khalil ullah - report final

7/27/2019 Khalil Ullah - Report Final

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HBL 2010

Executive Summary

I have completed my 6 weeks internship in HABIB BANK LIMITED. I tried my best to

gain something practically from this opportunity. This report starts from the

introduction of word Banking, and then History of HABIB BANK LIMITED. History of

HBL shows that how it helps its Nation and Country in both war & peace. the first

Pakistani bank .Bank Mission statement & Vision shows its focus on overall

performance of the bank and quality of services and products.

After restructuring of the bank the objectives of the bank are changed. Now it has

objectives to overcome past mistakes, realize the real importance of customer so

now it has main objective to achieve customization.

A commercial bank has basic functions that are must be performed by them as a

bank i.e.

1. Accept money as deposits.

2. Investing deposits to earn profit.

3. Miscellaneous functions.

Each branch of the bank is divided on the basis of these functions into different

sections. Deposit section opens different accounts of clients and maintains record

of deposited money from the customer & credited it into his account. It also

maintains record of payment to the customer when he presents cheque. Advances

section deals the customers who demand loans against required security.

Remittance & collection section deals customers who want to transfer or collect

their money from/to other city. Bank also provides facility of L.C to support export

and import in the region.Flexi is the new product of Habib bank for the employees.

All branches are now interconnected with head office through internet.Total

numbers of branches are 1473 and number of employees are 16625.Bank shows

improvement after the privatization.

Department of Management Sciences - IUB 1


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Simex system is very good but misused by staff due not proper training.SWOT

analysis of Habib Bank shows that it has small number of strengths and lot of

weaknesses and threats. The bank should give attention to this drawback.But bank

has lot of opportunities to improve its quality of services, and do efficient banking.

Bank should give proper attention to overcome its threats.Banks profit has been

increased as compared to previous years.



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INTRODUCTION OF THE

ORGANIZATION



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COMPANY INTRODUCTION

COMPANY DESCRIPTION:

Habib Bank Limited is a Banking Company, which is engaged in

Commercial & Retail banking and related services domestically

and overseas.

WHAT IS BANKING COMPANY?

Section 5 of banking ordinance 1962 says that Banker means a person

transacting business of transacting the business of accepting, for the

purpose of lending or investment of deposits and withdrawals by Cheques,

drafts, orders of other wise and include any post office saving bank.

COMMERCIAL BANKING:

Commercial banks are profit seeking organization. They have been themost effectively mobilize the savings and have been providing short-term

requirements of businesses. They help in internal and external trade of

the country.

FUNCTIONS OF COMMERCIAL BANKS:

Today there are more than 7000 branches of commercial banks along with

an established network of supplementary financial institutions.

The function of a modern commercial bank can be divided under the four

headings as:

I. Accepting of deposits.

II. Advancing of loans.

III. Agency service.

IV. General utility service.



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ACCEPTING DEPOSITS:

The primary function of a bank is to receive surplus balances from

individuals, firms, public institutions and government etc and honor

Cheques drawn upon it. Three types of deposits are

Current or demand deposits

Saving deposits

Fixed or term deposits

ADVANCING OF LOANS:

The most important function is to provide loans to individuals, firms,

business concerns and government bodies against securities to meet

their financial needs at a fixed percentage of interest. these are some

kinds of loans: Loan to business

Loan to real estate mortgage

Consumer loan

Loan for purchasing security

Loan to agriculture

Bank investment for security

AGENCY SERVICES:

The commercial bank provides following agency services to its

customer

Collection and payment of Cheques

Collection of dividend

Purchase of securities



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Execution of standing orders

Acting as trustee or executer

Make transfer of funds

Act as an agent

GENERAL UTILITY SERVICES

Commercial bank performs general utility services as follows

Foreign exchange business

Act as referee

Accepting of bills for collection

Issuer of travelers Cheques

Supplier of trade information



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HISTORICAL PERSPECTIVE

History of the Company:

Habib Bank Limited was incorporated on 25th

August 1941 by ISMAILHABIB (LATE). Habib Bank inaugurated its operations with the banks first

branch in Bombay. It was the first Muslim bank of the sub continent. It was

established with a paid up capital of Rs.2500, 000. At an early stage the

number of branches was only 12.

In 1947 Karachi saw its first commercial bank of the newly formed Islamic

Republic of Pakistan, when the bank shifted its head office there. And

build the largest private sector bank that controlled an estimated 27% of

total bank deposits in the country and hand over 500 branches including

many overseas. Although primary functions were banking and finance, but

it moved to industry by the late 1950s and developed interest in sugar,

jute and textile.

HABIB BANK operated in the private sector until its nationalization in 1974

under the Bank Nationalization Act 1974. Thus the holding of Habib group

was lost. Throughout the decades, HBL has held the mantle of a dynamic

leader, by adding value to the lives of its customers. HBL has been

approved for privatization and the privatization commission has selected a

Financial Advisor to prepare a comprehensive plan and assist in the sale

process. The government has appointed a professional management team

to restructure the bank and to recover and clean its doubtful and

classified portfolio.



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It was HBL that introduced products such as Credit Cards, ATMs, Travelers

Cheques, etc., to the Pakistani market. We at Habib Bank cater to the

needs of millions with our quality products & services.

Todays HABIB BANK:

Today Habib Bank is truly the bank of the people, providing its customersconvenience and satisfaction all over the world. Habib Bank Plaza, the

tallest building in Pakistan, is the proud symbol of HBLs

leadership in Pakistans corporate arena.

Today, HBL has more than 1473 branches all over Pakistan and presence

in 26 countries across five continents. With a revamped customer oriented

philosophy, we are pursuing new avenues of leadership through

innovation, as it gear up to face the challenges of the new millennium.

Operational Structure:

Habib Bank Limited is one of the largest commercial bank of Pakistan. It

accounts for a substantial share (20%) of the total commercial banking

market in Pakistan with a network of 1473 domestic branches; 55

overseas branches in 26 countries spread over Europe, the Middle East,Far East, Asia, Africa and the United States; 3 HBL wholly owned

Subsidiaries namely Habib Bank Financial Services (PVT) LTD. Karachi,

Habib Finance International LTD.

(Hong Kong) and Habib Finance Australia Ltd. Sydney; 2 Joint Ventures

namely Habib Nigeria Bank Ltd. (40%) and Himalayan Bank Ltd. (20%)

and 2 representative offices in Iran and Egypt.



