1. Account Opening DepartmentIn0this0department0I0have0to0learn0how0to0open0a0new0account0of0a0customer.0The0HBL0open0the0different0types0of0accounts.0The0opening0of0an0account0is0the0establishment0of0banker0customer0relationship.0Before0a0banker0opens0a0new0account,0the0banker0should0determine0the0prospective0customers0integrity,0respectability,0occupation0and0the0nature0of0business0by0the0introductory0references0given0at0the0time0of0account0opening.0I0already0explain0these0accounts.0In0order0to0open0an0account0first0of0all0the0customer0has0to0fill0a0form0prescribed0by0the0bank.0The0person0is0required0to0bring0some0reference0or0introduction0for0opening0the0account.0Introducer0may0be0a0person0who0has0an0account0with0HBL.0Some0important0information0regarding0introducer0e.g.0the0name0and0account0number0of0the0introducer0is0written0on0the0space0provided0on0the0specimen0signature0cards.0Then0in0order0to0find0out0whether0he0is0a0true0introducer0or0not0a0letter0is0sent0to0him0thanking0him0for0this0introduction,0so0that0anything0wrong0may0come0into0notice.0There0are0different0requirement0for0different0types0of0accounts0and0account0holders.0An0important0thing0is0that0the0customer0should0have0a0corporate0customer.0The0corporate0customer0limit0is0400million0and0this0branch0always0deals0the0corporate0customer.Procedure0of0Account0Opening Duly0filled0prescribed0A/C0opening0form. Attested0photocopy0of0N.I.C./Passport0of0Account0Holder(s),0Proprietor,0Partners,0Directors0and0office0Bearers0as0the0case0may0be. Certified0true0copy0of0the0certificate0of0incorporation0or0registration0(in0case0of0limited0companies0&0registered0bodies0only). Certified0true0copy0of0the0certificate0of0commencement0of0business0(in0case0of0public0limited0companies0only). Certified0true0copy0of0the0memorandum0and0articles0of0association0(in0case0of0limited0companies). Certified0true0copy0of0rules0and0regulations0or0By-Laws0(in0case0of0association0etc.). Certified0true0copy0of0the0resolution0of0the0Board0of0Directors/Managing0Committee/Governing0Body0regarding0conduct0of0the0account.Procedure0for0Account0closingAny0time0the0customer0can0close0their0account0if0he0is0not0satisfy0with0the0bank0or0may0be0other0reason.0He0can0easily0close0their0account.0For0closing0of0account0the0customer0meets0the0manager0that0he0want0to0close0his0account0.For0this0purpose0the0application0is0written0to0the0manager.0The0manager0sing0this0application0and0this0is0submit0to0the0account0opening0department0this0department0close0the0account0of0the0custom.

2. Remittance0DepartmentRemittance0is0a0major0function0of0the0bank.0It0is0the0transfer0of0money0from0one0place0to0another0place0without0directly0involving0cash.0As0it0is0the0function0of0the0Bank0to0the0money0to0any0place0where0there0is0a0Bank.0It0is0the0most0easiest0and0safe0way0to0send0money0to0any0place.0Bank0charges0menial0amount0as0a0commission0for0the0remittance.0Here0in0the0Habib0Bank0Limited0Chubara0Road0Layyah0Branch0there0is0also0remittance0Department.0By0providing0this0service0to0the0customers0the0national0bank0earns0a0lot0of0income0in0Exchange.There0are0two0types0of0bills0remittance:I) Remittance0InwardII) Remittance0OutwardI. Remittance0InwardCheques0and0Drafts0received0for0payment0and0clearance0or0drawn0on0us0from0customer0of0other0banks0on0behalf0of0their0customers0is0called0Remittance0Inward.II. Remittance0OutwardAll0instruments0issued0by0us,0which0are0drawn0on0other0branch0of0the0same0bank0or0instruments0deposited0for0collection0from0other0bank0locally0or0out0of0city0are0called0Remittance0Outward0There0are0mostly0four0methods0to0remit0the0money.0They0are Demand0Draft0(DD) Mail0Transfer0(MT) Pay0Order0(PO) Telegraphic0Transfer.(TT)

