FINAL REPORT

ON
Habib Bank Limited (HBL)
SUBMITTED TO:

Prof. Javed Akhtar

SUBMITTED BY:

Shehroz Ayaz (05)

Syed Fahad (20)
Umair Ejaz (16)

PROGRAM:

MBA (3rd Semester)

COURSE:

Management Information System

UNIVERSITY OF CENTRAL PUNJAB

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Dedications
We dedicate this report to our parents and friends in recognition of their worth
and to our teachers who are guiding force for us and it is their effort and hard
work that showed us the path of success and prosperity which would be there
for us for the rest of our life.

Our thanks to all those who have generously contributed their theoretical
knowledge to this report including our teachers. Without their understanding
and support, completion of this work would not have been possible.

ACKNOWLEDGEMENT
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In the name of Allah the praiseworthy, the passionate whose blessings

made it possible for us to complete this complex and painful task. It is a matter
of great enthusiasm and pleasure for us to complete a report in its real sequence.
It is all because of Almighty Allahs great guidance that made us so able. We
are cordially thankful to our respected Teacher Mr. Javaid Akhtar who
provided us an opportunity to prepare this Project report and
whoseb e n e v o l e n t g u i d a n c e i n d i s c o u r s e a n d c o n s t a n t e n c o u r a g e m
e n t h e l p e d u s t o complete this project.

CONTENTS
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Topics

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History of HBL
Introduction to HBL
Vision & Mission
Core Values
Organizational Chart of HBL
Functions in HBL
Information Systems & its Types
MIS & its Types
Management Information System at HBL
Transaction Processing System of HBL
Management Reporting System of HBL
Decision Support System of HBL
Office Information System of HBL
EXECUTIVE INFORMATION SYSTEM
OFFICE AUTOMATION SYSTEM
Working of MIS in different departments at HBL
Specifications of MIS at HBL
Hardware used by HBL
Software used by HBL
Database Management Systems
File Based Management Systems
Networking
Online Presence
Security & Backups
INFORMATION RESOURCE MANAGEMENT
Data Processing-Information Cycle
Recommendations
Future Plans
Conclusion
References

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HISTORY
HBL established operations in Pakistan in 1947 and moved its head office to
Karachi.
Our first international branch was established in Colombo, Sri Lanka in 1951
and Habib Bank Plaza was built in 1972 to commemorate the banks 25th
Anniversary.
With a domestic market share of over 40%, HBL was nationalized in 1974 and
it continued to dominate the commercial banking sector with a major market
share in inward foreign remittances (55%) and loans to small industries, traders
and farmers.
International operations were expanded to include the USA, Singapore, Oman,
Belgium, Seychelles and Maldives and the Netherlands.
On December 29, 2003 Pakistan's Privatization Commission announced that the
Government of Pakistan had formally granted the Aga Khan Fund for Economic
Development (AKFED) rights to 51% of the shareholding in HBL, against an
investment of PKR 22.409 billion (USD 389 million).
On February 26, 2004, management control was handed over to AKFED.
The Board of Directors was reconstituted to have four AKFED nominees,
including the Chairman and the President/CEO and three Government of
Pakistan nominees.

INTRODUCTION
Habib Bank Limited (HBL) commenced business in the year that Pakistan
gained independence and based the head office in the then capital city that was
Karachi.
HBL has international operations in Sri Lanka.
The Habib Bank Plaza, a historical monument for the people of Pakistan was
constructed in the early seventies after the separation from East Pakistan (now
Bangladesh) to mark the silver jubilee of the bank.
Due to the nationalization policies of the government in the seventies, HBL was
nationalized like MCB in the seventies.
HBL progressed in this period and had a huge market share of over fifty five
percent in remittances coming into the country.
It also makes personal loans and commercial loans to small and large
industrialists and also to the agriculture sector which is the largest business
sector in Pakistan.
HBL also expanded its overseas business to include the United States of
America and Asian countries like Oman and Maldives and Singapore and
European countries including Belgium and Holland.
Currently, HBL has the biggest distribution network in Pakistan with more than
fourteen hundred branches operating in the major cities like Karachi, Lahore,
and Islamabad, Rawalpindi and Peshawar and around two hundred other
locations which include both cities and small villages.
Today, HBL is present in around 24 countries in the world, including USA, the
UK and many Middle Eastern and European and African countries (HBL 2009).

VISION & MISSION

HBL Vision statement:
Challenging and changing the way you bank.

HBL Mission statement:

HBL banks team, of committed professionals is dedicated to maintaining longterm customer relationships through outstanding service and convenience.

CORE VALUES
Core Values of HBL are as follows:

Trust.
Focus on Customer.
Innovation.
Teamwork.
Achievement.
Social Responsibility.

