53187895 internship report on habib bank limited

8/13/2019 53187895 Internship Report on Habib Bank Limited

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Habib Bank Ltd. Internship

Report, 2010

Executive Summary

Department of Management Sciences demands every student of BBA/MBA program

to go a procedure of 4 to 6 weeks internship course and to present the report based

on the observations and work done during the training practice. t is actua!!y the

appraisa! of any organi"ation current!y running its business# having its competitors. t

is a!so meant for discovering the weaknesses and shortcomings and then giving the

suggestions for perfection.

have fu!fi!!ed my eight weeks internship at $abib Bank %imited# &he s!amia

'niversity Branch Bahawa!pur and tried my !eve! best to achieve something sensib!y

from this opportunity.

n my internship opened many accounts of the customers( most of them were the

emp!oyees of &he s!amia 'niversity. a!so did a !ot of work on the pension and

sa!ary days. As there is a bunch of crowd on these days so he!ped the staff of thebank by fi!!ing out the pension forms and then recording the entries in the register of

the )ension *ecords. n this way we winded up the work +uick!y and in !ess time.

Department of Management Sciences demands every student of BBA/MBA program

to go a procedure of 4 to 6 weeks internship course and to present the report based

on the observations and work done during the training practice. t is actua!!y the

appraisa! of any organi"ation current!y running its business# having its competitors. t

is a!so meant for discovering the weaknesses and shortcomings and then giving the

suggestions for perfection.

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have fu!fi!!ed my eight weeks internship at $abib Bank %imited# &he s!amia

'niversity Branch Bahawa!pur and tried my !eve! best to achieve something sensib!y

from this opportunity.

&his internship report starts from the introduction on word ,BA--0 and then

history of $abib Bank %imited of )akistan i.e. how it he!ped the nation and country in

any way.

Bank mission and vision statement shows that it focuses on overa!! performance of

bank and +ua!ity of service and products.

&he main ob1ective of the bank is to rea!i"e the rea! importance of its customers and

is profit2oriented.

A bank performs basic functions that are3

Accept money as deposit

nvesting deposits to earn profit

Misce!!aneous functions

ach branch of the bank is divided into different

sections on the basis of these basic functions.

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Deposit Section opens different accounts of c!ients and maintains record of

money deposits from the customer and credited it into his account. t a!so maintainsrecord of payment to the customer when he presents che+ue.

Remittance and Collection Section dea!s with customers who want to

transfer or co!!ect their money from other city.

Clearance Departmentdea!s with the c!earance of che+ues of other banks and

a!so the che+ues can be c!eared at any branch of bank.

have a!so given the S5& Ana!ysis of $B% which shows that the bank as many

Strengths and 5eaknesses and a!so with many pportunities there are numerous

&hreats as we!!.

After this have suggested and recommended how bank can improve its working and

f!ourish.

a!so faced some cha!!enges and prob!ems before# during and after my internship in

the bank which have added in the report

n the end have given conc!usion of the entire report.

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IINTRODUCTIONNTRODUCTIONOFOFOORGANIATIONRGANIATION

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!"at is #an$%

Bankis an institution which revives money from one party and lends to

another party.

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&here are different views about origin of the word 7Bank8. According to some peop!e

the word 7Bank8 is derived from the wor!d 7Bancus8 which means a 7Bench8. &hey

argue their point by this transacted their business of money e9change on the

benches. f the business of any businessman fai!ed# his bench was destroyed by the

peop!e. Due to this practice the word 7Bankrupt8 was a!so used.

n the other hand some peop!e say that the wor!d 7Bank8 is derived from erman

time the word 7Bank8 was rep!aced by the word 7Bank8 which is ca!!ed 7Banco8

in ta!ian !anguage.

T"e &an$ can &e de'ined as a ('inancial institution t"at &orro)s money 'rom

one party and lends to t"e ot"er party *Government+ individual+

&usiness, and t"e di''erence &et)een &orro)in- and lendin- ma$e pro'it

'or t"e &an$./

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n Simp!e words we can a!so say that bank is a pipe!ine through which money moves

into and out of circu!ation. Bank accepts deposits and repays cash to its

customers on demand. &he bank borrows money at a !esser rate of interest

and !ends it to the borrower at a higher rate.

