19139792 Internship Report HBL

8/13/2019 19139792 Internship Report HBL

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Internship Report 1 Habib Bank Limited

ACKNOWLEDGEMENT

No one can say that I am perfect, everyone should admit that without the help

of ALLAH and His people a man cant et anythin so I bow my head before

almihty Allah with ratitude! I am also very much thankful and presents salute to

many individuals who have helped me in shapin this report !I am also very much

thankful to lot of former fellows and contemporary colleaues who took the time and

trouble durin the last few days to speak to me about the way this te"t could be

further improved! I have no wards to e"press my ratitude to my advisor #r! Bilal

$han Lodhi for his intellectual uidance without which it could have been rather

difficult for me to complete this report!

I am also very thankful to the staff Habib Bank Ltd! %innah &howk branch

especially to #r! $halid #ahmood 'oar (#anaer )perations* who provided me an

opportunity to work in friendly environment!

It was an honor and pleasure to work with+

#r! Rao aleem -llah khan (#anaer HBL %innah &howk branch*

#r! Asif I.bal (Asst! #anaer /orein 0rade 'epartment*

#adam Aysha (1ublic Relation )fficer*

#r! Haroon Butt (#anaer &redit 'epartment*

#r! Ali Ra2a hah (Head cash 'epartment*

Table of Contents

No. Description Page No.


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34 5"ecutive ummary 36

37 5volution of Bankin 38

36 &ommercial Bankin in 1akistan 39 to 3:

History of Bankin in 1akistan

38 About HBL 1akistan 43 to 4:

History and Backround

1rivati2ation

HBLs #ission, ;ision and values

Board of 'irectors

#anaement

&orporate information

39

Bankin 'epartments in HBL

1roducts and services of HBL

3> Learnin and 'uties as an Intern 9? to =8

/orein 5"chane 'epartment

Bills clearin 'epartment

&redit 'epartment

Account, lockers, A0# 'epartment

Assinments

Impact on my &areer

3? Award and /inancial performance in 733? =6 to >6

3: Recommendations >8

43 @lossary, Biblioraphy, Inde" >= to ?3

executive summary5very student of #aster in Business Administration at &)#A0 Institute of

Information 0echnoloy has an essential re.uirement to do i" to 5iht weeks

internship in any of the well reputed orani2ation! 0he purpose of this proram is to

ac.uaint the students with practical applications of theoretical concepts tauht to

them durin conduct of their #BA proram! 0he internship in Habib Bank was

arraned by the ob placement cell of the institute! Really, it was a nice opportunity to

have a close comparison of theoretical concept in practical field, involvin the use of


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primary and secondary data! All the efforts on the way are summari2ed in shape of

this Internship Report! Report starts with the topic evolution of bankin! 0he word

Bank is said to have been derived from the words Bancus or Ban.ue or Bank! 0his

history of bankin is traced to as early as 7333 B!&! 0alkin about commercial

bankin in 1akistan It was very difficult for 1akistan to build up its own Bankinsystem immediately after independence without sufficient resources! By 63th %une

4:8? the number of schedule banks in 1akistan declined from mere scratch! 0oday

there are more than >333 branches of commercial banks alon with an established

network of supplementary financial institutions! All this development in the bankin

sector is the result of untirin efforts of si" decades! HBL was the first commercial

bank to be established in 1akistan in 4:8>! )ver the years, HBL has rown its

branch network and become the larest private sector bank with over 4,893

branches across the country and a customer base e"ceedin five million

relationships!

)n 'ecember 7:, 7336 1akistans 1rivati2ation &ommission announced that

the @overnment of 1akistan had formally ranted the Aa $han /und for 5conomic

'evelopment (A$/5'* rihts to 94C of the shareholdin in HBL, aainst an

investment of 1$R 77!83: billion (-' 6?: million*! 0his report contains information

about HBLs board of directors, manaement, mission, vision and values! HBLsoperations are discussed in liht of its workin department in the branches like cash,

clearin, forein e"chane and accounts department and also in liht of its services

and products which it is offerin to customers weather they are individual, business,

corporate or ariculture field related customers! HBL is currently offerin phone

bankin, internet bankin and various cash manaement services for the facilitation

of its customers! HBLs car to car loan has its own uni.ueness in 1akistans bankin

sector! HBLs branch network is e"tended all over the 1akistan which has its

competitive ede over all other private sector banks in 1akistan!

'urin the time of my internship in Habib Bank %innah &howk branch ahiwal

I ot the chance to work in all the departments of HBL workin there! 'uties and

learnin in each department is iven in this report! 0alkin about financial

performance of the bank in 733? all the financial indicators are showin positive

results when the financial performance of the bank in 733? is compared with

financial performance of 733>! 'urin 733? HBL also won some awards! At the end

of this report I have iven my suestion for the improvement of the bank!


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Evolution of bankin

0he word Bank is said to have been derived from the words Bancus or

Ban.ue or Bank! 0his history of bankin is traced to as early as 7333 B!&! 0he

priests in @reece used to keep money and valuables of the people in temples! 0hese

priests thus acted as financial aents! 0he oriin of bankin is also traced to early

oldsmiths! 0hey used to keep stron safes for storin the money and valuables of

the people! 0he persons who had surplus money found it safe and convenient of

deposit their valuables with them! 0he first stae in the development of modern

bankin, thus, was the acceptin of deposits of cash from those persons who had

surplus money with them!

0he oldsmiths used to issue receipts for the money deposited with them!

0hese receipts bean to pass from hand to hand in settlement of transactions

because people had confidence in the interity and solvency of oldsmiths!


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development of bankin!

COMME!C"AL #ANK"NG "N

$AK"%TAN

It was very difficult for 1akistan to build up its own Bankin system

immediately after independence without sufficient resources! /ollowin the

announcement of the partition plan in %une 4:8> there was a haste movement on the

parts of banks to transfer their funds and accounts across the borders! 0he banks

havin their reistered offices in 1akistan were transferred to India! In an effort to

brin about the collapse of the new state by the persecutin an international policy of

withdrawal, the Indian bank offices closed .uickly! 0hose banks, which stayed, were

considerin the windin up of their business! By 63th %une 4:8? the number of

schedule banks in 1akistan declined from mere scratch!

0oday there are more than >333 branches of commercial banks alon with an

established network of supplementary financial institutions! All this development in

the bankin sector is the result of untirin efforts of four decades!

History of Banking In Pakistan

0he interestin point which I observed durin the span of mine internship was

the historical backround of Bankin F /inancial sector which is the one in which

reat improvement and rowth is observed since the formation of 1akistan! /or


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studyin the rowth of this sector we can divide it into three staes, which are as

follows+

a* 1reGNationali2ation 5ra

b* Nationali2ation 5ra

c* 1ost Nationali2ation 5ra

a) Pre Nationalization period:

0here were only two #uslim banks in Indo 1ak before partitionD they were

!Habib Bank Ltd! (est! in 4:84 at Bombay* F Australia Bank Ltd! (est! In 4:88 at

Lahore*! All other banks, at that time, were either owned by Hindus or /oreiners!

At the time of partition there were =64 bank branches in area which came

under 1akistani control! But due to blood shed and violence at lare scale, mostly

branches were closed and the disparity can be assessed from the fact that on %uly

4:8? there were 4:9 branches with deposits of Rs!?? crore (??3 million* only! Also a

factor lain in 1akistani industry was a central bank of its own, by that time

Reserve Bank of India was actin as central bank for both countries and same

currency notes were used in both territories! But Reserve Bank of India was biased

and et down 1akistan on many occasions such as the issue of funds transfer etc!

In this period drastic steps were taken in overnment sector for the

improvement of overall position! 0he private sector also responded to these chanes

and some very positive chanes were observed! ome of the steps taken by the

overnment in this reard were as under+

4* Inauuration of tate Bank of 1akistan (B1* on 4st %uly, 4:8?!

7* ettin up of National Bank of 1akistan in November, 4:8: to control theute e"port in 5ast 1akistan and to act as aent of B1!

6* Larer powers were iven to B1 throuh B1 Act (4:9=* for controllinpurposes!


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8* Bankin &ompanies )rdinance 4:=7 for protection and uidance to banks!

9* 5stablishment of speciali2ed banks, such as A'B1 (4:97*D

a* HB/& (Nov, 4:97*D

b* 14&I& ()ct, 4:9>*

c* I'B1 (Au! 4:=4*Dd* N'/& (%an, 4:>6*!

