Professional Documents
Culture Documents
Habib Metro Bank 1
Habib Metro Bank 1
Habib Metro Bank 1
ACKNOWLEGEMENT:
We are honoured to take this
opportunity to dedicate our this effort and
dedication to our mentor and our highly
respectable teacher Mam Talat Rehman, who
taught us the the new ways to explore
different aspects of an organization and we
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Introduction of organization:
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EXTERNAL/ENVIRONMENTAL
Metro BANK:
FACTORS
EFFECTING
Habib
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The second external pressure faced by the bank is that not only
Habib Metro but all the commercial banks of Pakistan are being
governed by regulatory authority State Bank which is basically a
Government bank, all the policies and circulars and changes in
working routines are made due to direction by State Bank. State
Bank take decisions which become mandatory for all the
commercial banks to follow them. State Bank is a governing
authority and HMB have direct impact on its procedures if State
Bank take any action.
Than the other factor that affects HMBs decisions are the
government policies. Like, recently government put withholding
tax on with-drawls and onlines which in result affected the banks
deposit mobilization. People became less willing now to move
their deposits from one bank to another because of this tax. They
are not willing to move their funds in other banks without any
strong reason or need.
Habib metro is also impacted by the economic conditions. People
make investments in companies and dont go for term deposits
when the economic conditions are good and companies are giving
high profits and the reason is HMB term deposits offer people
riskless investments and when the risk is low the return is
obviously low. So when the economic conditions are good making
the investments becomes a better option for people to earn high
profits instead of going for risk-free investments because they
have opportunity to earn high returns.
In past few days the conditions of Karachi were not good and
there were strikes happening in Karachi which in result impacted
the bank because it was closing its branches in that area and
when the branches are closed the bank is unable to facilitate
customers and make transactions happened and that in result
impacted the banks profitability.
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PURPOSE OF CHANGE:
Inorder to introduce change within the organization means that
the organization wants to change the status quo and move
towards new and latest perspectives.
Habib metro also took these initiatives for increase in productivity
and efficiency.
The first change initiative has been taken by the bank for safety
and security purposes, now a days, the banking and transaction
frauds are at its peak, and the bank also faced such situations on
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DESCRIBE CHANGE:
Basically change was a kind of programmatic change, as
because both the biometric verification devise and the software
Oracle was already established and was complete functionary at
the time of implementation, all a bank was to just give training to
the employees how to use the software and to bring about
awareness among the customers that the biometric verification is
for their own safety and security, the bank has nothing to do with
the insult or disgrace of their valued customers. . Some old
employees who cant adopt the change like any new technological
innovation. It will be difficult for them to learn these technologies
so they resist and forces to follow the old pattern. They are having
threats of losing their jobs and they follow the old patterns.
Now, if we talk about the type of changes then we can say that
change was radical, because change has been quickly
implemented within the organization.
As the biometric
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for the CEO than it would for a frontline supervisor, but in the end
you must connect effectively managing change with what the
person cares about. While, for this thing, the bank hired outside
consultant/expert who will play a role of not only provide training
to the employees but also acts a change leader who is being
assisted by a team of managers who gives suggestions and core
information to the consultant because he do not know much
about the bank and its operations and about the employees
aswel, so basically, the most important task is to change the
existing mental models of the employees and the customers
regarding the new change perspectives.
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This was one of the way to drive the employees towards the
change initiatives and to unfreeze the status quo and current
practice being undergo by the employees.
CHANGING:
Now, this is the phase where the actual change initiative took
place and the management actually implement the biometric
verification devise and the Oracle software and all the activities
and documentation related to these changes were undertaken as
to get the outcomes of this change as soon as possible.
REFREEZING:
Now, when the change process has been completed in the bank,
Its time to penetrate that change among the corporate culture
and the mental models of the employees so that they completely
accept the change as it is, and the bank will get the desired
outcome and to fulfil the reason they took this change initiative.
SWOT ANALYSIS:
STRENGTHS:
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capital base.
Rank in top 10 bank of Pakistan.
Continuous growth in ROE.
The banks management realizes the necessity of existence
of effective internal controls to ensure smooth operations in
the current technical and swift business environment.
Loyal management.
The bank has efficient and experienced management making
significant.
Credit rating in long-term AA+ and in the short term
A1+.
The financial statements, prepared by the management of
the bank present fairly the state of affairs.
Loans are given only to known, reputable clients to avoid
chances of fraud. Very low nonperforming loan.
Effectively handled the current economic recession.
Bank is continuously focusing on developing new and
innovative products to attract their target market.
Strong customer relationship.
Asset utilization is very good.
WEAKNESSES:
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OPPORTUNITIES:
Scope in Islamic Banking.
To go global fully
Low exposure to consumer banking providing opportunity to
explore the segment.
The year 2010 will prove to be another demanding year for
the bank with scattered. Diversification, innovation and
mission driven approach are the key to success which bank
should adopt.
Progressive but cautious business expansion with strategic
branch network extension and introduction of innovative
products in all areas of business. Branch network need
extension.
Should emphasize much on e-banking. Profit margin will be
good.
The bank being Swiss incorporated, it bank follows dual
banking regulation i.e. of Pakistan as well as Switzer-land
which attracts foreign investors.
SBP policy to allow Islamic Banking business separately.
Bank introduces Islamic banking in country that attracts
large number of people.
Greater profitability can be achieved through strong internal
control.
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THREATS:
Adverse impact of Credit Crisis can badly effect on HMB.
Facing a strong competition by its competitors. High
reliability on only one market segment i.e. Textile. (54%)
Inconsistency in government policies.
Increasing competition in the banking sector. Entry of many
foreign banks.
Strict policies of the State Bank of Pakistan.
Geopolitical condition of country.
Global liquidity crisis has constrained banks to stop lending.
Current economic crunch.
Political instability.
Rising deposit rates.
Foreign banks in market having more marketing budgets.
People losing trust in banks.
Decline in private and public sector credit due to tight
monetary policy.
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Conclusions:
It was simply a matter of time, performance and politically
positioning oneself for the change to be at the right place at right
time Habib Metro Bank can certainly improve the quality of its
operations by giving proper training to employees regarding
technology, customer services and other related aspects of the
Bank.
Habib metro is the one of the largest bank in Pakistan with a huge
network, largest number of branches, it is very difficult to control,
organize and keep the institute on a progressive way. The role of
change management is just like a hub to manage its human
capital in order to meet the organizational goals and objectives.
And the growth and development should be the result of both the
bank and employees responsibility.
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