49186543 arslan hbl report
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February 21, 2011 [HABIB BANK LIMITED:]
Report on
Internship AT HABIBBANK limited
FromARSLAN AHMED BHUTTO
IQRA UNIVERSITY
ACKNOWLEDGEMENT
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No one can say that I am perfect, everyone should admit that
without the help of ALLAH and His people a man cant get anything
so I bow my head before Almighty Allah with gratitude. I am also
very much thankful and presents salute to many individuals who
have helped me in shaping this report. I am also very much thankful
to lot of former fellows and contemporary colleagues who took the
time and trouble during the last few days to speak to me about the
way this text could be further improved. I have no words to express
my gratitude to my advisor Mr. Kashif Ullah Khan for his intellectual
guidance without which it could have been rather difficult for me to
complete this report.
I am also very thankful to the staff Habib Bank Limited
KHEKASHAN branch especially to Mr. Akbar Ali (Branch Manager)
who provided me an opportunity to work in friendly environment.
It was an honor for me to work with:
Mr. Kashif ullah Khan (Operations Manager)
Mr. Syed Muhammad Hafeez Ullah (Assitant Manager)
Mr. Noman Ashraf(Retail BankingOfficer)
Mr. Imran Hamdani (Head cash Department)
Table of Contents
No. Description Page No.
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February 21, 2011 [HABIB BANK LIMITED:]
01 Executive Summary 05 to 06
02 Evolution of Banking 07
03 Commercial Banking in Pakistan 08 to 10
History of Banking in Pakistan04 About HBL Pakistan 10 to 19
History and Background
Privatization
HBLs Mission, Vision and values
Board of Directors
Management
Corporate information
05 SWOT Analysis 20
06 Operations of HBL 25 to 57
Banking Departments in HBL
Products and services of HBL
07 Learning and Duties as an Intern 58 to 64
Foreign Exchange Department
Bills clearing Department
Credit Department
Account, lockers, ATM Department
Assignments
Impact on my Career
08 Award and Financial performance in 2008 63 to 73
09 Recommendations 74
10 Glossary, Bibliography, Index 76 to 80
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executive summaryEvery student of Bachelors in Business Administration at IQRA UNIVERSITY
has an essential requirement to do internship in any of the well reputed
organization. The purpose of this program is to acquaint the students with
practical applications of theoretical concepts taught to them during conduct
of their BBA program. The internship in Habib Bank was a nice opportunity
to have a close comparison of theoretical concept in practical field,involving the use of primary and secondary data. All the efforts on the way
are summarized in shape of this Internship Report.
Report starts with the topic evolution of banking. The word 'Bank' is said to
have been derived from the words Bancus or Banque or Bank. This history
of banking is traced to as early as 2000 B.C. Talking about commercial
banking in Pakistan It was very difficult for Pakistan to build up its own
Banking system immediately after independence without sufficient
resources. By 30th June 1948 the number of schedule banks in Pakistan
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declined from mere scratch. Today there are more than 7000 branches of
commercial banks along with an established network of supplementary
financial institutions. All this development in the banking sector is the result
of untiring efforts of six decades. 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.
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). This report
contains information about HBLs board of directors, management, mission,
vision and values. HBLs operations are discussed in light of its working
department in the branches like cash, clearing, foreign exchange and
accounts department and also in light of its services and products which it
is offering to customers whether they are individual, business, corporate or
agriculture field related customers. HBL is currently offering phone banking,internet banking and various cash management services for the facilitation
of its customers. HBLs car to car loan has its own uniqueness in Pakistans
banking sector. HBLs branch network is extended all over the Pakistan
which has its competitive edge over all other private sector banks in
Pakistan.
During the time of my internship in Habib Bank Khekashan Branch Karachi,
I got the chance to work in all the departments of HBL working there.
Duties and learning in each department is given in this report. Talking
about financial performance of the bank in 2010 all the financial indicators
are showing positive results when the financial performance of the bank in
2010 is compared with financial performance of 2009. During 2010 HBL
also won some awards. At the end of this report I have given my suggestion
for the improvement of the bank.
I had been assigned to several departments to learn and experience the
working of branch banking and on the basis of grasped knowledge and
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experience, this report is being presented to the management of Habib
Bank Limited.
Evolution of bankingThe word 'Bank' is said to have been derived from the words Bancus or
Banque or Bank. This history of banking is traced to as early as 2000 B.C.
The priests in Greece used to keep money and valuables of the people in
temples. These priests thus acted as financial agents. The origin of banking
is also traced to early goldsmiths. They used to keep strong safes for
storing the money and valuables of the people. The persons who had
surplus money found it safe and convenient of deposit their valuables with
them. The first stage in the development of modern banking, thus, was the
accepting of deposits of cash from those persons who had surplus money
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with them.
The goldsmiths used to issue receipts for the money deposited with them.
These receipts began to pass from hand to hand in settlement of
transactions because people had confidence in the integrity and solvency ofgoldsmiths. When it was found that these receipts were fully accepted in
payment of debts; then the receipts were drawn in such a way that it
entitled any holder to claim the specified amount of money from
goldsmiths. A depositor who is to make the payments may now get the
money in cash from goldsmiths or pay over the receipt to the creditor.
These receipts were the earlier bank notes. The second stage in the
development of banking thus was the issue of bank notes.
The goldsmiths soon discovered that all the people who had deposited
money with them do not come to withdraw their funds in cash. They found
that only a few persons presented the receipts for encashment during a
given period of time. They also found that most of the money deposited
with them was lying idle. At the same time; they found that they were being
constantly requested for loan on good security. They thought it profitable to
lend at least some of the money deposited with them to the needy persons.
This proved quite a profitable business for the_ goldsmiths. They instead of
charging safe keeping charges from the depositors began to give them
interest on the money deposited with them. This was the third stage in the
development of banking.
COMMERCIAL BANKING INPAKISTAN
It was very difficult for Pakistan to build up its own Banking system
immediately after independence without sufficient resources. Following theannouncement of the partition plan in June 1947 there was a haste
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movement on the parts of banks to transfer their funds and accounts across
the borders. The banks having their registered offices in Pakistan were
transferred to India. In an effort to bring about the collapse of the new state
by the persecuting an international policy of withdrawal, the Indian bank
offices closed quickly. Those banks, which stayed, were considering the
winding up of their business. By 30th June 1948 the number of schedule
banks in Pakistan declined from mere scratch.
Today there are more than 7000 branches of commercial banks along with
an established network of supplementary financial institutions. All this
development in the banking sector is the result of untiring efforts of four
decades.
History of Banking In Pakistan
The interesting point which I observed during the span of mine internship
was the historical background of Banking & Financial sector which is the
one in which great improvement and growth is observed since the
formation of Pakistan. For studying the growth of this sector we can divide
it into three stages, which are as follows:
a) Pre-Nationalization Era
b) Nationalization Era
c) Post Nationalization Era
PRE NATIONALIZATION ERA:
There were only two Muslim banks in Indo Pak before partition; they
were .Habib Bank Ltd. (est. in 1941 at Bombay) & Australia Bank Ltd. (est.
In 1944 at Lahore). All other banks, at that time, were either owned by
Hindus or Foreigners.
At the time of partition there were 631 bank branches in area which came
under Pakistani control. But due to blood shed and violence at large scale,
mostly branches were closed and the disparity can be assessed from the
fact that on July 1948 there were 195 branches with deposits of Rs.88
million only.
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Also a factor lagging in Pakistani industry was a central bank of its own, by
that time Reserve Bank of India was acting as central bank for both
countries and same currency notes were used in both territories. But
Reserve Bank of India was biased and Set down Pakistan on many
occasions such as the issue of funds transfer etc.
1) Inauguration of State Bank of Pakistan (SBP) on 1st July, 1948.