0hese were the steps, which built a stron bankin sector in 1akistan! 0his is

also obvious from the facts that by 4:>6 there were almost 43 forein banks were

workin in 1akistan and all over deposit position was around Rs!7633 crore (76,333

million*! A bird eye view of 9 top banks was as iven below+

BANK POSITION IN 1!"

BANK NO. OF BRANCHES DEPOSITS

(Rs in Million)

HBL 667 6,160

NBP 579 5,660

UBL 497 5,670

MCB 506 1,640

ABL 145 570

B# NATIONA$I%ATION P&'IOD

)n %anuary 34, 4:>8 all 1akistani banks were nationali2ed throuh

Nationali2ation Act 4:>8! -nder this law all 1akistani banks became a public

property! All small banks were mered in bier banks to create 9 maor 1akistani

banks 1akistani banks! 0hese banks were to control by 1akistan Bankin &ouncil!

0here are still controversies about this act of overnment as whether it contributed in

success of failure of banks! However the maor chanes after nationali2ation were as


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follows+


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Structureof !"#"c!#$ Sector !" P#%!&t#"

Sch#$l# Banks

'47(

) Co**erc!#$ +#"%&

) S,ec!#$!&e- +#"%&

NBFIs

) Mo-#r#+#&

) Le#&!". co*,#"!e&

) Mutu#$ fu"-&

) S,ec!#$!&e- f!"#"c!#$ '/0&(

) 0"1e&t*e"t +#"%&

) Hou&!". !"#"ce Co*,#"!e&

S!cialis# Banks Co%%rcial Banks

Fori&nBanks

('')

Do%s"ic Banks

(')


0heG privati2ed banks areD

a* #&B taken up by a private roup in April, 4::4

b* ABL taken up by its own employees in eptember, 4::4!

c* -BL taken up by -A5 party in 7337!

d* 'ecember 7:, 7336 HBL was taken by A$/5'

After these chanes a lare number of private and forein banks started their

operations in 1akistan and the present status can be seen from the followin fiure+

About&abib #ank Limite'

HBL was the first commercial bank to be established in 1akistan in 4:8>! )ver the

years, HBL has rown its branch network and become the larest private sector

bank with over 4,893 branches across the country and a customer base e"ceedin

five million relationships!


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outh and &entral Asia, Africa and the /ar 5ast! $ey areas of operations encompass

product offerins and services in Retail Bankin! HBL has the larest &orporate

Bankin portfolio in 1akistan with an active Investment Bankin arm! #5 and

Ariculture lendin prorammes and bankin services are offered in urban and rural

centers! In the -$ and @&&, HBL focuses on trade finance and remittances for theouth Asian 'iaspora in addition to basic bankin facilities! HBL has always been a

bank and a brand for the masses, with a history that is ine"tricably linked with the

history of 1akistan itself! As it continues to row, both locally and abroad, it strives to

embody its brand personality+ honest, approachable, and inclusive! HBL is currently

rated AA (Lon term* and A4 (hort term*! It is the first 1akistani bank to raise

0ier II &apital from e"ternal sources!

*Rating given by JCR-VIS

&"%TO!( AND #ACKG!O)NG

Habib Bank Limited was established by #r! Ismail Habib (Late* on Auust 79,

4:87 at Bombay! It was the first #uslim Bank of the subGcontinent! It was

established with a paid up capital of Rs! 7!9 million! At an early stae, the number of

its branches was only 47!

HBL established operations in 1akistan in 4:8> and moved its head office to

$arachi! )ur first international branch was established in &olombo, ri Lanka in


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4:94 and Habib Bank 1la2a was built in 4:>7 to commemorate the banks 79th

Anniversary! 8 and it continued to dominate the commercial bankin sector with a maor

market share in inward forein remittances (99C* and loans to small industries,

traders and farmers! International operations were e"panded to include the -A,inapore, )man, Belium, eychelles and #aldives and the Netherlands!

$rivati*ation of &abib bank

)n 'ecember 7:, 7336 1akistans 1rivati2ation &ommission announced that

the @overnment of 1akistan had formally ranted the Aa $han /und for 5conomic

'evelopment (A$/5'* rihts to 94C of the shareholdin in HBL, aainst an

investment of 1$R 77!83: billion (-' 6?: million*! )n /ebruary 7=, 7338,

manaement control was handed over to A$/5'! 0he Board of 'irectors was

reconstituted to have four A$/5' nominees, includin the &hairman and the

1residentJ&5) and three @overnment of 1akistan nominees!

L+s ,ision- Mission an'

,alues

;ision5nablin people to advance with confidence and success!


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#ission0o make our customers prosper, our staff e"cel and create value for shareholders!

;alues)ur values are the fundamental principles that define our culture and are brouht to

life in our attitude and behaviors! It is these values that make us uni.ue and

unmistakable! )ur values are defined below+

Excellence0his is at the core of everythin we do! 0he markets in which we operate are

becomin increasinly competitive, ivin our customers an abundance of choice!

)nly throuh bein the very best K in terms of the service we offer, our products and

premises G can we hope to be successful and row!

Integrity


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MANAGEMENT

NA)& D&SI*NATION

ultan Ali Allana &HAIR#AN

R! akir #ahmood 1R5I'5N0 F &!5!)

#ushta. #alik 'IR5&0)R

Ahmed %awad 'IR5&0)R

Masin #alik 'IR5&0)R

#oe2 %amal 'IR5&0)R


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PC OM HBL COPOAT OL

Manaement &ierarc.y

PS/NT


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BOA/ O /CTO

MMB CUT BOA/

ONAL CH

ONAL CH

BANCH MANAS

DE%"GNAT"ON%


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1resident

enior 5"ecutive ;ice 1resident (5;1*

enior ;ice 1resident (;1*

;ice 1resident (;1*

Assistant ;ice 1resident (A;1*

)fficers @rade 4

)fficer @rade II

)fficer @rade III

&ashier

&lerks

1eon

Cor/orate "nformation


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Hea+ OfficeHBL Plaza

I! I! &hundriar Road$arachiG>9=93, 1akistan!

0el + :7 (74* 784?333 93 linesO/a" + :7 (74* :74>944

'egistere+ Office8th /loor, Habib Bank 0ower%innah AvenueIslamabad, 1akistan!0el+ :7 (94* 7?>7736

/a"+ :7 (94* 7?>7739

'egistrars0H$ Associates (1vt!* Ltd!@round /loor, tate Life Bld No! 6'r! iauddin Ahmed Road$arachi, 1akistan!0el+ :7 (74* 444G333G677

,ebsites&orporate website:www!hbl!com0reasury website+www!hbltr!com!pk5bank (internet bankin*+www!hblebank!com

A-+itors$1#@ 0aseer Hadi F &o!&hartered Accountants

Global location
http://www.hblebank.com/http://www.hblebank.com/


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Global locations


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PC OM HBL COPOAT OL

%0ot analysis

Strengts


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trenth can be defined as an area where a company is best at doin

somethin or a feature that puts the company at an advantae in comparison to its

competitors! HBL enoys the followin strenths+

HABIB BAN$ is a well established bank enoyin lon history of over =9 yearsof e"perience and profitable operation!

HBL is the larest private bank in 1akistan now and people trust is very hih!

It has the larest branch network amon private banks of 1akistan!

HBL has been very effective in controllin costs as it successfully restructured

itself after its privati2ation! 'urin this process more than 4,=33 employees

were relieved under a olden handshake scheme and 443 branches were

closed!

5"cellent branches appearance ives an ede to HBL over other banks! 0he

branches are well furnished even in less developed areas where other banks

branches ive a poor view!

HBL has the ability to brin innovative products and services like personali2ed

service, electronic funds 0ransfer, sophisticated financial products such as

electronic bankin, autoGteller machines and evenin bankin!

0he Banks Rupee 0raveler &he.ues have been market leaders for the pastsi" years!

HBLs car to car financin scheme is uni.ue in auto loan sement!

Habib bank is an internationally reconi2ed name in bankin services and

products!

HBL has fored strateic alliances with international banks for e"pandin its

network further, both locally and internationally!

,eaknesses

A weakness is defined as an area in an orani2ation where the orani2ation is not as

ood at doin somethin as its competitors or a thin which an orani2ation lacks


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thus puttin the orani2ation at disadvantae in comparison to its competitors!

Based on the above definition, HBL has the followin weaknesses!

Lack of communication between bank and customers about terms and

condition of products and services! Like centrali2ation of che.ue book issuin

process!

