the most common personal investment
accounts. Opened by single person.
Joint accounts:
A joint account occurs when two or more than two customers have one
account. The parties to a joint account are considered in law as they are one
person.
Business accounts:
Business accounts can be opened by institutions, companies,
partnerships, trusts and non-profit organizations. Following documents are
required.
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Notice by a Customer
Death of a Customer
Customers Insanity
By order of court
Cash department:
Cash Department is very sensitive and risky part of the bank. Very
causations and competent personnel are needed for the Job. HBL has really
such a diligent staff with appreciable competencies and will to do work. Main
function of cash department is to deal with cash payment and cash receipts.
Bill clearing department:
Every bank acts in two way i.e.
Paying Bank
Collecting Bank
Here in theory no legal obligation on a banker to collect cheques, drawn up
to other banks for a customer. It is, however, an important function of crossed
cheques. A large part of this work is carried out through the N.I.F.T.
NIFT- National Institutional Facilitation Technologies (Pvt.) Limited:
NIFT is a joint venture between a consortium of six major banks and
private sector. It is responsible for the establishment and management of
automated clearinghouse facilities in Pakistan. NIFT is proactively involved in
the modernization of payment systems in Pakistan.
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To arrange the payment of cheque drawn on the branch and given for
collection to any other branch of Habib Bank of Pakistan or any other
members, or sub-members of the local clearing area..
To collect amounts of cheques drawn on members, sub-members of the
local clearing house, sent for collection by those Habib Bank Limited,
branches which are not represented a the local clearing area.
Foreign department:
International trade is growing and with the development of
international trade it has become more imperative. For countries to devote
more and more attention to the complicated mechanism of Foreign Exchange.
It is more important in case of developing countries. It is need of time, that a
country should conserve its foreign exchange resources.
Offices mean the Head office which is situated in Habib Bank Plaza,
Karachi, Pakistan. HBL is the largest bank in Pakistan. Field offices mean the
Branches. HBL has the largest domestic branch network in Pakistan. The bank
has a network of over 1450 branches in Pakistan and 55 branches worldwide
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1450
International branches
55
Subsidiary branches
Affiliate branches
119
Representative offices
Current staff
The current staff of HBL branch G.T. Road Gujrat has experience and
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HBL branch G.T. Road Gujrat has the 8 staff members. Which are as
follows:
Name
Designation
Qualification
Experience
Branch Manager
B.com
30 Years
Operational
MBA Finance
3 Years
Graduate
32 years
Manager
Mr.
Mirza Assistant
Tanveer Baig
Manager
Mrs. Ayesha
Cash Officer
Mr. M. Asif
3.3
Cashier
MBA
Finance 3 Years
( continue)
Matric
30 Years
environment of this branch is very well and good. Manager has good
cooperative and good relations with his workers. All the employees or workers
are highly motivated. Salaries of employees or workers are very satisfactory
and they are willing to utilize their energies to the high performance of their
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branch. Workers gain respect from their manager, coworkers, customers and
public as well.
It is also necessary to hire experts to increase the morale of the
workers. There should be some sort of healthy activities through which
workers can feel easy and get relaxation.
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Verbal Communication:
Verbal communication is the sharing of information through words either
written has spoken.
Nonverbal Communication:
Nonverbal communication is the sharing of information without using
words. Like gestures vocal tones and facial expressions. Interpersonal
communication in HBL Organizational communication is directly relates to
the goal functions, and structure of human organizations. Organizational
success is determined by the effectiveness of organizational communication.
3.6 Summary
This is the end of chapter three. In this chapter the complete
introduction of the HBL branch G.T. Road Gujrat has given. Chapter three is
all about how the branch is working. In this chapter it is described that how the
head office communicates to the branches. What are the communication
channels in branch itself. Details of different departments working in branch
are also given. Details of offices and field offices are also given. Other head
contains data regarding the current staff of HBL. Details of qualifications and
experience of employees is also given. Training of employees, their workload,
salary structure, promotion system, incentive and motivation of employees is
also discussed in detail. Responsibility of employees is also its part.
