HABBIB BANK LIMITED

INTERNSHIP REPORT

Avinash Advani

MBA

KASBIT

TABLE OF CONTENTS

1. Acknowledgement

2. Executive summary

3. Overview of the organization

4. Task assigned

5. Comparative analysis :

HBL products and services

MCB products and services

ABL products and services

UBL products and services

FAYSAL BANK products and services

6. Recommendations

7. Conclusion

8. References

9. Questionnaire

ACKNOWLEDGEMENT

First of all I am thankful to “ALMIGHTY ALLAH”. Who gave me the strength,

patience, courage and enthusiasm needed to write and complete this report, then to

my friends who assisted me in this effort and we worked daylong to accomplish This

assignment and to my parents who supported me financially and encouraged me morally.

I have a debt of gratitude to all my teachers who taught me throughout my academic

career. It was pleasure for me to be sent to the HBL WTC OFFICE. I am very

thankful to the honourable internship colleague. I learnt a lot from this training

program and this would guide me a lot while selecting my career.

I also know how to face the problems and how to find out the ways for their

solutions. The preparation of this report was a massive undertaking but the highly

competent and experienced bankers of HBL WTC office and Branch provided me

with all assistance, information, advice and suggestions that I needed which

contributed importantly to this report.

EXECUTIVE SUMMARY

This report contains the study of Habib bank limited and competitive analysis of products and services of different banks such as HBL, UBL, ABL, FAYSAL BANK.

This is the age of specialization; every person must be capable in his/her particular

field. Some practical experience is necessary to enter the field because only education given in the universities is not enough to compete with the world wide changing situation.

The field work is difficult and complicated. This is a good reason why the students of M.B.A are being given a fair chance to get the practical area in which students have

to enter after completing education.

All the information in this report is based upon my observation, interviews and practical involvement in different tasks during my internship at HBL wtc office and branch.

First is introductory portion which relates to introduction of Habbib bank limited .The

is the comparative analysis of different banks its product line and services.

HBL has established more than 1500 branches in all over the country and has 1000 ATM machines and customer base exceeding FIVE million relationships.

In the last, the conclusion, final Recommendations & Suggestions are given to

overcome flaws & troubles that are being faced by HBL.

OVERVIEW OF THE ORGANIZATION

History of HBL

HBL established operations in Pakistan in 1947 and moved its head office to

Karachi. HBL first international branch was established in Colombo, Sri Lanka in

1951 and Habib Bank Plaza was built in 1972 to commemorate the bank’s 25th

Anniversary.

With a domestic market share of over 40%, HBL was nationalized in 1974 and it

continued to dominate the commercial banking sector with a major market share in

inward foreign remittances (55%) and loans to small industries, traders and farmers.

International operations were expanded to include the USA, Singapore, Oman,

Belgium, Seychelles and Maldives and the Netherlands.

On December 29, 2003 Pakistan's Privatization Commission announced that the

Government of Pakistan had formally granted the Aga Khan Fund for Economic

Development (AKFED) rights to 51% of the shareholding in HBL, against an

investment of PKR 22.409 billion (USD 389 million). On February 26, 2004,

management control was handed over to AKFED. The Board of Directors was

reconstituted to have four AKFED nominees, including the Chairman and the

President/CEO and three Government of Pakistan nominees.

HBL’s Vision, Mission and Values

Vision

Enabling people to advance with confidence and success.

Mission

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

Values

Our values are the fundamental principles that define our culture and are brought to

life in our attitude and behavior. It is these values that make us unique and

unmistakable.

Excellence

Integrity

Customer Focus

Meritocracy

Progressiveness

Company Profile

Habib Bank Limited commonly referred to as "HBL" and head-quartered in Habib

Bank Plaza, Karachi, Pakistan, is the largest bank in Pakistan. The bank has a

network of over 1450 branches in Pakistan and 55 branches worldwide. Habib Bank

stands to gain from a possible deal as it would get some of the best customers who

have very good credit history, the official said. He added that the Citibank had

already cleared its portfolio of risky loans. After Pakistan was born in 1947, Habib

Bank, at the urging of Governor-General Jinnah, moved its headquarters to Karachi,

Pakistan's first capital. This gave Karachi its first commercial bank of the newly

formed Pakistan. The Habib family owned and managed the bank until the Pakistan.