Trust
We are the trustees of public funds and serve with integrity &
commitment. Ethical behavior is of critical importance to us.
We adopt full compliance with internal and external policies and
procedures, operating within the legal framework.
Focus on Customer
We continuously seek to exceed our customers expectations, forging and
maintaining long term relationships.
Innovation
We strive to be the market leaders in innovative products and services
offering customized financial solutions with flawless execution.
Teamwork
The diversity of our people is our strength.
We inspire and challenge each other working together to achieve
synergy.

Achievement
Our people are our most valuable asset.
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 We are committed to a result oriented culture.

Our goals are clear and merit is the only criterion for reward.
Social Responsibility
As responsible citizens we contribute to the social welfare of the
community we live in.

Organizational Chart

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Functions in HBL

HBL Bank offers different services to its customers:

Commercial banking.
Corporate banking.
Investment banking.
Retail banking.
Treasury banking.
Islamic banking.

Commercial banking is a banking in which HBL bank accepts deposits

from investors and lending loans to borrowers.
Corporate banking focusing on giving the facility of cash management
and payroll services to the customers.
Investment banking in which lends their loans and the other ways in
which they can invest their deposits to get interest e.g., in stock exchange.
Retail banking is the most important function of HBL bank, because in
this aspect the HBL provides the least cost deposit to open a new account.
Treasury banking in HBL is used basically to manage the capital risk
and to prepare balance sheet statements in order to manage assets and
liabilities of company.
Islamic banking services are also given in HBL bank at customers
demand.

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Information System & its Types

Information System:
An information system (IS) is a system composed of people and computers
that processes or interprets information.

Classification of Information System:

In any given organization information system can be classified based on the
usage of the information.
Therefore, an information system in an organization can be divided into
Operations support system.
Management support system.

Operations support system:

In an organization, data input is done by the end user which is processed to
generate information products i.e. reports, which are utilized by internal and or
external users. Such a system is called operation support system.
The purpose of the operation support system is to facilitate business transaction,
control production, support internal as well as external communication and
update organization central database.
The operation support system is further divided into:
Transaction-processing system.
Processing control system.
Enterprise collaboration system.
Transaction Processing System (TPS)
In manufacturing organization, there are several types of transaction across
department.
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Typical organizational departments are Sales, Account, Finance, Plant,

Engineering, Human Resource and Marketing. Across which following
transaction may occur sales order, sales return, cash receipts, credit sales; credit
slips, material accounting, inventory management, depreciation accounting, etc.
These transactions can be categorized into batch transaction processing, single
transaction processing and real time transaction processing.
Process Control System
In a manufacturing organization, certain decisions are made by a computer
system without any manual intervention.
In this type of system, critical information is fed to the system on a real-time
basis thereby enabling process control. This kind of systems is referred as
process control systems.
Enterprise Collaboration System
In recent times, there is more stress on team effort or collaboration across
different functional teams.
A system which enables collaborative effort by improving communication and
sharing of data is referred to as an enterprise collaboration system.

Management Support System:

Managers require precise information in a specific format to undertake an
organizational decision.
A system which facilitates an efficient decision making process for managers is
called management support system.
Management support systems are essentially categorized as:
Management information system.
Decision support system.
Expert system.

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 Accounting information system.

Management information system provides information to manager facilitating
the routine decision-making process.
Decision support system provides information to manager facilitating specific
issue related solution.

Further Classification:
An information system can be categorized based upon activity into:
Strategic planning system.
Tactical information system.
Operational information system.

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MIS & its Types

Management information systems are those systems that allow managers to
make decisions for the successful operation of businesses.
Management information systems consist of computer resources, people, and
procedures used in the modern business enterprise.
The term MIS stands for management information systems.
MIS also refers to the organization that develops and maintains most or all of
the computer systems in the enterprise so that managers can make decisions.
The goal of the MIS organization is to deliver information systems to the
various levels of corporate managers.
MIS professionals create and support the computer system throughout the
company.
Trained and educated to work with corporate computer systems, these
professionals are responsible in some way for nearly all of the computers, from
the largest mainframe to the desktop and portable PCs.
Management information systems can be used as a support to managers to
provide a competitive advantage.
The system must support the goals of the organization. Most organizations are
structured along functional lines, and the typical systems are identified as
follows:
Accounting management information systems
All accounting reports are shared by all levels of accounting
managers.
Financial management information systems
The financial management information system provides financial
information to all financial managers within an organization
including the chief financial officer.
The chief financial officer analyzes historical and current financial
activity, projects future financial needs, and monitors and controls

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the use of funds over time using the information developed by the
MIS department.
Manufacturing management information systems
More than any functional area, operations have been impacted by
great advances in technology.
As a result, manufacturing operations have changed.
For instance, inventories are provided just in time so that great
amounts of money are not spent for warehousing huge inventories.
In some instances, raw materials are even processed on railroad
cars waiting to be sent directly to the factory.
Thus there is no need for warehousing.
Marketing management information systems
A marketing management information system supports managerial
activity in the area of product development, distribution, pricing
decisions, promotional effectiveness, and sales forecasting.
More than any other functional area, marketing systems relies on
external sources of data.
Human resources management information systems
Human resources management information systems are concerned
with activities related to workers, managers, and other individuals
employed by the organization.
Because the personnel function relates to all other areas in
business, the human resources management information system
plays a valuable role in ensuring organizational success.
Activities performed by the human resources management
information systems include, work-force analysis and planning,
hiring, training, and job assignments.