Demand0Draft0(DD)It0is0the0most0commonly0method0used0for0remittance0of0money.0It0is0very0simple,0firstly0a0form0is0to0be0filled0in0which0all0details0are0specified0that0where0and0it0which0branch0the0draft0is0to0be0sent0then0the0money0is0depositor0which0is0called0draft0and0money0can0be0drawn0after0showing0to0the0bank0of0the0specified0branch0of0the0Bank.0Only0specified0person0can0draw0the0money0on0that0draft.0Another0method0to0secure0the0payment0of0the0draft0could0be0the0crossing0of0the0draft,0which0means0that0it0will0only0be0deposited0in0the0payee's0account.0To0make0it0more0secured0and0safe0the0Bank0has0coded0the0amount0exceeding0Rs.015000.0Only0the0banker0or0the0person0known0the0actual0amount0of0the0draft0in0return0bank0gets0a0commission0which0is0its0mode0of0earning.Following0parties0are0involved0in0demand0draft: Applicant Issuing0branch Drawee0branch BeneficiaryA0demand0draft0may0be0issued0against0the0written0request0of0the0customer0before0issuing0it0must0be0seen0that0the0demand0draft0is0in0order.The0DD0application0must0be0scrutinized0by0the0counter0clerk0in0respect0of0following0points. There0should0be0branch0where0payment0is0to0be0made. Full0name0of0payer0should0be0mentioned. Amount0in0words0and0figures0must0be0same The0applicant0on0two0places0should0sign0application.

Mail0Transfer0(MT)The0money0is0transferred0through0mail.0One0Branch0of0the0bank0sends0advice0to0the0branch0of0the0same0bank0to0credit0the0account0of0payee.0In0this0type0of0transfer0the0payee0must0has0the0Bank0account.0For0example,0now0days0PTV's0licenses0are0made0all0over0the0Pakistan.0Bank0also0gets0commission0on0the0mail0transfers0the0amount0to0the0PTVs0Islamabad0account.Pay0Order0(PO)Pay0order0is0less0expensive0method0of0transfer0money.0Normally0this0method0is0used0to0transfer0money0inside0the0city.0If0it0is0used0city0wide,0it0takes0a0long0time.0The0bank0charge0Rs.0100which0is0flat0fee0the0pay0order0and0an0excise0duty0of0Rs,010per0leaf0withholding0tax0of020%0on0the0sum0is0also0taken0from0the0party.0Now0if0the0pay0order0is0to0be0cancelled0or0duplicate0of0the0pay0order0is0to0be0needed0is0case0of0misplacement0Rs.200is0to0be0paid.Following0parties0are0involved0in0pay0order: Applicant issuing0branch PayeeTelegraphic0Transfer.(TT)It0is0a0good0safe0and0fast0method0of0transferring0money0from0one0place0to0another.0The0advice0is0sent0through0the0telegram0and0the0bank0to0which0the0advice0is0made0reconfirms0that0whether0the0advice0is0made0or0not.0After0the0confirmation0the0money0is0paid0to0the0payee.0Telegraphic0Transfer0could0be0made0by0giving0the0name0and0the0telephone0number0of0the0payee0but0account0number0is0considered0good0and0sage.0The0amount0exceeding0Rs.150000is0coded0in0order0to0keep0security.

Following0parties0are0involved0in0TT Applicant Drawing0branch Drawee0branch BeneficiaryFollowing0important0things0should0be0included0in0TT: Full0name0of0the0beneficiary0or0account0number0should0be0mentioned0in0the0application0form. Instruction0regarding0mode0of0payment0should0be0obtained. A0record0in0the0remittance0outward0register0should0be0maintained. All0the0remittance0must0be0controlled0through0number0or0codes.

