An Internship Report

On
Habib Bank Limited

By

AhsanAsghar

Roll No.55

Session 2013-2017

Specialization in Finance

Department of Business Administration

Faculty of Administrative Sciences Kotli A.K.

University of Azad Jammu & Kashmir

Muzaffarabad
 LETTER OF TRANSMITTAL

The Placement officer

Faculty of Administrative sciences Kotli

University of Azad Jammu and Kashmir

Date March, 31, 2017

Subject: Submission of Internship Report.

Dear Sir,

This report is in response to the instructions of your letter No. B Admin/482 /2016 dated

05-05-2016. In which you have confirmed me the nomination of my internship at HBL Narr

Branch Kotli A.K. I have completed my six week training from 11-07-2016 to 22-08-2016 at

2016 .In which you have confirmed me the nomination of my internship at HBL Narr Branch

Kotli A.K. My finding and related recommendations are given in detail in this report, which is

enclosed.

It would be pleasure for me to hear your comments after you have gone through this

report. Though while reading if you like to discuss any point with me, I shall be happy to do so at

any time convenient to you.

Yours truly,

AhsanAsghar

Roll No.55

BBA (Finance)

Session 2013-17

i
Internship letter

ii
 Acknowledgements

I am thankful to Almighty Allah 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 day long to accomplish this assignment and to my parents who supported me

financially and encouraged me morally. I have a debt of gratitude to all my teachers who taught

me throughout my academic career.

It was pleasure for me to be sent to the HBL Nar Branch KotliA.K I am very thankful to the

honorable Internship In charge. I learnt a lot from this training program and this would guide me

a lot while selecting my career. I learnt how to face the problems, how to find out the ways for

their solutions and how to deal with customers in a marketplace.

The preparation of this report was a massive undertaking but the highly competent and

experienced bankers of HBL Nar Branch Kotli A.K.Provided me with all assistance,

Information, advice and suggestions that I needed which contributed importantly to this report.

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 EXECUTIVE SUMMARY

It is well known that time and tide waits for none. Due to this rapid change in time and era we

have to cope with it. During this era the student got an ample opportunity of getting practical

knowledge about the Banking system in Pakistan. So to quench the thirst of practical exposure

and for getting the basic knowledge about Bank the student joinedHBL Nar Branch Kotli A.K.

During six week in HBL all necessary information were gathered about HBL.

Efforts have been made to compile this report in such a way that activates its features not only

for students but also for the layman. This report has been divided into different chapters.

First chapter is about introduction of HBL, Historical evolution of the organization, current

performance and future directions. Second chapter is about Operations of the Organization,

Departments and Products and services of HBL. Third chapter discusses the Porters five forces

Analysis, SWOT Analysis and Financial Statement Analysis.

Fourth Chapter discusses My Internship Responsibilities Including departments of HBL in

which I have worked, Problems encountered and new knowledge acquired. In fifth Chapter

Conclusion and different type of recommendations has been given to different problems.

At last I must say that this text is designed to stimulate the curiosity about management practices

of Habib Bank Limited of Pakistan and to raise readers consciousness about the banking system

working in Pakistan and outside the Pakistan.

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 List of Acronyms

Acronyms Meanings

ATM Automated teller machine

AKFED Aga Khan Fund for Economic Development

BBA Basic Banking Account

BRICS Brazil, Russia, India, China, South Africa

CEO Chief Executive Officer

CNIC Computerized National Identity Card

FAFB Finance Against the Foreign Bills

GCC Gulf Cooperation Council

GPO General Post Office

HBL Habib Bank Limited

HYFFD High Yield Foreign Currency Fixed Deposit

IMF International Monitoring Fund

NADRA National Database and Registration Authority

NBP National Bank of Pakistan

NIFT National Institutional Facilitation Technologies

PLS Profit and Loss Sharing

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 Contents

Chapter 1 ......................................................................................................................................... 1
1 Introduction ............................................................................................................................. 1
1.1 Introduction to Organization ............................................................................................ 1
1.2 History of HBL................................................................................................................. 2
1.3 Mission and vision of HBL .............................................................................................. 2
1.3.1 Mission...................................................................................................................... 2
1.3.2 Vision ........................................................................................................................ 2
1.3.3 Our Brand.................................................................................................................. 3
1.4 Values of HBL ................................................................................................................. 3
1.4.1 Excellence ................................................................................................................. 3
1.4.2 Integrity ..................................................................................................................... 3
1.4.3 Meritocracy ............................................................................................................... 3
1.4.4 Team work ................................................................................................................ 3
1.4.5 Culture of Innovation ................................................................................................ 4
1.4.6 Progressiveness ......................................................................................................... 4
1.5 Objectives of HBL ........................................................................................................... 4
1.6 Current performance ........................................................................................................ 5
1.7 Future directions ............................................................................................................... 6
Chapter 2 ......................................................................................................................................... 8
2 Operations of Organization ..................................................................................................... 8
2.1 Departments ..................................................................................................................... 8
2.1.1 2.1.1 Accounts Opening Department ........................................................................ 8
2.1.2 Cash department...................................................................................................... 11
2.1.3 Credit Department ................................................................................................... 12
2.1.4 Bills Clearing Department ...................................................................................... 15
2.2 Product and Services of Habib Bank Limited ................................................................ 17
2.2.1 Deposit Accounts .................................................................................................... 17
2.2.2 Loans and Advances ............................................................................................... 19
2.2.3 HBL Credit Card ..................................................................................................... 21
2.2.4 HBL Banc assurance ............................................................................................... 22
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 2.2.5 HBL Visa Debit Card.............................................................................................. 22
2.2.6 HBL Fast Transfer .................................................................................................. 23
2.2.7 Lockers .................................................................................................................... 23
2.2.8 HBL ATM ............................................................................................................... 24
2.2.9 Internet Banking...................................................................................................... 25
Chapter 3 ....................................................................................................................................... 26
3 Organizational and Industry Analysis ................................................................................... 26
3.1 Porter's Five Forces Model............................................................................................. 26
3.1.1 Rivalry among Competitive Firms.......................................................................... 26
3.1.2 Potential Entry of New Competitors ....................................................................... 26
3.1.3 Potential Development of Substitute Products ....................................................... 27
3.1.4 Bargaining Power of Suppliers ............................................................................... 27
3.1.5 Bargaining Power of Customers ............................................................................. 27
3.2 SWOT Analysis.............................................................................................................. 28
3.2.1 Strengths ................................................................................................................. 28
3.2.2 Weaknesses ............................................................................................................. 29
3.2.3 Opportunities........................................................................................................... 30
3.2.4 Threats..................................................................................................................... 30
3.3 Financial Statements of Habib Bank Limited ................................................................ 32
3.4 Financial Ratio Analysis ................................................................................................ 35
Chapter 4 ....................................................................................................................................... 40
4 My Internship Responsibilities .............................................................................................. 40
4.1 Departments of Organization in which I have worked .................................................. 40
4.1.1 Deposit Section ....................................................................................................... 40
4.1.2 Clearing Section ...................................................................................................... 41
4.1.3 Remittance Section ................................................................................................. 41
4.1.4 Inland remittances ................................................................................................... 42
4.1.5 Account Section ...................................................................................................... 43
4.2 `Problems Encountered .................................................................................................. 44
4.2.1 Problems ................................................................................................................. 44
4.3 New Knowledge Acquired ............................................................................................. 44

