INTERNSHIP REPORT

ON

SUBMITTED TO:
Mr. Ghulam Abbas

SUBMITTED BY:
Muhammad Bilal
ROLL NO# BBAML-20-43
SESSION 2020-24

University of Layyah
City Campus Layyah
 PREFACE

Every student of Bachelor in Business Administration at University of Layyah, has an essential

requirement to do Eight weeks internship 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 BBA program.
The internship in HABIB BANK is personally arranged by my own resources and the department gave
me a letter for getting this internship.
Really, it was a nice opportunity to have a close comparison of theoretical concept in practical field,
involving the use of primary and secondary data. This Report may depict deficiencies on my part but
still it is an output of a student’ efforts, for which I beg pardon.
The output of my analysis is summarized in a shape of Internship the contents of the report Shows the
detail of sequence of these. The report is concluded with problem and suggestions.
 ACKNOWLEDGEMENT

No one can say that I am perfect everyone should admit that without the help of ALLAH and His people
a man can’t 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 former fellows and contemporary colleagues who took the time and trouble
during the last few days to speak to me about the way this text could be further improved and I am very
thankful to my all teachers
I am also thankful to the staff of Habib Bank Ltd.

Muhammad Bilal
 Table of Contents
INTRODUCTION………………………………………………………………………………………….….1

HISTORY AND DEVELOPMENT OF HBL........……………………………………………………………2

VISION:………………………………………………………………………………………….…………….4

MISSION:……………………………………………………………………………………………………...5

ORGANIZATIONAL STRUCTURE OF HABIB BANK LIMITED………………………………………...6

APPLICATIONS OF CLASS ROOM LEARNING IN ORGANIZATION…………………………………..9

SWOT ANALYSIS…………………………………………………………………………………...………10

PEST ANALYSIS………………………………………………………………………………………….....14

WEEK WISE LEARNING………………………………………………………………………………………16

RECOMENDATIONS………………………………………………………………………………………...20

CONCLUSION………………………………………………………………………………………………..21

REFERENCES………………………………………………………………………………………………...18
 Executive Summary

As we all know very well that time and tide wait for none. So, because of this rapid change in time and
era we have to cope with it. During this era I got an opportunity of getting practical knowledge about the
Banking system in Pakistan. So to quench the thirst of practical exposure and for getting the basic
knowledge about Bank I joined HBL LAYYAH. During Eight week in HBL I gather all necessary
information about HBL.
Efforts have been made to compile this report in such a way that activates its salient features not only for
students but also for the nonprofessional. I have divided this report into different Chapters.
First Chapter is about introduction OF HBL. Second Chapter is about General Banking Department gives
us description about how to open an account, how to deposit and clearing. Third Chapter discusses the
procedure of customer dealing and satisfaction fourth Chapter is about the branch where I worked and
watch different function which I learned in HBL LAYYAH.
Fifth Chapter is about the procedure of getting different type of loans and advances. Sixth Chapter is gust
of knowledge acquired by me. Chapter seven is about SWOT ANALYSIS of HBL. Chapter Eight tells
about my knowledge because here I gave different type of Recommendation to different problems.
At last I must say that this text is designed to stimulate the curiosity about management practices of
HABIB BANK Ltd of Pakistan. And to raise reader’s consciousness about the banking system working
in Pakistan and out side the Pakistan.
INTRODUCTION

HBL was established on May 10, 1952 to facilitate two giant Business community and inhabitant of HBL
(LAYYAH) Branch, besides providing series of general banking to the citizens and nearby areas.
Currently, it is an online bank.
Habib Bank Limited (HBL) is one of the premier banking institutions in Pakistan, known for its extensive
network, innovative services, and historical significance in the country's financial sector. HBL was set up
to cater to the financial needs of the burgeoning business community and residents of Layyah and its
surrounding areas. Over the decades, HBL has grown significantly, evolving from its humble beginnings to
become an essential part of Pakistan's economic fabric.