&he history of banking evo!ution is very interesting. n the ear!y ages human !ike and

wea!th was not secure. Due to fear of !oot2mar and theft peop!e buried their

wea!th under !and but this method was not satisfied. )eop!e started to search

the custodians of wea!th. &he evo!ution of banking started and it has crossed

the many stages.

!"y #an$ is important%

Bank p!ays a significant part in the economic e9istence of nation. &he growth of

economy is strong!y re!ated to the re!iabi!ity of its banking system. A!though

banks create no new money but they borrow# e9change and use wea!th. n

this way they become very va!uab!e partners in the process of economic

deve!opment.

&he fundamenta! ro!e of bank is to persuade the habit of savings among the peop!e

and to activate these savings for investment purposes. Banks serve in capita!

formation.

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f there are no banks then there wou!d be concentration of capita! in few hands and

the great fraction of capita! of the country wou!d remain inactive.

%oan faci!ity provided by the bank works as an encouragement to the produce to

increase production. Banks offer transfer of payment faci!ity# which is cheaper#

+uicker and safe. &hese faci!ities are very much accommodating for the

deve!opment of commerce and trade.

Types o' #an$s

Banks are c!assified according to their fie!d of activity( the main types of banks are as

under.

:ommercia! banks

ndustria! banks.

Agricu!tura! banks

Saving banks.

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9change banks.

:entra! banks

:ooperative bank

Commercial #an$

:ommercia! bank is occupied in performing the routine duties of banking business.

Such bank co!!ects the money from the peop!e ;as borrowing< and e9tends the same

money as a !oan for deve!opment purposes.

: o m m e rc i a ! b a n k s a r e h a v i ng p r o f i t e a r n i n g c o n c e rn s . & h e y

r e ce i ve d e po s i t s a n d a d va n ce ! o an s t o t h e b o r r o we r s . & h ey

g r e a t ! y h e ! p i n f i n a n c i n g f o r i n t e r n a ! a n d e 9 t e r n a ! t r a d e o f t h e

c o u n t r y

So we can say that commercia! banks are companies 7which transact business of

banking in )akistan8. :ommercia! banks have constituted the most important source

of institutiona! credit in the economy of )akistan. 9 a m p ! e o f c o m m e r c i a !

b a n k s i n ) a k i s t a n i s $ B % # ' B % e t c .

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F u n c t i o n s o ' C o m m e r c i a l # a n $ s 0

& od ay t he re a re m or e t ha n = >> > b ra nc he s o f c om m er c i a !

b a nk s a ! on g w i th a n e s ta b ! i s h ed n e tw or k o f s u pp ! em e nt a r y

f i n a n c i a ! i n s t i t u t i o n s .

& he f un c t i on o f a m od er n c om m er c i a ! b an k c an b e d i vi d ed

u n d e r f o u r h e a d i n g s a s 3

A c c e p t a n c e o f d e p o s i t s

A d v a n c e m e n t o f ! o a n s

A g e n c y s e r v i c e

e n e r a ! u t i ! i t y S e r v i c e

1istory o' &an$in- in 2a$istan

At the time of independence# there were 4?= offices of schedu!ed banks in the

territories now constituting )akistan. @o!!owing the announcement of independence

p!an in une C4=# the $indus residing in the territories now comprising )akistan

started transferring their registered offices in )akistan# transferred them to ndia in

order to bring a co!!apse of the new state. By > thune C4?# the number of offices of

schedu!ed banks in )akistan dec!ined from 4?= to on!y CE.

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#AN3ING IN 2A3ISTAN

)akistan has indeed uni+ue banking

history commencing as were from

scratch at the time of )akistan of this

subcontinent. $owever it soon comes

over its e9tra ordinary banking

prob!ems and by grace of A!!ah we

have a stab!e banking sector.

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1 ISTOR4 OF 1A#I# #AN3 5 I6ITED

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1a&i& #an$ 5imited

1a&i& #an$ 5imitedcommon!y referred to as F1#5F and head2+uartered in $abib

Bank )!a"a# arachi# )akistan# is the !argest bank in )akistan. &he bank has a

network of over 4E> branches in )akistan and EE branches wor!dwide. t has a

domestic market share of over 4>G. t continues to dominate the commercia!

banking sector with a ma1or market share in inward foreign remittances ;EEG< and

!oans to sma!! industries# traders and farmers.

