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INTRERNDSHIP REPORT

ON
HABIB BANK LIMITED
HAJIWALA BRANCH GUJRAT

SUBMITTED TO:
SIR AHSAN MUKHTAR

SUBMITTED BY:
ABIDA IRFAN
B.COM(Hons)
ROLL NO: 13024854-060
SESSION: 2013-2017
ACKNOWLEGEMENT:
Nobody can say that I am flawed everybody ought to concede that without the
assistance of ALLAH and his kin a man can't get anything so I front my head before
Almighty ALLAH with appreciation. I am additionally extremely appreciative and
salute my Presents or numerous person who have helped me in molding this report . I
am also thankful to the staff of Habib Bank Limited. I am also thankful to the branch
manager Mr. Shamas and other staff members operational manager Mr. Yousaf ,
cashier Mr. Zulfiqar Ahmed and bancassurance employee Miss Faiza Zulfiqar thats
help me in my report. All staff members provide me opportunity work in good
environment.
Table of the contents Page

Acknowledgment
Executive Summary
Objective of the report 01
Scope of the work 01
Introduction of bank 02
History of HBL 02
About HBL 03
Privatization 04
Vision 05
Objective of HBL 05
Values of HBL 06
Mission 07
Goals of HBL 07
Rule of HBL in banking sector 08
Policy of HBL 09
Organization structure 10
Division of office 11
Board of Directors 12
General Banking Department 15
Account opening section 15
Deposit section 16
Cash Department 27
Clearing section 29
Remittance section 31
Other service 32
Advance of HBL 34
Function of HBL where I did my internship 36
Account opening section 36
Clearing section 37
Remmitance section 37
SWOT Analysis 38
Internal Analysis 38
Strength 38
Weakness 39
External Analysis 40
Opportunities 41
Threats 41
Financial Ratio 42
Observation 45
Conclusion 46
Recommendation 48
References 49
EXECUTIVE SUMMARY:
Each students of Business Management at UOG has necessary
responsibility to do the6 weeks internship in well supposed organization.The reason
for this program is to present the understudy with down to earth use of hypothetical
idea to them during doings of their B.COM (hons), BBA and MBA program. Report
starts with the topic evolution of banking. "Bank" is said to have been gotten from the
words Bancus or Banque or Bank. This history of managing an account is followed to
as right on time as 2000 B.C. Discussing business saving money in Pakistan It was
exceptionally troublesome for Pakistan to develop its own Banking framework
quickly after autonomy without adequate assets. By 30th June 1948 the quantity of
timetable banks in Pakistan declined from minor scratch.Today there are more than
7000 branches of business banks alongside a built up system of supplementary money
related organizations. This advancement in the managing an account division is the
consequence of untiring endeavors of six decades. HBL was the main business bank
to be built up in Pakistan in 1947. Throughout the years, HBL has developed its
branch arrange and turn into the biggest private division save money with more than
1,450 branches the nation over and a client base surpassing five million connections.

On December 29, 2003 Pakistan's Privatization Commission reported that the


Government of Pakistan had formally conceded the Aga Khan Fund for Economic
Development (AKFED) rights to 51% of the shareholding in HBL, against a venture
of PKR 22.409 billion (USD 389 million). This report contains data about HBL's
governing body, administration, mission, vision and quality. HBL's operations are
talked about in light of its working division in the branches like money, clearing,
outside trade and records office and furthermore in light of its administrations and
items which it is putting forth to clients' climate they are singular, business, corporate
or horticulture field related clients. HBL is as of now offering telephone banking, web
saving money and different money administration administrations for the help of its
clients. HBL's auto to auto advance has its own particular distinction in Pakistan's
keeping money division. HBL's branch system is spread everywhere throughout the
Pakistan which has its focused line over all other private division banks in Pakistan.
we talk about the General bureau of managing an account that gives us proclamation
about how to open a record, how to store and clearing. At the end is about SWOT
analysis of HBL and I gave the different types of recommendation.
OBJECTIVE OF THA REPORT:

The aim of the report is to review and distinct the organizations


offered by the bank to its attention customers, and to get ready,
in fact, conditions and to see how productive association
organization apply organization ability to run their organization.
Its objectives are as following;

1. To evaluate and examine banking operation.

2. To give a knowledge to reader of the association.

3. To purpose feasible recommendation.

SCOPE OF THE WORK:

We define the various function of HBL Hajiwala Branch. The


branch perform different banking service for our customer like
Remmitance, bill, deposits and clearing etc.

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Chapter No: 1

Introduction of Bank:

"Bank" has been gotten from the French word "banque" or


bancus which implies seat, office or foundation for the
continuing, loaning and trading of cash. A few specialists have
the supposition that "Bank" is gotten from the "Germen" word
back which to the significance of "joint stock reserve". The
bank is a budgetary foundation that acquires cash from one
gathering and loans to the next gathering (Government,
individual, business) and the distinction amongst obtaining and
loaning rate of benefit/Interest for the bank. Bank gets and
loans cash on premium premise.