Since its establishment in Pakistan, HBL has consistently expanded its reach and services. The bank
introduced several pioneering initiatives in the Pakistani banking sector. It was the first bank in Pakistan to
install a mainframe computer, paving the way for technological advancements in banking. HBL also led
the way in introducing ATMs and, more recently, internet banking services, making banking more
accessible and convenient for its customers.

HBL's network has grown extensively over the years. It now boasts the largest domestic branch network in
Pakistan, with 1,225 branches spread across the country. Additionally, HBL has a significant international
presence with 55 branches worldwide, serving the Pakistani diaspora and international clients.

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HISTORY OF HBL:

The Habib Bank Ltd is a leader in Pakistan's services industry. An extensive network of 1225 domestic
branches – the largest in Pakistan and 55 international branches has enabled HBL to provide
comprehensive services that meet customer needs. This has ensured thriving client relationships that form
the backbone of the Bank's operation. Today, HBL plays a central role in Pakistan's financial and
economic development. It has come a long way from its modest beginnings in Mumby on August 25,
1921 when it commenced operations with a fixed capital of 25,000 rupees.

Impressed by its initial performance, Quaid-e-Azam Mohammed Ali Jinnah asked the Bank to move its
operations to Karachi after the creation of Pakistan. HBL established itself in the Quid’s city on August
7, 1928 and became a symbol of pride and progress for the people of Pakistan. Habib Bank has been a
pioneer in providing innovative banking services. These have included the installation of the first
mainframe computer in Pakistan followed by the first ATM and more recently, internet banking
facilities in almost 1225 domestic branches.

The Bank's towering presence in Pakistan's financial and commercial life has remained unchanged over
the decades. The strength of its brand and image is symbolized by its prominent Head Office building that
has dominated Karachi's skyline for 25Years. As per HBL Management result we continue to build on our
track record and in our quest for excellence we strive to meet the needs of both our customers and our
employees. At Habib Bank we aim to ensure customer satisfaction by providing high quality banking
services. This is made possible by the professionalism of our employees all of whom are provided with
the requisite training and opportunities to enable them to realize their full potential.

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VISION

To enable the disadvantaged population to build a sound and secure future with dignity and pride and not
merely to survive; alleviation of poverty through sustainable economic development.

MISSION

To help strengthen the entrepreneurial base of the economically disadvantaged population across the
country by seeking to marry entrepreneurship with capital formation in not only rural areas but also the
major population centres.
To provide people the scope to expand their economic base, and over time, to support diversification
beyond traditional small enterprises.
The Bank will endeavor to introduce good practices, ethical precepts and the highest standards of rectitude
in the conduct of business and will remain respectful of the needs of the poorest segments of society.

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 ORGANIZATIONAL STRUCTURE OF HABIB BANK LIMITED

PRESIDENT AND CEO

7 MEMBERS OF BOARD OF DIRECTORS

G.E, IOBG G.E, CPOD G.E, CPCS G.E, RBG G.E, CIBG G.E, ARM G.E, AGA HEAD OF IT
SENIOR VICE PRESIDENTS
HEAD OF HR HEAD OF FINANCE
VICE PRESIDENTS

ASSISTANT VICE PRESIDENTS

GRADE I OFFICERS

GRADE II OFFICERS

GRADE III OFFICERS

CLERICAL STAFF

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 NON-CLERICAL STAFF

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2.2 TYPES OF ACCOUNTS MAINTED BY HABIB BANK LIMITED (LAYYAH).

The following types of accounts are maintained in HBL:

1. HBL Current accounts.

2. HBL Haryali Account.
3. HBL Assan Digital Account.
4. HBL Assan Digital Remittance Account.
5. HBL Freedom Account.
6. HBL Freelancer Account.
7. HBL Conventional Current Account.
8. HBL Basic Banking Account.
9. HBL Assan Account
10. HBL Pensioner Account.
11. HBL Foreign Currency Current Account.
12. HBL ID

HBL Current Accounts: These are basic transactional accounts that allow for frequent withdrawals and deposits.
They often come with features like checkbooks, debit cards, and online banking.

