Habib Bank Intership Report by Junaid Javaid

INTERNSHIP REPORT
HABIB BANK LIMITED

Furniture Hub Branch, G.T Road Gujrat
Supervised by: Mr. Asim Ali
Prepared By: Junaid Javaid

06108082
Semester: 7th
Date of Submission: 12-OCT-2009
Final Internship Report 1 GIFT University

GIFT Business School
ACKNOWLEGEMENT
All the praises are for “Almighty Allah” whose uniqueness, oneness and
wholeness are absolute. Who gave me enough courage, knowledge and
ability to accomplish this assignment?
All respects are for His “Holy Prophet Hazrat Muhammad”

Who enabled me to recognize oneness of my Creator?
My Parents whose rising gave me character and a compassionate heart.

So I pay my gratitude to Mr.Hassan Jabar whose cooperation on every
step of this subject is highly appreciable. Without his cooperation it was
not possible to complete this task.
…………………………………..

EXECUTIVE SUMMARY
This report is on my corporate sector internship. And for that internship I chose the
organization which is recognized for its most number of bank branches operating in
Pakistan named Habib Bank Limited. I preferred to HBL branch situated at Furniture
Hub G.T Road Gujrat. And for doing internship in that branch me and my two fellows
received the reference letter from the Branch Manager Mr. Asim Ali.
Me and my two friends began our internship on 03 August 2009. We spent the first week
in noting the brief history and introduction given by Mr. Asim Ali. From the second
week, we started our practical work and in that we worked for clearing department where
we used to receive cheques from the customers drawn on different branches. In the third
week, we started working in deposit department of bank. There are almost seven types of
deposits offered by the Habib Bank, so we spent the whole six days while in the
understanding the purpose and concept of each deposit type. On the forth week, we were
stayed at the Bill Department of the Branch where we collected the bills of Electricity,
PTCL & SSG, and also in the understanding of Bill Department Functions. From the fifth
week, we started working for Remittance Department, where we make Pay Orders, Pay
Slip, Demand Draft and Telegraph Transfer. Then we spent sixth week in the Account
Opening Department which was responsible for the opening and closing of accounts. Our
Seventh Week was spent Cash Department where we used to receive cash from
customers and then deposits it into the accounts of the customers and maintained their
balances. We spent the last in the credit department of Bank and also noted down the
bank’s procedure and requirements in processing Car Finance and Loan Financing
Facility to their customers.

After doing the Internship in the Bank, I drawn conclusion that Working for a bank is a
good experience especially when it comes to the point to learn something and to have
broad understanding of the different areas. I spent almost 8 weeks in the bank and come
to know that bank as an institution seems simple but its working is really a challenging
one because a bank not only has to satisfy its customers but also has to provide services
which are to be considered as unique and superior from all of its competitors.
Table of Contents
1. INTRODUCTION ……………………. 1
2. DESCRIPTION OF INTERNSHIP .… 4
3. LEARNING …………………………. 26
4. SWOT ANALYSIS …………………….. 29
5. CONCLUSION …………………….. 32
6. SUGGESTIONS ….. .……………….. 33

7. APPENDICES …………………….. 35

1. INTRODUCTION
Habib Bank Ltd is a Banking Company which is engaged in Commercial & Retail
Banking and related services domestically and overseas. HBL enjoy 20% of the market
share in Pakistan. Today HBL is truly the bank of the people, providing its customers
convenience and satisfaction all over the world. Habib Bank Plaza, the tallest building in
Pakistan, is the proud symbol of HBL leadership in Pakistan’s corporate ground. HBL is
currently uses rate AA and A1+.
1.1 ESTABLISHMENT
Habib Bank Limited was established by Mr.Ismail Habib (Late) on August 25, 1942 at
Bombay. It was the first Muslim Bank of the sub-continent. It was Established with a
paid up capital of Rs. 2.5millon
1.2 BRANCHES
Numbers of branch of HB L 1437.in the form of 1408 retail Banking branch 18
commercial banking division 10 corporate center 1 Islamic banking.

1.3 MISSION
To be recognized as the leading financial institution of Pakistan and a dynamic
international bank in the emerging markets, providing our customers with a premium set
of innovative products and services, and granting superior value to our stakeholders –
shareholders, customers and employees.
1.4 OBJECTIVES OF HBL

Following are some of the main objectives of HBL.
 To earn profit for the Bank itself and for its shareholders.
 To promote and boost up business sector inside the country.
 To provide employment opportunities to people.
 To help in development and industrialization of the country.
 To provide loan and advances to help out in self employment schemes.
1.5 SYMBOL OF HBL

Symbol depicts
Bismillah ============Islamic Culture and Values
Sword ============== Power
Lion================ As a symbol of strength
1.6 CORE VALUES OF HBL
HBL is firmly grounded with a corporate philosophy that incorporates five solid values
which each individual associated with the bank abides by.
1.6.1. Humility
HBL encourages a culture of mutual respect and treats both their team members and
customers with humility and care.