2) Setting up of National Bank of Pakistan in November, 1949 tocontrol the 'jute' export in East Pakistan and to act as agent ofSBP.
3) Larger powers were given to SBP through SBP Act (1956) forcontrolling purposes.
4) Banking Companies Ordinance 1962 for protection and guidanceto banks.
5) Establishment of specialized banks, such as ADBP (1952);
a) HBFC (Nov, 1952);
b) P1CIC (Oct, 1957)
c) IDBP (Aug. 1961);
d) NDFC (Jan, 1973).
These were the steps, which built a strong banking sector in Pakistan. Thisis also obvious from the facts that by 1973 there were almost 10 foreign
banks were working in Pakistan and all over deposit position was around
Rs.2300 crore (23,000 million). A bird eye view of 5 top banks was as given
below:
BANK POSITION IN 1973
BANK NO. OF BRANCHES DEPOSITS
(Rs in Million)
HBL 667 6,160
NBP 579 5,660
UBL 497 5,670
MCB 506 1,640
ABL 145 570
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B) NATIONALIZATION ERA
On January 01, 1974 all Pakistani banks were nationalized through
Nationalization Act 1974. Under this law all Pakistani banks became a public
property. All small banks were merged in bigger banks to create 5 major
Pakistani banks Pakistani banks. These banks were to control by Pakistan
Banking Council. There are still controversies about this act of government
as whether it contributed in success of failure of banks. However the major
changes after nationalization were as follows:
Working of banks was extended to under developed areas.
Market expansion for credit and deposits.
Decrease in service level of bank officers.
Decrease in profitability as well.
However the effect of expansion was enormous and it can also be depicted
with the help of table 2 which shows the deposit & branch positions of
different nationalized banks.
BANK POSITION IN 1992
Bank No. of
Branches
Deposits (Rs. In
Millions)HBL 1926 153,431
NBP 1448 128,679
UBL 1684 87,482
MCB 1288 50,013
ABL 750 33,757
TOTAL 7096 453,362
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Structure of Financial Sector in Pakistan
Scheduled Banks
(47)
- Commercial banks
- Specialised banks
BFIs
- Modarabas
- Leasing companies
- Mutual funds
- Specialised financial (DFIs)
- Investment banks
- Housing Finance Companies
Speci alised Banks Commercial Banks
Foreign Banks Domestic Banks
February 21, 2011 [HABIB BANK LIMITED:]
C) POST NATIONALIZATION ERA
In 1990 the government decided to denationalize all the nationalized
institutes. Some was also suggested in banking sector. For this purpose,
amendments were made to Nationalization Act 1974 and two nationalized
banks were privatized. Along with this a permission to open banks in private
sector was also granted. The rules regarding establishment of new banks
and for incoming foreign banks were also relaxed.
The- privatized banks are;
a) MCB taken up by a private group in April, 1991
b) ABL taken up by its own employees in September, 1991.
c) UBL taken up by UAE party in 2002.
d) December 29, 2003 HBL was taken by AKFED
After these changes a large number of private and foreign banks
started their operations in Pakistan and the present status can be seen
from the following figure:
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AboutHabib 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. With a presence in 25
countries, subsidiaries in Hong Kong and the UK, affiliates in Nepal, Nigeria,
Kenya and Kyrgyztan and representative 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 Banking. HBL has the largest Corporate
Banking portfolio in Pakistan with an active Investment Banking arm. SME
and Agriculture lending programmes and banking services are offered in
urban and rural centers. In the UK and GCC, HBL focuses on trade finance
and remittances for the South Asian Diaspora in addition to basic banking
facilities. HBL has always been a bank and a brand for the masses, with a
history that is inextricably linked with the history of Pakistan itself. As it
continues to grow, both locally and abroad, it strives to embody its brand
personality: honest, approachable, and inclusive. HBL is currently rated
AA+ (Long term) and A1+ (Short term)*. It is the first Pakistani bank to
raise Tier II Capital from external sources.
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*Rating given by JCR-VIS
HISTORY AND BACKGROUND
Habib Bank Limited was established by Mr. Ismail Habib (Late) on August
25, 1942 at Bombay. It was the first Muslim Bank of the sub-continent. It
was established with a paid up capital of Rs. 2.5 million. At an early stage,
the number of its branches was only 12.
HBL established operations in Pakistan in 1947 and moved its head office to
Karachi. Our first international branch was established in Colombo, Sri
Lanka in 1951 and Habib Bank Plaza was built in 1972 to commemorate the
banks 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.
PRIVATIZATION OF HABIB BANK
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.
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VISION, MISSION AND VALUES
VisionEnabling people to advance with confidence and
success.
MissionTo make our customers prosper, our staff excel and
create value for shareholders.
ValuesOur values are the fundamental principles that define our culture and are
brought to life in our attitude and behaviors. It is these values that make us
unique and unmistakable. Our values are defined below:
ExcellenceThis is at the core of everything we do. The markets in which we operate
are becoming increasingly competitive, giving our customers an abundance
of choice. Only through being the very best in terms of the service we
offer, our products and premises - can we hope to be successful and grow.
IntegrityWe are the leading bank in Pakistan and our success depends upon trust.
Our customers - and society in general expect us to possess and
steadfastly adhere to high moral principles and professional standards.
Customer FocusWe understand fully the needs of our customers and adapt our products
and services to meet these. We always strive to put the satisfaction of our
customers first.
Meritocracy
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We believe in giving opportunities and advantages to our employees on the
basis of their ability. We believe in rewarding achievement and in providing
first-class career opportunities for all.
ProgressivenessWe believe in the advancement of society through the adoption of
enlightened working practices, innovative new products and processes and
a spirit of enterprise.
Board of Directors
Head Office
HBL Plaza
I. I. Chundrigar RoadKarachi-75650,Pakistan.Tel : +92 (21) 2418000[50 lines]Fax : +92 (21) 9217511
Registered Office4th Floor, Habib Bank
TowerJinnah AvenueIslamabad, Pakistan.
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NAME DESIGNATION
Sultan Ali Allana CHAIRMAN
R. Zakir Mahmood PRESIDENT & C.E.O
Mushtaq Malik DIRECTOR
Ahmed Jawad DIRECTOR
Yasin Malik DIRECTOR
Moez Jamal DIRECTOR
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Tel: +92 (51) 2872203Fax: +92 (51) 2872205
Registrars
THK Associates (Pvt.) Ltd.Ground Floor, State Life Bldg No. 3Dr. Ziauddin Ahmed RoadKarachi, Pakistan.Tel: +92 (21) 111-000-322
WebsitesCorporate website:www.hbl.com
Treasury website:www.hblgtr.com.pkEbank (internet banking):www.hblebank.com
AuditorsKPMG Taseer Hadi & Co.Chartered Accountants
GLOBAL LOCATION
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SWOT ANALYSIS
Strengths
Strength can be defined as an area where a company is best at doing
something or a feature that puts the company at an advantage in
comparison to its competitors. HBL enjoys the following strengths:
HABIB BANK is a well established bank enjoying long history of over 65
years of experience and profitable operation.
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.
HBL has been very effective in controlling costs as it successfully
restructured itself after its privatization. During this process more than
1,600 employees were relieved under a golden handshake scheme and
110 branches were closed.
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Excellent branches appearance gives an edge to HBL over other banks.
The branches are well furnished even in less developed areas where
other banks branches give a poor view.
HBL has the ability to bring innovative products and services likepersonalized service, electronic funds Transfer, sophisticated financial
products such as electronic banking, auto-teller machines and evening
banking.
The Banks Rupee Traveler Cheques have been market leaders for the
past six years.
HBLs car to car financing scheme is unique in auto loan segment.
Habib bank is an internationally recognized name in banking servicesand products.
HBL has forged strategic alliances with international banks for expanding
its network further, both locally and internationally.
