HABIN BANK LIMITED

INTERNSHIP REPORT
SALMAN AHMAD
BS (BA)
REG # 100

Company name
HABIB BANK LIMITED
KHAYABAN E SIR SYED BRANCH
RAWAPINDI

STARTED DATE: 03-07-2009

END DATE: 12-9-2009

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TABLE OF CONTENTS
PAGE TITLE PAGE NUMBERS
Executive summary 3
Chapter # 1 4
1. INTRODUCTION 4
1.1. Company Background (History) 4
1.2. Objectives 5
1.3. Organizational Structure 5
1.3.1. Structure of HBL 6
1.3.2. Organizational Chart of HBL 7
1.3.3. Organizational Chart 7
1.3.4. Analysis of Organizational 8
Structure
1.3.4.1.Centralized Decision Making 8
1.3.4.2.Downward Communication 8
1.3.4.3. Chain of Command 8
1.3.4.4. Authority and Responsibility 9
1.3.4.5. Delegation 9
1.4. Products Offered by HBL: 9
1.4.2. Product/Service Details (A) 9
1.4.2. Product/Service Details (B) 9
CHAPTER # 2
2. LEARNING AND EXPERIENCE 12
2.1. Internship Duration And Rationale 12
For selection
2.2. Details of Training 12
2.2.1.Filling of an Account Opening form 12
2.2.2.Remittance Department 12
2.2.3. Demand Draft 13
2.2.4. Pay Order 13
2.3. SWOT Analysis of the Organization 14
2.4. RECOMMENDATIONS 17
Conclusion 18
References 19
Appendix 20
Acknowledgements 21

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Executive Summary:

We are suppose to do internship anytime after the fifth semester of

BS(BA). It is so because it helps us to understand the practical implementation
of basic business, finance, HR and marketing related issues. I have applied for
the internship after the sixth semester during the summer break and got it in 15
days. It was a very nice experience to work on a workplace first time in my life
and got a good time while experiencing the comparison of studying and its
practical implementation. And what ever I have taught in the duration of my
internship I have written it word to word in that report. It starts with a brief
background of HBL. Its key objectives are mentioned. Its organizational
structure is explained. After that its products and services are mentioned. Then
I have made a very comprehensive glance of what I have learned during my
internship in HBL. I follow that with the SWOT analysis and
recommendations. In the end I have concluded my all experience regarding
internship in HBL and about writing that report.

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CHAPTER # 1
1. Introduction
HBL was the first commercial bank to be established in Pakistan in 1947. Since then,
it has progressed to a great deal and now has 0ver 1500 branches. .Not only this but is
also present in 25 other countries as well and occupying the status of largest domestic
multinational of the country.

Vision

Enabling people to advance with confidence and success.

Mission

To make our customers prosper, our staff excel and create value for shareholders.

1.1. Company Background (History):

The first branch of HBL started functioning on 30th August, 1941 at Muhammad Ali
Road Bombay, where Quaid-e-Azam Muhammad Ali Jinnah first of all opened his
personal account. In 1942, on the desire of Quaid-e-Azam, Habib family migrated to
Pakistan and later on shifted the Bank's Head Office from Bombay to Karachi on 7 th
August, 1947 just one week prior to independence, to play its pivotal role in the
development of this newly born country.
At the time of independence, the areas which now constitute Pakistan were producing
only agricultural products raw material for indo-Pak subcontinent. Partially no
industries were there to process the raw material, therefore the raw material was
exported from Pakistan. There were 19 non-Indian foreign Banks which were engaged
in the export of crops from Pakistan with only two Pakistani Banks i.e. HBL and the
Australia Bank.
At a time when this newly born country was at whirlwind of crises, it was HBL which
fulfilled generously the financial needs of all its sectors, paid salaries to the
employees of all Govt. departments, helped in the establishment of State Bank of
Pakistan which the Quaid-e-Azam inaugurated on July 1st, 1948. HBL after partition

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opened its branches throughout Pakistan to provide finance and other facilities to the
business community. In association with HBL, the Govt. sponsored Pakistan Finance
Corporation Limited for financing of cotton. The Bank helped handsomely in the
construction of WARSAK DAM PROJECT, WAPDA, & K.D.A. by provided finance
and other facilities.
Another innovation introduced by HBL is the evening Banking cash long after the
crossing of normal Banking hours. It was also the first in making available such new
facilities as Gift Cheques, Rupee Traveler’s Cheques, Credit Card System, short term
and long term schemes for small businessmen.

1.2. Objectives:
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.

1.3. Organizational Structure:

A well-developed and properly coordinate structure is an important requirement for
the success of any organization. It provides the basic framework within which
functions and procedures are performed. Any organization needs a structure, which
provides a framework for successful operations. The operation of an organization
involves a number of activities, which are related to decision making, and
communication of these decisions. These activities must be well coordinated so that
the goals of the organization are achieved successfully.

1.3.1. Structure of HBL:

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 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.