5mployees at branch level are not properly motivated to work by heart! 0hey

take the all routine activities as a borin ob!

#ost of the employees lack manaerial trainin as they are not properly

educated! 'ue to seniority, they have moved up on the hierarchy line to

@radeGI, II or III positions havin hardly bachelor derees! 0his type of senior

staff cannot apply the modern and innovative techni.ues of manaement in

decision makin!

#ission of HBL is not well defined!

0houh HBL is second larest bank in 1akistan, yet the fact remains that it is

not market leader as NB1! Its total assets are always less than NB1 total

assets!

Now as it is a privati2e bank that is why @);5RNA#5N0 support to HBL

decreased as it was in past

Opport-nities

An opportunity can be defined as a chane in e"ternal environment which if properly

e"ploited with the orani2ational strenths will result in enhanced sales, market


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share, or income! -sin its strenths, HBL can avail the followin opportunities!

)pportunities re.uire e"planation therefore I have used headins instead of arrows

&/Banking

@enerally speakin, three factors, .uickness, easiness and cheapness have become

the catchwords for the competitiveness and usefulness of all the business

operations! 1articularly it is commonplace today to say that bankin is underoin a

radical transformation!0he symptoms are new products, new players, new channelsetc! 0his transformation is takin place across all sectors of the bankin industry!

0hat is why Habib bank urently needs to improve their ability, to think strateically

about I0 investments! )nly those banks that use their technoloy resources

effectively have the opportunity to secure real competitive advantae in this fastG

chanin industry throuh real product or service differentiation!

Hig 0ark -p rates

)f late markup rates have increased considerably! 1resent rates are 8C above

$IB)R i!e! 4=C app"! Hih markup rate has decreased the interest of people in

loanin from from banks! Habib bank can increase its income by offerin loan at

lower interest rate than other banks!

ON$IN& BANKIN*

It is doin bankin transactions throuh our home 1!&! 0he banks that do business

throuh net have


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Lare corporate customers can lo into the banks database and have access to

their accountsJtransactions from their business houses! 0his facility has still not been

started for customers in 1akistan! o Habib can focus on that!

A2TO)ATIC T&$$&' )ACHIN& AT)#

0his system is known as PAny 0ime #oneyP because it allows customers who have

an A0# card to withdraw money at any time from the bank without interactin with

human teller! ince the A0# machine can be installed anywhere like petrol bunks,

markets, railway stations etc, and can well be linked to the main computer! It allows

customers to transact with the bank 78 hours a day and 6=9 days a year! 0hey allow

the customers to transfer money to and from accounts to view account information,

to receive cash! It can also be used to +eposit ce3-es an+ cas into the

accounts! No bank in 1akistan is offerin this service currently! o an opportunity

e"ists for Habib bank to differentiate!

'ate of ret-rn

0he rane and choice of products available F offered by the commercial banks is

limited! Rates of Return J 1rofits on 'eposits are so low and unattractive that very

limited options are available to the depositors! 0hey do not match the current rate of

inflation! HBL differentiate and increase its deposit by offerin attractive rate of

return on deposits!

Treats


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0hreat can be defined as a chane in e"ternal environment which if not met with

proper strateies will result in loss of revenues, market share, or income! In the

conte"t of HBLs e"ternal environment, the followin potential threats e"ist+

)ther private commercial bank with sound profitability is also a threat to HBL

e!! -BL, Alfalah, #&B etc

0he Rupee 0ravelers &he.ue (R0&* sales volumes may be affected on

account of reulatory restriction imposed by B1 on issuance of lare value

denominations!

/or the last of 7 to 6 years, 1akistan is facin economic and political instability

which is a bi threat!

/orein banks are flourishin in field of consumer financin!

Afhan war and Ira. war has a deep effect on the economy of 1akistan, which

has affected HBL!

Increased reulations from tate Bank of 1akistan may affect its business!


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Operations of HB$

A1 bankin 'e/artments of .abib

bank;arious departments are workin in all the branches of Habib bank to facilitate the

customers! /ollowin are the bankin departments functionin in HBL %innah &howk

branch ahiwal!

4! Account openin department!

7! &ash department!

6! &redit department!

8! Lockers department!

9! Bill clearin department!

=! /orein e"chane department!

>! I!0 department!

Accounts o/enin

'e/artment


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Basic function of the accounts department is to open new account and facilitate the

customer for the account openin purpose! 0here are certain formalities which are to

be observed for openin of an account with a Bank! 0hese formalities in brief are as

under+

4O')A$ APP$ICATION5

0he customer is to fill PAccount )penin /orm! It is a formal re.uest by a customer

to the bank to allow him to have and operate the account!

Doc-0ents re3-ire for opening an acco-nt5

&opy of &NI&

ervice certificate or student card!

-tility bill

1rovisional receipt

$M& ($now Mour &ustomer*

SP&CI)&N SI*NAT2'&5


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After the &NI& verification account openin officer has to issue a che.ue book to

customer so that he can be able to make withdrawal from his account! Now a day in

Habib bank che.ue book issuin process is centrali2ed that take 3= days to

complete!

S&C'&C65

0he secrecy of depositors account is the! Responsibility of every official enaed in

the Bank service!

0ypes of accounts+

In+i7i+-al acco-nts5

Individual accounts are the most common personal investment accounts! )pened by

sinle person!

8OIN ACCO2NT5

A oint account occurs when two or more than two customers have one account! 0he

parties to a oint account are considered in law as they are one person!

B-siness acco-nts5

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

and nonGprofit orani2ations! /ollowin documents are re.uired!

BOOKS '&$ATIN* TO C2STO)&'S5

Pay/in/Slip


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A che.uebook contains a number of che.ues, which is iven to a customer upon

written re.uest and after markin the payment for the che.uebook! It enables a

customer to make withdrawal from his account or make payment to various parties

by issue of che.ues!

*'O2NDS 4O' C$OSIN* TH& C2STO)&'9S ACCO2NT50he banker may close the account of the customer due to followin reasons+

i! Notice by a &ustomer

ii! 'eath of a &ustomer

iii! &ustomers Insanity

iv! By order of court

( NOTIC& B6 C2STO)&'

0he banker closes the account of the customer on the application of the customer for

closin his account!

( D&ATH O4 C2STO)&'

)n death of his customer, the bank must stop payment on che.ues drawn on him by

the deceased customer because the death revokes his authority to pay such che.ue!

0he heirs or the e"ecutors of the deceased customer are not authori2ed to operate

on the accountD it can act only in accordance with provisions mentioned in the letterof probate issued by a competent courts!

( C2STO)&'9S INSANIT6

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

as his customers aent! ince the banker customer relationship comes to end, in

such as situation, it is usually considered that the bankers authority to pay hiscustomers che.ues is revoked by notice of insanity! However, the bankers treat their

customers as it unless a fairly inclusive evidence of the customers insanity is

availableto them!

( O'D&' O4 CO2'T

A court of law may serve a banker with an order in arnish proceedin in e"ecution

of a decree prohibitin him from honorin a customers che.ues!


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Cas. 'e/artment

ash 'epartment is very sensitive and risky part of the bank! ;ery

causations and competent personnel are needed for the %ob! HBL has

really such a dilient staff with appreciable competencies and will to do

work! #ain function of cash department is to deal with cash payment and cash

receipts!&Cas +eposit proce+-re5

0he customer fills the pay slip! 0he cashier receives the pay slip and cash! He

counts the cash and makes the detail of the notes at the back of the pay slip! 0hen

he compares the detail with amount written on slip and sins the pay lip! 0hen he

credits the entries in the computer by serial No, account type, Account number and

amount! 1uts the stamp of the Qcash Received on the payment slip! 0he first portion

is for bank record while other one is iven to the customer!

Cas pay0ents proce+-re5


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C!ED"T DE$A!TMENT

4! Introduction

7! ecurities!

6! 0ypes of credits

INT'OD2CTION

0he function of credit department is to lend money in the form of clean advances,

aainst promissory notes, as well as secured advances aainst tanible and

marketable securities! 0he bankers prefer such securities that do not run the risk of

eneral depreciation due to market fluctuations!

&ommon ecurities for the bankers advances are as under+G

S&C2'ITI&S

1 *-arantees


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4 Ple+ge

In a plede the ownership remains with plede, but the plede has the e"clusive

possession of property until the advance is repaid in full!


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T6P&S O4 '2NNIN* 4INANC&

I! -nsecured

-nder such type of overdraft the bank pay upon the personal security of the

customers mentioned on the customers account!