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 4.3.1 Account opening section ......................................................................................... 45
4.3.2 Clearing section ...................................................................................................... 46
4.3.3 Remittances section ................................................................................................ 46
Chapter 5 ....................................................................................................................................... 48
5 Conclusion and Recommendations ....................................................................................... 48
5.1 Conclusion...................................................................................................................... 48
5.2 Recommendations .......................................................................................................... 48
Bibliography ................................................................................................................................. 51

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Chapter 1

1 Introduction
1.1 Introduction to Organization

Habib Bank Limited was established in Pakistan in 1947. It was the first commercial bank

established in Pakistan. Over the years HBL has expanded its branch network. With over 1600

branches across the country and a customer base exceeding over six million it become largest

private bank. With the presence in more than 20 countries mainly in Hong Kong and United

Kingdom affiliates customers in Nepal, Nigeria, Kenya, Kyrgyzstan and representative offices in

Iran and China. HBL is also largest domestic multinational bank. Now bank is expanding its

presence in big International markets including South and Central Asia, Africa, United Kingdom,

United States of America and far East. Main operations of HBL encompass products offerings

and services in retail banking. Habib bank has the largest Corporate Banking portfolio in

Pakistan with an active Investment banking arm. Small and medium enterprise, agriculture

lending programs and banking services are offered in both rural and urban centers. While In UK

HBL focuses on trade finance and remittances for South Asia in addition with basic banking

facilities. HBL has always been a bank and a brand for masses with a history inextricably linked

with the history of Pakistan itself. As it continues to grow both locally and globally it strives to

embody its brand personality: honest, approachable and inclusive. HBL has currently rated AA+

long term and A1+ short term. It was the first Pakistani bank to raise Tier II capital from external

sources.

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1.2 History of HBL

Habib Bank Limited was established by Mr. Ismail Habib (Late) on August 25, 1942 at Bombay.

It was the first Muslim Bank of Sub-continent. It was established with paid up capital of RS. 2.5

million. At its early stage the number of its branches was only 12. HBL established its

operations in Pakistan in 1947 and moved its head office in Karachi. First International branch

was established in Colombo, Sri Lanka in 1951. Habib Bank Plaza was first built in 1972 to

commemorate the banks 25th Anniversary. HBL was nationalized in 1974 with domestic market

share of over 40 %. It continued to dominate the commercial banking sector with a major market

share in inward foreign remittances 55% and loans to small Industries, traders and farmers.

International operations were expanded to USA, Singapore, Oman, Belgium, Maldives and

Netherland. On December 29, 2003 Pakistans Privatization Commission announced that the

Government of Pakistan had formally granted Agha Khan Fund for economic development

(AKFED) RIGHTS TO 51% of shareholding in HBL against an Investment of PKR 22.409

billion (USD 389 million). Management control was handed over to AKFED on February 26,

2004. Board of directors were reconstituted to have four nominees including Chairman and

President/ CEO and three Government of Pakistan nominees.

1.3 Mission and vision of HBL

1.3.1 Mission

To make our customers prosper, our staff excel and create value for shareholders.

1.3.2 Vision

Enabling people to advance with confidence and success.

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1.3.3 Our Brand

Our brand to Identity is the outward expression of what we staff for as an organization. This is

summarizes in our vision, mission and supported by our values.

1.4 Values of HBL

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 an unmistakable. Values of HBL

are defined below.

1.4.1 Excellence

This is at the core of everything we do. The markets in which we operate are becoming

increasingly competitive and giving our customers an abundance of choice. Only through being

the very best in terms of services we offer our products and premises we can hope to be

successful and grow.

1.4.2 Integrity

For us integrity means a synergic approach towards abiding our core values. United with the

force of shared values and integrity we form a network of well integrated team.

1.4.3 Meritocracy

At every level from selection to advancement we have designed a consistent system of human

resources practices based on objective criteria throughout all layers of organization.

1.4.4 Team work

Our team strives to become a cohesive and unified force to offer you, the customer a level of

services beyond your expectations. This force if derived from participative and collective

3
Endeavours a common set of goals and spirit to share glory and strength to face failures

together.

1.4.5 Culture of Innovation

We aim to be proactively responsive to new Ideas with respect and reward to agents, leaders and

creators of change.

1.4.6 Progressiveness

We believe in advancement of society through adoption of enlightened working practices,

innovative new products and processes and a spirit of enterprise.

1.5 Objectives of HBL

First Objective of HBL is to mobilize private savings and public funds for diverting them

into productive channels and ensure their availability. To promote Industrial agriculture

and socioeconomic process through active participation of private and public sector in

Province.

To help under developed areas and create employment opportunities especially in rural

areas province. Further to guide and assist the people of Pakistan serving overseas to

effectively and profitably invest their foreign savings in the province as well as in other

parts of Pakistan.

To create a diversified and sound portfolio for utilization of Idle funds and their

investment in existing and new ventures especially in pioneering of high-techs agro-based

export oriented and engineering project to ensure maximum returns.

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 To participate and seek share of country in the capital market of Pakistan by way of

subscription through local people resources in leading stock exchange of country and

eventually paving the way for establishing a stock market in the province.