RETAIL NETWORK

Largest banking Network in Pakistan

1460 Branches

55 branches Abroad

Presence in 26 Countries

MAJOR STAKE HOLDINGS:

Aga Khan Fund for Economic Development

(AKFED): 51% owned

Government of Pakistan: 41.5% owned

Over 170,000 shareholders

FINANCIALS:

Over 5 million bank customers

Assets of over Rs. 95 billions

Profit After Tax grown by 31% from 2010 to 2011

Total Deposits and other Account over Rs. 738 billions

It has a domestic market share of over 40%

SWOT ANALYSIS OF HBL

Such an analysis is very important for the management in retaining the strength, overcoming the weaknesses, capitalizing over the emerging market opportunities,

and carving ways to successfully tackle with the threats and ultimately converting them in the strengths for the organization. Strengths:

Being the pioneer of banking in Pakistan, HBL is the oldest and is the richest

inexperience.

HBL has the potential to encounter the competitive environment in the market. The management of the bank believes in customer focused banking rather

than the product oriented banking. The products and services designed by the bank are specifically tailored to the individual needs of its customers.

The products of HBL are also the strength of it. HBL has many products for

almost all type of customers. So it depends on the customer that which product he likes and in sector he wants to invest depending on whether a

person is salaried one or a businessman. HBL is the largest private bank in Pakistan now and people trust is very high. It has the largest branch network among private banks of Pakistan.

Weaknesses

Lack of communication between bank and customers about terms and

condition of products and services. Like centralization of cheque book issuing process.

Employees at branch level are not properly motivated to work by heart. They take the all routine activities as a boring job.

Most of the employees lack managerial training as they are not properly

educated. Due to seniority, they have moved up on the hierarchy line to Grade-I, II or III positions having hardly bachelor degrees. This type of

senior staff cannot apply the modern and innovative techniques of management indecision making.

I observed that some customers are facing problem to physically visit the branch just to have bank statement

At many occasions HBL's ATM network gets slow and the machines don't allow for transaction so they should renew their ATM links.

The bank has still some of the traditional ways of operations in this advanced

technological environment. HBL is lacking of customer feedback.

It has poor IT system.

Opportunities:

A large amount of foreign investment is attracted.

It has strong potential for growth. Islamic Banking is a growing market segment that offers attractive

opportunities to potential and existing customers

E-banking facility is also a new opportunity which is a flourishing business in foreign countries and can also be here, if HBL takes the initiatives.

HBL differentiate and increase its deposit by offering attractive rate of return

on deposits.

Use of new advertising techniques to spread awareness about different HBL product. Threats:

The schedules of charges indicate that the fees charged by the bank on the

various services it provides are extremely high. It may result in decrease in the number of its existing customers.

Shortage of trained and specialized staff at lower executive and officer levels.

Facing more competition by foreign banks in the market. Highly attractive and advance services by foreign banks to their customers.

Other private commercial bank with sound profitability is also a threat to HBL e.g. Bank Al Habib, MCB etc.

COMPARATIVE ANAYSIS OF HBL, MCB, UBL, ABL AND FAYSAL BANK

1. Muslim Commercial Bank

MCB Bank Limited, with more than 60 years of experience as one of the leading

banks in Pakistan, was incorporated on July 9 in 1947. The bank has journeyed remarkable tenure of more than half a century of competitively edged and well positioned heights of success by deploying quality banking, heads on technological

developments, professionally leading management and prudent and ethical work methodologies. MCB was nationalized along with other private banks in 1974 as part

of Government of Pakistan's economic reform movement and was later privatized to Nishat Group lead consortium in 1991.

MCB is reputed as one of the soundest financial institution and as one of the leading banks in Pakistan with a deposit base of PKR. 545 bln (apprx.) and total assets of

PKR 766 bln (apprx.). The bank is versed as one of the oldest and most responsible banks in Pakistan and has played pivotal role in representing the country on global platforms while being one of the few institutions that are recognised and traded in the

international market.

MISSION AND VISSION OF MCB

Vision Statement

To be the leading financial services provider, partnering with our customers for a more prosperous and secure future.

Mission Statement

We are a team of committed professionals, providing innovative and efficient

financial solutions to create and nurture long-term relationships with our customers. In doing so, we ensure that our shareholders can invest with confidence in us.

PRODUCTS OF MCB

1. BASIC BANKING ACCOUNT

It’s as simple as ABC to start banking with MCB. Look after your money the simple way, with MCB Basic Banking Account.

2. CURRENT ACCOUNT

Discover the quick, easy, and convenient way to manage and use your money within

an MCB

3. SAVINGS ACCOUNT:

Start saving and discover a habit that’s worth getting into. MCB Savings Account offers you one of the most suitable ways to manage your

hard-earned money. So start saving and earning profit today.