II! ecured

-nder this type of overdraft the bank allows his customer to withdraw more

than his deposits after ivin security aainst the amount overdrawn!

0he securities aainst which they iven are+

i! hare certificate, avin certificate

ii! 'eposits

iii! #ortae of property

iv! @uarantee of person

S)A$$ $OANS

Lo#" !& #$$o:e- to co"tr#ctor& c$e#r!". #"- for:#r-!". #.e"t&

3 4INANC& A*AINST TH& 4O'&I*N BI$$S 4A4B#

0he advance facility is allowed both to local forein bills and is classified asunder+G

i! /A/B (Local* advance aainst Railway receipts and truck receipt, a companywith bills of e"chane and invoices, are iven under this head!

ii! /A/B (/orein* advances aainst forein bill, coverin bills of e"chane billsof ladin airway bills of e"chane bills of ladin airways bills etc!

4 A*'IC2$T2'& $OANS

Loans to the farmers with holdin up to 79 acres for meetin their short terms,

medium and lon terms Aricultural production re.uirements, such as+

i! Aricultural inputsii! 0ube wellsiii! Live tock /raminiv! Land improvement


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5 IND2ST'IA$ $OANS

Besides the shortGterm loans which play a part in workin capital medium and lonG

term loans are also iven to industrial sector for purchase of machinery and other

capital nature oods!

#ills clearin 'e/artment

INT'OD2CTION

5very bank acts in two way i!e!

i! 1ayin Bank

ii! &ollectin Bank

Here in theory no leal obliation on a banker to collect che.ues, drawn up to

other banks for a customer! It is, however, an important function of crossed che.ues!

A lare part of this work is carried out throuh the N!I!/!0!

NI4T/ National Instit-tional 4acilitation Tecnologies P7t.# $i0ite+5

NI/0 is a oint venture between a consortium of si" maor banks and private

sector! It is responsible for the establishment and manaement of automated

clearinhouse facilities in 1akistan! NI/0 is proactively involved in the moderni2ation

of payment systems in 1akistan!

42NCTION O4 C$&A'IN* D&PA'T)&NT

0he followin are the main functions of clearin department!

8! 0o accept transfer deliveries and clearin che.ues from the customer of the

branch and to arrane for their collection!

9! 0o arrane the payment of che.ue drawn on the branch and iven for

collection to any other branch of Habib Bank of 1akistan or any other

members, or subGmembers of the local clearin area!!

=! 0o collect amounts of che.ues drawn on members, subGmembers of the local

clearin house, sent for collection by those Habib Bank Limited, branches

which are not represented a the local clearin area!

P'OC&D2'& O4 D&POSITIN* CH&


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As far as possible, the customer desire that on of the staff member fill in a slip for

him, he should be oblied promptly!

)ne portion of the perforated pay in slip is handed over to the depositor and

the portion becomes the reular portion of a credit voucher

T6P&S O4 CH&


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$etter of Cre+it5

It is a neotiable instrument throuh which the bank of the e"porter deals with bank

of the importer throuh the uarantee of a bank! 0here are different parties involved

in the LJ&, eG importer, e"porter, importer bank, e"porter bank, and advisory bank!

L& involves bankin channels in forein trade to mitiate risk!0he procedure of openin of an LJ& is as follow

0he first thin is the 1erforma invoice! 0he 1erforma invoice is a document

(say a clip*, which is, sends by the e"porter to the importer and includes the

information like! 'escriptions of oods, what type of oods you are needed

and what are the .uality, rate and oriinatin country etc!

Before to open a LJ& the bank also consider that the oods which the importer

is importin is allowed by ovt! of 1akistan or not! Because the importer is not

allowed to import that oods which are prohibited by the @ovt! of 1akistan!

0he importer is asked to show the membership certificate of any chamber of

commerce and industry affiliated with the 1akistan federation of chamber of

commerce and industry!

/ill the import form of the ovt! of 1akistan, which is the proof of this that there

is no obection on the oods, which the customer is importin!


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7! Rate

6! Importer and 5"porters particulars

8! Amount

9! 0erms

=! 1artial hipment (Allowed, not allowed*>! 0ransshipment (Allowed, Not Allowed*

?! 1ort of Loadin and destination

:! 1ayment #ode

I! iht

)n seein the documents the importer has to pay!

II! At iht and Neotiation+

It means that e"porter will submit his documents with the bank and immediately asks

for payment!

III! Acceptance+

)n showin the documents to the importer, the bank asks him to accept that he will

pay within 63, =3, :3, 473, 4?3 etc days!

43!'ocuments Re.uired+

&ertificate of )riin!

&ommercial Invoice

Bill of Ladin J Air way bill!

Carges5

/or LJ& followin chares are applicableD

&ommission

1ostae

LJ& Advisin commission

LJ& amendment &ommission

LJ& confirmation &ommission

LJ& Neotiation &ommission

1ayment #ode+In forein trade payment modes are

4* Advance 1ayment+ Importer makes payment before delivery of oods!


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7* )pen AJ&+ Importer makes payment after receivin the oods!

Iss-ing foreign e:cange acco-nts ce3-es books

Another function of forein e"chane department in %innah &howk branch is to issue

forein e"chane accounts che.ues books to customers on re.uest! 0his process is

not yet centrali2ed! &he.ue book is issued within 49 minute of receivin re.uest from

customers after makin necessary reister entries and postin stamps on it!

Pro+-cts an+ Ser7ices of Habib Bank$i0ite+

!etail #ankin

For

"-!!-u#$ Cu&to*er&
http://www.hbl.com/individual-customers.phphttp://www.hbl.com/individual-customers.php


38/80


De/osit ccountsC-rrent Acco-nts

#ake unlimited transactions while maintainin a low minimum balance every month!HBL is currently offerin three types of accounts in current account cateory! 0heir

detail and name is as under!

4! HBL Business;alueAccount

7! &urrent Account

6! Basic Bankin Account (BBA*

HB$ B-siness;al-eAcco-nt

-ni.ue transactional account for Businessmen

-p to 9!69C profit per annum

1rofit calculated daily, paid every .uarter

#inimum balance of Rs! 73,333

HBL 'ebit&ard and Inter Branch 0ransaction ystem (IB0* facilities

-p to 43 Bankers &he.ues free (at minimum balance of Rs! 933,333*

/unds transfer to any bank throuh HBL 1honeBankin

C-rrent Acco-nt


-nlimited transactions

NonGprofit bearin



Basic Banking Acco-nt BBA#

&an be opened with only Rs! 4,333

No minimum balance re.uirement

-pto 7 withdrawal and 7 deposit transactions free every month

-nlimited withdrawals throuh HBL 'ebit&ard

NonGprofit bearin
http://www.hbl.com/individual-customers-accounts.phphttp://www.hbl.com/individual-customers-accounts.php


39/80


Sa7ings acco-nts

Avail the fle"ibility of makin transactions while earnin profit on dailyJmonthly basis!

HBL is currently offerin five types of accounts in savins account cateory! 0heir

detail and name is as under!

4! HBL ;alue Account

7! 1LGavins Account

6! Remittance #unafa 1lus avins Account

8! 'aily #unafa Account

9! 'aily 1roressive Account

HB$ ;al-e Acco-nt

>!4:C profit per annum

1rofit calculated monthly, paid every .uarter

'eposit ranes from Rs! 43,333 to Rs! 4,333,333

0wo withdrawals free every month

P$S/Sa7ings Acco-nt

9!3=C profit per annum

1rofit paid biGannually




-nlimited transactions

'e0ittance )-nafa Pl-s Sa7ings Acco-nt

pecial account for receivin forein remittances

9!47C profit per annum

1rofit paid every month



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Daily )-nafa Acco-nt

1rofit calculated daily, paid every month

-p to ?!?8C profit per annum




Daily Progressi7e Acco-nt

-ni.ue transactional account for Institutions

1rofit calculated daily, paid every month

-p to 44!9>C profit per annum

Inter Branch 0ransaction ystem (IB0* facility



Ter0s Acco-nts

Invest your savins in HBL term deposits for a fi"ed duration and earn profit while

keepin your savins secure! HBL is currently offerin one type of account in terms

account cateory! 0heir detail and name is as under!

4! HBL Advantae Account

HB$ A+7antage Acco-nt

#ultiple options for tenure and profit payout

Loan facility up to :3C of investment

#inimum investment of Rs! 79,333


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4oreign C-rrency Acco-nts

HBL offers /orein &urrency Accounts in multiple currencies as savins and term

accounts! 0heir detail is as under!

