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Recommended Internship Report HBL
Recommended Internship Report HBL
Job Report
ACKNOWLEDGEMENT
No one can say that I am perfect, everyone should admit that without the help
of ALLAH and His people a man cant get anything so I bow my head before almighty
Allah with gratitude. I am also very much thankful and presents salute to many
individuals who have helped me in shaping this report .I am also very much thankful
to lot of class fellows and contemporary colleagues. I am especially grateful to Ms.
Abeerah who took the time and trouble during the last few days to speak to me
about the way this text could be further improved.
I am also very thankful to the staff Habib Bank Ltd. Punjab Medical
College branch especially to Mr. Javed Raza (Area Manager & Branch Manager) and
Mr. Shehryar Ali (Manager Credit) who provided me an opportunity to work in friendly
environment.
It was an honor and pleasure to work with:
Mr. Javed Raza (Chief Manager HBL Punjab Medical college branch)
Mr. Asif Iqbal (Asst. Manager Foreign Trade Department)
Mr.Shehryar Ali (Manager Credit Department)
Mr. Kashif (Head cash Department)
Mr. Maqbool Ahmed Khan(Manager operations)
Job Report
Table of Contents
Description
Page No.
Executive Summary
Privatization
Board of Directors
10
Management
11
Corporate information
13
SWOT Analysis
15
18
18
B .Cash department
20
C .Credit department
21
23
24
27
Deposit accounts
28
29
32
34
35
37
39
40
Learnings as an employee
42
46
48
52
Recommendations
54
55
Glossary, Bibliography
56
Index
57
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executive summary
Every student of Master in Business Administration at Government College
University Faisalabad has an essential requirement to do Six to Eight weeks job in
any of the well reputed organization. The purpose of this program is to acquaint the
students with practical applications of theoretical concepts taught to them during
conduct of their MBA program. But I got job at HBL during my M.B.A so I am
submitting job report..I joined HBL on 28th day of May,2008 as officer Band-1. Report
starts with the topic evolution of banking. HBL was the first commercial bank to be
established in Pakistan in 1947. Over the years, HBL has grown its branch network
and become the largest private sector bank with over 1,450 branches across the
country and a customer base exceeding five million relationships.
On December 29, 2003 Pakistan's Privatization Commission announced that
the Government of Pakistan had formally granted the Aga Khan Fund for Economic
Development (AKFED) rights to 51% of the shareholding in HBL, against an
investment of PKR 22.409 billion (USD 389 million). This report contains information
about HBLs board of directors, management, mission, vision and values. HBLs
operations are discussed in light of its working department in the branches like cash,
clearing, foreign exchange and accounts department and also in light of its services
and products which it is offering to customers weather they are individual, business,
corporate or agriculture field related customers. HBL is currently offering phone
banking, internet banking and various cash management services for the facilitation
of its customers. HBLs car to car loan has its own uniqueness in Pakistans banking
sector. HBLs branch network is extended all over the Pakistan which has its
competitive edge over all other private sector banks in Pakistan.
During the time of my job in Habib Bank Punjab Medical College branch
Faisalabad I got the chance to work in all the departments of HBL working there but
my specialization was credit department.. Duties and learning in each department is
given in this report. Talking about financial performance of the bank in 2008 all the
financial indicators are showing positive results when the financial performance of
the bank in 2008 is compared with financial performance of 2007. During 2008 HBL
also won some awards. At the end of this report I have given my suggestion for the
improvement of the bank.
.
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COMMERCIAL BANKING IN
PAKISTAN
The word 'Bank' is said to have been derived from the words Bancus or
Banque or Bank. This history of banking is traced to as early as 2000 B.C. The
priests in Greece used to keep money and valuables of the people in temples. These
priests thus acted as financial agents. The origin of banking is also traced to early
goldsmiths.It was very difficult for Pakistan to build up its own Banking system
immediately after independence without sufficient resources. Following the
announcement of the partition plan in June 1947 there was a haste movement on the
parts of banks to transfer their funds and accounts across the borders. The banks
having their registered offices in Pakistan were transferred to India. In an effort to
bring about the collapse of the new state by the persecuting an international policy of
withdrawal, the Indian bank offices closed quickly. Those banks, which stayed, were
considering the winding up of their business. By 30th June 1948 the number of
schedule banks in Pakistan declined from mere scratch.
Today there are more than 7000 branches of commercial banks along with an
established network of supplementary financial institutions. All this development in
the banking sector is the result of untiring efforts of four decades.
a)
Pre-Nationalization Era
b)
Nationalization Era
c)
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B) NATIONALIZATION PERIOD
On January 01, 1974 all Pakistani banks were nationalized through
Nationalization Act 1974. Under this law all Pakistani banks became a public
property. All small banks were merged in bigger banks to create 5 major Pakistani
banks Pakistani banks. These banks were to control by Pakistan Banking Council.
