Internship Report

Habib Bank Limited

ACKNOWLEDGEMENT
No one can say that I am perfect, everyone should admit that without the help of ALLAH and His people a man cant et anythin so I bow my head before

almi hty Allah with ratitude! I am also very much thankful and presents salute to many individuals who have helped me in shapin this report !I am also very much thankful to lot of former fellows and contemporary collea ues who took the time and trouble durin the last few days to speak to me about the way this te"t could be further improved! I have no wards to e"press my ratitude to my advisor #r! Bilal $han Lodhi for his intellectual uidance without which it could have been rather

difficult for me to complete this report! I am also very thankful to the staff Habib Bank Ltd! %innah &howk branch especially to #r! $halid #ahmood 'o ar (#ana er )perations* who provided me an opportunity to work in friendly environment! It was an honor and pleasure to work with+ #r! Rao ,aleem -llah khan (#ana er HBL %innah &howk branch* #r! Asif I.bal (Asst! #ana er /orei n 0rade 'epartment* #adam Aysha (1ublic Relation )fficer* #r! Haroon Butt (#ana er &redit 'epartment* #r! Ali Ra2a ,hah (Head cash 'epartment*

Table of Contents No. Description Page No.

Internship Report

2 5"ecutive ,ummary 5volution of Bankin &ommercial Bankin in 1akistan History of Bankin in 1akistan About HBL 1akistan History and Back round 1rivati2ation HBLs #ission, ;ision and values Board of 'irectors #ana ement &orporate information

Habib Bank Limited

34 37 36 38

36 38 39 to 3: 43 to 4:

39 3=

,<)0 Analysis )perations of HBL Bankin 'epartments in HBL 1roducts and services of HBL

73 79 to 9>

3>

Learnin and 'uties as an Intern /orei n 5"chan e 'epartment Bills clearin 'epartment &redit 'epartment Account, lockers, A0# 'epartment Assi nments Impact on my &areer

9? to =8

3? 3: 43

Award and /inancial performance in 733? Recommendations @lossary, Biblio raphy, Inde"

=6 to >6 >8 >= to ?3

executive summary
5very student of #aster in Business Administration at &)#,A0, Institute of Information 0echnolo y has an essential re.uirement to do ,i" to 5i ht weeks internship in any of the well reputed or ani2ation! 0he purpose of this pro ram is to ac.uaint the students with practical applications of theoretical concepts tau ht to them durin conduct of their #BA pro ram! 0he internship in Habib Bank was arran ed by the Aob placement cell of the institute! Really, it was a nice opportunity to have a close comparison of theoretical concept in practical field, involvin the use of

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Habib Bank Limited

primary and secondary data! All the efforts on the way are summari2ed in shape of this Internship Report! Report starts with the topic evolution of bankin ! 0he word BBankB is said to have been derived from the words Bancus or Ban.ue or Bank! 0his history of bankin bankin is traced to as early as 7333 B!&! 0alkin about commercial in 1akistan It was very difficult for 1akistan to build up its own Bankin

system immediately after independence without sufficient resources! By 63th %une 4:8? the number of schedule banks in 1akistan declined from mere scratch! 0oday there are more than >333 branches of commercial banks alon with an established network of supplementary financial institutions! All this development in the bankin sector is the result of untirin efforts of si" decades! HBL was the first commercial bank to be established in 1akistan in 4:8>! )ver the years, HBL has branches across the country and a customer base e"ceedin relationships! )n 'ecember 7:, 7336 1akistanBs 1rivati2ation &ommission announced that the @overnment of 1akistan had formally ranted the A a $han /und for 5conomic 'evelopment (A$/5'* ri hts to 94C of the shareholdin in HBL, a ainst an investment of 1$R 77!83: billion (-,' 6?: million*! 0his report contains information about HBLs board of directors, mana ement, mission, vision and values! HBLs operations are discussed in li ht of its workin department in the branches like cash, clearin , forei n e"chan e and accounts department and also in li ht of its services and products which it is offerin to customers weather they are individual, business, corporate or a riculture field related customers! HBL is currently offerin phone bankin , internet bankin and various cash mana ement services for the facilitation of its customers! HBLs car to car loan has its own uni.ueness in 1akistans bankin sector! HBLs branch network is e"tended all over the 1akistan which has its competitive ed e over all other private sector banks in 1akistan! 'urin the time of my internship in Habib Bank %innah &howk branch ,ahiwal I ot the chance to work in all the departments of HBL workin there! 'uties and learnin in each department is iven in this report! 0alkin about financial positive performance of the bank in 733? all the financial indicators are showin rown its branch network and become the lar est private sector bank with over 4,893 five million

results when the financial performance of the bank in 733? is compared with financial performance of 733>! 'urin 733? HBL also won some awards! At the end of this report I have iven my su estion for the improvement of the bank!

Internship Report

Habib Bank Limited

Evolution of bankin
0he word BBankB is said to have been derived from the words Bancus or Ban.ue or Bank! 0his history of bankin is traced to as early as 7333 B!&! 0he priests in @reece used to keep money and valuables of the people in temples! 0hese priests thus acted as financial a ents! 0he ori in of bankin is also traced to early oldsmiths! 0hey used to keep stron safes for storin the money and valuables of the people! 0he persons who had surplus money found it safe and convenient of deposit their valuables with them! 0he first sta e in the development of modern bankin , thus, was the acceptin of deposits of cash from those persons who had surplus money with them! 0he oldsmiths used to issue receipts for the money deposited with them!

0hese receipts be an to pass from hand to hand in settlement of transactions because people had confidence in the inte rity and solvency of oldsmiths! <hen it was found that these receipts were fully accepted in payment of debtsD then the receipts were drawn in such a way that it entitled any holder to claim the specified amount of money from oldsmiths! A depositor who is to make the payments may now et the money in cash from oldsmiths or pay over the receipt to the creditor! 0hese receipts were the earlier bank notes! 0he second sta e in the development of bankin thus was the issue of bank notes!

0he oldsmiths soon discovered that all the people who had deposited money with them do not come to withdraw their funds in cash! 0hey found that only a few persons presented the receipts for encashment durin a iven period of time! 0hey also found that most of the money deposited with them was lyin idle! At the same timeD they found that they were bein constantly re.uested for loan on ood security! 0hey thou ht it profitable to lend at least some of the money deposited with them to the needy persons! 0his proved .uite a profitable business for theE oldsmiths! 0hey instead of char in safe keepin char es from the depositors be an to ive them interest on the money deposited with them! 0his was the third sta e in the

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Habib Bank Limited

development of bankin !

COMME!C"AL #ANK"NG "N $AK"%TAN

It was very difficult for 1akistan to build up its own Bankin system the immediately after independence without sufficient resources! /ollowin

announcement of the partition plan in %une 4:8> there was a haste movement on the parts of banks to transfer their funds and accounts across the borders! 0he banks havin their re istered offices in 1akistan were transferred to India! In an effort to brin about the collapse of the new state by the persecutin an international policy of withdrawal, the Indian bank offices closed .uickly! 0hose banks, which stayed, were considerin the windin up of their business! By 63th %une 4:8? the number of schedule banks in 1akistan declined from mere scratch!

0oday there are more than >333 branches of commercial banks alon with an established network of supplementary financial institutions! All this development in the bankin sector is the result of untirin efforts of four decades!

History of Banking In Pakistan

0he interestin point which I observed durin the span of mine internship was the historical back round of Bankin F /inancial sector which is the one in which reat improvement and rowth is observed since the formation of 1akistan! /or

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Habib Bank Limited

studyin the rowth of this sector we can divide it into three sta es, which are as follows+ a* b* c* 1reGNationali2ation 5ra Nationali2ation 5ra 1ost Nationali2ation 5ra

a) Pre Nationalization period:

0here were only two #uslim banks in Indo 1ak before partitionD they were !Habib Bank Ltd! (est! in 4:84 at Bombay* F Australia Bank Ltd! (est! In 4:88 at Lahore*! All other banks, at that time, were either owned by Hindus or /orei ners!

At the time of partition there were =64 bank branches in area which came under 1akistani control! But due to blood shed and violence at lar e scale, mostly branches were closed and the disparity can be assessed from the fact that on %uly 4:8? there were 4:9 branches with deposits of Rs!?? crore (??3 million* only! Also a factor la in in 1akistani industry was a central bank of its own, by that time as central bank for both countries and same Reserve Bank of India was actin

currency notes were used in both territories! But Reserve Bank of India was biased and ,et down 1akistan on many occasions such as the issue of funds transfer etc!

In this period drastic steps were taken in

overnment sector for the

improvement of overall position! 0he private sector also responded to these chan es and some very positive chan es were observed! ,ome of the steps taken by the overnment in this re ard were as under+

4* Inau uration of ,tate Bank of 1akistan (,B1* on 4st %uly, 4:8?! 7* ,ettin up of National Bank of 1akistan in November, 4:8: to control the BAuteB e"port in 5ast 1akistan and to act as a ent of ,B1! 6* Lar er powers were iven to ,B1 throu h ,B1 Act (4:9=* for controllin purposes!

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Habib Bank Limited

8* Bankin &ompanies )rdinance 4:=7 for protection and uidance to banks! 9* 5stablishment of speciali2ed banks, such as A'B1 (4:97*D a* HB/& (Nov, 4:97*D b* 14&I& ()ct, 4:9>* c* I'B1 (Au ! 4:=4*D d* N'/& (%an, 4:>6*!
0hese were the steps, which built a stron bankin sector in 1akistan! 0his is also obvious from the facts that by 4:>6 there were almost 43 forei n banks were workin in 1akistan and all over deposit position was around Rs!7633 crore (76,333 million*! A bird eye view of 9 top banks was as iven below+

BANK POSITION IN 1 !"

BANK HBL NBP UBL MCB ABL NO. OF BRANCHES 667 579 497 506 145 DEPOSITS (Rs in Million) 6,160 5,660 5,670 1,640 570

B# NATIONA$I%ATION P&'IOD
)n %anuary 34, 4:>8 all 1akistani banks were nationali2ed throu h Nationali2ation Act 4:>8! -nder this law all 1akistani banks became a public property! All small banks were mer ed in bi er banks to create 9 maAor 1akistani banks 1akistani banks! 0hese banks were to control by 1akistan Bankin &ouncil! 0here are still controversies about this act of overnment as whether it contributed in success of failure of banks! However the maAor chan es after nationali2ation were as

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Habib Bank Limited

follows+ <orkin of banks was e"tended to under developed areas! #arket e"pansion for credit and deposits! 'ecrease in service level of bank officers! 'ecrease in profitability as well!

However the effect of e"pansion was enormous and it can also be depicted with the help of table 7 which shows the deposit F branch positions of different nationali2ed banks!