4C/SB

avins Account offered in 6 currencies, -' (- dollar*, 5-R (5uros* and

@B1 (-$ pound*

0iered product, with rates dependin on choice of currency

0o earn profit, minimum balance in -', 5-R and @B1 is 4,333

Interest is payable on a .uarterly basis

H644D Hig 6iel+ 4oreign C-rrency 4i:e+ Deposit#

Available in 4 month, 7 month, 6 month, = month and 47 #onth in -', 5-R

and @B1

0iered product, with rates dependin on choice of currency and term

1rofit paid on maturity only! No interim interest is payable!

?NOT&5All the rate and terms and condition are revised by HBL after every si"

months periods! 0hese rates are only applicable for period 34!3>!3: to 64!47!3:!

/urther detail of terms and conditions about profit and rates is iven in anne" QB!


42/80


L car loanHBL &ar Loan helps customers to et their preferred car throuh a simple and

hassleGfree process, backed by superior service and support! Now customer can

drive a car he always wanted!

4eat-res

&hoice of used, new localJimported and reconditioned imported car!

Repayment options ranin -pto > years!

-pto ?9C of financin for the car of your choice!

Insurance at all times for complete peace of mind and security!

Round the clock support available throuh HBL 1honeBankinD you can place

your re.uests and .ueries, track the status of your repaymentJloan account

and avail other valueGadded services throuh HBL 1honeBankin!

&ligibility Criteria
http://www.hbl.com/individual-customers-carloan-comparecars.php


43/80


Ho@ to apply

%ust visit any HBL branch or Habib Bank Auto /inance &entre for details and

application!

ubmit complete set of application without any chares to the branch or the

Auto &enter!

in the necessary documents on approval of the application

1ayment is released within 78 hours of the submission of postGdated che.ues

and initial payment after approval of the re.uest!

Doc-0entation

Salari# In#ii#$als

&omplete Application /orm

alary &ertificate J #ost recent alary lip

Bank tatement for past one year

0wo &opies of NI&

5mployment &ertificate with date of oinin

0wo passport si2e photoraphs

&opy of the last paid utility bill (residence*

Self/&0ploye+ B-siness personsProfessionals


0wo &opies of NI&


Letter of proprietorship J Reistered 1artnership 'eed

&ertified latest /orm A and /orm 7:, where applicable, alon with articles and

#emorandum of Association

&opy of last paid utility bill (residence*

Bank tatement for the last 4 year

L car to car


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HBL &ar0o&ar is a revolutionary car financin offer! It makes the car of customer

choice affordable and practical with a b-y back g-arantee! HBL &ar0o&ar offers

matchless features and uni.ue options at the end of the lease! Now customer can

drive a new car at the end of every two years!

4eat-res

Pa* onl* for +ha" *o$ $s


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T Sell /5noy the ain from sellin off the car at a hiher price in the market than

what you ay HBL as the residual value

&ligibility Criteria

Doc-0entation

Salari# In#ii#$als


alary &ertificate J #ost recent alary lip

Bank tatement for past one year

0wo &opies of NI&

5mployment &ertificate with date of oinin


&opy of the last paid utility bill (residence*

Self/&0ploye+ B-siness personsProfessionals


0wo &opies of NI&


Letter of proprietorship J Reistered 1artnership 'eed

&ertified latest /orm A and /orm 7:, where applicable, alon with articles and

#emorandum of Association

&opy of last paid utility bill (residence*

Bank tatement for the last 4 year


46/80


L Cre'it Car'By the help of HBL credit card customer enters into the world of convenience and

fle"ibility! Accepted at over 7: million merchants worldwide, HBL &redit &ard makes

shoppin fun and payin simple! o that a customer can make the most of his

shoppin e"perience!


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Benefits

B$* no+/ !a* la"r

Buy what customer want, when he want and pay for it later! A credit card statement

will be sent to him every month with details of all his purchases! He will have 74

credit free days to make the payment from the statement date! &ustomer should pay

at least 6 days in advance if he makes your payment by che.ues to allow enouh

time for clearance!

Pa* as %$ch as c$s"o%r +an"s

A customer can pay the entire or as little as 9C of the outstandin balance in his

statement! 0he unpaid amount will be transferred to his ne"t months statement

alon with applicable services chares!

Cash a#anc

&ustomer can o to any specified HBL branch and withdraw cash at the counter! He

can also o to any 4Link A0# in 1akistan and more than 4,333,333 A0#s worldwide

displayin the ;isaJ1lus loo!


48/80


him with a complete record of all his transactions so he can manae his e"penses

with ease!

4eat-res

No In"rs"

HBL ;isa 'ebit &ard is the perfect way of payin for purchases as it ives access to

the e"act amount of money a customer needed, as and when he needs it! 0here is

no interest or credit on payments because he spends from the money available in hispersonal HBL Account!

Eas 0 Sc$ri"*

HBL ;isa 'ebit &ard offers ease and convenience because card holder doesnt have

to visit an A0# to withdraw cash! 1ayin with the HBL 'ebit card is safe because it

eliminates the need to carry cash! A sinle swipe automatically debits the e"act

purchase amount from his personal HBL account!

S!n#in& 1i%i"s

0he daily spendin limit at shops and outlets on HBL ;isa 'ebit &ard is Rs! 433,333!

(0hese fiures are subect to the balance available in account*!

Fr Acco$n" S"a"%n"

HBL cardholders receive a free monthly account statement for their 'ebit &ard and

A0# transactions to help them keep track of their spendin!

In"rna"ional Rco&ni"ion 0 Acc!"a-ili"*


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HBL ;isa 'ebit &ard is accepted at over 73 million ;isa merchants worldwide,

includin over 43,333 merchants in 1akistan! As an A0# card it is accepted at more

than 4,333 4GLink F #GNet A0#s in 1akistan and ?=8,333 ;isa A0#s worldwide! No

matter where card holder is, with the HBL ;isa 'ebit &ard, HBL is always with him!

No 1ia-ili"*

In case of a lost or stolen card, card holders are protected aainst fraudulent

transactions made on their card after they report the incident!

.bl /ersonal Loans


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.bl /.one bankinNow the bank is ust call away! &ustomer can now call HBL 1honeBankin and

save a trip to the branch! His .uery will be resolved in a sinle telephone call from

anywhere and at anytime!

T/PIN *eneration

&ustomers 01IN (0elephone 1ersonal Identification Number* is enerated the first

time he calls and he can use it as your password for verification purposes, selfG

service bankin throuh I;R and additional services throuh HBLs 1honeBankin

)fficers! &ustomer can chane his 01IN anytime he like!

HB$ PoneBanking ser7ices for Deposit Acco-nt c-sto0ers

&ustomers can use the Interactive ;oice Response (I;R* system or talk to HBL

1honeBankin )fficers to+

@et his account balance

@et information about the last 9G43 transactions carried out on his account

Re.uest bank statement, either throuh fa" or email (as supplied in his

subscription form*

@et details of transactions from the last = months on each of the accounts

listed on his subscription form

&hane andJor modify his contact details

0ransfer funds between his own accounts (as listed in the subscription form*

or from his account to a third party account (as listed in the 0hird 1artyAuthori2ation /orm*

0ransfer funds from his own account to an account in another bank under the

4GLink network (Inter Bank /unds 0ransfer*

@enerate his own choice of A0# 1in without fillin a re.uest at your branch

In.uire about HBLs product offerins

Lode a complaint in case of any inconvenience

In.uire about the daily accounts related profit rates and currency e"chane

rates


51/80


Re.uest a number of physical instruments andJor branch bankin related

services that he miht re.uire, includin+

1ay )rder

'emand 'raft

tatement

Balance &ertificate

&he.ue Book

HB$ PoneBanking ser7ices for HB$ CarToCar an+ Car $oan c-sto0ers

HBL &ar0o&ar and HBL &arLoan customers can enoy the followin services

throuh HBL 1honeBankin+

Balance In.uiry Last 9G43 0ransactions

tatement @eneration (5mail and /a"*

Account #aintenance

Assistance in case of &ar 0heftJ'amae

&bl bancassuranceHBL and New %ubilee Life Insurance &ompany Limited (N%LI* introduce Amaan

(Retirement 1lan* and 0abeer (&hild 5ducation F #arriae*! 0hese products havebeen desined keepin HBLs customer base as the focus and will provide life

insurance alon with an investment option!