Communication is also the part of the system. Morale of employees is
necessary to increase. Physical facilities have their necessary to describe. Then
performance and output is measured not only in terms of customer satisfaction
but also in terms of account holders, their deposit and budget as well. Budget
is the important part of the branch so discussed here. At the end precise
summary of the chapter is given.
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Chapter no. 4
4
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SCOPE OF DECISION
HBL makes both narrow-scope and broad-scope research and
development decisions. They can take feedback, circulation of questionnaire
for important decision from top to lower level. Scope of decision depends on
the level of management. Higher the level, higher will be the scope.
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Chapter no. 5
5 Introduction of Specialization Area:
This is chapter five. In this chapter HBL is taken in the broader field.
In the previous chapters yet the entire workings are described. But in this
chapter I try to cover the broader areas. Not only internal conditions are
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important for the bank to survive but also the external environment also plays
important role to survive. Due to the very importance of external environment,
external factors are also discussed in this chapter.
First of all the SWOT ANALYSIS of HBL is made. The strengths of
HBL are also the part of this chapter as well as the weaknesses of HBL is also
described. All the opportunities and threats in external environment are also
discussed in detail. As there is not only a single business exists in the world
which has only the strength and opportunities so the weaknesses and threats of
HBL are also discussed.
Then the PESTL analysis of HBL is also made. Political, Economic,
Social and Technological factors affecting the HBL are also discussed. Ratios
are also important to show the financial position of the bank. That is why the
ratios are also discussed in this chapter. At the end the summary of the chapter
is given.
5.1. SWOT ANALYSIS OF HBL
SWOT stands for Strength, Weakness, Opportunities and Threats.
Strength and weakness are the internal factors and opportunities and threats
are the external factors. HBL is considered to be a very sound bank in the
financial circles. This is the bank where customers can safely keep their
money as long as they want.
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Strengths
The officers of HBL are considered as one of the most able
professionals in the banking world.
I observed that HBL employees (except annoyed ones) interact with
their clients as if they are their personal friends and discuss about their
problems as their own.
HBL has got a reliable and easy to use internal computer system. HBL
maintained its data properly.
HBL has very good security system.
HBL is the larger commercial bank in Pakistan with the network of
over 1450 domestic and international branches.
HABIB BANK is a well established bank enjoying long history of over
65 years of experience and profitable operation.
HBL is the largest private bank in Pakistan now and people trust is
very high.
HBLs car to car financing scheme is unique in auto loan segment.
Habib bank is an internationally recognized name in banking services
and products.
HBL has forged strategic alliances with international banks for
expanding its network further, both locally and internationally.
It has the largest branch network among private banks of Pakistan
Being the pioneer of banking in Pakistan, HBL is the oldest and is the
richest in experience.
A skill or capability that enables HBL to conceive and implement its
strategies.
HBL 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.
24 hours cash access and safe payment products for high value
transaction.
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Weaknesses
There is week communication system in overall HBL as well as inside
branches.
Highest number of branches effecting the proper maintenance and
of branches.
Sense of insecurity in the employees serving at low profitable branches
issuing process.
Employees at branch level are not properly motivated to work by heart.
They take the all routine activities as a boring job.
Now as it is a privatize bank that is why GOVERNAMENT support to
HBL decreased as it was in past
Mission of HBL is not well defined.
Opportunities
Huge untapped market potential in consumer banking as well as
Islamic Banking Opportunity for developing value added services
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Threats
Prevailing circumstances increases the difficulties the organizations
achieving high performance.
Consolidation in the banking sector resulting in increased competition.
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customers.
For the last of 2 to 3 years, Pakistan is facing economic and political
instability which is a big threat.
Foreign banks are flourishing in field of consumer financing.
Afghan war and Iraq war has a deep effect on the economy of Pakistan,
which has affected HBL.
Increased regulations from State Bank of Pakistan may affect its
business.
pinpoint
environmental
factors
that
can
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significantly
influence
PESTL ANALYSIS
Identification of external and macro factors that influence buyers and thus
change the size and composition of market overtime involves initially building
customer profiles. These influences include:
Political environment
Economic trends
Social environment
Technological factors
Legal environment
POLITICAL ENVIRONMENT
Political component is that part of general environment which
is
about
Page 50
influence and limit various organizations and individuals. Mostly these laws
create new opportunities for business.