1.6.2. Integrity
For them, integrity means a synergic approach towards abiding their core values. United
with the force of shared values and integrity, they form a network of a well-integrated
team.
1.6.3. Meritocracy
At every level, from selection to advancement, they have designed a consistent system of
human resource practices, based on objective criteria throughout all the layers of the
organization. HBL is therefore, able to achieve a specific level of performance at every
layer of the organization.
1.6.4. Teamwork
Their team strives to become a cohesive and unified force, to offer the customer, a
service beyond his expectations. This force is derived from participative and collective
endeavors, a common set of goals and a spirit to share the glory and the strength to face
failures together.
1.6.5. Culture of Innovation
Their aim is to be proactively responsive to new ideas, and to respect and reward the
agents, leaders and creators of change.

2. DESCRIPTION OF INTERNSHIP
2.1 GOALS
• To gain a practical experience and shaping a good future for myself.

• To gain the understanding that how different departments of an
organization coordinate with each other or work together to achieve one
goal.
• To understand the working of each department of a bank.
• To utilize my abilities up to the mark in order to achieve the full advantage
of the given opportunity.
• To observe the bank’s dealing with the customers.
• To observe how much an important role bank plays for their customers.

2.2 Duties and Responsibilities
I started my practical training by following Departments:
• Clearing From 10 August 2009 to 15 August 2009

• Deposit From 17 August 2009 to 22 August 2009
• Bill collection From 24 August 2009 to 29 August 2009
• Remittance From 31 August 2009 to 05 September 2009
• Account Opening From 07 September 2009 to 12 September 2009
• Cash From 14 September 2009 to 19 September 2009
• Credit From 21 September 2009 to 26 September 2009

2.3 Daily Base Work
Description of activities from 03 Aug to 08 Aug
Me and my two fellows started our corporate sector internship on
that day. We were welcomed by the Branch Manager of HBL
named Mr. Asim Ali. He also introduced us with his staff
members. Mr. Asim told us about himself and also share his
experience at Habib Bank. Mr. Asim gave us the schedule for
Mon that week and according to his plan, we would be given the
important and necessary information of the Habib Bank which
would be fruitful for us regarding to the understanding of Banking
functions and operations and we will have to start the practical
work from the next week. We have to remain at the bank from
9am to 5pm.
Tue On Tuesday, Mr. Asim gave us the introduction of Habib Bank.
According to him, Habib Bank Ltd is a Banking Company which
is engaged in Commercial & Retail Banking and related services
domestically and overseas. HBL enjoy 20% of the market share
in Pakistan. Today HBL is truly the bank of the people, providing
its customers convenience and satisfaction all over the world.
Habib Bank Plaza, the tallest building in Pakistan, is the proud
symbol of HBL leadership in Pakistan’s corporate ground. HBL is

currently uses rate AA and A1+.
On that day Mr. Asim told us the objectives of HBL which are
given below:
To earn profit for the Bank itself and for its shareholders.
To promote and boost up business sector inside the
country.
Wed To provide employment opportunities to people.
To help in development and industrialization of the
country.
To provide loan and advances to help out in self
employment schemes.
On that day, Mr. Asim gave us an overview of HBL

Organizational Structure. According to him, At present the Bank
operates through one central and 23 Regional Offices and 1439
branches, all over Pakistan. The president and Executives
Committee look after the affairs of the Bank. Each Regional
Thu
Head Quarter is headed by a Chief Executive and assisted by
General Manager Operations and General Manager Support
Services. The Regional Head Quarter controls the branches in
their area.
Fri On that day, Mr. Asim told us very important things which are the
Functional Responsibilities of HBL. He said that the Functional
responsibilities of the Banks are broken into seven groups
known as:
1) International Operations Group

2) Corporate Banking and Treasury Investment Group
3) Retail Banking and Operation Group
4) Finance, Audit and Administration Group

5) Assets Remedial Management Group
6) Credit Policy Group
7) Corporate Bank, Financial Institutions and Project Finance
Group
On that day Mr. Asim told us that there are few departments on
which general or day to day banking of HBL composes. There
details are as under:
• Deposit department
• Clearing Departments
Sat • Inland Remittance Department
• Bills Departments
• Advances Departments
• Cash department
• Foreign Exchange Department

Mon On Monday, I started my work in the clearing department of
Bank and I had to work in that department for the whole week.
Before carrying on the activities in the clearing department, I was
advised by my Manager to be remained alert about the fake
cheques, and giving some instructions for the careful
examination of cheques like signature verification from specimen
card. For the time of receiving cheques I have to consider the
following instruction
• Date of the cheque mean post/ out dated cheque will not
receive
• Amount in figure or wording will be same
• Signature must be authorized
• If cheque amount in above of 50000 than supervision

must be necessary
I carried on my routine task in the clearing department and also

Tue accepted transfer deliveries and clearing cheques from the
customers of the branch and arranged it for the collection.
I had to arrange the payment of cheque drawn on the branch
and give it for collection to any other branch of Habib Bank of
Wed
Pakistan and also to any member or sub-member of the local
clearing house.
I had to collect amounts of cheques drawn on members, sub-
members of the local clearing house and send for collection by
Thu
those Habib Bank Limited branches which are not represented
at the local clearing house.
Fri It was a holiday for the Independence Day.
On Saturday, Mr. Asim Ali (Bank’s Manager) gave the schedule
for the next week and also told the advantages of clearing
house, some of them are mentioned below:
1. It prevents the cost and waste involved in the collection of
Sat
each and every cheque and claim.
2. A banker has no obligation to collect cheques drawn
upon other banks for the customers.