HBL Haryali Account: This is a specialized account tailored for farmers, offering various benefits such as financing
for agricultural needs, access to agricultural products, and specialized advisory services.

HBL Assan Digital Account: It's a digital account designed for ease of access and convenience, allowing customers to
open and manage their accounts entirely online without visiting a branch.

HBL Assan Digital Remittance Account: This account is aimed at facilitating remittance transactions through digital
channels, providing easy remittance solutions for customers.

HBL Freedom Account: This account offers flexibility and convenience with features like unlimited withdrawals, a
free debit card, and access to online and mobile banking services.

HBL Freelancer Account: Specifically designed for freelancers, this account offers features tailored to their needs,
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such as easy inward remittances, online payment solutions, and access to HBL's international network.

HBL Conventional Current Account: A standard current account offering basic banking services like checkbooks,
debit cards, and online banking.

HBL Basic Banking Account: This is a simplified account designed to provide basic banking services to customers
with low transaction volumes and balances.

HBL Assan Account: This account is designed for individuals looking for a simple banking solution with easy access
to basic banking services.

HBL Pensioner Account: This account caters to the needs of pensioners, offering features such as a free debit card,
online banking, and special benefits for retirees.

HBL Foreign Currency Current Account: This account allows customers to hold foreign currency balances and
conduct transactions in different currencies, providing flexibility for international transactions.

HBL ID: HBL ID is likely a reference to the unique identification number assigned to each customer by HBL for their
banking transactions and interactions.

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 APPLICATIONS OF CLASS ROOM LEARNING IN ORGANIZATION

Marketing management:

I saw the employees in the marketing department of an organization are responsible for communicating
to customers or clients why they need to purchase the goods or services offered. Marketing relays
information to customers or clients and helps establish the overall image of the brand.
HRM:

The human resources management team suggests to the management team how to strategically manage
people as business resources. This includes managing recruiting and hiring employees, coordinating
employee benefits and suggesting employee training and development strategies. In this way, HR
professionals are consultants, not workers in an isolated business function; they advise managers on many
issues related to employees and how they help the organization achieve its goals.
Accounting and Finance:

In an organization, the financial accounting function is responsible for periodically reporting pecuniary
information to business owners. Interested parties such as regulators, customers, investors and creditors
often require this financial information. If banks refuse to rely on your accounting records, you will have
trouble securing loans for your business. Financial accounting dictates the amounts you owe to suppliers,
what customers owe you, operating costs, payroll costs and available cash. You can use financial
accounting to analyze significant aspects of your business, such as monthly sales or the reasons for high
expenses in one month.
Principles of Management:

Management principles are guidelines for the decisions and actions of managers. The Principles of
Management are the essential, underlying factors that form the foundations of successful management.
Team Work

I saw the employees of HBL in the Marketing Department work together like as a team. They are more
cooperative with each other they also cooperate with the clients of organization.

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Swot Analysis

The acronym SWOT stands for a firm’s internal Strengths and Weaknesses and its external Opportunities
and Threats. The purpose of such analysis is to build on company’s strengths in order to exploit
opportunities and counter threats and to correct company’s weaknesses. SWOT analysis is based on the
assumption that if managers carefully review such strengths, weaknesses, opportunities, and threats, a
useful strategy for ensuring organizational success will become evident.

Strengths and weaknesses typically relate to the internal environment of an organization, whereas
opportunities and threats are brought about by the external environment of an organization. In the
following section, both internal and external analyses of HABIB BANK IMITED are outlined:

Internal Analysis:

Internal analysis of a firm is the analysis of its strengths and weaknesses. Unless a firm has internal
strengths and controls its weaknesses, it cannot take advantage of opportunities and escape threats which
the external environment presents. Following are the main strength and weaknesses of HBL.

