1. Executive Summary:
This study analyzes the major indicators of bank service standards by a customer in the banking
industry of Pakistan. It is based on a survey of 4 customers of private, privatized and nationalized
banks located in the city of Lahore (Pakistan). The findings of the study reveal that the most
important variables influencing customer choice are customer services, convenience, and overall
bank environment. The study aims to bridge the existing gap between the quality standards given
by banks and appeal by the customers through identifying the important bank selection indicators
and concludes with some policy implications which are expected to have an impact on the
marketing efforts of Habib Bank Limited.
Significance of the study:
This report has been prepared for the partial requirement of the Internship program but it has a
great significance for others also. This report deals with the retail banking of Habib Bank
Limited (HBL). The findings and analysis of this report will be the useful for us as internee, the
authority of the Bank and Customer also. We can inform with the different types of product and
services and gain knowledge. The authority of the Bank’s can also be benefited. They can know
the perspective of their customers and implement policies accordingly.
Objective of the Study:
Banking sector in Pakistan has been growing significantly despite its social and economic
problems. However, only a few studies are found which made an effort to determine the crucial
factors that customers perceive as important in their choice of bank in Pakistan. This study is
initiated to accomplish this aim. The main objectives for conducting this research are:
1. To determine the importance of selected factors used by Pakistani customers in choosing their
bank.
2. To compare the perceived usefulness of the services offered by private and nationalized banks.
3. To provide Pakistani bank executives with insights into the kinds of service customers find
most appropriate for their banking needs.
Methodology of the study:
Commercial banking in Pakistan has undergone through substantial changes during the last
decade. For instance, during 1990s, the Government of Pakistan decided to privatize most of
the nationalized banks. Since then, this sector is becoming more and more competitive. Banks
are concentrating more on selling personal loans and offering consumer goods financing (such
as car leasing, house loans, etc.) and are trying to achieve larger market shares.
Commercialized banks are also offering mutual fund investments both in stock market and
money market to their customers. This study was conducted in the city of Lahore (the second
largest city of Pakistan). Almost all the major banks have their branch offices in the city. For

2. this analysis, the data have been collected about the customers of privatized (Muslim
Commercial Bank and United Bank Limited) and private banks (Bank Alfalah) operating
commercially in the selected area.
Both primary and secondary data have been used in this study. Primary data have been
collected with the help of a questionnaire method through field survey.
Primary Sources:
The primary data have been collected from the following sources:
 Face to face conversation with the employees and the customers.
 Questionnaires.
Secondary Sources:.
The secondary data have been collected from the following sources:
 Annual report of Habib Bank Ltd.
 Web site of Habib Bank
A sample size of 40 was used and under the CLUSTER SAMPLING Technique, the research
was carried out.
The Cluster Sampling method is used when it is possible to divide a population into different
clusters using naturally occurring geographical locations or other boundaries. Then the clusters
are randomly selected and a sample is collected by randomly selecting from each clusters.
In the research, the group members considered their locations within Lahore and selected five
specific locations. Each group member visited a different place.
The locations from where data was collected are:
1. Habib Bank Limited, Lahore
2. Bank Alfalah, Lahore
3. MCB , Model Town branch, Lahore
4. UBL, Lahore
Using two statistical softwares, STATGRAPHICS and Excel, the data was analyzed and
different conclusions were reached based on the analysis. These softwares were used construct
the following:
 Graphical analysis
 Descriptive analysis

3. Limitations of the study:
Due to adverse competition among banks and code of secrecy of the banks, Bankers does not
give their confidential data which are essential though they were cordial to us. Time
constraints also a barrier for us. The customers were not willing to give me time to have
necessary information as we desired from them.
HBL - an overview:
HBL was the first commercial bank to establish in Pakistan in 1947. It is one of the
largest commercial bank in Pakistan. It accounts for a substantial share (20%) of the total
commercial banking market in Pakistan with a network of 1425 domestic branches, 1000 ATM’s
across the country, 55 overseas branches spread over Europe, the Middle east, Far east, Asia,
Africa and the United states.
HBL exclusively owns 3 subsidiaries namely Habib Bank Financial Services (PVT) Ltd.
Karachi, Habib Finance International Ltd (Hong Kong) and Habib Finance Australia Ltd –
Sydney; 2 ventures namely Habib Nigeria Bank Ltd (40%) and Himalayan Bank Ltd (20%) and
two representative offices in Iran and Egypt.
Rating:
HBL is currently rated AAA (long term) and A-1+ (short term) with ‘stable’ outlook and has a
balance sheet size of USD 13.82 billion. It is the first Pakistani bank to raise Tier II capital from
external sources.
Background:
HBL was established by Mr. Ismail Habib on August 25, 1942 on the desire of Quaid -e-
Azam Muhammad Ali Jinnah, father of the nation. It was established with a paid up capital of Rs
2.5 million. It was the first Muslim bank of sub continent. Quaid e Azam first of all opened his
personnel account.
The first branch of HBL started functioning on August 30, 1942 at Muhammad Ali road
Bombay. In 1942 on the desire of Quaid e Azam Habib family migrated to Pakistan and later on
shifted HBL’s head office from Bombay to Karachi on August 7, 1947. HBL established
operating in Pakistan in 1947 with its head office in Karachi. Its first international branch was
established in Colombo, Sri Lanka in 1957 and Habib Bank Plaza was built in 1972 to
commemorate the bank’s 25th anniversary.
Retail Banking:

4. A customer base of 5 million and a network of 1425 branches is the core strength of Habib Bank.
The network provides HBL with the largest diversified low cost deposit base of any bank in
Pakistan and forms the bases for many of our business lines, corporate and investment banking
and treasury activities. HBL caters all market segments, offering products that are as diversified
as customers. HBL remains resolute in its commitment to provide products that are competitive
and services that are exemplary.
Commercial Banking:
Enterprises operating in the middle market contribute significantly to the economy of a country.
During FY-2000 HBL’s management decided to address the issue. On November 1, 2000
commercial banking came into being. The objective of setting up commercial banking was
twofold:
 First to stop the erosion of market share in middle markets.
 Second to regain the lost market share.
Commercial banking is making headway improvement not in terms of business figures but also in its
ambiance.
Corporate Banking:
The corporate banking group serves large institutional customers who require sophisticated
products in an environment of intense competition. HBL corporate and investment banking
group is now recognized as market leader and regularly arranges and participates in most large
structured finance deals.
International Operations:
HBL’s ability to operate successfully in diversified markets and cultures is a function of long
history in international banking, when first international branch was opened in 1951. The bank’s
branches in financial centers continue to provide efficient trade settlement and compensation
services by the entire network and business with other banks.
Objectives of HBL:
The following are some of the bank’s aims and objectives:
 To earn profit for the bank itself and its shareholders.
 To promote and boost up business sector inside the country.
 To provide employment opportunities to people.
 To help in development and industrialization of the country.
 To provide loans and advances to help out in self employment schemes.
Vision, Mission & Values:

5. Vision:
“Enabling people to advance with confidence and success.”
Mission:
“To make our customers prosper, our staff excel and create value for shareholders”
Values:
Values of a bank are the fundamental principles that define its culture and are brought to life in
its attitudes and behavior. It is a bank’s values that make it unique and unmistakable. The values
of HBL are defined below:
 Excellence: The markets in which HBL operates are becoming increasingly competitive,
giving its customers an abundance of choice. Only through being the very best, in terms
of the service HBL offer, its products and premises, HBL hopes to be successful and
grow.

6.  Integrity: HBL is the leading bank in Pakistan and its success depends upon trust. HBL
customers - and society in general - expect it to possess and steadfastly adhere to high
moral principles and professional standards.
 Customer Focus: HBL understands fully the needs of its customers and adapt its
products and services to meet these. HBL always strive to put the satisfaction of its
customers first.
 Meritocracy: HBL believes in giving opportunities and advantages to its employees on
the basis of their ability. It believes in rewarding achievement and in providing first-class
career opportunities for all.
 Progressiveness: HBL believes in the advancement of society through the adoption of
enlightened working practices, innovative new products and processes, and a spirit of
enterprise.
Graphical Analysis
Graphical analysis was performed using the softwares “Statgraphics”, and “Excel”. Different
charts and graphs were prepared using the variables on which research was conducted. These
charts and graphs give an additional insight into where the values are concentrated as the well as
the general shape of the data. Graphs are easy to read and understand and therefore, they were
used to give a simple interpretation of the data.
The following graphs have been constructed:
STATGRAPHICS:
 Dot Diagram
 Histogram
 Scatter X-Y Plot
EXCEL:
 Column Chart
 Line Chart
 Bar Chart
 Pie Chart

7. Dot Diagram
The Dot Diagram uses the independent variable “Expected time for account opening” and shows
the frequency of what is the expected time for account opening with verification. 40 people were
surveyed and according to the diagram, 22 people selected the scale of 1, whereas 17 selected the
scale of 2.
It can be concluded that HBL taking acceptable time for an account opening with verification.
Acceptable Turnaround Time for an
Account Opening with Verification

8. Histogram
The Histogram shows the variable “Expected time” on the X-Axis, and the frequency on the Y-
Axis of 40 people who were asked about what is acceptable turnaround time for online funds
transfer, with:
 1 expects 10mins
 2 expects 15mins
The highest frequency in this Histogram is at 1, around 35. Thus, it can be concluded that
majority are somewhat expected to online funds transfer in less time. So, HBL needs to work on
this service standard in order to satisfy their customers.
Acceptable Turnaround Time
for Online Funds Transfer

9. Scatter- Plot
The Scatter plot is an X-Y Plot, which show the relationship between two variables.
This Plot shows the expected time on X-Axis and the no of people surveyed on the Y-Axis.
Acceptable Turnaround time for Cheque Book issuance