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COMPANY INFORMATION

REGISTERED OFFICE:

Habib Bank LimitedHabib Bank Plaza1-1Chundrigar RoadKarachi - 75650Pakistan

HEAD OFFICE:

Habib Bank Plaza1-1Chundrigar RoadKarachi - 75650PakistanPhones: 2418000(50 lines)Fax: 2411647Telex: 20086-20751 HBANK-PK

AUDITORS:

TASEER HADI KHALID & Co.Chartered AccountantsSh. Sultan Trust Building No. 2Beaumont RoadKarachi 75530Pakistan

A.F. Ferguson & Co.Chartered AccountantsState Life building 1-C



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1.1 Chundrigar RoadKarachiPakistan

BOARD OF DIRECTORS

ZAKIR MEHMOOD PRESIDENT & CHIEF EXECUTIVE

SULTAN ALI ALLANA CHAIRMAIN

SAJID ZAHID DIRECTOR

AHMED JAWAD DIRECTOR

SIKANDAR MUSTAFA KHAN DIRECTOR

MUSHTAQ MALIK DIRECTOR

MOEZ JAMAL DIRECTOR



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MANAGEMENT

NAME DESIGNATION

Zakir Mehmood President & Chief Executive

Sohail Malik Chief Risk Officer

Jamail Iqbal Chief Compliance Officer

Global Compliance

Sima kamil Head Corporate and

Investment Banking

Ayaz Ahmad Chief Information &

Financial officer

Nauman K. Dar Head-International Banking

Abid Sattar Head-Retail & Consumer

Banking

Mudassir H. Khan Head-Global Operations



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Faizan Ali Mitha Global Treasurer

Salim Amlani Chief InternalAuditor

Aslam Gadit Head-Remedial Assets

Mirza Saleem Baig Head-Learning & Development

Tulu Islam GM-Business

Continuity Planning

Muhammad Aslam Head-Islamic Banking

Dr. Razi Azmat Head-Human Resources

Abdur Rashid Awan Business Head-Semi

Urban Areas

Aman Aziz Siddiqui RGM-GULF

(UAE, OMAN)



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MISSION, VISION STATMENT

AND

OBJECTIVES

MISSION STATMENT



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The main logo of the bank shows a picture of a lion with a sword on the

top on the up most Portion BISMILLAH is written to show the supremely

of God and the symbol of lion shows the Quality of leadership that lieswith the bank. The reason for the statement the power to Lead.

As the bank has entered the new millennium, it wishes to appear as a

bank that is

LEADING LOCALLY AND GROWING GLOBALLY

MISSION STATEMENT OF HABIB BANK IS TO MAKE

Habib bank the dominate financial institution in Pakistan and a leading

bank of the Middle East and South Asia regions

Vision Statement



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Enabling people to advance with confidence and success Our vision is to

be the frontline financial institution of the country, with specific financial

markets to gain a competitive advantage with complete banking products.

Our focus is on improving performance in each of our businesses to

achieve consistent and superior returns for our highly valued clients and

stakeholders.

OBJECTIVES:



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The bank main aims to provide better and efficient services to its

Domestic and overseas customer .regarding the need for improving the

financial Performance of the company, following objective have beenchalked out.

To take necessary steps to plug the leakages of revenue and

expenses.

To insure internationally accepted accounting standard are followed

by the bank

To correct the structural flaws in the balance sheet

To put greater focus on neglected sectors to correct sectored

imbalances in the loan portfolio.

To achieve those objectives necessary steps have been taken by the

management loss making branches have been closed or merged.



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MARKETING OBJECTIVE:

To devolved country specific business revitalization strategies for

important franchise to improve overseas operations.

To develop more branded proudest in saving deposits and consumer

assets.

To increased the ATM network to further improve the banks market

shears.

To establish sound relationship with top industrial groups and

various multinationals.

To make the bank customer focused.

To launch innovative product as which cater to the needs of

different segments of the markets.

To increased the number ofON LINE branches



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HRM OBJECTIVES:

Toprovide extensive training to employees in process ,products,

marketing and selling skills introduced.

Upgrading skills levels of staff.

To implement a performance appraisal process to provide

motivation and a merit oriented culture in the bank.



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DEPARTMENTAL LEVEL STRATEGEIS



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1. Strategies of Marketing Department

More branded products should be launched in saving deposits and

consumer assets.

ATM network should further be increased to up the market share..

To establish sound relationship with top industrial groups and various

multinationals.

Customer should be given more importance.

To launch innovative product as which cater to the needs of different

segments of the markets?

To devolved country specific business revitalization strategies for

important franchise to improve overseas operations.

ONLINE branches should be increased more and more.

2. Strategies of HRM Department

To implement a performance appraisal process to provide motivation

and a merit oriented culture in the bank.

To provide extensive training to employees in process, products,marketing and selling skills introduced.



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Upgrading skills levels of staff.

ORGANIZATIONAL STRUCTURE



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ORGANIZATIONAL STRUCTURE

Ownership Structure

Shareholder Percentage (%)

State Bank of Pakistan 73.047

Islamic Republic of Pakistan 0.783

Agha khan foundation for economic development 26.00

State Life Insurance Corp. of Pakistan 0.138

Other Public Bodies 0.05

Outstanding Shares (1,217,849,500) 100

ORGOGRAME

PRESIDENT

SENIOR EXECUTIVE VICE - PRESIDENT

VICE- PRESIDENT


VICE- PRESIDENT

ASSISSTANT VOICE PRESIDENT

OFFICER GRADE I

OFFICERR GRADE

OFFICER GRADE III

CLERCK


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VARIOUS DIVISION AND

DEAPARTMENTS

OF THE BANK



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DOMESTIC OPERATIONSFor facilitation of domestic operations the retail banking group and the

corporate institution banking group is divided in to several distinct

regions, centers and sub centers comprising of

23 Regional Headquaters

20 corporate centers

1473 branches

OVERSEAS OPERATIONS

For the facilitation of the overseas operations the bank has

55Branches

02 affiliations

01 Representative office

02 subsidiaries



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ACTIVITIES/DEPARTMENTS OF BANK

The main departments of a bank are as follow;

1. Deposit department

2. Accounts department

3. Advances department

4. Clearing department

5. Bills and remittances department



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1) Deposit DepartmentThe function of deposit department is to collect cash from the customers and to

deposit it into the accounts, maintained by them. Their classification is basedonduration and purpose for which the account is maintained. The following typs of

accounts are maintained for this purpose.

a) Current account

b) Saving account

c) Fixed account

A. Current accountA current account is a running account is a running account which is

countiniously in operation, by the customers on all working days of the bank.

The customers can withdraw the amount from the bank without prior notice.

The bank usually donot pay any interest on these deposits as they can withdraw

without notice.

These accounts are operated normally by the traders, business companies,

institutions, public service bodies, industrialists etc. Summing up, the current

account does not earn but serves the cause of industry, trade and commerce.

B. Saving deposits accountThis type of account is for those persons who want to make small savings. The

depositors are allowed to withdraw a limited amount of money for twice a

week.

The banks will keep a minimum account and the balance be safely utilized

forinvestment by the bank.

The bank pays interst on saving bank accounts according to the prescribed rates

by the centeral bank of the country.



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C. PLS saving accountIn pakistan (PLS) saving account was introduced in January ,1982.The bank has full right to investment of credit balances /deposits in the PLS

saving account The statments of accounts willbe supplied on periodical

intervals.

