HBL Products

Domestic Banking: Service Line

In domestic banking HBL deals with the following various financial transactions and provides a wide
array of services to its customers:

Consumer Banking Services:

Habib Bank Ltd. has continuously strived to meet this requirement and along with its regular
consumer banking services it has often introduced quite innovative services in the market in order to
satisfy its customers. Some of its great achievements are that Habib Bank Ltd. was the first bank to
introduce Traveler’s Cheques in Pakistan, and the Habib Bank Master Card was the first to be
introduced in the region.

Cash Management Services

HBL’s Cash management Services look after the local and cross border payments, collections,
account services and liquidity management for both corporate and institutional customers.

Utilities Services

For the convenience of its customers Habib Bank always is willing to stand on their side to provide as
per standing order facilities to the customers like, bank paid Electricity Bills, Phone Bills, Gas Bills and
other utilities expenses on the behalf of customer.

Transferring of Money

The bank provide facility of transferring of money from one place to another place within the
country as well as outside Pakistan the bank receive normal changes as per their schedule of charges
declared half yearly from their customers for transferring the money. The various channels of
remittance are as under: 1 Demand Draft (DD) 2 Telegraphic Transfer (TT) 3 Mail Transfer (MT) 4
Muhafiz Transfer Cheques (TC)

Dealing in discounting of title to goods

The bills department of the branch deals with the discounting various title to goods such as bill of
lading (B/L), Railway receipt (R/R), Truck Receipt (T/R) Airway Bill (AWB).
Issuance of letters of guarantee

The bank issue letter of guarantee on behalf of its customers financing customer authorities export
promotion bureau Sui nothern gas pipeline, other government agencies as requested by its
customers.

Product Lines
Auto-Finance

Habib Bank Auto Finance, offers the customer, an expedient and economical way of fulfilling their
requirements of owning the car of their choice on their terms. Options of affordable down
payments, convenient repayment arrangements in the form of monthly rental payments, which are
tailored to the expected cash flows of the customer are some of the host of value added features,
this product offers its customers.

Home-Finance

Habib Bank brings the most affordable and convenient scheme to finance one’s own house. Habib
Bank – House Finance, a demand / running finance facility to assist an individual in turning his vision
into a reality. With adaptable options, varying amounts and flexible tenures one can start shifting to,
building or renovating one’s own house in few weeks.

Habib Bank Value Debit Card

Habib Bank Value Debit Card is a secure and convenient payment tool. It is linked to the personal
Habib Bank account of the customer. When the customer uses Value Card at outlets for payment of
daily purchases, the exact purchase amount is deducted from their personal Habib Bank account.

Flexiloan

Habib Bank FlexiLoans is a personal loan product, which is available for salaried individuals for a
variety of reasons. Whether it is for a child’s education, a much needed vacation, a daughter’s
wedding or even just a shopping spree, HBL FlexiLoans is a flexible financing scheme which can
actually provide the much needed cash to fulfill all such requirements.

Habib Bank Master Card

Habib Bank MasterCard opens a world of convenience for its clients. Be it shopping or traveling or
medical expense, HBL MasterCard sets you free from the hassles of carrying cash, wherever you are.
You have the option to choose from our Domestic or International card… depending on your
requirements

Habib Bank Lifestyle

Habib Bank’s Lifestyles Financing Scheme provides financing for household appliances and consumer
electronics on easy terms and flexible tenures. The product aims to bring comfort into each domestic
unit by providing financing for essential domestic items, the purchase of which may be postponed by
households due to paucity of funds. The bank aims to provide speedy financing so that families do
not defer purchase of such essentials, and all such items are effortlessly accessible as and when
required.
Intro
Habib Bank Limited commonly referred to as Habib Bank is the largest bank in Pakistan and a
thoroughly established banking chain throughout the world.

HBL has an extensive network of 1425 branches in Pakistan and 55 international branches that
makes it one of the largest banks in Pakistan today.

Habib Bank Plaza is located in Karachi; Sindh is the formal headquarters of the bank. The bank has a
network outside Pakistan including USA, UK, Middle East, Asia Pacific and Africa.

Customers are the key that makes HBL a top-ranked bank and HBL continuously strives to keep its
customers happy, which is why HBL has a broad range of products that cater to the different needs
of its customers.

In terms of HR activities, HBL could be ranked as one of the best employers in Pakistan.

The bank has a detailed HR policy that is continuously updated keeping in mind the changes in
technology and even employees responsibilities.

This report highlights the recruitment procedures, selection, training, compensation and benefits
that HBL covers in its HR policy. The HR department isn’t the only party responsible for all the HR
policies; HBL also uses the services of consulting firms that help in administering the hr functions.

History
Habib Bank Limited was found in Pakistan as on 1947, the headquarters was situated in Karachi.

It started its operations in other countries during 1951 when it opened its first branch abroad in Sri
Lanka and Habib bank Plaza was built in 1972 to commemorate the bank’s 25th anniversary.