Mon On Monday, Me and my two fellows were ordered by the branch
manager to do the work in the Deposit department and stayed
there for the whole week. There are almost seven types of
deposits offered by the Habib Bank, so we have decided to
spend each day on each type in order to gain knowledge
regarding to these different types. So on the same day, we
spent the day in collecting current deposits from the customers
and came to know that it is the type of account where the client
is allowed to deposits or withdraw money as much as he likes.
And small amount of fee deducts by the bank as service charges
on each withdrawal.
We spent our whole day in the Saving Bank Deposits & come to
the point that this type of account is for those persons who want
Tue
to make small savings. And the number withdrawal on that
account is limited.
On Wednesday, we were working in understanding the concept
of Fixed Deposits and made our final statement that in this type
Wed of account a certain amount is deposited for a certain period and
fix deposit is issued to the depositor. Bank pays handsome
interest to the depositor at the end of certain time period.
Thursday was reserved for the Call Deposits. The general point
for that deposit is that it is the sort of deposit, which is deposited
Thu
with the banker against any tender. And this is without interest
deposit.
Friday was belonged to Short Notice Term Deposits (S.N.T.D).
This kind of deposit is for a short period. The depositor may
Fri withdraw his deposit at any tine by giving seven days notice to
the banker. In this type of deposit facility, the trader is allowed to
withdraw his amount with interest of the deposited period.
Saturday was being the half day spent in working for Profit and
Loss Sharing Deposit. These types of accounts are new and
also a step towards the Islamic Banking System in Pakistan.
Sat Under such types of accounts bank allow no interest to the
customers. The Executive Board declares profit or loss every
year and the rate of profit or loss shall be determined on that
base.

Mon On Monday, we received an order from the branch manager
according to which me and two other fellows would have to
spend our Forth Internship week in the Bill Department. So we
began our work on the same day.
We spent the whole day in collecting the bills of Electricity, PTCL
Tue and SSG (Sui Sothern Gas).
On Wednesday we extended our responsibility and also used to

write Scrolls (which are written to keep record of bills collected
Wed by the branch and one copy of them is sent to the concerned
organization) along with the collection of bills.
We carried on working in the Bill Department. On that day, Mr.

Asim Ali told us that Bills department of any bank normally
performs two functions. Which are:
Thu
1. Inward Bills for Collection (IBC)
2. Outward Bills for Collection (OBC)

On Friday, Mr. Asim Ali gave us the brief explanation IBC. And
according to him, IBC are the bills which are collected locally.
They are received from outstation branches banks and parties.
The process of collection starts when the cheques of Habib Bank

Ltd are received from other banks. Then these cheques are sent
Fri
to the Head Office Karachi, which sends the cheques to SBP
(State Bank of Pakistan) for clearing and get the confirmation of
cheque and credit advice. Main activity of clearing is performed
by Head Office, which contacts other banks through SBP.
Sat Saturday was devoted to the explanation of OBC. According to

the Bank Manager:
“When an instrument is drawn on a bank, which is located
outside the city, its proceeds can be collected through a
mechanism called Outward Bills for Collection (OBC).”
Procedure

All the cheques are received on one counter along with the
paying slips duly filled in properly containing particulars of
cheques and account holder. Counter folio of paying slip is
handed over to the customer by putting stamp for “cheque
received for collection for Habib Bank” on it duly signed by
officer. These cheques are scrutinized and cheques for local
clearing are separated from OBCs. Cheques for local clearing
are entered in Clearing Register, whereas cheques for collection
are entered in OBC register. OBC number is allotted to the
cheque from OBC register. Special crossing and bank
endorsement stamps are affixed on the cheque.
Description of activities from 31 Aug to 05 Sep

Mon On Monday, we (me and my two fellows) were directed by the
Branch Manager to spend that whole in working for the
Remittance Department. So we had started our work from the
same day.
On the first day, we were given the introduction of that
department. I considered that introduction be an important for
my report, so I mention it below:
“Remittance is transfer of funds from one place to another or

from one person to another.”
A Remittance is an important service provided by banks to

customers as well as to non-customers. Since it is not a free
service it is a source of income for the bank.
Instruments used in remittances:
• Demand Draft (DD)

• Pay Order (PO)
• Pay Slip
• Telegraph Transfer
We had to spend the upcoming days while working on each

instrument in order to get aware of them.
We had drawn some Demand Drafts. Came to know that

Demand Draft is a negotiable instrument, which is drawn by one
branch to another branch of the same bank. In case of agency
arrangement Demand Draft can also be issued by one branch of
the bank payable to other branch of the other bank e.g. DD
issued by the HBL (Habib Bank Limited) payable by UBL (United
Bank Limited).
Process of the issuance of DD:

Tue
When a customer requests HBL Furniture Hub Branch, Gujrat to
provide him a DD made on his account or against cash payment
for a particular city like Islamabad. Then, after having the total
amount including commission demand draft is issued in favor of
the specified person in that city and is drawn on HBL, Islamabad
Branch. So, when payee in any bank presents this demand draft,
it constitutes the inward clearing of Habib Bank Limited,
Islamabad Branch.
Wed Wednesday was belonged to Pay Order issuance. The
description of Pay Order is that it is a negotiable instrument
made by the bank, on account of a customer, to pay on order the
specified amount to the directed person (payee).
Use of Pay Order:
Pay orders are used to make payment or to transfer money, with

in the same city. Pay order is always drawn on the bank that has
issued it. The main advantage of pay order is that it cannot be
dishonored by the bank. Pay order can be endorsed if it is not
crossed. The payee may present pay Order for payment either
over the counter for cash payment or the payee may transfer
credit to his account.
Process of issuance of Pay Order:
1. Cash Deposited or gives Cheque in favor of HBL.

2. Fill Application Form for Pay Order and signed by
Applicant.
3. Entry in Bank Smart.
4. Bank issue a Pay Order after recovering Charges (2
Copies) which is signed by two officers.
5. Do necessary Vouchering and Take Signature of
Applicant at the Place of received Instrument.
6. One Copy of Pay Order is given to Customer.
7. Other Copy is for Filing Purpose.

Thursday was reserved for issuing Pay Slip, which is describe as
a negotiable instrument like cheque issued by the bank on its
own account to pay a specified amount to the directed person.
Use of Pay Slip:
Pay Slips are used to make payment by the bank itself against
certain expenses incurred; like furniture purchased by bank,
electricity charges.
Process of the Issuance of pay slip:

Thu
1. Bank issue a pay slip in favor of person, to whom
payment is made.
2. Affixes payee’s Account only stamp.
3. Revenue stamp pasted on it.
4. Entry in bank smart.
Example:
If bank has purchased furniture (fixed Asset) costing Rs. 40,000

from a company then a pay slip in the name of that company is
made and, instead of writing the issuing date on pay slip, date of
encashment (realization) is written when it is presented in bank.
Friday was spent in making Telegraphic Transfer (TT).
Procedure of Making Telegraphic Transfer:
This type of transfer is simple. After filling the application form,

Fri
the concerning officer shall fill the telegraphic transfer form. Then
it is sent to the required bank, which on receiving it immediately
makes the payment to the customer and afterwards the voucher
are sent to that bank by ordinary mail.
Sat On Saturday, Mr.Asim Ali (Branch Manager) told us the current
rate schedule of Both Instrument Demand Draft & Pay Order,
which are mentioned below:
The current rate schedule of DD is as follows:-

Up to Rs. 10,000 0.25% or Rs.25
Which ever is higher
Rs.10,001 to Rs. 100,000 0.20% or Rs.40
Rs. 100,001 to Rs. 10,00,000 0.10% or Rs.200
Rs. 10,00,001 to Rs. 20,00,000 0.75% or Rs.1000
Above Rs. 20,00,000 0.06% or Rs. 2000
The current rate schedule of Pay Order is as follows:
Issuance of Pay Order Rs. 50/- for a/c holder
Rs. 500/- for non-a/c holder'
Cancellation Rs. 100/- for a/c holder
Rs. 100/- for non-a/c holder
Duplicate Issuance Rs.100/- for a/c holder
Rs. 100/- for non-a/c holder
And in the last he also told us the Cancellation of Pay Order

(PO), Demand (DD), which is given below:
After issuance of Pay Order, Demand Draft by Habib Bank

Limited, Furniture Hub Branch, Gujrat, if any one of these has to
be cancelled by the customer, it is returned in the bank. Then,
after deducting the cancellation charges of Rs.100 for PO and
Rs. 200 for DD, the remaining (net) amount is paid to the

customer.
Description of activities from 07 Sep to 12 Sep

On Monday, me and two fellows were started working in Account
Opening Department. This department is responsible for the
opening and closing of accounts. In consideration of Habib Bank
Mon
Limited, opening and/or continuing to maintain any account, the
Account Holder/Depositor or Investor would be bound by the
terms and conditions written on the account opening form.
Tue On Tuesday, we were told that the account opening procedures
engage in following steps:
1. The Account Opening Form:-
When a client comes to the bank, and makes a request for

opening of an A/C. The officer says that first fill up a prescribed
application form.
2. Completion of The Form:-
The name, occupation, and complete address of the person

opening the account are written in the columns that are provided
in the form. Signatures are obtained from the customer where it
is required. These signatures should be usual signatures and he
would operate the account with them.
3. Introduction:-
The introduction of a current account holder is accepted for the

opening of either a current account or a saving account. The
introducer should be Account Holder. The signature of the
account-holder introducing the account is obtained at the place
provided for in the account opening form.
4. Specimen Signature Card, Cheques Book Requisition,

Online Form:-
The signatures of the client are obtained on a specimen

Signature card Cheque book requisition and online form.