BANK POSITION IN 1
Bank HBL NBP UBL MCB ABL TOTAL No. of Branch s 1926 1448 1684 1288 750 7096

D !osi"s (Rs. In Millions) 153,431 128,679 87,482 50,013 33,757 453,362

C#

POST NATIONA$I%ATION &'A

In 4::3 the overnment decided to denationali2e all the nationali2ed ested in bankin sector! /or this purpose,

institutes! ,ome was also su

amendments were made to Nationali2ation Act 4:>8 and two nationali2ed banks were privati2ed! Alon with this a permission to open banks in private sector was also ranted! 0he rules re ardin establishment of new banks and for incomin forei n banks were also rela"ed!

Internship Report

Habib Bank Limited

0heG privati2ed banks areD

a* #&B taken up by a private roup in April, 4::4 b* ABL taken up by its own employees in ,eptember, 4::4! c* -BL taken up by -A5 party in 7337!
d* 'ecember 7:, 7336 HBL was taken by A$/5' After these chan es a lar e number of private and forei n banks started their operations in 1akistan and the present status can be seen from the followin fi ure+

Structure of !"#"c!#$ Sector !" P#%!&t#"

Sch #$l # Banks '47( ) Co**erc!#$ +#"%& ) S,ec!#$!&e- +#"%& NBFIs ) Mo-#r#+#& ) Le#&!". co*,#"!e& ) Mutu#$ fu"-& ) S,ec!#$!&e- f!"#"c!#$ '/ 0&( ) 0"1e&t*e"t +#"%& ) Hou&!". !"#"ce Co*,#"!e&

S! cialis # Banks

Co%% rcial Banks

About &abib #ank Limite'

years, HBL has

For i&n Banks ('')

Do% s"ic Banks ('()

HBL was the first commercial bank to be established in 1akistan in 4:8>! )ver the rown its branch network and become the lar est private sector bank with over 4,893 branches across the country and a customer base e"ceedin five million relationships! <ith a presence in 79 countries, subsidiaries in Hon $on and the -$, affiliates in Nepal, Ni eria, $enya and $yr y2tan and representative offices in Iran and &hina, HBL is also the lar est domestic multinational! 0he Bank is e"pandin its presence in principal international markets includin the -$, -A5,

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Habib Bank Limited

,outh and &entral Asia, Africa and the /ar 5ast! $ey areas of operations encompass product offerin s and services in Retail Bankin ! HBL has the lar est &orporate Bankin portfolio in 1akistan with an active Investment Bankin arm! ,#5 and A riculture lendin pro rammes and bankin services are offered in urban and rural centers! In the -$ and @&&, HBL focuses on trade finance and remittances for the ,outh Asian 'iaspora in addition to basic bankin facilities! HBL has always been a bank and a brand for the masses, with a history that is ine"tricably linked with the history of 1akistan itself! As it continues to row, both locally and abroad, it strives to embody its brand personality+ honest, approachable, and inclusive! HBL is currently rated AAH (Lon term* and A4H (,hort term*I! It is the first 1akistani bank to raise 0ier II &apital from e"ternal sources!

*Rating given by JCR-VIS

&"%TO!( AND #ACKG!O)NG

Habib Bank Limited was established by #r! Ismail Habib (Late* on Au ust 79, 4:87 at Bombay! It was the first #uslim Bank of the subGcontinent! It was established with a paid up capital of Rs! 7!9 million! At an early sta e, the number of its branches was only 47! HBL established operations in 1akistan in 4:8> and moved its head office to $arachi! )ur first international branch was established in &olombo, ,ri Lanka in

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Habib Bank Limited

4:94 and Habib Bank 1la2a was built in 4:>7 to commemorate the banks 79th Anniversary! <ith a domestic market share of over 83C, HBL was nationali2ed in 4:>8 and it continued to dominate the commercial bankin sector with a maAor market share in inward forei n remittances (99C* and loans to small industries, traders and farmers! International operations were e"panded to include the -,A, ,in apore, )man, Bel ium, ,eychelles and #aldives and the Netherlands!

$rivati*ation of &abib bank

)n 'ecember 7:, 7336 1akistanBs 1rivati2ation &ommission announced that the @overnment of 1akistan had formally ranted the A a $han /und for 5conomic 'evelopment (A$/5'* ri hts to 94C of the shareholdin in HBL, a ainst an investment of 1$R 77!83: billion (-,' 6?: million*! )n /ebruary 7=, 7338, mana ement control was handed over to A$/5'! 0he Board of 'irectors was reconstituted to have four A$/5' nominees, includin the &hairman and the 1residentJ&5) and three @overnment of 1akistan nominees!

&#L+s ,ision- Mission an' ,alues

;ision
5nablin people to advance with confidence and success !

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Habib Bank Limited

#ission
0o make our customers prosper, our staff e"cel and create value for shareholders!

;alues
)ur values are the fundamental principles that define our culture and are brou ht to life in our attitude and behaviors! It is these values that make us uni.ue and unmistakable! )ur values are defined below+

Excellence
0his is at the core of everythin we do! 0he markets in which we operate are becomin increasin ly competitive, ivin our customers an abundance of choice! )nly throu h bein the very best K in terms of the service we offer, our products and premises G can we hope to be successful and row!

Integrity
<e are the leadin bank in 1akistan and our success depends upon trust! )ur customers G and society in eneral K e"pect us to possess and steadfastly adhere to hi h moral principles and professional standards!

Customer Focus
<e understand fully the needs of our customers and adapt our products and services to meet these! <e always strive to put the satisfaction of our customers first!

Meritocracy
<e believe in ivin opportunities and advanta es to our employees on the basis of their ability! <e believe in rewardin achievement and in providin firstGclass career opportunities for all!

Progressiveness
<e believe in the advancement of society throu h the adoption of enli htened workin practices, innovative new products and processes and a spirit of enterprise!

#oar' of Directors

Internship Report

13 D&SI*NATION

Habib Bank Limited

NA)&

,ultan Ali Allana

&HAIR#AN

R! Lakir #ahmood

1R5,I'5N0 F &!5!)

#ushta. #alik

'IR5&0)R

Ahmed %awad

'IR5&0)R

Masin #alik

'IR5&0)R

#oe2 %amal

'IR5&0)R

MANAGEMENT

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Habib Bank Limited

P0C2 3OM HBL CO3PO3AT4 3O 0L4

Mana ement &ierarc.y

P34S0/4NT

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Habib Bank Limited

BOA3/ O /034CTO3

M4MB43 454CUT064 BOA3/

3470ONAL CH04

8ONAL CH04

B3ANCH MANA743S

DE%"GNAT"ON%

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Habib Bank Limited

1resident ,enior 5"ecutive ;ice 1resident (,5;1* ,enior ;ice 1resident (,;1* ;ice 1resident (;1* Assistant ;ice 1resident (A;1* )fficers @rade 4 )fficer @rade II )fficer @rade III &ashier &lerks 1eon

Cor/orate "nformation

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Habib Bank Limited

Hea+ Office
HBL Plaza

I! I! &hundri ar Road $arachiG>9=93, 1akistan! 0el + H:7 (74* 784?333 N93 linesO /a" + H:7 (74* :74>944

'egistere+ Office
8th /loor, Habib Bank 0ower %innah Avenue Islamabad, 1akistan! 0el+ H:7 (94* 7?>7736 /a"+ H:7 (94* 7?>7739

'egistrars
0H$ Associates (1vt!* Ltd! @round /loor, ,tate Life Bld No! 6 'r! Liauddin Ahmed Road $arachi, 1akistan! 0el+ H:7 (74* 444G333G677

,ebsites
&orporate website: www!hbl!com 0reasury website+ www!hbl tr!com!pk 5bank (internet bankin *+ www!hblebank!com

A-+itors
$1#@ 0aseer Hadi F &o! &hartered Accountants

Global location

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Habib Bank Limited

Global locations

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Habib Bank Limited

P0C2 3OM HBL CO3PO3AT4 3O 0L4

%0ot analysis
Strengt.s

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Habib Bank Limited

,tren th can be defined as an area where a company is best at doin somethin or a feature that puts the company at an advanta e in comparison to its competitors! HBL enAoys the followin stren ths+ HABIB BAN$ is a well established bank enAoyin lon history of over =9 years of e"perience and profitable operation! HBL is the lar est private bank in 1akistan now and people trust is very hi h! It has the lar est branch network amon private banks of 1akistan! HBL has been very effective in controllin costs as it successfully restructured itself after its privati2ation! 'urin this process more than 4,=33 employees were relieved under a closed! 5"cellent branches appearance ives an ed e to HBL over other banks! 0he branches are well furnished even in less developed areas where other banks branches ive a poor view! HBL has the ability to brin innovative products and services like personali2ed service, electronic funds 0ransfer, sophisticated financial products such as electronic bankin , autoGteller machines and evenin bankin ! 0he Banks Rupee 0raveler &he.ues have been market leaders for the past si" years! HBLs car to car financin scheme is uni.ue in auto loan se ment! Habib bank is an internationally reco ni2ed name in bankin products! HBL has for ed strate ic alliances with international banks for e"pandin its network further, both locally and internationally! services and olden handshake scheme and 443 branches were

,eaknesses
A weakness is defined as an area in an or ani2ation where the or ani2ation is not as ood at doin somethin as its competitors or a thin which an or ani2ation lacks

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Habib Bank Limited

thus puttin

the or ani2ation at disadvanta e in comparison to its competitors!

Based on the above definition, HBL has the followin weaknesses! Lack of communication between bank and customers about terms and condition of products and services! Like centrali2ation of che.ue book issuin process! 5mployees at branch level are not properly motivated to work by heart! 0hey take the all routine activities as a borin Aob! #ost of the employees lack mana erial trainin as they are not properly

educated! 'ue to seniority, they have moved up on the hierarchy line to @radeGI, II or III positions havin hardly bachelor de rees! 0his type of senior staff cannot apply the modern and innovative techni.ues of mana ement in decision makin ! #ission of HBL is not well defined! 0hou h HBL is second lar est bank in 1akistan, yet the fact remains that it is not market leader as NB1! Its total assets are always less than NB1 total assets! Now as it is a privati2e bank that is why @);5RNA#5N0 support to HBL decreased as it was in past

Opport-nities
An opportunity can be defined as a chan e in e"ternal environment which if properly e"ploited with the or ani2ational stren ths will result in enhanced sales, market

Internship Report

22 its stren ths, HBL can avail the followin

Habib Bank Limited

share, or income! -sin

opportunities!

