Professional Documents
Culture Documents
Human Resource Management at HBL PAKISTAN
Human Resource Management at HBL PAKISTAN
After Pakistan was born in 1947, Habib Bank, at the urging of Governor-General Jinnah,
moved its headquarters to Karachi, Pakistan's first capital. This gave Karachi its first
commercial bank of the newly formed Islamic Republic of Pakistan. HBL was
incorporated on 25th August 1941 and operated in the private sector until its
nationalization in 1974. HBL has been approved for privatization and the privatization
commission has selected a Financial Advisor to prepare a comprehensive plan and assist
in the sale process. The government has appointed a professional management team to
restructure the bank and to recover and clean its doubtful and classified portfolio.
Habib Bank offers the basic range of banking services to its customers, to include
Commercial, Corporate, Investment, and Retail Banking, Treasury, and Islamic Banking.
Company Description:
HBL is a Banking Company, which is engaged in Commercial & Retail Banking and
related services domestically and overseas.
Brand of HBL:
HBL says “Our brand identity is the outward expression of what we stand for as an
organization. This is summarized in our vision, mission and is supported by our values.”
Vision of HBL:
“To make our customers prosper, our staff excel and create value for
shareholders”
Values of HBL:
UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN
M. ISMAIL
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HBL’s values are the fundamental principles that define its culture and are
brought to life in its attitudes and behavior. It is company’s values that make
its unique and unmistakable. Company values are defined below:
Excellence
Integrity
Customer focus
Meritocracy
Progressiveness
Excellence:
This is at the core of everything HBL does. The markets in which HBL operates are
becoming increasingly competitive, giving their customers an abundance of choice. Only
through being the very best - in terms of the service HBL offers, its products and
premises - can it hope to be successful and grow.
Integrity:
HBL is the leading bank in Pakistan and its success depends upon trust. Its customers -
and society in general - expect it to possess and steadfastly adhere to high moral
principles and professional standards.
Customer focus:
HBL understands fully the needs of its customers and adapts its products and services to
meet these. HBL always strives to put the satisfaction of its customers first.
Meritocracy:
HBL believes in giving opportunities and advantages to its employees on the basis of
their ability. HBL believes in rewarding achievement and in providing first-class career
opportunities for all.
Progressiveness:
HBL believes in the advancement of society through the adoption of enlightened working
practices, innovative new products and processes, and a spirit of enterprise.
Major Local Market Presence: HBL is one of the largest commercial banks in Pakistan
representing approximately 20% of the assets and deposits of the banking sector.
A Household Name: HBL's brand name is well established. It has an extensive domestic network
of 1705 branches reaching virtually every segment of the Pakistani economy.
A Full Service Bank: HBL provides its customers a complete range of banking products
and services including retail banking, corporate and institutional banking, trade finance,
consumer finance and credit cards.
An International Bank: HBL has a presence globally through an extensive international branch
network described in the table below;
.
Country Status Opened Branches
AFRICA
Kenya Branch Operation 1956 5
Mauritius Branch Operation 1964 4
Seychelles Branch Operation 1976 1
Sweden Branch Operation 1982 1
ASIA
Bangladesh Branch Operation 1976 2
Fiji Islands Branch Operation 1991 1
UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN
M. ISMAIL
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Maldives Branch Operation 1976 1
Singapore Branch Operation /OBU 1971 1
Sri Lanka Branch Operation 1951 3
Karachi EPZ Branch Operation 1983 1
MIDDLE EAST
Bahrain Branch Operation /OBU 1969 3
Lebanon Branch Operation 1964 1
Oman Branch Operation 1972 11
UAE Branch Operation 1966 8
EUROPE
Belgium Branch Operation 1975 1
France Branch Operation 1980 1
Netherlands Branch Operation 1979 1
Turkey Branch Operation 1983 1
UK Branch Operation 1961 6
USA Branch Operation 1971 1
Ownership Structure
Board of Directors
Sultan Ali Allana
Chairman
R. Zakir Mahmood
President & CEO
Iain Donald Cheyne
Director
Sajid Zahid
Board Committees
Audit Committee
Mr. Iain Donald Cheyne
Chairman
Mr. Sajid Zahid
Member
Mr. Ahmed Jawad
Member
Risk Management Committee
Mr. Sultan Ali Allana
Chairman
Mr. R. Zakir Mahmood
Member
Mr. Mushtaq Malik
Member
Human Resource Committee
Mr. Sultan Ali Allana
Chairman
Mr. R. Zakir Mahmood
Member
Mr. Sajid Zahid
Member
Group Chief Financial Officer
www.hblibank.com
Famous Controversy:
Habib bank has long been scrutinized by intelligence officials monitoring terrorist money
flows.