10. According to the plot, 22 people selected the scale of 1, whereas 17 selected the scale of 2. It can
be concluded that HBL is doing well in this service quality standard as compare to their
competitors.
Bar Chart
A bar chart is a chart that uses bars to symbolize the quantity of something. The longer the bar
the higher the quantity of what is being measured. This question was asked in order to know if
HBL is doing according to expectations of their target customers and if not what measures
should be taken further.
According to the graph, it can be concluded that 51 % people expects that debit card should be
issued within 3 days. Hence, HBL is doing according to the expectations of their customers.
51%
20
49%
19
% Numbers
TurnaroundDay for Debit Card Issuance
Within 3 days Within 5 days

11. Line Chart
A line chart or line graph is a type of chart which displays information as a series of data points
connected by straight line segments. In this question we intended to find out what is the
acceptable turnaround time for delivery of bi-annually account statements for HBL customers.
It can be found that most participants stated that within 15 days delivery of bi annually accounts
statements is acceptable.
% Numbers
Within 15 days 66% 25
Within 30 days 34% 14
0%
500%
1000%
1500%
2000%
2500%
3000%
Turnaroundtime for delivery of bi-annually
account statements

12. Column Chart
A column chart is a graphical representation of data. According to the plot, 32 people selected
the scale of 1 and 7 people selected the scale of 2. Therefore HBL customers expected that utility
bill payments should be done within 5 minutes. It can be concluded that HBL is doing according
to the expectations of their customers.
82%
32
18%
7
% Numbers
TurnaroundDay for Utility Bill Payments
Within 5 mins Within 10 mins

13. Pie Chart
A Pie chart is a circular chart divided into sectors, illustrating numerical proportion.
39%
61%
TurnaroundDay for Credit Card Issuance
Within 13 Days Within 15 Days

14. The above chart illustrates that 61% people expects that credit card issuance should be done
within 15 days, whereas 39% people expects that it should be done within 13 days. Therefore, it
can be clearly states that HBL is taking acceptable time for credit card issuance.
SWOT Analysis:
Strengths
 During research, it can be observed from the available data that the other banks take more
time to open an account than HBL. Since in the modern era, time is quite precious for
people they want their work to be done efficiently in less time.
 It is also observed that time taken for cheque book and debit card issuance is also quite
satisfactory and HBL is having this edge over other banks and it is a positive sign for the
bank to improve further and making it more efficient.
 Further it also detected that HBL is catering the needs of business persons very well by
giving them the account according to their needs. HBL is basically providing many types
of accounts that are further categorized into current and savings accounts. It has HBL
freedom account which is for the business persons, the money club and HBL id account
for students.
 It can be concluded from our survey that most of HBL’s customers have said that they are
quite satisfied with bank’s overall performance and that is a positive sign for bank to
make it better and dominate the banking sector in Pakistan.

15. Weaknesses
 According to our research we observed that the time taken for credit card issuance and
personal loan is too much as compared to other banks.
 HBL has a very slow utility bill payment section, most of the people working as cashier
are too old and they don’t have that much capacity to cater the needs of modern
customer.
 We also observed that HBL is relatively slow in clearing their other banks cheques in
clearing section of NIFT whereas Meezan bank has an edge here. They take only one day
for clearing the payments.
 Another thing which is been observed is that HBL bank is not paying proper attention to
complaints and suggestions which are being provided to customers for their feedback if
we consider that complaints would help us in getting our service better and attracting new
customers.
Opportunities
 According to our observation there is an opportunity in providing fast service at cash
counters and in clearing section. If HBL would have more efficient people working in its
cash related positions it would be a competitive advantage for the bank. If bank saves the
time of customer at cash counter than surely it will be beneficial for it.
 HBL also has an opportunity in clearing section if it makes its service efficient in
clearing of cheques then it will boost up the bank’s service quite positively.
Threats
 New incoming local and specially foreign banks are main cause of stiff competition in the
market for example MCB and ALFALAH. MCB is going very well in financial set up of
Pakistan. So, these are also effecting on the operations of bank. HBL is required to offer
the particular new services to its customers too that these competitor banks are offering.
If HBL would not give proper attention to its weaknesses then it will be a threat for the
bank that will eventually be the cause of downfall.
 In some branches there are parking problems. Also in some areas bank branches have
ATM machines which remain out of order most of the time that eventually will be the
threat we have to take all these things into account to avoid any loss of our customers.

16. Descriptive Analysis:
Generallythe perspectivesof the customersare thatHBL doacknowledge theircomplaintsalso,they
resolve the problems.Inoursurveywe alsoaskedsome of the employeesof HBL(retail).Theysaidthat
till the time we don’tresolve customer’s issueswe cannotrest.
However,there were some customerswithadifferentopinion.
1) The customersdon’tgetthe feedbackof theircomplaints.
2) Hire polite staff
3) Timeframe of solvingissuesshouldbe given
4) Theyhave to waita lotfor theirproblemtogetresolvedwhichgivesthemthisimpressionthatthey
are notimportantto the bank whicheventuallymakesthemunhappywiththe bank.
The solutiontothese problemsisnotdifficultbuttime consuming.The staff (CROs) needtohave a small
trainingprogramfromthe HR in whichtheywill be learninghow todeal inpressure andthe basic
tactics of dealingwithacustomerE-g customershouldnotlose the interestinthe conversationetc.