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Management Information System at HBL

Management Information System is a system that provides people with either
data or information related to an organization's operations.
MIS support the activities of employees, owners, customers and other key
people in the organization's environment - either by efficiently processing data
to assist with the than section work load or by effectively supplying information
to authorized people in a timely manner.
A management information system (MIS) is the collection of system, both
computerized and manual, that provides information about ongoing activities to
an organization's decision makers.
The management information system of Habib Bank Limited has following
major divisions:

Transaction Processing System.

Management Reporting System.
Decision Support System.
Office Information System.
Executive Information System.
Office Automation System.

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TRANSACTION PROCESSION SYSTEM OF

HABIB BANK LIMITED
The Transaction Processing System (TPS) supports the da
i l y b u s i n e s s transactions for example in the accounting department where
the double entry system is used for recording the daily transactions it will
record all the entries that have been credited or debited during the day
and prepare the full report as well as inter relate these tasks and other
into an overall accounting system.
This type of system keeps the organization running by automation the process
of the large amount of paper work that must be handled daily.
Unlike the other systems the Transaction Processing System (TPS) of
Habib Bank links together all of the branches of the country in order to have
one database so that the Customer Information can be accessed through all the
branches in the country.
Basically the TPS has more dealings with the accounting basically TPS deals
with the accounting department of an organization.
In HBL it is used to record withdraws and deposits of customers.
Some of its functions are:
Records the transactions
Records the debit & credit
Tells the balance of customer
Gives the data about the custom TPS makes day to day reports e.g. it manages
the double entry system.
For accounting department two types of reports are generated in it.
Transaction processing system supports the processing of Habib Bank Limited
by automating the process of voluminous amounts of paperwork that must be
handled daily.

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These systems include accurate recording of daily Transactions, controlling the

procedure of issuance e.g. issuance of pay cheques invoices, customer
statements, payment remainders, tuition bills and employee schedules etc.
Transaction Processing Functions
There are three steps of processing a transaction.
1) Book Keeping
First of all accurate record of transaction is recorded e.g. recording the deposits
or withdrawals of account holders. This recording of transaction is called Book
Keeping involving applications of financial accounting.
2) Issuance
It refers to the production of pay cheques, invoices, periodic statements as
monthly telephone bills, credit card bills and payment remainders etc.
3) Control Reporting
Reports that are produced as a byproduct of transaction processing operation
and that also serves operation control purposes are called control reports, as pay
cheques are of Habib Bank are produced in batches, likewise the payroll edit
report is produced to show the pay scheme of employees.

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MANAGEMENT REPORTING SYSTEM

A management reporting system (MRS) is an informatio0n system that
provides p r e d e f i n e d t y p e s o f i n f o r ma t i o n t o m a n a g e me n t f o r r el a t
i v e l y s t r u c t u r e d t y p e s o f decisions.
As opposed to focusing purely on data and the efficient processing of
data(which characterize transaction processing systems), management
reporting systems focus on Information and, occasionally, on effectiveness.
It generates a summarized report for reporting business updates to management
at higher level and for their review. It generates report having:

Name of customer
His address
Limit of loan which bank can give
Approval authority of loan
Date of giving loan
The expiry of deadline
The securities that the bank held against the loan

Management Reporting System is an information system that provides

predefined types of information to management.
At Habib Bank Management Reporting System is used not only in management
planning but also in managing the control system.
Properties of Management Reporting System
1) Support
Management Reporting System supports structured and semi-structured
decision, primarily at the middle-and lower-management levels.
2) Provision of Information
Management Reporting System Provides fixed types of information, in an
established format; the formation requirements of users are normally known and
stable.

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3) Nature of Management Reports

Often implemented with voluminous, hardcopy reports, requiring each user to
search specifically for key' information. Frequently require a formal request to
be submitted; formal systems development may be required to approve the
request.
4) Data
It has usually consisted of internal operational data, rather than data about the
external environment. It concerned with data about the past than data relating to
the future.