There are still controversies about this act of government as whether it contributed in
success of failure of banks. However the major changes after nationalization were as
follows:
However the effect of expansion was enormous and it can also be depicted
with the help of table 2 which shows the deposit & branch positions of different
nationalized banks.
No. of Branches
HBL
1926
153,431
NBP
1448
128,679
UBL
1684
87,482
MCB
1288
50,013
ABL
750
33,757
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TOTAL
C)
7096
453,362
Specialised Banks
Foreign Banks
(22)
NBFIs
- Modarabas
- Leasing companies
- Mutual funds
- Specialised financial (DFIs)
- Investment banks
- Housing Finance Companies
Commercial Banks
Domestic Banks
(25)
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HBL was the first commercial bank to be established in Pakistan in 1947. Over the
years, HBL has grown its branch network and become the largest private sector
bank with over 1,450 branches across the country and a customer base exceeding
five million relationships. With a presence in 25 countries, subsidiaries in Hong Kong
and the UK, affiliates in Nepal, Nigeria, Kenya and Kyrgyztan and representative
offices in Iran and China, HBL is also the largest domestic multinational. The Bank is
expanding its presence in principal international markets including the UK, UAE,
South and Central Asia, Africa and the Far East. Key areas of operations encompass
product offerings and services in Retail Banking. HBL has the largest Corporate
Banking portfolio in Pakistan with an active Investment Banking arm. SME and
Agriculture lending programmes and banking services are offered in urban and rural
centers. In the UK and GCC, HBL focuses on trade finance and remittances for the
South Asian Diaspora in addition to basic banking facilities. HBL has always been a
bank and a brand for the masses, with a history that is inextricably linked with the
history of Pakistan itself. As it continues to grow, both locally and abroad, it strives to
embody its brand personality: honest, approachable, and inclusive. HBL is currently
rated AA+ (Long term) and A1+ (Short term)*. It is the first Pakistani bank to raise
Tier II Capital from external sources.
Job Report
established with a paid up capital of Rs. 2.5 million. At an early stage, the number of
its branches was only 12.
HBL established operations in Pakistan in 1947 and moved its head office to
Karachi. Our first international branch was established in Colombo, Sri Lanka in
1951 and Habib Bank Plaza was built in 1972 to commemorate the banks 25th
Anniversary. With a domestic market share of over 40%, HBL was nationalized in
1974 and it continued to dominate the commercial banking sector with a major
market share in inward foreign remittances (55%) and loans to small industries,
traders and farmers. International operations were expanded to include the USA,
Singapore, Oman, Belgium, Seychelles and Maldives and the Netherlands.
Mission
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To make our customers prosper, our staff excel and create value for shareholders.
Values
Our values are the fundamental principles that define our culture and are brought to
life in our attitude and behaviors. It is these values that make us unique and
unmistakable. Our values are defined below:
Excellence
This is at the core of everything we do. The markets in which we operate are
becoming increasingly competitive, giving our customers an abundance of choice.
Only through being the very best in terms of the service we offer, our products and
premises - can we hope to be successful and grow.
Integrity
We are the leading bank in Pakistan and our success depends upon trust. Our
customers - and society in general expect us to possess and steadfastly adhere to
high moral principles and professional standards.
Customer Focus
We understand fully the needs of our customers and adapt our products and
services to meet these. We always strive to put the satisfaction of our customers
first.
Meritocracy
Progressiveness
Board of Directors
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10
NAME
DESIGNATION
CHAIRMAN
R. Zakir Mahmood
Mushtaq Malik
DIRECTOR
Ahmed Jawad
DIRECTOR
Yasin Malik
DIRECTOR
Moez Jamal
DIRECTOR
MANAGEMENT
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Chairman
President
Management
Hierarchy
Board of
Directors
SEVP
International
Operations
SEVP Corporate
Banking & Treasury
SEVP Retail
Banking &
Information
Technology
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DESIGNATIONS
1. PresidentSenior,2. Executive Vice President,3. (SEVP)Senior
4.
Corporate Information
Head Office
HBL Plaza
I. I. Chundrigar Road
Karachi-75650, Pakistan.
Tel : +92 (21) 2418000 [50 lines]
Fax : +92 (21) 9217511
Registered Office
4th Floor, Habib Bank Tower
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Jinnah Avenue
Islamabad, Pakistan.
Tel: +92 (51) 2872203
Fax: +92 (51) 2872205
Registrars
THK Associates (Pvt.) Ltd.
Ground Floor, State Life Bldg No. 3
Dr. Ziauddin Ahmed Road
Karachi, Pakistan.
Tel: +92 (21) 111-000-322
Websites
Corporate website:
www.hbl.com
Treasury website:
www.hblgtr.com.pk
Ebank (internet banking):
www.hblebank.com
Auditors
KPMG Taseer Hadi & Co.
Chartered Accountant
Global locations
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14
Swot analysis
Strengths
Strength can be defined as an area where a company is best at doing
something or a feature that puts the company at an advantage in comparison to its
competitors. HBL enjoys the following strengths:
HABIB BANK is a well established bank enjoying long history of over 65 years
of experience and profitable operation.