Weaknesses
A weakness is defined as an area in an organization where the organization
is not as good at doing something as its competitors or a thing which an
organization lacks thus putting the organization at disadvantage in
comparison to its competitors. Based on the above definition, HBL has the
following 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
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senior staff cannot apply the modern and innovative techniques of
management in decision making.
Mission of HBL is not well defined.
Though HBL is second largest bank in Pakistan, yet the fact remains that
it is not market leader as NBP. Its total assets are always less than NBP
total assets.
Now as it is a privatize bank that is why GOVERNAMENT support to HBL
decreased as it was in past
Opportunities
An opportunity can be defined as a change in external environment which if
properly exploited with the organizational strengths will result in enhanced
sales, market share, or income. Using its strengths, HBL can avail the
following opportunities. Opportunities require explanation therefore I have
used headings instead of arrows
E-BankingGenerally speaking, three factors, quickness, easiness and cheapness have
become the catchwords for the competitiveness and usefulness of all the
business operations. Particularly it is commonplace today to say that
banking is undergoing a radical transformation. The symptoms are new
products, new players, new channels etc. This transformation is taking
place across all sectors of the banking industry. That is why Habib bank
urgently needs to improve their ability, to think strategically about IT
investments. Only those banks that use their technology resources
effectively have the opportunity to secure real competitive advantage in
this fast-changing industry through real product or service differentiation.
High mark up ratesOf late markup rates have increased considerably. Present rates are 4%
above KIBOR i.e. 16% appx. High markup rate has decreased the interest of
people in loaning from from banks. Habib bank can increase its income by
offering loan at lower interest rate than other banks.
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ONLINE BANKINGIt is doing banking transactions through our home P.C. The banks that do
business through net have Websites. The customer clicks into the Website
and gets the history of the bank. Then he can demand the necessary
application form through the net. He fills in the form and passes it on to the
bank. The Online banking is fast gaining ground in Pakistan. Some software
companies are also offering network-banking facilities. So Habib bank
should focus heavily on providing online banking faculties to its customers.
Currently it is doing the same.
CORPORATE BANKING TERMINAL (CBT)Large corporate customers can log into the bank's database and have
access to their accounts/transactions from their business houses. This
facility has still not been started for customers in Pakistan. So Habib can
focus on that.
AUTOMATIC TELLER MACHINE (ATM)
This system is known as "Any Time Money" because it allows customerswho have an ATM card to withdraw money at any time from the bank
without interacting with human teller. Since the ATM machine can be
installed anywhere like petrol bunks, markets, railway stations etc, and can
well be linked to the main computer. It allows customers to transact with
the bank 24 hours a day and 365 days a year. They allow the customers to
transfer money to and from accounts to view account information, to
receive cash. It can also be used to deposit cheques and cash into theaccounts. No bank in Pakistan is offering this service currently. So an
opportunity exists for Habib bank to differentiate.
Rate of return
The range and choice of products available & offered by the commercialbanks is limited. Rates of Return / Profits on Deposits are so low and
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unattractive that very limited options are available to the depositors. They
do not match the current rate of inflation. HBL differentiate and increase its
deposit by offering attractive rate of return on deposits.
Threats
Threat can be defined as a change in external environment which if not met
with proper strategies will result in loss of revenues, market share, or
income. In the context of HBLs external environment, the following
potential threats exist:
Other private commercial bank with sound profitability is also a threat to
HBL e.g. UBL, Alfalah, MCB etc
The Rupee Travelers Cheque (RTC) sales volumes may be affected on
account of regulatory restriction imposed by SBP on issuance of large
value denominations.
For the last of 2 to 3 years, Pakistan is facing economic and political
instability which is a big threat.
Foreign banks are flourishing in field of consumer financing.
Afghan war and Iraq war has a deep effect on the economy of Pakistan,
which has affected HBL.
Increased regulations from State Bank of Pakistan may affect its
business.
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BANKING DEPARTMENTS of HABIBBANK
Various departments are working in all the branches of Habib bank to
facilitate the customers. Following are the banking departments functioning
in HBL Jinnah Chowk branch Sahiwal.
1. ACCOUNT OPENING DEPARTMENT.
2. CASH DEPARTMENT.
3. CREDIT DEPARTMENT.
4. LOCKERS DEPARTMENT.
5. BILL CLEARING DEPARTMENT.
6. FOREIGN EXCHANGE DEPARTMENT.
7. I.T DEPARTMENT.
Accounts opening department
Basic function of the accounts department is to open new account and
facilitate the customer for the account opening purpose. There are certain
formalities which are to be observed for opening of an account with a Bank.These formalities in brief are as under:
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FORMAL APPLICATION:
The customer is to fill "Account Opening Form. It is a formal request by a
customer to the bank to allow him to have and operate the account.Documents require for opening an account:
Copy of CNIC
Service certificate or student card.
Utility bill
Provisional receipt
KYC (Know Your Customer)
SPECIMEN SIGNATURE:
When the Banker is satisfied about the integrity of the customer, he agrees
to open the account. The Banker obtains the specimen signatures of the
customer on the signature book or on card.
Posting the account on the system:
After that officer has to post the new account on computer system for
further processing. During the process customer id and account number is
generated. New account remains active for one day after that it is blocked
by the head office until CNIC of the customer is verified from NADRA.
Cheque book issuing:
After the CNIC verification account opening officer has to issue a cheque
book to customer so that he can be able to make withdrawal from his
account. Now a day in Habib bank cheque book issuing process is
centralized that take 06 days to complete.
SECRECY:
The secrecy of depositors account is the. Responsibility of every official
engaged in the Bank service.
Types of accounts:Individual accounts:
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Individual accounts are the most common personal investment accounts.
Open by single person.
Join Account:
A joint account occurs when two or more than two customers have one
account. The parties to a joint account are considered in law as they are
one person.
Business accounts:
Business accounts can be opened by institutions, companies, partnerships,
trusts and non-profit organizations. Following documents are required.
BOOKS RELATING TO CUSTOMERS:
Pay-in-Slip
When money is to be deposited in the bank the pay in slip is to be filled.
The object of this book is to provide the customer with the banks
acknowledgement for receipt of money to be credited his account.
Cheque Book
A chequebook contains a number of cheques, which is given to a customer
upon written request and after marking the payment for the chequebook. It
enables a customer to make withdrawal from his account or make payment
to various parties by issue of cheques.
GROUNDS FOR CLOSING THE CUSTOMERS ACCOUNT:
The banker may close the account of the customer due to following
reasons:
i. Notice by a Customer
ii. Death of a Customer
iii. Customers Insanity
iv. By order of court
I) NOTICE BY CUSTOMER
The banker closes the account of the customer on the application of the
customer for closing his account.
II) DEATH OF CUSTOMER
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On death of his customer, the bank must stop payment on cheques drawn
on him by the deceased customer because the death revokes his authority
to pay such cheque. The heirs or the executors of the deceased customer
are not authorized to operate on the account; it can act only in accordance
with provisions mentioned in the letter of probate issued by a competent
courts.
III) CUSTOMERS INSANITY
If the customer becomes insane or mental it terminates the bankers
authority to act as his customers agent. Since the banker customer
relationship comes to end, in such as situation, it is usually considered that
the bankers authority to pay his customers cheques is revoked by noticeof insanity. However, the bankers treat their customers as it unless a fairly
inclusive evidence of the customers insanity is availableto them.
IV) ORDER OF COURT
A court of law may serve a banker with an order in garnish proceeding in
execution of a decree prohibiting him from honoring a customers cheques.
Cash Department
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ash Department is very sensitive and risky part of the bank. Very
causations and competent personnel are needed for the Job. HBL
has really such a diligent staff with appreciable competencies and
will to do work. Main function of cash department is to deal with cash
payment and cash receipts.