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DECISION SUPPORT SYSTEM

A d e c i s i o n s u p p o r t sy s t e m ( D S S ) pr o v i d e s t o o l s t h a t e n a b l e m a
n a g e r s t o develop information in the manner that best suits the decisions they
are currently trying to make.
Unlike the MRS, which delivers specific types of information in a preplanedf o r ma t , t h e D S S p r o v i d e s t h e m a n a g e r w i t h t h e c o m p u t i n g
a n d c o m mu n i c a t i o n s capabilities to develop his or her own decision models,
databases, and report formats.
Decision support systems often also focus on such areas as flexibility
in meeting a variety of continually changing needs.
After getting the data from TPS and MIS manager makes his decisions on its
basis.
The manager can also forecast a future trend on the basis of DSS.
Present decisions are based on past data that is available in the system.
It is a system that provides tools to managers to assist them in solving semistructured and unstructured problems in their own somewhat personalized way.
At Habib Bank decisions are only taken by Board of Directors otherwise usually
predefined decisions are there for managers to follow.
Properties of Decision Support System of Habib Bank
1) Support
Decision Support System supports semi-structured or unstructured decisionmaking.
2) Flexibility
The Decision Support System of Habib Bank is flexible enough to respond to
the changing needs of decisions makers.
3) Application Way
Decision support system of Habib Bank is easy to use.
4) Fastness

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Decision Support System is fast in responding with a high degree of user

control and interaction.
Types of Decisions Taken
1) Unstructured Decisions
This is the decision for which information provided by computer or men is not
complete but is a small portion of the total knowledge required to make a
decision.
2) Semi-structured Decisions
The decision made under a condition in which the information about problem to
be solved is not complete is called semi-structured decision.

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OFFICE INFORMATION SYSTEM OF HABIB

BANK
The combination of new technologies as hardware, software, facsimiles e-mails
and the people availing their services makes the office information system.
Components of Office Information System of Habib Bank
There are 3 major components of Office Information System,
1) Document Management System,
2) Message Handling System
3) Office Support System.
Document Management System of Habib Bank
Document Management System of Habib Bank is partly manual and partly
computerized. Further categorized:
1) Reprographic System
In each branch of Habib Bank Reprographic machines are there for making
copies of required documents.
2) Word Processing System
At Habib Bank the office system technology which is used is word processing
involving hard ware and software tools which allows computer system to
operate.
Message Handling System of Habib Bank
It is one of major applications of Office Information System. At Habib Bank the
message handling system is of following.
1) Facsimiles
Fax machines are there to receive and send faxes in other branches of Habib
Bank.
2) Electronic Mail
Electronic mail is used to receive and send messages to other branches.

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Office Support System

Many applications collectively help in working of groups, which are known as
Office Support System.
In HBL it is Group Ware.
Habib Bank provides group ware in following ways.
1. Word processing services.
2. Using fax mails.
3. Availability to on- line Data.

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EXECUTIVE INFORMATION SYSTEM

An executive information system (EIS) - which is sometimes referred
to as an executive support system (ESS) - is a DSS that is designed to meet the
special needs of top-level managers.
Some people use the terms EIS and ESS interchangeably, but others do
not.
Any distinction between the two usually is because executive support
systems are likely to incorporate additional capabilities such as electronic mail.
Because executives deal primarily with data about the external environment and
data that come from informal sources, they are usually less reliant in direct
contact with information technology than other types of managers.
When information from their companys computers is needed, many chief
executive officers make their subordinates retrieve that information.
Because executive information needs are more ambiguous that those of
other levels of Management, computers have historically been less useful to
executives.
Many executives have little hands on experience with computers and
dont fully appreciate how information technology can im
p r o v e t h e i r p e r s o n a l productivity and decision-making skills.
ESS is for executives e.g., Retail General Manager (RGM) b/c executives
are non-technical people so a very user friendly system is made for them to
make their decision making process easy and feasibility, for
this purpose reports are generated to give easy access to information.

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OFFICE AUTOMATION SYSTEM

OAS is the use of computer systems to execute a variety of office
operations, s u c h a s word processing , accounting, and e-mail.
Office automation almost always implies a network of computers with a
variety of available programs.
Office Automation has traditionally referred to a wide variety of
computer- based technologies that make office workers more
productive.
The diverse set of
OAt o o l s t h a t e n h a n c e o f f i c e p r o d u c t i v i t y , e f f i c i e n c y a n d e
f f e c t i v e n e s s a r e o f t e n collectively called information systems.
Many office systems can also be classified as decision support systems
or DSS tools (such as spreadsheets), which can make office workers
more productive and also help managers make better decisions.
The blurry line between decision support systems and Office Automation
System should be expected because most decisions makers work in some
type of office environment.
Another example of ambiguity, a database management system that
manages data for a firm might also offer some decision support.
Some of the Office Automation Systems used in Habib Bank are:

CPUs
Monitors
Fax
Scanners
Printers
Keyboards
Mouse

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Working of MIS in different Departments

WORKING OF MIS IN DIFFERENT DEPARTMENTS OF
HABIB BANKLIMITED

1) DEPOSIT DEPARTMENT
Almost all the activities mentioned above are performed through
computer
The computer maintains all records of each and every client
Vouchers have been prepared and send to the MIS department for daily
transactions and making changes in customer's accounts.
Activity of account opening and deposit department are the followings:
Opening new accounts.
Maintain of deposits of the account holders.
Processing can stop payment instructions.
To give fresh cheque books.
To make amendments in the existing accounts.
Closing the accounts of accounts holders (if required).
2) CASH DEALING DEPARTMENT
The major functions of cash dealing departments are:
Cash receipts.
To cash cheques.
All the regarding date, account number, tile of account, balance of
account holder and the signature of customer have been verified through
computer.
3) REMITTANCE DEPARTMENT
The major functions performed by remittance department are:
Pay order.
Demand like drafts on need.
Post transport.
Telegraphic transfer.
Fax and telephone are the major source of performing such activities.

