REPORT ON HABIB METRO

GROUP MEMBERS

CONTENTS

• Acknowledgement

• INTRODUCTION

• MISSION AND VISION STATEMENT

• HISTORY

• CURRENT MARKET STRUCTURE

• CREDIT POLICY

• LOAN ADMINISTRATING TEAMS

• EXPANDING THE MARKET STRUCTURE

• THE APPROVAL AND CHECKING OF FINANCIAL DOCUMENTS

• LIST5 OF TOP 10 CUSTOMERS

• BIGGEST COMPETITORS

• EFFECT OF MARKET STRUCTURE ON ECONOMIC GROWTH

• FINANCIAL DOCUMENTS OF HABIB

Acknowledgement:

First and foremost thanks to Almighty Allah, the most merciful.We sincerely thank our instructor Ma’am Sabiha Abid for the guidance and encouragement in finishing this project.

I express my warm thanks to Mr. Asif Iqbal and Mr. Mukesh Shahani for his support and guidance at Habib Metro Bank.

As a group leader I would like to thank all the members of the group for their help and guidance without which this project would not have been possible.

INTRODUCTION OF HABIB METRO

Habib Metro Bank is a subsidiary of multinational bank, which operates in Hong Kong, Singapore, United Arab Emirates, Kenya, South Africa, United Kingdom and North America.

Habib Metro was incorporated in Pakistan in1992, formerly known as Metropolitan Bank Limited.

HMB has retail banking, trade and finance and has a share of 17% of the country’s

trade and also offers E-Banking.

Mission Statement

“To be Leading and Preferred Financial Service Provider to our customers”

Vision Statement“Based on a foundation of trust, to be the

most respected financial institution,

delighting customers with excellence, enjoying the loyalty of a dedicated team,

meeting the expectations of regulators and participating in social causes while

providing superior returns to shareholders“

HISTORY

Habib Metropolitan Bank was incorporated in Pakistan as a Public Listed Company in 1992 under the name, Metropolitan Bank Limited. The Bank commenced, duly licensed, full scheduled commercial-banking operations in October 1992.

Metropolitan Bank, from October 1992 to September 2006, remained, providing it’s nationwide 51-branch on-line network, established as a provider of trade finance services. On October 26, 2006, Habib Bank AG

Zurich's Pakistan Operations merged into Metropolitan Bank Limited and the merged entity was named Habib Metropolitan Bank.

CURRENT MARKET STRUCTURE

Currently the banking industry is following the perfectly competitive markert structure as there are many banks operating in the country.

In economic theory, perfect competition(sometimes called pure competition) describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Because the conditions for perfect competition are strict, there are few if any perfectly competitive markets

Expanding the market structure:They're currently working on 50 new branches to be opened in the upcoming year. They've their budgeting done till 2020 and review them every alternate year to make the changes according to the economic situation of the country. Credit policy:Habib metro's policy is to attract large portfolio of customers by providing lowest marketing rate in banking industry. Management must decide on credit standards, which involves decisions on how much credit risk to assume. These decisions play a large role in determining how much money a firm ties up in its receivables. A restrictive policy will most likely result in lower sales, but the firm will have a smaller investment in receivables and incur less bad debt losses, Less restrictive policies will generate higher sales as well as a higher receivables balance, but the company will most likely incur more bad-debt losses and a high

opportunity cost of holding capital in accounts receivables.

The Credit Department reports to the office of Treasurer. It includes all functions relating to the extension of credit, collections, and cash application. The Credit Manager establishes all credit limits, has final authority to release or hold all orders when credit problems exist, decides when credit privileges should be revoked, and decides when formal credit activity should be initiated.

Loan Administrating teams

It is very important to work with loan administrating team. Everything which is approved is fed into the system by the loan administrating team which is known as limit authorization unit. There are many if and buts and errors and it is the work of the authorization

unit to check transaction the security, mode of payment, the term of loan and amount of installment then it is finally fed into the system and transaction is made.

THE APPROVAL AND CHECKING OF FINANCIAL DOCUMENTS

For every transaction the credit administration is given a pre disc to check and then to feed it into the system. It is recommended by branch manager and approved by area managers and zonal heads and then the transaction is dispersed.

GROUP MEMBERS INTERVIEWING THE BANK MANAGER, MR. MUKESH

LIST OF TOP 12 CUSTOMERS OF HABIB METRO

1. Gul Ahmed Textile ltd2. Lucky Cement

3. PSO4. Dawlance Group5. Nat5ional Refinery6. Indus Motors Comapny7. Stallion textile mills

8. Gadoon textile PVT LTD9. Hafeez Ghee & General Mills Pvt Ltd10. Pak Suzuki Motors.11. ICI Pakistan LTD.12. Engro Group.

COMPETITORS

Habib metro’s biggest competitors are:

• Bank al habib

• NIB

• Soneri bank

We believe that our competitors make us stronger and we compete in ever field may it be good salary schemes, employees, efficiency and value our each and every customer.

EFFECT OF MARKET STRUCTURE ON ECONOMIC GROWTH

Perfect competition does not affect the economic growth of the country however it strengthens their company’s economy since there are not many ups and downs in the

company as everything is strategically planned.

References

:https://www.google.com.pk/search?q=financial+statements+of+habib+metropolitan+bank&espv=2&biw=1366&bih=667&source=lnms&tbm=isch&sa=X&ei=RzKRVPbJI8OwPP7OgPAM&ved=0CAYQ_AUoAQ#facrc=_&imgdii=9LuDsqlZcWauNM%3A%3B6eUDISGXBObOtM%3B9LuDsqlZcWauNM%3A&imgrc=9LuDsqlZcWauNM%253A%3BlLAH3ICpaiV44M%3Bhttp%253A%252F%252Fwww.kse.com.pk%252Fnewsimage%252F023203-1.gif%3Bhttp%253A%252F%252Fwww.pakinvestorsguide.com%252Findex.php%253Ftopic%253D507.0%3B1728%3B2241