Critical Analysis of Habib Bank Limited (hbl) University

Campus Branch Peshawar

Critical analysis is based on the general observation and point out towards the shortcomings/
weaknesses of HBL as observed during the internship. These observations generally reflect the
different aspects of HBL and weaknesses in different areas, which needs to be overcome.
Following are the critical analysis of HBL university campus branch Peshawar.

HBL is the largest bank of our country with an excellent network of branches but it has certain
flaws even in management functions.

The leaders or managers at upper level are having expertise in their fields but branch leadership
is not very well and often the managers don’t have even the basic knowledge of management
and communication.

In the function of organizing delegation of authority is a problem, especially in retail banking; a

branch has fewer powers to deal with customers. The branches are staffed with usually old
employees, who have the ability to carry out routine works excellently but there is lack of new
ideas or these employees needs further training.

HBL is not keeping pace with the changing market environment, the main reason for which is
lack of new policies, and also the existing policies remain unchanged for a long period of time.
Top management is having a lot of influence in all decision-making and usually don’t consult
the lower level. In advances department, the processing of loan is very lengthy, which is
problem for businessmen. The foreign exchange department is usually staffed by one officer,
thus his absence causes problem for the customers. Employees are lacking motivation, due to
fear of downsizing. Employees also complaint that employments and promotions are made on
favoritism and nepotism. There is dearth of innovation as compared with foreign banks, private
banks or international banks. That is, with banks of this much caliber it should offer more
products and services.

Although in HBL, there are computers in different offices, but they are not utilizing this tool in full
capacity and are using it for typing and calculation only. Counter services are not satisfactory
and usually process at counter takes more time, than it should have. Branch’s internal seating
arrangement and environment is also not satisfactory in most of the branches. Similarly for
customers, usually less sitting places are available and that are also in deteriorate condition,
furniture is also not neat and clean in most of the branches. The necessary stationary for the

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use of customers are also not adequate at the peak hours. . Brochures are also found to be
available in lesser quantities and usually not provided in time to customers. Informing customers
(i. e. bank statements etc) are also done at long intervals (6 months), which is too long interval.

The behavior of the staff is also not according to the marketing approach to words the customer.
They usually behave in very bureaucratic way; they are not providing personalized banking, as
the new private banks do. The employees of the bank are also experienced but most of them
are not well educated i. e. most of them are graduates but they are not aware of the modern
business administration knowledge and updates. Similarly the outlook of the staff is also
orthodox and don’t present to the customers a smart image of the bank but rather presents a
dull image, unlike private banks where presentation style is also of great importance. The bank
lacks an information center, wherefrom the researches can get data. Even there is so much lack
of information, that at branch level the employees are not aware of the basic decisions and
information. This is in relation to the above problem; there is communication problem, between
different groups within the bank. Like problem of communication exists between the lower staff,
lower management, middle management and upper management, with each level is confined to
itself and not aware of the lower level than its own level.

One problem is also that in HBL, there are employees, who have no work at all that is, it has
some surplus employees, but there is not clear policy about their fate and this creates confusion
and uncertainty among all employees. There is also problem of politico-economic situation of
the country; this problem is so for all financial institutions of the country. The freezing of FCAs
has also affected the confidence of people on the banking sector in particular and HBL in
general.

There are also culture hurdles, which are in the way of banks like, provision of services to ladies
especially in backward areas, HBL has done nothing in this field, other wise it could have a new
segment of customers. There is also absence of a proper database, and in this era of
information technology, it is a tragedy that a huge organization like HBL doesn’t have a proper
database system, which can help the bank and the bank could improve its services based on
this.

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