A0aan 'etire0ent plan#

Amaan is a pension plan that provides an opportunity for rowth throuh investment

in a balanced portfolio with postGretirement income benefits! 0he plan covers life

insurance and ives attractive returns on investment to its customers!


52/80


Tabeer Cil+ &+-cation an+ 0arriage plan#

0abeer is a plan that provides parents with a means to accumulate a fund over a

period of time which can then be used to pay for a childs education or marriae!

1lans are available for both under and over 89 years of ae!

LockersLockers are available in many of the HBL branches in different si2es like small,

medium and lareD some branches also have e"tra lare and cubical lockers! 5"cept

rural areas because of security reasons!

&ligibility for -sing lockers

)nly the account holders can avail the facility of lockers! 0he annual rent will be

directly debited from their respected accounts at the start of the year!

Carges

SieKey +eposit

ref-n+able*

Ann-al rent

's.

SMALL 2500 2750

M/UM 3000 3850

LA 4000 6050


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$ey deposit is refundable at the time handin over the locker to bank! /or the staff of

HBL key deposit is not re.uired and also the annual rent is very low for them!

&bl cor/orate bankinHBL &orporate Bankin @roup comprises a seasoned team of Relationship

#anaers (R#s* to meet the demandin service standards of lare corporations! A

lon history of financin and nurturin relationships in 1akistan has iven HBL a

uni.ue insiht, enablin it to provide timely and effective financial solutions for their

customers to meet the rowin challenes of a lobal economy! /or a corporate

customer, with a turnover of at least 1$R 633 million, HBL has a rane of solutions

desined to help him with his bankin needs! 0heir R#s have the e"pertise

customer need to create tailored financial solutions caterin to the specific

re.uirements of his business!


54/80


&ash #anaement ervices

0rade ervices includin Letter of &redit, Letter of @uarantee and tandby

Letter of &redit, etc!

HB$ CO'PO'AT& C&NT&'S

1.Corporate Centre, Karachi 6.Export Processing Zone, Karachi2.PIA Branch, Karachi 7.Steel Mills, Karachi.Stoc! Exchange, Karachi ".Stoc! Exchange, #ahore

$.Corporate Centre, Isla%a&a' (.Morga Branch, )a*alpin'i+.Corporate Centre, aisala&a' 1-.Corporate Centre, Mltan

11. Karachi Port /rst, Karachi

L Commercial bankinHBLs &ommercial Bankin @roup tarets medium si2ed companies with a turnover

of at least 1$R 93 million! Its business units are located in $arachi, Lahore,

/aisalabad, ialkot, @uranwala and 1eshawar! 5ach unit is dedicated to service

business clusters located within these cities! 0hey have the ability and the resources

to meet the needs of customers business with their proGactive, responsive and

e"perienced Relationship #anaers who are committed to understandin customers

business!

Ser7ices

HBL offers financin for the followin+


55/80


2.Korangi In'strial Area, Karachi 1-.apier )oa', Karachi

.Sa''ar, Karachi 11.S.I./.E. Karachi

$./ari )oa', Karachi 12.Panora%a Centre, #ahore

+.Ba'a%i Bagh, #ahore 1Peco )oa', #ahore

6.Kash%ir )oa', Sial!ot 1$.Paris )oa', Sial!ot

7.S%all In'. Estate, Sial!ot. 1+.Circlar )oa', aisala&a'

".Peoples Colon3, aisala&a' 16./rst Pla4a, 5ran*ala

17.Sper Mar!et, Pesha*ar

&bl *arai bankinHBL araiBankin facilities are spread across the country and provide financin

throuh more than ?33 of their branches! HBLs presence in all ariculture belts of

the country ensures easy access to farmers in rural areas! HBL araiBankin

provides loans to smallGscale land ownin farmers as well as lare institutionali2ed

and alliance based finance, enhancin aricultural harvest and, in turn, economic

output of the country!

Pro+-cts

HBL araiBankin enables farmers to invest in premier .uality seeds, fertili2ers,

pesticides, aricultural implements and nonGfarm setups throuh its various product

prorams!

Cro! In!$"s

&rop specific finance for purchase of Ariculture inputs such as seed, fertili2er,

pesticide and other related inputs!

Far% I%!l%n"s


56/80


/inance available for purchase of farm implements F machinery like combined

harvester, sprayers, plouhs, tube wells and other cropGrelated toolsJimplements!

Trac"ors2A&ric$l"$ral 3hicls

/inance available to individual farmers, selfGemployed tractor operators, providin

the option to select vehicles from a rane of different manufacturers!1is"ock

/inance available for feed, medicines, raw material, raisin chares and other

related activities!

Po$l"r*

/inance available for all poultry related activities includin poultry farm

constructionJe.uipment, hatchery plant F machinery, poultry feed, poultry medicines,

composite feed production, poultry processin and other related activities!

Fish Far%in&

/inance available for inland fish farms as well as deepGsea fishin! 0his includes

procurement of boat, fish locatin e.uipment, nets F ropes, ice maker, fish farm

water solution, hatchery constructionJe.uipment, purchase of medicines J feed and

other related activities!

4ro$! 1n#in&

%oint finance facility for a roup of farmers with small land holdins for workin

capital re.uirement!

NOT&5 0hese finances may be availed under 'emand /inance or Runnin /inance

cateories! 'emand /inance is usually available for short term financin needs while

Runnin /inance is available on the basis of revolvin limit!

"slamic bankinIslamic Bankin is a rowin market sement that offers attractive opportunities to

potential and e"istin customers! At HBL, Islamic Bankin offers hariah compliant

products and services to meet the short and lon term re.uirements of business,

trade and industry!


57/80


Saria Co0pliance

HBLs Islamic Bankin products are in strict compliance with the tenets of hariah

and bear hariah &ompliance &ertification from an independent hariah Advisor!

0heir hariah Advisor has in depth e"perience in hariah rulins (/atawa* and

teachins at different forums with .ualifications of 'arsGeGNi2ami, #!A and L!L!B!

HBL also have a hariah cholar, as member of their hariah upervisory

&ommittee to ensure a sound hariah &ompliance mechanism, ivin prompt

responses to customers needs and access to hariah knowlede!

Pro+-cts an+ Ser7ices

&orporate and &ommercial customers can choose from hariah compliant bankin

solutions to meet their business needs!

I5arah (1asin&)

#edium to lon term facility for vehicles, plant and machinery leased out to the client

on rental basis!

Di%inishin& M$sharaka

#edium to lon term facility for vehicles, plant and machinery on oint ownership

basis!

M$ra-aha

Local and Import facilities for purchase of raw materials, semi finished and finished

oods, stores or spares!

Tra# Srics

Letter of &redit /acility, &ollection of /orein Bills, &ollection of Local Bills, Letter of

@uarantees!

&ustomers are welcome to visit their Islamic Bankin branch for the followin

services;

&urrent Account (1$R, -', 5-R), 1)-N' 05RLIN@*

Basic Bankin Account

A0#J'ebit &ard /acility

/orein J Inland Remittances

-tility Bills &ollection

5Gbankin J Internet Bankin ervices

78J> 1hone Bankin ervices


58/80


1ersonali2ed customer friendly services

avin 'eposits will be introduced soon

Branc

A++ress4inlay Ho-se*ro-n+ 4loorI.I C-n+rigar 'oa+Karaci

Contact +etails5(1/"(("E "(("1F"(

4a:(1/"(("!

&/0ailhbl!9333Whbl!com

Learnin as an internAs every body knows that P$nowlede without practice is sterile PIn order to ivevent to this idea an Internship proram of si" to eiht weeks has been arraned in

different esteemed orani2ations durin #!B!A! In this reard on 49th of %une 733:, I

was asked by #r! #ir2a aeed (HR officer in HBL reional office ahiwal* to o to

Habib Bank %innah &howk branch to start an internship of seven weeks there!

'urin this period I ot a chance to work and learn in followin departments of the

bank+

/orein e"chane department

Bills clearin department

&redit department

I!0 department

&ash department

Accounts, A0# and Lockers department

D-ties an+ learning in 4oreign e:cange +epart0ent/irst of all I started my trainin in forein e"chane department of the bank under the

supervision of #r! Asif I.bal (#anaer /ore" department*! I came to know about the
mailto:[email protected]:[email protected]


59/80


different functions of forein e"chane department and how to perform these

functions durin my work in the department!

#y +-tiesin the department were related to the followins+

/orein currency e"chane rates!

Letter of credit (L!&* both openin and neotiation!