History of habib bank:

Originally established in 1941, HBL moved its managing to


Pakistan in 1947 at the demand of Muhammad Ali Jinnah, in
this manner turning into the principal business bank to establish
its framework in the nation. Setting out on a propelled travel,
HBL kept on developing and grow in the back to back years.
The Bank's first universal branch opened in Colombo, Sri

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Lanka in 1951, while the development of the famous Habib
Bank Plaza was finished in 1972, the year that additionally
denoted the remembrance of HBL's 25th anniversary.

With a size capable residential share HBL was nationalized in


1974. The Bank turned into a trailblazer in the managing an
account industry, getting lion's partake in internal outside
settlements and a noteworthy piece of the pie in credits to little
enterprises, merchants and ranchers. Global operations
extended and HBL now works in more than 25 nations
crosswise over four landmasses. In December 2003, Pakistan's
Privatization Commission reported that the Government had
formally exchanged 51% of HBL's shareholding to the Aga
Khan Fund for Economic Development (AKFED) against a
speculation of PKR 22.409 billion (USD 389 million). In
February 2004, administration control of the bank was given
over to AKFED. By April 2015, the Government of Pakistan
stripped its whole shareholding of 41.5% through the
Privatization Commission of Pakistan, in this way
authoritatively making HBL Pakistan's biggest private bank.

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About HBL:

HBL was the main business bank to be set up in Pakistan in


1947. Throughout the years, HBL has developed its branch
organize and kept up its position as the biggest private area
manage an account with more than 1,600 branches and 1,700
ATMs all inclusive and a client base surpassing eight million
connections.
The Government of Pakistan privatized HBL in 2004 through
which AKFED procured 51% of the Bank's shareholding and
the administration control. The staying 41.5% shareholding by
the Government of Pakistan was stripped in April
2015.AKFED keeps on holding 51% shareholding in HBL
while the rest of the shareholding is held by people,
neighborhood and outside establishments and assets including
CDC Group Plc which holds 5% and International Finance
Corporation which holds 3%.With a worldwide nearness in
more than 25 nations spreading over crosswise over four
continents, HBL is likewise the biggest residential
multinational. The Bank is extending its nearness in key
worldwide markets including the UK, UAE, South and Central
Asia, Africa and the Far East.

The key zones of operations incorporate item offerings and


administrations in Retail and Consumer Banking. HBL
additionally has the biggest Corporate Banking portfolio in the

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nation with a dynamic Investment Banking arm. SME and
Agriculture loaning projects and saving money administrations
are offered in urban and provincial focuses.

Privatization:

On December 29, 2013 Pakistan's Privatization bonus declared


that the Government of Pakistan had formally conceded the
Aga Khan Fund for Economics Development (AKFED)
appropriate to 51% shareholding in HBL, against the venture of
PKR 22.409 billion (USD 389 million). The staying 41.5%
shareholding by the Government of Pakistan was stripped in
April 2015. AKFED keeps on holding 51% shareholding in
HBL while the rest of the shareholding is held by people,
neighborhood and outside foundations and assets including
CDC Group Plc which holds 5% and International Finance
Corporation which holds 3%. The Board of Directors was
reconstitute have four AKFED candidates, including executive
and President/CEO and three Government of Pakistan chosen
people.

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VISSION OF HBL:

“Enabling people to advance with confidence and


success.”

OBJECTIVE OF HBL:

Objective are the terminations towards which association and


exceptional activities are co-ordinate. The target of every
director is to make an "Excess", and clear and incontestable
objective empowers the gauge of the adequacy and efficiency
of managerial exercises. Destinations communicated the last
items desired, and genuine assign are for the most part fortify
by sub-objectives. Along these lines, objective outline a chain
of significance and furthermore a framework.

 To provide best service to it’s customers.

 To provide the facility of micro financing.

 To strength of the Economy of Pakistan.

 To maximize the profit of the Bank.

 To recover the bed debts.

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VALUESOF HBL:

Integrity:
For us, integrity means a synergy approach towards abiding our
core values. United with the force of shared values and
integrity, we form a network of a well-integrated team.

Meritocracy:
At every level, from selection to advancement, we have
designed a consistent system of human resource practices,
based on objective criteria throughout all the layers of the
organization. We are, therefore, able to achieve a specific level
of performance at every layer of the organization.

Team Work:
Our team strives to become a cohesive and unified force, to
offer you, the customer, a level of service beyond your
expectations. This force is derived from participate and
collective endeavors, a common set of goals and a spirit to
share the glory and the strength to face failures together.

Culture of Innovation:
we aim to be proactively responsive to new ideas, and to
respect and reward the agents, leaders and creators of change

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Mission of HBL:

“To make our customer prosper, our staff excel and


create a value for shareholders.”

Goal of HBL:

1. To initiate private investment funds and open assets for live


the same into beneficial channels and guarantee their
availability. To advance modern husbandry and financial
process through the dynamic investment of private and open
segment in the district.