Mohammed A!i innah# )akistanHs founding father#

rea!i"ed the importance of financia! intermediation whi!e

he was campaigning for the creation of a separate

home!and for the Mus!ims of ndia. $e persuaded the

$abib fami!y to estab!ish a commercia! bank that cou!d serve the ndian Mus!im

community. $is initiative resu!ted in the creation of $abib Bank in C4# with $ in

Bombay ;now Mumbai>> rupees. &he bank p!ayed an

important ro!e in mobi!i"ing funds from the Mus!im community to finance the A!!2ndia

Mus!im %eagueHs campaign for the estab!ishment of )akistan. $abib Bank a!so

p!ayed an important ro!e in channe!ing re!ief funds to Mus!ims hurt in the communa!

riots and vio!ence that preceded the departure of the British from ndia.

After )akistan was born in C4=# $abib Bank# at the urging of overnor2enera!

innah# moved its head+uarters to arachi# )akistanHs first capita!. &his gave arachi

its first commercia! bank of the new!y formed )akistan. &he $abib fami!y owned and

managed the bank unti! the )akistan government nationa!i"ed it on anuary C=4.

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$B%0s first internationa! branch was estab!ished in :o!ombo# Sri %anka in CE and

$abib Bank )!a"a was bui!t in C=I to commemorate the bank0s IE thAnniversary.

n une # I>>I )akistan0s )rivati"ation :ommission announced that the

overnment of )akistan had forma!!y granted the A-"a 3"an Fund 'or Economic

Development *A3FED, rights to EG of the shareho!ding in $B%# against an

investment of )* II.4>C bi!!ion ;'SD ?C mi!!ion4#management contro! was handed over to A@D. &he Board of Directors was

reconstituted to have four A@D nominees# inc!uding the :hairman and the

)resident/: and three overnment of )akistan nominees.

t was $B% that introduced products such as :redit :ards# A&Ms# &rave!ers

:he+ues# etc.# to the )akistani market. &oday# $abib Bank is tru!y the bank of the

peop!e# providing its customers convenience and satisfaction a!! over the wor!d. $B%

p!ays a centra! ro!e in )akistanHs financia! and economic deve!opment.

$abib Bank )!a"a# the ta!!est bui!ding in )akistan# is the proud symbo! of $B%0s

!eadership in )akistan0s corporate arena.

$abib Bank offers the basic range of banking services to its customers# to inc!ude

:ommercia!# :orporate# nvestment# and *etai! Banking# &reasury# and s!amic

Banking. t has more than 4?C branches a!! over )akistan and presence in I6

countries across five continents. 5ith a revamped customer oriented phi!osophy# we

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are pursuing new avenues of !eadership through innovation# as it gear up to face the

cha!!enges of the new mi!!ennium.

7ISION+ 6ISSION8 7A5UES

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7ision o' 1#57ision o' 1#5

7 7nab!ing peop!e to progress with a confidence and success.8nab!ing peop!e to progress with a confidence and success.8

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6ission o' 1#56ission o' 1#5

7&o be recogni"ed as the !eading financia! institution of )akistan and a

vibrant internationa! bank in the promising markets# providing our

customers with a best set of origina! products and services# and granting

superior va!ues to our stakeho!ders J shareho!ders# customers and

emp!oyees.8

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Core 7alues

$B% is abso!ute!y trapped with a business phi!osophy that incorporate five concrete

va!ues which each individua! associated with the bank abides by. ur va!ues are the

fundamenta! princip!es that define our cu!ture and are brought to in our !ife in our

attitudes and behavior. t is our va!ues that make us uni+ue and unmistakab!e. urva!ues are defined be!ow3

9, Excellence

&his is at the core of everything we do. &he markets in which we operate are

becoming increasing!y competitive# giving our customers an abundance of choice.

n!y through being the very best 2 in terms of the service we offer# our products and

premises 2 can we hope to be successfu! and grow.

:, Inte-rity

@or us# integrity means a synergic approach towards abiding our core va!ues. 'nited

with the force of shared va!ues and integrity# we form a network of a we!!2integrated

team.

;, 6eritocracy

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At every !eve!# from se!ection to advancement# we have designed a consistent

system of human resource practices# based on ob1ective criteria throughout a!! the

!ayers of the organi"ation. $B% is therefore# ab!e to achieve a specific !eve! of

performance at every !ayer of the organi"ation.

ectives

&he bank0s main aim is to provide better and efficient services to its domestic and

efficient customers and overseas customer regarding the need for improving the

financia! performance of the company.