3. Advances0DepartmentThis0department0has0been0working0under0the0supervision0of0knowledge0experienced0&0well0qualified0banker.0Mr.0Nadeem,0who0has0been0serving0this0bank0for0the0last0220years.0This0department0has0been0playing0one0of0the0primary0functions0of0the0bank0because0a0bank0is0the0organizations0that0accept0deposits0&0give0advances.0Advances0department0is0one0of0the0most0sensitive0and0important0departments0of0the0bank.0The0major0portion0of0the0profit0is0earned0through0this0department.0The0job0of0this0department0is0to0make0proposals0about0the0loans.0The0Credit0Management0Division0of0Head0Office0directly0controls0all0the0advances.0As0we0known0bank0is0a0profit0seeking0institution.0It0attracts0surplus0balances0from0the0customers0at0low0rate0of0interest0and0makes0advances0at0a0higher0rate0of0interest0to0the0individuals0and0business0firms.0Credit0extensions0are0the0most0important0activity0of0all0financial0institutions,0because0it0is0the0main0source0of0earning.0However,0at0the0same0time,0it0is0a0very0risky0task0and0the0risk0cannot0be0completely0eliminated0but0could0be0minimized0largely0with0certain0techniques.0Any0individual0or0company,0who0wants0loan0from0HBL,0first0of0all0has0to0undergo0the0filling0of0a0prescribed0form,0which0provides0the0following0information0to0the0banker.Advances0are0investments0of0bank0to0earn0profit.0After0restructuring0of0Habib0Bank0Limited,0Head0office0gives0loan0targets0to0each0branch0that0must0be0achieved0for0its0survival.0The0manager0is0responsible0to0achieve0these0targets0in0the0given0period.0The0amount0is0collected0partially0with0an0agreement0containing0the0markup0or0interest0rate,0which0is0to0be0paid0the0interest,0or0markup0is0applied0on0a0time0limit0after0that0it0can0be0increased0with0the0given0conditions0applied.0There0are0basically0two0types0of0loans. Fund0base0 Non-fund0base

Fund0baseIn0fund0base0the0cash0is0involved.Non-fund0baseWhile0is0non0fund0base0cash0is0not0involved.These0are0following0types0of0advances0those0are0given0by0the0BANK. Cash0Finance0(CF) Running0Finance0(RF) Machinery0Loan. International0Development0Agency0Loan(IDA)Cash0finance0(CF)Cash0Finance0is0the0biggest0loan0given0to0the0businessmen,0industrialists,0and0its0limit0is0in0crores0and0bank0do0require0security0for0this0purpose.0After0the0proper0investigation0and0documentation0these0finances0are0given0and0genuine0property0is0pledged0as0a0matter0of0security.These0loans0are0taken0for0the0purchase0of0stocks0etc.0The0bank0appoints0its0staff0of0two0or0three0persons0at0the0place0where0that0stock0is0lying.0Bank0also0keeps0the0record0of0the0stock0and0current0position0too.0A0notice0is0also0written0at0the0place0that0the0stocks0are0pledged0with0the0bank.0To0get0these0types0of0loans0prior0permission0from0the0zonal0office0of0the0Habib0bank0is0also0required.0The0bank0gets0back0its0principal0amount0and0also0markup0for0the0loanRunning0finance0(RF)Running0Finances0are0also0given0for0the0purchase0of0stock0etc.0But0its0limit0is0not0too0much.0Normally0up0to0RS015,000,0000is0given0as0a0Running0Finance0and0no0staff0is0appointed.0This0is0termed0as0Hypothecation,0which0means0that0party0is0wholly0liable0for0the0stock0and0