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Overseas operations consist of 65 main branches, two affiliates, two representative

offices and two subsidiaries.
President, from Head Office at Karachi controls the officers of the Bank with the help
of the senior management. 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

In addition to the overall controlling authority, president also manages the

International Operations Group individually. While the Senior Executive Vice
Presidents supervise rest of the functional groups. Each Senior Executive Vice
President is individually responsible for the group which is assigned to him.
At the level of provinces there are Regional Head Quarters headed by Regional Chief
Executives (RCE). Each RCE is assisted by GM operations and GM Support Services.
Branches are also controlled by the RCEs. Circle Offices of the past times have been
removed to reduce Managerial Layers, which were working under the control of
Zonal Offices. This happened as a result of policy of beginning new changes in the
organizational structure.

1.3.2. Organizational Chart of HBL:

A chart defines the line of authority in an organization and its departmentation. It is a
sort of visual presentation of the organizational structure. It specifies the duties and
responsibilities of the personnel of the organization. The Organizational chart of HBL
is given below.

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1.3.3. Organizational Chart:

Chairman

President

Board of Directors

SEVP SEVP Finance, Audit &

International Operations Administration

SEVP Corporate Banking SEVP Asset Remedial

& Treasury Management

SEVP Retail Banking &

SEVP Credit Policy
Information Technology

SEVP Corporate Banking,

financial institute & Project
Finance

1.3.4. Analysis of Organizational Structure:

The purpose of an organizational structure is to help in creating an environment for

human performance. It is then, a management tool and not an end in its own.
Although the structure must define the task to be done, the rules so established must
also be designed in the light of abilities and motivation of the human recourse

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available. By analyzing the organizational structure of HBL presence of the following

elements can be found in its structure.

1.3.4.1. Centralized Decision Making

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.

1.3.4.2. Downward Communication

Communication is the process by which information is exchanged and understood by

two or more people, usually with the interest to motivate or influence the behavior of
others in the organization. Downward communication is the message and information
sent from top management to subordinates in a downward direction. Managers can
communicate downward to the employees through speeches, massages in company
publications, information leaflets, tucked into pay envelops material on bulletin
boards, policy and procedure mandates.

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.

1.3.4.3. 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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1.3.4.4. Authority and Responsibility

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.

1.3.4.5. 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

1.4.Products Offered by HBL:

1.4.1. Product/Service Details (A)

Rupee Traveler’s Cheques It was introduced in 1957. Here the customers are
provided the facility of encashment of their traveler’s cheques through any
branch of the Bank.

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Small Factory Owner Scheme In 1959 the Bank offered loans to small scale
producers under the “small factory owner scheme” in order to boost the
economy of Pakistan.

School Banking This scheme was introduced in 1962 to provide Banking services to
children in a number of schools though out the country.

Mobile Banking It was introduced in 1962. The feature of this scheme is to provide
Banking services to the customers residing in the rural areas.

Computer accounts In 1962 the Bank introduced computer accounts through which
most of the accounts in head office were computerized.

Credit card scheme It was introduced in 1966 through which customers could get
certain sum of money from specified branches. Many business organizations
accepted payments through valid credit cards.

Gold card system In 1991 HBL introduced the scheme with the features of offering
card holders to get up to Rs. 10,000 at a time.

1.4.2. Product/Service Details (B)

1. House Finance
HBL provides the facility of house finance:
Financing available for:
1. Purchase of house
2. Home improvement and renovation
3. Self Construction
Some characteristics of House Finance of HBL Are:
• Lowest marl-Ups leading to affordable monthly installments
• 5 years fixed Rates/ one year Floating Rate available.

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• Lowest processing charges

• Financing tenures ranging from 3 to 20years.
• Financing limits of up to Rs. 7.5 million (Rs. 3.0 million for Home
Improvement/Renovation)
 Quick Processing

2. Auto Finance
Habib Bank Auto Finance, a lease product, designed to offer you an economical
way
for owing the car of your choice.
• Some characteristics are:
• Lowest Down Payment
• Lowest monthly rentals
• Fixed repayment tenures of 36,48and 60 months.
• Lowest Processing charges
• Insurance premium rates as low as 3%
• World wide personal accidental insurance coverage of up to Rs. 200,000.
• All locally assembled new cars can be financed through this scheme.

3. For Credit Card Payments

• Maximum loan up to Rs.1,000,000

• Lowest mark-up-compared to any credit card
• Choice of 12,24,36,48 and 60 months for payback
• Quick processing
• Full Credit Life insurance
• Available from over 400 designated branches throughout Pakistan

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CHAPTER # 2
2. LEARNING AND EXPERIENCE:

2.1. Internship Duration And Rationale For selection:

I started my internship at HBL Kheyabana-e-Sir Syed road branch.
It is not a very big or heavy branch. It has just been opened last year. I have started
my internship in the first week of august and it lasted till 13th September. The total
duration was of 6 weeks. There were only a branch manager an operation manager
and a single cashier as it was just a new branch. In the beginning, the branch manager
told me to use the software i.e. HBL DOM, to help him to enter the entries in it, to
make the accounts online as this branch was online. For the first two weeks I have
been through this. Than I was sent to the operation manager and he learnt me to
handle the transactions related to transfer of funds i.e. Tot's and to deposit the cash
and to cash the Cheque. I worked with operation manager for two weeks. And in the
final two weeks I worked either the cashier and he learnt that how to balance or
closing at the end of the day.