2. Help under zones and make work openings, particularly in


the countrified ranges of the area. Further, to guide and help the
general population of Pakistan serving abroad to successfully
and productively put their outside funds in the region and
additionally in different parts of Pakistan.

3. Make a distinguished and sound portfolio for usage of sit


without moving assets and their interest in the current and new
pursuant particularly in the spear point of high-specialists
agro-based fare arranged and building task to guarantee most
extreme returns.

4. Participate and look for the share of the nation in the capital
market of Pakistan by method for membership through
privately inhabited assets in the main stock trade of the nation

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and in the long run preparing for setting up a securities
exchange in the area.

Role of HBL:

Habib Bank was the pioneer, which opened branches all over
Pakistan in order to give back and diverse workplaces to the
business gather. HBL has displayed certain new things and
organizations in the wake of starting its operations in Pakistan.
It was first business bank to import the electronic machines that
are being utilized as a part of the principle banks of push
countries. These machines have made less requesting for the
bank to adjust to its amplifying business and rapidly creating
clients.

The HBL has displayed new workplaces like Evening Banking,


Gift Checks, Rupee Traveler's Checks, Credit Card System,
Short Term and Long Term Schemes for specialists, Crore Patti
Scheme, and Monthly Income Scheme. It similarly issues a
month to month conveyance with the name of Business News
Service. Habib Bank is totally adjusted to screen the national
economy and accept its due part in passing on flourishing to the
country.Habib Bank is assumptive a fundamental part in the
Public Sector. After bundle, the essential genuine relationship
of HBL with the Government was the steady of the Pakistan
Finance Corporation Ltd., equally with the Central and
Provincial Government for financing of cotton. The bank

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reliably gave cash related and concentrated support to open
division. Bank in like manner related itself with sweeping scale
endeavors, for instance, Warsak Dams Project, WAPDA,
Pakistan Steel Mill, KDA et cetera by giving assets and
distinctive workplaces.

Policies of HBL:

Polices are built up as manual for hypothesis in essential


initiative. They expect that when decisions are made, these will
fall inside particular cutoff points. Approaches don't require
action yet are relied upon to guide Managers in their decision
obligations when they do submit mistakes. Procedure is a cutoff
inside which a decision is to be settled on and ensure that the
decision will be solid with and add to goals. Procedures tend to
pre-pick issues, avoid reiterated examination, and give a bound
together structure to various sorts of courses of action, in this
way permitting directors to delegate master while caring for
control. Methodologies customarily exist on all levels of the
affiliation and range from division plans to minor or backup
approaches relevant to the smallest region of the affiliation.

1. Managerial Policy:

Undertakings of Habib Bank are obsessed however President


and Members Executive Committee who are atypically Senior
Executive Vice Presidents of the Bank based at Head Office.
Every Region is going by Regional Chief Executive and helped

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by Provincial General Managers. Each Regional Headquarter
control branches in their general vicinity of ward.

2. Marketing Police:

Marketing is the business work that recognizes client needs and


needs decides, which target showcases the association can best
serve, plans proper items, administrations and projects to serve
these business sectors and calls upon everybody in the
association to "think and serve clients". From a social
perspective, showcasing joins a general public's material
necessities and its monetary examples of reaction. In this
manner advertising is a key figure business achievement.

ORGANIZATIONAL STRUCTURE:
Habib bank is the most seasoned and biggest bank of Pakistan
and it works the biggest system of branches in Pakistan.
Historically its association was overseen on geography premise.
Be that as it may, many issues upraised with the procession of
time and with the development of branches system, for example,
presence of coordination among branches and additionally high
workplaces, delay in interchanges, long incident passes in
critical choice –making, likewise issue of appropriate observing,
assessment, and pay of the representatives.

Therefor, in 1997 organization alteration were made to


deposition the bank and licking the above issues furthermore to
give new keen and corporate shape to the exercises of the bank.

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The association changed the structure on useful lines. Along
these lines different gatherings have been made to do
distinctive administrations and capacities inside the bank.

Following are the various groups, whish are created:

1. Corporate & Institutional Banking Group (CIBG)

2. Retail Banking Group (RBG)

3. Asset remedial Management Group (ARM)

4. International Operations & Overseas Banking Group.

5. Finance & Audit Group.

6. Credit policy group.

Every group is going by the gathering official and they frame


approaches and systems. Every group official is highly
experienced and educated individual in his or her significant
areas of specialization.

Corporate and Institutional Banking Group (CIBG)

In order to action business from corporate bodies/big customers


all over the country, this group operates. The main function of
this group is to provide better services to corporate customer, to
keep them in their fold and to avoid stopper of their business to
other banks. For this purpose, corporate centers have been
established in big cities of Pakistan, to provide quick & better
services to corporate customer.

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2. Retail Banking Group

It deals with the common branches of the bank spread all over
the county. It fetches to bank spread all over the country. It
fetches to bank greater but small deposits and this group’s
function is to introduce innovative products& services for the
retail banking. Some of which are Muhafiz Rupee Traveler
Cheques & previous year’s Crore Pati Deposit Scheme.