Letter of uarantee

Issuin check books for forein currency accounts

Remittances applications!

$earning

Opening of letter of cre+it. Bank starts workin on openin process after an

application is received from the buyer (importer*! I came to know about the process

of openin of L!&, documents that bank demands from applicant, form used for that

purpose, ettin A!0 (Availance 0icket* from reional head office and scannin and

mailin the documents to head office $arachi for the purpose of ettin approval,

and payment on maturity date! )penin and neotiation both are centrali2ed process

in Habib bank therefore approval from head office is re.uired!

Negotiation of $.C! Bank starts neotiation of letter of credit (which would be

already opened by importers bank* after the application from seller (e"porter*!

Before sendin the documents for payment to importer bank neotiator bank mustensure that the entire document mentioned in &laus 8=A of the L!& are attached and

complete!

'urin the week I also worked on 'e0ittances application! An applicant who

wants to transfer funds abroad must have a forein currency account in the bank!

Because tate Bank of 1akistan only allow account to account transfer of funds

abroad throuh banks! And I came to know about the process and information

re.uired to fill the form! I also came know about the process of issuin forein

currency accounts che.ue book to customers! 'urin the week I learn many thins

about the mechanism of forein trade!

D-ties an+ learning in bill clearing +epart0ent

0he second department in which I ot a chance to work was bill clearin department!

'urin the work in clearin department I came to know about the different functions

of clearin department and how to perform them! I came to know the process of

receivin che.ues by 'ak, how to check che.ues for any error like, the che.ues

should be of the bank which is the clearin member of area which comes under


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%innah &howk branch for e"ample if the che.ue is of bank AlG/allah Lahore then it

should o to 2onal branch of Lahore reion instead of 2onal branch of ahiwal! 0hen

checkin whether the amount of che.ue and )B& (outward bank collections*

voucher attached to it is same or not! If no error is found then makin reister entries

by notin down their )B& number branch code and amount of the voucher! 0hen+ &alculatin the total amount of vouchers by summin individual amounts!

&alculatin the total amount of che.ues by summin individual amounts!

1reparin an add list to be attached with clearin instruments (che.ues*!


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In ahiwal reion at this point of time from HBL only personal loan is active while

auto finance is about to start aain in near future and lifestyle loan is inactive! I came

to know about the terms and conditions of personal loan! )nly the overnment

servant who has his salary account at least si" month old in HBL can apply! 'ifferent

markup for different cateories like 74C, 76C and 79C! 74C for e"istin users upto 6 year duration

76C for e"istin users for 8 or 9 years duration!

79C for new customers

I also did work on documentation process for personal loan! I came to know about

the different types of document re.uired to complete a case for sendin it to reional

head office for approval! 'ocument like branch check list, application form, &opy of

&NI& of customer and two references, &NI& verification report from NA'RA,customers account statement, finance areement form etc!

I also came to know about different types of securities which a bank demands from

customer while issuin loan! e!! @uarantees, #ortae, Hypothecation and1lede!

D-ties an+ learning in Acco-ntsE AT) an+ $ockers +epart0ent

0hen I learned about A0# a-to0atic teller 0acine*! I came to know about the

functions and workin process of A0# machine! Loadin cash and balancin at the

time of loadin aain! Ne"t my main concern was to know about all the aspects of

A0# card! I came know about the types, process of issuin A0# card to customers,

fillin forms, how to activate A0# card, chares of issuin and usin A0# card!

0hen I spent my time in lockers +epart0ent! I took all the information about the

terms and conditions of allottin and operatin a locker, types of locker like small,

medium and lare, chares of usin lockers, key deposit (refundable*, fillin

application forms, insurance amount for specific si2e of locker and etc! I also came

to know about the process of operatin locker by the customer, how to open the

locker with the help of two keys!

4 key in the hand of bank officer (anticlockwise*

7nd key in the hand of customer (clockwise*

&ustomer is allowed to operate the locker in full privacy! )nly the customer himself

or other person authori2ed by him can operate the locker! After that bank officer has

to take the sinature of the customers on attendance reister maintained for this

purpose!


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0hen my duty was in Accounts department! I came to know the procedure for fillin

the form to open an account, different types of stamps re.uired and about sinature

of the staff! 'ocuments re.uired to be attached with the form!

&opy of &NI&

-tility bill

1rovisional receipt

$M& ($now Mour &ustomer*

And how to post an account on system after fillin the form! 0hen I came to know

about avin accounts and different types of accounts in savin cateory and terms

and conditions of each type!

4! HBL ;alue Account

7! 1LGavins Account

6! Remittance #unafa 1lus avins Account

8! 'aily #unafa Account

9! 'aily 1roressive Account

0hen current accounts

=! HBL Business ;alue Account>! &urrent Account

?! Basic Bankin Account (BBA*

0erm accounts

:! HBL Advantae Account

43!Investment plus 'eposit

/& accounts

44!/&GB

avins Account offered in 6 currencies, -' (- dollar*, 5-R (5uros* and @B1(-$ pound*

47!HM//' (Hih Mield /orein &urrency /i"ed 'eposit*

Available in 4 month, 7 month, 6 month, = month and 47 #onth in -', 5-R and@B1Assign0ents

1#'urin my work in accounts department #r! $halid 'oar (manaer operation*

assined me the duty of checkin the files of previously opened accounts for any

type of discrepancies like utility bill or service certificate of the account holder is

attached or not and checkin stamps and sinature of the staff etc! It was because


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an audit of these files in the comin month is scheduled! Almost above 93C of the

application forms were havin discrepancies of different types! 0his turns out to be

very informative e"perience for me! 'eposits are considered as lifeblood for any

bank to survive! I came to know about the procedure and different types of deposits

that customers can maintain in HBL, return rates that a customer can et and otherterms and conditions of each type of account! As far as checkin the old files are

concern it seems borin but from my point of view it was very informative! 0he

learnin I ot while doin this ob would never be easy to et otherwise!

(##r! $halid 'oar assined us another task! tate bank of 1akistan has instructed

all the banks in 1akistan to make sure availability of computeri2ed national identity

cards of all the account holders!


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2inancial /erformance an'ac.ievements of L in 3445

Financial performance

/inancial tatements

Ratio analysis

0he financial results for the first .uarter of 733:

/inancial hihlihts 733?


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Achievements

HBL G 0he Best 5merin #arket Bank in 1akistan

733? HBL G #ost innovative @lobal 0rade /inance award

733? G Best bank In 1akistan Award

733? HBL #ilestones G Bu22iest Brands Awards

H#+!+ B#"% L!*!te-

B#$#"ce &


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H#+!+ B#"% L!*!te-

Prof!t = $o&& Accou"tA& o" 31 /ece*+er 2008


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!atio nalysis of t.e L6QAn inde" that relates two accountin numbers and is obtained by dividin one

number by other

Ratio Analysis is an important and aeGold techni.ue of financial analysis! It

simplifies the comprehension of financial statements! Ratios tell the whole story of

chanes in the financial condition of business! It provides data fro inter firm

comparison! Ratios hihliht the factors associated with successful and unsuccessful

firm! 0hey also reveal stron firms and weak firms, overG valued and under valued

firms! It helps in 1lannin and forecastin! Ratios can assist manaement, in itsbasic functions of forecastin, plannin, coGordination, control and communication!

Ratio analysis also makes possible comparison of the performance of different

divisions of the firm! 0he ratios are helpful in decision about their efficiency of

otherwise in the past and likely performance in future! Ratios also help in Investment

decisions in the investors and lendin decisions in the case of bankers etc!

/ollowin are the main types of ratios that I am oin to calculate in this report to

compare and hihliht the financial performance of Habib bank in 733? with 733>!


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Return on 5.uity Ratio

Return on Assets

Loan to Assets ratio

Net 1rofit Ratio

Loan to 'eposit

'et-rn on &3-ity 'atio

Return on 5.uity Ratio(> (!

Net 1rofit after ta" V 433)wner 5.uity

Net 1rofit after ta"49,=48,373 43,3?8,36>

)wner 5.uity>9,4?3,86= =6,76>,87:

Return on e.uity73!>= 49!:8


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Interpretation5

0he past two years data shows an improvement in the return on e.uity which is apositive sin! 0he Bank should have to continue its policies! By observin the

audited account I found that this improvement is due to increase in the Net profit

which is ood sin!

'et-rn on Assets 'atio

Interpretation5Return on assets ratio shows an improvin trend! 0his ratio shows that the both the

Net profit and 0otal Assets has improved in 733? than 733>! But net profit has

increased more rapidly!

