BRAND & HISTORY

On 25th

of August 1941, Habib

Bank inaugurated its operations

with the bank’s first branch in

Bombay. Impressed by its initial

performance, Quaid - e -Azam

Mohammed Ali Jinnah asked the

Bank to move its operations to

Karachi after the creation of

Pakistan. HBL established itself in

the Qaid's city in 1943 and became

a symbol of pride and progress for

the people of Pakistan.

Today, HBL plays a central role in Pakistan's financial and economic

development. It has come a long way from its modest beginnings in Bombay

in 1941 when it commenced operations with a fixed capital of 25,000 rupees.

The Habib Bank Group is a leader in Pakistan's services industry. An

extensive network of 1425 domestic branches – the largest in Pakistan – and

55 international branches has enabled HBL to provide comprehensive

services that meet customer needs. This has ensured thriving client

relationships that form the backbone of the Bank’s operations.

Habib Bank has been a pioneer in providing innovative banking services.

These have included the installation of the first mainframe computer in

Pakistan followed by the first ATM and more recently, internet banking

facilities in all our 1425 domestic branches.

The Bank's towering presence in Pakistan's financial and commercial life has

remained unchanged over the decades. The strength of its brand and image is

symbolized by its prominent Head Office building that has dominated

Karachi's skyline for 35 years.

HABIB BANK VAULES

HBL is firmly grounded with a corporate philosophy that incorporates five

solid values which each individual associated with the bank abides by.

Humility

We encourage a culture of mutual respect and treat both our team

members and customers with humility and care.

Integrity

For us, integrity means a synergic approach towards abiding our core

values. United with the force of shared values and integrity, we form a

network of a well-integrated team.

Meritocracy

At every level, from selection to advancement, we have designed a

consistent system of human resource practices, based on objective

criteria throughout all the layers of the organization. We are, therefore,

able to achieve a specific level of performance at every layer of the

organization.

Team Work

Our team strives to become a cohesive and unified force, to offer you,

the customer, a level of service beyond your expectations. This force is

derived from participative and collective endeavors, a common set of

goals and a spirit to share the glory and the strength to face failures

together.

Culture of Innovation

We aim to be proactively responsive to new ideas, and to respect and

reward the agents, leaders and creators of change.

MISSION STATEMENT

To be recognized as the leading financial institution of Pakistan and a

dynamic international bank in the emerging markets, providing our customers

with a premium set of innovative products and services, and granting superior

value to our stakeholders – shareholders, customers and employees.

OVERSEAS NETWORK

HBL’s INTERNATIONAL/OVERSEAS Network is amongst the

most extensive of emerging market banks with a presence in 26 countries

through 120 offices of the Group and its affiliates. The network spans the

principal financial centers of USA and Europe, and the developed and

emerging markets in Asia, the Middle East and Africa. The Bank’s 50-year

history in the international market provides it a well-established network of

both commercial customers and correspondent banking relationships.

International Banking Group’s (IBG) principal line of business is

trade finance. HBL’s strong presence in all areas of the domestic market

combined with the extensive international network has provided the Bank a

unique ability to capture a large volume of trade flows relating to Pakistan. In

our international units we are also active in financing local third country trade

in niche segments, particularly by leveraging our network. IBG units have a

well-established customer franchise in the South Asian origin communities.

Activity with other customer segments has also been growing particularly in

emerging markets and now forms an important part of our business.

An additional strength of IBG is that all international units are

entirely self funded through stable well diversified local customer deposits or

capital which enables us to develop local commercial and, in specific markets,

consumer businesses while minimizing the inherent cross border exposures.

The year 2002 was the first full year of operations of Habib

Allied International Bank - HBL’s UK based subsidiary - which has greatly

enhanced our capabilities to serve our UK and international customers.

African operations remained buoyant largely due to HBL's established

franchise, utilization of extensive branch network of Habib Bank Limited and

Habib Nigeria Bank (HNB), which is one of the most successful banks in

Nigeria with a country wide retail network of 55 branches and a growing

presence in the corporate sector. HBL has a sizable market share in the

region, which has resulted from focused marketing efforts.

Gulf region generated improved earnings, due to participation in

large syndications, enabling utilization of liquidity in viable business

transactions. The turnaround efforts in the past few years have now been

completed with balance sheet clean up and cost structure rationalization.