3. Asset Remedial Management Group

The primary goal of this group is the speedy recovery and


resolution of the classified portfolio. The group aims at
vigorous litigation, greater merges & consolidation of
closed/stick units and debt equity swaps to fully address the
classified portfolio.

4. International Operations and Overseas Banking Group

The overseas operations have been consolidated under


international operations group. It has chalked out country
specific business revitalization strategies for important
franchises. In addition, new consumer banking products are
being developed at selected locations.

5. Finance and Audit Group

It is separatist of the business groups and look after the


financial, regulatory and management reporting of the bank. It

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has also implemented new audit manual to create to increasing
level and sophistication of risks involved. A new accounting
and procedures manual is also nearing completion to improve
the financial, regulatory and management reporting of the bank.

6. Credit Policy (CPG)

CPG is staffed with industry specialists. They have


implemented a new credit policy manual to ensure merit
oriented risk management based on internationally proven and
successfully banking methodology.

DIVISION OF HBL’S OFFICE

There are three types of offices in HBL.

1. Head office.

2. Regional Head quarters.

3. Branch offices.

1. Head Office

Head office of HBL is located in Karachi. It exercises overall


control over the bank and other areas of administration and
operations. The head office (HO) has various functions.

Functions

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1. It formulates policies and ensures its implementation by
field offices.

2. It supervises and controls operations of RHQ.

3. It deals with foreign donors.

4. Sanctioning of loans.

5. Deals with ministry of finance.

6. Recruitment, training and management of human resources.

2. Regional Head Quarters

The number of RHQs of HBL in the country is ten.

Functions of RHQ

The functions of RHQ of HBL are:

1. To implement the policies of Head office (HO).

2. To extend the credit facilities by keeping in view all the


prescribed conditions.

3. To recover/collect the existing long-term financial


assistance extended by the bank as per schedule.

4. To extend working capital facilities.

Branch Offices

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HBL has today 1456 branches inside the country, 65 branches
outside the country and 17 subsidiaries. Other than this the
bank has its oversea operations in 25 countries includes 65
branches, 17 subsidiaries, two Joint Ventures and two
representative offices.

HBL’S ORGANIZATIONAL HIERARCHY

Chairman

Board of Directors

Senior Executive Vice


President

Executive Vice
President

Vice President

Assistant Vice
President

Officer Group-1 Officer Group-11 Officer Group-111

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MEMBER OF BROAD OF DIRACTORS:

G.E Group Executive

IOBG International and overseas banking group

CPOD Corporate planning and organizational development

CPCS Credit policy and company secretary

RBG Retail banking group

Head of IT

Head of HR

Head of Finance

Broad Of Directors:

Domestic operation of HBL

RGB Group Executive

Regional Office

Zonal Offices

Branches

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Chapter No: 02

General banking department:

This department consist the following section:

I. Account opening section

II. Deposit section

III. Clearing section

IV. Remittance section

1. ACCOUNT OPENING SECTION:

There are diverse convention which are to be found out for


opening of a present or sparing record with a Bank. The
customer is to top off "Record Opening Form". It is a dress
hypothesis by a client to the bank to permit him to have and
work the present or sparing record. At the point when the
Banker is fulfilled about the solidarity of the client, he consents
to open the record. The Banker acquires the example marks of
the client on the mark book or on card. In Pakistan the current
account can be opened with a minimum of Rs. 5000/- and PLS
Saving Account with a minimum of Rs 1000/- These amounts

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are also the minimum balances to be maintained by the account
holders with the Bank.

TYPES OF BANK ACCOUNTS:

1. Current account

2. Saving account

3. Joint Account

4. Profit & Loss Account

5. Fixed Deposit Account

DEPOSIT SECTION:

Deposit Accounts:
HBL Freedom Account
HBL iD
HBL MoneyClub
HBL Rutba
HBL AsaanAccount
HBL Basic Banking Account
HBL Current Account
HBL PLS Savings Account
HBL Daily Munafa Account
HBL Foreign Currency Accounts (all currencies)
HBL Savings Bucket

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HBL Value Account
HBL Advantage/AdvantagePlus
HBL Daily Progressive Account
HBL offer Deposit product are as following:

1. CURRENT ACCOUNT:

Minimum balance of Rs. 5,000. Unlimited transactions.


Non-profit bearing. HBL DebitCard and Inter Branch
Transaction System (IBTS) facilities. Funds transfer to any
bank through HBL PhoneBanking. Personal Accidental
Insurance.

HBL offer following the four form of current account.

1.1) Conventional Current Account:

Individual or group of Individual looking for secure


transactional services. Conventional current account is a secure
transactional current account that give the account holder the
ease of conducting unlimited transactions, anywhere of
Pakistan. Minimum monthly balance requireed Rs. 5000.

1.2) Freedom Account:

This account for salaried and employed person. HBL offer


Freedom account specially to reduce cost of inter-city
transactions. Customer can make transaction using financial
instruments like pay order, cheques and fund transfer for free.
Bank offer to their customer free unlimited banker cheques,

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free unlimited cheques book, free debit card, free cash deposit
and withdrawals.