4. BUSINESS ACCOUNT:

An upwardly mobile way to bring down costs on you your way. Access through the accrued savings from discounted transaction fees and more.

5. SAVINGS XTRA

Grow with MCB Extra by saving more and earning greater profit. MCB Savings Xtra Account offers you a wide range of attractive profit rates.

6. CURRENT LIFE ACCOUNT

The coverage you need for the life you lead. MCB Current Life gives you the peace of mind of comprehensive life insurance in a current account and fits right into your lifestyle

7. FOREIGN CURRENCY ACCOUNT

Enjoy the confidence of operating an international account, locally. MCB Foreign Currency Account offers you the option of earning attractive returns on your Foreign Currency Investment.

8. SMART DOLLAR ACCOUNT

MCB Smart Dollar Account is a sensible way to maintain or grow your US Dollar deposit across USD Current, Savings or Term Deposits.

9. SAVINGS 365 GOLD

MCB Savings 365 Gold Account offers you a wide range of attractive profit rates

10. FLEXI DEPOSIT MAHANA PROFIT ACCOUNT

With a wide range of choices and tenors, you can open one or more term deposit accounts that best suit your current or long term needs.

SERVICES OF MCB

MCB mobile

ATM services SMS alerts

Call centre Bill payments E-statement

ABOUT UBL

United Bank Limited was incorporated in Pakistan with the registered office in

Karachi, and the principal office situated in Islamabad. UBL has assets of over Rs. 747 billion and a solid track record of over fifty years - in

addition, the bank operates 1200 branches all over Pakistan including 7 Islamic

banking branches, and 1 branch in Karachi export processing zone and 17 branches outside Pakistan.

The banks ordinary shares are listed on all three stock exchanges in Pakistan and its global Depositary Receipts (GDRs) are on the list of the UK Listing Authority and the London Stock Exchange Professional Securities Market. These GDRs are also

eligible for trading on the international Order Book System of the London Stock Exchange.

MISSION AND VISSION

Vision

To be a world class bank dedicated to excellence, and to surpass the highest expectations of our customers and all other stakeholders.

Mission

Set the highest industry standard for quality, across all areas of operation, on a sustained basis.

Optimize people, processes and technology to deliver the best possible financial solution to our customers. Become the most sought after investment.

Be recognized as the employer of choice.

SERVICES

1. UBL Address

Home Loan Facility

UBL Address empowers you to become the proud owner of a home by offering a

variety of product and pricing options that are flexible yet affordable. So choose the best product option and pricing to suit your needs.

2. UBL Drive

Auto Loan UBL Drive is a unique auto financing product which offers you features, options and flexibility unmatched by any other bank, because at UBL, You come first.

3. UBL Silah Mila

UBL has designed a campaign for the first time in Pakistan to acknowledge and

reward customers who have shown excellent performance in their loan repayments with other banks.

4. Signature Priority Banking

Signature, UBL's Priority Banking service is uniquely designed to meet the highest

expectations of our high potential, high net-worth clients; wherever they may be.

Launched as an independent brand, Signature offers focused and personalized

Wealth Management Services for selected, high net-worth individuals in a completely

secure and congenial atmosphere. Being preferred customers, these clients will be

given exclusive benefits, free services and a lot of value added facilities

5. Corporate Banking

UBL offers full range of services to its Corporate Clients. These include:

Funded

TFC Investment

Bridge Financing

Commercial Papers

Syndicated Financing

Financing Against Liquid Securities

Securitization

Lease Financing

Short Term, Treasury Lines

Working Capital Financing

Non Funded

Letter of Credits

Letter of Guarantees

Standby LC’s

Export Finance Facilities

Pre & Post Shipment Financing

Cash Management Services

6. Customer Service

We believe in customer retention through quality service that would encourage you to continue to bank with us your loyalty.