ECONOMIC TRENDS
It indicates how resources are being distributed and used within the
environment. How the particular community is producing, distributing and
using various goods and services.
Keeping in view economic resources possessing by the population,
HBL targets the customers by introducing various products to attract them.
HBL introduced Auto Loan/Flexi, Loan/Life Style/Visa card/debit card/value
account to sell them same. The consumers are using the banks products.
While selling goods, the wages of the employees, inflation, the tax paid, and
the cost of material is kept in mind to determine and what price
product/service should be sold in the target market. It is very important for an
organizations
success
to
have
thorough
Consumer income
Saving rates
Consumption patrons
Rates of interest
Budget deficit
Exchange rates
Cost of living
Inflation
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SOCIO-CULTURAL ENVIRONMENT
A society is shaped by beliefs, norms and values. People in a society
consciously and unconsciously interact with:
Themselves
Others
Organization
Society
Nature Following are the main factors. Which arise because of change in
socio-cultural environment?
Consciousness about services
Concern for environment
Improved customer relation
The social component shows the characteristics of the society in
which organization exists. There are two important features of the society
are Demographics and Social Values.
Demographics are the statistical characteristics of a population. It
shows the changes in numbers of population and income distribution among
the various population segments. Such changes influence the reception of the
good and services with the organizations environment. The study of
demographics characteristics of population may help the organization in
formulating its strategy to compete in the market.
HBL as its strategy, targets the consumers (low /middle /high income)
by introducing the products. For example, it targets the middle income
consumer by introducing consumer products like Flexi loan/Visa Card and
Balance Transfer Facility (BTF) and house loan/car loan products were
introduced for high income consumers.
Social Values are the relative degrees of worth society places on the
manner in whi8ch it exists and functions. Social values of the society
influence the organization in tailoring its products and services to the
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LEGAL ENVIRONMENT
The legal component is that part of general environment which
contains passed legislation. It influences the organization. Violation of laws
may lead to imposition of penalty to the organization. The banks in Pakistan
have to perform their functions in line with SBP directives (regulators),
Security & Exchange Commission of Pakistan (SECP), Banking Recovery
Ordinance ( 2001) for recovery of loans, BASEL -I & BASELII with regard
to Anti Money Laundering (AML) & Terrorist Financing to meet international
community obligation and to observe the United Nations directives on
freezing of assets of a country or person. Country laws with regard to
maintenance of secrecy of information about the customers. In 1974,
Nationalization Act was passed and banks and numbers of industries were
nationalized and now the same are being privatized. All the nationalized banks
except NBP have been privatized through Privatization Commission o f
Pakistan. Health and Safety Act aims at ensuring health and safe workplace for
the workers.
Business legislation has following main purposes
To protect banking companies from unfair competition.
To protect consumers from unfair business practices adopted by
banking companies
To protect the interest of the society from unbridled business behavior.
Banks are strongly affected by the political and legal considerations. This
environment is composed of regulatory agencies and government law that
influence and limit various organizations and individuals. Mostly these laws
create new opportunities for business.
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Return on Equity
Return on Assets ratio
Net Profit Ratio
Loan to Deposit
2008
2007
15,614,020
75,180,436
20.76
10,084,037
63,237,429
15.94
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Interpretation:
HBL keeps on improving the financial position of the bank. HBL is in
leading position to introduce new services to the customers. The above ratios
shows that the bank is in good position in 2007 and not only maintain its
position but also improve the financial position in 2008 which is a very good
sign.
The past two years data shows an improvement in the return on equity
which is a positive sign. The Bank should have to continue its policies. By
observing the audited account I found that this improvement is due to increase
in the Net profit which is good sign.
Return on Assets Ratio:
Return on Assets
Net Profit after tax X 100
2008
2007
15,614,020
10,084,037
757,928,389
2.06
691,991,521
1.45
Total Assets
Net Profit after tax
Total Assets
Return on Assets
Interpretation:
The above ratio is the return on asset ratio. Return on asset is an
important ratio. In 2007 this ratio is very good but HBL keeps on improving
this ratio in next year as well. There is a huge difference of ratios from the
year 2007 to 2008 which shows the commitment of employees towards their
work and the loyalty of customers to the bank.