1.3) Basic Banking Account:

Individual who need a simple bank account with low


transaction requirement. Open an account with just Rs.1000.
No minimum balance requirement.

1.4) HBL Foreign Currency Current Account:

HBL offer foreign currency current account which help to


customer maintain foreign currency deposits and is available in
the following currency.

USD

GBP

EUR

2. SAVING ACCOUNTS:

An ideal account for anyone who wants to keep aside some


extra funds for emergencies. Rather than keeping large amounts
of money at home, HBL’s Savings Account allows you to
secure your savings with us, providing principal security as
well as a modest profit rate.

2.1) PLS Saving Account:

Individual above 18 years of age who want to earn profit on


their deposit. HBL offer PLS saving account customer can

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enjoy attractive profit rates with return on saving &
simultaneously easy access of their deposit. Open an account
with as little as Rs.100. Benefit from two withdrawal
transaction every month.

2.2) HBL Value Account:

Individual above 18 yeas of age who make small to medium


saving deposit and can get profit after every month. HBL value
account helps customer make control of own expenses with
saving and profit. Deposit range for best rate Rs.10000 to
Rs.100000.

2.3) HBL Daily Munafa Account:

Individual and institution with high transaction requirement and


want to attractive return on their deposits.

2.4) HBL Money Club:

Individual under 18 year of age. HBL moneyclub promotes


early undertaking of banking in a fund and interesting way and
helps customer develop the habit of saving.

2.5) HBL Rutba:

Individual aged 55 years and above who are looking forward


to a financially independent life after retirement. Free issuance
of HBL Debit Card.

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3 TERM DEPOSIT:

3.1) Advantage Account: Individual looking for short,


medium and long term investment opportunities with fixed
profit rate. HBL Advantage Account give you a flexible
investment product that provides multiple profit payouts and
tenures of your choice.

3. CONSUMER FINANCING:

HBL has moved aggressively and has already introduced three


major products.

 Personal Loan

 Auto Loan

 Home Loan

 Credit Card

HBL continue to develop its products, they recognize that


quality of customer service will become an even greater
differentiating factor in the market.

4.1) HBL Personal Loan:

From quality education to a grand wedding whatever your goal.


HBL personal loan help you fulfill your financial obligations
allowing you to choose your term of payment and borrow with

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ease. Pay processing fee on approval only. Repay tenures from
Rs.25000 to Rs.2000,000.

4.2) HBL Hone loan:

HBL Loan you get the sweetest deal whether you are
purchasing a new home, constructing one or renovating your
existing one. We offer find and variable markup rates as well as
a tenure ranging from 5-20 year.

Buy: This option provides financing for buying a new home.

Build: This option provides financing for construction on land


you already own.

Renovate: This option provide financing for renovating your


home.

4.3) HBL Car Loan:

HBL Car Loan makes it easy to purchase your dream car. With
up to 7 years to pay off your loan, HBL car loan allows you to
borrow for the car you desire keeping in mind budget. Choose
any type of car New, Used, Local and imported car. Repay
within a 7 years time period. Secured insurance at all the time
for peace of mind.

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5 BANCASSURANCE:

HBL-Pakistan's largest bank-with an extensive network of over


1500 branches and presence in over 25 countries around the
world has collaborated with Jubilee Life Insurance to offer
HBL Bancassurance products to its valued customers.

HBL offer following four form of insurance.

5.1) Hifazat:

Jubilee Life offers Hifazat through HBL. A person who are the
aged of 18 to 65 and who are interested in systematic saving to
protect their family future from uncertainty through insurance.
Minimum amount ranging from Rs.18000 a higher amount
depending on your capacity. Pay the premium yearly,
bi-annually,quarterly or monthly. For customer have a lot of
benefits family income benefits, accidental death benefit and
cash for hospitalization daily benefit(up to 3000 paid if you are
confined to b a hospital.

5.2) Amaan:

Jubilee Life offers Amaan through HBL. Amaan gives you


control over the future with the flexibility of selecting the
protection level and investment that best suits your needs and
acts as protective cover while you save for your retirement. If a
customer are 55 year and above there is a monthly pension for
life on you investment once the policy matures.

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5.3) Tabeer:

Jubilee Life offers Tabeer through HBL. Tabeer is a flexible


plan that provides life insurance cover and helps you save
regularly to ensure that your children's dream and future remain
secure. From higher education to marriage, from small wishes
to big dreams, you can empower yourself to help build their
future.Minimum premium amount of just Rs.24000 a year. In
addition to other benefits, Rs. 500,000 will be paid for the
marriage of the nominated female child, given that female child
is at least 18 years of age.

5.4) Hawwa:

Jubilee Life offers Hawwa through HBL. Women who want to


save and achieve financial empowerment. It is a saving and
protection based plan specifically designed for women. It
rewards and cares for you in good and bad times through the
different stages of your life. Minimum premium amount of just
Rs. 18000 a year. For customer have a lot of benefits family
income benefits, accidental death benefit.