HBL is the largest private bank in Pakistan now and people trust is very high.
It has the largest branch network among private banks of Pakistan.
HBL has been very effective in controlling costs as it successfully restructured
itself after its privatization. During this process more than 1,600 employees
were relieved under a golden handshake scheme and 110 branches were
closed.
Excellent branches appearance gives an edge to HBL over other banks. HBL
has the ability to bring innovative products and services like personalized
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Weaknesses
A weakness is defined as an area in an organization where the organization is not as
good at doing something as its competitors or a thing which an organization lacks
thus putting the organization at disadvantage in comparison to its competitors.
Based on the above definition, HBL has the following weaknesses.
Lack of communication between bank and customers about terms and
condition of products and services. Like centralization of cheque book issuing
process.
Employees at branch level are not properly motivated to work by heart. They
take the all routine activities as a boring job.
Most of the employees lack managerial training as they are not properly
educated. Due to seniority, they have moved up on the hierarchy line to
Grade-I, II or III positions having hardly bachelor degrees. This type of senior
staff cannot apply the modern and innovative techniques of management in
decision making.
Mission of HBL is not well defined.
Though HBL is second largest bank in Pakistan, yet the fact remains that it is
not market leader as NBP. Its total assets are always less than NBP total
assets.
Now as it is a privatize bank that is why GOVERNAMENT support to HBL
decreased as it was in past
Opportunities
An opportunity can be defined as a change in external environment which if properly
exploited with the organizational strengths will result in enhanced sales, market
share, or income. Using its strengths, HBL can avail the following opportunities.
Opportunities require explanation therefore I have used headings instead of arrows
E-Banking
Generally speaking, three factors, quickness, easiness and cheapness
have become the catchwords for the competitiveness and usefulness of all the
business operations. Particularly it is commonplace today to say that banking is
undergoing a radical transformation. Only those banks that use their technology
resources effectively have the opportunity to secure real competitive advantage in
this fast-changing industry through real product or service differentiation.
High mark up rates
Of late markup rates have increased considerably. Present
rates are 4% above KIBOR i.e. 16% appx. High markup rate has decreased the
interest of people in loaning from from banks. Habib bank can increase its income by
offering loan at lower interest rate than other banks .
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ONLINE BANKING
It is doing banking transactions through our home P.C. The
banks that do business through net have WebsitesSo Habib bank should focus
heavily on providing online banking faculties to its customers. Currently it is doing the
same.
CORPORATE BANKING TERMINAL (CBT)
Large corporate customers can
log into the bank's database and have access to their accounts/transactions from
their business houses. This facility has still not been started for customers in
Pakistan. So Habib can focus on that.
AUTOMATIC TELLER MACHINE (ATM)
This system is known as "Any Time
Money" because it allows customers who have an ATM card to withdraw money at
any time from the bank without interacting with human teller.. It allows customers to
transact with the bank 24 hours a day and 365 days a year. They allow the
customers to transfer money to and from accounts to view account information, to
receive cash. It can also be used to deposit cheques and cash into the accounts.
No bank in Pakistan is offering this service currently. So an opportunity exists for
Habib bank to differentiate.
Rate of return
The range and choice of products available & offered by the
commercial banks is limited. Rates of Return / Profits on Deposits are so low and
unattractive that very limited options are available to the depositors. They do not
match the current rate of inflation. HBL differentiate and increase its deposit by
offering attractive rate of return on deposits.
Threats
Threat can be defined as a change in external environment which if not met with
proper strategies will result in loss of revenues, market share, or income. In the
context of HBLs external environment, the following potential threats exist:
Other private commercial bank with sound profitability is also a threat to HBL
e.g. UBL, Alfalah, MCB etc
The Rupee Travelers Cheque (RTC) sales volumes may be affected on
account of regulatory restriction imposed by SBP on issuance of large value
denominations.
For the last of 2 to 3 years, Pakistan is facing economic and political instability
which is a big threat.
Foreign banks are flourishing in field of consumer financing.
Afghan war and Iraq war has a deep effect on the economy of Pakistan, which
has affected HBL.
Increased regulations from State Bank of Pakistan may affect its business.
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Operations of HBL
1.
2.
3.
4.
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5.
6.
7.
1.
Basic function of the accounts department is to open new account and facilitate the
customer for the account opening purpose. There are certain formalities which are to
be observed for opening of an account with a Bank. These formalities in brief are as
under:
FORMAL APPLICATION:
The customer is to fill "Account Opening Form. It is a formal request by a customer
to the bank to allow him to have and operate the account.
Documents require for opening an account:
Copy of CNIC
Service certificate or student card.
Utility bill
Provisional receipt
KYC (Know Your Customer)
SPECIMEN SIGNATURE:
When the Banker is satisfied about the integrity of the customer, he agrees to open
the account. The Banker obtains the specimen signatures of the customer on the
signature book or on card.