1.6 Current performance

The Habib Bank Group is leader in Pakistans service Industry. Today HBL has more than 1500

branches all over the Pakistan and presence in 26 countries across five continents. With a

revamped customer oriented philosophy HBL is pursuing new avenues of leadership through

innovation as it gear up to face the challenges of new millennium. A huge network of more than

1500 domestic branches with largest bank in Pakistan and more than 60 International branches

have enabled HBL to provide comprehensive services that meet customer needs. The bank has

one of the most extensive International network amongst the emerging market banks. HBL has

ability to operate successfully in diversified markets and cultures in a function of long history in

International banking. HBL opened first International branch in 1951 and established customer

base. International presence spans major financial centers as well as developing countries. This

has ensured thriving client relationship that forms the backbone of banks operations. Today

HBL plays a central role in Pakistans economic and financial development. It has come a long

way from its modest beginning in Bombay in 1941 when it commenced operations with a fixed

capital of 25000 rupees. Impresses by its initial performance Quaid-e-Azam Muhammad Ali

Jinnah asked the bank to move its operations to Karachi after creation of Pakistan. HBL

established itself in Quaids city 1943 and became symbol of pride and progress for people of

Pakistan. Habib bank has pioneers in providing the innovative banking services. These have

included the installation of first main frame computer in Pakistan followed by first ATM and

more recently internet banking facilities in 1500 domestic branches.

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HBL won Global Finance Awards in 2008 and 2010. In 2010 HBL won Best Bank Pakistan and

Best Trade Finance Provider Pakistan awards. HBL also won best emerging market banks award

in Pakistan in 2010. Global Finance presented HBL with Best Emerging Market Banks award in

Pakistan 2010. This award was conferred on HBL in recognition of its superior performance,

enhanced profitability, expanding asset base and innovative products and services. Habib Bank

Limited is rated AA+ for its long term and A1 for its short term. It is the only Pakistani bank to

raise its tier II capital from external sources.

1.7 Future directions

Currently the banking network has expansion plans for potentially profitable markets which are

basically inclusive of important markets on global front such as United Kingdom, United Arab

Emirates, Central and south Asia, Africa and Fareast.

1.8 Board of Directors

1.8.1 Chairman

Sir Mohammed Anwar Pervez, OBE, HPK

Sir Mohammed Anwar Pervez, OBE HPk is the Chairman of the Board of Directors of United

Bank Limited since December 2013. He is also the Chairman of Best way Group UK & its

subsidiaries, which include Batleys Limited and Bestway Cement. He is also Chairman of Best

way Northern Limited in UK.

6
1.8.2 Directors

Mr. ZameerMohammedChCBE BA(Hons) FCA

Mr. HaiderZameerCh

Mr. Rizwan Pervez

Mr. Amin udDin

Mr. ArshadAhmad Mir

Mr.ZaheerSajjad

Mr. Khalid Ahmed Sherwani

Mr. WajahatHusain

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Chapter 2

2 Departments of Organization

2.1 Departments

Various departments are working in all the branches of Habib bank to facilitate the customers.

Following are the banking departments functioning in HBL Nar Branch Kotli Azad Kashmir.

1. Account opening department.

2. Cash department.

3. Credit department.

4. Bill clearing department.

2.1.1 2.1.1 Accounts 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 formalities which are to be observed for opening

of an account with a Bank. These formalities in brief are as under:

i. Formal Application

The customer is to fill "Account Opening Form. It is a formal request by a customer to the bank

to allow him to have and operate the account.

ii. Documents Require for Opening an Account

Copy of CNIC

Service certificate or Student card.

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iii. Specimen Signature

When the Banker is satisfied about the integrity of the customer he agrees to open the account.

The Banker obtains the specimen signatures of the customer on the signature book or on card.

iv. Posting the Account on the System

After that officer has to post the new account on computer system for further processing. During

the process customer Id and account number is 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.

v. 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 Habibbankcheque book

issuing process is centralized that take 06 days to complete.

vi. Secrecy

The secrecy of depositors account is the responsibility of every official engaged in the Bank

service.

2.1.1.1 2.1.1.1 Types of Accounts

i. Individual Account

Individual accounts are the most common personal investment accounts. Opened by single

person.

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ii. Joint Account

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.

iii. Business Account

Business accounts can be opened by institutions, companies, partnerships, trusts and nonprofit

organizations.

2.1.1.2 Grounds for Closing the Customers Account

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

i. Notice by Customer

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

account.

ii. Death of Customer

On death of his customer, the bank must stop payment on cheques drawn on him by the deceased

customer because the death revokes his authority to pay such cheque. The heirs or the executors

of the deceased customer are not authorized to operate on the account; it can act only in

accordance with provisions mentioned in the letter of probate issued by a competent courts.

iii. Customers Insanity

If the customer becomes insane or mental it terminates the bankers authority to act as his

customers agent. Since the banker customer relationship comes to end in such a situation it is

usually considered that the bankers authority to pay his customers cheques is revoked by notice

10
of insanity. However, the bankers treat their customers as it unless a fairly inclusive evidence of

the customers insanity is available to them.

iv. Order of Court

A court of law may serve a banker with an order in garnish proceeding in execution of a decree

prohibiting him from honoring a customers cheques.

2.1.2 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.

i. Cash Deposit Procedure

The customer fills the pay slip. The cashier receives the pay slip and cash. He counts the cash

and makes the detail of the notes at the back of the pay slip. Then he compares the detail with

amount written on slip and signs the pay Slip. Then he credits the entries in the computer by

serial No, account type, Account number and amount. Puts the stamp of the cash Received on

the payment slip. The first portion is for bank record while other one is given to the customer.

ii. Cash Payments Procedure

When a customer comes to withdraw a certain amount from his account, he brings a Cheque

along with him. In this case the following steps are taken. The cashier receives the cheque and

checks it whether it is post-dated or predated. Cheque can be cashed within six months. A

predated cheque cannot be cashed. He takes two signatures at the back of the cheque from the

11
bearer. He gives the cheque for posting at the computer. The computer checks out whether there

is balance in the account or not. Other instructions are also received e.g. blocked, frozen, Etc. the

posting is done in the computer and the cheque is stamped posted with the serial number and

date. He gives the cash to bearer and the respected account is debited.

iii. Online Fund Transfer

Customer has given filled remittances form with cash or without cash (from account transfer) to

the cashier in cash department who will then credits the beneficiary account.

iv. Balancing Cash at the End and Transferring Excess Cash

At the day end cash department is responsible for balancing the cash. Physical cash should be

balanced with the amount in the computer. Nar Branch Kotlibranchs limit for cash is 34million

which it can keep within the branch over the night excess cash is transferred to NBP.