5.5) Shandur:

Jubilee Life offers Shandur through HBL. Individual who have


high net worth and interested in high volume investment that
yield elevated profit. At Jubilee Life we know you work hard
for your money, thus expect it to work hard for you. Julilee Life
offers Shandur Plan through HBL, Pakistan's first ever life
insurance product that strives to meet the financial needs of

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high net worth individuals. Not only does it offer higher
allocations to your contributions, but your money will go even
further with a tax rebate. You also have the opportunity to
select a supplementary hospitalization benefit of upto Rs
15,000 per day. Jubilee Life together with HBL offers you a
unique product with a range of lucrative benefits.Minimum
amount of premium Rs.25000.

CASH DEPARTMENT:

The essential function of cash department out the bank is to get


money from customers and clients and in addition to pay them
through cheques. At the point when the money is gotten it is
stored with the bank.

A Cheques book is issued to the clients with the assistance of


which they can pull back money at whatever point they require
it. Cheque is a request attracted on bank to pay determined
measure of cash to the individual specified in the
request/cheque.

Following three types of cheques are as:

1. Bearer Cheque

The bearer cheque can be cashed the money for by holder of


the instrument who presents it at the counter for installment .In
such case no support is required.

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2. Order Cheque

In the event that the word bearer is struck off from the cheque,
it gets to be order cheque. It is encashable on the counter, yet
the holder must fulfill the bank that he is the correct man, if the
officer deem it important.

3. Cross Cheque

Crossed cheques are not payable in real money at the counter of


the bank, however can be gathered by just the financier who
might credit the returns. At the point when two parallel lines
are struck on the check confront and the word and co. are
composed in the middle of these two lines, this makes the
cheque cross.

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3. Clearing section:

Every Bank plays out the paying and tolerating limits. Cheque
are accumulated which are pulled in up to Banks for customers.
In like manner the cheque drawn on different Banks and spared
by Banks assert customers for social occasion inside the city is
know as clearing The components of tolerating and paying is
generally done through the clearing house.A clearing house can
be characterized as "A place where that agents of all Bank get
together to settle the receipts and installment of checks drawn
on each other" Clearing House gives the office which can
scarcely be abstained from particularly, if there should be an
occurrence of crossed cheques.

There are two main types of clearing.

I. Outward clearing

II. Inward clearing.

3.1) Outward Clearing:

It include those cheques and different instruments which are


sent by the Bank to the Banks for installment in the interest of
its own customers. Cheques are sent to clearing house careful
nearby primary branch.

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3.2) Inward Clearing:

The cheques drawn are called internal clearing drawn on Habib


Bank through its delegates. On the Bank introduced by
different Banks for installment it incorporates those cheques
and different instruments of Pakistan branches which different
Banks show at the clearing house.

CLEARING CHEQUES:

At the point when the payee and the drawer of cheque keeps up
account with

diverse Banks, the gathering Bank in any of the accompanying


techniques:-

a. It can gather money by sending its delegate with the cheques


to each of the paying Banks. It is less suitable.

b. The Bank keeps up a account with the paying Bank.

c. The cheques can be traded by illustrative of the different


Banks who meet at a settled time and at a settled place. This is
the most proficient strategy for gathering and paying cheques.

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4. Rimmitance section:

Remittance means transfer of money one place to another place.


It is two kind.

I. Inland Remittance

II. Home Remittance

Inland Remittance:

means to exchange of cash payable at a specific place inside the


nation. Inland can be delegated taking after.

I.I) Within Location:

When a branch situated in Gujrat is require to send draft to any


branch which is situated in same city this process is called
Within locality.

I.2) Outside Location:

Means the transfer of money of payable outside the city.

Rimmitance products:

Remittance is a easy and quick type of exchange money to


Pakistan by Pakistani’s living abroad. HBL Remittance
provides remitters multiple ways to send money to their loved
ones.

HBL FastTransfer

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HBL HumWatan

4.1) HBL FastTransfer:

HBL FastTransfer enables overseas Pakistanis to send


remittances to their loved ones in Pakistan. Our varied product
suite enables funds to be transferred easily and efficiently. The
free service is accessible in all HBL international branches, as
well as through our network of correspondents in Australia, UK,
United States of America, United Arab Emirates, Saudi Arabia,
Kuwait, Bahrain, Oman, Qatar, Malaysia and Canada. HBL
Peardes Card, HBL Direct Credit & HBL fast cash.

4.2) HBL HumWatan:

HBL offers overseas Pakistanis residing in foreign countries a


chance to open a current or a savings account in HBL Pakistan.
In addition to gaining an attractive rate of return on your
savings, HBL’s HumWatan account allows you to send money
safely and efficiently to family members back home.

Other services

Payment of Utility Bills:

Habib Bank also provides payment of utility bills services to its


valued customers.

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HBL Debit Card:

Debit cardholders. Your Card entitles you to discounts and


savings on your purchases at your favorite outlets. Thus, not
only do you enjoy convenience, safety and international
acceptability on your Card, but also you can save on your daily
purchases. So, make each shopping spree exciting by availing
Value offers at our partner shops and outlets.