Strength:

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:

1. HABIB BANK is a well established bank enjoying long history of over 35 years of experience and
profitable operation.

2. HBL was the first privatized bank that gives it an edge over other nationalized banks as it can develop
any strategy consistent with the demand of market and free from any political or bureaucratic influence.

3. HBL is the largest private bank in Pakistan now and people trust is very high.

4. It has the largest branch network among private banks of Pakistan.

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5. HBL is the market leader in introduction of e-banking and it has the largest.

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 6. HBL was rated the best domestic bank for two consecutive years of 2000 and 2001 by Euro
money, a leading international publication.

7. HBL has forged strategic alliances with international banks for expanding its network further,
both locally and internationally.

8. HBL has the ability to bring innovative products and services like personalized service, electronic
funds Transfer, sophisticated financial products such as electronic banking, auto-teller machines and
evening banking.

9. HBL has been very effective in controlling costs as it successfully restructured itself after its
privatization. During this process more than 1,300 employees were relieved under a golden handshake
scheme and 110 branches were closed.

10. Excellent branches appearance gives an edge to HBL over other banks.The branches are
well furnished even in less developed areas where other banks’ branches give a poor view.

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.
1. Mission of HBL is not well defined.

2. 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.
3. Now as it is a privatize bank that is why GOVERNAMENT support to HBL decreased as it was in
past. 4.Employees at branch level are not properly motivated to work by heart. They take the all routine
activities
as a boring job.

5. 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
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in decision making almost computer knowledge.
External Analysis:

An organization has to monitor its environment constantly to keep up with new developments and changes
in the environment. A change in the external environment may be either an opportunity or threat. In either
case, the organization has to properly use it strengths to avail the opportunities and avoid or minimize the
negative effects of threats.

Following are the main opportunities and threats of HBL.

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:

1. It can introduce debit card system or may convert the existing ATM cards into a complete debit card.

2. New products like personal loans, mortgage and auto leasing and cash management which diversify credit
risk and add to revenue generating products, are currently provided in big cities like Lahore, Islamabad,
Karachi, and Rawalpindi, these products may be tested for success in other small areas of PAKISTAN
in different provinces.

3. As all around the world remittances of money are strictly monitored so as the money remitted may not
fall in hands of so-called terrorists. For that all conventional money laundering through Hundies have
been stopped, there is an opportunity for HBL to extend its branch network to various countries
emphasizing mainly on introducing electronic fund transfer facilities.

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 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 HBL’s external environment,

the following potential threats exist:

1. The frequent reduction on 3-month and 12-month Treasury Bills discount rates by SBP may create
pressure on the banks profitability.

2. The low discount rates are also negatively influencing the advances rates which may affect the bank
profits from the other side.

3. Foreign banks operating in Pakistan are playing a significant role by incorporating new technologies and
providing better quality services thus creating a threat to the local banks especially to HBL which tries
to develop core competence in electronic based products. Policies of privatization, foreign exchange
reforms, and structural adjustments have increased the inflow of foreign resources through direct and
portfolio investment. In trade financing, the role of foreign banks is even more significant, as
approximately 20 percent of the total trade of the country is transacted through them. Major portion of
the trade financing is for importers to establish letters of credit.