In summary, IBG will continue to grow by focusing on its core strengths and

further developing synergies with our domestic businesses and within the

international network.

Identifying opportunities, while keeping a balance in

acknowledging and acceptance of diverse foreign cultures is a task that will

continue to guide and control IBG in the future.

LIST OF KEY EXECUTIVES

Mr. Aziz Rajkotwala, SEVP/MMC & Group Executive, IBG

Mr. Tulu Islam, EVP Operations & IT.

Mr. Rizwan Haider, EVP, Group Risk Manager.

Mr. Asad A. Ansari, EVP / RGM - Europe

Mr. Ashraf M. Wathra, EVP / RGM - Far East

Mr. Hamid Mukarram Baig, EVP / RGM - Africa

Mr. Mohammad Aslam, EVP / RGM - Pasific

Mr. Aman Aziz Siddiqui EVP / RGM - Gulf

Mr. Faiq Sadiq, Country Manager - New York

DOMESTIC NETWORK

Network coverage in Pakistan with respect to HABIB BANK

LTD Head Office and according to its branches……….

THE ORGANIZATION

HIERARCHY OF HABIB BANK LIMITED

SENIOR VICE PRESIDENTS

BOARD OF DIRECTORS ( 7 Members)

G.E,

IOBG G.E,

CPOD

G.E,

CPCS G.E,

RBG

G.E,

CIBG G.E,

ARM

HEAD OF HUMAN RESOURCE HEAD OF FINANCE

HEAD OF INFORMATION TECHNOLOGY

PRESENTED AND CEO

G.E,

AGA

VICE PRESIDENTS

ASSISTANT VICE PRESIDENTS

GRADE ONE(I) OFFICERS

GRADE TWO(II) OFFICERS

BANKS top MANAGEMENT

MANAGEMENT

DESIGNATION

Dr. Zakir Mahmood President And Chief Executive

Officer

Khaleeq Kayani Group Executive, International And

Overseas Banking Group

Zafar Aziz Osmani Group Executive, Corporate Planning

And Organization Development

Sohail Malik Group Executive, Credit Policy And

Company Secretary

Naeem Iqbal Group Executive, Retail Banking

Group

Asad Amir Khan Group Executive, Corporate And

Institutional Banking Group

Salman A. Sheikh Group Executive, Assets Remedial

Management

Ashraf M. Wathra Group Executive, Audit And General

Administration

Khayyam Mahmood Butt Head Of Information Technology

S. Anwar Saeed Head Of Human Resources

Mushtaq Ahmed Head Of Finance

BOARD OF DIRECTORS

STATUS

Zakir Mahmood President And Chief Executive

Officer

Dr. Abdul Wahab Director

Pervez Ahmed Director

Khawaja Iqbal Hassan Director

Shamsh Kassim Lakha Director

Shaukar R. Mirza Director

Ebrahim Sidat Director

M. Riazul Haque Director

Ch Abdul Sattar

VP & Chief Manager

AFZAL AHMAD

CHATTHA

Manager Operations

RAZI UL HASSAN

Manager Credit

RIFAT IQBAL INCHARGE ACCOUNTS

MUMTAZ AHMAD

INCHARGE REMITANCE

JAWAD AHMAD BUTT INCHARGE EXCHANGE

MUHAMMAD AYUB

INCHARGE CLEARING AND

ATM DEPARTMENT

MUHAMMAD KHALID

INCHARGE DEPOSITS

RAO TASLEEM

INCHARGE REMITTANCE

RAB NAWAZ BANDIAL

CUSTOMER SERVICE

OFFCICER JAWED IQBAL BHATTI SYSTEM ADMINISTRATOR

Muhammad Abdullah

Assistant Safeer Ahmad

Muhammad Hussnain

Officer

Bashir Hussnain

Officer

Muhammad Abdullah

Zafar Abbas

M Tahir Ayub

Jamal Din

Assistant

Non-Clerical Staff

Guards

Commandos

INTERNATIONAL BANKING

The Habib bank ltd has wide exposure in international banking.

It has global network all over the world.

DEPARTMENTS IN INTERNATIONAL BANKIND

The following departments are functioning in international banking.