2.1.3 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. Common Securities for the bankers advances are as under

2.1.3.1 Securities

i. Guarantees

When an application for advance cannot offer any tangible security, the banker may rely on

personal guarantees to protect himself against loss on advances or overdraft to the applicant.

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ii. Mortgage

A mortgage is the transfer of an interest in specific immovable property for the purpose of

security the payment of money advanced or to be advanced by way of loan, and existing or

future debt, or the performance of an engagement which may rise to a pecuniary liability. The

transfer is called a mortgagor, the transferee a mortgage.

iii Pledge

In a pledge the ownership remains with pledge, but the pledge has the exclusive possession of

property until the advance is repaid in full. While in case of the default the pledge has the power

of sale after giving due notice.

iv. Promissory Note

Sometimes promissory note is also accepted as a security, "A promissory note is an instruments

in writing containing an unconditional undertaking signed by the maker, to pay on demand or at

a fixed or determinable future time a certain sum of money only, to or to the order of certain

persons, or to the bearer or the instrument." A promissory note is incomplete until has been

delivered to payee or the bearer. Moreover, the sum promised in a promissory note may be made

by two or more makers who may be liable there on jointly and severally.

2.1.3.2 Types of Advances

The advances which are given by Habib Bank Limited are as under

i. Demand Finance (Ordinary Loan)

Demand Finances are those advances which are allowed in lump sum for a fixed period and are

repayable lump sum or gradually in installments.

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ii. Running Finance (Overdraft)

Running finance (old name overdrafts) are advances, which are generally, given to meet

temporary requirements of the customers. A good customer use the banks running finance limit

as a mean of protecting his credit in the market and as a line of security defenses to meet his

commitments.

iii. Finance against The Foreign Bills (FAFB)

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

FAFB (Local) advance against Railway receipts and truck receipt, a company with bills of

exchange and invoices, are given under this head.

FAFB (Foreign) advances against foreign bill, covering bills of exchange bills of lading airway

bills of exchange bills of lading airways bills etc.

iv. Agriculture Loans

Loans to the farmers with holding up to 25 acres for meeting their short terms, medium and long

terms Agricultural production requirements, such as:

Agricultural inputs

Tube wells

Live-stock framing

Land improvement

v. Industrial Loans

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Besides the short-term loans which play a part in working capital medium and long term loans

are also given to industrial sector for purchase of machinery and other capital nature goods.

2.1.4 Bills Clearing Department

Every bank acts in two ways

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.

i. Function of Clearing Department

The following are the main functions of clearing department.

To accept transfer deliveries and clearing cheques from the customer of the branch and to

arrange for their collection.

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..

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 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.

ii. Procedure of Depositing Cheques in Clearing Department

Whenever a customer wants to deposit cheque etc., he fills a pay in slip and hands it over the

counter along with the instruments he wants to deposit with bank. As far as possible the

customer desire that on of the staff member fill in a slip for him he should be obliged promptly.

One portion of the perforated pay in slip is handed over to the depositor and the portion becomes

the regular portion of a credit voucher.

iii. Types of Cheques Collected by Clearing Department

Transfer Cheques

Transfer cheques are those cheques, which are collected and paid by the same branch of bank.

Transfer Delivery Cheques

Transfer Deliver cheques are those cheques, which are collected and paid by two different

branches of a bank, situated in the same city.

Clearing Cheques

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Clearing cheques are those cheques in which the payee (Person who deposit cheques for

collection) and the drawer of a cheque maintain the account with different banks.

These clearing instruments are handed over to NIFT after posting necessary stamps and checking

them for any errors. Then further process of clearing is carried on the behalf of NIFT.

2.2 Product and Services of Habib Bank Limited

2.2.1 Deposit Accounts

HBL has currently the following Accounts in operation for the household or individual

customers.

Current Accounts

No profit on these deposits is given, and customer is required to maintain a minimum balance,

failing which services charges are deducted from such accounts. HBL is currently offering three

types of accounts in current account category. Their detail and name is as under.

i. Current Account

ii. Basic Banking Account

iii. HBL Freedom Account

Savings Accounts

Avail the flexibility of making transactions while earning profit on daily/monthly basis. HBL is

currently offering five types of accounts in savings account category. Their detail and name is as

under.

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iv. HBL Value Account

v. PLS-Savings Account

vi. Remittance Munafa Plus Savings Account

vii. Daily Munafa Account

viii. Daily Progressive Account

Terms Accounts

Invest your savings in HBL term deposits for a fixed duration and earn profit while keeping your

savings secure. HBL is currently offering two type of account in terms account category. Their

names are as under.

i. HBL Advantage Account

ii. Investment Plus Deposit

Foreign Currency Accounts

HBL offers Foreign Currency Accounts in multiple currencies as savings and term accounts.

Their detail is as under.

i. FC-SB

ii. HYFFD (High Yield Foreign Currency Fixed Deposit)

HBL ID

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An account designed to cater the needs of the youth of 19 to 24 year age. HBL ID gets Account

holder ready for the real world. With the features open an account with any amount and enjoy the

flexibility of no minimum balance, Stop carrying cash and start carrying an HBL Debit Card

instead. This will allow Customer to make purchases anywhere that VISA is accepted, Enjoy

discounts of up to 20% at select restaurants when Customer pay with HBL Debit Card.

Customer can withdraw cash from any HBL ATM at any time so Customers HBL Debit Card is

great for any cash emergency. Customer can have up to 2 Savings Buckets at a time. Earn Profit

rate up to 9% p.a. Customers profit is calculated daily & paid monthly directly to Customers

Savings Bucket.

HBL Money Club

An account designed for the customers under the age of 18, with an account opened in name of

minor having age under 18 and the guardian. The account is operated by the guardian.

2.2.2 Loans and Advances

Personal Loan

With the rising cost of living, it is becoming increasingly difficult to make expensive purchases

or meet unexpected expenses. HBL is helping customer finance them with Habib Bank personal

Loans (old name flexi loan). Customer may avail a personal loan of up to SIX TIMES of his net

take-home salary subject to a maximum of Rs.300,000/- provided he work for an organization

approved by HBL.