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 PEST Analysis

 Political
 There is big risk factor associated with Politics, because in Pakistan political set up is not stable so
governments can quickly change business rules that negatively affect HBL BANK business. The revenue
of HBL BANK is generated from different public sector organizations no private commercial is generated
that’s why HBL BANK. Unitability actually raises the cost of the company and ultimately the rate of
services is changed and then the consumption also changes, ultimately revenue decrease.
 Economic
 It provides its services to all the governments departments its revenue is not much high but still has a role
in economy. HBL BANK is now the country's largest public sector organization, providing all
telecommunication services from basic voice telephony to data, internet, video-conferencing and carrier
services to public sector consumers nation-wide. HBL BANK is going in profit and expanding its network
and is not dependent on government.
 Social
 In the society or social system every person has a need of telecom services, the public sector organizations
and government employees are the customers of HBL BANK. These customers are given some specific
sealing amount after that they pay from their own earning. In case paying from their salaries they need to
know who you are and what you stand for and what are your different products and services. The
organization need to connect through social media, getting news, updates, participating in more and more
of daily interactions online. The HBL BANK is public sector organization and applying very little such
system to preserve brand recognition at all social media channels. However, either with an aspect of
product line, promoting of services or celebrations of any public day, HBL BANK remains updated with
its lively fans that is as well seeing an immense growth swiftly.
 Technology
 As HBL BANK is the largest public sector telecom corporation is using the most advanced 3G Wireless
CDMA from the PTCL, providing data rates of upto 3.1Mbps on download and 1.8Mbps on upload. With
the help of PTCL and most advanced technology of PTCL, HBL BANK is using VDSL2 Bonding
technology to provide to its highly users of public sector organizations and bandwidth hungry DSL
consumers with Bandwidth up to 50 Mbps on its existing Copper network. Using VDSL2
Bonding technology, service providers can deliver the bandwidth intensive services such as IPTV and

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very fast data.

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 Week Wise Learning
My Activities During Internship:

The opportunity for the training was my foremost step in the practical frame of work. During the
training I was being asked to fulfill some tasks along with the different assignments given to me
for developing the working skill in me. I found some difficulties in the starting portion of the
assigned tasks but gradually I became familiar with the things and I felt comfort in doing the
tasks for my organization.

First Week Activities:

First week of my internship was introductory and little bit boring because I don’t have any work
do, I just have to observe their work and how they are working and I used to make the notes of
some key points.

As an internee in HBL Bank Limited I spent my first week in current department, where my
activity was keeps all rules and the revolutions of the account and the account holders like the
account name, Account holder’s number and the home address, and also releases the new
accounts.

Second Week Activities:

In this week I learned about Cheque stop payment. Cheque stop payment is a terminology used in
banking for stop the payment for the Cheque presented. Bank cannot directly stop the payment
without any specific reason. The customer does it. How payment can be stop by the customer for
the Cheque presented? Let us see:

Write an application with subject of Cheque Stop Payment or fill the Formatted
Application form provided by bank. Attach one Copy of CNIC.

Submit Rs.300/= Per Cheque as Cheque stop payment Fee. Submit all these with
operations manager and fee with cashier.

Then after all these process, payment for the Cheque is stop.
Once this Cheque is stop can never been used again.
An entry from the computer for this Cheque number as Stopped Cheque.

So, in this way the payment for the Cheque is stopped. Cheque stop payment is always requested
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by the customer it means that bank can never be stop the payment for Cheque on its behalf.

Third Week Activities:

As an internee in HBL Bank Limited I spent my second week in remittance department. In this
department I learned that how the transfer of money from one branch to another branch takes
place. In this department I perform following duties.

 Cashier’s Cheque

 Foreign transfer

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 Mail Transfer
I want to explain one thing that comes in mind while performing remittance activities that are suppose
if a person has account in HBL Bank Fatehpur and that person is resident of Attock city. How he/she will
deposit money in its account from HBL Bank Layyah Branch. I observed this thing and found that what
the procedure to deposit money in his account is. He/she will take online form, fill it with care and submit
in cash management division. Then it will be transfer by cashiers at the end of the day.

I found it necessary to explain this problem, because I personally handled such type of issues in branch.
Some customers directly filled the deposit slips to deposit it directly in the account but it is not possible to
deposit money directly in another branch account of same bank. Another reason of explaining it is that
first of all I myself was not sure about that.

Fourth Week Activities:

As an internee in HBL Bank Limited I spent my fourth week in account department where my activity
was to perform in the Bank is account opening. So, the tasks of Accounts departments are very vital
and valued for the generation of deposits. There are two major types of accounts Current Account and the
Saving Account. The saving account is usually opened for the home remittance and for the salaried
persons more likely while the current account is usually opened for the business men and the medium base
organizations. The other types of accounts include Business Account, Joint Account, Basic Account,
Behtar Munafa Account, Reward profit Account etc.