HBL Credit Card

Habib Bank MasterCard opens a world of convenience for


customers. Be it shopping or traveling or medical expense,
HBL MasterCard sets customer free from the hassles of
carrying cash on hand.

It gives customers Convenience, security, affordability, cash


advance, balance, transfer facility and internet shopping.

Advance of HBL:

I. Over Draft

II. Cash Credit

III. Demand Loans

IV. Agriculture financing

V. Staff Financing

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1 Over Draft:

An overdraft is the right given by bank to its customer to pull in


excess of his present record up to a settled most extreme. This
office is normally given to exhibited undaunted customers. The
interest is charged recently on the negative alter in the
customer's record. For this office, bank has supported shapes
and in the wake of filling by the customer the bank researches
the application and the cash related enunciation, position credit
estimation of the client, starting there ahead, bank sanctions
overdraft. Over draft is helpful to both representative and
customer with the true objective that bank gains advantage or
premium and the customer similarly gets the benefits for his
business change.

2 Cash Credit:

Cash Credit is advanced to business cutting edge concerns


either against guarantees or hypothecation of stock and things
etc. The bank allows the business firm to get up to a particular
most remote point either in single sum or in bits.

3 Demand Loan:

IT is a whole deal credit, by and large advance made to the


borrower in solitary sum, for meeting the whole deal capital
necessities of the borrower. These are secured by swearing
bona fide estates property, plants, mechanical assembly, stocks,
and bonds et cetera. These are for the most part change credits
for setting up and making of organizations et cetera.

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4 Agriculture financing:

As Pakistan is an agro-based country and agribusiness is the


imperative section of economy. HBL furthermore makes
advances to this a portion of economy in two ways:

Creation Financing is made for the purchases of seeds,


pesticides and chemicals et cetera.

Advances are paid in particular sum, yet its traverse is short


one.

Change Financing is made with the ultimate objective of


getting property device, and progression of pointless landscapes.
This is whole deal office and is paid in segments.

5 Staff Financing:

HBL moreover give financing workplaces to its staff; help


them to fulfill their prerequisites. These credits are given for
different purposes.

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Chapter No: 3

FUNCTION OF HBL WHERE I DID MY


INTERNSHIP

What I learned during internship:

THE most essential thing that i learn is that the difference


between the practices of officers. And also take in more
administrative work of HBL as under.

Account opening section:

I spent the first three days in account opening section. As the


aera where I did my internship, the people are not
knowledgeable that is the reason at whatever point a person
will want opening a account than the manager alluded that
person towards me. Than I manage that person and the type of
opening a account will be filled by me and the whole legal
requirement are finished by me.

Clearing Section:

I also work in clearing section amid my work I learned out how


to gather the diverse chequces of various Banks. At that point I

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learnd out how these cheques of various Banks commonly
exchange. The delegate of UBL, ABL, BANK AL FALAH,
BANK OF KHYBER, and HBL was partaking and accordingly
shared exchange of checks was held.

Rimmitance Section:

I also worked in rimmitance .in rimmitance I learned out how


to change the cash starting with one place then onto the next
place. In this area I learned,

1: demand draft

2: online tranfer

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Chapter # 4

SWOT ANALYSIS
SWOT stand for strength, weakness. Opportunities and threats.
The purpose of this analysis is to build on company's strength
in order to utilize opportunities and counter the threats and to
correct the weakness. SWOT analysis is based on the
assumption that if managers carefully review such strengths,
weaknesses, opportunities, and threats, a useful strategy for
insure organizational success will become apparent.

Internal Analysis

Internal analysis of a firm is the analysis of its strengths and


weaknesses.

 Strength

Strength can be define as an area where a company is best


doing someting or a future that is the benefit for the comany in
camperion to it's competitors.

i. HBL is the largest bank in Pakistan now and people trust is


very high.

ii. A.T.M. Was introduced in Pakistan By HBL master card


facilities is also available to the clients.

38
iii. HBL has made huge investment in almost all the important
economic sectors of Pakistan. It has the largest branch
network all over the countries.

iv. HBL is a well established enjoy long history and profitable


operation.

v. HBL has professional and well trained staff.

vi. The branches are well furnished even in less developed


areas.

vii. HBL has been very effective in controlling costs as it


successfully restructured itself after its privatization.

viii. Frank behavior of employees toward customers.

ix. Focus on consumer banking.

 Weakness

Weakness can be define as an area where a company is not as


good at doing something as it's competitors or a thing which an
organization lack thus putting at disadvantage in comperion to
it's competitors.

i. Most of people do not know how they have to promote


their activities.

ii. Weak marketing polices.

39
iii. Bed Debt rate is very high no special effort has been made
to recover the bed amounts.

iv. Lack of customer feedback.

v. Lack of communication between bank and customer about


the term and condition of products and services.

vi. I observed that some customer facing problem to physical


visit the branch just to have bank statement.

vii. All Branch have not ATM system.

viii. Low rate of return on deposits.