Return on assets ratio shows an improving trend. This ratio shows that
the both the Net profit and Total Assets has improved in 2008 than 2007. But
net profit has increased more rapidly.
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2008
2007
Loans Assets
Advances
Assets
Loan to Assets ratio
456,355,507
757,928,389
60.21
382,172,734
691,991,521
55.22
Interpretation:
Deposits are also the important asset of the bank. Banks try hard to
increase the deposits of the customers. This fact is shown by the above ratios
as is increased by 2008 FROM 2007.
Loan to Asset Ratio is showing increasing trend in 2008. This is
because advances are increasing more rapidly than assets of the bank.
2008
2007
15,614,020
43,970,884
35.50
10,084,037
33,250,937
30.32
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Interpretation:
Above is the net profit ratio. This ratio shows that profit of the bank is
increasing or not. As the ratio is increasing from 2007 to 2008 so it showing a
good sign.
Net profit Ratio is giving upward trend. This trend is observed due to
increase in Net profit but on the other hand the expenses decreases which
shows an efficient management.
2008
2007
456,355,507
597,090,545
76.43
382,172,734
531,298,127
71.93
Interpretation:
It is also an important ratio. This ratio shows how much the customers
are showing the trust on the bank and deposit their balance in HBL.
Loans to deposit ratio shows an increasing trend in 2008 as compare to
2007. This trend is observed as the advances and deposits both are increasing
but advances are increasing more rapidly than deposits.
5.4 Summary:
This is the end of chapter five. In this chapter the important internal
and external factors are discussed which can affect the working of HBL. The
other factors that can affect the working of bank are necessary to know.
SWOT analysis is also important as it shows the strength and weaknesses of
the bank and internal and external factors such as opportunities and threats.
SWOT analysis shows the important information as it shows how much and
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what areas are currently covered by the bank and what are the potential areas
where the bank can do more.
As this chapter contains all such important information so it should add
more to realize where the work is being done and where the work should be
improved.
Not only the SWOT analysis is considered the important analysis but
other analyses are also important as the PEST analysis. In this chapter I fully
try to cover all those points clearly which comes under this head. People are
also interested to invest their incomes in such institutions which have strong
financial positions and are necessarily important to consider when making
investment. So ratios are also discussed in this chapter and important
interpretation of ratios is also made. At the end summary of the chapter is
given.
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Chapter no. 6
6 CONCLUSION & RECOMMENDATIONS
1. E _Statement
The account statement of customer must mail him after 15 days.
2. Transaction through mobile service
Customers must provide the facility to make transaction through
mobile. By doing this customers can save time and also transportation
expense.
3. Update customers after every transaction
After every transaction customers must inform that their transaction
has been taken place.
4. Marketing development
New technologies must adopt to facilitate the customers.
5. Cyber warfare
Cyber warfare must adopt to prevent electronic attacks to save
important documents and bank privacy.
6. High Risk in Internet Banking
As there is no proper cell is established throughout the country. It is
difficult to handle incase of cyber crime. The customers feel less protection in
this regard.
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2. Low Speed
Working and service providing speed is very low.
3. Marketing speed
Service is not door to door, you have to met people personally.
4. Low awareness
People and customers do not have awareness about new banking
system because they do not provide proper information about bank and online
services
CONCLUSION
To sum up, internship is like The First Flight for a young business
graduate who is to enter his professional life very soon. It provides a gateway
to youngsters and an insight of corporate world. It helps them in the
orientation phase of their first job as well and if we talk about internship
decision in banking sector.
HBL is clearly the first choice of everyone who believes in qualitative
approach of banking an environment of highly responsible people. Bank is
enjoying a healthy market share and taste of good status in terms of its
operative features and customer support. HBL is clearly the best bank
operating in Pakistan. Corporate and commercial functions are distinguished
features of HBL experiencing a good reputation and reasonable mark up with
respect to prevailing market mark up with assurance of satisfaction and
support. HBL has more customers as compare to other banks, if they given
proper attention to every customer then in few years it will be the leading bank
of the country.
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Chapter no. 7
7 References
www.google.com
www.hbl.com
HBL Annual Report 2007
Direct Interaction and Learning from:
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