(a). Import department.

(b). Export department.

(c). Foreign currency accounts department.

(d). Foreign remittance department.

INTERNATIONAL

BANKING

CASH MANAGEMENT

SERVICES

HOME

REMMITTANCES

CORRESPONDENT

BANKINGTRADE FINANCE LENDING

(a) IMPORT DEPARTMENT :

Import department perform all type of functions which relates

to imports which

are as under:

i). Import registration.

ii). Opening of L/C.

iii). Lodgment of documents in PAD (payment against documents)

iv). Reporting of monthly imports to SBP.

IMPORT REGISTRATION.

It is compulsory under the law for importer to be register as an importer with

export promotion bureau (EPB). The import registration is applied through

import department according to procedure laid down by EPB.

LETTER OF CREDIT.

Import department open sight DA Letter of credit on behalf of their

Importers. Letter of credit is an undertaking given by the L/C establishing

bank on behalf of the importer in favour of exporter for specified amount

available to him against presentation of completer set of document as per

terms and conditions of letter of credit this letter of credit to subject to

uniform custom and practice of documentary credit of ICC publication.

LODGMENT OF DOCUMENT IN PAD.

When the bank receive the documents from the exporter bank, the

documents are logged in PAD and the following vouchers are passed. DR PAD

CR Foreign bank A/C.

The importer are intimated of ascent the receipt of documents who make the

payment and documents are related the bank endorse the documents in form

of importers who clear the goods from the custom authorities after paying

imports duties. MONTHLY REPORTING TO SBP

At the end of the month on the last date all the import transactions are

reported to SBP on form I.

b) EXPORT DEPARTMENT :

Export department negotiate the simply documents prescribe by

the exporters in term of letter of credit opened by the foreign bank in for

over of exports the following documents are presented by the exporter for

negotiation.

(i). Export Registration certificate issued by EBP.

(ii). Original letter of credit issued by the foreign bank in favour of

exporter.

(iii). Bill of Exchange on DA/DP basis as specified in letter of credit.

(iv). Commercial invoices

(v). Packing list

(vi). Bill of lading B/L or airway bill (AWB)

(vii). Any other specified documents as mentioned in letter of credit .

(C) FOREIGN CURRENCY ACCOUNT DEPARTMENT :

This department open foreign currency account in three major

currency i.e. USD. Pound sterling, Douch mark these account are opened

under new foreign currency rules as lay down by SBP. Old foreign currency

accounts were freeze on 28th

May, 1998. The bank pays profit from 3 to 4

percent in same currency in which the Account has been opened.

(d) FOREIGN REMITTANCE DEPARTMENT :

This department deals with the inward and outward foreign

remittance. The main instruments of foreign remittance are as under:

1). Foreign demand draft. (FDD).

2). Foreign telegraphic transfer (FTT).

3). Foreign mail transfer (FMT).

DOMESTIC BANKING

SERVICE LINE

In today’s world of competitive business, companies often have

to come up with new and innovative products and services in order to

survive in the market and satisfy the needs of their customers. In the banking

sector especially which is quite obviously a service oriented sector, and

which has grown so much over the last few decades over here in Pakistan it

is a major requirement to be always on your toes.

In domestic banking Habib Bank limited deals with the

followings various financial transactions & provide different services to the

customer.

1) CONSUMER BANKING SERVICES:

Habib Bank Ltd. has always tried to cover for this

requirement and along with its normal consumer banking services it

has very often introduced quite a few innovative services in the

market in order to satisfy its customers. As we already know Habib Bank

Ltd. was the first bank to introduce Traveler’s Cheques in Pakistan, and the

Habib Bank Master Card was the first to be introduced in the region.

2) CASH MANAGEMENT SERVICES: Our Cash management Services cover local and cross border

payments, collections, account services and liquidity management for

both corporate and institutional customers.

3) UTILITIES SERVICES:

For the convenience Habib Bank always stands in the way like

other banks, to provide as per standing order facilities to the customers like,

bank paid Electricity Bills, Phone Bills, Gas Bills and other utilities

expenses on the behalf of customer.