5. Signature Difference Form:-
The signatures of the client are obtained on a signature

difference form if his / her signatures differ from the
computerized National Identity Card.
6. Account Number:-
When all the formalities are completed then the final approval of
account has to be taken from the Branch Manager. After
obtaining approval of the branch manager an account number is
allotted to the customer all the information is entered into the
computer. Then that account number is written on the Cheque
Book, Specimen Signature cards and account opening form.
7. Send the form to Head Office:-
After fulfill all the requirement and verify the form from operation
manager the account opening form send to Head Office Karachi
and make request to issue the printed cheque book.
8. Issuance Of A Cheque book:-
After opening an A/C with the bank, the A/C holder receive a
letter of thanks from Head Office Karachi then after receiving this
letter client come to bank and makes a request in the name of
bank for the issuance of a Cheque book. The A/C holder
mentions title of A/C, A/C number, signs it properly. Normally
BAL issues a Cheque book having 25 leaves for Saving Account
and 50 leaves Cheque Book to Current Account Holder. Every
Cheque book also contains one leaf that is used for another
issue of a Cheque book.
9. Entry Of A Cheque book:-
Before issuance of a Cheque book, the employee performs

certain functions. They include:
• Stamping requisition slip that is in Cheque

book.
• Enters it in the Cheque book issue register.
• Check whether or not a senior officer has
verified the signatures, if not then first gets
them verified.

After entry in the manual register, the employee issues the
Cheque book to the A/C holder with his/her signature on the
register.
On Wednesday, I was performed the task of opening a current

for the customer named Mr. Zafar Iqbal. For that purpose, I had
followed the same procedure told on Tuesday.
I also make assumption in my mind that the current account is

the most common account and the most preferred amongst
business concerns. There is no restriction on the amount of
withdrawal. Current account enables the client to do cash
transactions in a more efficient manner.
Features:-
Current Accounts can be opened in the HBL

Wed with the sum not less than Rs.1,000/-
No Profit
No deduction of Zakat
Account close charges Rs.150
Service charges for maintaining minimum

balance Rs.100
Online Charges Rs.100
Thu On Thursday, we were opened some saving accounts for the

new customers and came to know that in Pakistan (PLS) saving
account was introduced in January 1982. Individuals who wish to
invest their money in order to get profit maintain this account.
Features:-
The minimum balance requirement for opening

the account is Rs.5000.
There can be profit or loss on the investment of

the Customer’s funds deposited with the bank and

this amount shall be acceptable to the Customer.
The profit is paid half yearly.
Deduction of Zakat
With holding tax on profit @ 10%
No Service Charges to close the account
Service Charges for maintaining minimum

Balance Rs.50
Online Charges Rs.150
On Friday, we were engaged in opening term deposit account

and make general point that term deposit is a deposit that is
made of a certain period of time. At the end of specific period the
customer is allowed to with draw the principal amount.
Features:-
Fixed Profit
Fri The longer the period for which the amount is

kept higher is rate of interest.
Term Deposit usually for the period of three

months, six months, One year, and five years.
Deduction of Zakat and withholding Tax @

10%.
Sat On Saturday, on special request of us we were taught the Joint

Account Opening Procedure.
Joint Account Opening Procedure involve following steps:
1. Title of Account:-
Title of account holder should mention the names of all the joint
account holders.

2. Special Instruction:-
At the time of opening the account clear and specific instructions

should be obtained regarding operation of the account and
payment of the balance at the death of one or more joint account
holders in the following manner:-
• The account shall be operated by any joint account

holders singly.
• By either or survivor singly
• By any two or more joint account holders or by any two or
more survivors jointly.
• By all the joint account holders jointly
• By all the survivors jointly.
These instructions as far as possible should be obtained in

handwriting of the parties concerned, under the signature of all
the joint account holders.
3. Documents:-
Computerized national Identity Card of all the joint account

holders.
4. Mode of Signature:-
All joint account holders are required to sign as applicant and in

the column of special instructions.
Specimen Signature of only those joint account holders are

required who are authorized to operate the account.

Mon Me and my two fellows began our day by starting work in cash
department. We were told that the cash department is the most
important department of the bank. It receives cash from
customers and then deposits it into the accounts of the
customers and maintained their balances.
The officers in this department are called teller and there were
four tellers at the counter. This department involves in two
activates:-
1. Deposit cash in customer’s account

2. Make payments from customer’s account
So that we will have to spend next days while playing a part in

these two activities.
Tuesday was belonged to activity named Deposit Cash In

Customer’s Account. This activity took place in following way:
When the customer want to deposit amount in his account at

opening of account or after that then he has to fill a deposit slip
Tue that shows the amount and the account in which the cash will be
deposited. Then teller will receive amount and credit the
customer’s account that shows increase in customer’s bank
account.
That day was spent for the activity known as Make Payments
From Customer’s Account. That activity has a very common
task:
Wed When the customer draws a cheque on the bank to pay a certain
amount then teller will debit the customer’s account that shows
reduction in his account balance.
Thu On Thursday, we were given briefing on the Account Deparment

of Habib Bank Limited. We were told that account department is
responsible to keep the record of each and every transaction
and prepare reports about the amount of deposits and advances
and sent to Head office or State Bank of Pakistan on monthly,
quarterly and yearly basis.
The accounts department deals with various routine activities for

the bank. The main activities performed by it are:-
a) Budgeting
b) Reporting
c) Maintenance & depreciation of fixed assets
d) Miscellaneous functions