On July 18, 2007, Mariane Pearl, the widow of Wall Street Journal reporter Daniel Pearl,
filed a lawsuit against Habib Bank Ltd over the 2002 abduction, torture and murder of her
husband. The pending lawsuit alleges the bank and its subsidiaries knowingly conducted
financial transactions and provided account services on behalf of Al Akhtar Trust, a
Pakistani based charity trust. Al Akhtar Trust’s accounts have been used to provide
financial support to terrorists. However, HBL claims to have froze Al Akhtar Trust’s
accounts several years before Daniel Pearl’s abduction.
On October 24, 2007, Pearl's lawsuit against HBL was formally dropped. Lawyers for
Mariane Pearl noted that Habib Bank Limited and the other defendants in the case had
not answered the lawsuit filed in July (although Habib Bank Limited had denied ever
supporting terrorism) , but they otherwise did not explain their reason for dropping the
action.
The U.S. Federal Reserve Board and the New York State Banking Department criticized
Habib Bank Limited for failing to address deficiencies in its compliance with U.S. anti-
money laundering laws. After the U.S. Federal Reserve Board threatened formal charges,
though none were filed, Habib Bank Limited agreed to strengthen the banks compliance.
More specifically, the Fed ordered HBL to strengthen its transaction monitoring systems
and the filing of "suspicious activity reports" on transactions that do not fit the routine
business patterns of the bank's customer base.
Habib Bank Limited has also been said to be involved in large sums of money
transactions by the Pakistani intelligence agency the Inter Services Intelligence (ISI).
UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN
M. ISMAIL
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This is further supported by the recent book by L.K. Advani "My Country My Life" in
which he points out that the ISI's dealings in drugs overseas mainly involves transactions
through Habib Bank Limited and the funds are then transferred by various bank channels
to separatist groups in various states in India.
Growth
Maintaining a mix of short & long term deposits to minimize the cost of funds.
Asset Quality
Stringent Risk Management
Unified IT System
Intensive Training and Professional Recruitment
Focus
Re-organization of the Consumer and Retail Banking Businesses
IT system enhancement
Product offering enhancement
Advancement of operations in urban areas
Businesses
Retail Banking
Deposit Mobilization
Largest branch network in Pakistan
Urban - 703 branches 80% deposits and 94% advances
Rural - 734 branches 20% deposits and 6% advances
Largest customer deposit base: 5mn+
Low cost/stable deposits
48% of total deposits
Agriculture Financing
Investment Banking
Corporate M&A Advisory, Debt and Equity Capital Markets, Private Placements,
Leverage Finance and Privatization Advisory
Established itself as a premier player in a short time
Handled over 80% of all major transactions taking place in Pakistan.
Commercial Banking
Middle Market (customers with annual revenue of more than US$ 5 mn)
Leading position in a competitive market with US$ 350 mn portfolio
18 branches, 1500 customers
Consumer Banking
Personal Loans, Auto Finance, Consumer Durables, Housing Finance and Balance
Transfer Facility
VISA Debit Card, Credit Card & CarToCar launched in 2005, 2007 & 2008 respectively.
Treasury
UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN
M. ISMAIL
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Money market, Forex and Primary dealer in government paper
New products launched: Derivatives (Interest Rate Swaps, FRAs, etc.)
Domestic Subsidiaries
Asset Management
Launched Income, Stock Market and Multi Assets Funds.
Habib Currency Exchange (Pvt.) Ltd.
Sale/purchase of foreign currency & remittances.
First Habib Modaraba
Leasing business with annual growth of over 15%.
The HRM department plays an important role in value of any company. HBL has very
active and one of the best HR department in Pakistan as well as world wide. The structure
is as the President is assisted by ten Senior Executive Vice-Presidents and a staff of 29
Executive Vice Presidents, 154 Senior Vice Presidents, 420 Vice Presidents, 831 Assistant
Vice Presidents, 2350 officers Grade-I, 4108 officers Grade-II, 3364 officers Grade-III
and 10658 Clerical/Non-Clerical employees. The total staffing as per 1999 balance sheet
figures is 23022.