4) TRANSFERRING OF MONEY:

The bank provide facility of transferring of money from one

place to another place within the country as well as outside Pakistan the

bank receive normal changes as per their schedule of charges declared half

yearly from their customers for transferring the money. The various channels

of remittance are as under:

1 Demand Draft (DD)

2 Telegraphic Transfer (TT)

3 Mail Transfer (MT)

4 Muhafiz Transfer Cheques (TC)

5) DEALING IN DISCOUNTING OF TITLE TO GOODS :

The bills department of the branch deals with the discounting

various title to goods such as bill of lading (B/L), Railway receipt (R/R),

Truck Receipt (T/R) Airway Bill (AWB).

6) ISSUANCE OF LETTER OF GUARANTEE (L/G) :

The bank issue letter of guarantee on behalf of their customers

financing customer authorities export promotion bureau Sui nothern gas

pipeline, other government agencies as requested by their customers.

PRODUCT LINES

The Habib bank limited has wide range of domestic banking. In

these areas at has various product lines and perform various functions

according to the needs of the customers, which are as under:

1) AUTO FINANCE:

Habib Bank Auto Finance, offers the customer, an expedient

and economical way of fulfilling his requirement of owning the car of his

choice on his terms. Options of affordable down payments, convenient

repayment arrangements in the form of monthly rental payments, which are

tailored to the expected cash flows of the customer are some of the host of

value added features, this product offers its customers. 2) HOME FINANCE :

Habib Bank brings to you the most affordable and convenient

scheme to finance your own house. Habib Bank – House Finance, a demand

/ running finance facility to assist you in turning your vision into a reality.

With adaptable options, varying amounts and flexible tenures you can start

shifting to, building or renovating your own house in a matter of weeks!

3) HABIB BANK VALUE DEBIT CARD:

Habib Bank Value Debit Card is a secure and convenient

payment tool. It is linked to the personal Habib Bank account of the

customer. When the customer uses Value Card at outlets for payment of

daily purchases, the exact purchase amount is deducted from their personal

Habib Bank account.

4) FLEXI LOAN:

Habib Bank FlexiLoans is a personal loan product, which is

available for salaried individuals for a variety of reasons. Whether it is for a

child’s education, a much needed vacation, a daughter’s wedding or even

just a shopping spree, HBL FlexiLoans is a flexible financing scheme which

can actually provide the much needed cash to fulfill all such requirements.

5) HABIB BANK MASTER CARD

Habib Bank MasterCard opens a world of convenience for you.

Be it shopping or traveling or medical expense, HBL MasterCard sets you

free from the hassles of carrying cash, wherever you are. You have the

option to choose from our Domestic or International card… depending on

your requirements.

6) HABIB BANK LIFESTYLE:

Habib Bank’s Lifestyles Financing Scheme provides financing

for household appliances and consumer electronics on easy terms and

flexible tenures. The product aims to bring comfort into each domestic unit

by providing financing for essential domestic items, the purchase of which

may be postponed by households due to paucity of funds. The bank aims to

provide speedy financing so that families do not defer purchase of such

essentials, and all such items are effortlessly accessible as and when

required.

INFORMATION TECHNOLOGY IN “HBL”

Over the last decade or so the field of IT has taken the whole

business world by storm. The banking business especially where large

databases regarding millions of customers is kept has facilitated a lot from

this field. Habib Bank Limited has also introduced computer systems in the

Bank for convenience and efficiency. A special program designed for

working on computers is called the “Habib Bank Limited Multi User Online

Banking System”. The program has been built in COBOL by the software

specialists of Habib Bank’s Computer Centre. The Operating System used at

Habib Bank is the UNIX.

This is an area where the Bank has a lot of margin for

improvement. Still majority of the work is done manually which is unlike

other larger banks of the Country. There is a need to further computerize the

work. One drawback, which the Bank faces in this line, is that it is perhaps

the most difficult thing to do due the very wide area network. It might be

impossible to even link the branches, which are situated at far away places.

Maybe the current step by the management of reducing the number of

unprofitable branches may help the Bank in this cause.

COMPETITORS

SWOT ANALYSIS OF HABIB BANK LIMITED

Habib Bank Ltd. has got a tremendous reputation in the market;

as for years the Bank has been serving the banking requirements of its

customers. Although due to the name of the Government being attached with

the bank, people have a lot of confidence in it, but on the other hand they

take Habib Bank as other Government institutions which don not perform

their duties properly. This they do without realizing the fact that the Bank is

a Limited Company with a management of its own. The fact can only be

understood either by those customers who have been long served by the

Bank or by those who are or have been actually the part of the working of

the Bank.