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HBL Easy Loan

Make your life easy when you are taking care of business expenses, supplier payments,

upgrading your production line, disbursing staff salaries, or starting an entirely new venture. All

you need is savings in the form of fixed deposits or government securities to avail the loan

services:

HBL Small business Finance

HBL Small Business Finance provides you Running Finance for your working capital

requirements and Demand Finance for your business expansion needs

Features

i. Demand Finance Facility up to 70% of the assessed value of your property

ii. Affordable installments/ mark up

iii. Financing up to PKR 10 million

iv. Running Finance and Guarantee facilities renewable every year

v. Demand Finance facility up to 5 years

vi. Secured against residential, commercial or industrial property

vii. HBL debit card facility

HBL Car Loan

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HBL Car Loan helps customers to get their preferred car through a simple and hassle-free

process, backed by superior service and support. Now customer can drive a car he always

wanted.

Features

i. Choice of used, new local/imported and reconditioned imported car.

ii. Repayment options ranging Up to 7 years.

iii. Up to 85% of financing for the car of your choice.

iv. Insurance at all times for complete peace of mind and security.

v. Round the clock support available through HBL Phone Banking; you can place your requests

and queries, track the status of your repayment/loan account and avail other value-added services

through HBL Phone Banking.

2.2.3 HBL Credit Card

By the help of HBL credit card customer enters into the world of convenience and flexibility.

Accepted at over 29 million merchants worldwide, HBL Credit Card makes shopping fun and

paying simple. So that a customer can make the most of his shopping experience.

Benefits

Customer can buy what and when he want and pay for it later. A credit card statement

will be sent to him every month with details of all his purchases. He will have 21 credit

free days to make the payment from the statement date.

21
 A customer can pay the entire or as little as 5% of the outstanding balance in his

statement. The unpaid amount will be transferred to his next months statement along

with applicable services charges.

Customer can go to any specified HBL branch and withdraw cash at the counter. He can

also go to any 1Link ATM in Pakistan and more than 1,000,000 ATMs worldwide

displaying the Visa/Plus logo. Withdraw cash up to the available cash advance limit on

his HBL Credit Card for a charge applicable from the withdrawal date.

Card holder can pay off balances he owes to other banks through his HBL Credit Card at

a lower service charge.

Card holder cannot lose cash if he doesnt carry it. In the event that his card gets stolen

or lost, he should call HBL Phone Banking to have his card blocked immediately.

2.2.4 HBL Banc assurance

HBL and New Jubilee Life Insurance Company Limited (NJLI) introduce Amaan (Retirement

Plan) and Tabeer (Child Education & Marriage). These products have been designed keeping

HBLs customer base as the focus and will provide life insurance along with an investment

option

2.2.5 HBL Visa Debit Card

HBL Visa Debit Card allows a card holder to pay for his purchases directly from his bank

account. He doesnt have to carry cash and his monthly statement provides him with a complete

record of all his transactions so he can manage his expenses with ease.

22
Features

i. No Interest

ii. Ease & Security

iii. Spending Limits

iv. Free Account Statement

v. International Recognition & Acceptability at over 20 million Visa merchants worldwide

2.2.6 HBL Fast Transfer

HBL Fast Transfer lets you send your remittance instantly and absolutely free. HBL Pakistans

largest banking network - provides unmatched convenience and a confirmation SMS to inform

you that your money has been collected.

HBL Fast Transfer offers three modes for sending cash:

i. Fast Cash Send cash up to PKR 500,000 that can be collected instantly from any HBL Branch

in Pakistan.

ii. Fast Direct Credit instantly send money to any HBL account.

iii. Fast Draft Non HBL account holders can get their account credited the same day.

2.2.7 Lockers

Lockers are available in many of the HBL branches in different sizes like small, medium and

large; some branches also have extra-large and cubical lockers. Except rural areas because of

23
security reasons. Key deposit is refundable at the time handing over the locker to bank. For the

staff of HBL key deposit is not required and also the annual rent is very low for them.

2.2.8 HBL ATM

HBL has a vast network of ATMs operating in various areas of Pakistan. With ATM the debit

cardholder customers can get the following benefits:

Funds Transfer (HBL accounts and third party account under 1 Link network)

i. Utility Bill payment -Kesc, Gepco, Lesco,Fesco, Hesco, Iesco, Mepco, Pesco, Qesco, Lwasa,

Ptcl, Sngpl, Ssgc

ii. Mobile post pay bill payment and top-up- Warid, Ufone, Telenor

iii. HBL Credit Card bill payment

iv. Cash withdrawal

v. Account Balance Enquiry

vi. Mini Statement

vii. ATM PIN change

24
2.2.9 Internet Banking

To attain the benefits of technological and telecommunication advances HBL provides its

customer the facility of Internet Banking. By registering for internet banking the customers can

get the following benefits.

i. Funds Transfer (HBL accounts and third party account under 1 Link network)

ii. Utility Bills payment - KESC, GEPCO, LESCO, SNGPL, SSGC

iii. Mobile post-paid bills & top-up - Warid, Ufone, Telenor

iv. Purchase mobile prepaid vouchers - Mobilink, Ufone, Warid, Telenor, Zong, V-PTCL , PTCL

v. HBL Credit Card bill payment

vi. Account / Credit Card Balances

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3 Chapter 3

Organizational and Industry Analysis

I choose Porters Fives Forces Analysis and SWOT Analysis to analyze where organization

stands in Industry, who is its competitors and what opportunities and threats available to

organization.

3.1 Porter's Five Forces Model

The Porters five forces model is generally used for competitive analysis.

3.1.1 Rivalry among Competitive Firms

There is influential power the competitive forces. The strategies used by one firm might be

fruitful just to degree that the firms have competitive advantage over the competitors. These

competitive strategies may include best quality management and offering low cost. The HBL is

offering low charges on interest draft, mail transfer and provide other extra customer services to

their clients and to the nation.

3.1.2 Potential Entry of New Competitors

As competition has expanded it is no more difficult for firms to enter a specific Industry. As

banking Industry is concerned business is now extremely arranged in Pakistan. During last few

decades banking Industry grows. There are many banks with quality services and low charges.

The restrictions, taxes, license and so forth can stop new firm to enter into the business. So there

is no threat to HBL from potential entrance.

26
3.1.3 Potential Development of Substitute Products

This is the third variable which influences the rivalries. There may be some other products or

items that could be substitute product of that Industry. Case in point banks offering saving plans

in Pakistan and these plans are likewise offered by GPO in Pakistan so they must contend them

in this field. Customers focus high interest rates this is the reason saving PLS accounts are more

than current account. The second example is ATM which substitutes cherubs at counter and cash

it. HBL is stronger in this field. It must further enhance in this field to compete rivals.