Diversification strategy
Geographic expansion strategy
Geographic expansion strategy: It takes the company abroad. Acting upon this
strategy HBL has been expanded abroad. The abroad branches are mentioned above in
introduction section. HBL is planning to expand its business and branches in more
countries.
Cost leadership
Differentiation
Focus
Cost leadership: HBL aim is to become low-cost leader in banking sectors that is why
HBL is providing effective services in low cost than other banks in Pakistan.
Focus: HBL provides banking services to its customer in that way that customer cannot
get that services from other competitors.
Functional Strategy:
HBL identifies basic courses of action that each department pursues in order to get basic
goals and objectives of HBL. Harmony of departments towards HBL’s single goal makes
it unique in the competitive market.
Job Analysis:
The interview
Questionnaires
Questionnaires:
In questionnaire the employees solve the fill out questionnaires to describe their job-
related duties and responsibilities. The formats of questionnaires are either structured or
open ended.
Following methods are also used in job analysis which are called quantitative job analysis
techniques
A standardized method by which different jobs can be quantitatively rated, classified, and
compared.
Job description:
After getting job analysis information the next step is to describe job description which
contains the points of job identification, job summary, chain of command relationships),
responsibilities and duties, standard occupational classifications and standard of
performance and working conditions.
Job specifications:
After formulating job description the next step taken is job specification in which the
traits of employees are defined who are assumed suitable for the job.
3. Performance Appraisal
4. Compensation
5. Employee relation
The diagram below represents the process on which HBL’s selection is based. This gives
an overview to potential candidates as to the steps involved in becoming a part of the
HBL team.
HBL’s Entry-Level Programs are structured to ensure that you will quickly assume
responsibility for concrete tasks and important projects. Rotational assignments across
Management Trainee:
HBL’s Management Trainee (MT) program looks for highly motivated individuals who
exhibit the potential to excel as future leaders. The program is geared towards providing
challenging work assignments complemented by a learning component for select
individuals from reputable universities. At HBL, the MT program offers extensive
interactive classroom training, on the job rotations and personal mentoring from senior
management to provide a comprehensive learning experience. The objective of the
program is to realize potential and translate the experience into a successful banking
career.
Management associate:
HBL’s Management Associate Program is a training and rotational program focused on
dealing with branch banking requirements. It provides accelerated development
opportunities across HBL’s branch network of Retail, Corporate & Commercial banking.
During this program, candidates are assigned with challenging business scenarios to
enhance their critical and analytic skills. Another crucial element of the program ensures
C-Technology contains
1. Knowledge of computer
2. Knowledge of internet & E-mail
D-Customer contains
E-Personal contains
1. Health & energy
2. Appearance
3. Integrity & loyalty
4. Grooming
5. Manner of speech
6. Attitude
7. Intelligence
8. Leave record
9. Attendance record
10. Punctuality
Each factor is marked tick against level of achievement and in the end total points scored
is written in the specific box. Also the signatures of appraisee and appraiser are taken.
FORM B3:
This form contains two big boxes. First box is about Development Plan/ Supervisor
comments. In this box supervisor gives comments about appraisee strengths and further
appraisee’s development needs (need to improve academic & professional qualification).
Second box is called overall assessment box. In this box appraiser gives the overall
performance grade to appraisee according to B2 form and the grade is given in form of
A, B, C, D. Then comments of appraisee is also taken in form of agree/disagree. Then
overall assessment is reviewed by reviewer and reviewer gives its comments too, but it is
not necessary. After it final acceptance of appraisee is also taken along with signatures.
5. Employee relation:
Employee Relations involves the body of work concerned with maintaining employer-
employee relationships that contribute to satisfactory productivity, motivation, and
morale. Essentially, Employee Relations is concerned with preventing and resolving
problems involving individuals which arise out of or affect work situations.
The environment at HBL is cultural, ethical and challenging that that encourages
creativity and commitment among employees. HBL fosters a work environment where
employees can realize their potential whether locally or in the international arena. Thus,
HBL enables its employees to achieve their professional goals while keeping in synch
with the bank’s overall objectives.
HBL believes in two skills for employee relation