C
Cash deposit procedure:
The customer fills the pay slip. The cashier receives the pay slip and cash.
He counts the cash and makes the detail of the notes at the back of the pay
slip. Then he compares the detail with amount written on slip and signs the
pay Slip. Then he credits the entries in the computer by serial No, accounttype, Account number and amount. Puts the stamp of the Cash Received
on the payment slip. The first portion is for bank record while other one is
given to the customer.
Cash payments procedure:
When a customer comes to withdraw a certain amount from his account, he
brings a Cheque along with him. In this case the following steps are taken.
The cashier receives the cheque and checks it whether it is post dated or
predated. Cheque can be cashed within six months. A predated cheque
cannot be cashed. He takes two signatures at the back of the cheque from
the bearer. He gives the cheque for posting at the computer. The computer
checks out whether there is balance in the account or not. Other
instructions are also received e.g. blocked, frozen, Etc. the posting is done
in the computer and the cheque is stamped posted with the serial number
and date. He gives the cash to bearer and the respected account is debited.
Online fund transfer:
Another function of the cash department is of online transfer of funds.
Customer has give filled remittances form with cash or without cash (from
account transfer) to the cashier in cash department who will then credits
the beneficiary account.
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Balancing cash at the end and transferring excess cash:
At the day end cash department is responsible for balancing the cash.
Physical cash should be balanced with the amount in the computer. Jinnah
Chowk branchs limit for cash is 40 million which it can keep within thebranch over the night excess cash is transferred to NBP.
Credit Department1. Introduction
2. Securities.
3. Types of credits
INTRODUCTION
The function of credit department is to lend money in the form of clean
advances, against promissory notes, as well as secured advances against
tangible and marketable securities. The bankers prefer such securities that
do not run the risk of general depreciation due to market fluctuations.
Common Securities for the bankers advances are as under:-
SECURITIES
1. Guarantees
When an application for advance cannot offer any tangible security, the
banker may rely on personal guarantees to protect himself against loss on
advances or overdraft to the applicant.
2. Mortgage
A mortgage is the transfer of an interest in specific immovable property for
the purpose of security the payment of money advanced or to be advanced
by way of loan, and existing or future debt, or the performance of an
engagement which may rise to a pecuniary liability. The transfer is called a
mortgagor, the transferee a mortgage.
3. Hypothecation
When property in the shape of goods is charged as security for a loan form
the bank the ownership and possession is left with the borrower, the goodsare said to be Hypothecated The essence of hypothecation is that neither
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the property in the goods not the possession of them are possession is left
with the borrower, the goods are said to be Hypothecated the essence of
hypothecation is that neither the property in the goods not the possession
of them are possessed by the lender, but the security is granted by means
of letter of hypothecation, which usually provides for a bankers charge on
the hypothecation goods.
4. Pledge
In a pledge the ownership remains with pledge, but the pledge has the
exclusive possession of property until the advance is repaid in full. While in
case of the default the pledge has the power of sale after giving the due
notice.
5. Promissory Note
Sometimes promissory note is also accepted as a security, "A promissory
note is an instruments in writing containing an unconditional undertaking
signed by the maker, to pay on demand or at a fixed or determinable future
time a certain sum of money only, to or to the order of certain persons, or
to the bearer or the instrument." A promissory note is incomplete until has
been delivered to payee or the bearer. Moreover, the sum promised in a
promissory note may be made by two or more makers who may be liable
there on jointly and severally.
TYPES OF ADVANCES
The advances which are given by Habib Bank Limited are as under:-
1. DEMAND FINANCE (Ordinary Loan)
Demand Finances are those advances which are allowed in lump sum for a
fixed period and are repayable lump sum or gradually in installments.
TYPES OF ADVANCES
a. Demand Finance (Packing Credit)
Scheme introduced by State Bank of Pakistan for exporter of carpet,surgical instruments, at zero percent rate of interest. While banksprovides at concessional rate of interest.
b. Loan ordinary (Demand Finance to Students)
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Qarz-e-Hasana Scheme Loans are allowed to the students, teacherswithout any interest or mark up with the recommendations of theMPA or MNA.
c. Demand Finance (Staff)
Loans are offered to the staff of the following four categories.i. House Building Loans against mortgage of property.
ii. Loan for purchasing vehicles.
iii. Loan equivalent to months salary.
2. RUNNING FINANCE (Overdraft)
Running finance (old name overdrafts) are advances, which are generally,
given to meet temporary requirements of the customers. A good customer
use the banks running finance limit as a mean of protecting his credit in the
market and as a line of security defense to meet his commitments.
TYPES OF RUNNING FINANCE
I. Unsecured
Under such type of overdraft the bank pay upon the personal security
of the customers mentioned on the customers account.
II. Secured
Under this type of overdraft the bank allows his customer to withdraw
more than his deposits after giving security against the amount
overdrawn.
The securities against which they given are:
i. Share certificate, Saving certificate
ii. Deposits
iii. Mortgage of property
iv. Guarantee of person
SMALL LOANS
Loan is allowed to contractors clearing and forwarding agents.
3. FINANCE AGAINST THE FOREIGN BILLS (FAFB)
The advance facility is allowed both to local foreign bills and isclassified as under:-
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i. FAFB (Local) advance against Railway receipts and truck receipt, acompany with bills of exchange and invoices, are given under thishead.
ii. FAFB (Foreign) advances against foreign bill, covering bills ofexchange bills of lading airway bills of exchange bills of ladingairways bills etc.
4. AGRICULTURE LOANS
Loans to the farmers with holding up to 25 acres for meeting their short
terms, medium and long terms Agricultural production requirements, such
as:
i. Agricultural inputsii. Tube wells
iii. Live Stock Framingiv. Land improvement
5. INDUSTRIAL LOANS
Besides the short-term loans which play a part in working capital medium
and long-term loans are also given to industrial sector for purchase of
machinery and other capital nature goods.
Bills Clearing Department
INTRODUCTION
Every bank acts in two way i.e.
i. Paying Bank
ii. Collecting Bank
Here in theory no legal obligation on a banker to collect cheques,
drawn up to other banks for a customer. It is, however, an important
function of crossed cheques. A large part of this work is carried out through
the N.I.F.T.
NIFT- National Institutional Facilitation Technologies (Pvt.) Limited:
NIFT is a joint venture between a consortium of six major banks and private
sector. It is responsible for the establishment and management of
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automated clearinghouse facilities in Pakistan. NIFT is proactively involved
in the modernization of payment systems in Pakistan.
FUNCTION OF CLEARING DEPARTMENT
The following are the main functions of clearing department.
1. To accept transfer deliveries and clearing cheques from the customer of
the branch and to arrange for their collection.
2. To arrange the payment of cheque drawn on the branch and given for
collection to any other branch of Habib Bank of Pakistan or any other
members, or sub-members of the local clearing area..
3. To collect amounts of cheques drawn on members, sub-members of the
local clearing house, sent for collection by those Habib Bank Limited,
branches which are not represented a the local clearing area.
PROCEDURE OF DEPOSITING CHEQUES IN CLEARING DEPARTMENT
Whenever a customer wants to deposit cheque, etc, he fills a pay in slip and
hands it over the counter along with the instruments he wants to deposit
with bank. As far as possible, the customer desire that on of the staff
member fill in a slip for him, he should be obliged promptly.
One portion of the perforated pay in slip is handed over to the depositor
and the portion becomes the regular portion of a credit voucher
TYPES OF CHEQUES COLLECTED BY CLEARING DEPARTMENT
a. Transfer Cheques
Transfer cheques are those cheques, which are collected and paid by
the same branch of bank.
b. Transfer Delivery Cheques
Transfer Deliver cheques are those cheques, which are collected and
paid by two different branches of a bank, situated in the same city.
c. Clearing Cheques
Clearing cheques are those cheques in which the payee (Person who
deposit cheques for collection) and the drawer of a cheque maintain theaccount with different banks.