)pportunities re.uire e"planation therefore I have used headin s instead of arrows &/Banking @enerally speakin , three factors, .uickness, easiness and cheapness have become the catchwords for the competitiveness and usefulness of all the business operations! 1articularly it is commonplace today to say that bankin is under oin a radical transformation! 0he symptoms are new products, new players, new channels etc! 0his transformation is takin place across all sectors of the bankin industry! 0hat is why Habib bank ur ently needs to improve their ability, to think strate ically about I0 investments! )nly those banks that use their technolo y resources effectively have the opportunity to secure real competitive advanta e in this fastG chan in industry throu h real product or service differentiation! Hig. 0ark -p rates )f late markup rates have increased considerably! 1resent rates are 8C above $IB)R i!e! 4=C app"! Hi h markup rate has decreased the interest of people in loanin from from banks! Habib bank can increase its income by offerin loan at lower interest rate than other banks!

ON$IN& BANKIN* It is doin bankin transactions throu h our home 1!&! 0he banks that do business throu h net have <ebsites! 0he customer clicks into the <ebsite and ets the history of the bank! 0hen he can demand the necessary application form throu h the net! He fills in the form and passes it on to the bank! 0he )nline bankin is fast ainin round in 1akistan! ,ome software companies are also offerin networkG bankin facilities! ,o Habib bank should focus heavily on providin online bankin faculties to its customers! &urrently it is doin the same!

CO'PO'AT& BANKIN* T&')INA$ 1CBT#

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Habib Bank Limited

Lar e corporate customers can lo into the bankBs database and have access to their accountsJtransactions from their business houses! 0his facility has still not been started for customers in 1akistan! ,o Habib can focus on that! A2TO)ATIC T&$$&' )ACHIN& 1AT)# 0his system is known as PAny 0ime #oneyP because it allows customers who have an A0# card to withdraw money at any time from the bank without interactin with human teller! ,ince the A0# machine can be installed anywhere like petrol bunks, markets, railway stations etc, and can well be linked to the main computer! It allows customers to transact with the bank 78 hours a day and 6=9 days a year! 0hey allow the customers to transfer money to and from accounts to view account information, to receive cash! It can also be used to +eposit c.e3-es an+ cas. into the accounts! No bank in 1akistan is offerin this service currently! ,o an opportunity e"ists for Habib bank to differentiate! 'ate of ret-rn 0he ran e and choice of products available F offered by the commercial banks is limited! Rates of Return J 1rofits on 'eposits are so low and unattractive that very limited options are available to the depositors! 0hey do not match the current rate of inflation! HBL differentiate and increase its deposit by offerin return on deposits! attractive rate of

T.reats

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Habib Bank Limited

0hreat can be defined as a chan e in e"ternal environment which if not met with proper strate ies will result in loss of revenues, market share, or income! In the conte"t of HBLs e"ternal environment, the followin potential threats e"ist+ )ther private commercial bank with sound profitability is also a threat to HBL e! ! -BL, Alfalah, #&B etc 0he Rupee 0ravelers &he.ue (R0&* sales volumes may be affected on account of re ulatory restriction imposed by ,B1 on issuance of lar e value denominations! /or the last of 7 to 6 years, 1akistan is facin economic and political instability which is a bi threat! /orei n banks are flourishin in field of consumer financin ! Af han war and Ira. war has a deep effect on the economy of 1akistan, which has affected HBL! Increased re ulations from ,tate Bank of 1akistan may affect its business!

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Habib Bank Limited

Operations of HB$

A1 bankin

'e/artments of .abib bank

;arious departments are workin in all the branches of Habib bank to facilitate the customers! /ollowin are the bankin departments functionin in HBL %innah &howk branch ,ahiwal!

4! 7! 6! 8! 9! =! >!

Account openin department! &ash department! &redit department! Lockers department! Bill clearin department! /orei n e"chan e department! I!0 department!

Accounts o/enin 'e/artment

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Habib Bank Limited

Basic function of the accounts department is to open new account and facilitate the customer for the account openin purpose! 0here are certain formalities which are to be observed for openin of an account with a Bank! 0hese formalities in brief are as under+

4O')A$ APP$ICATION5 0he customer is to fill PAccount )penin /orm! It is a formal re.uest by a customer to the bank to allow him to have and operate the account!

Doc-0ents re3-ire for opening an acco-nt5 &opy of &NI& ,ervice certificate or student card! -tility bill 1rovisional receipt $M& ($now Mour &ustomer* SP&CI)&N SI*NAT2'&5 <hen the Banker is satisfied about the inte rity of the customer, he a rees to open the account! 0he Banker obtains the specimen si natures of the customer on the si nature book or on card!

Posting t.e acco-nt on t.e syste05 After that officer has to post the new account on computer system for further processin ! 'urin the process customer id and account number is enerated! New account remains active for one day after that it is blocked by the head office until &NI& of the customer is verified from NA'RA!

C.e3-e book iss-ing5

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Habib Bank Limited

After the &NI& verification account openin officer has to issue a che.ue book to customer so that he can be able to make withdrawal from his account! Now a day in Habib bank che.ue book issuin complete! S&C'&C65 0he secrecy of depositors account is the! Responsibility of every official en a ed in the Bank service! process is centrali2ed that take 3= days to

0ypes of accounts+
In+i7i+-al acco-nts5 Individual accounts are the most common personal investment accounts! )pened by sin le person!

8OIN ACCO2NT5 A Aoint account occurs when two or more than two customers have one account! 0he parties to a Aoint account are considered in law as they are one person!

B-siness acco-nts5 Business accounts can be opened by institutions, companies, partnerships, trusts and nonGprofit or ani2ations! /ollowin documents are re.uired!

BOOKS '&$ATIN* TO C2STO)&'S5 Pay/in/Slip <hen money is to be deposited in the bank the pay in slip is to be filled! 0he obAect of this book is to provide the customer with the banks acknowled ement for receipt of money to be credited his account!

C.e3-e Book

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Habib Bank Limited

A che.uebook contains a number of che.ues, which is iven to a customer upon written re.uest and after markin by issue of che.ues! *'O2NDS 4O' C$OSIN* TH& C2STO)&'9S ACCO2NT5 0he banker may close the account of the customer due to followin reasons+ i! Notice by a &ustomer ii! 'eath of a &ustomer iii! &ustomers Insanity iv! By order of court 0( NOTIC& B6 C2STO)&' 0he banker closes the account of the customer on the application of the customer for closin his account! the payment for the che.uebook! It enables a customer to make withdrawal from his account or make payment to various parties

00( D&ATH O4 C2STO)&' )n death of his customer, the bank must stop payment on che.ues drawn on him by the deceased customer because the death revokes his authority to pay such che.ue! 0he heirs or the e"ecutors of the deceased customer are not authori2ed to operate on the accountD it can act only in accordance with provisions mentioned in the letter of probate issued by a competent courts!

000( C2STO)&'9S INSANIT6 If the customer becomes insane or mental it terminates the bankers authority to act as his customers a ent! ,ince the banker customer relationship comes to end, in such as situation, it is usually considered that the bankers authority to pay his customers che.ues is revoked by notice of insanity! However, the bankers treat their customers as it unless a fairly inclusive evidence of the customers insanity is available to them! 06( O'D&' O4 CO2'T A court of law may serve a banker with an order in arnish proceedin in e"ecution of a decree prohibitin him from honorin a customers che.ues!

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Habib Bank Limited

Cas. 'e/artment

&
receipts!

ash 'epartment is very sensitive and risky part of the bank! ;ery causations and competent personnel are needed for the %ob! HBL has really such a dili ent staff with appreciable competencies and will to do

work! #ain function of cash department is to deal with cash payment and cash

Cas. +eposit proce+-re5

0he customer fills the pay slip! 0he cashier receives the pay slip and cash! He counts the cash and makes the detail of the notes at the back of the pay slip! 0hen he compares the detail with amount written on slip and si ns the pay ,lip! 0hen he credits the entries in the computer by serial No, account type, Account number and amount! 1uts the stamp of the Qcash ReceivedR on the payment slip! 0he first portion is for bank record while other one is iven to the customer!

Cas. pay0ents proce+-re5

<hen a customer comes to withdraw a certain amount from his account, he brin s a &he.ue alon with him! In this case the followin steps are taken! 0he cashier receives the che.ue and checks it whether it is post dated or predated! &he.ue can be cashed within si" months! A predated che.ue cannot be cashed! He takes two si natures at the back of the che.ue from the bearer! He ives the che.ue for postin at the computer! 0he computer checks out whether there is balance in the account or not! )ther instructions are also received e! ! blocked, fro2en, 5tc! the postin is done in the computer and the che.ue is stamped posted with the serial number and date! He ives the cash to bearer and the respected account is debited!

Online f-n+ transfer5

Another function of the cash department is of online transfer of funds! &ustomer has ive filled remittances form with cash or without cash (from account transfer* to the cashier in cash department who will then credits the beneficiary account!

Balancing cas. at t.e en+ an+ transferring e:cess cas.5

At the day end cash department is responsible for balancin the cash! 1hysical cash should be balanced with the amount in the computer! %innah &howk branchs limit for cash is 83 million which it can keep within the branch over the ni ht e"cess cash is transferred to NB1!

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Habib Bank Limited

C!ED"T DE$A!TMENT
4! Introduction 7! ,ecurities! 6! 0ypes of credits INT'OD2CTION 0he function of credit department is to lend money in the form of clean advances, a ainst promissory notes, as well as secured advances a ainst tan ible and marketable securities! 0he bankers prefer such securities that do not run the risk of eneral depreciation due to market fluctuations! &ommon ,ecurities for the bankers advances are as under+G S&C2'ITI&S 12 *-arantees <hen an application for advance cannot offer any tan ible security, the banker may rely on personal uarantees to protect himself a ainst loss on advances or overdraft to the applicant! 22 )ortgage A mort a e is the transfer of an interest in specific immovable property for the purpose of security the payment of money advanced or to be advanced by way of loan, and e"istin or future debt, or the performance of an en a ement which may rise to a pecuniary liability! 0he transfer is called a mort a or, the transferee a mort a e! 32 Hypot.ecation <hen property in the shape of oods is char ed as security for a loan form the bank the ownership and possession is left with the borrower, the oods are said to be Hypothecated 0he essence of hypothecation is that neither the property in the oods not the possession of them are possession is left with the borrower, the oods are said to be Hypothecated the essence of hypothecation is that neither the property in the oods not the possession of them are possessed by the lender, but the security is ranted by means of letter of hypothecation, which usually provides for a bankers char e on the hypothecation oods!

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Habib Bank Limited

42 Ple+ge In a pled e the ownership remains with pled e, but the pled e has the e"clusive possession of property until the advance is repaid in full! <hile in case of the default the pled e has the power of sale after ivin due notice! 52 Pro0issory Note ,ometimes promissory note is also accepted as a security, PA promissory note is an instruments in writin containin an unconditional undertakin si ned by the maker, to pay on demand or at a fi"ed or determinable future time a certain sum of money only, to or to the order of certain persons, or to the bearer or the instrument!P A promissory note is incomplete until has been delivered to payee or the bearer! #oreover, the sum promised in a promissory note may be made by two or more makers who may be liable there on Aointly and severally!