4) IMPORT DEPARTMENT
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 Three major functions performed by the import department:

L/C opening.
Lodgment of papers and documents.
Retirement of papers and documents.
Import department is considered to be one of the most important
departments of the bank. It handles the import licensing and imports of
merchandise.
Imports can be separated into two categories:
Industrial Imports.
Commercial and industrial Imports.
Export Promotion Bureau makes registration of imports, Document
required for sole proprietor partnership concern and limited concerns are
different.
5) EXPORT DEPARTMENT
Export is a major source of earning foreign exchange.
Every country wants to increase its exports because the foreign exchange
earned through exports can help in meeting the other needs of the
countries.
The computer keeps the records of each and every dealing which has
been made by the customer for import export purposes.
The records concerning his past and present performance and balance of
accounts helps to make further decisions whether to give him loan or not.
6) PERSONNEL DEPARTMENT
Personal department uses computer for smooth functioning of work.
The main functions performed by Personnel Department of Habib Bank
are:
Selection and recruitment.
Training and growth.
Job explanation and estimation.
Periodic review
Communication

7) MARKETING DEPARTMENT
Consumer satisfaction is the first and for most priority for the bank.
The marketing management makes policies for the better services of
satisfaction of consumer.
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 The process includes:

Finding out consumer wants and needs through marketing research.
Finding possibilities and then development of those wants and
needs.
Establishing meaningful relations with customers.
Improving of product development for customers.
It is also the function of the organization to keep in constant contact with
the consumer, read their needs, developed the product that can fulfill their
needs and build the aim that express organizational purpose.
Bankers also try to locate their past customers for offering more facilities
to them.
The computer provides every past and present updated account of each
customer.

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Specifications of the Management Information

System in HBL

Hardware

HP Blade Server

Software

Oracle E-Business Suite R12

Operating System

Linux

Input

Financial Data

Output

Financial Statements

Processing

Batch Processing

Storage

Primary, secondary

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Hardware at HBL
The part that cannot not be seen or touched is called hardware.
As the name represents hard means hard, so physical parts are called hardware.
The term hardware refers to machinery.
This category includes the computer itself, which is often referred to as the
central processing unit (CPU), and all of its support equipment.
This hardware includes:

Database Server.
Internet Server.
LCD Monitors.
Laptops.
Dot Matrix Printers.
Laser Printers.
Scanners.
Tape Drives.
Computers.
Generators.

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Software
SOFTWARE USED BY HABIB BANK
Set of instructions given to the computer to solve a problem
The term software refers to computer programs and the manuals that
support them.
Computer programs are machine-readable instructions that direct the
circuitry within

1) OPERATING SYSTEM SOFTWARE:

UNIX is being used as the main operating system in Habib Bank according to
t h e m i t i s m o r e p o w e r f u l t h a n Win d o w s .

2) MULTI-USER ONLINE BANKING (MOB)

The main system used by the bank is called Multi-user Online Banking (MOB).
This is the main system through which all of the branches of Habib Bank are
linked together.
This system has many sub systems of which the foremost and important is
Management information system.
Multi-user Online Banking (MOB) works in such aw a y
that for example if customer opens an account in Ha
b i b B a n k o n c e t h a t information is fed into the system then that
information will become available to all the braches of Habib Bank located in
Pakistan.
For instance if the account has been opened in Islamabad the customer can
deposit and withdraw money from wherever in Pakistan from an on-line branch,
this is mainly possible through Multi-user Online Banking(MOB).
Multiuser Online Banking (MOB) is a customer made soft
w a r e a n d t h e computer language that has been used to develop
i s C o m m o n B u s i n e s s O r i e n t e d Language (COBOL).
The software of MOB has been kept different from same type of software so as
to prevent unauthorized entry.
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Habib Bank used Kindle Banking System until 2001 in their Retail Banking
sector.

3) Servers:
MAIN SERVER:

THIN CLIENT(centralized)

Internet Server:

DL320G5 (Core 2Duo), 4GBRam,

Raid 5 SAS 145GB HD x 3

Database Server:

HP DL380G5 (Dual Core), 4GB Ram,

Raid 5 SAS 145GB HD x 3

Application Server:

DELL (Dual Core), 4GB Ram, Raid 5

SAS 145GB HD x 3

4) SUPPORTING SOFTWARES:
HBL uses following supporting software through them are performing their
work daily and that are:

MS WORD
MS EXCEL
MS POWER POINT
MS ACCESS

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DATA BASE MANAGEMENT

Database administrators:
Database administrators are responsible for ensuring
t h a t u s e r s a n d programmers have access to the data that they need
in order to make decisions or run applications and for integrity and security
of the data in the database.