It has come a long way from its modest beginnings in Mumbai (Bombay) during 1941

when it commenced operations with a fixed capital of 25,000 rupees.

The strong performance and growth of Hbl in its initial years impressed Mohammed Ali Jinnah (the
founder of Pakistan) who had then asked the Habib Bank to move its operations to Karachi after the
independence of Pakistan.

Habib Bank Limited established itself in Karachi in 1944 and became a symbol of pride and progress
for the people of Pakistan.

Habib Bank Ltd was operating under state ownership from 1974-2004.

Although in 2004 it went under privatization and as of today 51 percent of the Bank’s shares are
purchased by the Aga Khan Fund for Economic Development, an agency of the Aga Khan
Development Network. The Government of Pakistan is expected to gradually divest its remaining
shares in the Bank.
Introduction
HBL was the first commercial bank to be established in Pakistan in 1947.

Over the years, HBL has grown its branch network and it now the largest private sector bank that has
over 1,450 branches across the country and a customer base which is exceeding five million
relationships.

HBL has its presence in 25 countries, its 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 from Pakistan.

The Bank is expanding its presence in principal international markets including the UK, UAE, South
and Central Asia, Africa and the Far East.

The crucial key areas of operations encompass product offerings and services in Retail Banking.

HBL also takes pride in holding the largest Corporate Banking portfolio in Pakistan with an active
Investment Banking arm.

In the urban as well as rural centres, the banking services that HBL offers are SME and Agriculture
lending programmes.

In the UK and GCC, HBL focuses on trade finance and remittances for the South Asian diaspora in
addition to basic banking facilities.

HBL takes pride in the fact that it 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, 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.
3.1 FUNCTIONS OF HABIB BANK LIMITED
To fulfill the basic objective that is of socio-economic nature HBL perform following important
functions.

Commercial Banking
Corporate Banking
Investment Banking
Retail Banking
Islamic Banking

3.1.1 COMMERCIAL BANKING:

Enterprises operating in the middle market contribute significantly to the economy of a country.
Traditionally, this sector was the stronghold of HBL’s business. During the early 90s, with the
liberalization of the financial sector in Pakistan, competition in the industry stiffened due to the
emergence of new banks in the private sector. The senior management at most of these banks
comprised personnel from HBL.

They not only knew the market but were also familiar with the shortcomings of HBL. Under the new
set-up, they were able to address these shortcomings and began to target HBL’s customer base.
With the inception of an alternative, HBL customers started migrating to the newly established
banks this causing the erosion of HBL’s market

share. During FY-2000 HBL’s management decided to address this issue. Hence forth, Commercial
Banking was created to focus on the business needs of the middle market customers. On November
1, 2000 Commercial Banking came into being. At present, 18 Commercial Centers and Sub-Centers
functioning, located at Karachi, Lahore, Faisalabad, Sialkot and Gujranwala.

Goals:

The Goals of setting-up Commercial Banking was two-fold:

 First to stop the erosion of market share in the middle market;

 Second, to regain the lost market share

The strategy adopted to achieve the above objective was to position Commercial Banking segment
as the “Trade Finance Bank” for its customers. The rationale behind this strategic decision was to
capitalize on the existing marketing knowledge & strong contacts with the middle market customers,
who were loyal to the HBL brand.

The product line of Commercial banking includes:

3.1.1.1 FUND BASED FACILITIES:

  Running Finance for Working Capital requirements (RF)
 Finance Against Packing Credit for Pre-shipment (FAPC)
 Finance Against Foreign Bills for Post-shipment (FAFB)
 Finance Against Imported Merchandise (FIM)
 Finance Against Trust Receipt (FATR)
 Demand Finance: Medium Term Loans (DF)
3.1.1.2 NON-FUND BASED FACILITIES:

 Letter of Credit (LC)

(a) DA (Unseen) (b) DP (Sight)

 Letter of Guarantee (LG)

Successful achievement of the strategy entailed addressing the following key issues:

 Developing a sales culture so that business was aggressively sought

 Improvement of Counter Service
 Reducing the turnaround time on credit decisions

HABIB BANK LIMITED

 Training of staff to enhance credit and sales skills

Following initiatives were taken to address the above issues:

Fictionalization of branches into two key areas:

 Marketing; and
 Operations
Implementation of a standard organization at Centers & sub-centers where by there were two key
areas within operations:

 Trade
 Counter Service i.e. Cash & Remittances
 De-layering of the Credit processing to ensure quick turnaround on credit decisions
  Setting up of Relationship Management teams at all Commercial Banking Centers to focus on
procurement of business
 Setting-up of Credit Administration Departments at all Centers for improved Risk
Management
 Training of staff in following key areas:
(a) Credit (b) Trade Services © Computer literacy

Impact of the steps

The decision to setup Commercial Banking has been fruitful. This is evident from the following
results:

 Enhanced customer interaction by the branch management has now become possible after
segregation of marketing and operations at the branch level.