Our UNISERVICE concept strives to attain excellence in customer service. We aim to provide total customer satisfaction through UNISERVICE, which will soon be available at our full-service branches covering:

Trade finance

Letters of Guarantee

Letters of Credit

Funds Transfer

Remittances

Bill Discounting

Export Financing

Credit Extension

Product Range

When you come to UBL, you get a full range of Products and Services to choose from:

Corporate Finance

Loan Syndication

Structured Finance

Term Finance Certificates

Finance/Credit Extension

Local Currency Facilities

Overdrafts

Demand Finance

Working Capital Finance

Import Financing

Receivable Discounting

Pre and Post Export Financing

LMM Funding

Trade

Documentary Letters of Credit

Standby Letters of Credit & Guarantee

Documentary Collection

Funds Transfer

Investment/Cash Management

Current & PLS Accounts

Foreign Currency

Cash Collection

Utility Bill Collection

Capital Market Hybrid Products

FX Spot, Forwards and Hedging

Rice/Cotton Financing for Ginners

7. Omni Branchless Banking

UBL Omni now brings a host of banking services to your nearest "Dukaan". UBL

Omni Dukaans are located in more than 650+ cities and towns across Pakistan. This

is a major milestone in the evolution of banking that will reshape the traditional

banking model by offering basic banking services across urban and rural Pakistan,

well beyond the regular branch networks of banks.

8. UBL Ameen

At UBL Ameen, it is our aspiration to provide you with innovative and customized

products and services based on the age old foundations of Islamic Jurisprudence. Our aim is to create new benchmarks in service quality and provide an array of

personalized Islamic products, catering to the diverse and ever challenging demands of our clientele.

Being part of one of the largest commercial Banks in the Country, it is our endeavour to become the leading player in Islamic banking and perform an integral role in the

growth and development of the Islamic financial industry in Pakistan. May Allah instil in us the strength of character and vigour of purpose to fulfil our

newfound role and also gift us with the capacity to exceed the expectations of our faithful patrons as their trusted and reliable “Ameen”.

9. Investment Banking

At UBL, we offer our customers a full spectrum of services

Debt Capital Markets & Syndications Project & Structured Finance

Equity & Advisory 10. Net Banking

UBL net banking offers you a simple, convenient and secure way to manage your bank accounts 24/7 from anywhere in the world. UBL net banking is the most trusted

Internet Banking portal in the country primarily because of its uniquely strong security features and an attractive list of transactions and activities available.

11. Treasury &Capital Markets

12. UBL Click N Bank

Simply Revolutionary

Click N Bank * eNRP Account - A simple & convenient way to open, fund and operate account in Pakistan. Completely Online!

13. UBL Tezraftaar

UBL offers the most efficient and free remittance service to beneficiaries in Pakistan.

With our large network of branches, we are poised to offer you service almost at your door step. UBL remittance service, TezRaftaar offers all overseas Pakistanis the fastest and the

most convenient delivery of their money to their beneficiaries in Pakistan. Best of all, TezRaftaar is completely cost free and is available at all UBL Overseas branch

network in the Middle East, UK and US. This facility is also available at UBL's correspondents (Banks/ Money Transfer Cost) in Australia, Canada, Denmark, UK, USA, UAE, Saudi Arabia, Kuwait, Bahrain, Oman, Qatar, Malaysia and Europe as

per list available at Remitter Locator.

14. UBL Tezraftaar Pardes

We introduce to you the UBL Tezraftaar Pardes Card in collaboration with Pakistan Remittance Initiative (PRI), where the customer’s inward remittances are deposited

automatically on the remittance card as and when sent.

UBL Tezraftaar Pardes Card is a unique initiative to provide you relief in receiving your money without having to go to the bank's branch. Apart from being an ATM

card, the UBL Tezraftaar Pardes card also provides you with the facility of directly spending through all VISA accepting outlets across Pakistan.

15. UBL & Western Union

PRODUCTS

1. UBL Wiz

UBL Wiz is Pakistan's first ever Prepaid VISA Debit Card that provides the

convenience, security and benefits of an ATM and Debit Card, locally and

internationally.

2. UBL Mega Wallet

A revitalized and colourful design beckons you to a mega experience of power and

rewards. Every time you use your card to withdraw cash or conduct transactions, you

will be rewarded with points that can be redeemed for exciting gifts.

3. UBL Credit Card

Welcome to the world of UBL Credit Cards, the most exciting and vibrant credit card

brand in Pakistan. We offer you a range of innovative and exciting cards that is

powered by a security of chip

4. Agricultural Products

Production Loan

Financing is available for Major and Minor crops across Pakistan. Main purpose of

financing is to facilitate farmers to purchase Agri Inputs such as Seeds, Fertilizers, Pesticides, Sprayers, hired labour etc.

NIACF (Revolving Credit Scheme)

Loan Tenure 3 years

Documentation once for 3 years.

Cleanup once a year

Option for the farmer to use limit as per requirement

Mark-up is charged on amount used or withdrawn

Minimum Amount PKR 30,000

Maximum Amount as per requirement of the farmer

NIADF (Demand Finance Production)

Loan Tenure 3 months to 1 year

18 months for Sugar cane only

Lump sum disbursement of the limit for a specified period.