3.1.4 Bargaining Power of Suppliers

The bargaining power of suppliers influences the competition particularly when there are an

extensive number of suppliers in the market. In the case of bank suppliers are clients or

customers which supply cash to the banks. So it is necessary for banks to provide good services,

quality, security and low charges to clients. In this field HBL is good as it offers quality services

to clients. They charge low charges on remittance with the goal that it is a rival to different

banks.

3.1.5 Bargaining Power of Customers

When customers are concentrated their bargaining power represents a major force that greatly

affects Intensity of competition. Presently the number of clients for banks in Pakistan is high.

Banks are offering mixed bag of products and services to their clients. HBL have an extensive

number of traditions. It must offer great products and services to their clients to pull them to

come to HBL.

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3.2 SWOT Analysis

SWOT Analysis is used to analyze strengths, weaknesses, opportunities and threats available to

an organization in the market or Industry.

3.2.1 Strengths

Strengths can be characterized as a territory where an organization is best at doing something

that puts organization at leverage in examination to its contenders.

Habib Bank is an entrenched bank appreciating long history in excess of 67 years of

experience and profitable operations.

HBL has been extremely successful in controlling expenses as it effectively rebuilt itself

after its privatization. During this process 1600 employees were relieved under a golden

shake hand plan and 110 branches were shut.

HBL is the biggest private bank in Pakistan now and clients trust is high. It has the

biggest network among private banks of Pakistan.

Excellent branches appearance gives an edge to HBL over different banks. The branches

of HBL are decently furnished.

HBL has brought innovative products and services like personalizes services, electronic

fund transfer, electronic banking and auto teller machines.

The Banks Rupee Traveler Cherubs have been market pioneers from past six years.

HBLS car to car financing plan is extraordinary in auto loan segments.

Habib Bank is a globally perceived name in banking products and services.

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3.2.2 Weaknesses

A weakness is characterized as a territory in an organization the firm is not as great as doing

something as its rivals or a thing which an organization needs subsequently putting at

disadvantage in correlation to its rivals. In view to above definition HBL has accompanying

following weaknesses.

Weak marketing policies.

Lack of correspondence in the middle of bank and clients about terms and conditions of

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

Employees at branch level are not legitimately propelled to work by heart. They take the

all standard exercises as a boring job.

Most of the workers need managerial preparing as they are not properly taught. Because

of rank they have climbed on the progression line to Grade I, II or III positions having

barely bachelor degree. This kind of senior staff cannot matter the cutting edge and

creative methods of administration in decision making.

Mission of HBL is not decently characterized.

Though HBL is biggest bank in Pakistan yet the certainty remains that it is not showcase

pioneer as NBP.

Now as it is a privatized bank that is the reason Government backing to HBL decreased

as it was in past good fortunes.

Nepotism and Favoritism.

Infected portfolio still exists as bad debts.

29
3.2.3 Opportunities

An opportunity might be defined as change in outer environment which if appropriately used

with the strength of organization will result in enhanced sales, income or market share. HBL

can take benefit from following opportunities.

Opportunities for growth and expansion in cash management.

Growing approaches of Government on business and trade area give HBL opportunity of

these arrangements to meet effectively with the representatives to tackle their issues of

cash and financing facilities.

Large international network which primarily concentrates on trade finance with Pakistan

might be used to tap exchange exercises in different markets. In addition services for

example cross border or offshore financing for corporate clients might be improved.

Customer input on distinctive items can really improve the bank performance and

encourage the atmosphere for other future policies.

3.2.4 Threats

Threat can be defined as change in outside environment which if not met with proper strategies

will result in loss of revenue, market share or income. In context of HBL the accompanying

potential dangers exist:

Political instability.

Adverse and unstable government policies.

Afghan wan and Iraq war has a profound impact on the economy of Pakistan which has

influenced the banking sector.

30
 Other private banks with sound benefit is likewise a danger to HBL e.g. MCB, Alfalah,

UBL and so forth.

Increased regulations from State Bank of Pakistan may also affect banking industry.

31
3.3 Financial Statements of Habib Bank Limited

32
Source: www.hbl.com

33
Source: www.hbl.com

34
3.4 Financial Ratio Analysis

1. Return on Assets (ROA)

It shows the ability of management to acquire deposits at a reasonable cost and invest them in

profitable investments. This ratio indicates how much net income is generated per Rs, of assets.

The higher the ROA, the more the profitable the bank.

Return on Assets (ROA) = (net profit/Average assets) X 100

Ratio 2015 2016

Net Profit 35101591 34206254

Average assets 2218432983 2507182331

Return on Assets 1.38% 1.70%

Result

Return on assets has increased from 2015 to 2016. It means that assets of the bank are giving

more return over period of time. Increase in return on assets is due to major increase in net profit

after tax. Investor will observe it as a positive trend in the banks management of assets.

2. Return on Equity (ROE) = net profit/ Average equity

ROE is the most important indicator of a banks profitability and growth potential. It is the rate

of return to shareholders or the percentage return on each Rs. of equity invested in the bank

Net Profit 35101591 34206254

Average Equity 158352123 168769313

Return on Equity 17.62% 21.60%

35
Result

Return on equity is increasing from2015 to 2016 which is due to increase in the profit after tax of

the Habib Bank. Increase in the return of equity builds confidence among investors. Increased

return on equity shows increasing trend in 2016 .So investors will come and invest in the bank.

3. Earnings per share

A ratio that depicts each rupee earned on the behalf of each share of companys shareholders.

EPS=total earnings / total shares

Ratio 2015 2016

Total earnings 2218432983 2507182331

Total shares 1477042 1471085

EPS 16Rs 21Rs

Result

Earnings per share have increased this year as compared to previous year which means bank is

using more financial resources to earn profit.

4. Liquid assets to deposit-borrowing ratio (LADST)

This ratio indicates the percentage of short term obligations that could be met with the banks

liquid assets in the caseof sudden withdrawals.

Liquid assets to deposit-borrowing ratio (LADST) = (liquid asset/customer deposit and short

term borrowed funds) X 100

36
 Ratio 2015 2016

Liquid assets 935427 991705

deposit-borrowing 1401230 1524538

Liquid assets to deposit-borrowing

67% 65%
ratio

Result

The ratio has increased over the period because fixed deposits were more in previous year as

compared to 2016 .