The following informations are required to be furnished1. Name

2. occupation and full address

3. Specimen signature

4. Introductory refrences

5. Declaration that he will follow them

D. Fixed or time deposit

Fixed or time deposit are the major source of funds of a commercial bank.

The rate of interest on fixed deposits is higher them that of saving deposits

and it varies with time to time. The longer the period for which the amount is

kept higher is rate of interest. The fixed deposit receipt (FDR) is marked as

not negotiated. The holder of time deposit account cannot issue cheque for

the withdrawl of the amount.

E. Joint account

A joint account is a special bank account which is opened in thename of two or more persons. For drawing amount all persons

whose name the account stands should sign the cheque.In case of

firms or companies a/c following are the requirement

To open the account of firms or companies the following are theessentials.

List of the office bearers.

List of authorizedsignatures.

Copy of memorandum or by

laws.

Copy of registration.



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In case of joint stock

companies.

Certificate of incorporation.

Certificate of

commencement of

business.

Beside NIC copies.

2. Cash Department

The cash department is the most important department of the bank. It receives

cash from customers and then deposit it into the accounts of the customers and

maintained their balances.

In cash department following books are maintained..

a.Cashier module (online branch)

b.Paying cash book

Cashier module (Online Branch):

When cash is received at the counter it is recorded in the

computer.

Journal Report Of Cashier (JRC)

All receipt and payment report of cashier.

Paying cash book:

The cashier makes entry in the paying cash book when cash is paid is

allowed only in current account. The overdraft facility enables a customer

to draw over and above his own balances up to the extent of limit as

agreed. The bank does not provide the facility of overdraw on checking

accounts to all of its customers



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3. Accounts Department

There are two ways of maintaining an accounts

Journal System

Under this system entries are journalized in journal book and then

posted in ledger account. Their entries are maintained in journals.

Voucher system

In voucher system for each transaction voucher is prepared, either in

cash or in transfer or in clearing all vouchers are summarized to the

one consolidated figure and are recorded in cash cum- daybook

sheet upon which vouchers are summarized according to the

transition wise suit is called supplementary.

These are of 2 types.

Debit supplementary

Credit supplementary

Debit supplementary is for debit vouchers and it is of red color

Credit supplementary is for credit vouchers and it is of green color.



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It is not safe for private individual to keep their surplus money at home.

They can keep their money in safe custody by opening accounts in a

bank. They can open deposit accounts for fixed period. The deposit

account also earns interest for the depositors. Again the businessman

conducts transaction is for thousands of rupees daily. It is unsafe to keep

so much cash in hand for carrying on business transactions. They may put

their money with some banks by opening deposit accounts. Now they can

draw cheques for settlement of transactions without involving cash.

Procedure of Opening of an Account:

There are certain formalities which are to be observed for opening of a

current account or saving a/c. With a bank, these formalities are as;

1) Request of opening of an account.

2) Obtaining introduction

3) Specimen signatures

4) Minimum initial deposit

5) Operating the account / cheque book

1) Request of opening of an account.

The customer has to fill an account opening form. It is a formal request by

a customer to the bank to allow him to have and operate the current or

saving account.

2) Obtaining introduction.

The bank before opening an account obtains introduction of the customers

from an old customer, responsible person etc.

3) Specimen signatures.



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When the banker satisfied about the informations provided in the form

hen the banker obtains the specimen signatures of the customer on the

signature book or on card. The duty of a banker is to verify customers

signature on the cheques with his specimen signature in order to

ascertain whether there has been any forgery or fraud.

4) Minimum initial deposit.

In Pakistan to open up an account in the PLS account is up to Rs.1000/- it

is the minimum requirement. However the account of zakat dependent

can be opened by Rs. 200

5) Operating the account./ cheque book.

When the account is operated the banker gives a pay-in-slip book,

cheque. Book, pass book with the view to operate it.

Books relating to customers.

Pay-in-slip

Cheque book

Pass book

Pay-in-slip

When money is to be deposited in the bank the pay-in-slip is to be

filled, the object of this book is to provide the customers with the

banks acknowledgment for receipt of money to be credited his

account.

Cheques book.

A cheque book contains a number of cheques which is given to acustomer upon written request and after making payment for the



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cheque book. It enables to a customer to make withdrawals from his

account.

Pass book.

Is a copy of customers account as it appears in the books of the bank.

Pass book is a book in which the banker maintain the record of its

customers account for later use. This because it passes hand

periodically between the banker and the customers. On delivery of

pass book the customer examine the debit and credit eateries with its

cheque book and bank receipt challans. But now a days this concept of

pass book is ended and computerized account statement send to the

customer semi annually or on the demand of customer bank is

bounded to give him the account statement.

4. Advances Department

The function of advances department is to lend money in the form of

clean advances. Against promissory notes, as well as secured

advances against tangible and marketable securities. The bankers prefer

the securities which are free of risk of depreciation.

Deposits lead to advances and advances create deposits. Advances to a

variety of customers are the sure method of enhancing income and

promoting expansion of a bank.

Types of advances:

The main types of advances are as follow.

1). Overdraft.

2). Cash credit.3). Loans.



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1) Overdraft.

An overdraft is the right given by a bank to his customer to draw in

excess of his current account up to a fixed limit. .The facility to

overdraw by cheques is allowed only in current account. The

overdraft facility enables a customer to draw over and above his

own balances up to the extent of limit as agreed. The bank does not

provide the facility of overdraw on checking accounts to all of its

customers.

A. Clean overdraft.

Advances for which the bank no security except the personal

security.

B.Secured overdraft.

Advances for which bank has security other than his personal

security. Against ien on third party account. Against immovable

property, equitable mortgage collateral.

C.Cash finance.

Cash finance may be allowed within discretionary powers of the

branch managers to first class parties keeping in view their

credit worthiness, overall business and average balance

maintained in their account.

2) Cash Credit

A cash credit is an arrangement by which a banker allows a customer

to borrow money up to certain extent cash credits are usually made

against securities of commodities hypothecated or pledged with the

bank.

Pledge:



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Pledge is a contract whereby a good is deposited with the lender as security

for repayment of the loan. The delivery of documents of title relating to

goods also create a valid pledge. The person delivering the goods as security

is called pledger. The person to whome the goods is delivered is called the

pledgee.

Hypothecation:It is a legal transaction where by goods may be made available as security

for a debt without transfering property or the possession to the lender.

Advances granted under hypothecation are not secure from safety point of

view. The bank should make sure that the party has a good reputation, which

property regularly.

3)Loans

Banks may make advances to its customers which may be payable in

lump sum or in installments. Loans may be.

A) Clean Loans

This is granted to borrowers without obtaining any security.

Example flexi loan

B) Secured loans.

Loans for which bank has security other then its personal

security. These are issued against the pledge, hypothecation,

property and cash etc.