Posting the account on the system:
After that officer has to post the new account on computer system for further
processing. During the process customer id and account number is generated. New
account remains active for one day after that it is blocked by the head office until
CNIC of the customer is verified from NADRA.
Cheque book issuing:
After the CNIC verification account opening officer has to issue a cheque book to
customer so that he can be able to make withdrawal from his account. Now a day in
Habib bank cheque book issuing process is centralized that take 06 days to
complete.
SECRECY:
The secrecy of depositors account is the. Responsibility of every official engaged in
the Bank service.
Types of accounts:
Individual accounts:
Individual accounts are the most common personal investment accounts. Opened by
single person.
JOIN ACCOUNT:
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A joint account occurs when two or more than two customers have one account. The
parties to a joint account are considered in law as they are one person.
Business accounts:
Business accounts can be opened by institutions, companies, partnerships, trusts
and non-profit organizations. Following documents are required.
BOOKS RELATING TO CUSTOMERS:
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 customer with the banks acknowledgement for receipt
of money to be credited his account.
Cheque Book
A chequebook contains a number of cheques, which is given to a customer upon
written request and after marking the payment for the chequebook. It enables a
customer to make withdrawal from his account or make payment to various parties
by issue of cheques.
GROUNDS FOR CLOSING THE CUSTOMERS ACCOUNT:
The banker may close the account of the customer due to following reasons:
i. Notice by a Customer
ii. Death of a Customer
iii. Customers Insanity
iv. By order of court
I) NOTICE BY CUSTOMER
The banker closes the account of the customer on the application of the customer for
closing his account.
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2. CASH department
ash Department is very sensitive and risky part of the bank. Very causations
and competent personnel are needed for the Job. HBL has really such a
diligent staff with appreciable competencies and will to do work. Main function
of cash department is to deal with cash payment and cash receipts.
3. CREDIT DEPARTMENT
1. Introduction
2. Securities.
3. Types of credits
INTRODUCTION
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The function of credit department is to lend money in the form of clean advances,
against promissory notes, as well as secured advances against tangible and
marketable securities. The bankers prefer such securities that do not run the risk of
general depreciation due to market fluctuations.
Common Securities for the bankers advances are as under:SECURITIES
1. Guarantees
When an application for advance cannot offer any tangible security, the banker may
rely on personal guarantees to protect himself against loss on advances or overdraft
to the applicant.
2. Mortgage
A mortgage is the transfer of an interest in specific immovable property for the
purpose of security the payment of money advanced or to be advanced by way of
loan, and existing or future debt, or the performance of an engagement which may
rise to a pecuniary liability. The transfer is called a mortgagor, the transferee a
mortgage.
3. Hypothecation
When property in the shape of goods is charged as security for a loan form the bank
the ownership and possession is left with the borrower, the goods are said to be
Hypothecated The essence of hypothecation is that neither the property in the goods
not the possession of them are possession is left with the borrower, the goods are
said to be Hypothecated the essence of hypothecation is that neither the property in
the goods not the possession of them are possessed by the lender, but the security
is granted by means of letter of hypothecation, which usually provides for a bankers
charge on the hypothecation goods.
4. Pledge
In a pledge the ownership remains with pledge, but the pledge has the exclusive
possession of property until the advance is repaid in full. While in case of the default
the pledge has the power of sale after giving due notice.
5. Promissory Note
Sometimes promissory note is also accepted as a security, "A promissory note is an
instruments in writing containing an unconditional undertaking signed by the maker,
to pay on demand or at a fixed or determinable future time a certain sum of money
only, to or to the order of certain persons, or to the bearer or the instrument." A
promissory note is incomplete until has been delivered to payee or the bearer.
Moreover, the sum promised in a promissory note may be made by two or more
makers who may be liable there on jointly and severally.
TYPES OF ADVANCES
The advances which are given by Habib Bank Limited are as under:1. DEMAND FINANCE (Ordinary Loan)
Demand Finances are those advances which are allowed in lump sum for a fixed
period and are repayable lump sum or gradually in installments.
TYPES OF ADVANCES
a. Demand Finance (Packing Credit)
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Loans to the farmers with holding up to 25 acres for meeting their short terms,
medium and long terms Agricultural production requirements, such as:
i.
ii.
iii.
iv.
Agricultural inputs
Tube wells
Live Stock Framing
Land improvement
5. INDUSTRIAL LOANS
Besides the short-term loans which play a part in working capital medium and longterm loans are also given to industrial sector for purchase of machinery and other
capital nature goods.
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a. Transfer Cheques
Transfer cheques are those cheques, which are collected and paid by the
same branch of bank.
b. Transfer Delivery Cheques
Transfer Deliver cheques are those cheques, which are collected and paid by
two different branches of a bank, situated in the same city.
c. Clearing Cheques
Clearing cheques are those cheques in which the payee (Person who deposit
cheques for collection) and the drawer of a cheque maintain the account with
different banks.