2.2. Details of Training:

2.2.1. Filling of an Account Opening form

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.

2.2.2. Remittance Department

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:

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a. Inward remittances
Inward remittances refer to payment in favor of the banks account holders inward
remittance includes all Cheque received for collection.

b. 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.

2.2.3. Demand Draft

This draft is made for the customer. This mode of remittance is normally used for
payment to out of city beneficiaries. They are normally also drawn on banks near the
beneficiary’s residence.

2.2.4. Pay Order

Pay orders are mostly used when a customer wants to pay someone who is in the same
city as he uses and who prefers non cash payment for any service or goods that he/she
sold. This remittance facility is providing to the general public as a whole.

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2.3. SWOT ANALYSIS OF THE ORGANIZATION:

The SWOT analysis stands for firm's internal strengths and weaknesses and its
external opportunities and threats. The purpose of such analysis is judge company's
strengths and exploits its opportunities and to counter threats to tackle with the
weaknesses.

Strengths:

• HBL is a leading privet sector with many branches with most of them online
in major cities of the country.

• The transactions are highly automated that it gives assuerty to customers that
they are highly reliable, efficient and secure.

• Also has the potential to encounter the competitive environment in the market.

• The products and services designed are in direct relation with the individual
customer needs.

• Phone banking services is very attractive for those who don't have got the time
to go to bank.

• HBL is very efficient in managing costs as it has successfully restructured

itself after its privatization.

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Weaknesses:

• Even having the computerized banking system, the bankers are still using the
registers for entries.

• Lack of professional employees in the branch.

• Poor system of recovery of the system.

• No specific training based programs.

• Pressure not only on the leaner but also on the responsibility holder as well.

• Continuous rotation of employees from their job.

Opportunities:

A large amount of foreign investment is attracted.

• Strong potential for growth

• Opportunity for adding value added services with corporate banking

relationships

• E-banking facility is also new opportunity which is a flourishing business in

advanced countries.

• Large number of branches to remote areas.

• HBL provides opportunities to utilize the skills and efficiencies in leasing

business.

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Threats:

The fees that the bank charges on various services it provides is extremely high.

Shortage of trained and specialized staff at lower executive and officers level.

Facing more competition by foreign banks in the market.

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2.4. RECOMMENDATIONS:

• Bank should make a plan to gear up its recovery efforts on war footing and
reorganize the recovery function of global bases. In addition, bank should
tighten up control on expenditure

• To save the time of the customers and other clients, bank should adopt
computerized system for book keeping and other filling systems. It will
increase the efficiency of the bank. I know that there are some branches which
are computerized but most of the branches in various cities of the country are
not computerized. So the bank should mechanize all its branches in the
country.

• Bank should launch advertising campaigns through out the year to promote the
habits of savings in the people. Bank should open more branches in the remote
areas of the country to get deposits and idle resources. Bank should provide
similar facilities to all its branches in big cities. The standard of service and
other facilities are far better as compared to smaller cities.

• There are some clients having sound and successful plan but without
financially sound and providing securities bank should firms such policies that
may solve this problem.

• I observed that many branches of NBP are over crowded. Less people can
work which extra people perform. Number of employees should decrease or
new branches should opens for the adjustment of these extra employees.

• There is too much dependence on handwork and they are not getting at with
computer programmed. All the branches of NBP should be computerized.

• There are some employees untrained which decreases the efficiency of the
bank branch. All the employees should well trained.

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Conclusion:
Habib bank is one of the largest bank of Pakistan. It is under the supervision of one of the
largest group of companies of Pakistan. Its network is so vast, and its market is so much high
that even after its privatization it has able to enable its stability and growth. It is the best bank
of Pakistan but today’s success is not grantee of the future because there is dynamic situation

in the world and also in the banking sector of Pakistan. There is so much competition in
the banking sector which will create the hurdles of the progress freely in that
sector and also for the national bank of Pakistan. So in future if they maintain
there position so they have to improve their services and also the layout of the
different branches.

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References:

http://www.habibbankltd.com/index.php
www.corporateinformation.com/Company-Snapshot.aspx
www.linkedin.com/companies/habib-bank-limited

:Appendix

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HBL Habib Bank Limited

K.D.A Karachi Development Authority
RCE Regional Chief Executives
SEVP Senior Executive Vice President
HBL DOM It’s a software that they use foe online
banking
SWOT Strengths, weaknesses, opportunities and
threats.

Acknowledgements:
I am very thanks to Allah that who permitted me to train in the world, HBL, as to
learn more in very short period of time.

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I am very thankful to the energetic staff of the HBL who motivates me and teach me
to stand in the working people. They help me in various situations related to my
internship. So they help me to understand the work and to handle different situations.

I also want to thanks the manager of the branch who also supports me in the different
periods of time during my internship to the HBL.

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