-e9t are some of the main ob1ectives of $B%.

K &o get profit for the Bank itse!f and ma9imi"e its shareho!der0s va!ue.

K &o offer so!utions for mu!tip!e re+uirements of c!ients of assorted financia! nature.

K &o cope with the changing trends of the modern day financia! market.

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K &o be a diversified bank by offering a!! basic consumer services a!ong with

specia!i"ed services

K $onest and ethica! conduct# inc!uding ethica! hand!ing of actua! or apparent

conf!icts of interest between persona! and professiona! re!ationship.

K &o provide emp!oyment opportunities to peop!e.

K &o he!p in deve!opment and industria!i"ation of the country

ORGANIATIONSTRUCTURE

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Domestic Structure

5ith a domestic system of 4>? trade branches and = business branches which are

we!! !ocated in a!! cities and towns of the country# the bank provides the entire

banking services counting consumer and corporate finances# !easing# investment and

money market transactions etc.

International Structure

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&hrough its E overseas offices inc!uding branches# !oca!!y inc!uded subsidiaries and

1oint ventures# the bank has internationa! presence in I6 countries encompassing the

'nited ingdom# :ontinenta! urope# the Midd!e ast# Southeast and @ar ast Asia#

Africa# Austra!ia# and the 'nited States. Besides providing banking services to the

emigrants )akistanis# these offices a!so he!p out in deve!oping !inkages between

)akistan and the internationa! financia! set2up.

Operational Structure

$B% is among the principa! commercia! bank of )akistan. t accounts for a

considerab!e share ;4>G< of the entire commercia! banking market in )akistan with a

set2up of #=>E domestic branches( EE overseas branches in I6 countries e9tend

over urope# the Midd!e ast# @ar ast# Asia# Africa and the 'nited States( $B%

who!!y owned subsidiaries e9p!icit!y $abib Bank @inancia! Services ;pvt< %td.

;arachiG


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:onsists of business customers and savings banking# inc!udes advices and

p!acements to commercia! mergers and ac+uisitions# underwriting# privati"ations# and

securiti"ations.

O)ners"ip Structure

$B% operated under overnment possession from C=42I>>4. After privati"ation in

I>>4# EG of the bank0s shares were purchased by the Agha han @und for

conomic Deve!opment# an organi"ation of the Agha han Deve!opment -etwork.&he administration of )akistan is e9pected to s!ow!y strip its remaining 4CG shares in

the bank.

#usiness Se-ments

A segment is a noticeab!e constituent of the bank that is occupied in providing

product or service ;business segment


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)akistan

Asia )acific ;inc!uding South Asia>6. &his

may occurred because of more debt financing in I>>6 as compare to years I>>= to

I>>C which resu!ted in dec!ining of net profit and rising of interest cost.

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:. Return on E?uity0

FOR6U5A0 Net 2ro'it B E?uity9

4ear := : : : :H

ROE :E and I>>6 * is very high which indicates that the more efficient

management is uti!i"ing the e+uity base and is giving a better return to its investors.

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5hi!e in the years I>>= and onwards * is decreasing this happened may be due

to increased issuance of !ong2term debts.

;. Advances to Deposits0

FOR6U5A0 Advances B Deposits

4ear := : : : :H

Advances

to deposit

;.; .99 9.H; .>E to I>>C. &his

shows that the advances of the bank decreased but on the other side bank deposits

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increased. 5hi!e in year I>>6 and I>>? the advances of bank increased and

deposits of bank decreased.

>6 toonwards this ratio increased to C.64G in I>>C showing better financia! and

profitabi!ity position of the bank as appro9imate!y a!! of the !ong term capita! is e+uity.

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=. Deposits to total 5ia&ility0

FOR6U5A0 Total deposits B 5ia&ilities

4ear := : : : :HDeposits to

lia&ility

.= =.: =. .; .

83.00%

84.00%

85.00%

86.00%

87.00%

88.00%

89.00%

2005 2006 2007 2008 2009

Years

Interpretation0

&his ratio shows the re!ation between the tota! deposits and tota! !iabi!ity. ts va!ue

shou!d be high because deposits of the bank shou!d be high than !iabi!ities.

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&he va!ue is decreasing in year I>>6 and I>>= but increasing in I>>? and onwards

which is a good sign for the company.