These clearing instruments are handed over to NIFT after posting necessary
stamps and checking them for any errors. Then further process of clearing is carried
on the behalf of NIFT.
5.Forex Department
International trade is growing and with the development of international trade
it has become more imperative. For countries to devote more and more attention to
the complicated mechanism of Foreign Exchange. It is more important in case of
developing countries. It is need of time, that a country should conserve its foreign
exchange resources.
MEANING OF FOREIGN EXCHANGE
The foreign exchange term refers to the principles that determine the rate of
exchange. It covers following three senses:
i. The mechanism or system by which international obligations or indebtedness
are fulfilled.
ii. The currency of one country is exchanged for that of another.
iii. The principles on which the people of world settle their debts to one another.
Letter of Credit:
It is a negotiable instrument through which the bank of the exporter deals with bank
of the importer through the guarantee of a bank. There are different parties involved
in the L/C, e-g importer, exporter, importer bank, exporter bank, and advisory bank.
LC involves banking channels in foreign trade to mitigate risk.
The procedure of opening of an L/C is as follow
The first thing is the Performa invoice. The Performa invoice is a document
(say a clip), which is, sends by the exporter to the importer and includes the
information like. Descriptions of goods, what type of goods you are needed
and what are the quality, rate and originating country etc.
Before to open a L/C the bank also consider that the goods which the importer
is importing is allowed by govt. of Pakistan or not. Because the importer is not
allowed to import that goods which are prohibited by the Govt. of Pakistan.
The importer is asked to show the membership certificate of any chamber of
commerce and industry affiliated with the Pakistan federation of chamber of
commerce and industry.
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Fill the import form of the govt. of Pakistan, which is the proof of this that there
is no objection on the goods, which the customer is importing.
What type of goods you are needed and what are the quality, rate and
originating country etc.
Necessary Documents required for L/C:
NTN
Tax Authority registration certificate
Chamber of Associations trade certificate
Type of Business
NIC
Margin
Registration No.
Application for L/C
On providing these documents the importer will be given the L/C form named as
IB-8.
Contents of IB 8
1. Request for LC
2. Rate
3. Importer and Exporters particulars
4. Amount
5. Terms
6. Partial Shipment (Allowed, not allowed)
7. Transshipment (Allowed, Not Allowed)
8. Port of Loading and destination
9. Payment Mode
I. Sight
On seeing the documents the importer has to pay.
II. At Sight and Negotiation:
It means that exporter will submit his documents with the bank and immediately asks
for payment.
III. Acceptance:
On showing the documents to the importer, the bank asks him to accept that he will
pay within 30, 60, 90, 120, 180 etc days.
10. Documents Required:
Certificate of Origin.
Commercial Invoice
Bill of Lading / Air way bill.
Charges:
For L/C following charges are applicable;
Commission
Postage
L/C Advising commission
L/C amendment Commission
L/C confirmation Commission
L/C Negotiation Commission
Payment Mode:
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Retail Banking
For
Individual Customers
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Deposit Accounts
Current Accounts
Make unlimited transactions while maintaining a low minimum balance every month.
HBL is currently offering three types of accounts in current account category. Their
detail and name is as under.
1. HBL BusinessValueAccount
2. Current Account
3. Basic Banking Account (BBA)
HBL BusinessValueAccount
Current Account
Savings accounts
Avail the flexibility of making transactions while earning profit on daily/monthly basis.
HBL is currently offering five types of accounts in savings account category. Their
detail and name is as under.
1.
2.
3.
4.
5.
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PLS-Savings Account
Terms Accounts
Invest your savings in HBL term deposits for a fixed duration and earn profit while
keeping your savings secure. HBL is currently offering one type of account in terms
account category. Their detail and name is as under.
1. HBL Advantage Account
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FC-SB
Savings Account offered in 3 currencies, USD (US dollar), EUR (Euros) and
and GBP
Tiered product, with rates depending on choice of currency and term
Profit paid on maturity only. No interim interest is payable.
*NOTE: All the rate and terms and condition are revised by HBL after every six
months periods. These rates are only applicable for period 01.07.09 to 31.12.09.
Further detail of terms and conditions about profit and rates is given in annex B.
Features
Choice of used, new local/imported and reconditioned imported car.
Repayment options ranging Upto 7 years.
Upto 85% of financing for the car of your choice.
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30
your requests and queries, track the status of your repayment/loan account
and avail other value-added services through HBL PhoneBanking.
Eligibility Criteria
How to apply
Just visit any HBL branch or Habib Bank Auto Finance Centre for details and
application.
Submit complete set of application without any charges to the branch or the
Auto Center.
Sign the necessary documents on approval of the application
Payment is released within 24 hours of the submission of post-dated cheques
and initial payment after approval of the request.
Documentation
Salaried Individuals
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31
HBL CarToCar is a revolutionary car financing offer. It makes the car of customer
choice affordable and practical with a buy back guarantee. HBL CarToCar offers
matchless features and unique options at the end of the lease. Now customer can
drive a new car at the end of every two years.