Habib Bank Ltd. enjoys a 22% market share as far as the

domestic deposits are concerned, which is an important factor to measure

the success of a Bank. This percentage is second only to National Bank of

Pakistan. The Bank has got the largest number of branches in Pakistan and

also has the highest number of employees. The most recent figures although

not known due to the current restructuring.

With all the good things in it, every business has always got

some internal strengths and weaknesses pointing out which, it can create

opportunities and avoid from threats.

STRENGHTS

NAME STRENTH (good will):

As discussed earlier Habib Bank Limited has got a tremendous

reputation in the market. It is very often seen that a business is renowned

merely due to its name. This name is often called goodwill of a business. It

is not easy for any business to create goodwill in the market. It takes

something special. Habib Bank due to its long standing services has

managed to create its name in the banking market. And so the name itself of

the Bank stands as strength for the Bank.

WIDE RANGE OF NETWORKING:

Another huge strength which Habib Bank Ltd. enjoys is that it

covers a very wide network not only in Pakistan but also in foreign

countries. Its 1425 local and more than 55 foreign branches, associates and

affiliates comfortably make up the largest network in the banking sector

today. This number is even greater than National Bank of Pakistan. This

not only widens the customer base for the Bank but also makes it easy for

people living in far away places where other Banks are not operating. And

this is a proven fact that Habib Bank has its Branches in those places where

no other banks are involved. Therefore the Bank also manages to exploit the

market niche in these places.

INTERNATIONAL BANKING/COVERAG:

As already mentioned Habib Bank has got more than 55

branches, affiliates and associates operating in foreign countries. Other

than helping the Bank exploring the international markets it adds to the

convenience of the customers, especially those who are settled in foreign

countries and send in remittances to Pakistan. Similarly people traveling

abroad also assist from this facility as they can use foreign exchange

traveler’s Cheques etc.

WIDE RANGE OF SERVICES:

As Mentioned earlier Habib Bank Limited offers a very wide

range of services for its customers. In today’s service industry continuous

improvement and innovation are just inevitable. Without which no service

business can survive in the market. Habib Bank always keeps good care of

this aspect of their business and continuously comes up with new and

innovative ideas. As already mentioned Habib Bank is the pioneer of

introducing Master Cards and Traveler’s Cheques in Pakistan. Similar

other schemes like the flexi loans, Crore Pati Scheme, Qarz-e-Hasna

Scheme etc go along way in proving this specific point regarding the Bank’s

policy.

ATM FACILITY:

Other than the above mentioned broader aspects which stand as

a great strength for Habib Bank Ltd., several other aspects add to these

strengths of the Bank. The large ATM coverage of Habib Bank Auto Cash

is a huge strength. Now other than large number of branches of Habib Bank,

the Bank shares a large ATM network with Askari Commercial Bank Ltd.

and ABM Amro Bank. Now other banks are following suit to this new idea

of ATM cards. This again proves the innovativeness of Habib Bank Limited.

BANK FOR ALL:

As depicted by it’s advertising, Habib Bank Limited stands to

serve people of all types. That is why people ranging from low grade

government employees up to millionaire businessmen are customers of the

Bank. Where Government employees are given the advantage of opening an

account without any deposit on the other hand the Bank offers special

facilities for its valued customers. The Bank is exclusively involved in

disbursing salaries of many private and public organizations, which again

increase the customer base. Then again the localities of the branches in large

commercial areas of different cities allow different businesses ranging from

sole proprietors to large companies to avail the facilities of the Bank.

WEAKNESSES

LESS TRAINED STAFF:

As it has been discussed earlier, that a large number of staff at

Habib Bank are under trained as well as unqualified. The involvement of

such employees in a business severely affects the efficiency. These

employees also add to the inconvenience faced by the customers, as they

lack any sort of formal training for customer services. This adversely affects

the image of the Bank.