DATABASE MANAGEMENT SYSTEM:

Database management system is a collection of software that has been designed
to provide a systematic and flexible approach to organizing and access
to data that could possibly exist as separate files in database management all
of the Information is p u t i n t o a c e n t r a l d a t a b a s e a n d o n l y o n e
p r o gr a m or f i l e e n t r y i s r e q u i r e d .
W h e n a c u s t o me r m a k e s a n e n q u i r y a l l t h e c h e c k i n g , s a v i n g s
a n d l o a n d a t a a r e i n s t a n t l y available.
DBMS has not yet been fully implemented in Habib Bank and will be
used when web-access is made.
It is used for references only and soft copies are made for example a
credit database may include:

Name
Location
Approval authority of credit
Expiry/tenure
Securities
Sort of finance

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DATA MANAGEMENT:
Managerial decision making is likely to be more effective when
managers are able to quickly access the data they need on demand.
Most of the other databases data has been stored on computer-files and
databases.

These databases include:

Customer/client databases
Employee databases
Accounting databases
Credit databases

D a t a h a s b e e n p hy s i c a l l y s t o r e d o n a v ar i e t y o f m e d i a ,
i n c l u d i n g m a g n e t i c d i s k s , compact Discs and paper such as business
forms, memos and reports.
However it has been experienced that Computer based storage offers
several advantages over paper based storage, such as abilities to;
Store data compactly and efficiently
Quickly edit and modify stored data and make backup copies
In HABIB BANK all the data is directly stored in head office.
Information Technology department of HABIB BANK have a simple database
structure and use online processing/real time processing that transaction
S i mp l e a p p l i c a t i o n s o f t w a r e i s b e i n g u s i n g t o c o n t r o l , c r e a t e &
m a n a g e database.

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FILE BASED MANAGEMENT SYSTEM

File processing refers to an environment in which data is physically
organized into files (collection of related records).
The file processing environment is linked tithe specific application
programs that are being used in the organization.
These data and files are shared by many application programs.
Although file management is done manually as files on the computer cannot be
manually signed, but files are also created on computer for record and
references.

Files made on FMBS include:

Basic borrowers fact sheet (personal & professional record)

Their Securities (legal documents are manually kept0
Correspondent Files
Credit Files & Legal Files

WORKING:
H a b i b b a n k u s e s a f i l e pr o c e s s i n g s y s t e m w i t h d i ffe r e n t
c u s t o m e r f i l e s f o r example: checking, savings and loans. Often,
customers call the bank questions on s e v e r a l o f t h e i r a c c o u n t s .
S e r v i c e r e p r e s e n t a t i v e h a s t o g o t h r o u g h t h e f o l l o w i n g procedure:

Enter the checking-account-balance program

Get the required checking Information
Leave program
Enter saving-account-balance program
Get the required saving Information and leave program
Enter loan-account-balance program
Get the required loan Information and leave program

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Networking
Network Administrator
Telecommunications mangers and network managers/Network Adminis
tratorsare responsible for meeting the data communications needs of users in
the organization.
The increasing trend toward networking and distributed processing has
increased the i mp o r t a n c e o f t h e s e p o s i t i o n s .
A l l t h e w o r k s t a t i o n s w i t h i n t h e B a n k a r e c o n n e c t e d through
Local Area Network (LAN).The bank has over 101B r a n c h e s a l l o v e r
t h e country which have been linked through Microwave or Phone lines,
Satellites and most of the connections have been provided byPTCL.
Connectivity

Parallel. Microwave or Phone lines.

VIA-satellite.

Routers

Model RA 46-40 (Red line)

Switches

Model S3000-S3500

Power Cable

PABX for VOIP Fiber Cable

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ONLINE PRESENCE
HABIB BANK has online presence. We can get data from the web & also
discussed our problems through mail.
ONLINE FACILITIES:
Availability of DEBIT and CREDIT.
Cash withdrawal and deposit.
Transfer of funds.
There are mainly two persons involved in online transitions to make tem
successful.
The initiator (transaction creator) and the supervisor (supervising the
transaction process).

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SECURITY & BACKUPS

Security is a very important part of an information System, every
organization has to protect its vital data from unauthorized access for this
purpose Habib Bank has many security policies, these are:
A password is assigned to the employees and there is
l i m i t t o u s i n g t h e password for example an employee can issue up
to a specific amount.
In order to protect from any unauthorized access into the system,
the software that is being hacked from outside and is said to be fool
proof.
I n or d e r t o p r o t e c t t h e d a t a , b a c k u p s a r e u s e d , f o r b a c k u p
H a b i b B a n k u s e s floppies, every day backup is done and these
floppies are transported to the nearest branch to protect against
any potential hazard for example fire, arson, earthquake, theft etc.
After a week these backup floppies are transported back to the branch.
Whenever checque has been cashed so the bank checks the
s i g n a t u r e a n d amount of account holder.