External Analysis

A change in the external environment may be either an


opportunity or threat. The organization has to properly use it
strengths to avail the opportunities and avoid or minimize the
negative effects of threats.

 Opportunities

i. HBL should differeniate and increase it's deposit by


offering attractive rate of return on deposits.

ii. Use of new advertizing tecnhiques to spread awareness


different HBL products.

iii. New products like personal loans, mortgage and auto


leasing and cash management which diversify credit risk.

40
iv. HBL has the opportunities to promote the IT sector.

v. Customer feedback on different products and service has


really improved the bank performance and encourage the
atmosphare for other future policies.

 Threats

An area in environment that increase the difficulties the


organization's achieving high performance.

i. Facing more competitions by Government banks and


foreign banks.

ii. Increase rate of interest.

iii. Foreign banks are flourshing in consumer financing.

iv. Highly attractive and advance service by foreign banks to


their customers.

v. Political instablity effect the HBL policy.

41
Chapter #5

Analysis of Financial Ratio


Ratios are analytically ways that is used as through financial
analysis. Ratio can show the financial positioning of a specific
organization. , in a specific industry. The ratio analysis are the
balance sheet and firm’s income statement for periods to be
examine.
Financial ratios can be divide into the following parts:
1. Liquidity ratios
2. Debt ratios
3. Profitability ratios
Liquidity and debt ratio measure the risk. Profitability ratio
measure the return of the company.
Liquidity ratios:
Liquidity ratio of the organization measure the short term
obligation that is come to due. Liquidity is also solvency of the
organization.
Following two part that is included in Liquidity ratio:
I. Net working capital
II. The current ratio

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43
44
OBSERVATION:

The essential thing that i learn is that the contrast between the
practices of authorities. I spent the first two weeks in record
opening segment. The bank where I did my entry level position,
the general population are not knowledgeable that is the reason
at whatever point a man will desire opening a record than the
chief alluded that man and lady towards me. Than I control that
individual and the type of opening a record will be filled by me
and the whole lawful necessity are finished by me. Next week,
I also learn about remittances section in remittances section I
learned how to transform the money from one place to another
place. Last weeks, I also learn about clearing section during my
work I learned how to collect the different cheques of different
Banks.

The branches are staffed with regularly old agents, who can do
routine works wonderfully however there is nonappearance of
new musings or these delegates needs moreover planning.

Employees are deficient with regards to inspiration, because of


dread of scaling back. Top Managment is having a considerable
measure of impact in all basic leadership and as a rule don't
counsel the lower level. In advances division, the handling of
advance is exceptionally extensive, which is issue for business.

The Manager or leader at oper level have more experience as


compare to branch manager about management and
communication.

45
CONCLUSION:

The HABIB bank which was set up in Bombay in 1941 with a


paid up capital of Rs 25,000 just, was moved to Karachi, it was
enlisted as a business entity for carrying on a wide range of
managing an account exercises.It has been biggest endorser of
the Pakistan govt. and commonplace government's advance and
treasury bills, yet with the progression of time it turns out to be
all the more ambitious in the credit field.

The managing an account arrangement of Pakistan was


seriously upset quickly after freedom. Fiery endeavors were
made to restore the framework, with the Habib bank assuming
an essential part in the plan of re-association of business
keeping money.

The bank was nationalized in 1974 and from that year onward
& to date is operating as a public sector institution.

This has been giving credit offices to various areas at sponsored


rates under different courses of action. Send out fund, nearby
fabricated apparatus, government getting for ware operations,
required generation credit to little agriculturists and direct
mechanical venture. The bank has been giving one window
financing office to meet the neighborhood and remote cash
necessity of the modern activities and therefore ended up being
an effective vehicle to change the administration arrangement
of fast industrialization into reality.

46
As a responsibility of using the various foreign currency credit
lines, provided by the World Bank & Asian Development Bank,
the bank has been discharging its obligation in a manner
satisfactory to the financing agencies & to the best interest of
the country.

In the conclusion one can say that the Habib bank has played a
big role in the creation & development of the country.

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RECOMMENDATION:

Recommendation I suggest

I will give following suggestions for the better function of the


Bank:

1. The management should provide better arrangement for


the employees.

2. The daily newspapers and journals should be provided


to the employees and customers visiting there.

3. Separate cabins of all staff should be there.

4. Use of new advertising techniques to spread awareness


different HBL products.

5. To motivate the employees their compensation/salaries


to be made at standard with top level Banks.

6. HBL should b introduce online banking in all branches.

7. Employee’s introduction promotion and transfer should


always be made on merit.

8. The attiute of the banker with the majority of their


customer is not the same; they give careful
consideration and great support of a portion of the
clients and disregard a noteworthy segment of them. A
portion of the clients way to deal with the bank official
and complete their work before others; it is not a decent

48
practice. Every one of the customer treated with
similarly.

References:

http://www.hbl.com

www.habibbankltd.com

From previous reports

Mr. Shamas Branch manager of HBL haji Wala branch

http://www.google.com

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