5. Capital Adequacy Ratio = Total eligible regulatory capital held / total risk weighted asset

Ratio 2015 2016

Total eligible regulatory capital held 13025763 157017621

Total risk weighted asset 846087632 968774005

Capital adequacy ratio 15% 16%

Result

The capital adequacy ratio shows that firm have sufficient capital to meet its capital

requirements. This ratio has been increased almost 1% then previous year.

6. Net Loans to deposit and borrowing (NLDST)

This ratio indicates the percentage of the total deposits locked into non-liquid assets. A high

figure denotes lower liquidity.

37
Loan to Deposit Ratio = (Net Loans / Total Deposits) X 100

Ratio 2015 2016

Total Loans (Rupees in 000) 563701 595295

Total Deposits (Rupees in 000) 14201230 1524538

Loans to deposit ratio 39% 40%

Result

Deposits of the bank are liability. These should be managed properly are invested in profitable

sectors. If advances to deposits ratio increases it shows that more customers are obtaining Loans.

In the case of Habib Bank Limited percentage of advances to deposits is decreasing and there is a

sudden change from 2015 to 2016 .

Due to poor economic conditions and energy crisis in the country, business houses are suffering

with less utilization of their capacity so they are not getting long term Loans.

7. Total Assets turnover= sales/ total assets

Ratio 2015 2016

Sales 59897214 629608736

Total assets 2218432983 25071822331

Total Assets turnover 35% 34%

Result

This ratio represents that how much efficiently bank is utilizing its total assets to generate sales.

38
8. Total Risk Weighted Assets to Total Assets= (total Risk weighted assets/ Total Assets) X

100

Ratio 2015 2016

Total Risk weighted assets 846087632 968774005

Total Assets 1715271378 1867003384

Total Risk Weighted Assets 49% 52%

to Total Assets

Result

As the ratio has increased over the period, it represents that bank has started to invest in most

risky projects. There is always positive relationship between risk and return. This would result in

high return.

9. Loans to Asset Ratio

A ratio explaining the portion of loans which are issued against the assets of the company.

Loans to asset ratio= net loans / total assets x 100

Ratio 2015 2016

Non-interest Income 563700737 595295176

Total Income 1715271378 186700389

Non-interest Income to total 33% 32%

Income Ratio

Result

This ratio has decreased because more loans were issued in 2016.

39
4 Chapter 4

My Internship Responsibilities

First day when I went in bank everything was new to me in Habib Bank limited though I have a

good Bookish knowledge but truthfully speaking it was totally different from the practical

knowledge of the banking. But with the grace of Allah Almighty who make me able to learn

some sections of the bank.

4.1 Departments of Organization in which I have worked

I have worked in some departments of HBL.

Deposit Section

Clearing Section

Remittances Section

4.1.1 Deposit Section

There are two types of deposits i.e. current deposits and saving deposits.

Current deposits are those deposits on which no Interest is given to depositor. The main benefit

of currents deposits is saving. Bank only take or charge service charges on current account

while on the other hand Interest is given by bank on saving account. Depositors open saving

account for profit earning on their savings. A customer or a firm can open Individual, Joint or

business account.

40
4.1.2 Clearing Section

Every Bank performs the paying and receiving functions. Cheques are collected which are drawn

up to Banks for customers. Similarly the cheques drawn on different Banks and deposited by

Banks own customers for collection within the city are known as clearing. The functions of

receiving andpaying are mostly done through the clearing house. A clearing house can be

defined as "A place where that representatives of all Bank get together to settle the receipts and

payment of cheques drawn on each other" Clearing House provides the facility which can hardly

be dispensed with especially in case of crossed cheques. There are two main types of clearing.

Outward clearing

Inward clearing.

4.1.2.1 Outward Clearing

It includes those cheques and other instruments which are sent by the Bank to the Banks for

payment on behalf of its own clients. Cheques are sent to clearing house through local main

branch.

4.1.2.2 Inward Clearing

The cheques drawn are called inward clearing drawn on Habib Bank through its representatives.

On the Bank presented by other Banks for payment it includes those cheques and other

instruments of Pakistan branches which other Banks present at the clearing house.

4.1.3 Remittance Section

Remittance means transfer of money from one place to another place. It is of two kinds.

41
 I: Inland remittance.

II: Home remittance.

4.1.4 Inland remittances

An inland remittance means a transfer of money payable at a certain place within the country.

Inland remittances can be classified as under:-

I: Within locality.

II: Outside locality.

Within place

When a branch situated in Kotli is required to send drafts to any other branch situated in the

same city the process is known as within locality. For example HBL main brancd Ali Raza sends

any draft to HBL Nar Branch KotliBranch.

Outside Locality

Outside locality is an important type of inland remittances, which means the transfer of money

payable outside the city. For example HBL main branch Mr. Ehsan sends any draft to a branch

situated at Lahore. It is commonly done through the following means.

Demand Draft (D.D)

Demand draft is a written order by a branch of a specified Bank drawn on another branch of the

same Bank to pay a certain sum of money only to or to the order of the Payee. Demand drafts are

purchased by the clients and after receipt of money Bank issues and delivers the D.D. to the

purchaser who himself sends it to the payee. In D.D. the Banks do not recover postal charges as

42
it is payable by the purchaser. The Bank, after deliver of D.D. to the purchaser also sends its own

advice called IBCO (Inter Branch Credit Order) to the drawer branch mentioning therein all

details of issued draft. Now bankerchequeis payableanywhere in Pakistan.

4.1.5 Account Section

Every Business organization deals in money matters. Bank also deals in money and more over

since the money belongs to the depositors therefore it is of utmost importance to keep systematic

and correct record.

Further-more the Banks are commercial institutions and its main objective is to earn profit

therefore then record of all incomes and expenditures are kept correctly and systematically. In

HBL the responsibility for maintaining necessary accounting data and to keep up to date records

in a systematic manner has been assigned to the Accounts Department. The Branches of Bank

perform their daily routine work and deal in money that belongs to depositors. Here account

department hold great importance in banking because it keeps all the accounting records

properly. The account department maintains all the accounting records properly there are certain

accounting terms which are defined as following.

4.1.5.1 Account

A summary of all debit and credit transaction pertaining to a similar nature or to an individual or

body of persons is called an account.

4.1.5.2 Vouchers

Written evidence recorded on a piece of paper in respect of money transaction is called voucher.