C) Small loans.

These are the loans which are sanctioned for small size projects.

The loans may be call loans or loans repayable at short notice.

These are the loans repayable which bear no maturity date.

They can be paid at anytime. These are normally secured byother assets.



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The other kind of loan is loans repayable at short notice; these

are short term loans and are repayable at short notice. These

are widely used in the financing of seasonal increase in theworking capital and the temporary financing of capital

expenditure these loans are obtained by manufacturing

concerns to meet the financing of working capital expenditure.

D) Flexi loan

A special scheme of Habib bank limited for the employee of

govt. and semi govt. institute. This is a clean loan no anysecurity has been taken from the employees of the organization.

Just salary of the employee is transferred in the account of the

client

Basic requirements for the flexi loan

He must be employee of listed organization

He must be account holder of the bank

His salary is transferred in his account

His job at least one year

His retirement period is grater then the period of loan

Document required for flexi loan

Letter from employer

His last month salary slip

His account statement

60 post dated cheques



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Promissory notes

Rate of mark up on flexi loan

The rate of mark up is 25%(fresh case)

Other 20% to 21

5. Clearing Department

Clearing house is the place where representative, of all banks get

together for the purpose of offsetting the interbank indebtedness arising

from the transfer of deposit by a customer of a particular bank to another

bank

Clearing settlement is made by debiting or crediting the bankers

accounts, the daily difference in the clearing between banks may

considerable and much differences are adjusted by mean of debit and

credit entries in the respective accounts with is SBP, by book entries.

Functions of clearing Department:

The following are the main function of clearing department

1) To accept transfer delivery and clearing cheques from customer of thebank and to arrange for their collection.



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2) To arrange the payment of cheque drawn on branch and given forcollection to any other branch of HBL or any other member or sub member

of the local clearing house.

3) To collect amount of cheque drawn on members, sub members of the localclearing house, sent for collection by thouse HBL branches which are not

represented at the local clearing house.

Procedure of Clearing at Clearing House:

The mechanism of offsetting inters bank indebtedness operators as

follows; Clerk representing various banks met at a common plane, the

clearing every day. Every clerk then delivers to the others the cheques

and other claims which his bank holds against them. So he also receives

from the others the claims which their respective banks hold against his

bank. Cheques and other documents dishonored will be returned to the

representative of the respective bank. The various amounts of receipts

and deliveries are now added up an balance is struck therein and the final

settlement is effected by the supervisor of the clearing house by

transferring balances kept at the central bank the these various clearing

banks.

6. Bills and Remittances department

The main function of bills and remittances department is to deal mainly in

following.

A. Outward bills for collection (OBC)

B. Inward bill for collection(IBC)

Procedure of clearing at clearing house

A. Outward bill for collection



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1. Clean Bills

These are negotiable instruments drawn on out station branches of

the bank, sent for collection on behalf of the customers i.e. cheques

drafts etc.

2. Documentary Bills

These are bills accompanied by documents such as R.R, T.R bill of

lading etc having title, collected on behalf of their customers. if

payment is made other than cheques then this mode is used. it is an

arrangement between 2 parties. Banks plays role as an agent.

Documentation is properly drawn between 2 parties. But in 99 cases

clean bills are used.

B. Inward bill for collection

These are bills received locally. They are received from out station

branches of the bank and parties drawn on recipient banker or other

banks or parties.



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The Main Documents Invited in Bills and Remittances

Department:

1. Demand draft2. Pay order

1. Demand Draft

Demand draft is an instrument which is drawn by one branch to another

branch of the same bank. If any person wants to make payment from one

city to another city then he can make payment through demand draft.

Bank charges a commission for performing this kind of service according

to bank rate schedule which is revised after 6 months. Demand draft may

be issued or paid.

For payment of internal expenses of the bank the pay slip is used. For e.g

tax payment, by bank, repair and maintenance expenses, repair and

maintenance expenses etc.

2. Pay order

pay order is just like a cash. If someone want to make payment to some other

person he can make payment through pay order slip. The main advantage of pay

order is that it can not be dishonour by the bank when payment is required to

made within the city then we can take this bank service and when we want to make

payment outside the city then we use demand draft in case of cheque there is a

possibility that it can be dishonour by the bank but it case of pay order we have

surity that it can never be dishonour.



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MISCELLINEAOUS FUNTIONS OF ALL

DEPARTMENTS



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ON LINE BANKING

Many branches and checking accounts Habib Bank Limited are linked

through satellite. It provides the facility of transaction with each branch

while sitting on any branch of Habib Bank.

On Line Transaction are of three types:

Cash Transaction

Clearing Transaction

Transfer Transaction

The clients can shift their amounts from one branch to another branch.

Their cheques can be cashed. On line banking is miscellaneous activity

that is performed in almost all the department of Habib Bank.

Charges for inter branch in line transitions

No charges from the customer maintaining freedom account

accounts otherwise charges will be recovered according to the

schedule

The charges of online made to the individual are Rs.350 and to

the any educational institution are Rs.50 only.



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Lockers

One of much appreciated facility offered by a bankers to his customer is

that of keeping in safe custody, valuables if various kinds, including

securities, and documents of title of property. Frequently such items

deposits in a locker box or sealed envelope, in which case the bankertakes no cognizance of the contents. A part from providing the facility for

accepting the valuable for safe custody, safe deposit lockers are also

made available to customers on nominal rent.

Documents required for a locker facility:

Locker opening form.

Specimen signature card.

Copy of NIC of the client.

SAFE DEPOSIT LOCKERS CHARGES:

Fee for safe deposit lockers to be recovered in advance or at the

commencement of the period yearly/half yearly/ quarterly as the case

may be.

Small size Rs. 2900 per annum or nil on refundable key.

Medium size Rs. 3900 per annum or nil on refundable key.

Large size Rs. 2,500per annum or nil refundable keys.

Breaking charges Rs. 2,000 per locker plus actual charges of

supplier.



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Internet Banking

Habib bank Limited has offered on line banking which is an innovative and

truly global product to its customer. Thus enables them to check theirbalance, view their account ststmant, can transfer their fund.

Automatic Teller Machine

Habib bank has introduced ATM (automated teller machine) in Pakistan for

its customer. Electronic cash dispensing facilities are available in various

cities. in due course of time,it plans to install more ATMS and extended

this on line facility to other operating centers of the bank. All these ATMS

are linked through a state of- the- art satellite based communication

system offering real time 42- hour service. ATM card is a debit card and

cash withdrawal transition are performed with its used as well as

customer can check balance and have its account statement. By using

this card a client can with drawl the amount from 500 to 20,000 rupee in

42 hours.

In order to get an ATM card

Customer should be an account holder

Application from is filled

Speacmain signature card is filled



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Application is forward to head office .Within to 10-15 days bank

receive the ATM card and pin codes and hand it over to the

respective customer after taking his signature. Bank charges are Rs.