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These clearing instruments are handed over to NIFT after posting necessary
stamps and checking them for any errors. Then further process of clearing
is carried on the behalf of NIFT.
Forex Department
International trade is growing and with the development of international
trade it has become more imperative. For countries to devote more and
more attention to the complicated mechanism of Foreign Exchange. It is
more important in case of developing countries. It is need of time, that a
country should conserve its foreign exchange resources.
MEANING OF FOREIGN EXCHANGE
The foreign exchange term refers to the principles that determine the
rate of exchange. It covers following three senses:
i. The mechanism or system by which international obligations or
indebtedness are fulfilled.
ii. The currency of one country is exchanged for that of another.
iii. The principles on which the people of world settle their debts to oneanother.
Letter of Credit:
It is a negotiable instrument through which the bank of the exporter deals
with bank of the importer through the guarantee of a bank. There are
different parties involved in the L/C, e-g importer, exporter, importer bank,
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exporter bank, and advisory bank. LC involves banking channels in foreign
trade to mitigate risk.
The procedure of opening of an L/C is as follow
The first thing is the Performa invoice. The Performa invoice is adocument (say a clip), which is, sends by the exporter to the importer
and includes the information like. Descriptions of goods, what type of
goods you are needed and what are the quality, rate and originating
country etc.
Before to open a L/C the bank also consider that the goods which the
importer is importing is allowed by govt. of Pakistan or not. Because
the importer is not allowed to import that goods which are prohibitedby the Govt. of Pakistan.
The importer is asked to show the membership certificate of any
chamber of commerce and industry affiliated with the Pakistan
federation of chamber of commerce and industry.
Fill the import form of the govt. of Pakistan, which is the proof of this
that there is no objection on the goods, which the customer is
importing. What type of goods you are needed and what are the quality, rate
and originating country etc.
Necessary Documents required for L/C:
NTN
Tax Authority registration certificate
Chamber of Associations trade certificate
Type of Business
NIC
Margin
Registration No.
Application for L/C
On providing these documents the importer will be given the L/C form
named as
IB-8.
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Contents of IB 8
1. Request for LC
2. Rate
3. Importer and Exporters particulars
4. Amount
5. Terms
6. Partial Shipment (Allowed, not allowed)
7. Transshipment (Allowed, Not Allowed)
8. Port of Loading and destination
9. Payment Mode
I. Sight
On seeing the documents the importer has to pay.
II. At Sight and Negotiation:
It means that exporter will submit his documents with the bank and
immediately asks for payment.
III. Acceptance:
On showing the documents to the importer, the bank asks him to accept
that he will pay within 30, 60, 90, 120, 180 etc days.
10. Documents Required:
Certificate of Origin.
Commercial Invoice
Bill of Lading / Air way bill.
Charges:
For L/C following charges are applicable;
Commission
Postage
L/C Advising commission
L/C amendment Commission
L/C confirmation Commission
L/C Negotiation Commission
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Up to 5.35%* profit per annum
Profit calculated daily, paid every quarter
Minimum balance of Rs. 20,000
HBL DebitCard and Inter Branch Transaction System (IBTS) facilities
Up to 10 Bankers Cheques free (at minimum balance of Rs. 500,000)
Funds transfer to any bank through HBL PhoneBanking
Current Account
Minimum balance of Rs. 5,000
Unlimited transactions
Non-profit bearing
HBL DebitCard and Inter Branch Transaction System (IBTS) facilities
Funds transfer to any bank through HBL PhoneBanking
Basic Banking Account (BBA)
Can be opened with only Rs. 1,000
No minimum balance requirement
Upto 2 withdrawal and 2 deposit transactions free every month
Unlimited withdrawals through HBL DebitCard
Non-profit bearing
Savings Accounts
Avail the flexibility of making transactions while earning profit on
daily/monthly basis. HBL is currently offering five types of accounts in
savings account category. Their detail and name is as under.
1. HBL Value Account
2. PLS-Savings Account
3. Remittance Munafa Plus Savings Account
4. Daily Munafa Account
5. Daily Progressive Account
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HBL Value Account
7.19%* profit per annum
Profit calculated monthly, paid every quarter
Deposit ranges from Rs. 10,000 to Rs. 1,000,000
Two withdrawals free every month
PLS-Savings Account
5.06% profit per annum*
Profit paid bi-annually
HBL DebitCard and Inter Branch Transaction System (IBTS) facilities
Funds transfer to any bank through HBL PhoneBanking
Minimum balance of Rs. 20,000
Unlimited transactions
Remittance Munafa Plus Savings Account
Special account for receiving foreign remittances
5.12%* profit per annum
Profit paid every month
Minimum balance of Rs. 20,000
Daily Munafa Account
Profit calculated daily, paid every month
Up to 8.84% profit per annum*
HBL DebitCard and Inter Branch Transaction System (IBTS) facilities
Funds transfer to any bank through HBL PhoneBanking
Minimum balance of Rs. 20,000
Daily Progressive Account
Unique transactional account for Institutions
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Profit calculated daily, paid every month
Up to 11.57% profit per annum*
Inter Branch Transaction System (IBTS) facility
Funds transfer to any bank through HBL PhoneBanking
Minimum balance of Rs. 20,000
Terms Accounts
Invest your savings in HBL term deposits for a fixed duration and earn profit
while keeping your savings secure. HBL is currently offering one type of
account in terms account category. Their detail and name is as under.
1. HBL Advantage Account
Multiple options for tenure and profit payout
Loan facility up to 90% of investment
Minimum investment of Rs. 25,000
Withdrawal at end of fixed term
Foreign Currency Accounts
HBL offers Foreign Currency Accounts in multiple currencies as savings and
term accounts. Their detail is as under.
FC-SB
Savings Account offered in 3 currencies, USD (US dollar), EUR (Euros)
and GBP (UK pound)
Tiered product, with rates depending on choice of currency
To earn profit, minimum balance in USD, EUR and GBP is 1,000
Interest is payable on a quarterly basis
38
TenureProfit at
maturity3 MONTHS 7.50%*
6MONTHS 8.00%*1 YEARS 11.00%*3 YEARS 13.00&*5 YEARS 14.00%*10 YEARS 17.00%*
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HYFFD (High Yield Foreign Currency Fixed Deposit)
Available in 1 month, 2 month, 3 month, 6 month and 12 Month in
USD, EUR and GBP
Tiered product, with rates depending on choice of currency and term
Profit paid on maturity only. No interim interest is payable.
*NOTE: All the rate and terms and condition are revised by HBL after
every six months periods. These rates are only applicable for period
01.07.09 to 31.12.09. Further detail of terms and conditions about profit
and rates is given in annex B.
HBL Car Loan
HBL Car Loan helps customers to get their preferred car through a
simple and hassle-free process, backed by superior service and support.
Now customer can drive a car he always wanted.
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February 21, 2011 [HABIB BANK LIMITED:]
Features
Choice of used, new local/imported and reconditioned imported car.
Repayment options ranging Upto 7 years.
Upto 85% of financing for the car of your choice.
Insurance at all times for complete peace of mind and security.
Round the clock support available through HBL PhoneBanking; you
can place your requests and queries, track the status of your
repayment/loan account and avail other value-added services
through HBL PhoneBanking.
Eligibility Criteria
How to apply
Just visit any HBL branch or Habib Bank Auto Finance Centre fordetails and application.
Submit complete set of application without any charges to the branch
or the Auto Center.
Sign the necessary documents on approval of the application
Payment is released within 24 hours of the submission of post-dated
cheques and initial payment after approval of the request.