. E?uity to deposit ratio0

FOR6U5A0 E?uity B Deposits

4ear := : : : :H

E?uity to

deposit

ratio

H.9 99.


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n I>>E ratio is !owest this means that much of the bank was financed by deposits

made to bank rather than e+uity. @rom I>>6 to onwards this ratio is increasing to

I.CG in I>>C showing better financia! and profitab!e position of the bank as

appro9imate!y a!! of the !ong term capita! is e+uity with !ess or no deposits invo!ved in

the financing of bank.

. Investment to total assets0

FOR6U5A0 Investment B Total Assets

4ear := : : : :H

Inv. to total

assets

: :.9; :=.9 9.;: :=.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

2005 2006 2007 2008 2009

Years

Interpretation0

&he above ratio shows the re!ation between the investment and tota! assets.

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As the ca!cu!ation show that for the coup!e of years the ratio was !ow but the va!ue

has increased in year I>>= and I>>C. &his means that the investment has increased

a !ot as compared to the assets.

. Advances to Assets0

FOR6U5A0 5oans B Total Assets

4ear := : : : :H

Advances

to assets

=H.H9 =. ==.:; . =:.


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&his ratio measures the percentage of funds provided by the creditors. %oan to asset

is continuous!y decreasing e9cept in year I>>?. &his continuous decrease shows a

decrease to the advances of the bank but on the other side the bank assets increase

rapid!y.

H. Cas" to deposit ratio0

FOR6U5A0 Cas" B Total Deposit

4ear := : : : :H

Cas" to

deposit

ratio

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13.00%

14.00%

15.00%

16.00%

17.00%

18.00%

2005 2006 2007 2008 2009

Years

Interpretation0

:ash to deposit ratio is !owest in I>>E indicating a decrease in cash whi!e in I>>6 it

is highest showing an increase in cash and decrease in deposits. @rom I>>=

onwards cash is increasing continuous!y but on other hand deposits of bank is

decreasing.

9. Earnin- per s"are0

FOR6U5A0 2ro'it availa&le to Common S"are"olders B No. o' E?uity

1olders

4ear := : : : :H

E2S 9;. 9.; 9


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0.00%

5.00%

10.00%

15.00%

20.00%

2005 2006 2007 2008 2009

years

Interpretation0

)S shows the company0s profitabi!ity. n I>>6 company has a ma9imum )S it

indicates that company is en1oying profits more as compare to year I>>= onwards

ti!! I>>C which shows a tremendous decrease in )S showing adverse effect to

the company0s profitabi!ity.

99. Net Interest 6ar-in0

FOR6U5A0 Interest Income B Earnin- Assets

4ear := : : : :H

Net

Interest

Ratio


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0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

2005 2006 2007 2008 2009

Years

Interpretation0

-et nterest Margin measures difference between interest income generated by

banks or other financia! institutions by their !ending and interest paid on borrowing.

-M is highest in the year I>>E and then it decreased rapid!y in I>>6 and onwards.

&his happened because interest e9penses were greater than the amount of returns

generated by investments.

9:. Net 2ro'it 6ar-in0

FOR6U5A0 2ro'it a'ter tax B Total income

4ear := : : : :H

Net pro'it

mar-in

;:.;9 ;=.99 ;.;; :.H :H.H=

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0.00%

10.00%

20.00%

30.00%

40.00%

2005 2006 2007 2008 2009

Years

Interpretation0

-et profit margin shows how much a firm is earning per do!!ar of sa!es.

n I>>6 company is producing highest net profit of sa!es i.e. E.G than in any

other given year. After I>>6 the net profit margin is decreasing that is not a good

sign for the company0s profitabi!ity.

RECO66ENDATIONS8 SUGGESTIONS

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spend si9 weeks of my internship in $abib Bank %td# &he s!amia 'niversity Branch

Bahawa!pur. During this period fe!t as the part of the bank. t was my first

e9perience to work in a banking environment. had !ess know!edge about the

operations of the bank and its ambiance. &his internship gave me an opportunity to

!earn more about the Banking systems. Based on my e9perience in $B% can

recommend or suggest them which can he!p them in short or !ong2term issues.

So# wi!! give fo!!owing suggestions for the better function of the bank3

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t is strong!y recommended that $B% must introduce emp!oyees training

programs on regu!ar basis. So that emp!oyees have awareness about the newdeve!opments with the c!ients.