200 per annum

Working of ATM Card:

When client enters his card in machine, it asks for the pin code. If he

enters a wrong pin code constantly three times, then machine captured

the card. This secured the transition .this increased the safety of the

customer card. After the client has given a correct pin code, he can safely

perform his transition. After getting the amount from ATM machine

customer get a small statement of his account which contains the

following

Pervious balance

Transaction amount

Current balance

Date

Time of transaction

Account number

Name of customer

ATMS AVAILABLE FOR HABIB BANK CUSTOMER

Habib bank Limited has arrangement with other bank to use their ATMS

where Habib bank ATM is not available. When a client uses an ATM of



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HBL 2010

these other banks, Rs. 15 per transition are deducted from his account as

ATM charges.

CREDIT CARD

Habib Bank offers a range of credit cards, accepted at thousands of

locations in Pakistan.

These cards facilitate the small financial, needs of customers like

shopping of goods or any short term financing. Limit of credit card

depends on the average balance in the account and monthly income. One

of the requirements to issues credit card is that the applicant should bethe account holder of the bank.

Documents Required for Credit Card

Application form of credit card.

Photocopy of national identity card.

Passport size photograph.

Salary certificates.

Last six month income certificate.



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RATIO ANALYSIS



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1. ADVANCES TO DEPOSITS RATIO

ACCOUNTS

2005 2006 2007 2008 2009

ADVANCES

316881635

349432685

382172734

456355507

454662499

DEOSIT 432545165

459140198

531298127

597090545

682750079

Ratio(%)

73.25 76.10 71.93 76.42 66.59

GRAPHICAL EXPALINATION



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INTERPRETATION:

This ratio shows the relationship between total deposits and the advances

by the bank. It shows advances of the bank as compare to the deposits.

This ratio is very high in 2006 and 2008 i.e. 76.1% and 76.4%, so we can

say that in these particular years the bank position is sounder. It means

the bank is giving more and more advances in these years. This showsthat advances are increasing than deposits which, is good for bank. We

can see that this ratio is very low in year 2009.The bank is not able to

utilize the increase in deposits due to which the ratio has fall.

2. CASH TO DEPOSIT RATIO

ACCOUNTS

2005 2006 2007 2008 2009

CASH 64864562 82275526 82508368 95840455

120206523

DEOSIT 432545165

459140198

531298127

597090545

682750079

Ratio

(%)

14.99 17.92 15.52 16.05 16.60



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GRAPHICAL EXPALINATION

INTERPRETATION:

This ratio shows the relationship between the cash and the total deposits

of the bank. It shows the fluctuations. It has increased in year 2006, but

decreased in year 2007. The decreased in this ratio is a good sign

because it shows that bank is utilizing its deposits in better way by

investing them in securities and by advancing to the customers.

3. EQUITY TO DEPOSIT RATIO

ACCOUNTES

2005 2006 2007 2008 2009

EQUITY 32031197

45177664 55063125 71280902 75133715



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DEPOSITS 432545165

459140198

531298127 597090545

682750079

RATIOS% 7.40 9.83 10.4 11.93 11

GRAHICAL EXPLAINATION

INTERPRETATION:

This ratio is increasing from year 2005 to 2008. This ratio shows the

relationship between the total equity and the total deposits of the

customers. This ratio has been increasing in all coming year. It means that

its equity is more than its deposits. The bank is focusing on equity rather

than utilizing its deposits in risky assets.

4. DEPOSIT TO TOTAL LIABILITY RATIO



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HBL 2010

ACCOUNTS

2005 2006 2007 2008 2009

DEOSIT 432545165

459140198

531298127

597090545

682750079

LIABILITIES

488406055

536848102

628754092

682747953

779408823

Ratios % 88.5 85.6 84.5 87.45 87.6


INTERPRETATION:

Every reputed bank tries their best to capture more and more deposits.

And in order to facilitate its further they offer different schemes to

customers. As a result of greater deposits Bank can be in the position to

advance more and more which is the major source of income. This ratio is

very high in the year 2005 and it shows decreasing trend in 2006 and

2007 and it is very low in 2007. In 2008 due to more stable government

and opening of new branches, the deposits are increasing at a greater



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HBL 2010

rate which is a good sign for the overall performance of the bank and also

increased in year 2009.

5. EQUITY TO ASSET RATIO

ACCOUNTES

2005 2006 2007 2008 2009

EQUITY 32031197

45177664

55063125

71280902

75133715

ASSEST 508329619

559565687

643026585

724959955

806792668

RATIO % 6.3 8.07 8.6 9.8 9.31


INTERPRETATION:

This ratio shows the relationship between the equity and the total assets.

It is highest in the year of 2008 and lowest in the year 2005. If we see it

overall this ratios shows increasing trend, which means that the Companyworth is very sound and therefore the price of its share in the market



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HBL 2010

increasing. In 2007 due to changing political situation, and different

military operations in the country shakes this ratio in 2007 but this ratios

again shows stability in 2008.

6. ADVANCES TO ASSET RATIO

Accounts

2005 2006 2007 2008 2009

LOANS 329153883

355982813

383800864

462549294

460015372

ASSET 528893905

590291468

691991521

757928389

863778621

RATIO%

62.2 60.3 55.5 61.02 53.25


INTERPRETATION:



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This ratio shows the relationship between the amounts of total advances

to total assets. There was decreasing trend till year 2007 and then

increased in 2008. This ratio shows continuously shows up and down

trend throughout the last five years. This ratio was very low in 2007 but it

starting to show increasing trend 2008. There is again fall in this ratio in

the year 2009.

7. RETURN ON EQUITY RATI

ACCOUNTES

2005 2006 2007 2008 2009

NETPROFIT

9563303 12700315

10084037

15614020

13400749

EQUITY 32877998

45177664

55063125

71280902

75133715

RATIO% 29.1 28.11 18.31 21.90 17.83


INTERPRETATION:



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Comparison of total profit of the bank with the total equity of the

shareholders this is known as Return on Equity. ROE measures overall

efficiency of a company in managing its total investment in assets and

return to its shareholders. It is primary measure of how well management

is running the company. From the year 2005 to 2007 it decreases which

means profit of the HBL falls as compared to previous years. The reason

behind the decrease in 2007 was highly uncertain political situation and

decreasing economical situation of the country. This ratio again increases

in 2008 due to stability of economical and political factors, which is a good

indication for the bank. But it again decreased in year 2009 due to

economic problems. Ratio indicates us that how much cash is created

from the existing assets.

8. EARNING PER SHARE

YEARS 2005 2006 2007 2008 2009AMOUNT 13.86 18.30 14.49 20.47 14.70




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INTERPRETATION:

Earnings per share are the amount of income earned on a share of

common stock during accounting periods. Earnings per share receive

much attention from the financial community, investors and potential

investors. It is not increasing continuously. It is a very good sign in

this way that company can meet its operational expenses easily and

can also earn an attractive income. It is highest in year 2008 i.e.