Documentation
Salaried Individuals
Complete Application Form
Salary Certificate / Most recent Salary Slip
Bank Statement for past one year Two Copies of NIC
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Employment Certificate with date of joining
Two passport size photographs
Copy of the last paid utility bill (residence)
Self-Employed Business persons/Professionals
Complete Application Form
Two Copies of NIC
Two passport size photographs
Letter of proprietorship / Registered Partnership Deed
Certified latest Form A and Form 29, where applicable, along with
articles and Memorandum of Association
Copy of last paid utility bill (residence)
Bank Statement for the last 1 year
HBL Car to Car
HBL CarToCar is a revolutionary car financing offer. It makes the car of
customer choice affordable and practical with a buy back guarantee. HBL
CarToCar offers matchless features and unique options at the end of the
lease. Now customer can drive a new car at the end of every two years.
Features
Pay only for what you use
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When customer lease a car under HBL CarToCar, he only pay for that part
of the cars value that he use during the lease term. The cars residual
value (forecasted for the end of the specific lease term) is agreed with him
at the start of the lease term. This amount is deducted from the car price
thus lowering the finance amount. This finance amount is based only on a
part of the cars value and not the full value of the car. Therefore, HBL
CarToCar offers very low installments as compared to any conventional
financing.
Upgrade of lifestyle
HBL gives customer the guarantee that if he wishes to return the car to HBL
at the end of the lease term, he will not have to pay off the cars residual
value. Instead, HBL will directly settle this outstanding liability for customer
under the buy back guarantee. Hence, he can upgrade to a new car as
frequently as two years without any complication and hassle.
Affordability
With HBL CarToCar, customer only has to pay the difference between the
car price and the pre-agreed residual value to the bank. As a result, the
monthly installment may even be 40% to 50% less than that of
conventional financing.
Flexibility
HBL CarToCar offers customers several choices at the end of the lease
term:
Upgrade - Simply return the car to HBL and drive a new one home
Walk away - Return the car to HBL and end the lease
Buy - Keep the same car. Just make a one-time settlement of the cars
residual value to HBL or pay the same in easy installments over a specified
extended period of time
Sell - Enjoy the gain from selling off the car at a higher price in the
market than what you ay HBL as the residual value
Eligibility Criteria
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Documentation
Salaried Individuals
Complete Application Form
Salary Certificate / Most recent Salary Slip
Bank Statement for past one year
Two Copies of NIC
Employment Certificate with date of joining
Two passport size photographs
Copy of the last paid utility bill (residence)
Self-Employed Business persons/Professionals
Complete Application Form
Two Copies of NIC
Two passport size photographs
Letter of proprietorship / Registered Partnership Deed
Certified latest Form A and Form 29, where applicable, along with
articles and Memorandum of Association
Copy of last paid utility bill (residence)
Bank Statement for the last 1 year
HBL Credit Card
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February 21, 2011 [HABIB BANK LIMITED:]
By the help of HBL credit card customer enters into the world of
convenience and flexibility. Accepted at over 29 million merchants
worldwide, HBL Credit Card makes shopping fun and paying simple. So that
a customer can make the most of his shopping experience.
BenefitsBuy now, pay laterBuy what customer want, when he want and pay for it later. A credit card
statement will be sent to him every month with details of all his purchases.
He will have 21 credit free days to make the payment from the statement
date. Customer should pay at least 3 days in advance if he makes your
payment by cheques to allow enough time for clearance.
Pay as much as customer wants
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A customer can pay the entire or as little as 5% of the outstanding balance
in his statement. The unpaid amount will be transferred to his next months
statement along with applicable services charges.
Cash advance
Customer can go to any specified HBL branch and withdraw cash at the
counter. He can also go to any 1Link ATM in Pakistan and more than
1,000,000 ATMs worldwide displaying the Visa/Plus logo. Withdraw cash up
to the available cash advance limit on his HBL Credit Card for a charge
applicable from the withdrawal date.
Balance transfer facility
Card holder can pay off balances he owes to other banks through his HBL
Credit Card at a lower service charge.
Security
Card holder cannot lose cash if he doesnt carry it! In the event that his
card gets stolen/lost, he should call HBL PhoneBanking to have his card
blocked immediately.
Hbl debit cardHBL Visa Debit Card allows a card holder to pay for his purchases directly
from his bank account. He doesnt have to carry cash and his monthly
statement provides him with a complete record of all his transactions so he
can manage his expenses with ease.
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February 21, 2011 [HABIB BANK LIMITED:]
Features
No InterestHBL Visa Debit Card is the perfect way of paying for purchases as it gives
access to the exact amount of money a customer needed, as and when he
needs it. There is no interest or credit on payments because he spends
from the money available in his personal HBL Account.
Ease & Security
HBL Visa Debit Card offers ease and convenience because card holder
doesnt have to visit an ATM to withdraw cash. Paying with the HBL Debit
card is safe because it eliminates the need to carry cash. A single swipe
automatically debits the exact purchase amount from his personal HBL
account.
Spending Limits
The daily spending limit at shops and outlets on HBL Visa Debit Card is Rs.
100,000. (These figures are subject to the balance available in account).
Free Account Statement
HBL cardholders receive a free monthly account statement for their Debit
Card and ATM transactions to help them keep track of their spending.
International Recognition & Acceptability
HBL Visa Debit Card is accepted at over 20 million Visa merchants
worldwide, including over 10,000 merchants in Pakistan. As an ATM card it
is accepted at more than 1,000 1-Link & M-Net ATMs in Pakistan and
864,000 Visa ATMs worldwide. No matter where card holder is, with the HBL
Visa Debit Card, HBL is always with him.
No Liability
In case of a lost or stolen card, card holders are protected against
fraudulent transactions made on their card after they report the incident.
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HBL Personal Loans
With the rising cost of living, it is becoming increasingly difficult to make
expensive purchases or meet unexpected expenses. HBL is helping
customer finance them with Habib Bank personal Loans (old name flexi
loan). Customer may avail a personal loan of up to SIX TIMES of his net
take-home salary subject to a maximum of Rs.300,000/- provided he work
for an organization approved by HBL.
Features
Flexible tenure: 12, 24, 36,48 or 60 months
No processing fee
Repayment through easy and affordable monthly installments from
salary.
Credit Life & Disability Insurance
Repayment through easy and affordable monthly installments
You determine the need, we help you finance
Option of add up replacement for existing customer.
Minimum salary Rs. 12000
No salary limit for existing customers.
23% or 21% rate for existing users instead of 25%
HBL Phone Banking
Now the bank is just call away. Customer can now call HBL PhoneBanking
and save a trip to the branch. His query will be resolved in a single
telephone call from anywhere and at anytime.
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T-PIN Generation
Customers TPIN (Telephone Personal Identification Number) is generated
the first time he calls and he can use it as your password for verification
purposes, self-service banking through IVR and additional services throughHBLs PhoneBanking Officers. Customer can change his TPIN anytime he
like.
HBL PhoneBanking services for Deposit Account customers
Customers can use the Interactive Voice Response (IVR) system or talk to
HBL PhoneBanking Officers to:
Get his account balance
Get information about the last 5-10 transactions carried out on his
account
Request bank statement, either through fax or email (as supplied in
his subscription form)
Get details of transactions from the last 6 months on each of the
accounts listed on his subscription form
Change and/or modify his contact details Transfer funds between his own accounts (as listed in the
subscription form) or from his account to a third party account (as
listed in the Third Party Authorization Form)
Transfer funds from his own account to an account in another bank
under the 1-Link network (Inter Bank Funds Transfer)
Generate his own choice of ATM Pin without filling a request at your
branch
Inquire about HBLs product offerings
Lodge a complaint in case of any inconvenience
Inquire about the daily accounts related profit rates and currency
exchange rates
Request a number of physical instruments and/or branch banking
related services that he might require, including:
Pay Order
Demand Draft
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Statement
Balance Certificate
Cheque Book
HBL PhoneBanking services for HBL CarToCar and Car Loan
customers
HBL CarToCar and HBL CarLoan customers can enjoy the following services
through HBL PhoneBanking:
Balance Inquiry
Last 5-10 Transactions
Statement Generation (Email and Fax)
Account Maintenance Assistance in case of Car Theft/Damage
Hbl Bank Assurance
HBL and New Jubilee Life Insurance Company Limited (NJLI) introduce
Amaan (Retirement Plan) and Tabeer (Child Education & Marriage). These
products have been designed keeping HBLs customer base as the focus
and will provide life insurance along with an investment option.