43
4.2 Problems Encountered

During my four weeks stay in (HBL Nar Branch KotliA.K) I found various problems which I

think should be resolved for the better functioning of the Bank. Some of these problems are of

such nature that their solution will help the Bank and its workers in cooping in this complex

world of globalization.

4.2.1 Problems

Some of problems which I encountered during my Internship are following.

There is a lack of on-line information in the Bank about the changes taking place in the

world of Banking.

A customer cannot find any kind of journal or newspaper there.

In early days of month there is a great rush of customers which cause inconvenience for

the officer concerned and cashier as well.

A separate counter for ladies is not maintained there.

Attitude of bankers with all their customers is not same they pay more attention and good

service to some of their customers. Some customers have approach to officials due to

which they get work done before others.

4.3 New Knowledge Acquired

The most important things which I have learnt during my internship are

Customer dealing

Clerical work

44
During my Internship period I have learned how to deal with customers. As most of the people

are uneducated in Kotli so it is a bit difficult to deal with such type of customers to make them

understand about your products and services. Sometimes customers get rude or angry for variety

of reasons then such customers should be dealt in a polite manner. How you respond can make

difference between customers who feel satisfied with your answer or not.

Clerical work

4.3.1 Account opening section

I spent the 1st three days in account opening section. As the area where I did my internship, the

people are not well educated that is why whenever a person will come for opening an account

than the manager referred that man towards me. Then I guide that man and the form of opening

an account will be filled by me and the entire legal requirement is completed by me. In past the

Habib Bank use old type of forms but now they are using new forms of opening an account.

There were five sign required on old type of form but now the new form requires only one

sign.To open an account following Information required

Name of person

Father name

Type of account

Postal address

Contact number

Two copies of CNIC card

45
Signature of Applicant

Amount deposited

If a person cannot do signature two passport size photos are required with thumb impression.

4.3.2 Clearing section

I have also worked in clearing section. During my work I have learned how to collect the

different cheques of different banks. Then I learnt how cheques of different banks mutually

transfer. For mutual transfer everyday a meeting held in NBP mani branch Kotli. The

representatives of UBL, ABL , Bank of Khyber, Bank Alfalah and HBL participate and thus

mutual transfer of cheques held.

New Method: Now days this activity is done through NIFT.

4.3.3 Remittances section

I also worked in remittances section. In remittances section I learned how to transfer money from

one place to another place. In this section I learned

Demand draft: A financial payable on demand.

Online transfer: Electronic transfer of money from one bank account to another without

direct intervention of bank staff.

On each transaction there is commission charged to the sender.

The commission of demand draft from 1 to 1lack is Rs: 160.

The charges are on the demand draft up to 1lack is calculated in percentage.

The commission of online transfer is Rs 350.

46
Working for four weeks in HBL Nar Branch KotliA.K as an Internee was very informative

experience for me. During my Internship period I have learnt many new things which are surely

going to help me in my professional career. It was a good experience for me to observe and to be

the part of practical work of an organization like HBL. During my internship period I got a

chance to understand general consumers behavior and their needs and wants related to banking

services and products.

47
Chapter 5

Conclusion and Recommendations

4.4 Conclusion

Now a days HBL is leading bank in Pakistan. In terms of profitability bank ranks amongst the

top entities in Pakistan. It has progressed and improved tremendously since its establishment

and has a customer based exceeding 5 million. But it can still advance further if it adopt new

changing Information technologies as there is still room for Improvements. It is clear that it is the

first choice of every customer who believes in qualitative approach of banking an environment

of highly responsible people. In terms of operative features and customer support bank is

enjoying a healthy market share and taste of good status. HBL is clearly the best bank operating

in Pakistan. Corporate and commercial functions are distinguished features of HBL. It is

experiencing a good reputation and reasonable markup with respect to prevailing markets

markup with assurance of satisfaction and support. HBL has more customers as compared to

other banks.

4.5 Recommendations

As from the previous analysis of the financial statements I have realized that Habib Bank is

performing very well since its inception. It is quite difficult to give suggestions to improve

banking conditions of HBL. But as we know that nothing is perfect there is always a room for

improvement at everywhere. So I recommend following suggestions for HBL.

48
 i. All customers are not treated equally in the bank. The attitude of the bankers with all of

their customers is not same they pay more attention and good services to some of

customers and neglect a major portion of customers. The customers with big deposits are

given more attention and importance as compared to low deposit customers. Some of the

customers have approach to the bank official and get their work done before others

which is not a good practice. This difference of behavior makes most of customers to

feel unsatisfied or discouraged. So I recommend HBL to remove this difference of

behavior and treat all customers equally and give importance to all customers whether

poor or rich. As well as HBL should increase its communication with customers about

terms and condition of its products and services to increase customer awareness. All

customers should be treated equally.

ii. Second problem which I have noticed during my Internship in HBL is burden of work on

employees. Certain needs of employees are not considered for example banking timing 9

a.m to 6 p.m which is long duration of work. Due to burden of work employees dont

feel happy or satisfied. So work burden should be reduced because with fresh mind

employees can perform their duties better, easily and effectively. Certain needs of

employees should also be considered like bank timings should be acceptable and

employees should be given importance and must be consulted in decision making. This

will make the employees work better for their organization. To motivate employees to

work efficiently and effectively salaries of employees should be increased over time.

iii. Habib Bank is going towards mobile banking. Mobile banking is a system that allows

customers of Financial Institutions to conduct financial transactions through a mobile

device such as a mobile phone or tablet. But the problem is that a common client has no

49
idea of its usage due to lack of marketing. To increase customers awareness regarding

mobile banking I recommend HBL to launch a proper marketing plan.

50
Bibliography

Desk, N. (n.d.).BRICS. Retrieved July 15, 2016 , from BBC: http://www.bbc.co.uk

Emerging Nations Bloc to Open Development Bank .(n.d.). Retrieved July 29, 2016 ,

from New York Times: http://www.nytimes.com

Fall in SBP`s foreign exchange earnings. (n.d.). Retrieved August 3, 2016 , from DAWN

News: http://epaper.dawn.com

HBL.(n.d.).About Us. Retrieved August 2, 2016 , from Habib Bank Limited:

http://www.hbl.com

James C. Van Horne, J. M. (2009). Fundamentals of Financial Management. New Delhi:

PHI Learning Pvt Ltd.

Wikipedia.(n.d.).Globalization. Retrieved August 4, 2016 , from Wikipedia, the free

encyclopedia.: http://en.wikipedia.org

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