HABIB BANK LIMITED

 Decentralization of Credit Authority and streamlining of the processes have resulted in

reduced turn around time. Currently decision making in this area is perhaps most efficient in
the market place.
 Our strategy has allowed us to achieve our first objective; the trend of
erosion in our market share has been reversed. We now would be

looking at regaining our market share.

Commercial Banking is making headway with improvement not only in terms of the business figures
but also in its ambiance. Renovation of is being carried out in order to give a professional look to all
the Commercial Banking Centers.

HABIB BANK LIMITED

3.1.2 CORPORATE BANKING:

Corporate Banking Group serves large institutional and corporate customers in Pakistan through 10
dedicated corporate banking centers in all major cities. The CIBG portfolio consists of most of the
largest names in the market and represents all major industry groups, including textiles, large scale
manufacturing, telecommunications, petrochemicals, fertilizer, airlines, transportation and services.
It offers its clients a comprehensive range of banking services via a one-window interface through
designated relationship manager. Corporate Banking is recognized as a market leader due to its
unique ability to meet the entire spectrum of a customer’s banking requirements. HBL’s large equity
base allows to meet the financing needs of the largest corporate and it’s large network and
specialized teams are able to deliver and provide customized solutions. The Group has increasingly
focused on providing value addition services to the customers, e.g. payroll and cash management
services. The Bank has become a leader in cash management services by leveraging its large
domestic branch network and now provides such services to a range of large and medium sized
corporations, including the Pakistani units of some Fortune 500.companies.

The Group also strives to stay ahead of the market by anticipating customer
requirements. We strongly believe in relationship banking, which is essential for us to remain
responsive to our customers. We also remain focused on improving productivity and ensuring the
quality of our risk management.

HABIB BANK LIMITED

3.1.3 INVESTMENT BANKING:

An Investment Banking Unit has been established which focuses on loan syndications, development
of local currency corporate bonds (TFCs) and advisory services.

3.1.4 RETAIL BANKING:

The Retail Banking network, with 1425 branches, is the core strength of Habib Bank. Its extensive
reach in all geographic locations – urban and rural – throughout the country provides access to over
5 Million customers across all sectors of the economy. The network provides HBL with the largest
diversified low cost deposit base of any bank in Pakistan, and forms the basis for many of its other
business lines: corporate and investment banking and treasury activities.

Retail Banking Group (RBG) has two principal areas of activity;

 The retail network for deposit mobilization

 The consumer-banking group.
HBL is the only major bank to have a very dedicated group to serve the Small & Medium Enterprises
(SME) sector. HBL believes that the SME sector can be an engine of growth for the economy and
represents an area of opportunity for the Bank. RBG was therefore established in late 2000 to
provide banking services and credit on a structured and systemized basis. It now covers 25 branches
in the six major industrial cities of Pakistan. The Group now works closely with its customers, which
cover all segments of the economy including the textile sector, vendors and suppliers to structure
the finances and improve their capabilities. We have been very encouraged by the outcome that
reaffirms its belief in the potential of this sector.

There is a growing propensity for consumer spending to uplift living standards.

Recognizing that consumer demand can be a major driver of investment and
economic growth, the Government has also moved towards an enabling regulatory framework and
has also taken initiatives to create an appropriate legal regulatory
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framework to enable the development of a housing finance market. With its extensive branch
network and large customer base, HBL has an important role to play in the development of this
sector of the economy in which it expects substantial growth in the next five years.

HBL has moved aggressively and has already introduced three major products;

 Personal Loans,
 Car Financing
 Consumer Durable Financing
in association with major suppliers of consumer products. These have been well received and
volumes have been building up steadily. It is the

intention of HBL to be a leader in consumer financing. Plans are also

underway to develop mortgage financing for the housing sector.

Agriculture is the most important contributor to Pakistan’s economy. HBL, which has been a leader
in agriculture financing, plans to increase further its credit to this sector with a particular focus on
providing a wider range of products to small and medium size farmers. In this regard, to provide
flexibility, the Haryali scheme for farmers was
introduced which is a 3-year revolving facility rather than the traditional short term seasonal
financing. HBL’s specialized agricultural finance department helps farmers in modernizing their
farming techniques. The Government has also provided a regulatory framework to encourage
corporate farming and as this develops the participation in this sector. Will grow even further. While
HBL continue to develop its products, we recognize that quality of customer service will become an
even greater differentiating factor in the market. HBL have taken a number of initiatives in this area;
investing in technology, training and upgrading of its branches. Extended banking hours and better
facilities for utility bill payments have been made available.
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In our Retail network, we have an unmatched distribution network, which provides us many
opportunities for growth, and we plan to use this to soon provide additional services, including
wealth management services.

3.1.5 ISLAMIC BANKING:

The Bank of Khyber has taken the first step towards Islamic banking and for this purpose an Islamic
banking division has been established to complete the necessary regulatory and operational
formalities thereby paving the way for commencement of Islamic Banking in its specialized branches.