Repayment of loan in bullet payment on maturity (Principal and markup).

Minimum Amount PKR 30,000

Maximum Amount as per requirement of Farmer

Development Loan

Land Development, Equipments and Machinery

Financing for Land Improvement, Water course improvement, Tube wells, Lift

pumps, Deep turbine pumps, Cotton pickers, Godown, Cold Storage, Harvester, Thresher, etc

Loan Tenure 1 to 5 years

Lump sum disbursement of the limit for a specified period.

Repayment in instalments (Principal with mark-up).

Repayment mode monthly, quarterly and half yearly

Minimum Amount PKR 30,000

Maximum Amount as per requirement of Farmer

Tractor & Vehicle Finance

To purchase Tractors, Delivery Vans, Mini Trucks, Motor Cycle and other vehicles used for marketing Agri Products

Loan Tenure

1 to 3 years for Motor Cycle

1 to 7 years for Tractor

1 to 5 years for other 4 wheel vehicles

Lump sum disbursement of the limit for a specified period.

Repayment in instalments (Principal with mark-up).

Repayment mode monthly, quarterly and half yearly

Minimum Amount PKR 100,000

Maximum Amount PKR 1,500,000

Nonfarm Loans

Livestock Financing

Dairy Farming, Meat Farming, Fattening of Animals, Rearing of Animals, Construction of Sheds, Milk storage tanks, acquire and establish modern and

efficient livestock facilities. Loan Tenure 1 to 5 years

Monthly / Quarterly repayment mode for Dairy Farmers

Monthly / Quarterly / Half Yearly repayment mode for Meat Farmers

Minimum Amount PKR 50,000

Maximum Amount as per requirement

Poultry Farm structure and equipments, Hatchery farm structure and equipments, Feed Mills, Purchase of Chicks, Feed, Medicines, Storage tanks, Cold storage, Construction of shed, etc.

Loan Tenure 1 to 5 years

Monthly / Quarterly repayment mode for all loans

Minimum Amount PKR 50,000

Maximum Amount as per requirement

Fisheries Financing

Fish seed, Fish feed, Manuring, Construction of pond, Curing and Dying by

fishermen, etc. 5. Small Loans

Under the Small Business Scheme, UBL is providing loans on easy terms to those

who wish to set up their own small-scale business. This scheme is aimed at spreading prosperity in the country by reducing unemployment.

As more and more people start their own industrial units, the country will move steadily towards economic self-reliance.

6. Deposit Products

Our deposit product portfolio offers an eclectic mix for all types of financial requirements. Whether you are an individual interested in opening a savings account, or a businessman wanting to maintain a foreign currency account, or a

small business with a requirement of a business account for your daily transactions, our deposit products offer you the range you require. Check out our extensive

deposit products and services and find one especially suited to your needs. 7. Other Retail Products

UBL Better Life-Bancassurance EFU

UBL Better Life Bancassurance SLICO

ABOUT HABIB BANK LIMITED

HBL was the first commercial bank to be established in Pakistan in 1947. Over the years, HBL has grown its branch network and become the largest private sector

bank with over 1,450 branches across the country and a customer base exceeding five million relationships.

The Government of Pakistan privatized HBL in 2004 through which AKFED acquired

51% of the Bank's shareholding and management control. HBL is majority owned (51%) by the Aga Khan Fund for Economic Development, 42.5% of the shareholding

is retained by the

Government of Pakistan (GOP), whilst 7.5% is owned by the general public i.e. over

170,000shareholders following the public listing that took place in July 2007.

With a presence in 25 countries, subsidiaries in Hong Kong and the UK, affiliates in

Nepal, Nigeria, Kenya and Kyrgyzstan and rep offices in Iran and China, HBL is also the largest domestic multinational. The Bank is expanding its presence in principal international markets including the UK, UAE, South and Central Asia, Africa and the

Far East. Key areas of operations encompass product offerings and services in Retail and Consumer Banking.

HBL has the largest Corporate Banking portfolio in the country with an active Investment Banking arm. SME and Agriculture lending programs and banking

services are offered in urban and rural centres.

VISION

´Enabling people to advance with confidence and success”

Mission

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

shareholders.

PRODUCTS OF HBL

INDIVIDUAL CUSTOMER

. 1. HBL Car Loan

HBL Car Loan helps you get your preferred car through a simple and hassle-free process, backed by superior service and support. Now you can drive a car you always wanted.