On Friday, we were given brief explanation of two main activities
of account department. The explanation is mention below:
Budgeting
Accounts department of a bank, for a year makes budget of

every branch. Fiscal year of bank starts from January 01 and
ends on December 31. The accounts department starts
Fri preparing budget from October for the next year.
Reporting
The accounts department, in the form of reports, clubs the

details of various departments together. Each and every minute
detail is provided in weekly, monthly and annual reports. The
reports are submitted to head office, SBP and to the
government.
Sat Detail of other two activities of Account Department were given
on Saturday. The description of all that briefing is mention below:
Maintaining of Fixed Assets & their Depreciation
Accounts department maintains the record of all the assets and

charges depreciation on them. The bank normally uses the
straight-line method to compute the depreciation.
It is calculated on monthly basis and charged yearly. Bank not

only depreciates the existing assets but also the assets
transferred in and transferred out.
Miscellaneous Functions
The accounts department also performs some other

miscellaneous functions like
i. Closing Entries
ii. Daily activity checking

iii. Report Generation
iv. Minor expense recording

Mon Eid Holiday
Tue Eid Holiday
Wed Eid Holiday
Thu On Thursday, we started working in the credit department
observe how its activity took place specially when it comes to
provide loan to a customer to run business or to finance a car
from the bank.
On the same day, we had told the important things about the
Car Finance facility which are mentioned below:
Benefits and Features
• Quickest processing
• No hidden charges
• Minimum down payment
• Complete repayment at any point of time
• Balance transfer facility {BTF} for existing as well as new
clients from other Banks
• Tenure period ranging from 1 to 5 years.
• Financing of all brand new locally assembled vehicles
and used cars.
• Financing limit ranging b/w Rs. 200,000/- to Rs.
2000,000/- for brand new cars
Insurance
Renowned and reliable Insurance companies are offering the
competitive rates of Insurance. Pay year insurance premium in
advance { at the time of down payment } and remaining in the
subsequent equal monthly installment.
Repayment
Easily affordable installments on monthly basis in the form of
postdated cheques will set you free of depositing your rental
cheques every month.
Security
Hypothecation of vehicle in the name of the Habib Bank Limited.
Documents required
Two passport size photographs.
Copy of National ID card.
Bank statement for the last six months.
Salary certificate {for salaried individual}.
Business proof {for a business person}.
N.T.N Certificate.
Co borrower’s NIC copy {if the car is to be in the name of the co-
borrower}.
Eligibility
Yes you get a car loan form HBL to purchase a brand new car if
you are:
Pakistani National Identity Card holder.
Over 20 years of age (Maximum 60 years in case of salaried and
62 in case of a
business person at the time of maturity of the loan).
Salaried , Businessman or self employed .
Fri On Friday, we were told that a good financial system support

when officials of credit department invest money of depositors
into feasible projects by lending loans to various business
concerns.
In order to lend loan to business concerns, the client's position

regarding the financial and business performance concern is to
be evaluated.
Evaluation of client process has following steps:
i) Financial Statement Analysis

ii) Nature of Business to be Considered
iii) Bank References
iv) Plant Visit
v) Credit Rating
vi) Report From SBP
Once the client is being evaluated then bank will provide the
credit to the customer in any form demand by the client in the
credit line proposal form. In credit department of HBL, various
forms of credit are offered to different clients. Following are the
main forms of lending:
i) Cash Credit: In this form of lending, cash is required to keep as

a security. This form is less risky than others. Because bank is
fully equipped with cash.
ii) Running Finance: is most popular sort of credit facility given to

clients. This is mostly obtained for the purpose of working capital
requirements. Client can draw money even daily from the
account but not more than the limit
iii) Term Finance: This credit facility is also required for working
capital requirements. This is the same like running finance but
difference is that in this term finance, disbursement of amount is
in once a time.
iv) Purchase and Discounting of Bills: Bank purchases the bills

from its own client at lower value but when bills are discharged,
then amount received will be more than that purchased value.
This is mostly happened in case of export and import
transaction.
Saturday was the last day of my internship. On that day, Mr.

Asim (Bank Manager) appreciated me and my two fellows and
also admired our effort. We also thanked him for providing such
environment in which utilize our resources and skills in a right
way and without any pressure.
Sat
We also said Goodbye to the staff members who are very
respective and corporative.
We collected our internship completion letter and returned home.