$abib Bank %td. shou!d update a!! the branches throughout the country as the

banking competition is very tight and they have to make their banking systems

+uicker and re!iab!e.

$abib Bank %imited even though providing the customer service in better way

butthere is a !ot of work to be done in a custom banking due to which emp!oyees

work for stretched duration. Management shou!d reduce the burden of the

emp!oyees by hiring new +ua!ified staff and trim down the working hours.

f any bad debt comes up# then the bank shou!d recover those debts as soon

as possib!e so that its financia! position shou!d improve.

Branch manager0s attitude and behavior shou!d be supportive L friend!y in

order to entertain the difficu!ties faced by the workers.

A!! the additiona! banks are taking ho!d of the customers on very high interest

rate presented to the depositors# $B% shou!d a!so imp!ement some approach

to grab the customer and enhance tota! deposits.

&he amount of women emp!oyed by $abib Bank %imited is not as much as

compared to ma!e staff# so it shou!d provide work to more women.

5orking conditions must be improved for the emp!oyees.

mmediate feedback to customer0s in+uiries is essentia! to sustain a hea!thy

re!ationship with the customer.

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&op e9ecutive shou!d take a!! the decisions for the promotion of emp!oyees on

the basis of their work done in the bank

Supp!ementary conveniences of !oans shou!d be provided to individua!s for

enhancing the business# studies etc on simp!e state of affairs.

@or financing actions the procedure shou!d be simp!e to the customer.

&he recruitment procedure must be reasonab!e and c!ear.

Studies must be carried out regarding degree of customer satisfaction and a!!

emp!oyees of this department shou!d !ook forward to get criticism whenever

possib!e.

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CONC5USION

1a&i& #an$ 5td.0

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$abib Bank %td. is obvious!y the first and foremost se!ection of each and everyone

who be!ieves in +ua!itative approach of banking# an atmosphere of e9treme!y

accountab!e emp!oyees. $abib Bank is taking p!easure in a strong market share and

en1oying the taste of high2+ua!ity standing in terms of its operationa! features and

customer support. $abib Bank %td. is undoubted!y the unsurpassed bank operating

in )akistan.

)ersona! !oan is a distinguished feature of $B% e9periencing a good reputation and

reasonab!e mark up with respect to prevai!ing market mark up with assurance of

satisfaction and support. $B% has additiona! customers as contrast to other banks# if

they give appropriate concentration to every customer then in coming few years it wi!!

be the principa! bank of the country.

noticed that $abib Bank %td. is an economica!!y sound bank. ts proceeds are

increasing gradua!!y more years by year. ts personne! are e9ceptiona!!y good and

genuine with the bank. But due to the current economic crash# business of the bank

has been reduced.

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$abib Bank %imited views specia!i"ation and service bri!!iancy as the foundation of its

po!icy. &he peop!e at Bank understand that innovation# creativity# re!iabi!ity#

customi"ed services and their imp!ementation is the important constituent for their

future en!argement.

$B% is aware that they have paced into Ist century and they must get together its

cha!!enge by obtaining the ma9imum !eve! of techno!ogy. &hus they wi!! be speeding

up their techno!ogica! advance to faci!itate them to dea! out their products and

services through most professiona! and high techno!ogy way.

$abib bank was among the top banks of the wor!d but in few years it has !ost its

position. $B% is not giving any progress due to po!itica! pressure and instabi!ity.

ther factors ho!ding back the performance of $B% are unproductive and inefficient

management. %ast but not the !east corruption is the root cause of dec!ining worth of

$B%.

*emoving these factors wi!! not on!y retain the worth and p!ace of $B% but a!so !ead

it to top ten banks of the wor!d.

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$B% is !acking in conf!ict management. &here are many prob!ems aroused regarding

any issue that !eads to a conf!ict( $B% must be having a conf!ict reso!ving system in

which higher officia!s must be invo!ved to have a keen and c!ose !ook on the critica!

issues. &he decision making wi!! become easier and beneficia! as the issues are

observed by the higher officia!s. &his wi!! resu!t in the decreasing of conf!ict within the

organi"ation resu!ting in the motivation of workers as they are now working in ethica!

environment# u!timate!y this wi!! !ead to increased productivity of the bank.

$B% took a great step of introducing mobi!e banking. But a huge prob!em $B% is

facing is the !ack of know!edge of c!ient. :!ient is unaware of this sort of banking.