payment0of0the0principal0amount0and0markup.0The0procedure0is0almost0same0as0for0the0cash0finance0and0the0loan0is0given0to0those0parties0which0are0able0to0prove0its0genuineness0and0satisfies0the0bank.0The0bank0also0pledges0the0genuine0security0of0the0party0which0normally0more0valuable0than0the0amount0of0loan.0To0get0this0type0of0loan0prior0permission0of0the0zonal0office0is0necessary.Machinery0loanCertain0loans0are0given0for0the0purchase0of0machinery.0These0loans0are0called0Local0Machinery0Manufacturing0Loan0(LMM0LOAN).0The0bank0finances0for0the0machinery,0which0is0manufactured0in0Pakistan.0Like0other0loans0after0the0proper0verification0and0proper0documentation.With0the0prior0approval0from0the0zonal0office,0these0loans0are0given.0The0bank0pledges0some0genuine0property0as0a0security.0Personal0security0is0also0required0in0the0getting0of0this0loan.0The0loan0is0to0repay0in0certain0installments0which0includes0the0mark-up0also.0Normally0these0loans0are0for0the0period0of0five0years0and0first0six0or0three0months0are0exempted0from0the0installments0as0the0ease0or0as0the0terms0and0conditions0may0be.0The0rate0of0the0interest0to0be0paid0by0the0party0is08%0per0annum.International0Development0Agency0Loans.These0loans0are0given0for0the0purchase0of0foreign0machinery,0stocks,0etc.Though0these0loans0are0not0in0practice0but0there0is0a0provision0for0this0loan.0The0cause0of0in0practicing0of0the0loan0may0be0the0unawareness0of0the0people0about0the0provision.The0rate0of0interest0on0these0loans0is011%0per0annum.These0finances0are0provided0by0the0World0Bank.

Principles0of0AdvancesThere0are0five0principles,0which0must0be0duly0observed0while0advancing0money0to0the0borrowers. Safety0 Liquidity0 Dispersal0 Remuneration0 Suitability0Other0Finance0system0of0the0HBL Demand0finance Fixed0assets0financing0(FAF) House0Finance Hire0Purchase0Financing

4. Marketing0DepartmentFunction0of0Market0DepartmentThe0function0of0the0marketing0department0of0a0HBL0is0to0advertise0about0the0bank0and0reach0more0possible0customer0who0would0open0accounts0with0the0HBL.0They0usually0start0up0the0campaign0or0a0promotional0scheme0explaining0a0benefit0that0come0along0with0the0process0of0account0opening0with0the0bank.0Such0a0campaign0usually0results0in0the0increase0in0the0customers0base0and0increased0the0profit0for0the0HBL.Another0important0function0of0HBL0is0to0use0of0the0segmentation0strategy,0in0it0the0HBL0divide0the0market0into0distinct0group0of0buyers0with0different0needs0how0might0require0It0is0very0important0strategy0which0is0applied0by0the0operation0marketing0department0in0the0HBL,0the0Main0focus0of0this0selecting0strategy0is0to0spreading0the0market0into0different0groups,0where0the0persons0have0comparable0needs0as0well0as0wants0for0services0and0products.The0marketing0department0in0HABIB0BANK0LIMITED0is0very0strong.0It0is0the0main0source0of0gaining0and0maintains0the0customers0that0can0give0a0large0profit0to0the0bank.0There0are0five0relationship0managers0in0Habib0bank0and0every0person0is0responsible0for0the0credit0of0his0party.0There0are0three0market0of0HBL.Money0Market T-Bill0and0Govt.0Securities Bonds0of0Provincial0Govt. Defense0Saving0Certificates Mutual0Funds0etc.

Capital0Market Equities0e.g.0shares Mutual0Funds Bonds Debt0MarketForeign0Exchange0Market Spot0Transactions Outright0Transactions Swap0TransactionsCustomer0dealingHBL0corporate0center0only0deal0with0the0following0categories0of0business: The0organization0that0have0minimum02500million0sales0in0a0year. The0organization0that0have0availed0800million0finance Agri0based0industry. HBL0do0not0deal0with0the0agriculture0sector.