T6P&S O4 AD;ANC&S
0he advances which are iven by Habib Bank Limited are as under+G 12 D&)AND 4INANC& 'Or-!"#r9 Lo#"( 'emand /inances are those advances which are allowed in lump sum for a fi"ed period and are repayable lump sum or radually in installments! T6P&S O4 AD;ANC&S a! 'emand /inance (1ackin &redit* ,cheme introduced by ,tate Bank of 1akistan for e"porter of carpet, sur ical instruments, at 2ero percent rate of interest! <hile banks provides at concessional rate of interest! b! Loan ordinary ('emand /inance to ,tudents* Sar2GeGHasana ,cheme Loans are allowed to the students, teachers without any interest or mark up with the recommendations of the #1A or #NA! c! 'emand /inance (,taff* Loans are offered to the staff of the followin four cate ories! i! House Buildin Loans a ainst mort a e of property! ii! Loan for purchasin vehicles! iii! Loan e.uivalent to months salary! 22 '2NNIN* 4INANC& 1O7er+raft# Runnin finance (old name overdrafts* are advances, which are enerally, iven to meet temporary re.uirements of the customers! A security defense to meet his commitments! ood customer use the banks runnin finance limit as a mean of protectin his credit in the market and as a line of

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Habib Bank Limited

T6P&S O4 '2NNIN* 4INANC& I! -nsecured -nder such type of overdraft the bank pay upon the personal security of the customers mentioned on the customers account! II! ,ecured -nder this type of overdraft the bank allows his customer to withdraw more than his deposits after ivin security a ainst the amount overdrawn! 0he securities a ainst which they iven are+ i! ,hare certificate, ,avin certificate ii! 'eposits iii! #ort a e of property iv! @uarantee of person S)A$$ $OANS Lo#" !& #$$o:e- to co"tr#ctor& c$e#r!". #"- for:#r-!". #.e"t&2 32 4INANC& A*AINST TH& 4O'&I*N BI$$S 14A4B# 0he advance facility is allowed both to local forei n bills and is classified as under+G i! /A/B (Local* advance a ainst Railway receipts and truck receipt, a company with bills of e"chan e and invoices, are iven under this head! ii! /A/B (/orei n* advances a ainst forei n bill, coverin bills of e"chan e bills of ladin airway bills of e"chan e bills of ladin airways bills etc! 42 A*'IC2$T2'& $OANS Loans to the farmers with holdin up to 79 acres for meetin their short terms, medium and lon terms A ricultural production re.uirements, such as+ i! ii! iii! iv! A ricultural inputs 0ube wells Live ,tock /ramin Land improvement

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Habib Bank Limited

52 IND2ST'IA$ $OANS Besides the shortGterm loans which play a part in workin capital medium and lon G term loans are also iven to industrial sector for purchase of machinery and other capital nature oods!

#ills clearin 'e/artment

INT'OD2CTION 5very bank acts in two way i!e! i! 1ayin Bank ii! &ollectin Bank Here in theory no le al obli ation on a banker to collect che.ues, drawn up to other banks for a customer! It is, however, an important function of crossed che.ues! A lar e part of this work is carried out throu h the N!I!/!0! NI4T/ National Instit-tional 4acilitation Tec.nologies 1P7t.# $i0ite+5 NI/0 is a Aoint venture between a consortium of si" maAor banks and private sector! It is responsible for the establishment and mana ement of automated clearin house facilities in 1akistan! NI/0 is proactively involved in the moderni2ation of payment systems in 1akistan! 42NCTION O4 C$&A'IN* D&PA'T)&NT 0he followin are the main functions of clearin department! 8! 0o accept transfer deliveries and clearin che.ues from the customer of the branch and to arran e for their collection! 9! 0o arran e the payment of che.ue drawn on the branch and members, or subGmembers of the local clearin area!! =! 0o collect amounts of che.ues drawn on members, subGmembers of the local clearin house, sent for collection by those Habib Bank Limited, branches which are not represented a the local clearin area! P'OC&D2'& O4 D&POSITIN* CH&<2&S IN C$&A'IN* D&PA'T)&NT <henever a customer wants to deposit che.ue, etc, he fills a pay in slip and hands it over the counter alon with the instruments he wants to deposit with bank! iven for

collection to any other branch of Habib Bank of 1akistan or any other

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Habib Bank Limited

As far as possible, the customer desire that on of the staff member fill in a slip for him, he should be obli ed promptly! )ne portion of the perforated pay in slip is handed over to the depositor and the portion becomes the re ular portion of a credit voucher T6P&S O4 CH&<2&S CO$$&CT&D B6 C$&A'IN* D&PA'T)&NT a! 0ransfer &he.ues 0ransfer che.ues are those che.ues, which are collected and paid by the same branch of bank! b! 0ransfer 'elivery &he.ues 0ransfer 'eliver che.ues are those che.ues, which are collected and paid by two different branches of a bank, situated in the same city! c! &learin &he.ues &learin che.ues are those che.ues in which the payee (1erson who deposit che.ues for collection* and the drawer of a che.ue maintain the account with different banks! 0hese clearin instruments are handed over to NI/0 after postin necessary stamps and checkin them for any errors! 0hen further process of clearin is carried on the behalf of NI/0!

2orex De/artment
International trade is rowin and with the development of international trade it has become more imperative! /or countries to devote more and more attention to the complicated mechanism of /orei n 5"chan e! It is more important in case of developin countries! It is need of time, that a country should conserve its forei n e"chan e resources! )&ANIN* O4 4O'&I*N &=CHAN*& 0he forei n e"chan e term refers to the principles that determine the rate of e"chan e! It covers followin three senses+ i! 0he mechanism or system by which international obli ations or indebtedness are fulfilled! ii! 0he currency of one country is e"chan ed for that of another! iii! 0he principles on which the people of world settle their debts to one another!

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Habib Bank Limited

$etter of Cre+it5 It is a ne otiable instrument throu h which the bank of the e"porter deals with bank of the importer throu h the uarantee of a bank! 0here are different parties involved in the LJ&, eG importer, e"porter, importer bank, e"porter bank, and advisory bank! L& involves bankin channels in forei n trade to miti ate risk! 0he procedure of openin of an LJ& is as follow 0he first thin is the 1erforma invoice! 0he 1erforma invoice is a document (say a clip*, which is, sends by the e"porter to the importer and includes the information like! 'escriptions of oods, what type of oods you are needed and what are the .uality, rate and ori inatin country etc! Before to open a LJ& the bank also consider that the oods which the importer is importin is allowed by ovt! of 1akistan or not! Because the importer is not allowed to import that oods which are prohibited by the @ovt! of 1akistan! 0he importer is asked to show the membership certificate of any chamber of commerce and industry affiliated with the 1akistan federation of chamber of commerce and industry! /ill the import form of the ovt! of 1akistan, which is the proof of this that there is no obAection on the oods, which the customer is importin ! <hat type of oods you are needed and what are the .uality, rate and ori inatin country etc! Necessary 'ocuments re.uired for LJ&+ N0N 0a" Authority re istration certificate &hamber of Associations trade certificate 0ype of Business NI& #ar in Re istration No! Application for LJ& )n providin these documents the importer will be iven the LJ& form named as IBG?! Contents of IB > 4! Re.uest for L&

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Habib Bank Limited

7! Rate 6! Importer and 5"porters particulars 8! Amount 9! 0erms =! 1artial ,hipment (Allowed, not allowed* >! 0ransshipment (Allowed, Not Allowed* ?! 1ort of Loadin and destination :! 1ayment #ode I! ,i ht )n seein the documents the importer has to pay! II! At ,i ht and Ne otiation+ It means that e"porter will submit his documents with the bank and immediately asks for payment! III! Acceptance+ )n showin the documents to the importer, the bank asks him to accept that he will pay within 63, =3, :3, 473, 4?3 etc days! 43! 'ocuments Re.uired+ &ertificate of )ri in! &ommercial Invoice Bill of Ladin J Air way bill! C.arges5 /or LJ& followin char es are applicableD &ommission 1osta e LJ& Advisin commission LJ& amendment &ommission LJ& confirmation &ommission LJ& Ne otiation &ommission 1ayment #ode+ In forei n trade payment modes are 4* Advance 1ayment+ Importer makes payment before delivery of oods!

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Habib Bank Limited

7* )pen AJ&+ Importer makes payment after receivin the oods! Iss-ing foreign e:c.ange acco-nts c.e3-es books Another function of forei n e"chan e department in %innah &howk branch is to issue forei n e"chan e accounts che.ues books to customers on re.uest! 0his process is not yet centrali2ed! &he.ue book is issued within 49 minute of receivin re.uest from customers after makin necessary re ister entries and postin stamps on it!

Pro+-cts an+ Ser7ices of Habib Bank $i0ite+

!etail #ankin
For

0"-!1!-u#$ Cu&to*er&

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Habib Bank Limited

De/osit Accounts
C-rrent Acco-nts
#ake unlimited transactions while maintainin a low minimum balance every month! HBL is currently offerin three types of accounts in current account cate ory! 0heir detail and name is as under! 4! HBL Business;alueAccount 7! &urrent Account 6! Basic Bankin Account (BBA*

HB$ B-siness;al-eAcco-nt
-ni.ue transactional account for Businessmen -p to 9!69CI profit per annum 1rofit calculated daily, paid every .uarter #inimum balance of Rs! 73,333 HBL 'ebit&ard and Inter Branch 0ransaction ,ystem (IB0,* facilities -p to 43 Bankers &he.ues free (at minimum balance of Rs! 933,333* /unds transfer to any bank throu h HBL 1honeBankin

C-rrent Acco-nt
#inimum balance of Rs! 9,333 -nlimited transactions NonGprofit bearin HBL 'ebit&ard and Inter Branch 0ransaction ,ystem (IB0,* facilities /unds transfer to any bank throu h HBL 1honeBankin

Basic Banking Acco-nt 1BBA#

&an be opened with only Rs! 4,333 No minimum balance re.uirement -pto 7 withdrawal and 7 deposit transactions free every month -nlimited withdrawals throu h HBL 'ebit&ard NonGprofit bearin

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Habib Bank Limited

Sa7ings acco-nts
Avail the fle"ibility of makin transactions while earnin profit on dailyJmonthly basis! HBL is currently offerin five types of accounts in savin s account cate ory! 0heir detail and name is as under! 4! HBL ;alue Account 7! 1L,G,avin s Account 6! Remittance #unafa 1lus ,avin s Account 8! 'aily #unafa Account 9! 'aily 1ro ressive Account