$B% can !aunch an organi"ed marketing program to make its customers aware of

their product.

$B% has upgraded its system by insta!!ing 7MSNS8 to ensure rea! time banking at its

about >> !oca! and overseas !ocations.

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1a&i& #an$+ T"e Islamia University Old Campus #ranc"0

want to sum up the p!easant e9perience had during my internship program in

$abib Bank %imited# &he s!amia 'niversity !d :ampus Branch. worked in various

departments of the bank and got the chance to know about the banking operations.

2ension Forms0

n the first day of internship there was

Sa!ary and )ension week was in

process. So the bank was crowded

with peop!e to get their sa!aries and

pensions.

5e were to!d to he!p the bank staff by fi!!ing the pension forms. t was fun but had to

do it with responsibi!ity. So and other internees did this work with fu!! enthusiasm.

After fi!!ing out the forms we were asked to record the entries in the register of

)ension *ecords.

5e were to!d that there are two types of pension3

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9. 2ersonal 2ension0

&he pension which is taken by the worker or emp!oyee by himse!f/herse!f after

he/she is retired from the work it is ca!!ed )*S-A% )-S-.

:. Family 2ension0

&he pension which is co!!ected by the fami!y i.e. wife# chi!dren etc of the

emp!oyee/worker after his/her death is ca!!ed @AM%N )-S-.

very individua! is assigned a ).). no. through which he is given the pension and

then the entry is made in the register of the bank to which the pension is paid.

worked in the various departments of the bank. My workings in those areas are as

fo!!ows3

Account Openin- Department0

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&his department dea!s with opening account and saving account for its customer and

a!! matters regarding there off. opened the current and saving accounts of individua!

customers on!y.

5e were to!d that there are five basic steps to open an account of any customer.

9. Add Ne) Customer *ANC,

:. Open Customer Account *OCA,

;. Add Customer Address *CAA,


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After the paper work the information of the customer was entered in the automated

system# 64SIS# which then gives the account number for that customer. 4 digit

account number is a!!otted to $B% ac ho!ders. &he first four digits are the branch

code where ac is going to be opened. Afterwards the ne9t eight digits are customer

account seria! number and !ast two digits indicate the type of account.

&his account number wi!! be used to carry out different transactions by the customer

as the same number wi!! be imprinted on his che+ue book.

Account can be )-D with Minimum Ba!ance *s.>>>/2 with no ma9imum !imit.

Deposits Department0

&his is the fundamenta! department of the bank. &he entire banking system is based

upon borrowing. %ike a!! banks# deposit department has acknow!edged its worth as

the most important. A!most a!! the operations generated from the deposit department

and with due course of time ref!ect back to the deposit department. n order to attract

funds bank has introduced various types of deposit schemes that may suit the need

and tastes of a !arge number of depositors

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&here are three basic types of deposits3

. Demand Deposits

I. &ime Deposits

. Saving Deposits

Clearin- Department0

:!earing is a system by which banks e9change

che+ues and other negotiab!e instruments drawn on

each other within a specified area and thereby

secure payment for their c!ient through the c!earing house at specified time8 in an

efficient way.

&here are two types of c!earing3

In)ard Clearin-0

A type of c!earing in which a bank does payment on the beha!f of customer is ca!!ed

nward :!earing.

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Out)ard Clearin-0

A type of c!earing in which a bank co!!ects on the beha!f of customer is ca!!ed

utward :!earing.

Outward Bills for Collection (OBCS)

&he che+ues# which are sent to their city banks for the !oca! c!earing in that city# are

ca!!ed outward bi!!s for co!!ection.

a!so prepared these B:s during my internship.

&he kinds of c!earing are as fo!!ows3

. -orma! c!earing

I. Same Day c!earing

. nter2:ity c!earing

C"e?ue #oo$0

As to!d above che+ue book is a printed book of b!ank che+ues issued by the bank

which is used by customer for further transactions.

During my internship observed the issuance of che+ue book.

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n short# $abib Bank %imited is the first choice of the students who want to gain the

practica! e9perience of internship. As being the first mu!tinationa! bank in )akistan#

$B% has a!ways strived to achieve more market share by focusing on the needs of its

current and potentia! customers. n this regard# 1#5 won 7T1E #AN3 OF T1E

4EAR :H/award which is a big achievement for $B%0s management and its hard

working emp!oyees.

53187895 internship report on habib bank limited

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