20.47 as in this year profit is more than the preceding years as

compared to keeping 2005 as a base year. More the bank will earn on

its shares more will be the profitability.

9. RETURN ON ASSET RATIO

Accounts

2005 2006 2007 2008 2009

AFTERTAX

9646549 12700315 10084037 15614020 13400749

ASSET 528893905

590291468

691991521

757928389

863778621

RATIO

%

1.82 2.15 1.46 2.06 1.56




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INTERPRETATION:

Return on assets which is usually called return on investment (ROI).It

measures the overall effectiveness of management in generating profit

with its available assets. The higher return on total assets is considered

best.

This ratio shows the relationship between the total assets and the net

profit. From the year 2005 to 2006 this ratio is increasing for the HBL and

the increase is very fast. It means that increase in its total income is much

more as compared to increase in its total assets. But in 2007 this ratio

decreases, it means in this year assets are increased more rapidly as

compared to total income. In the year 2008 this ratio again shows

increasing trend which means total income is increased as compared to

assets in 2007. In year 2009 it again falls as shown in above table 1.56.

10. RETURN ON DEPOSITS RATIO



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HBL 2010


INTERPRETATION:

This ratio shows the profit of bank against the deposits .This ratio shows

that how well a bank utilizes the deposits to create profits .This ratio is

good in 2006 but very low in year 2009 as above table mentions. The ratio

of 2009 year is not a good sign for the bank. This ratio is decreased due to

economic problems in the country such as the high rate of inflation. We

also cannot ignore the law and order situation in country.

11. INVESTMENT TO ASSET RATIO


ACCOUNTES

2005 2006 2007 2008 2009

PROFIT 13833975 1884048

7

1514461

7

2203437

9

1340074

9DEPOSITS 43254516

5459140198

531298127

597090545

682750079

RATIOS% 3.19 4.10 2.85 3.69 1.96


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Accounts 2005 2006 2007 2008 2009

INVESTMENT

107384470

119587476

177942251

138145692

216467532

ASSET 528893905

590291468

691991521

757928389

863778621

RATIO % 20.30 20.25 25.71 18.22 25


INTERPRETATION:

The investment against the total assets, we find that it is very high in

2007 and 2009. This shows very good sign for the bank but after a period

of time it shows decreasing trend very rapidly according to ratio in 2005,

2006 and 2008. It means that management is paying attention towards

Government securities. This is not a good trend it shows the deficiency of

management. In 2007 this ratios increases because the management is



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HBL 2010

reluctant to invest in government securities due to unstable political

condition. But this ratio again falls in 2008.

12. DEBIT RATIO

Accounts 2005 2006 2007 2008 2009

LIABILITIES

488406055

536848102

628754092

682747953

779408823

ASSETS 528893905

590291468

691991521

757928389

863778621

RATIO % 92.34 91 90.8 90 90.23


INTERPRETATION:

Debt ratio measure the proportion of total assets financed by creditors

.The higher the ratio the greater the amount of others money used in an

attempt to generate profit. This ratio indicates the decreasing trend from2005 to 2008 ant it is very low in the year 2008 but this ratio again shows



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HBL 2010

increasing trend in the year 2009.The 2009 ratio show that bank has

financed 90.23% of its assets . It increased and then decreased this shows

that its borrowing decreased which is a good sign.

13. NET PROFIT RATIO

Accounts 2005 2006 2007 2008 2009NET

PROFIT

9646549 12700315 10084037 15614020 1340074

9NET SALES 21994655 27677631 23227773 27592073 33580875RATIO % 43.85 45.9 43.41 56.58 39.90


INTERPRETATION:



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HBL 2010

This is the ratio of net profits to net sales. This is used to measure overall

profitability of the firm. This shows mixed trend over the years. This ratio

is high in year 2008 which is 56.58%.

14. OPERATING PROFIT RATIO


INTERPRETATION:


ACCOUNTES

2005 2006 2007 2008 2009

EBIT 13833975 18840487 15144617 22034379 21381636NET SALES 21994655 27677631 23227773 27592073 33580875RATIOS% 62.9 68.07 65.20 79.85 63.67


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HBL 2010

This ratio expresses relationship between the operating profit and net

sales. It reflects the efficiency with which a firm produces it products.

Higher the ratio better it is. The ratio is very high in year 2008 which is79.85% but it is low in 2009. So HBL management needs to look at this

decrease.

SWOT ANALYSIS



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STRENGTHS HBL is a leading financial institution in terms of market share. It has

a big market share in the domestic market.

In terms of product design capabilities in relation to competitors,

bank has been leading so far, right from 1947. HBL has

introducing innovative products in the country i.e. Rupee traveler

cheques, Flexi loans

HBL is the oldest bank in the history of banking in Pakistan it was

founders of Habib Bank who presented a bank cheques to Quaid-e-

Azam HBL also provided funds for the establishment of SBP.

It is the only Pakistan bank with the largest overseas net work which

consists of 71 branches in 21 countries.

HBL has largest net-work mode and customer base in Pakistan with

1469 branches in Pakistan.

HBL is in dominating position in Pakistan terms of deposits,

advances and assets.



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The organization uses a differentiated marketing strategy with a

different marketing mix for each segment.

Keeping in view the need of time the bank has automated its

operations like providing ATM services

Bank has launched his credit card.

Bank charges are lees then other banks

WEAKNESSES

A few branches are on line and have a universal access account.

Few ATM are available for the customer of the bank.

Rate offered on PLS are very lees as compared to the other banks

No specialist person is for the simex in the branches.

Employees are less in the branches while regional offices are over

staff .

The pays of the employees are comparatively less and there are no

clear criteria for the promotion

Rate of mark up charged from customer are high as compared to

other banks.



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OPPORTUNITIES

With the largest work of branches, with highly qualified staff bank

provides the quality of service and support to the customers and

retain its leading position.

Bank should target segments like soft-ware energy pharmaceutical

and communications which have potential for grew

As bank has minimum charges by installing the ATMS he can

grabbed more .market share.

Due to privatization management is free for decision making.

Bank can increase his revenue by focused on flexi loan.



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THREATS

Almost of the foreign banks that operations in the bigger cities only

and are concentrating on individuals of higher income and blue

chips companies they are taking away the mark from bank.

As most of the loans are stuck up there are fewer tendencies to

more loans thus giving a low loan

Products and services introduced by HBL in the past have been

copied and followed by other commercial banks.

The bank has to deal with increasingly thought competitions in

domestic market from Nationalized foreign and private sector

banks.



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HBL 2010

The schemes of National savings are a threat for Habib Bank

Limited. They offer higher rate of interest. Habib bank is the bank of

most educational institute but due to bad policies most of institute

shift their account to U.B.L.

Consolidation in the banking sector resulting in increase

competition.