5. Clearing0DepartmentThe0major0function0of0clearing0department0is0to0receive0the0cheques,0which0are0drawn0on0some0other0banks.0The0customer0can0get0the0money0in0his0account0at0Habib0Bank0Limited0through0a0cheque0drawn0on0another0bank.0The0bank0accepts0these0cheques0and0collects0the0amount0from0that0bank0on0which0cheques0are0drawn0through0the0Clearing0House.0Bank0charges0some0commission0for0this0function.0Every0bank0performs0both0as0a0paying0as0well0as0collecting0functions0on0behalf0of0its0customer.0It0is0however0an0important0function0of0crossed0cheques.0A0large0part0of0this0work0is0carried0out0through0the0bankers0clearing0house.0A0clearing0house0is0a0place0where0representatives0of0all0the0banks0of0a0city0get0together0and0settle0the0receipts0and0payments0of0cheques0drawn0on0each0other0bank.0As0the0collecting0banker0runs0the0certain0risks0in0receipt0of0their0ownership,0the0law0has0provided0certain0protections0to0the0banks.0The0basic0function0of0clearing0dept.0arises0when0HBL0account0holder0deposits0cheque0of0another0back0to0collect0its0payment0on0his0behalf0or0HBL0account0holder0gives0a0cheque0to0any0other0party0concerning0to0any0other0bank.0Usually0a0cheque0is0sent0through0clearing0is0credited0to0the0depositor0account0day0after0tomorrow.In0this0regard0there0are0two0types0of0clearings. Inward0Clearing Outward0ClearingInward0ClearingInward0clearing0means0all0those0cheques0which0are0issued0by0account0holders0too0their0parties0and0now0these0cheques0are0presented0for0payment0(in0term0of0amount0of0cheque0credit0to0presenter0account).

Outward0ClearingSimilarly0when0outside0parties0issue0some0cheque0to0our0account0holders,0they0deposit0these0cheques0in0cheque0Receipts0Department.0Afterward0these0cheques,0as0relating0to0other0banks0operating0in0country,0are0sent0to0clearing0department0or0further0process.0Clearing0dept.0sends0these0cheques0to0respective0banks0and0after0realization0of0cheque,0funds0are0credited0to0the0account0of0respective0customer.0In0this0regard0there0are0two0types0of0clearing Intra0city0clearing Intercity0clearing

6. Foreign0Exchange0DepartmentAs0the0Pakistani0currency0accounts0are0opened0the0requirements0are0same0for0the0foreign0currency0accounts.0All0the0transactions0are0made0in0the0foreign0currency0in0which0the0account0is0opened.

7. Computer0DepartmentThrough0this0department0bank0has0make0its0way0to0enter0in0twenty-first0century.0This0department0is0playing0a0very0important0role0in0making0the0banking0procedures0fasters0and0helping0the0bank0for0providing0the0new0services0to0its0customers.0This0division0provided0the0bank0with0online0branches0system0to0make0the0whole0procedure0fool0proof.Types0of0Branches:There0are0three0types0of0branches0in0all0over0the0Pakistan. Online0BranchesThe0branches,0which0are0directly,0linked0with0the0central0computer0AS-4000through0wide0area0networking0through0fiber0optic0cables.0These0branches0have0dumb0terminal0directly0linked0with0central0computer.0Yet0only0forty-four0branches0all0over0the0Pakistan0are0online.0Out0of0forty-four,0seventeen0are0located0in0Karachi,0seven0are0located0in0Lahore,0and0two0are0located0in0Islamabad0and0two0in0Multan0and0two0in0other0regional0offices. Batch0Branches;The0branches0where0all0transactions0are0carried0out0with0the0computer0based0system0but0these0branches0are0not0connected0to0the0central0computer0with0wide0area0networking.0Batch0branches0are0using0three0types0of0system,0Branch0Back0Office0(BBO)0based0on0FoxPro,0Branch0Automated0System0(BAS)0based0on0UNIX0Branch0Integrated0System0(BIS)0based0on0FoxPro,0in0Karachi0mostly0branches0facing0this0problem.0Now-a-days0efforts0are0under0way0to0convert0all0branches0into0Electronic0Banking0System0(EBS)0which0is0used0by0online0branches0as0this0system0doesn't0require0a0person0to0remaining0sitting0till0the0branch0closed0its0operation0but0the0system0automatically0close0itself0when0the0branch0time0is0over.0The0database0in0head0office0is0also0on0this0system.