Return on Assets(> (!

Net 1rofit after ta" V 4330otal Assets

Net 1rofit after ta"49,=48,373 43,3?8,36>

0otal Assets>9>,:7?,6?: =:4,::4,974

Return on Assets7!3= 4!89


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$oan to Assets ratio

Interpretation5

Loan to Asset Ratio is showin increasin trend in 733?! 0his is because advances

are increasin more rapidly than assets of the bank!

Net Profit 'atio

Loan to Assets ratio

(> (!

LoansAssets

Advances89=,699,93> 6?7,4>7,>68

Assets >9>,:7?,6?: =:4,::4,974

Loan to Assets ratio =3!74 99!77


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Interpretation5Net profit Ratio is ivin upward trend! 0his trend is observed due to increase in Net

profit but on the other hand the e"penses decreases which shows an efficient

manaement!

$oan to Deposit 'atio

Net 1rofit Ratio (> (!

Net profit JInterest Income V 433

Net profit 49,=48,373 43,3?8,36>

Interest Income 86,:>3,??8 66,793,:6>

Net profit ratio69!93 63!67

Loan to 'eposit

(> (!

LoansJ'eposits433

Advances 89=,699,93> 6?7,4>7,>68

'eposits 9:>,3:3,989 964,7:?,47>

Loan to deposit ratio>=!86 >4!:6


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Interpretation5

Loans to deposit ratio show an increasin trend in 733? as compare to 733>! 0his

trend is observed as the advances and deposits both are increasin but advances

are increasin more rapidly than deposits!

Te financial res-lts for te first 3-arter of ( are

's. In #

1rofit after ta" 6,6?8,=76

hare of profit attributable to minority interest 89,3=6

1rofit attributable to shareholders 6,66:,9=3

5arnins per share rupees (Basic F 'iluted* 8!83

2inancial .i.li.ts3445In the followin diaram HBLs balance sheets and income statements items for

733? are compared with the items of 733> and percentae rowth is also calculated!


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c.ievementsHB$ / GTe Best &0erging )arket Bank in PakistanG


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HBL has been selected as X0he Best 5merin #arket Bank in 1akistan by @lobal

/inance #aa2ine!

@lobal /inance maa2ine has named the QBest 5merin #arket Banks in Asia in

an e"clusive survey to be published in the #ay 733: issue! @lobal /inance editorsY

with input from industry analysts, corporate e"ecutives and bankin consultantsY

selected the best emerin market bank in the reion and in 73 countries! @lobal

/inance reports on the international finance sector, coverin topics such as

corporate finance, oint ventures and #FA, country profiles, capital markets, investor

relations, currencies, bankin, risk manaement, custody, direct investment, and

money manaement! 0he maa2ine also holds several awards ceremonies

throuhout the year to reconi2e the winnin financial institutions and companies!

(> HB$ / G)ost inno7ati7e *lobal Tra+e 4inanceG a@ar+

HBL received the #ost Innovative @0/1 (@lobal 0rade /inance 1roram* award!

0he award was received at the International /inance &orporation Annual 0rade

&onference in 1aris where 47= issuin and 489 confirmin multinational banks that

were present! #r! 0ari. #ateen G Head /inancial Institutions 'ivision, ave a

presentation showcasin the success of HBL in the lobal trade financin business!

0he award was received by #r! #ateen and #r! Anwar aidi K Head )perations!

0his reconition has raised our profile amon a lare forum of international banks

and paved way for I/& to increase our facility from -' >9 million to -' 433

million which has helped us in creatin li.uidity in our international network

(> / GBest bank In PakistanG A@ar+

In )ctober 733?, HBL received the XBest Bank in 1akistan award in reconition for

its continuous efforts in providin world class products and services to customers!

Award was received by #r! ultan Ali Allana G &hairman! 0he ceremony in


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Nauman 'ar G Head International Bankin and #r! 0ari. #ateen G Head /inancial

Institutions 'ivision!

Mr. Sltan Ali Allana right8 recei9ing the a*ar'

(> HB$ )ilestones / GB-iest Bran+sG A@ar+s

Revelation Inc, a 1akistan based brand 'evelopment &ompany, carried out a poll

amon marketin and advertisin representatives, as well as a panel of udes to

pick the most active brand in 1akistan! HBL was received the QBu22iest Brand

award in the Bankin and /inancial Institutions &ateory! HBL was competin with

stron consumer brands like )lpers and &oca &ola yet accomplished third position

amon top five brands in the entire advertisin industry! 0he award was received by

#r! Aly #ustansir G Head #arketin and Brand #anaement! 0he first two places

were awarded to telco brands, 0elenor and #obilink!

!ecommen'ationsAs we seen from the previous analysis of the financial statements I have reali2ed

that that Habib Bank is performin very well since its inception! It is .uite difficult to

ive suestion to improve the bankin conditions Habib Bank Limited! As we know


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that nothin is perfect, there is always a room for improvement, so I will recommend

followin suestions for HBL+

5mployees 0rainin prorammes must be introduced on continuous

basis so that 5mployees have understandin with the latest

developments especially with the customers!

Bank should introduced incentive plans for employees on reular basis

so that if employees may work whole heartedly for the welfare of their

orani2ation!


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enables him to know the procedure of filin the che.ues, payGinGslip

etc! It will save a lot of time of the bank staff afterward durin the

conduct of the account of that customer!

0he attitude of the bankers with all of their customers is not the sameD

they pay more attention and ood service to some of the customers

and nelect a maor portion of them! ome of the customers approach

to the bank officials and et their work done before othersD it is not a

ood practice! All the customers should be treated e.ually!

HBL should increase its communication with customers about the

terms and conditions of its different products and services!

GlossaryCIIT5 CO)SATS instit-te of infor0ation tecnology


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D.D5 De0an+ Draft

AC5 acco-nt

O.B5 Oter Bank

O.B.C O-t@ar+ Bills Collection

P.$.S5 Profit an+ $oss Acco-nt

Dr5 +ebit

Cr5 Cre+it

C.A5 C-rrent Acco-nt

4.$5 4le:i loan

$.*5 $etter of *-arantee

D.45 De0an+ 4inance

$.C5 $etter of Cre+it

'.45 '-nning 4inance

4.A.P.C5 4inance against Packing Cre+it

HB$ Habib Bank $i0ite+

AB$ Allie+ Bank $i0ite+

)CB )-sli0 Co00ercial Bank

NBP National Bank $i0ite+

2B$ 2nite+ Bank $i0ite+

NI4T National Instit-tional 4acilitation

Tecnologies p7t# $TD.

#ibliora/.y#aterial on these books, articles and websites has helped me a lot in preparation

this report


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Books

HBL &orporate 1rofile 733?

HBL Annual Reports 733? and 733: first Suarter

Articles F Doc-0ents

BAN$IN@ 5&0)R R5/)R# IN 1A$I0AN+

http+JJwww!ishrathusain!iba!edu!pkJspeachesJBAN$IN@E5&0)RER5/)R#!pdf

www!encyclopedia!comJdocJ4@4G=4?=86==!html

,ebsites

www!hbl!com

www!habibbankltd!com

www!hblasset!com

www!investopedia!comJarticlesJ3>Jbankin!asp

wiki!answers!comJSJ5volutionEofEbankin

"n'ex
http://www.ishrathusain.iba.edu.pk/speeches/BANKING_SECTOR_REFORMS.pdfhttp://www.ishrathusain.iba.edu.pk/articles/BANKING_SECTOR_REFORMS.pdfhttp://www.hbl.com/http://www.habibbankltd.com/http://www.investopedia.com/articles/07/banking.asphttp://www.ishrathusain.iba.edu.pk/speeches/BANKING_SECTOR_REFORMS.pdfhttp://www.ishrathusain.iba.edu.pk/articles/BANKING_SECTOR_REFORMS.pdfhttp://www.hbl.com/http://www.habibbankltd.com/http://www.investopedia.com/articles/07/banking.asp


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Anne: A5

IN05RN0HI1 &5R0I/I&A05

Anne: B5

IN'I&A0I;5 RA05

Anne: C5

A&&)-N0 )15NIN@ /)R#

Anne: D5

R5#I00AN&5 A11LI&A0I)N

Anne: &5

'5BI0 &AR' A11LI&A0I)N /)R#

Anne: 45

'51)I0 LI1

19139792 Internship Report HBL

Documents

Transcript of 19139792 Internship Report HBL