ONLINE BANKING:

Online Banking is the most recent development in the field of

banking. Through this type of banking a customer can easily make

transactions sitting at his home through the telephone. The transactions

maybe regarding payment of bills, transfers of money etc. Unfortunately

Habib Bank at the moment is lagging behind in this department in

comparison with other established banks. Even the direct competitors like

Askari Bank are way ahead in this field.

MASTER CARD:

It is a known fact by now that Habib Bank Master Cards the

first credit cards to be introduced in the Pakistan Market. Already more that

30,000 people are HBL Master Card holders. Unfortunately Habib Bank has

not been issuing these cards for the past few years. There seems to be a

conflict within the management about the issuance of these cards. The Bank

should try and issue further so that it could compete in this field too.

WIDE AREA TO HANDLE:

Although on one side it seems that the spread of a business in

such a wide area is very profitable for any business. But on the other side it

is very difficult to control such a business which is not only spread to each

and every corner of the country but also has its branches in foreign

countries. The Major problem, which arises of having such a huge area to

cover, is that a consistent check and control becomes almost impossible. In

large cities although it is possible for auditors or higher executives to make

surprise visits to check the working of a specific branch, but in far away

places it is almost impossible to make such surprise visits. Similarly

controlling an HR, which is spread over huge distances, is also not very

easy. In short such a wide spread business is somehow a weakness of the

Bank.

LIMITED PERSONAL LOAN:

Although the Habib Bank Flexi-Loans seem to be a very

attractive package and indeed many people have taken advantage of the

scheme, but it has been observed that many people have to return back

unsatisfied due to reasons which can somehow be eliminated or relaxed. One

such limitation is that the person wanted to acquiring the loan should be an

employee of a company listed with the Bank. This in one reason many

people can’t avail this opportunity.

ADVERTISING CAMPAIGNS:

Habib Bank does not rely much on Advertising through

television or any other type of media. Although the advertisement campaign

of Habib Bank Muhafiz Traveler’s Cheques has been quite successful and

is still running on the electronic media, but other products such has the

ATM cards and Flexi-Loans certainly need more promotion. Very little

people know the actual worth of these instruments. Habib Bank basically

relies on the relations of its employees with the outsiders and the customers

themselves for the purpose of promotion. The idea has to be given a bit

broader view and other methods should be used for promotion.

LACK OF INFORMATION TECHNOLOGY:

Information Technology is one field where Habib Bank has a lot

of room for improvement. Although in the larger branches of larger cities

computers are used to some extent, but this system has to be transferred to

the whole network. This will certainly make it very convenient for carrying

inters city transactions.

Although it is not the easiest thing to do in such a wide-spread business, but

sooner or later the Bank has to move ahead in this field also.

OVERLOAD WORKING ENVIRONMENT:

At Habib Bank the workload seems to be too much on the

employees. Especially after the recent cut down in employee numbers it is

almost impossible for the employees to leave their offices before 8 or 9 in

the evening. Such extra burden definitely increases the stress of the

employees. They feel de-motivated and eventually their efficiency declines.

One good proof of this is that a lot of employees are very happy to take the

Golden Hand Shake scheme being offered by the Management.

OPPORTUNITIES

1) COST REDUCTION:

Extra costs due to large number of employees and a number of

unprofitable branches operating throughout the country has been a major

problem for Habib Bank Ltd. The Management however has been working

on this problem for the last year or so more due to the pressure of

international Financial Institutions. The Bank overall has a great opportunity

of cutting down its extra costs by downsizing and shutting down the

unprofitable branches.

2) MASTER CARDS :

Habib Bank was the innovator in introducing Master Cards in

Pakistan. But unfortunately the Bank hasn’t been issuing Master Cards for

quite a while now. Habib Bank has a great opportunity of extending its line

of services by issuing further Master Cards and competing with other Banks

3) IMPROVED PROMOTIONAL TECHNIQUES :

The Bank although here now and then has been involved in

good promotional techniques especially through the television, but it

certainly has more opportunities to improve a lot more. The Bank can

certainly opt of sponsorships and arrange different matches etc. e.g. Habib

Bank is the official sponsor of the Pakistan National Hockey Team.