Features
Pay only for what you use
When customer lease a car under HBL CarToCar, he only pay for that part of the
cars value that he use during the lease term. The cars residual value (forecasted for
the end of the specific lease term) is agreed with him at the start of the lease term.
This amount is deducted from the car price thus lowering the finance amount. This
finance amount is based only on a part of the cars value and not the full value of the
car. Therefore, HBL CarToCar offers very low installments as compared to any
conventional financing.
Upgrade of lifestyle
HBL gives customer the guarantee that if he wishes to return the car to HBL at the
end of the lease term, he will not have to pay off the cars residual value. Instead,
HBL will directly settle this outstanding liability for customer under the buy back
guarantee. Hence, he can upgrade to a new car as frequently as two years without
any complication and hassle.
Affordability
With HBL CarToCar, customer only has to pay the difference between the car price
and the pre-agreed residual value to the bank. As a result, the monthly installment
may even be 40% to 50% less than that of conventional financing.
Flexibility
HBL CarToCar offers customers several choices at the end of the lease term:
Upgrade - Simply return the car to HBL and drive a new one home
Walk away - Return the car to HBL and end the lease
Buy - Keep the same car. Just make a one-time settlement of the cars residual
value to HBL or pay the same in easy installments over a specified extended period
of time
Sell - Enjoy the gain from selling off the car at a higher price in the market than
what you ay HBL as the residual value
Eligibility Criteria
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Documentation
Salaried Individuals
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33
Benefits
Buy now, pay later
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 21
credit free days to make the payment from the statement date. Customer should pay
at least 3 days in advance if he makes your payment by cheques to allow enough
time for clearance.
Pay as much as customer wants
A customer can pay the entire or as little as 5% of the outstanding balance in his
statement. The unpaid amount will be transferred to his next months statement
along with applicable services charges.
Cash advance
Customer can go to any specified HBL branch and withdraw cash at the counter. He
can also go to any 1Link ATM in Pakistan and more than 1,000,000 ATMs worldwide
displaying the Visa/Plus logo. Withdraw cash up to the available cash advance limit
on his HBL Credit Card for a charge applicable from the withdrawal date.
Balance transfer facility
Card holder can pay off balances he owes to other banks through his HBL Credit
Card at a lower service charge.
Security
Card holder cannot lose cash if he doesnt carry it! In the event that his card gets
stolen/lost, he should call HBL PhoneBanking to have his card blocked immediately.
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Features
No Interest
HBL Visa Debit Card is the perfect way of paying for purchases as it gives access to
the exact amount of money a customer needed, as and when he needs it. There is
no interest or credit on payments because he spends from the money available in his
personal HBL Account.
Ease & Security
HBL Visa Debit Card offers ease and convenience because card holder doesnt have
to visit an ATM to withdraw cash. A single swipe automatically debits the exact
purchase amount from his personal HBL account.
Spending Limits
The daily spending limit at shops and outlets on HBL Visa Debit Card is Rs. 25,000100,000. (These figures are subject to the balance available in account).
Free Account Statement
HBL cardholders receive a free monthly account statement for their Debit Card and
ATM transactions to help them keep track of their spending.
International Recognition & Acceptability
HBL Visa Debit Card is accepted at over 20 million Visa merchants worldwide,
including over 10,000 merchants in Pakistan. As an ATM card it is accepted at more
than 1,000 1-Link & M-Net ATMs in Pakistan and 864,000 Visa ATMs worldwide. No
matter where card holder is, with the HBL Visa Debit Card, HBL is always with him.
No Liability
In case of a lost or stolen card, card holders are protected against fraudulent
transactions made on their card after they report the incident.
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Features
T-PIN Generation
Customers TPIN (Telephone Personal Identification Number) is generated the first
time he calls and he can use it as your password for verification purposes, selfservice banking through IVR and additional services through HBLs PhoneBanking
Officers. Customer can change his TPIN anytime he like.
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Balance Certificate
Cheque Book
HBL PhoneBanking services for HBL CarToCar and Car Loan customers
HBL CarToCar and HBL CarLoan customers can enjoy the following services
through HBL PhoneBanking:
Balance Inquiry
Last 5-10 Transactions
Statement Generation (Email and Fax)
Account Maintenance
Assistance in case of Car Theft/Damage
Hbl bancassurance
HBL and New Jubilee Life Insurance Company Limited (NJI) introduce Amaan
(Retirement Plan) and Tabeer (Child Education & Marriage). These products have
been designed keeping HBLs customer base as the focus and will provide life
insurance along with an investment option.
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Lockers
Lockers are available in many of the HBL branches in different sizes like small,
medium and large; some branches also have extra large and cubical lockers. Except
rural areas because of security reasons.
Charges
Size
Key deposit
(refundable)
Annual rent
Rs.
SMALL
2500
2750
MEDIUM
3000
3850
LARGE
4000
6050
Key deposit is refundable at the time handing over the locker to bank. For the staff of
HBL key deposit is not required and also the annual rent is very low for them.