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HBL 2010

SUGGESTIONS &

RECOMENMENDATIONS

SUGGESTIONS & RECOMMENDATIONS

Staff should be provided professional training in marketing, selling,

finance and computer.

It will be helpful in sharpening their abilities and developing their

skills.

Bank should emphasize on hiring of business graduates and

computer experts for the simex system



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HBL 2010

ATMs should be installed in small cities as well.

Operating expenses of the bank should be brought down to increase

profitability.

The political influence should be minimized on all type of the

operations of the bank.

Advance for non-productive investment should be stopped.

The influence of employees union should be minimized.

Implantation on the rules, regulations and policies should be done at

all cost.

The customer satisfaction should be guaranteed through rapid

delivery of financial products and services

Habib bank should focus in the services of their educational

institutes

Staff should be provided with professional training in marketing,

selling, and finance in order to sharpen their abilities and developing

skills.

Right person on right job should be placed.

Proper staff should be in the branches.

All the branches of the bank are not equipped with the on line

facilities and other facilities like ATM, so work should be done to

standardized all the branches at equal level to attract more

customers



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HBL 2010

A network of foreign branches should be established to compete the

competitors and to save the huge charges being to the

corresponding banks



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HBL 2010

CONCLUSION

CONCLUSION

HBL has constantly ensured that its customers find congruence in all its

offerings, which are further proof of the fact that HBL is truly a modern



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HBL 2010

bank catering to every financial need as and when required. The bank s

long journey through time along with the people of Pakistan, with them

every step of the way catering to their every financial requirement has

given it status to become a world class brand.

Habib Bank Limited was incorporated on 25th August 1941 by ISMAIL

HABIB (LATE). Habib Bank inaugurated its operations with the banks first

branch in Bombay. It was the first Muslim bank of the sub continent. It was

established with a paid up capital of Rs.2500, 000. At an early stage the

number of branches was only 12.

Habib Bank Limited is a Pakistan-based bank. The Bank is engaged in

commercial banking, modaraba management and asset management

related services in Pakistan and overseas. During the year ended

December 31, 2009, the Bank operated 1,454 branches in Pakistan and 40

overseas branches. The segments of the Bank include retail banking,

which consists of retail lending, deposits and banking services to private

individuals and small businesses; corporate/commercial banking, which

consists of corporate and commercial customers and investment banking,includes advices and placements to corporate mergers and acquisitions,

underwriting, privatizations and securitization; treasury, which involves

the businesses of trading, fixed income, equity and foreign exchanges,

and international banking group, which consists of the bank's operations

at 24 countries. The geographical segments of the Bank include Pakistan,

Asia Pacific, Europe, North America, Middle East and others

Today, Habib Bank is truly the bank of the people, providing its customers

convenience and satisfaction all over the world. Habib Bank Plaza, the

tallest building in Pakistan, is the proud symbol of HBLs leadership in

Pakistans corporate arena.

Habib Bank Ltd operated under state ownership between 1974-2004. After

privatization in 2004, 51 percent of the Banks shares were purchased by



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the Aga Khan Fund for Economic Development, an agency of the Aga

Khan Development Network.

The president of HBL is assisted by ten Senior Executive Vice-Presidents

and a staff of 29 Executive Vice Presidents, 154 Senior Vice Presidents,

420 Vice Presidents, 831 Assistant Vice Presidents, 2350 officers Grade-I,

4108 officers Grade-II, 3364 officers Grade-III and 10658 Clerical/Non-

Clerical employees.

I have completed my internship in HABIB BANK LIMITED in Bahawalpur.

Today, HBL has more than 1469 branches all over Pakistan and presence

in 26 countries across five continents. With a revamped customer oriented

philosophy, it is pursuing new avenues of leadership through innovation,

as it gear up to face the challenges of the new millennium. It has over 5

million customers. It has strong brand recognition due to historical

presence, vast branch network and services offered. HBL has the biggest

advances portfolio in Pakistan, catering to all sectors of the economy and

all market segments i.e. corporate, consumer, SME, Agriculture and retail.

Following are the different departments of Habib Bank Limited

Advances Department Clearing Department Deposit Department Remittance Department Cash Department

The function of advance department is to lend money in the form of

consumer financing i.e. flexi loans & credit cards. Agriculture finance, cash

finance, running finance. Fixed asset finance, letter of credit & letter of

guarantee are also included in it. . HBL is earning by giving advances

mostly in the form of flexi loans because middle income level consumers

can also avail this facility.



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In clearing department bank exchanges Cheque and other negotiable

instruments drawn on each other within specified area and securing the

payments for their clients through the clearinghouse. The Cheque and

other negotiable instruments are sent to the Clearing Department /

Collection Cell located at the Main Branch.

The function of deposit department is to collect cash from customers and to

deposit it into the accounts, maintained by them. Also different types of accounts

for new customers are opened here.

The main function of bills and remittances department is to deal mainly in

Outwards bills for collection (OBC) and Inward bills for collection (IBC).

Remittance is a process to transfer money or send money through

different procedures and ways. Through this bank earns a lot of income in

form of service charges

The function of cash department is receipt and payment of cash. Utility bills are

also paid in cash department. As we worked in university branch of HBL so

prospectus of university is also available in university branch.

Habib bank has introduced ATM (automated teller machine) in Pakistan for its

customer. Through Atms not only people can withdraw cash but also can avail the

following.

Funds Transfer Mobile bill payment Utility bill payment Generate Mini Statement

To use ATM, ATM card is being made by bank. It is also known as HBL

debit card. HBL Visa Debit Card allows you to pay for your purchases

directly from your bank account.



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HBL 2010

HBL provides the service of Internet Banking through which we can avail the

facilities such as Account information, Funds transfer View statements, Mobile

prepaid cards, Utility bill payment, Cheque Book request.

HBL provides also you the service of Phone Banking through which you can avail

the facilities of Request for Banker's Cheque, Account Statement, and Cheque Book

HBL Credit Card bill payment, Funds Transfer Balance Inquiry, Mobile prepaid cards

etc.

When I did the financial analysis I concluded that HBLs return on assets

had increasing trend in 1st three years and then decreasing and then

again increasing. Increasing trend shows that assets have been properly

utilized to generate net income and decreasing trend shows that assets

have not been properly utilized. Return on equity had very little change in

1st three years. But in 2007 it decreased means net profit was decreasing.

Then it again increased in 2008. In advances to deposit ratio there was

increasing trend in 1st three years which shows that bank had increased

its advances. In 2007 it decreases but it again increased in 2008. This

shows that advances are increasing than deposits which are good forbank.. Equity to asset ratio had shown an increasing trend from 2004 to

2006 which means that shareholders equity had increased. In 2007 it is

showing decreasing trend. But again in 2008 it is increasing means

increase in shareholders equity which is showing good position of

company. Deposit to liability ratio had shown good position in 2004 which

means that bank had maintained sufficient deposits. But from 2005 to

2007 there was much decreasing trend. . In 2008 it had increased dueopening of new branches and introducing new & different schemes that

benefit the customer. The deposits are increasing which show the good

performance of bank. Equity to deposit ratio had shown increasing trend

from year 2004 to 2006 means equity has been increased as compared to

deposits. In decreased in 2007 but again increased in 2008. Advances to

assets ratio was increased in 2005 means bank had given more advances.

In next three years there was little decreasing and than increasing trend.EPS increased continuously from 2004 to 2008 which is a very good sign



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HBL 2010

for bank. In this way firm can meet its expenses. More the bank will earn

on its shares more will be the profitability. Reserves as percentage of loan

had increased in 2006 which means that which means that in 2006 bank

had maintained reserves 5 % of loans to deal with contingencies. But in

2007 this ratio again falls. In 2008 we can see the positive trend in this

ratio means that reserves are again increasing. In SWOT analysis I

concluded that HBL has strong recognition in domestic and foreign market

it has largest net-work mode and customer base in Pakistan with 1469

branches in Pakistan and 71 branches in 21 countries. HBL provides a

complete range of banking products and services including flexi loans, car

finance, home finance, finance, consumer finance, credit cards and lease

finance, credit cards, debit card, online banking and phone banking. All

these things are showing its strength. But its Employees are not satisfied

because the pays of employees are less and there is no clear criterion for

promotion. Also there is shortage of trained and specialized staff. There

are old employees having lack of information technology and cannot use

latest banking software. There is no specialist person who can train

employees in IT. These things are showing weakness. HBL has alsoopportunities i.e. due to privatization management can make its own

decision for the benefit of firm. Products and services can be enhanced for

customers .By increasing technical and professional staff, progress of firm

can be increased. There are also threats to HBL. Different Schemes

launched by other banks have increased competition is increased for HBL.

Employees are leaving because of low salaries and no promotions. As

there are low barriers to entry competition is increasing not domesticallybut also globally. HABIB bank was first Muslim bank to be established in

Pakistan in December 1947 and serving towards the financial and

economic progress of country. HBL is on of the largest and prominent of

bank s of Pakistan.

HBL is providing its customers with value, quality and distinctive level of

services and high ethical standards in all dealings with them. But there isalways need of improvement and need of to identify new ways.



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HBL has constantly ensured that its customers find congruence in all it

offerings, which are further proof of the fact that HBL is truly a modern

bank catering to every financial need as and when required. The banks

long journey through time along with the people of Pakistan, with them

every step of the way, catering to their every financial requirement has

given it status to become a world class brand.

HBL has created a challenging environment that encourages creativity and

commitment. In is focusing on attracting, developing and retaining the best talent

in the marketplace. Its dynamic culture offers diverse growth opportunities across

Pakistan and in 25 countries around the world. HBL fosters a work environment

where employees can realize their potential whether locally or in the international

arena. HBL with its professional management is in the process of turning around

the bank. Its products and services such as debit card, credit card, online banking

and phone banking have resulted a strong potential for turn around and value

creation.

WORK DONE BY ME DURING INTERNSHIPI have worked as an internee in the Habib Bank limited Branch Model town A for

Six weeks. During my internship I learned a lot about the banking work. The

branch was quite small workcomparatively with others but it had all departments.

I tried my best level to gain from this internship experience.On first day I reported to the branch manager operation and he guided me

and gave me information about the branch. In first week he had given me

information about the overall banking in this branch. He told me about the

departments of the bank and some other basic information about the

bank, cheques, records, etc.



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In the next week he told me that now I have to start work in the different

departments. I started my internship from account department.

The most of the working was conducted in this department. There was alot of burden of work in this department. In this department the following

major activities were;

a) Account opening.

b) IBDAs records and preparation.

Account Opening:

In this department daily many people came for open the accounts

according to their own choice of account. In PLS Saving account andcurrent account procedure of opening of account is the same except the

initial deposit.

The account opening form contains the following informations.

The type of account which any person want to be open, he has to

select that. Nature of account whether individual or proprietorship or other.



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HBL 2010

Currency (in which want to operate).

Particular of deposits. (Period for operation).

Complete address.

Telephone number.

Nature of business etc.

Detail of other accounts.

Zakat deduction.

Personal information.

Name.

Date of birth. Nationality etc.

Then signatures of the account holders and the bankers and

manager.

Signature of the introducer, his account number and address.

When this form is filled then signature of the person who want to

open the account are to be taken on the specimen signature card.

Then it is recorded in the PC. Then after a week letter of thanks

when received by the person then a cheques book is issued to him.

Now he can withdraw the amount by fulfilling cheques up to the

extent of his balance, in the account.

In that account opening I also write the letter to the customer.

There are two letter are written while opening the account

1. New customer

2. Introducer of new customer

These are printed letter on which just write the name of person and his

addresser written in the form.

Preparation of Cheque Book:

I issued cheque books in the account opening department. The cheque

books is issued after opening of the account. The Account No. is stamped



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by the rubber stamp on each cheque. Then it is given to the person.But

now computerized cheque books are issued to the customers.

When all cheques books are issued to the customers then these are

recorded in the CD Book or PLS saving book. All cheque books are

recorded with their a/c number and name of the person.

Prepration of IBDA:

I prepared in this department IBDA Inter Branch Debit Advice. If for one

branch it is IBDA transition then it is for branch is IBCO. (Inter branch

credit advice).

IBDA Transition:

For example transaction between satellite town Branch and Model Town

Branch is as follow.

If the customer of satellite town branch withdraw money from Model Town

branch.(use) this branch will debit the account of satellite town branch

with IBDA. Davis road branch will receive the slips that the person has

used the ATM machine there. When money is withdrawn then Habib Bank

satellite town branch will credit the Model Town branch. After transfer of

cash from branch the account will be settled.

Cash Department:

I spent one week in the cash department here I issued token to the

customers and then recorded it into the token book. The procedure of



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issuing the token is that when cheque is presented at the counter. Then

following things are checked.

The signatures on front and at the back.

Similarities in the signatures of the issuer of the cheque.

Date.

Amounts whether tally with the amount written in words.

Then token is issued to him and cheques are stamped at the back at

which date and token No. Is filled. Then all cheques are forwarded to the

next counter where signatures are compared with the signatures in the

book and the balance of the account is checked.

If the cheque has not any fault on it then it is given to cash payment

counter and cash is paid to the customer up to the amount mentioned on

the cheques. I spent one week in this department. I also completed their

pending token books also.

Advance Department:I also spend some time in the Advance t department .the loans availablein our branch are:

1-FLAXI LOAN

2-CONSUMER FINANCE

These are the main types of loan which is future categorized in differentways.

I check there the procedure of different loans

Documents required

Capacity of the party

Purpose of loan

I also observed the 5cs of loan while gave the to the party



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ANNEXURE