HB$ ;al-e Acco-nt

>!4:CI profit per annum 1rofit calculated monthly, paid every .uarter 'eposit ran es from Rs! 43,333 to Rs! 4,333,333 0wo withdrawals free every month

P$S/Sa7ings Acco-nt
9!3=C profit per annumI 1rofit paid biGannually HBL 'ebit&ard and Inter Branch 0ransaction ,ystem (IB0,* facilities /unds transfer to any bank throu h HBL 1honeBankin #inimum balance of Rs! 73,333 -nlimited transactions

'e0ittance )-nafa Pl-s Sa7ings Acco-nt

,pecial account for receivin forei n remittances 9!47CI profit per annum 1rofit paid every month #inimum balance of Rs! 73,333

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Habib Bank Limited

Daily )-nafa Acco-nt

1rofit calculated daily, paid every month -p to ?!?8C profit per annumI HBL 'ebit&ard and Inter Branch 0ransaction ,ystem (IB0,* facilities /unds transfer to any bank throu h HBL 1honeBankin #inimum balance of Rs! 73,333

Daily Progressi7e Acco-nt

-ni.ue transactional account for Institutions 1rofit calculated daily, paid every month -p to 44!9>C profit per annumI Inter Branch 0ransaction ,ystem (IB0,* facility /unds transfer to any bank throu h HBL 1honeBankin #inimum balance of Rs! 73,333

Ter0s Acco-nts
Invest your savin s in HBL term deposits for a fi"ed duration and earn profit while keepin your savin s secure! HBL is currently offerin one type of account in terms account cate ory! 0heir detail and name is as under! 4! HBL Advanta e Account

HB$ A+7antage Acco-nt

#ultiple options for tenure and profit payout Loan facility up to :3C of investment #inimum investment of Rs! 79,333 <ithdrawal at end of fi"ed term Ten-re 6 #)N0H, =#)N0H, 4 M5AR, 6 M5AR, 9 M5AR, 43 M5AR, Profit at 0at-rity >!93CI ?!33CI 44!33CI 46!33FI 48!33CI 4>!33CI

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Habib Bank Limited

4oreign C-rrency Acco-nts

HBL offers /orei n &urrency Accounts in multiple currencies as savin s and term accounts! 0heir detail is as under!

4C/SB
,avin s Account offered in 6 currencies, -,' (-, dollar*, 5-R (5uros* and @B1 (-$ pound* 0iered product, with rates dependin on choice of currency 0o earn profit, minimum balance in -,', 5-R and @B1 is 4,333 Interest is payable on a .uarterly basis

H644D 1Hig. 6iel+ 4oreign C-rrency 4i:e+ Deposit#

Available in 4 month, 7 month, 6 month, = month and 47 #onth in -,', 5-R and @B1 0iered product, with rates dependin on choice of currency and term 1rofit paid on maturity only! No interim interest is payable!

?NOT&5 All the rate and terms and condition are revised by HBL after every si" months periods! 0hese rates are only applicable for period 34!3>!3: to 64!47!3:! /urther detail of terms and conditions about profit and rates is iven in anne" QBR!

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Habib Bank Limited

&#L car loan

HBL &ar Loan helps customers to et their preferred car throu h a simple and hassleGfree process, backed by superior service and support! Now customer can drive a car he always wanted!

4eat-res
&hoice of used, new localJimported and reconditioned imported car! Repayment options ran in -pto > years! -pto ?9C of financin for the car of your choice! Insurance at all times for complete peace of mind and security! Round the clock support available throu h HBL 1honeBankin D you can place your re.uests and .ueries, track the status of your repaymentJloan account and avail other valueGadded services throu h HBL 1honeBankin !

&ligibility Criteria

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Habib Bank Limited

Ho@ to apply
%ust visit any HBL branch or Habib Bank Auto /inance &entre for details and application! ,ubmit complete set of application without any char es to the branch or the Auto &enter! ,i n the necessary documents on approval of the application 1ayment is released within 78 hours of the submission of postGdated che.ues and initial payment after approval of the re.uest!

Doc-0entation
Salari # In#i)i#$als &omplete Application /orm ,alary &ertificate J #ost recent ,alary ,lip Bank ,tatement for past one year 0wo &opies of NI& 5mployment &ertificate with date of Aoinin 0wo passport si2e photo raphs &opy of the last paid utility bill (residence* Self/&0ploye+ B-siness personsAProfessionals &omplete Application /orm 0wo &opies of NI& 0wo passport si2e photo raphs Letter of proprietorship J Re istered 1artnership 'eed &ertified latest /orm A and /orm 7:, where applicable, alon with articles and #emorandum of Association &opy of last paid utility bill (residence* Bank ,tatement for the last 4 year

&#L car to car

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Habib Bank Limited

HBL &ar0o&ar is a revolutionary car financin offer! It makes the car of customer choice affordable and practical with a b-y back g-arantee! HBL &ar0o&ar offers matchless features and uni.ue options at the end of the lease! Now customer can drive a new car at the end of every two years!

4eat-res
Pa* onl* for +ha" *o$ $s <hen customer lease a car under HBL &ar0o&ar, he only pay for that part of the cars value that he use durin the lease term! 0he cars residual value (forecasted for the end of the specific lease term* is a reed with him at the start of the lease term! 0his amount is deducted from the car price thus lowerin the finance amount! 0his finance amount is based only on a part of the cars value and not the full value of the car! 0herefore, HBL &ar0o&ar offers very low installments as compared to any conventional financin ! ,!&ra# of lif s"*l HBL ives customer the uarantee that if he wishes to return the car to HBL at the end of the lease term, he will not have to pay off the cars residual value! Instead, HBL will directly settle this outstandin any complication and hassle! Affor#a-ili"* <ith HBL &ar0o&ar, customer only has to pay the difference between the car price and the preGa reed residual value to the bank! As a result, the monthly installment may even be 83C to 93C less than that of conventional financin ! Fl .i-ili"* HBL &ar0o&ar offers customers several choices at the end of the lease term+ T 2pgra+e G ,imply return the car to HBL and drive a new one home T ,alk a@ay / Return the car to HBL and end the lease T B-y / $eep the same car! %ust make a oneGtime settlement of the cars residual value to HBL or pay the same in easy installments over a specified e"tended period of time liability for customer under the buy back uarantee! Hence, he can up rade to a new car as fre.uently as two years without

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Habib Bank Limited

T Sell / 5nAoy the ain from sellin off the car at a hi her price in the market than what you ay HBL as the residual value

&ligibility Criteria

Doc-0entation
Salari # In#i)i#$als &omplete Application /orm ,alary &ertificate J #ost recent ,alary ,lip Bank ,tatement for past one year 0wo &opies of NI& 5mployment &ertificate with date of Aoinin 0wo passport si2e photo raphs &opy of the last paid utility bill (residence* Self/&0ploye+ B-siness personsAProfessionals &omplete Application /orm 0wo &opies of NI& 0wo passport si2e photo raphs Letter of proprietorship J Re istered 1artnership 'eed &ertified latest /orm A and /orm 7:, where applicable, alon with articles and #emorandum of Association &opy of last paid utility bill (residence* Bank ,tatement for the last 4 year

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Habib Bank Limited

&#L Cre'it Car'

By the help of HBL credit card customer enters into the world of convenience and fle"ibility! Accepted at over 7: million merchants worldwide, HBL &redit &ard makes shoppin fun and payin simple! ,o that a customer can make the most of his shoppin e"perience!

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Habib Bank Limited

Benefits
B$* no+/ !a* la" r Buy what customer want, when he want and pay for it later! A credit card statement will be sent to him every month with details of all his purchases! He will have 74 credit free days to make the payment from the statement date! &ustomer should pay at least 6 days in advance if he makes your payment by che.ues to allow enou h time for clearance!

Pa* as %$ch as c$s"o% r +an"s A customer can pay the entire or as little as 9C of the outstandin balance in his statement! 0he unpaid amount will be transferred to his ne"t months statement alon with applicable services char es! Cash a#)anc &ustomer can o to any specified HBL branch and withdraw cash at the counter! He can also o to any 4Link A0# in 1akistan and more than 4,333,333 A0#s worldwide displayin the ;isaJ1lus lo o! <ithdraw cash up to the available cash advance limit on his HBL &redit &ard for a char e applicable from the withdrawal date! Balanc "ransf r facili"* &ard holder can pay off balances he owes to other banks throu h his HBL &redit &ard at a lower service char e! S c$ri"* &ard holder cannot lose cash if he doesnt carry itU In the event that his card ets stolenJlost, he should call HBL 1honeBankin to have his card blocked immediately!

&bl 'ebit car'

HBL ;isa 'ebit &ard allows a card holder to pay for his purchases directly from his bank account! He doesnt have to carry cash and his monthly statement provides

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Habib Bank Limited

him with a complete record of all his transactions so he can mana e his e"penses with ease!

4eat-res
No In" r s" HBL ;isa 'ebit &ard is the perfect way of payin for purchases as it ives access to the e"act amount of money a customer needed, as and when he needs it! 0here is no interest or credit on payments because he spends from the money available in his personal HBL Account! Eas 0 S c$ri"* HBL ;isa 'ebit &ard offers ease and convenience because card holder doesnt have to visit an A0# to withdraw cash! 1ayin with the HBL 'ebit card is safe because it eliminates the need to carry cash! A sin le swipe automatically debits the e"act purchase amount from his personal HBL account! S! n#in& 1i%i"s 0he daily spendin limit at shops and outlets on HBL ;isa 'ebit &ard is Rs! 433,333! (0hese fi ures are subAect to the balance available in account*! Fr Acco$n" S"a" % n"

HBL cardholders receive a free monthly account statement for their 'ebit &ard and A0# transactions to help them keep track of their spendin ! In" rna"ional R co&ni"ion 0 Acc !"a-ili"*

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Habib Bank Limited

HBL ;isa 'ebit &ard is accepted at over 73 million ;isa merchants worldwide, includin over 43,333 merchants in 1akistan! As an A0# card it is accepted at more than 4,333 4GLink F #GNet A0#s in 1akistan and ?=8,333 ;isa A0#s worldwide! No matter where card holder is, with the HBL ;isa 'ebit &ard, HBL is always with him! No 1ia-ili"* In case of a lost or stolen card, card holders are protected a ainst fraudulent transactions made on their card after they report the incident!

.bl /ersonal Loans

<ith the risin cost of livin , it is becomin increasin ly difficult to make e"pensive purchases or meet une"pected e"penses! HBL is helpin customer finance them with Habib Bank personal Loans (old name fle"i loan*! &ustomer may avail a personal loan of up to ,IV 0I#5, of his net takeGhome salary subAect to a ma"imum of Rs!633,333JG provided he work for an or ani2ation approved by HBL!

4eat-res
/le"ible tenure+ 47, 78, 6=,8? or =3 months No processin fee Repayment throu h easy and affordable monthly installments from salary! &redit Life F 'isability Insurance Repayment throu h easy and affordable monthly installments Mou determine the need, we help you finance )ption of add up replacement for e"istin customer! #inimum salary Rs! 47333 No salary limit for e"istin customers! 76C or 74C rate for e"istin users instead of 79C

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Habib Bank Limited

.bl /.one bankin

Now the bank is Aust call away! &ustomer can now call HBL 1honeBankin and save a trip to the branch! His .uery will be resolved in a sin le telephone call from anywhere and at anytime!

T/PIN *eneration
&ustomers 01IN (0elephone 1ersonal Identification Number* is enerated the first time he calls and he can use it as your password for verification purposes, selfG service bankin throu h I;R and additional services throu h HBLs 1honeBankin )fficers! &ustomer can chan e his 01IN anytime he like!

HB$ P.oneBanking ser7ices for Deposit Acco-nt c-sto0ers

&ustomers can use the Interactive ;oice Response (I;R* system or talk to HBL 1honeBankin )fficers to+ @et his account balance @et information about the last 9G43 transactions carried out on his account Re.uest bank statement, either throu h fa" or email (as supplied in his subscription form* @et details of transactions from the last = months on each of the accounts listed on his subscription form &han e andJor modify his contact details 0ransfer funds between his own accounts (as listed in the subscription form* or from his account to a third party account (as listed in the 0hird 1arty Authori2ation /orm* 0ransfer funds from his own account to an account in another bank under the 4GLink network (Inter Bank /unds 0ransfer* @enerate his own choice of A0# 1in without fillin a re.uest at your branch In.uire about HBLs product offerin s Lod e a complaint in case of any inconvenience In.uire about the daily accounts related profit rates and currency e"chan e rates

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Habib Bank Limited

Re.uest a number of physical instruments andJor branch bankin services that he mi ht re.uire, includin + 1ay )rder 'emand 'raft ,tatement Balance &ertificate &he.ue Book

related

HB$ P.oneBanking ser7ices for HB$ CarToCar an+ Car $oan c-sto0ers
HBL &ar0o&ar and HBL &arLoan customers can enAoy the followin throu h HBL 1honeBankin + Balance In.uiry Last 9G43 0ransactions ,tatement @eneration (5mail and /a"* Account #aintenance Assistance in case of &ar 0heftJ'ama e services

&bl bancassurance
HBL and New %ubilee Life Insurance &ompany Limited (N%LI* introduce Amaan (Retirement 1lan* and 0abeer (&hild 5ducation F #arria e*! 0hese products have been desi ned keepin HBLs customer base as the focus and will provide life insurance alon with an investment option!

A0aan 1'etire0ent plan#

Amaan is a pension plan that provides an opportunity for rowth throu h investment in a balanced portfolio with postGretirement income benefits! 0he plan covers life insurance and ives attractive returns on investment to its customers!

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52

Habib Bank Limited

Tabeer 1C.il+ &+-cation an+ 0arriage plan#

0abeer is a plan that provides parents with a means to accumulate a fund over a period of time which can then be used to pay for a childs education or marria e! 1lans are available for both under and over 89 years of a e!

Lockers
Lockers are available in many of the HBL branches in different si2es like small, medium and lar eD some branches also have e"tra lar e and cubical lockers! 5"cept rural areas because of security reasons!

&ligibility for -sing lockers

)nly the account holders can avail the facility of lockers! 0he annual rent will be directly debited from their respected accounts at the start of the year!

C.arges

SiBe
SMALL M4/0UM LA374

Key +eposit 1ref-n+able*

2500 3000 4000

Ann-al rent 's.

2750 3850 6050

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53

Habib Bank Limited

$ey deposit is refundable at the time handin over the locker to bank! /or the staff of HBL key deposit is not re.uired and also the annual rent is very low for them!

&bl cor/orate bankin

HBL &orporate Bankin lon history of financin @roup comprises a seasoned team of Relationship and nurturin rowin relationships in 1akistan has iven HBL a #ana ers (R#s* to meet the demandin service standards of lar e corporations! A uni.ue insi ht, enablin it to provide timely and effective financial solutions for their customers to meet the challen es of a lobal economy! /or a corporate customer, with a turnover of at least 1$R 633 million, HBL has a ran e of solutions desi ned to help him with his bankin needs! 0heir R#s have the e"pertise to the specific needs and works customer need to create tailored financial solutions caterin e"istin business, HBLs team understands customers bankin

re.uirements of his business! <hether establishin a new venture or e"pandin an closely with him to reali2e his oals!

Ser7ices
HBL provides the followin services to meet customers fundin re.uirements+ <orkin &apital /inance, includin )verdraft, /5 Loans, etc! 1re and 1ost ,hipment 5"port /inancin (1$R and -,' based* Import /inancin (1$R and -,' based* L## /undin Receivable 'iscountin Islamic Bankin facilities

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Habib Bank Limited

&ash #ana ement ,ervices 0rade ,ervices includin Letter of &redit, Letter of @uarantee and ,tandby Letter of &redit, etc!

HB$ CO'PO'AT& C&NT&'S

1.Corporate Centre, Karachi 6.Export Processing Zone, Karachi 2.PIA Branch, Karachi 7.Steel Mills, Karachi .Stoc! Exchange, Karachi ".Stoc! Exchange, #ahore $.Corporate Centre, Isla%a&a' (.Morga Branch, )a*alpin'i +.Corporate Centre, ,aisala&a' 1-.Corporate Centre, M.ltan 11. Karachi Port /r.st, Karachi

&#L Commercial bankin

HBLs &ommercial Bankin @roup tar ets medium si2ed companies with a turnover of at least 1$R 93 million! Its business units are located in $arachi, Lahore, /aisalabad, ,ialkot, @uAranwala and 1eshawar! 5ach unit is dedicated to service business clusters located within these cities! 0hey have the ability and the resources to meet the needs of customers business with their proGactive, responsive and e"perienced Relationship #ana ers who are committed to understandin customers business!

Ser7ices
HBL offers financin for the followin + <orkin &apital 1rocurement of Inventory Receivables 1rocurement of #achinery 5"pansion of production facilities Import of raw materials 5"ports @uarantees

HB$ CO))&'CIA$ BANKIN* C&NT&'S

1.Al01oor, Karachi (.,oreign Exchange, Karachi

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55
11.S.I./.E. Karachi

Habib Bank Limited

2.Korangi In'.strial Area, Karachi .Sa''ar, Karachi $./ari2 )oa', Karachi +.Ba'a%i Bagh, #ahore 6.Kash%ir )oa', Sial!ot 7.S%all In'. Estate, Sial!ot. ".Peoples Colon3, ,aisala&a'

1-.1apier )oa', Karachi

12.Panora%a Centre, #ahore 1 Peco )oa', #ahore 1$.Paris )oa', Sial!ot 1+.Circ.lar )oa', ,aisala&a' 16./r.st Pla4a, 5.6ran*ala

17.S.per Mar!et, Pesha*ar

&bl *arai bankin

HBL LaraiBankin facilities are spread across the country and provide financin throu h more than ?33 of their branches! HBLs presence in all a riculture belts of the country ensures easy access to farmers in rural areas! HBL LaraiBankin provides loans to smallGscale land ownin farmers as well as lar e institutionali2ed and alliance based finance, enhancin output of the country! a ricultural harvest and, in turn, economic

Pro+-cts
HBL LaraiBankin pro rams! enables farmers to invest in premier .uality seeds, fertili2ers, pesticides, a ricultural implements and nonGfarm setups throu h its various product

Cro! In!$"s &rop specific finance for purchase of A riculture inputs such as seed, fertili2er, pesticide and other related inputs! Far% I%!l % n"s

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56

Habib Bank Limited

/inance available for purchase of farm implements F machinery like combined harvester, sprayers, plou hs, tube wells and other cropGrelated toolsJimplements! Trac"ors2A&ric$l"$ral 3 hicl s /inance available to individual farmers, selfGemployed tractor operators, providin the option to select vehicles from a ran e of different manufacturers! 1i) s"ock /inance available for feed, medicines, raw material, raisin related activities! Po$l"r* /inance available for all poultry related activities includin poultry farm constructionJe.uipment, hatchery plant F machinery, poultry feed, poultry medicines, composite feed production, poultry processin and other related activities! Fish Far%in& /inance available for inland fish farms as well as deepGsea fishin ! 0his includes procurement of boat, fish locatin other related activities! 4ro$! 1 n#in& %oint finance facility for a capital re.uirement! NOT&5 0hese finances may be availed under 'emand /inance or Runnin /inance cate ories! 'emand /inance is usually available for short term financin needs while Runnin /inance is available on the basis of revolvin limit! roup of farmers with small land holdin s for workin e.uipment, nets F ropes, ice maker, fish farm water solution, hatchery constructionJe.uipment, purchase of medicines J feed and char es and other

"slamic bankin
Islamic Bankin is a rowin market se ment that offers attractive opportunities to potential and e"istin customers! At HBL, Islamic Bankin offers ,hariah compliant products and services to meet the short and lon term re.uirements of business, trade and industry!

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57

Habib Bank Limited

S.aria. Co0pliance
HBLs Islamic Bankin products are in strict compliance with the tenets of ,hariah and bear ,hariah &ompliance &ertification from an independent ,hariah Advisor! 0heir ,hariah Advisor has in depth e"perience in ,hariah rulin s (/atawa* and teachin s at different forums with .ualifications of 'arsGeGNi2ami, #!A and L!L!B! HBL also have a ,hariah ,cholar, as member of their ,hariah ,upervisory &ommittee to ensure a sound ,hariah &ompliance mechanism, responses to customers needs and access to ,hariah knowled e! ivin prompt

Pro+-cts an+ Ser7ices

&orporate and &ommercial customers can choose from ,hariah compliant bankin solutions to meet their business needs! I5arah (1 asin&) #edium to lon term facility for vehicles, plant and machinery leased out to the client on rental basis! Di%inishin& M$sharaka #edium to lon basis! M$ra-aha Local and Import facilities for purchase of raw materials, semi finished and finished oods, stores or spares! Tra# S r)ic s Letter of &redit /acility, &ollection of /orei n Bills, &ollection of Local Bills, Letter of @uarantees! &ustomers are welcome to visit their Islamic Bankin services; &urrent Account (1$R, -,', 5-R), 1)-N' ,05RLIN@* Basic Bankin Account A0#J'ebit &ard /acility /orei n J Inland Remittances -tility Bills &ollection 5Gbankin J Internet Bankin ,ervices 78J> 1hone Bankin ,ervices branch for the followin term facility for vehicles, plant and machinery on Aoint ownership

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Habib Bank Limited

1ersonali2ed customer friendly services ,avin 'eposits will be introduced soon

Branc.
A++ress 4inlay Ho-se *ro-n+ 4loor I.I C.-n+rigar 'oa+ Karac.i Contact +etails5 C(1/"(D( "CDE "(D( D"1F"( 4a: C(1/"(D( "C! &/0ail hbl!9333Whbl!com

Learnin

as an intern

As every body knows that P$nowled e without practice is sterile PIn order to ive vent to this idea an Internship pro ram of si" to ei ht weeks has been arran ed in different esteemed or ani2ations durin #!B!A! In this re ard on 49th of %une 733:, I was asked by #r! #ir2a ,aeed (HR officer in HBL re ional office ,ahiwal* to o to Habib Bank %innah &howk branch to start an internship of seven weeks there! 'urin this period I ot a chance to work and learn in followin departments of the bank+ /orei n e"chan e department Bills clearin department &redit department I!0 department &ash department Accounts, A0# and Lockers department

D-ties an+ learning in 4oreign e:c.ange +epart0ent

/irst of all I started my trainin in forei n e"chan e department of the bank under the supervision of #r! Asif I.bal (#ana er /ore" department*! I came to know about the

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59

Habib Bank Limited

different functions of forei n e"chan e department and how to perform these functions durin my work in the department! #y +-ties in the department were related to the followin s+ /orei n currency e"chan e rates! Letter of credit (L!&* both openin and ne otiation! Letter of uarantee Issuin check books for forei n currency accounts Remittances applications! $earning Opening of letter of cre+it. Bank starts workin on openin process after an application is received from the buyer (importer*! I came to know about the process of openin of L!&, documents that bank demands from applicant, form used for that purpose, ettin A!0 (Availance 0icket* from re ional head office and scannin and mailin the documents to head office $arachi for the purpose of ettin approval, and payment on maturity date! )penin and ne otiation both are centrali2ed process in Habib bank therefore approval from head office is re.uired! Negotiation of $.C! Bank starts ne otiation of letter of credit (which would be already opened by importers bank* after the application from seller (e"porter*! Before sendin the documents for payment to importer bank ne otiator bank must ensure that the entire document mentioned in &laus 8=A of the L!& are attached and complete! 'urin the week I also worked on 'e0ittances application! An applicant who wants to transfer funds abroad must have a forei n currency account in the bank! Because ,tate Bank of 1akistan only allow account to account transfer of funds abroad throu h banks! And I came to know about the process and information re.uired to fill the form! I also came know about the process of issuin about the mechanism of forei n trade! forei n currency accounts che.ue book to customers! 'urin the week I learn many thin s

D-ties an+ learning in bill clearing +epart0ent

0he second department in which I ot a chance to work was bill clearin department! 'urin the work in clearin department I came to know about the different functions of clearin department and how to perform them! I came to know the process of receivin che.ues by 'ak, how to check che.ues for any error like, the che.ues member of area which comes under should be of the bank which is the clearin

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60

Habib Bank Limited

%innah &howk branch for e"ample if the che.ue is of bank AlG/allah Lahore then it should o to 2onal branch of Lahore re ion instead of 2onal branch of ,ahiwal! 0hen checkin whether the amount of che.ue and )B& (outward bank collections* voucher attached to it is same or not! If no error is found then makin re ister entries by notin down their )B& number branch code and amount of the voucher! 0hen+ &alculatin the total amount of vouchers by summin individual amounts! &alculatin the total amount of che.ues by summin individual amounts! 1reparin an add list to be attached with clearin instruments (che.ues*! <ritin vouchers for demand drafts! And I also came to know about the different types of stamps and their use in particular situation like 'A$ R5&5I;5' stamp and &L5ARIN@ stamp! After attachin add list, clearin instruments are handed over to NI/0 for further processin ! 0hese clearin instruments are delivered to their respective banks for clearance by NI/0! I also learnt in case of Bankers &he.ues how to verify si nature from the book in which all the si natures of authori2ed persons of HBL are iven with their specific code! And I also worked on )B& ()utward bank collection* forwardin schedule! I came to know the process of sendin /illin vouchers Assi nin )B& numbers #akin entries in )B& re ister che.ues or other clearin instruments for clearance to 2onal branch of another re ion!

D-ties an+ learning in cre+it +epart0ent

After bill clearin department I started my work and learnin in credit department of the branch! #r! Haroon Butt (&redit #ana er* told me about the terms and conditions of the commercial loan, types of commercial loan like industrial loan and loan for merchants, how to make proposal for commercial loan, document re.uired to make a proposal, markup of commercial loan (4?!9 C annually*! He also ave me chance to view some old proposals and the proposal on which he was workin ! #r! Asif (assistant for #r! Haroon butt in credit department* who is dealin consumer financin ! He told me about different types of consumer financin ! /le"i loan (personal loan* Auto finance Lifestyle loan

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Habib Bank Limited

In ,ahiwal re ion at this point of time from HBL only personal loan is active while auto finance is about to start a ain in near future and lifestyle loan is inactive! I came to know about the terms and conditions of personal loan! )nly the markup for different cate ories like 74C, 76C and 79C! 74C for e"istin users upto 6 year duration 76C for e"istin users for 8 or 9 years duration! 79C for new customers I also did work on documentation process for personal loan! I came to know about the different types of document re.uired to complete a case for sendin it to re ional head office for approval! 'ocument like branch check list, application form, &opy of &NI& of customer and two references, &NI& verification report from NA'RA, customers account statement, finance a reement form etc! I also came to know about different types of securities which a bank demands from customer while issuin loan! e! ! @uarantees, #ort a e, Hypothecation and 1led e! overnment servant who has his salary account at least si" month old in HBL can apply! 'ifferent

D-ties an+ learning in Acco-ntsE AT) an+ $ockers +epart0ent

0hen I learned about A0# 1a-to0atic teller 0ac.ine*! I came to know about the functions and workin process of A0# machine! Loadin cash and balancin at the time of loadin a ain! Ne"t my main concern was to know about all the aspects of A0# card! I came know about the types, process of issuin A0# card to customers, fillin forms, how to activate A0# card, char es of issuin and usin A0# card! 0hen I spent my time in lockers +epart0ent! I took all the information about the terms and conditions of allottin and operatin a locker, types of locker like small, medium and lar e, char es of usin to know about the process of operatin locker with the help of two keys! 4 key in the hand of bank officer (anticlockwise* 7nd key in the hand of customer (clockwise* &ustomer is allowed to operate the locker in full privacy! )nly the customer himself or other person authori2ed by him can operate the locker! After that bank officer has to take the si nature of the customers on attendance re ister maintained for this purpose! lockers, key deposit (refundable*, fillin locker by the customer, how to open the application forms, insurance amount for specific si2e of locker and etc! I also came

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62

Habib Bank Limited

0hen my duty was in Accounts department! I came to know the procedure for fillin the form to open an account, different types of stamps re.uired and about si nature of the staff! 'ocuments re.uired to be attached with the form! &opy of &NI& -tility bill 1rovisional receipt $M& ($now Mour &ustomer* And how to post an account on system after fillin the form! 0hen I came to know about ,avin accounts and different types of accounts in savin cate ory and terms and conditions of each type! 4! HBL ;alue Account 7! 1L,G,avin s Account 6! Remittance #unafa 1lus ,avin s Account 8! 'aily #unafa Account 9! 'aily 1ro ressive Account

0hen current accounts =! HBL Business ;alue Account >! &urrent Account ?! Basic Bankin Account (BBA* 0erm accounts :! HBL Advanta e Account 43! Investment plus 'eposit /& accounts 44! /&G,B ,avin s Account offered in 6 currencies, -,' (-, dollar*, 5-R (5uros* and @B1 (-$ pound* 47! HM//' (Hi h Mield /orei n &urrency /i"ed 'eposit* Available in 4 month, 7 month, 6 month, = month and 47 #onth in -,', 5-R and @B1 Assign0ents 11#'urin my work in accounts department #r! $halid 'o ar (mana er operation* assi ned me the duty of checkin the files of previously opened accounts for any type of discrepancies like utility bill or service certificate of the account holder is attached or not and checkin stamps and si nature of the staff etc! It was because

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63

Habib Bank Limited

an audit of these files in the comin month is scheduled! Almost above 93C of the application forms were havin discrepancies of different types! 0his turns out to be very informative e"perience for me! 'eposits are considered as lifeblood for any bank to survive! I came to know about the procedure and different types of deposits that customers can maintain in HBL, return rates that a customer can et and other terms and conditions of each type of account! As far as checkin the old files are concern it seems borin but from my point of view it was very informative! 0he learnin I ot while doin this Aob would never be easy to et otherwise! 1(# #r! $halid 'o ar assi ned us another task! ,tate bank of 1akistan has instructed all the banks in 1akistan to make sure availability of computeri2ed national identity cards of all the account holders! <e were iven a list of accounts from which &NI& was re.uired and preprinted letters! )ur task was to take the information from accounts like Name, Address and Account type by enterin the account number in the system and then printin that information on one corner of the letters! 0his also turns out to be a very informative e"perience for me! I learn and et a chance to work on computer software that the HBL is usin , how to view account information, checkin balances and updatin the information! 1"# 'ue to my familiarity with their computer software I was iven another task of updatin account information on their computer system )IS6S. Like account holders name, address, &NI& number etc! In case of any problem I was consultin it with #r! Asif I.bal! 0his task ave me more chances to learn about the computer system of HBL and also I can proudly say that I have my own share of workin in computeri2in HBLs record!

Ho@ t.is e:perience @ill i0pact 0y career

<orkin for 3> weeks in HBL %innah &howk branch as an intern was very informative e"perience for me! 'urin the time I learnt many new thin s which are surely oin to help me in my professional career! It was a ood e"perience for me to observe and to be the part of practical workin of an or ani2ation like HBL! 'urin the internship I ot a chance to understand eneral consumers behavior and his needs and wants related to bankin services and products!

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Habib Bank Limited

2inancial /erformance an' ac.ievements of &#L in 3445

Financial performance
/inancial ,tatements Ratio analysis 0he financial results for the first .uarter of 733: /inancial hi hli hts 733?