BIO MATRIC DESKTOP:

Biometrics, where authorization of transactions is based
o n t h e s c a n n i n g o f a customer's fingerprint, iris, face, etc.
To maintain security HBL has a new technique of thumb impression
recognition. i.e., whenever customer wants to withdraw cash
fromA T M a t h u m b i m p r e s s i o n w i t h p e r s o n a l I D c a r d o f c u s
t o m e r i s n e e d e d t o b e identified if it is matched with the
d a t a b a s e m a i n t a i n e d by H B L i n K a r a c h i h e a d - office.
And this can be verified within seconds to facilitate their customers.
C h e q u e / C a s h A c c e p t a n c e , w h e r e t h e ATM a c c e p t s a n d r e c o g i n s e
c h e q u e s and/or currency without using envelopes
Bar code scanning

40

On
d e m a n d pr i n t i n g o f " i t e ms o f v a l u e " ( s u c h a s m o v i e t i c k e t s , Tra
v e l l e r s Cheques, etc.)
Dispensing additional media (such as phone cards)
Co-ordination of ATMs with mobile phones
Customer-specific advertising
Integration with non-banking equipment
C.C.TV:
Creating duplicate copies
Duplicate copies of all data are used and all original data are placed at the
website of HBL Ltd Pakistan. There is such distance between the original and
duplicate data.
Contingency Plans
Contingent plans are used to protect the hardware data. If any problem occurs in
the hardware system then there will be no difficulty for the data. It means
that protect data in the hardware system.
Storage Devices
Primary and Secondary storage devices are also used in the process to protect
and save the important information from loss or misuse. Often the master file is
stored on these devices while the users are provided access to the duplicate file.
Master file containing the permanent information is updated during processing
by transaction data.
The External Storage devices that are used in the Department are:

RAID.
DVDs.
CDs.
Hard Disk Moveable

41

Basis for Data Backup

Daily Basis.
Weekly Basis.
Monthly Basis.

42

INFORMATION RESOURCE MANAGEMENT

Information Resource Management (IRM):
It is a concept that recognizes information as a key resource that should (as
should any vital resource) be properly managed.
Other fields also think of their assets in this way.
MIS is perceived as an area that can generate opportunities or value for
the organization, not mainly as a source of problems.
Because MIS is seen as a playing a pivotal role in the future successes of IRMoriented firms including Banks.
The person in charge of the MIS area is often found at the middle managerial
level.
In this position the information system department
participates in strategic planning and other key decisions that are made by
the organizations top level managers.

MIS PERSONNEL
The MIS personnel can or cannot be non IT persons.
The Information System Manager is present in all department of the bank.
The Management Information System (MIS) Manager looks after the I.T Staff
and controls their operations, the planning and implementation of System
Development Life Cycle also is done by the Information S y s t e m
M a n a g e r.
Following are the job titles of people who interact directly with
managers and users and in general manage the whole information
system-although these are not the only personnel working the I.T Department,
many other job titles may be found within this area.

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Computers Operations Personnel:

These are the people responsible for the day to day operations of
Transaction Processing System s, management reporting system, and
all other shared multi-user computers.
Some of the job titles for the people in this category are the following:
Computer operations manager/System Manager:
The computer operations manager is in charge of the entire operations activity.
He has the responsibility of hiring and assigning work to
t h e o t h e r o p e r a t i o n s personnel, he is generally a supervisor, he
also plans the installation and removal of equipment with consent of
the concerned authorities, and generally all other tasks to ensure that
data get processed as efficiently as possible.
Computers operators:
They are in charge of running the equipment in the I.T Department.
Their job is to load disks and tapes, create backup files and ensure their safe
transport to the second branch of the Bank; they also initiate solutions to
equipment malfunctions and similar functions.
Data Entry Personnel:
These are the people within the banks I.T Department who enter
data into the main computer system.
System Librarians:
They are responsible for managing data stored on such media such as
disks.
Including among these are the backup copies of important programs
and data records kept pertaining to the daily transactions of the bank.
Accounting data, debit and credit entries, customer information etc.

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 System Analysts:
S y s t e m A n a l y s t s a r e t h e t e c h n o l o gy p r o f e s s i o n a l s c h a r ge d w i t h
a n a l y z i n g , designing and implementing large computer-based information
systems.
Because they are the crucial interface among users, upper management, and
programmers, they must be skilled in business, computers, and other
technology-based areas.
They must also possess good interpersonal communication skills as
they are the one who basically have to communicate with the
employees of the organization and perceives whatever they may need in
the Information System that is being designed.
Programmers
The computers professional who are specifically charged with writing
computer programmers are called programmers.
Some of the types of programmers are maintenance programmers, and systems
programmers.
Application Programmers:
Code applications programs-the software that serves the direct
needs offend-users.
Generally it is the systems analyst who initially specifies what programs
needed must do.
Armed with a set of formal-often technical-specifications from the
analyst, the applications programmer then write programs from them.
System Programmers:
Code the systems software that controls the operation of computer
hardware and makes it possible to run applications programs.

45

 MIS Management:
A t t h e t o p o f t h e c o m p u t e r h i er a r c h y a r e M I S e x e c u t i v e s .
I n H a b i b B a n k Limited I.T Managers or I.T Director is at top of the I.T
Department Hierarchy.
These MIS executives oversee the full range of MIS-related activities, including
TransactionP r o c e s s i n g w h i c h t r a d i t i o n a l l y a c c o u n t s f o r t h e l a rge s t
s h a r e o f t h e i n f o r m a t i o n processing- as well as telecommunication, data
administration, and end-user support.

Duties of MIS Personnel

They manage information inflow from start of any work to its final
destination and scrutinize all the information.
They generate report for a top manager e.g. is target matched or not?
They securitize the systems that are already present for the
purpose of compliance of system in bank.
It is made on MIS. In it information about employees
, h i s s a l a r y allowances, deductions, provided fund, tax, net and gross
salary is recorded andis given to employees in printed form.

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Data Processing-Information Cycle

Both computer and human mind act as processors that select data and
transform them into meaningful information.
S o m e o f t h e t y p e s o f i n f o r ma t i o n t h a t m a y b e p r o v i d e d t o
d e c i s i o n makers after data are transformed into information by computers or
some other kind of processing.
The format of the information received is often dictated by the needs
and preferences of the decision makers.
All programs on a computer system can break down into two main categories:
Application software
System software

Application software
It includes user-oriented programs.
Application software includes the programs, software packages, and tools
needed for such specific, end-user-oriented tasks as billing, accounts receivable,
word processing, payroll, database management.
Two main categories of application software exist.
1) General-purpose application software
It includes programs and packages that are being used by workers in the
organizations subunits such as word processing spread sheets, database
or file management, and presentation graphics.
These are more likely to be purchased externally than developed internally
by the organization.
2) Special-purpose application software
It includes programs and packages that support the activities of
workers in a particular subunit.

47

Accounting debiting and credit in ge n t r i e s , s o f t w a r e s u s e d i n

ATM s, a n d p a y r o l l ar e u s u a l l y c a l l e d S p e c i a l - p ur p o s e softwares
as these softwares have been developed for special purpose operations and
have to be custom made according to the organizations requirements.
This kind of software is being used by a limited number of users or
subunits than are in general- purpose applications.

48

Recommendations about the IS

Even though Oracle has provided HBL with an extremely customized
Information System to suit its business needs, the Financial Control Division
feels that Oracle GL has not been modified enough to suit their needs according
to their specific needs.
Thus one proposal that is notable and must be pointed out is that if the company
purchases a new version of Oracle GL, it should be further customized in a
better way with the specific needs of the Financial Control Division in mind.
System enhancements over time might also require to be carried out that could
engage upgrading the server, storage and database systems.
The management should try to decrease job insecurity among the employees.
Training program should be started for internees and newly appointed
employees.
There should be transport facility for the employees.
The number of employees should be increased in order to decrease the workload.
The bank charges high service charges as compared to the other banks, so these
should be lowered down.
Surveys must be conducted regarding customer satisfaction level and all
employees of this dept. should look forward to getting feedback whenever
possible

49

Future Plans about the IS

As for the future plans of the Company concerning the information system, it
seems that the company is satisfied with the system and willing to keep it. It
will purchase new versions of the Oracle E-Business Suite as soon as they are
released.
In the future, HBL also has extension plans and is projected to open branches
and start operations in some foreign countries also. When that happens, a great
deal more will need to be invested in the companys information system and it
would remain to be seen whether the company would continue using the current
information system or switch to some other information system.

50

Conclusion
The Oracle E-Business Suite is a top of the line application software used by
businesses around the world.
Oracle is a software company renowned for providing its customers with
excellent softwares that provide fast, easy and efficient business information
and support systems which play a vital part in operational running of a business
and coming up with improved business solutions.
HBL aims to keep its business in line with the top banks and corporations of the
country and therefore, it has chosen Oracle E-Business Suite as the application
software that manages and supports its business applications. The Oracle GL
has the important task of maintaining General Ledger Balances of the bank from
around the country and generating reports and financial statements on a daily
basis.
HBL is clearly the first choice of every one who believes in qualitative approach
of banking an environment of highly responsible people.
Bank is enjoying a healthy market share and taste of good status in terms of its
operative features and customer support.
HBL is clearly the best bank operating in Pakistan.
Personal loan is a distinguished feature of HBL experiencing a good reputation
and reasonable markup with respect to prevailing market mark up with
assurance of satisfaction and support.
HBL has more customers as compare to other banks, if they give proper
attention to every customer then in few years it will be the leading bank of the
country.

51

References
www.Habib Bank limited Pakistan)
http://www.virginia.edu/integratedsystem/howdoi/HTML/NAV3018U.
http://thesisstation.com/thesis-introduction-habib-bank/

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