Amaan (Retirement plan)
Amaan is a pension plan that provides an opportunity for growth through
investment in a balanced portfolio with post-retirement income benefits.
The plan covers life insurance and gives attractive returns on investment to
its customers.
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Tabeer (Child Education and marriage plan)
Tabeer is a plan that provides parents with a means to accumulate a fund
over a period of time which can then be used to pay for a childs education
or marriage. Plans are available for both under and over 45 years of age.
Lockers
Lockers are available in many of the HBL branches in different sizes like
small, medium and large; some branches also have extra large and cubical
lockers. Except rural areas because of security reasons.
Eligibility for using lockers
Only the account holders can avail the facility of lockers. The annual rent
will be directly debited from their respected accounts at the start of the
year.
Charges
SizeKey deposit
(refundable)
Annual rent
Rs.
SMALL 2500 2750
MEDIUM 3000 3850
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LARGE 4000 6050
Key deposit is refundable at the time handing over the locker to bank. For
the staff of HBL key deposit is not required and also the annual rent is very
low for them.
HBL CORPORATE BANKINGHBL Corporate Banking Group comprises a seasoned team of Relationship
Managers (RMs) to meet the demanding service standards of large
corporations. A long history of financing and nurturing relationships in
Pakistan has given HBL a unique insight, enabling it to provide timely and
effective financial solutions for their customers to meet the growing
challenges of a global economy. For a corporate customer, with a turnoverof at least PKR 300 million, HBL has a range of solutions designed to help
him with his banking needs. Their RMs have the expertise customer need to
create tailored financial solutions catering to the specific requirements of
his business. Whether establishing a new venture or expanding an existing
business, HBLs team understands customers banking needs and works
closely with him to realize his goals.
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Services
HBL provides the following services to meet customers funding
requirements:
Working Capital Finance, including Overdraft, FE Loans, etc.
Pre and Post Shipment Export Financing (PKR and USD based)
Import Financing (PKR and USD based)
LMM Funding
Receivable Discounting
Islamic Banking facilities
Cash Management Services
Trade Services including Letter of Credit, Letter of Guarantee and
Standby Letter of Credit, etc.
HBL CORPORATE CENTERS
1.Corporate Centre, Karachi 6.Export Processing Zone, Karachi2.PIA Branch, Karachi 7.Steel Mills, Karachi3.Stock Exchange, Karachi 8.Stock Exchange, Lahore4.Corporate Centre, Islamabad 9.Morga Branch, Rawalpindi5.Corporate Centre, Faisalabad 10.Corporate Centre, Multan
11. Karachi Port Trust, Karachi
HBL COMMERCIAL BANKING
HBLs Commercial Banking Group targets medium sized companies with a
turnover of at least PKR 50 million. Its business units are located in Karachi,
Lahore, Faisalabad, Sialkot, Gujranwala and Peshawar. Each unit is
dedicated to service business clusters located within these cities. They
have the ability and the resources to meet the needs of customers
business with their pro-active, responsive and experienced Relationship
Managers who are committed to understanding customers business.
Services
HBL offers financing for the following:
Working Capital
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http://www.hbl.com/business-customers-islamic.phphttp://www.hbl.com/business-customers-cash.phphttp://www.hbl.com/business-customers-islamic.phphttp://www.hbl.com/business-customers-cash.php -
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Procurement of Inventory
Receivables
Procurement of Machinery
Expansion of production facilities
Import of raw materials
Exports
Guarantees
HBL COMMERCIAL BANKING CENTERS
1.Al-Noor, Karachi 9.Foreign Exchange, Karachi
2.Korangi Industrial Area, Karachi 10.Napier Road, Karachi
3.Saddar, Karachi 11.S.I.T.E. Karachi
4.Tariq Road, Karachi 12.Panorama Centre, Lahore
5.Badami Bagh, Lahore 13Peco Road, Lahore
6.Kashmir Road, Sialkot 14.Paris Road, Sialkot
7.Small Ind. Estate, Sialkot. 15.Circular Road, Faisalabad
8.Peoples Colony, Faisalabad 16.Trust Plaza, Gujranwala
17.Super Market, Peshawar
HBL Zarai Banking
HBL ZaraiBanking facilities are spread across the country and provide
financing through more than 800 of their branches. HBLs presence in all
agriculture belts of the country ensures easy access to farmers in rural
areas. HBL ZaraiBanking provides loans to small-scale land owning farmers
as well as large institutionalized and alliance based finance, enhancing
agricultural harvest and, in turn, economic output of the country.
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Products
HBL ZaraiBanking enables farmers to invest in premier quality seeds,
fertilizers, pesticides, agricultural implements and non-farm setups through
its various product programs.
Crop Inputs
Crop specific finance for purchase of Agriculture inputs such as seed,fertilizer, pesticide and other related inputs.
Farm Implements
Finance available for purchase of farm implements & machinery like
combined harvester, sprayers, ploughs, tube wells and other crop-related
tools/implements.
Tractors/Agricultural Vehicles
Finance available to individual farmers, self-employed tractor operators,providing the option to select vehicles from a range of different
manufacturers.
Livestock
Finance available for feed, medicines, raw material, raising charges and
other related activities.
Poultry
Finance available for all poultry related activities including poultry farm
construction/equipment, hatchery plant & machinery, poultry feed, poultry
medicines, composite feed production, poultry processing and other related
activities.
Fish Farming
Finance available for inland fish farms as well as deep-sea fishing. This
includes procurement of boat, fish locating equipment, nets & ropes, ice
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maker, fish farm water solution, hatchery construction/equipment, purchase
of medicines / feed and other related activities.
Group Lending
Joint finance facility for a group of farmers with small land holdings for
working capital requirement.
NOTE: These finances may be availed under Demand Finance or Running
Finance categories. Demand Finance is usually available for short term
financing needs while Running Finance is available on the basis of revolving
limit.
ISLAMIC BANKING
Islamic Banking is a growing market segment that offers attractive
opportunities to potential and existing customers. At HBL, Islamic Banking
offers Shariah compliant products and services to meet the short and long
term requirements of business, trade and industry.
Shariah Compliance
HBLs Islamic Banking products are in strict compliance with the tenets of
Shariah and bear Shariah Compliance Certification from an independent
Shariah Advisor. Their Shariah Advisor has in depth experience in Shariah
rulings (Fatawa) and teachings at different forums with qualifications of
Dars-e-Nizami, M.A and L.L.B. HBL also have a Shariah Scholar, as member
of their Shariah Supervisory Committee to ensure a sound Shariah
Compliance mechanism, giving prompt responses to customers needs and
access to Shariah knowledge.
Products and Services
Corporate and Commercial customers can choose from Shariah compliant
banking solutions to meet their business needs.
Ijarah (Leasing)
Medium to long term facility for vehicles, plant and machinery leased out to
the client on rental basis.
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Diminishing Musharaka
Medium to long term facility for vehicles, plant and machinery on joint
ownership basis.
Murabaha
Local and Import facilities for purchase of raw materials, semi finished and
finished goods, stores or spares.
Trade Services
Letter of Credit Facility, Collection of Foreign Bills, Collection of Local Bills,
Letter of Guarantees.
Customers are welcome to visit their Islamic Banking branch for the
following services:
Current Account (PKR, USD, EURO, POUND STERLING)
Basic Banking Account
ATM/Debit Card Facility
Foreign / Inland Remittances Utility Bills Collection
E-banking / Internet Banking Services
24/7 Phone Banking Services
Personalized customer friendly services
Saving Deposits will be introduced soon
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Learning as an internAs every body knows that "Knowledge without practice is sterile "In order to
give vent to this idea an Internship program of six to eight weeks has been
arranged in different esteemed organizations during M.B.A. In this regard
on 15th of June 2009, I was asked by Mr. Mirza Saeed (HR officer in HBL
regional office Sahiwal) to go to Habib Bank Jinnah Chowk branch to start
an internship of seven weeks there. During this period I got a chance to
work and learn in following departments of the bank:
Foreign exchange department
Bills clearing department
Credit department
I.T department
Cash department
Accounts, ATM and Lockers department
Duties and learning in Foreign exchange department
First of all I started my training in foreign exchange department of the bank
under the supervision of Mr. Asif Iqbal (Manager Forex department). I came
to know about the different functions of foreign exchange department and
how to perform these functions during my work in the department.
My duties in the department were related to the followings:
Foreign currency exchange rates.
Letter of credit (L.C) both opening and negotiation.
Letter of guarantee
Issuing check books for foreign currency accounts
Remittances applications.
Learning
Opening of of L.C., bank starts working on opening process after an
application is received from the buyer (importer). I came to know about the
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process of opening of L.C, documents that bank demands from applicant,
form used for that purpose, getting A.T (Availance Ticket) from regional
head office and scanning and mailing the documents to head office Karachi
for the purpose of getting approval, and payment on maturity date.
Opening and negotiation both are centralized process in Habib bank
therefore approval from head office is required.
Bank starts negotiation of letter of credit (which would be already opened
by importers bank) after the application from seller (exporter). Before
sending the documents for payment to importer bank negotiator bank must
ensure that the entire document mentioned in Claus 46A of the L.C are
attached and complete.
During the week I also worked on Remittances application. An applicant
who wants to transfer funds abroad must have a foreign currency account
in the bank. State Bank of Pakistan only allow account to account transfer
of funds abroad through banks. And I came to know about the process and
information required to fill the form. I also came know about the process of
issuing foreign currency accounts cheque book to customers. During the
week I learn many things about the mechanism of foreign trade.
Duties and learning in bill clearing department
The second department in which I got a chance to work was bill clearing
department. During the work in clearing department I came to know about
the different functions of clearing department and how to perform them. I
came to know the process of receiving cheques by Dak, how to check
cheques for any error like, the cheques should be of the bank which is the
clearing member of area which comes under Jinnah Chowk branch forexample if the cheque is of bank Al-Fallah Lahore then it should go to zonal
branch of Lahore region instead of zonal branch of Sahiwal. Then checking
whether the amount of cheque and OBC (outward bank collections) voucher
attached to it is same or not. If no error is found then making register
entries by noting down their OBC number branch code and amount of the
voucher. Then:
Calculating the total amount of vouchers by summing individualamounts.
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Calculating the total amount of cheques by summing individual
amounts.
Preparing an add list to be attached with clearing instruments
(cheques). Writing vouchers for demand drafts.
And I also came to know about the different types of stamps and their use
in particular situation like DAK RECEIVED stamp and CLEARING stamp. After
attaching add list, clearing instruments are handed over to NIFT for further
processing. These clearing instruments are delivered to their respective
banks for clearance by NIFT. I also learnt in case of Bankers Cheques how
to verify signature from the book in which all the signatures of authorizedpersons of HBL are given with their specific code. And I also worked on OBC
(Outward bank collection) forwarding schedule. I came to know the process
of sending cheques or other clearing instruments for clearance to zonal
branch of another region.
Filling vouchers
Assigning OBC numbers
Making entries in OBC register
Duties and learning in credit department
After bill clearing department I started my work and learning in credit
department of the branch. Credit Manager told me about the terms and
conditions of the commercial loan, types of commercial loan like industrial
loan and loan for merchants, how to make proposal for commercial loan,
document required to make a proposal, markup of commercial loan (18.5 %
annually). He also gave me chance to view some old proposals and the
proposal on which he was working.
Different types of consumer financing.
Flexi loan (personal loan)
Auto finance
Lifestyle loan
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Only the government servant who has his salary account at least six month
old in HBL can apply. Different markup for different categories like 21%,
23% and 25%.
21% for existing users upto 3 year duration
23% for existing users for 4 or 5 years duration.
25% for new customers
I also did work on documentation process for personal loan. I came to know
about the different types of document required to complete a case for
sending it to regional head office for approval, document like branch check
list, application form, Copy of CNIC of customer and two references, CNIC
verification report from NADRA, customers account statement, financeagreement form etc.
I also came to know about different types of securities which a bank
demands from customer while issuing loan. e.g. Guarantees, Mortgage,
Hypothecation and Pledge.
Duties and learning in Accounts, ATM and Lockersdepartment
Then I learned about ATM (automatic teller machine). I came to know
about the functions and working process of ATM machine. Loading cash and
balancing at the time of loading again. Next my main concern was to know
about all the aspects of ATM card. I came know about the types, process of
issuing ATM card to customers, filling forms, how to activate ATM card,
charges of issuing and using ATM card.
Then I spent my time in lockers department. I took all the information
about the terms and conditions of allotting and operating a locker, types of
locker like small, medium and large, charges of using lockers, key deposit
(refundable), filling application forms, insurance amount for specific size of
locker and etc. I also came to know about the process of operating locker
by the customer, how to open the locker with the help of two keys.
1 key in the hand of bank officer (anticlockwise)
2nd key in the hand of customer (clockwise)
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Customer is allowed to operate the locker in full privacy. Only the customer
himself or other person authorized by him can operate the locker. After that
bank officer has to take the signature of the customers on attendance
register maintained for this purpose.
Then my duty was in Accounts department. I came to know the procedure
for filling the form to open an account, different types of stamps required
and about signature of the staff. Documents required to be attached with
the form.
Copy of CNIC
Utility bill
Provisional receipt KYC (Know Your Customer)
And how to post an account on system after filling the form. Then I came to
know about Saving accounts and different types of accounts in saving
category and terms and conditions of each type.
1. HBL Value Account
2. PLS-Savings Account
3. Remittance Munafa Plus Savings Account4. Daily Munafa Account
5. Daily Progressive Account
Then current accounts
6. HBL Business Value Account
7. Current Account8. Basic Banking Account (BBA)
Term accounts
9. HBL Advantage Account
10. Investment plus Deposit
FC accounts
11. FC-SB
Savings Account offered in 3 currencies, USD (US dollar), EUR (Euros) andGBP (UK pound)12. HYFFD (High Yield Foreign Currency Fixed Deposit)
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How this experience will impact my career
Working for 07 weeks in HBL Jinnah Chowk branch as an intern was very
informative experience for me. During the time I learnt many new things
which are surely going to help me in my professional career. It was a good
experience for me to observe and to be the part of practical working of an
organization like HBL. During the internship I got a chance to understand
general consumers behavior and his needs and wants related to banking
services and products.
Recommendations
As we seen from the previous analysis of the financial statements I have
realized that that Habib Bank is performing very well since its inception. It is
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quite difficult to give suggestion to improve the banking conditions Habib
Bank Limited. As we know that nothing is perfect, there is always a room for
improvement, so I will recommend following suggestions for HBL:
Employees Training programmes must be introduced on continuous
basis so that Employees have understanding with the latest
developments especially with the customers.
Bank should introduced incentive plans for employees on regular basis
so that if employees may work whole heartedly for the welfare of their
organization. While giving incentives qualification, work, experience,
hard work and such other factors must be considered.
Mismanagement of resources must
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