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Habib Bank Limited

Achievements
HBL G B0he Best 5mer in #arket Bank in 1akistanB 733? HBL G B#ost innovative @lobal 0rade /inanceB award 733? G BBest bank In 1akistanB Award 733? HBL #ilestones G BBu22iest BrandsB Awards

H#+!+ B#"% L!*!teB#$#"ce &<eet

A& o" 31 /ece*+er 2008

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66

Habib Bank Limited

H#+!+ B#"% L!*!teProf!t = $o&& Accou"t

A& o" 31 /ece*+er 2008

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67

Habib Bank Limited

!atio Analysis of t.e &#L6

QAn inde" that relates two accountin numbers and is obtained by dividin one number by otherR Ratio Analysis is an important and a eGold techni.ue of financial analysis! It simplifies the comprehension of financial statements! Ratios tell the whole story of chan es in the financial condition of business! It provides data fro inter firm comparison! Ratios hi hli ht the factors associated with successful and unsuccessful firm! 0hey also reveal stron firms and weak firms, overG valued and under valued firms! It helps in 1lannin and forecastin ! Ratios can assist mana ement, in its basic functions of forecastin , plannin , coGordination, control and communication! Ratio analysis also makes possible comparison of the performance of different divisions of the firm! 0he ratios are helpful in decision about their efficiency of otherwise in the past and likely performance in future! Ratios also help in Investment decisions in the investors and lendin decisions in the case of bankers etc! /ollowin are the main types of ratios that I am oin to calculate in this report to compare and hi hli ht the financial performance of Habib bank in 733? with 733>!

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Habib Bank Limited

Return on 5.uity Ratio Return on Assets Loan to Assets ratio Net 1rofit Ratio Loan to 'eposit

'et-rn on &3-ity 'atio

Return on 5.uity Ratio

Net 1rofit after ta" V 433 )wner 5.uity Net 1rofit after ta" )wner 5.uity Return on e.uity

(CC>

(CC!

49,=48,373 >9,4?3,86= 73!>=

43,3?8,36> =6,76>,87: 49!:8

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Habib Bank Limited

Interpretation5 0he past two years data shows an improvement in the return on e.uity which is a positive si n! 0he Bank should have to continue its policies! By observin which is ood si n! the audited account I found that this improvement is due to increase in the Net profit

'et-rn on Assets 'atio

(CC> (CC!

Return on Assets
Net 1rofit after ta" V 433 0otal Assets Net 1rofit after ta" 0otal Assets Return on Assets

49,=48,373 >9>,:7?,6?: 7!3=

43,3?8,36> =:4,::4,974 4!89

Interpretation5 Return on assets ratio shows an improvin trend! 0his ratio shows that the both the Net profit and 0otal Assets has improved in 733? than 733>! But net profit has increased more rapidly!

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Habib Bank Limited

$oan to Assets ratio

(CC> (CC!

Loan to Assets ratio

Loans Assets Advances Assets 89=,699,93> >9>,:7?,6?: =3!74 6?7,4>7,>68 =:4,::4,974 99!77

Loan to Assets ratio

Interpretation5 Loan to Asset Ratio is showin increasin trend in 733?! 0his is because advances are increasin more rapidly than assets of the bank!

Net Profit 'atio

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Habib Bank Limited

Interpretation5 Net profit Ratio is ivin upward trend! 0his trend is observed due to increase in Net profit but on the other hand the e"penses decreases which shows an efficient mana ement!

$oan to Deposit 'atio

(CC> (CC! (CC!

Loan to 'eposit Net 1rofit Ratio

LoansJ'epositsI433 Net profit J Interest Income V 433 Advances Net profit 'eposits Interest Income Net profit Loan toratio deposit

(CC>

89=,699,93> 49,=48,373 9:>,3:3,989 86,:>3,??8

6?7,4>7,>68 43,3?8,36> 964,7:?,47> 66,793,:6> 63!67 >4!:6

ratio

69!93 >=!86

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Habib Bank Limited

Interpretation5 Loans to deposit ratio show an increasin trend in 733? as compare to 733>! 0his trend is observed as the advances and deposits both are increasin but advances are increasin more rapidly than deposits!

T.e financial res-lts for t.e first 3-arter of (CC are

1's. In CCC# 1rofit after ta" ,hare of profit attributable to minority interest 1rofit attributable to shareholders 5arnin s per share rupees (Basic F 'iluted* 6,6?8,=76 89,3=6 6,66:,9=3 8!83

3445
In the followin

2inancial .i .li .ts

dia ram HBLs balance sheets and income statements items for

733? are compared with the items of 733> and percenta e rowth is also calculated!

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Habib Bank Limited

Ac.ievements
HB$ / GT.e Best &0erging )arket Bank in PakistanG

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Habib Bank Limited

HBL has been selected as X0he Best 5mer in #arket Bank in 1akistan by @lobal /inance #a a2ine! @lobal /inance ma a2ine has named the QBest 5mer in #arket Banks in AsiaR in an e"clusive survey to be published in the #ay 733: issue! @lobal /inance editorsY with input from industry analysts, corporate e"ecutives and bankin /inance reports on the international finance sector, coverin consultantsY selected the best emer in market bank in the re ion and in 73 countries! @lobal topics such as corporate finance, Aoint ventures and #FA, country profiles, capital markets, investor relations, currencies, bankin , risk mana ement, custody, direct investment, and money mana ement! 0he ma a2ine also holds several awards ceremonies throu hout the year to reco ni2e the winnin financial institutions and companies!

(CC> HB$ / G)ost inno7ati7e *lobal Tra+e 4inanceG a@ar+

HBL received the B#ost Innovative @0/1 (@lobal 0rade /inance 1ro ram*B award! 0he award was received at the International /inance &orporation Annual 0rade &onference in 1aris where 47= issuin and 489 confirmin multinational banks that were present! #r! 0ari. #ateen G Head /inancial Institutions 'ivision, ave a presentation showcasin the success of HBL in the lobal trade financin business! 0he award was received by #r! #ateen and #r! Anwar Laidi K Head )perations! 0his reco nition has raised our profile amon a lar e forum of international banks and paved way for I/& to increase our facility from -,' >9 million to -,' 433 million which has helped us in creatin li.uidity in our international network

(CC> / GBest bank In PakistanG A@ar+

In )ctober 733?, HBL received the XBest Bank in 1akistan award in reco nition for its continuous efforts in providin world class products and services to customers! Award was received by #r! ,ultan Ali Allana G &hairman! 0he ceremony in <ashin ton was also attended by #r! Lakir #ehmood G 1resident F &5), #r!

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75

Habib Bank Limited

Nauman 'ar G Head International Bankin and #r! 0ari. #ateen G Head /inancial Institutions 'ivision!

Mr. S.ltan Ali Allana 7right8 recei9ing the a*ar'

(CC> HB$ )ilestones / GB-BBiest Bran+sG A@ar+s

Revelation Inc, a 1akistan based brand 'evelopment &ompany, carried out a poll amon marketin and advertisin representatives, as well as a panel of Aud es to pick the most active brand in 1akistan! HBL was received the QBu22iest BrandR award in the Bankin and /inancial Institutions &ate ory! HBL was competin with stron consumer brands like )lpers and &oca &ola yet accomplished third position amon top five brands in the entire advertisin industry! 0he award was received by #r! Aly #ustansir G Head #arketin and Brand #ana ement! 0he first two places were awarded to telco brands, 0elenor and #obilink!

!ecommen'ations
As we seen from the previous analysis of the financial statements I have reali2ed that that Habib Bank is performin very well since its inception! It is .uite difficult to ive su estion to improve the bankin conditions Habib Bank Limited! As we know

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76 estions for HBL+

Habib Bank Limited

that nothin is perfect, there is always a room for improvement, so I will recommend followin su

5mployees 0rainin

pro rammes must be introduced on continuous with the latest

basis so that 5mployees have understandin developments especially with the customers!

Bank should introduced incentive plans for employees on re ular basis so that if employees may work whole heartedly for the welfare of their or ani2ation! <hile ivin incentives .ualification, work, e"perience, hard work and such other factors must be considered! #ismana ement of resources must be avoided as much as possible as it decreases profit but also discoura e hard worker and honest employees! /resh raduates must be recruited! As the combination of 5"perienced and fresh can produce better results and it will improve the efficiency of mana ement! Habib Bank is oin towards mobile bankin but the problem is that a common client has no idea of its usa e due to lack of marketin ! I think that a proper marketin pro ramme must be launched for clients awareness! Banks different schemes must be conveyed to the tar eted customers so that to have a reasonable share in market! Bank should help the society by providin 0alented ,tudents! )nline Bankin should be introduced in all the branches 2 0o motivate the employees their remuneration J salaries should be made at par with top tier Banks! A ressive publicity campai n must be introduced throu h press and interest free loans to the

5lectronic media for new products and scheme by initiatin vi orous marketin policy! Bank should adopt such an induction plan that when a customer opens his account with the bank he should be supplied with a booklet which

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77 enables him to know the procedure of filin conduct of the account of that customer!

Habib Bank Limited

the che.ues, payGinGslip the

etc! It will save a lot of time of the bank staff afterward durin

0he attitude of the bankers with all of their customers is not the sameD they pay more attention and ood service to some of the customers and ne lect a maAor portion of them! ,ome of the customers approach to the bank officials and et their work done before othersD it is not a ood practice! All the customers should be treated e.ually! HBL should increase its communication with customers about the terms and conditions of its different products and services!

Glossary
CIIT5 CO)SATS instit-te of infor0ation tec.nology

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78 D.D5 AAC5 O.B5 O.B.C P.$.S5 Dr5 Cr5 C.A5 4.$5 $.*5 D.45 $.C5 '.45 4.A.P.C5 HB$ AB$ )CB NBP 2B$ NI4T De0an+ Draft acco-nt Ot.er Bank O-t@ar+ Bills Collection Profit an+ $oss Acco-nt +ebit Cre+it C-rrent Acco-nt 4le:i loan $etter of *-arantee De0an+ 4inance $etter of Cre+it '-nning 4inance 4inance against Packing Cre+it Habib Bank $i0ite+ Allie+ Bank $i0ite+ )-sli0 Co00ercial Bank National Bank $i0ite+ 2nite+ Bank $i0ite+

Habib Bank Limited

National Instit-tional 4acilitation

Tec.nologies 1p7t# $TD.

#iblio ra/.y
#aterial on these books, articles and websites has helped me a lot in preparation this report

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79

Habib Bank Limited

Books
HBL &orporate 1rofile 733? HBL Annual Reports 733? and 733: first Suarter

Articles F Doc-0ents
BAN$IN@ ,5&0)R R5/)R#, IN 1A$I,0AN+ http+JJwww!ishrathusain!iba!edu!pkJspeachesJBAN$IN@E,5&0)RER5/)R#,!pdf www!encyclopedia!comJdocJ4@4G=4?=86==!html

,ebsites
www!hbl!com www!habibbankltd!com www!hblasset!com www!investopedia!comJarticlesJ3>Jbankin !asp wiki!answers!comJSJ5volutionEofEbankin

"n'ex

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Habib Bank Limited

Anne: A5 IN05RN0,HI1 &5R0I/I&A05 Anne: B5 IN'I&A0I;5 RA05, Anne: C5 A&&)-N0 )15NIN@ /)R# Anne: D5 R5#I00AN&5, A11LI&A0I)N Anne: &5 '5BI0 &AR' A11LI&A0I)N /)R# Anne: 45 '51),I0 ,LI1