Services
HBL provides the following services to meet customers funding requirements:
Ahsen Ali,Roll no:509
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38
Services
HBL offers financing for the following:
Working Capital
Procurement of Inventory
Receivables
Procurement of Machinery
Ahsen Ali,Roll no:509
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Job Report
3.Saddar, Karachi
11.S.I.T.E. Karachi
Products
HBL ZaraiBanking enables farmers to invest in premier quality seeds, fertilizers,
pesticides, agricultural implements and non-farm setups through its various product
programs.
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Crop Inputs
Crop specific finance for purchase of Agriculture inputs such as seed, fertilizer,
pesticide and other related inputs.
Farm Implements
Finance available for purchase of farm implements & machinery like combined
harvester, sprayers, ploughs, tube wells and other crop-related tools/implements.
Tractors/Agricultural Vehicles
Finance available to individual farmers, self-employed tractor operators, providing
the option to select vehicles from a range of different manufacturers.
Livestock
Finance available for feed, medicines, raw material, raising charges and other
related activities.
Poultry
Finance available for all poultry related activities including poultry farm
construction/equipment, hatchery plant & machinery, poultry feed, poultry medicines,
composite feed production, poultry processing and other related activities.
Fish Farming
Finance available for inland fish farms as well as deep-sea fishing. This includes
procurement of boat, fish locating equipment, nets & ropes, ice maker, fish farm
water solution, hatchery construction/equipment, purchase of medicines / feed and
other related activities.
Group Lending
Joint finance facility for a group of farmers with small land holdings for working
capital requirement.
NOTE: These finances may be availed under Demand Finance or Running Finance
categories. Demand Finance is usually available for short term financing needs while
Running Finance is available on the basis of revolving limit.
Islamic banking
Islamic Banking is a growing market segment that offers attractive opportunities to
potential and existing customers. At HBL, Islamic Banking offers Shariah compliant
products and services to meet the short and long term requirements of business,
trade and industry.
Shariah Compliance
HBLs Islamic Banking products are in strict compliance with the tenets of Shariah
and bear Shariah Compliance Certification from an independent Shariah Advisor.
Their Shariah Advisor has in depth experience in Shariah rulings (Fatawa) and
teachings at different forums with qualifications of Dars-e-Nizami, M.A and L.L.B.
HBL also have a Shariah Scholar, as member of their Shariah Supervisory
Committee to ensure a sound Shariah Compliance mechanism, giving prompt
responses to customers needs and access to Shariah knowledge.
Ahsen Ali,Roll no:509
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41
Branch
Address
Finlay House
Ground Floor
I.I Chundrigar Road
Karachi
Learning as an EMPLOYEE
As every body knows that "Knowledge without practice is sterile ".I JOINED HBL ON
28TH, May, 2008.During my job I got a chance to work and learn in following
departments of the bank:
Foreign exchange department
Bills clearing department
Credit department
I.T department
Cash department
Accounts, ATM and Lockers department
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42
functions of foreign exchange department and how to perform these functions during
my work in the department.
My duties in the department were related to the followings:
Foreign currency exchange rates.
Letter of credit (L.C) both opening and negotiation.
Letter of guarantee
Issuing check books for foreign currency accounts
Remittances applications.
Learning
Opening of letter of credit. Bank starts working on opening process after an
application is received from the buyer (importer). I came to know about the process
of opening of L.C, documents that bank demands from applicant, form used for that
purpose, getting A.T (Availance Ticket) from regional head office and scanning and
mailing the documents to head office Karachi for the purpose of getting approval,
and payment on maturity date. Opening and negotiation both are centralized process
in Habib bank therefore approval from head office is required.
Negotiation of L.C. Bank starts negotiation of letter of credit (which would be
already opened by importers bank) after the application from seller (exporter).
Before sending the documents for payment to importer bank negotiator bank must
ensure that the entire document mentioned in Claus 46A of the L.C are attached and
complete.
I also worked on Remittances application. An applicant who wants to transfer
funds abroad must have a foreign currency account in the bank. Because State Bank
of Pakistan only allow account to account transfer of funds abroad through banks.
And I came to know about the process and information required to fill the form. I also
came know about the process of issuing foreign currency accounts cheque book to
customers. I learnt many things about the mechanism of foreign trade.
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43
processing. These clearing instruments are delivered to their respective banks for
clearance by NIFT. I also learnt in case of Bankers Cheques how to verify signature
from the book in which all the signatures of authorized persons of HBL are given with
their specific code. And I also worked on OBC (Outward bank collection) forwarding
schedule. I came to know the process of sending cheques or other clearing
instruments for clearance to zonal branch of another region.
Filling vouchers
Assigning OBC numbers
Making entries in OBC register
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of HBL and also I can proudly say that I have my own share of working in
computerizing HBLs record.