3. LEARNING
3.1 DID I ACHIEVE MY GOALS?
To some extend I have achieved my goals. In order to achieve the goals mentioned in the Description of Internship section, I had
worked really hard and tried my best. And the reason behind all that hard work is that I was eager to grasp and pave my own path
towards excellence.
3.2 WAS THE INTERNSHIP DIFFERENT

FROM WHAT I HAVE EXPECTED?
Yes, my internship was totally different from what I have expected. Because student life
and practical life is totally different. Book knowledge is totally different from practical
knowledge and practical life pattern is totally changed and we cannot apply more book
knowledge in practical life.
Another difference is that I was facilitated by the support and patronage of our esteemed seniors, who provide due guidance and utilize
internees like us as an asset.
3.3 WHAT WERE UNUASUALL /

INTERESTING ABOUT MY INTERNSHIP?

The interesting thing about the internship is that I spent every week in different
departments. Because according to the Bank Managers “they didn’t want to make us
master one specific department.” And his works very well, we were not even feel bored
and overburden by the tasks given to us.
3.4 WHAT DID I LEARN FROM MY

INTERNSHIP?
The things I have learnt from the Internship are mentioned below:
i. I learnt the way how to deal with different customers at the different time.
ii. I learnt how the banking trend is changing in Pakistan and what new
improvements should be needed in order to make the banking sector more
attractive to the customers.
iii. I learnt that how bank’s different negotiable instruments are providing
benefits to their customers.
iv. I learnt that internship is the only way which will helpful for the Students in
improving the interpersonal, communication and professional skills. And also
helpful in increasing self confidence and self awareness.
v. I learnt that time management is really important asset for the Professionals
and Internees.
vi. I learnt that there is nothing difficult to do and to achieve.
vii. I learnt that in order to be successful in future, students like me should have to
start working hard from now, so that we will face less difficulty when we will
step in to the practical life.

4. SWOT ANALYSIS
HBL is considered to be a very sound bank in the financial circles. The bank where the
customers can safely keep their money as long as they want.
In SWOT analysis the best strategies accomplish in organization’s mission by:
1. Exploiting opportunities and strengths.
2. Neutralizing its threats and
3. Avoiding its weaknesses.
Following is the SWOT Analysis of HBL:

4.1 Strengths
 A skill or capability that enables HBL to conceive and implement its strategies.
 The officers of HBL are considered as one of the most able professionals in the
banking world.
 I observed that HBL employees interact with their clients as if they are their
personal friends and discuss about their problems as their own.
 HBL has got a reliable and easy to use internal computer system. Every
information regarding the transactions in customers’ deposits has been
computerized.
 HBL maintained its data properly.
 HBL has very good security system.
 HBL is the larger commercial bank in Pakistan with the network of over 1439
domestic and international branches.
 Being the pioneer of banking in Pakistan, HBL is the oldest and is the richest in
experience.
 HBL focuses on consumer banking by lucrative schemes, products and services
suiting best to the needs and demands of the customers.
 HBL has opened all its branches at commercial areas so that the customers or
clients face no problems in reaching to the bank.
 Human resources development and introduction of new technology towards
modern banking.
 24 hours cash access and safe payment products for high value transaction.
 Having potential to encounter the competitive environment in the market.
 Customer enjoys the services at the residential localities.

4.2 Weaknesses
 Highest number of branches effecting the proper maintenance and difficulty in
providing same working environment at the each branch
 Poorer system of recovery of the system is a threat to bankruptcy.
 Lack of customer feed back.
 Low job satisfaction.
 Poor ATM’s Service
 Inconsistency in efficiency and working atmosphere due to the largest of

branches.
 Sense of insecurity in the employees serving at low profitable branches due to the
down sizing.
 Less opportunity for the Females to get employment.
 Victim of political, legal and socio-cultural pressures
 Lack of professionalism in the branch employees mostly.
4.3 Opportunities
 Huge untapped market potential in consumer banking
 Opportunity for developing value added services combined with corporate
banking relationships, cash management services to large and medium sized
corporate clients.
 Growing policies of government on business and commerce sector provide HBL
opportunities to take advantages of these policies to meet efficiently with the
business people to solve their problems with the instant cash and financing
facilities.

 Government is taking very bold steps to promote IT in Pakistan. HBL has an
opportunity to introduce new technology.
 Large international network which principally focuses on trade finance with
Pakistan can be utilized to tap trade activities in other markets. In addition,
services such as cross border / offshore financing for corporate customers can be
enhanced.
 Customer feedback on different products and accounts can enhance the bank
performance and also can encourage the atmosphere for other future policies.
 HBL also has an opportunity to expand its new technological advancement like;
internet banking facilities and ordering cheque facilities in order to serve the
customer more efficiently, specially
 Further reduction in intermediation costs possible, with improving technology.
 With the efficient and veteran management group, HBL can also improve and
expand its foreign operation successfully.
 Habib Bank Limited has an opportunity in order to utilize its skills and
efficiencies in leasing business.
4.4 Threats
 Political Instability of Pakistan.
 Consolidation in the banking sector resulting in increased competition.
 Shortage of skilled and specialized staff in the Banking Sector of Pakistan

 Inconsistency of government policy
 Growing global technological advancement.
 Strict regulation by government over credit facilities to the customers as Ill as to
meet the prudential.
 Loss of confidence of overseas customers due to freezing of accounts.