Similar other techniques can be used to promote their products

4) COOPERATION WITH OTHER BANKS :

Like the recent collaboration of Habib Bank with Askari

Commercial Bank Limited and ABN Amro Bank in ATM cards, the Bank

has other several other opportunities to join hands with other banks or even

other businesses like insurance companies etc. Such techniques not only

come out to be convenient for the customers of the Bank but it also reduces

competition at least in that one area where the collaboration is going on. And

further it also increases the consumer base for the bank.

THREATS

1) DE - MOTIVED EMPLOYEES :

Employees are without any doubt the greatest assets of any

business. Therefore its is a major responsibility of the management to make

sure that the employees are working in least stress full conditions and in a

healthy work environment and where people are secured and satisfied about

their jobs. Unfortunately for Habib Bank, none of the above-mentioned

aspects are given due importance.

2) LARGE NUMBER OF COMPETITORS :

The Banking Sector has grown unbelievably over the last

decade or so in Pakistan. This can we judged by the fact that only in

Islamabad currently more than 40 Scheduled Banks are operating. Although

Habib Bank does not face a direct competition from all as few are not of that

caliber and others don not fall in the same category.

For Example:

Metropolitan Bank Limited. Soneri Bank. Bank Al-Habib. City Bank.

Standard Chartered Grind lays Bank. National Bank of Pakistan. Allied

Bank limited. United Bank Limited. ABN Amro Bank.

Askari Commercial Bank Limited.

3) REDUCED AREA NETWORK/BANKING :

As often said, “the mirror has two sides”. The problem of a very

large area network and the existence of a large number of unprofitable

branches is although genuine but this is one problem which has to be

eradicated with due care. The management will have to make sure that it

does not close down the profitable branches. As it has been evident

especially in case of National Bank of Pakistan that many profitable

branches have been shut down due to pressure.

RECOMMENDATIONS

Keeping in view the above mentioned SWOT analysis, and after having an

in-depth knowledge of the overall operations, functions and departments of

Habib Bank Ltd. following are the recommendations and solutions which

could be helpful for the Bank in eliminating its weaknesses

The Bank needs a lot of improvement in the area of customer services. It

is one area where the Bank lags behind especially while competing with

the international Banks

Although the Bank has made quite an efficient use of technology over the

last few years or so, but there is a lot of room for further deployment of

technology. Still around 50-55% work is done manually. This is very

much in comparison to the good banks operating in Pakistan. By doing so

the Bank can certainly increase the efficiency of its employees.

A lot of hard work is required for increasing the quality of the

manpower working at Habib Bank. The recent downsizing has although

some how targeted such uneducated and under trained staff but not to a

great extent. Maybe downsizing is not the proper solution. The Bank can

certainly improve the quality of its human resource by giving proper

training to them regarding technology, customer services and other

related aspects of the Bank.

The Bank will also have to take a major step in solving the problem of

severe workload on the employees. The problem may not be the same in

every branch but then it is the responsibility of the management to look

carefully into this aspect and allocate the optimum level of employees in

each branch.

A proper re-structuring is definitely required at Habib Bank. No doubt

Habib Bank Limited is undergoing a drastic change with a lot of branches

being closed and many people being terminated. But it has been observed

that the management has got it completely wrong in some areas. Several

profitable branches have been shut down which has effected the overall

profitability of the Bank.

The management has to take some efficient steps in order to motivate its

employees. The recent downsizing and the resulting increased workload

has severely damaged the moral of the employees. They haven’t only lost

confidence in the management but are also willing to leave the Bank by

taking the Golden Handshake Scheme in order to avoid further stress.

Further there seems to be a lack of communication and interaction

between the branches and the top management sitting at the headquarters.

As mentioned earlier Habib Bank has a great opportunity of expanding

its consumer base by cooperating with other banks like the cooperation

incase of the ATM cards. By doing so the bank will not only satisfy its

customers but will also decrease the threats from its competitors.

CONTENTS

HISTORY & BRANDS

HABIB BANK VALUES

MISSION STATEMENT

OVERSEAS NETWORKING

DOMESTIC NETWORKING

ORGANIZATION STRUCTURE

HIERARCHY OF THE BANK

BANK TOP MANAGEMENT

INTERNATIONAL BANKING

Departments

DOMESTIC BANKING

Service Line

Product Line

ROLE OF INFORMATION TECHNOLOGY

COMPETITORS

SOWT ANALYSIS

RECOMMENDATIONS