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INTERNSHIP REPORT
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HABIB BANK LTD
ACKNOWLEDGEMENT
Everyone should admit that without ALLAH’s help, one can’t get anything. I bow my
head before almighty Allah with gratitude. I am very much thankful to the individuals
who have helped me in preparing this report. And also very much thankful to former
fellows and contemporary colleagues who took the time and trouble during the last
few days to speak to me about the way this text could be further improved.
ABC DEF
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factors as under:
1. It is a big and famous organization having strong roots in the market and good
2. Its working environment is very impressive having the largest network in Pakistan
as well as in Overseas.
implementations and the ground realities that how a financial institution can play a
6. Mobile banking.
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This is the map of domestic and overseas network of HABIB BANK LTD.
DOMESTIC NETWORK
OVERSEAS NETWORK
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HBL HISTORY
HBL established operations in Pakistan in 1947 and moved its head office to Karachi
from Bombay. The first international branch was established in Colombo, Sri Lanka
in 1951, and Habib Bank Plaza was built in 1972 to commemorate the bank’s 25th
Anniversary. It has come a long way from its modest beginnings in Bombay in 1941
HBL was nationalized in 1974 and it continued to dominate the commercial banking
sector with a major market share in inward foreign remittances and loans to small
industries, traders and farmers. International operations were expanded to include the
Government of Pakistan had formally granted the Aga Khan Fund for Economic
On February 26, 2004, management control was handed over to AKFED. The Board
Today, HBL plays a central role in Pakistan's financial and economic development.
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BUSINESS VOLUME
(Rupees in Million)
Others
Import 245,006
Export 177,101
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PROFILE OF EMPLOYEES
President 1
Group Executive 7
Manager 2,163
Officer 2,526
Cashier 1,485
Branches 1494
Employees 13211
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BOARD OF DIRECTORS
MAJOR ASSIGNMENTS
President
1. To implement the policies chalked out and decisions made by the board of
directors.
3. To maintain good relation with the big Clients of the bank in the interest of the
origination.
Board Of Directors
Regional Chiefs
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1. To visit branches in order to promote the business activities and to make the
Branch Managers
2. To meet the depositors and borrowers and solve their banking problems.
cost & cost free deposits and giving secured loans to the valued clients.
PRODUCT LINE
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HBL has launched its most attractive product named “HBL Credit Card” with a lot of
features. For example, HBL offers a feature to promote its credit card that is “Save
and spend” up to a certain amount. It is very convenient and flexible for the
customers. The HBL Credit Card adds simplicity and excitement and is accepted at
over 24 million merchants worldwide. They claim that they have made shopping fun
Classic
Card
Convenience
Security.
Affordability.
Cash Advance.
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Instead of paying with cash, simply present your HBL Credit Card to the shopkeeper
Bill Payments
You can pay the bill of your HBL Credit card through two modes.
Modes of Payment
MAXIMUM
MINIMUMN
2. Through Cash.
You can give one-time standing instructions to pay your monthly bill. Check the
amount in your monthly card statement and make the payment with your regular card
payment system.
For all transactions, an SMS alert will be sent to you on your mobile phone to confirm
that the transactions have been conducted by you. A nominal fee will be charged for
Security
Your HBL Credit Card ensures your money stays completely secure. You cannot lose
cash if you don’t carry it. In the unlikely event that your card is stolen, you can call at
HBL Phone Banking (111-111-425) and your card will be blocked immediately.
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Affordability
Buy Now, Pay Later, HBL Credit Card gives you the flexibility to buy what you want,
A credit card statement will be sent to you on every month with details of all your
purchases. You will have 21 credit free days to make the payment from the statement
date.
You have to pay at least 3 days in advance if you make your payments by Cheque to
You have the freedom to pay the entire outstanding amount on your card statement or
Cash Advance
If you require cash urgently; you can go to any specified HBL branch and withdraw
cash at the counter. You can also go to any 1 Link ATM in Pakistan and more than
780,000 ATMs and financial institutions worldwide displaying the Visa/Plus logo.
You can withdraw cash up to the available cash advance limit on your HBL Credit
Card. For Cash Advance, nominal service charges will be applied from the withdrawal
date
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Premium Allocation:
Management Charges :
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MATURITY OF PLAN:
Policy holder can keep paying As long as one can afford to save yearly
Management Fund.
The policy holder can surrender the plan any time after 2 years but may suffer
The payment term is flexible and minimum assumed payment term is 10 years.
The policy holder may discontinue the premium payment even after 5 years and
can still enjoy death benefit and appreciation on his/her 5 years saving depending on
This is whole life plan and there is no limit on maximum age at maturity
Partial withdrawals are allowed only after 2 years full year’s full premium is
paid.
Accumulated cash value of the policy will be paid to the policy holder at Plan
Maturity.
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HBL Visa Debit Card allows you to pay for your purchases directly from your bank
account. You don’t have to carry cash and your monthly statement provides you
with a complete record of all your transactions so you can manage your
T-PIN Generation
Your TPIN (Telephone Personal Identification Number) is generated the first time
you call and you can use it as your password for verification purposes, you can
change your TPIN anytime you like. You can get the following information.
Get information about the last 5-10 transactions carried out on your account.
Request your bank statement, either through fax or email (as supplied in your
subscription form).
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Get details of your transactions from the last 6 months on each of the accounts
Transfer funds between your own accounts (as listed in the subscription form)
or from your account to a third party account (as listed in the Third Party
Authorization Form).
Transfer funds from your own account to an account in another bank under the
Generate your own choice of ATM PIN without filling a request at your
branch.
Inquire about the daily accounts related profit rates and currency exchange
rates.
o Bankers Cheque
o Statement
o Balance Certificate
o Cheque book
Account information
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Funds transfer
View statement
FREE SERVICES
branch
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o Deposit Based
Chairman
President
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Board of Directors
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By looking at the organizational structure of HBL would be found that the structure at
HBL is a critical one. All the decisions are made at the top management level and the
subordinates have to obey these decisions. This trend in the decision making shows a
pattern of rigidity in structure of HBL.
b) Downward Communication
The same pattern is followed at HBL. No doubt it’s a very traditional approach but it
can create problems because it ignores the receiver of the communication because the
issuer of policies and procedures does not ensure communication. In reality may the
messages communicated downward are not understood perfectly.
c) Chain of Command
The chain of command is an unbroken line of authority that links all persons in an
organization and shows who reports to whom. By analyzing the organizational
structure it can be found that there is a scalar principle followed with in the Bank
because each and every person knows to whom can one report. The authority and
responsibility for different tasks and duties are different, as well as every one knows
the successive levels of management all the way to the top.
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The chain of command illustrates the authority structure of HBL. Authority is the
formal and legitimate right of the manger to make decisions, issues orders and
allocates resources to achieve organizational desired outcomes. By analyzing the
chain of command of HBL, one can come to the conclusion that, as there is scalar
pattern followed at the organizational setup of HBL therefore it is implied that
everyone in his position knows that what is one’s authority and what is the
responsibility and the authority it allocated.
e) Delegation
Delegation is the process, which managers use to transfer the authority and
responsibility to position below in the hierarchy. Most organizations today encourage
managers to delegate authority to the lowest possible level to provide maximum
flexibility to meet customer needs and adapts to the environment. But at HBL no such
system prevails the managers try to keep as much of the authority as they can and if
some authority is delegated it is sure that it will be misused
Cashier (Cash
Operation Manager Account Opening
Receipt/Payment & Utility Bills)
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Account opening is an agreement in which customer offers his funds and bank accepts
these funds, therefore the nature of relation between a banker and customer is of a
contractual one and all the conditions applicable to this contract act are also
applicable.
I was given the assignment of issuing Cheque books. It is issued to those customers
whose accounts are operated by the concern bank. Cheque books in two different
categories are issued which are as fallows.
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Remittances are sums of money sent in payment for or against something. The
remittance department is mainly concerned with these payments. Remittances are
divided into:
Inward remittances
Inward remittances refer to payment in favor of the banks account holders inward
remittance includes all Cheque received for collection.
Outward remittances
Outward remittances are all payments made to other people on behalf of the account
holders in the bank. Outward remittances can also be done for none account holders
who deposit cash in the bank and remittance tools are prepared for them. Among the
work done by the clearing department is receiving credit advises in favor of the banks
account holders and also debit advises against the account holder’s accounts. There
are various tools of remittances to the customers who want the facility of remittance.
This is an extra ordinary banking facility which is provided to the public in this if they
are maintaining an account with the HBL they can lodge Cheque of any bank in
Pakistan, which will be collected and credited to their respective accounts through the
process of clearing. In this representatives of various banks are gathered at SBP and
exchanges the Cheque presented to them for debit of the respective accounts and in
second round of meeting provide each other the fate of those Cheques to be credited
to respective accounts.
When people present the Cheque of any other bank for clearing, first enter the Cheque
into the clearing register of the bank. Then this Cheque sent to the NIFT for clearing.
NIFT is the department which is created by the SBP for clearing the checks of
different banks.
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a) Cash Payment
Payment of Cheques
It is counter where all payments are made. Whether the payment is made against
cheque, Banker’s cheque etc
Pensions Payment
Both types of pensions that is provincial and federal are paid to the thousands of
pensioners, this is also a unique feature of HBL
Payment of Salaries
This is one the distinct features of HBL, that it provides services to the Govt.
departments to distribute their salaries every month. The prominent examples include
ARMY, RANGERS, POLICE, EDUCATION, and PUBLIC WORKS ETC.
b) Cash Received
On this counter cash is received from the customer. An accountholder deposit cash
into his account on this counter or a person may deposit application with for banker;s
cheque and so on.
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Deposits Section
In the deposit section the amount of rupees deposited are carried out in two ways. One
is that the customer wants to deposits the money in his/her account directly in
monetary terms, while the second way of depositing the money is through Cheque. In
both the cases I observed the following procedures.
In this method a voucher is filled for the customers with the descriptions of Account
number, amount deposited title of the account and the name of the customer having
that account. The depositor put a signature on the voucher and the amount is paid to
cashier who stamped it and the voucher consisted of two parts, one is given to the
customers and the other part remains with the bank. In this type of deposit, the
voucher is received by writing the amount as BY CASH.
In this case the same procedure is fallowed but in the voucher the Cheque number
through which the amount is deposited is written against writing BY CASH.
Banker’s Cheque
This is made for the customer. This mode of remittance is normally used for payment
to out of city or within city beneficiaries.
Third counter is for collection of utility bills. HBL is providing this facility since long
but recently it embark upon it with a new vigor and vitality and extended the range of
its utility collections. In this connection HBL nominated its all most all Branches all
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over the Pakistan to provide utility bill collection facility up to 9:pm instead of normal
working hours 5:pm. It also amended the previous collection timings which were
from 9: am- to 1: pm, now all branches collect the utility bills up to 5: pm instead of
1: pm. This amounts to the un-matched and unique services provided HBL. Its utility
collection ratio is more than 34% of market, which is a clear proof of its exclusive
services in this respect.
There are many other Branch operations, which are controlled by the Branch manager
with the help of operation Managers, there are many kind of these operations like
7 Fixed Deposit
There are many schemes in HBL for Fixed Deposit of their cash with different profit
rates.
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The main function of this department is to recover the debts of the bank. In the
previous political government huge amount of loans were granted on political grounds
which are mostly bad debts. This department is trying to recover those old and new
debts.
6.2.2Credit Department
The Credit Department is responsible for advancing loans to the customers. The loans
are mainly categorized in two types as given below:
i. Lending Products: To advance loans to labour intensive enterprises
ii. Banking Products: Advances to general account holders.
6.2.3Finance Department
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This Div. works under the Board of Directors. It has a President who is CIA
qualified. Its function is to observe the internal control. The audit is conducted
quarterly. The audit teams inspect every branch of the bank. Surprise visits are
also conducted by the auditors.
All the matters of administrative nature are being dealt in this department.
This includes: transfers, posting, promotion orders, leave orders, approvals etc.
All the information can be shared mutually by the virtue of software called
MYSIS. This information system connects all branches in Pakistan with each
other through intranet. The banking and treasury transactions are also made
through this system and could be accessed any where in all over the Pakistan.
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11
FinanceDepartment
Finance Department
ChiefFinancial
Chief FinancialOfficer
Officer(CFO)
(CFO)
AyazAhmed
Ayaz Ahmed
Treasurer
Treasurer Financedirector
director
Faizan Mitha Finance
Faizan Mitha
InvestmentG.E
Investment G.E AccountantExecutive
Accountant Executive
AuditorExecutive
Auditor Executive
BudgetingG.E
Budgeting G.E
SalimAmlani
Salim Amlani
CapitalStructure
Capital StructureG.E
G.E
Financial Director then direct account Executive that is responsible for collecting data
and preparing financial reports. And secondly Financial Director Direct the Auditor
Executive who is responsible for check and balance all the activities in the bank.
On the other hand, Treasurer Direct three bodies. One is Investment Executive and
second is Budgeting Executive who is responsible for preparing budget plans for the
bank. Third body is Capital Structure Executive.
FINANCE SYSTEM
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Responsible for book keeping and account, department at head Office, prepare all
financial results and the MIS through its Management reporting wing. This division is
actively involved in market comparative analysis, consolidation of bank’s budgets, its
monitoring and constant review of various financial indicators.
Financial division works as the backbone of the Bank’s Operations. The division
which reports directly to the President and Chief Executive of the Bank has been
instrumental preparation of banks business plan and future strategies. The budgetary
performances are constantly reviewed and through a sophisticated “monthly
performance report” which is a computer based program, the division provide feed
back to the senior on strategic issues like reasons for budgetary variance and methods
to arrest negative performance factors.
Preparing the bank’s annual accounts and coordinating external audit is also a direct
function of a finance division.
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Each of the above function has got sub-divisions – for example Production has
maintenance, Administration has purchases etc.
Finance deals with financial resources. Financial management as a corollary would
deal with management of financial resources and related areas.
The bank finance policy is enquiring funds from the following sources:
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After the acquisition of funds their allocation is necessary. The bank seeks the best
way for making investment to get more profit with maximum security. The bank has
an investment portfolio in which it allocate its funds for crediting to borrowers,
investment in stock market, investment in the real estate property etc. for allocation of
funds a bank has to follow some banking policies and a prudential regulation of SBP.
8. Financial Analysis
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Ratio analysis is a useful tool for analyzing financial statements. Calculating ratios will
aid in understanding the bank’s strategy and in understanding its strengths and
weaknesses relative to other companies and over time. They can sometimes be useful in
identifying earnings management and in understanding the effect of accounting choices
on the firm’s reported profitability and growth. Finally, the ratios help in obtaining a
better understanding of a firm’s current profitability, growth, and risk which can improve
forecasts of future profitability and growth and estimates of the cost of capital.
A review of the ratios follows.
This ratio indicates the extent to which current liabilities are covered by those assets
expected to be converted to cash in the near future. Current assets normally include
cash, marketable securities, accounts receivables, and inventories. Current liabilities
consist of accounts payable, short-term notes payable, current maturities of long-term
debt, accrued taxes, and other accrued expenses. Current assets are important to
businesses because they are the assets that are used to fund day-to-day operations and
pay ongoing expenses.
The current ratio for the year 2006, 2007, 2008 & 2009 is 1.20, 1.19 1.16 & 1.14
respectively, compared to standard ratio 2:1 this ratio is lower which shows low short
term liquidity efficiency at the same time holding less than sufficient current assets
mean inefficient use of resources
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Sales to working capital give an indication of the turnover in working capital per year.
A low working capital indicates an unprofitable use of working capital.
A measure of both a company's efficiency and its short-term financial health. Positive
working capital means that the company is able to pay off its short-term
liabilities. Negative working capital means that a company currently is unable
to meet its short-term liabilities with its current assets (cash, accounts receivable
and inventory).
Also known as "net working capital", or the "working capital ratio".
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It is very clear from the above calculations that the working capital of the bank is
gradually increasing over the years, which shows good short term liquidity efficiency.
By using a combination of assets, debt, equity, and interest payments, leverage ratio's
are used to understand a company's ability to meet it long term financial obligations.
Leverage ratios measure the degree of protection of suppliers of long term funds. The
level of leverage depends on a lot of factors such as availability of collateral, strength
of operating cash flow and tax treatments. Thus, investors should be careful about
comparing financial leverage between companies from different industries. For
example companies in the banking industry naturally operates with a high leverage as
collateral their assets are easily collateralized.
These include:
The interest coverage ratio tells us how easily a company is able to pay interest
expenses associated to the debt they currently have. The ratio is designed to
understand the amount of interest due as a function of company’s earnings before
interest and taxes (EBIT). This ratio measures the extent to which operating income
can decline before the firm is unable to meet its annual interest cost.
We can see from this ratio analysis that, this company has covered their interest
expenses 2.43 times in 2006, 1.79 times in 2007 1.8 times in 2008 and 2.82 in 2009.
It means they have performed pretty much same in 2007 and 2008, but has taken a
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different look in 2009. As in 2009 they issued a little high number of long-term loans
and does not have good liquidity position, their EBIT became high thus making TIE a
little high as well
The ratio of total debt to total assets, generally called the debt ratio, measures the
percentage of funds provided by the creditors. The proportion of a firm's total assets
that are being financed with borrowed funds. The debt ratio is calculated by dividing
total long-term and short-term liabilities by total assets. The higher the ratio, the more
leverage the company is using and the more risk it is assuming. Assets and liabilities
are found on a company's balance sheet.
Calculating the debt ratio, we came to see that this company is highly leveraged one
The debt to equity ratio is the most popular leverage ratio and it provides detail
around the amount of leverage (liabilities assumed) that a company has in relation to
the monies provided by shareholders. As you can see through the formula below, the
lower the number, the less leverage that a company is using. The debt to equity ratio
gives the proportion of a company (or person's) assets that are financed by debt versus
equity. It is a common measure of the long-term viability of a company's business
and, along with current ratio, a measure of its liquidity, or its ability to cover its
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expenses. As a result, debt to equity calculations often only includes long-term debt
rather than a company's total liabilities. A high debt to equity ratio implies that the
company has been aggressively financing its activities through debt and therefore
must pay interest on this financing.
Current Worth to Net worth Ratio= Current Worth / Net worth Ratio
We can calculate current worth and net worth by using following formulas:
Current Worth = Total Current Assets – Total Current Liabilities
Net Worth = Total Assets - Total Liabilities
We can see from the above calculations that this ratios continuously decreasing in the
last three years. In 2006 it was 1.78, in 2007 it was 1.66 and in 2008 it was 1.33.
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The capitalization ratio measures the debt component of a company's capital structure, or
capitalization (i.e., the sum of long-term debt liabilities and shareholders' equity) to support a
company's operations and growth. Long-term debt is divided by the sum of long-term debt and
shareholders' equity. This ratio is considered to be one of the more meaningful of the "debt" ratios - it
It is obvious from the above calculations that there is a gradual fall in this ratio over
the years.
Long term Assets versus Long term Debt= Long Term Assets/ Long Term Debts
Profitability is the net result of a number of policies and decisions. This section of the
discusses the different measures of corporate profitability and financial performance.
These ratios, much like the operational performance ratios, give users a good
understanding of how well the company utilized its resources in generating profit and
shareholder value. The long-term profitability of a company is vital for both the
survivability of the company as well as the benefit received by shareholders. It is
these ratios that can give insight into the all important "profit". Profitability ratios
show the combined effects of liquidity, asset management and debt on operating
results. These ratios examine the profit made by the firm and compare these figures
with the size of the firm, the assets employed by the firm or its level of sales. There
are four important profitability ratios that I am going to analyze:
8.3.13 Net Profit Margin:
Net Profit Margin gives us the net profit that the business is earning per dollar of
sales.
This margin indicates the profit after all the costs have been incurred it shows that
what % of turnover is represented by the net profit. An increase in the ratios indicates
that a firm is producing higher net profit of sales than before.
Therefore, the Net Profit Margin was 8.31% in 2006, increase to 12.1% in 2007 to
4% in 2008 and then again increase 25.06%.
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Net mark-up / interest income after provisions + Mark-up / return / interest expensed -
Total non mark-up / interest expenses
Return on Assets (ROA) = Profit after Taxation / Average Total assets x 100
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Return on assets decreased in 2008 and 2009 and it was maximum in year 2007. This
may have occurred because Square used more debt financing in 2007 compared to
2008 and 2009 which resulted in more interest cost and brought the Net income down.
.
Return on Equity measures the amount of Net Income earned by utilizing each dollar
of Total common equity. It is the most important of the “Bottom line” ratio. By this,
we can find out how much the shareholders are going to get for their shares. This ratio
indicates how profitable a company is by comparing its net income to its average
shareholders' equity. The return on equity ratio (ROE) measures how much the
shareholders earned for their investment in the company. The higher the ratio
percentage, the more efficient management is in utilizing its equity base and the better
return is to investors.
The Return on Equity was maximum in 2007 but decreased in 2008 and went down
more in 2009. This again may have happened due to the issue of more long-term debt
in 2008 and 2009.
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2009
Operating Assets:
Cash and balances with treasury banks 79839836
Balances with other banks 40366687
Operating fixed assets 16766668
136973191
2008
Operating Assets:
Cash and balances with treasury banks 56533134
Balances with other banks 39307321
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2007
Operating Assets:
Cash and balances with treasury banks 55487664
Balances with other banks 27020704
Operating fixed assets 13780555
97259620
2006
Operating Assets:
Cash and balances with treasury banks 46310478
Balances with other banks 35965048
Operating fixed assets 11954876
94,230,402
2005
Operating Assets:
Cash and balances with treasury banks 33051049
Balances with other banks 31813513
Operating fixed assets 11166195
76030757
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This ratio is indicates that how much sales are contributed by investment in fixed
Assets.
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Analysis:
i. There is a rapid increase in cash and balances with treasury bank. In the year
2006 it was144.5 % of the cash, and in the year 2009, it reached to 186.86%.
ii. On the other hand balance with other banks weaving every year. There is no
same trend among them.
iii. Advances have also increased as compare to the base year.
iv. There is overall increase in assets.
v. Though the assets have increased but the increase in liabilities is more than the
increase in assets.
vi. The main reason of increase in assets is deposits and other accounts, and
increase in loan from State Bank of Pakistan.
vii. That is why there is a prominent increase in net assets.
viii. There is a continuous increase in investments. It has increased to 132.28% in
the year 2007, as compared to 100% in the year 2005. But after that it was
declining from 132.28% to 68.34% in the year 2009.
ix. There is a not enough growth in deferred tax assets.
x. The bank has paid all the tax liabilities. Now there is no outstanding tax of
bank in the year 2009.
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Analysis:
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Shareholders Equity
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Analysis:
i. In the year 2009, out of total assets (1008% of net assets), the liabilities and
equity are 908% and 100%, respectively, as detailed below:
o Assets = Liabilities + Equity
o 1008% = 908% + 100%
ii. In assets, the Advances form the largest part i.e. 604% out of 1008% of assets.
iii. The second largest portion is Cash and balances with treasury banks. In the
year 2005 the cash and balances with treasury banks was 66%, whereas in the
year 2008, it raised to 75% of net assets.
iv. The liabilities of bank are much more than its equity.
v. Lending to Financial Institutions is only 8% of net assets which is very meager
as compare to the Investments.
vi. The bank is not investing the money wisely. Means not going in the right
direction. Instead of lending to financial institution, it is spending its money in
investments. It means the bank is avoiding making efforts and finding easy
ways to utilize the assets.
vii. In the year 2005, the balances with other banks was 60% of net assets whereas
in the year 2008, it dropped down to 39% of net assets. But in 2009 it again
grow up to 52%.
viii. The portion of operating fixed assets in net income are decreasing from start to
end.
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Analysis:
i. In the year 2009, Markup earned is 186% more than net Markup income.
ii. Non-markup income is very low i.e. 76% of Net markup income.
iii. As compare to Non-markup income, Non-markup expenses are less i.e. 59%
of Net-markup income
iv. Profit before taxation increase to 60% of Net-markup income due to low
Administrative expenses.
v. The increase in profit available for appropriations is not due to high profits;
rather it is due to bringing forward the previous un-appropriated profits.
vi. In the year 2005, the markup expense was 42% of net markup income,
whereas in the year 2009 it has reduced to 72% of net markup income.
vii. Fee, commission and brokerage income remained declining throughout the
period under observation i.e. 23% in 2005 of net markup income and in 2008
it was 12%.
viii. The taxation expense has reduced from 53% of net income to 17% in the year
2005 & 2009, respectively.
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Muslim Askari % of HB
Habib Allied
Commercial Commercial Industry to
Particulars Bank Bank
Bank Bank Average Industry
Limited Limited Industry
Limited Limited Average
Analysis
Mark-
up/return/interest 40043824 18393313 30517000 31046583 30000180 211%
earned 63,305,033
Mark-
up/return/interest 11560740 10650719 16560000 20331194 14775663 160%
expensed 26,525,556
Net mark-up
28483084 7742594 14011000 10715389 24294436 151%
interest income 36,779,477
9,187,404
Provisions 4019121 5915615 3561000 3543357 4259773 216%
Net Mark-
up/interest 27,592,073
24463963 386225 6121000 7172032 9535805 289%
income after
provisions
Total non mark-
16,378,811
up/interest 5791440 2707000 4152000 12417459 6266974 261%
income
PROFIT
BEFORE 20,502,802 21887588 461382 6121000 1794720 8,293,478 247%
TAXATION
PROFIT AFTER
14,276,125 15374600 386225 4157000 1301301 5,838,596 245%
TAXATION
Analysis:
The markup earning of HBL bank is very high the industry average i.e., 211%.
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HABIB BANK LTD
Even then the net markup interest income after provision is better (289%) due
to comparatively less interest expenses and provisions.
High non-markup income (261%) shows the high income before taxation.
There is a little bit difference between both profits (profit before taxation and
profit after taxation) which shows the better position of Habib Bank as
compare to its competitors.
Banking is now become a big giant of Economy. It’s playing a vital role in the growth
of country economy, but there are some problems. But when we study the actual
practice we come to know that there is lot of gap between theoretical point of view as
Recently HBL Launched credit card which could not attract the customer due to
different reasons of price, convenient and markup rates, same as due to highest
markup rate of Auto Finance which is 20% that product is also creating very tough
competition in market.
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HABIB BANK LTD
Account Holder can find out the current balance by using unique ID and
Password.
Account Holder can transfer money from his account to other HBL account by
By using Phone banking customer can find out the account balance through
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HABIB BANK LTD
I have observed lot of weaknesses in HBL, it has very large network but Online
facility is not available in every branch, ATM machines are not available, their
FFT charges are high, If we compare the facilities of other banks offer to their
customer as compare to HBL then we find out different important factors which
Extra charges.
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HABIB BANK LTD
13. Conclusion/Recommendation
capabilities.
as well.
appointed in the officer ranks for the rapid progress of the bank.
amendments.
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HABIB BANK LTD
performance level.
HBL and especially thanks to honorable sir Mr Syed Izaz Hussain Shah branch
manager of HBL Commissioner road branch Sialkot region and Miss Humaira Munir
operation manger HBL Commissioner Road Branch Sialkot region. who provided me
o www.habibbank.com
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