 Facing more competition by foreign banks in the market like Barclays and
Citibank.
 Increasing operation of private banks.
 Highly attractive and advance services by other banks like UBL and Bank Al-
Falah to their customers.
5. Conclusion
Working for a bank is a good experience especially when it comes to the point to learn
something and to have broad understanding of the different area’s. I spent almost 8 weeks
in the bank and come to know that bank as an institution seems simple but its working is
really a challenging one because a bank not only has to satisfy its customers but also has
to provide services which are to be considered as unique and superior from all of its
competitors.
A banking sector of Pakistan is toward the way of forming as a digital firm because it has
digitalized most of its major operations. That is why the future of Pakistan’s banking
sector seems bright and their systems are capable to face the challenges will be resulted
from the future innovations and creativity.
6. SUGGESTIONS
 The management of HBL should have to decrease job insecurity among the
employees.
 Training program should be started for internees and newly appointed employees.
 The number of employees should be increased in order to decrease the workload.
 The bank charge high service charges as compared to the other banks, so these
should be lowered down.

 Surveys Should be conducted regarding customer satisfaction level and all
employees of this department should look forward in getting feedback whenever
possible.
 Adding of value added features that offer competitive advantage is also a means
of avoiding customer dissatisfaction.
 Quick response to customer queries is necessary to maintain a healthy relationship
with the customer.
 Proper training of customer handling should be given to employees. Training

workshops and coaching clinics should be considered as an option that would
provide adequate results.
 In order to grasp the audience, HBL should have to increase its advertising
budget.
 In order to compete with other banks, HBL should have to provide ATM services
throughout the country as this service is becoming popular among the bank
customers.
 HBL Data Recovery System should be improved.
 Employees Training program should be introduced on continuous basis.
 In planning compensation and benefits plan for the employees, the factors like
employee’s qualification, work experience and effort must be considered.
 HBL recruitment need some changes because they only recruit people putting
emphasis on internal sources not on internal.
 HBL should have to introduce interest free banking system on the basis of pure
Islamic banking in order to attract people who are against interest. So by doing
that they will have a great chance of increasing the market share as well as the
number of customers.

7. APPENDICES

Habib Bank Intership Report by Junaid Javaid

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INTERNSHIP REPORT

HABIB BANK LIMITED

Supervised by: Mr. Asim Ali

Prepared By: Junaid Javaid

Date of Submission: 12-OCT-2009

Final Internship Report 1 GIFT University

All respects are for His “Holy Prophet Hazrat Muhammad”

My Parents whose rising gave me character and a compassionate heart.

Final Internship Report 2 GIFT University

Final Internship Report 3 GIFT University

6. SUGGESTIONS ….. .……………….. 33

Final Internship Report 4 GIFT University

Final Internship Report 5 GIFT University

1.4 OBJECTIVES OF HBL

1.5 SYMBOL OF HBL

1.6 CORE VALUES OF HBL

Final Internship Report 6 GIFT University

1.6.5. Culture of Innovation

Final Internship Report 7 GIFT University

• To gain a practical experience and shaping a good future for myself.

Final Internship Report 8 GIFT University

I started my practical training by following Departments:

• Clearing From 10 August 2009 to 15 August 2009

Final Internship Report 9 GIFT University

Final Internship Report 10 GIFT University

On that day, Mr. Asim gave us an overview of HBL

1) International Operations Group

Final Internship Report 11 GIFT University

Description of activities from 10 Aug to 15 Aug

Final Internship Report 12 GIFT University

I carried on my routine task in the clearing department and also

Description of activities from 17 Aug to 22 Aug

Description of activities from 24 Aug to 29 Aug

On Wednesday we extended our responsibility and also used to

We carried on working in the Bill Department. On that day, Mr.

2. Outward Bills for Collection (OBC)

The process of collection starts when the cheques of Habib Bank

Sat Saturday was devoted to the explanation of OBC. According to

Final Internship Report 15 GIFT University

Description of activities from 31 Aug to 05 Sep

“Remittance is transfer of funds from one place to another or

A Remittance is an important service provided by banks to

Instruments used in remittances:

• Demand Draft (DD)

We had to spend the upcoming days while working on each

Final Internship Report 16 GIFT University

We had drawn some Demand Drafts. Came to know that

Process of the issuance of DD:

Use of Pay Order:

Pay orders are used to make payment or to transfer money, with

Process of issuance of Pay Order:

1. Cash Deposited or gives Cheque in favor of HBL.

7. Other Copy is for Filing Purpose.

Use of Pay Slip:

Process of the Issuance of pay slip:

If bank has purchased furniture (fixed Asset) costing Rs. 40,000

Procedure of Making Telegraphic Transfer:

This type of transfer is simple. After filling the application form,

The current rate schedule of DD is as follows:-

Final Internship Report 18 GIFT University

Which ever is higher

Rs.10,001 to Rs. 100,000 0.20% or Rs.40

Which ever is higher