Fifth Week Activities:

As an internee in HBL Bank Limited I spent my fifth week in account department where my activity was
to involve providing loan to the client-s against the pledge or security. The loan is approved after
completing different steps.

Sixth Week Activities:

As an internee in HBL Bank Limited I spent my sixth week in marketing department where my activity
was to dealing made with new customers. This department also introduce new lunched by bank. My
dealings with mostly customers were success full.

Seventh & Eight Week Activities:

During my 7th week of internship I came to know about the facility of LOCKERS and its functions.

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Lockers have 3 types of it: Small Size Lockers, Medium Size Lockers, and Large Size Lockers. The officer
told me its functions and charges. I also learnt about inward and outward clearing and learnt how the
transactions are made.
During 8th week, I learnt about maintenance of TDR Balancing Report, Cheque Book Maintenance
Report, Daily Account Maintenance Report and Non-Financial Transactions Report. And I learnt about
Subsidiary Ledger and Daily Major Deposit and Withdrawals Reports and also get overview of these
reports.

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 RECOMMENDATION:

Recommendation I Propose

I will give following suggestions for the better function of the Bank:

1. The management should provide better arrangement for the employees.

2. The daily newspapers and journals should be provided to the employees and customers visiting there.

3. A separate ladies counter should be there.

4. The Bank management should be very careful while granting the loans.

5. Personal interests should not be given importance and customers Personal credit worthiness must be
carefully scrutinized public relation desk should be established in each and every branch for guidance
as well as redresses of grievance of customers at the spot.
6. Online Banking should be introduced in all the branches.

7. Aggressive publicity campaign must be introduced through press and Electronic media for new
products and scheme by initiating vigorous marketing policy.
8. New talent / professionals should be hired to coupe with the competitive demand in the industry.

9. The financial statement should be made more transparent and reliable.

10. Consumer financing should be initiated to capture the market share.

11. Employee’s induction promotion and transfer should always be made on merit.

12. To motivate the employees their remuneration / salaries should be made at par with top tier Banks.

13. They should seriously consider about training both their senior and junior management in order to
make them more up to date.
14. Decentralization is a must for them at this stage because not only is it killing potential it is also
resulting in unsatisfied customers.
15. Technical training should be provided to all the existing staff and proper testing should be
done afterwards with the testing weightage in the final appraisal.

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CONCLUSION:

Overall analysis of the bank leads to the conclusion that bank is performing at satisfactory level.
The bank is no doubt the best Modern Bank in Pakistan. And to keep competitive advantage over
its existing and potential competitors bank is trying to introduce latest techniques on regular basis.
The customers of the bank are increasing every year and that is why not only the deposits of the
bank are increasing but also advances by the bank shows a steady growth during the last 5 years.
As a result of increasing advances and investment in higher yielding Treasury Bills. Equity base
of the bank is also increasing and in year 2000 it showed a positive growth of 20% over the period
of last 5 years. Total assets of the bank are also increasing continuously. Similarly, the earning
per share is also increasing. During last year this ratio was highest in last 5 years.
During its short life of operation bank has achieved many awards not only with in Pakistan but
also from outside the Pakistan.
So, we easily without any qualm can conclude that;

"Bank is going exactly on the way of development and progression"

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REFERENCES

I collect this information from,

1. Habib Bank Limited of Pakistan, Annual Reports

2. State Bank of Pakistan Prudential Regulation for Corporate and Commercial Banking.

3. State Bank of Pakistan BPRD Circulars

4. Dawn Newspapers for updated information

5. Instruction Circulars of National Bank Limited

6. Economic Reviews for Banks and their activities

7. State Bank of Pakistan, Website, http://www.sbp.gov.pk

8. Habib Bank's website, http://www.hbl.com

I also visit & complete 6 weeks internship in Habib bank of Pakistan Main Chubara
Road LAYYAH for collecting data.

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