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46
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Job Report
2008
2007
15,614,020
10,084,037
75,180,436
63,237,429
20.76
15.94
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Job Report
2007
15,614,020
10,084,037
757,928,389
691,991,521
2.06
1.45
Return on Assets
Net Profit after tax X 100
Total Assets
Net Profit after tax
Total Assets
Return on Assets
Interpretation:
Return on assets ratio shows an improving trend. This ratio shows that the both the
Net
2008
2007
456,355,507
382,172,734
757,928,389
691,991,521
60.21
55.22
profit and Total Assets has improved in 2008 than 2007. But net profit has increased
more rapidly.
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Job Report
2008
2007
Net profit
15,614,020
10,084,037
Interest Income
43,970,884
33,250,937
35.50
30.32
Net profit /
Interest Income X 100
Loan to Asset Ratio is showing increasing trend in 2008. This is because advances
are increasing more rapidly than assets of the bank.
Interpretation:
Net profit Ratio is giving upward trend. This trend is observed due to increase in Net
profit but on the other hand the expenses decreases which shows an efficient
management.
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Job Report
2008
2007
456,355,507
382,172,734
597,090,545
531,298,127
76.43
71.93
Loan to Deposit
Loans/Deposits*100
Advances
Deposits
Interpretation:
Loans to deposit ratio show an increasing trend in 2008 as compare to 2007. This
trend is observed as the advances and deposits both are increasing but advances
are increasing more rapidly than deposits.
(Rs. In 000)
3,384,623
45,063
3,339,560
4.40
Financial highlights
2008
In the following diagram HBLs balance sheets and income statements items for
2008 are compared with the items of 2007 and percentage growth is also calculated.
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51
Achievements
HBL - 'The Best Emerging Market Bank in Pakistan'
HBL has been selected as The Best Emerging Market Bank in Pakistan by Global
Finance Magazine.
Global Finance magazine has named the Best Emerging Market Banks in Asia in
an exclusive survey to be published in the May 2009 issue. Global Finance editors
with input from industry analysts, corporate executives and banking consultants
selected the best emerging market bank in the region and in 20 countries. Global
Finance reports on the international finance sector, covering topics such as
corporate finance, joint ventures and M&A, country profiles, capital markets, investor
relations, currencies, banking, risk management, custody, direct investment, and
money management. The magazine also holds several awards ceremonies
throughout the year to recognize the winning financial institutions and companies.
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52
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Recommendations
As we seen from the previous analysis of the financial statements I have realized
that that Habib Bank is performing very well since its inception. It is quite difficult to
give suggestion to improve the banking conditions Habib Bank Limited. As we know
that nothing is perfect, there is always a room for improvement, so I will recommend
following suggestions for HBL:
1) Employees Training programmes must be introduced on continuous
basis so that Employees have understanding with the latest
developments especially with the customers.
2) Bank should introduced incentive plans for employees on regular basis
so that if employees may work whole heartedly for the welfare of their
organization. While giving incentives qualification, work, experience,
hard work and such other factors must be considered.
3) Mismanagement of resources must be avoided as much as possible as
it decreases profit but also discourage hard worker and honest
employees.
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3. Loss:
When the markup amount remains outstanding above
the 180 day then the finance is marked as loss.
th
All the finances in which markup is stuck and fall in particular categories
are called classified amounts and are treated as NPL.
Remedies to avoid NPL:
Banks are taking special measures to avoid NPL
by applying different warning systems given by State Bank of Pakistan.
SBP has introduces early warning system which is applicable for all
commercial/scheduled banks. According to that system any account
which will fall in any of the above classification will be regularly
monitored and kept in continuous observation. More over these
accounts will be in systems early warning category.
Glossary
GCUF:
D.D:
A/C:
O.B:
O.B.C
P.L.S:
Dr:
Cr:
Ahsen Ali,Roll no:509
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Job Report
C.A:
F.L:
L.G:
D.F:
L.C:
R.F:
F.A.P.C:
HBL
ABL
MCB
NBP
UBL
NIFT
(pvt) LTD.
Current Account
Flexi loan
Letter of Guarantee
Demand Finance
Letter of Credit
Running Finance
Finance against Packing Credit
Habib Bank Limited
Allied Bank Limited
Muslim Commercial Bank
National Bank Limited
United Bank Limited
National Institutional Facilitation Technologies
Bibliography
Material on these books, articles and websites has helped me a lot in preparation
this report
Books
HBL Corporate Profile 2008
HBL Annual Reports 2008 and 2009 first Quarter
Websites
www.hbl.com
www.habibbankltd.com
www.hblasset.com
www.investopedia.com/articles/07/banking.asp
wiki.answers.com/Q/Evolution_of_banking
Index
Annex A:
JOB CERTIFICATE
Annex B:
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57
INDICATIVE RATES
Annex C:
ACCOUNT OPENING FORM
Annex D:
REMITTANCES APPLICATION
Annex E:
DEBIT CARD APPLICATION FORM
Annex F:
DEPOSIT SLIP
Annex G: