This document provides information about an internship at Habib Bank Ltd in Okara, Pakistan. It includes: - An introduction to Habib Bank Ltd, including its history dating back to 1941 and role in Pakistan's development. - Details of the internship, including learning about bank procedures, departments, and account types from the branch manager. - A SWOT analysis of Habib Bank Ltd identifying strengths like a large branch network, and weaknesses such as lack of technology. - Recommendations to address problems encountered, such as improving customer service and increasing digital services. The document outlines the intern's experience at Habib Bank Ltd and insights gained about the bank's operations.

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Organization: Habib Bank Ltd.
Name: Saad Saleem Adil.
Regd#: 2013-ag-4008
Degree: BS(Computer Science)
Submission Date:20-07-2016
University Of Agriculture Faisalabad, Pakistan.

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THIS REPORT IS DEDICATED TO.
Sir Salman Afsar.(Advisor)
Sir Muhammad Hassan (Manager)
&
My Father who is also my Teacher.
Sir Muhammad Saleem Qamar.

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Acknowledgement.
First of all I’m very thankful to my family specially my father who
helped my and provide me a source of information and a good place
to work.
Secondly I’m very thankful to Sir Muhammad Hassan(Manager) for
their love and support. His cooperative behavior made my work easy
and joyful.
I’m very thankful to my younger brother Salman for pick/drop to
the bank with high speed like an Ambulance
‘

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Executive Summary
I’ve learned banking and all procedure from Sir Muhammad Hassan
(Manger).
I also learned how to deal with people/customers in daily life and
this is main thing to learn because “The world is not a bed of Roses”
All people on the planet are different. They may be good or bad but
all of it up to you “How you deal them”
‘

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Table of Contents
History and Overview....................................................................................................................................7
Habib Bank limited........................................................................................................................................7
Policy of Habib Bank Ltd. ..............................................................................................................................9
Competitors ................................................................................................................................................10
Habib Bank Ltd............................................................................................................................................11
Organizational structure.............................................................................................................................11
Hierarchy Of Habib Bank Limited................................................................................................................12
Main Offices and branches. ........................................................................................................................16
HBL Mouza 38/GD Young Pur Okara ..........................................................................................................17
Employees & officers/manager ..................................................................................................................17
Introduction of Different Departments of HBL...........................................................................................18
Comments...................................................................................................................................................20
Internship plan............................................................................................................................................21
Training Program: .......................................................................................................................................21
FUNCTIONING OF HBL where I did my internship:.....................................................................................21
TYPES OF ACCOUNTS MAINTED BY HABIB BANK LIMITED (Okara) Young Pur BRANCH: ...........................24
Reflective Journal:.......................................................................................................................................24
NEW KNOWLEDGE ACQUIRE ......................................................................................................................24
WHAT I LEARAND DURING INTERNSHIP: ....................................................................................................25
SWOT ANALYSIS..........................................................................................................................................26
INTERNAL ANALYSIS:...................................................................................................................................27
EXTERNAL ANALYSIS: ..................................................................................................................................29
THREATS:.....................................................................................................................................................30
PROBLEMS I SOUGHT..................................................................................................................................31
RECOMMENDATION: ..................................................................................................................................32

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History and Overview
Habib Bank limited
HBL at its present state has a long and rich history of deeds and sacrifices. All this
has been possible on the account of sustained efforts. The first branch of HBL
started functioning on 30TH
August, 1941 at Muhammad Ali Road Bombay, where Quaid-e-Azam Muhammad Ali
Jinnah first of all opened his personal account. Mohammad Ali Habib was a man of
stern and persistent will. God. Almighty had bestowed him with extraordinary
capabilities. He was devoted to his Bank with a view to take his share in the uplift
of the strife-torn and devastated Muslim community. At the time of its inception,
the Bank's total paid up capital was Rs.2.5 million but it is evident from the
following data that the Bank experienced a steep rise in the business in a few
years. In 1942, on the desire of Quaid-e-Azam, Habib family migrated to Pakistan
and later on shifted the Bank’s Head Office from Bombay to Karachi on 7th
August 1947 just one week prior to independence, to play its pivotal role in
the development of this newly born country. At the time of independence, the
areas, which now constitute Pakistan, were producing only agricultural products
raw material for indo-Pak subcontinent. Partially no industries were there to
process the raw material, therefore the raw material was exported from Pakistan.
There were 19 non-Indian foreign Banks which were engaged in the export of
crops
fromPakistan with only two Pakistani Banks i.e. HBL and the Australia Bank. Theci

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rcumstances were completely un-certain. The confidence of the people had been
shaken by the un-friendly environment and till the time peace had not been
restored, people would naturally have been interested in other things. The nation
was quite young with extreme scarcity of resources and these definitely added to
the difficulties of the govt., To
run its own Banking system immediately. Following the announcement of theindep
endence plan in June, 1947, the Hindus residing in the territories now comprising
Pakistan started transferring their assets to India and vice versa. The Banks
included those having their registered Offices in Pakistan, transferred them to
India in order to bring a total collapse of the new state. It had been decided that
the Reserve Bank of India would continue to function in Pakistan so that the
problem of demand and time liabilities, coinage, currencies, exchange rate etc. be
settled between India and Pakistan and the Indian Notes would continue to be
legal tender in Pakistan till 30th
September, 1948.Again due to certain differences
between Indian Pakistan, the Indian Govt., withheld Pakistan’s share of Rs.75
Crore in Forward and subscribed heavily to the Govt. of Pakistan to the tide over
the crises, Payment was Made to the Govt., by the Bank at a very nominal rate of
interest, even before the actual issue of securities. At a time when this newly born
country was at whirlwind of crises, it was HBL which fulfilled generously
the financial needs of all its sectors, paid salaries to the employees of all Govt.
departments, helped in the establishment of State Bank of Pakistan, which the
Quaid-e-Azam inaugurated on July 1st, 1948. HBL after partition opened its
branches throughout Pakistan to provide finance and other facilities to the
business community. In association with HBL, the Govt. sponsored Pakistan
Finance Corporation Limited for financing of cotton. The Bank helped handsomely

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in the construction of WARSAK DAM PROJECT, WAPDA, &K.D.A. by provided finance
and other facilities. Another innovation introduced by HBL is the evening Banking
cash long after the crossing of normal Banking hours. It was
alsothe first in making available such new facilities as Gift Cheques, Rupee Travele
r’sCheques, Credit Card System, short term and long term schemes for small
businessmen.
Policy of Habib Bank Ltd.
HBL is firmly grounded with a corporate philosophy that incorporates five solid
values which each individual associated with the bank abides by.
Humility
We encourage a culture of mutual respect and treat both our team members and
customers with humility and care
Integrity
For us, integrity means a synergic approach towards abiding our core values.
United with the force of shared values and integrity, we form network of a well-
integrated team
Meritocracy
At every level, from selection to advancement, we have designed consistent
system of human resource practices, based on objective criteria throughout all the
layers of the organization. We are, therefore, able to achieve a specific level of
performance at every layer of the organization.

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Team Work
Our team strives to become a cohesive and unified force, to offer you, the
customer, a level of service beyond your expectations. This force is derived from
participative and collective endeavors, a common set of goals and a spirit to
share the glory and the strength to face failures together.
Culture of Innovation
We aim to be proactively responsive to new ideas, and to respect and reward the
agents, leaders and creators of change.
Mission Statement
To be recognized as the leading financial institution of Pakistan and dynamic
international bank in the emerging markets, providing our customers with a
premium set of innovative products and services, and granting superior value to
our stakeholders
Shareholders, customers and employees.
Competitors
 NBA (National Bank Limited).
 UBL (United Bank Limited).
 MCB (Muslim Commercial Bank).
 Allied Bank.
 Bank Alfalah.

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Habib Bank Ltd.
Organizational structure.

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Hierarchy Of Habib Bank Limited

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Main Offices and branches.

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HBL Mouza 38/GD Young Pur Okara
Employees & officers/manager
Manager:
Muhammad Hassan
Operation manager
Zulfiqar Ali
Clerk and Cashier
Muhammad Jafar Ali
Abdul Malik
AFO
Shaukat Ali

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Introduction of Different Departments of HBL
IMPORT DEPARTMENT:
Import department perform all type of functions which relates to imports which
are as under:
i). Import registration.
ii). Opening of L/C.
iii). Lodgment of documents in PAD (payment against documents)iv). Reporting of
monthly imports to SBP.
IMPORT REGISTRATION.
It is compulsory under the law for importer to be register as an importer with
export promotion bureau (EPB). The import registration is applied through import
department according to procedure laid down by EPB.
LETTER OF CREDIT.
Import department open sight DA Letter of credit on behalf of their Importers.
Letter of credit is an undertaking given by the L/C establishing bank on behalf of
the importer in favour of exporter for specified amount available to him against
presentation of completer set of document as per terms and conditions of letter of

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credit this letter of credit to subject to uniform custom and practice of
documentary credit of ICC publication.
LODGMENT OF DOCUMENT IN PAD.
When the bank receive the documents from the exporter bank, the documents are
logged in PAD and the following vouchers are passed.
DR PADCR Foreign bank A/C. The importer are intimated of ascent the receipt of
documents who make the payment and documents are related the bank endorse
the documents in form
of importers who clear the goods from the custom authorities after paying
imports duties.
MONTHLY REPORTING TO SBP
At the end of the month on the last date all the import transactions
are reported to SBP on form I.
EXPORT DEPARTMENT:
Export department negotiate the simply documents prescribe by the exporters in
term of letter of credit opened by the foreign bank in forever of exports the
following documents are presented by the exporter for negotiation.
(i). Export Registration certificate issued by EBP.
(ii). Original letter of credit issued by the foreign bank in favor of exporter.
(iii). bill of exchange on DA/DP basis as specified in letter of credit.

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(iv). Commercial invoices
(v). Packing list
(vi). Bill of lading B/L or airway bill (AWB)
(vii). Any other specified documents as mentioned in letter of credit.
FOREIGN CURRENCY ACCOUNT DEPARTMENT:
This department open foreign currency account in three major currency i.e. USD.
Pound sterling, Douche mark these account are opened under new foreign
currency rules as lay down by SBP. Old foreign currency accounts were freeze on
28thMay, 1998. The bank pays profit from 3 to 4percent in same currency in which
the Account has been opened.
FOREIGN REMITTANCE DEPARTMENT:
This department deals with the inward and outward foreign remittance. The main
instruments of foreign remittance are as under:1). Foreign demand draft. (FDD
Comments
I think HBL is the most responsive Banking system as well as its among the
biggest banking systems in the world. They always take care of their costumers
that is why their system running properly and they earn profit

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Internship plan.
I worked as internee in HBL branch of Mouza 38/GD Jang Pur ,Teh&distt Okara
established in 1974
Main Branch : Sahiwal
Starting Date:1-6-2016
Ending date: 18-7-2016
Training Program:
FUNCTIONING OF HBL where I did my internship:
HBL bank is functioning under following set up:
BANK DEPOSITS:
Deposits are to the bank as a backbone is to the body of a man. They are the
lifeblood of the bank. HABIB BANK LIMITED and all other commercial banks
perform the function of deposit accepting from the general public by offering
suitable rates of interest on them, or on simply a promise to repay on demand.
OPENING OF ACCOUNT BY AN INDIVIDUAL:
After entering into bank premises the person goes through the following steps for
opening an account in the bank and for becoming a bank customer.

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AN INTRODUCTION:
The first important step to take place in bank is to get satisfactory introduction of
the person, who wants to become bank’s customer by putting various questions.
In HBL (Mouza jang Pur Branch) the branch manager takes great care of this step
and gets introduced with the person himself. His main intention is to determine
the prospective customer’s integrity, respectability, occupation, and nature of
business he is doing at the time of opening an account.
ACCOUNT OPENING FORM & SPECIMEN SIGNATURE CARD:
Now the person is provided with an application form known as Account Opening
Form.
This form contains:
i. Title of account
ii. Address
iii. I.D.Card number
iv. Telephone No. (Office and Residence)
v. Introductory reference (all above mentioned particulars of introducer )
vi. Signatures of the applicant
vii. Amount deposited
In addition to this the customer is required to attach a copy of National Identity
Card with the form.

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Specimen signature card:
Specimen of signatures will be obtained from depositor at the time of opening his
account. A specially designed card is used for this purpose; the card must be
countersigned by an official of the bank not below the rank of an officer.
ACCOUNT OPENING REGISTER:
Now the name of the customer will be recorded in account opening register, and
from here the account no. of the customer will be written on (top most corners)
account opening form and on specimen signature card.
ISSUANCE OF CHEQUE BOOK:
The cheque book will ordinarily be issued to all customers desiring to have
drawing facility. Cheque book consists of 10, 25, 50, or 100 pages depending upon
customer requirement. Customer can withdraw money by signing a cheque and
writing the amount he wants to withdraw from his account.
A special cheque book register is kept to enter the name of the person having
cheque book.
RECORDING IN TO GENERAL LEDGER:
The concerned officer records the name and amount deposited with the
bank in to general ledger. Separate ledgers are maintained for different
types of accounts e.g.

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i. Current Account Ledger
ii. Saving Account Ledger iii. Fixed Deposit Account Ledger
iv. Call Deposit Account Ledger
As and when customer deposits the money, amount is credited the general ledger
and the withdrawal is followed by a debit entry in the ledger.
Note: This Method is past. Now-a-Days all posting of voucher is due through
computer.
TYPES OF ACCOUNTS MAINTED BY HABIB BANK LIMITED
(Okara) Young Pur BRANCH:
The following types of accounts are maintained in HBL:
1. Current accounts.
2. Profit and loss sharing account.
3. Fixed deposit account.
4. Freedom account.
Reflective Journal:
NEW KNOWLEDGE ACQUIRE
Truthfully speaking every thing was new to me in Habib Bank limited though I
have a good Bookish knowledge but truthfully speaking it was totally different
from the practical knowledge of the banking. But with the grace of ALLAH and able
to learn every section of the Bank.

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WHAT I LEARAND DURING INTERNSHIP:
THE most important thing that I learn is that the difference between the behaviors
of officials. And also learn more clerical work of HBL as under.
ACCOUNT OPENING SECTION:
I spent the 1st three days in account opening section. As the area where I did my
internship, the people are not well educated that is why whenever a person will
come for opening an account than the manager referred that man towards me.
Than I guide that man and the form of opening an account will be filled by me and
the entire legal requirement are completed by me. In past the Habib Bank use and
the old type of firm but now it is using a new firm of opening an account. There
were five sign are required on old type of firm but now the new firm require only
one side.
CLEARING SECTION:
Past Method:
I also work in clearing section during my work I learned how to collect the
different cheques of different Banks. Then I learned how these cheques of different
Banks mutually transfer. For mutual transfer everyday a meeting is held in NBP
main branch Okara. The representative of UBL, ABL, BANK AL FALAH, BANK OF
Okara, and HBL was participating and thus mutual transfer of cheques was held.
Mr.Muhammad Hassan sahib was the in charge of this section .He gave me a lot of
attention.

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New Method:
Now-a-Days this activity done through NIFT.
REMITANCES SECTION:
I also worked in remittances section .in remittances section I learned how to
transform the money from one place to another place. In this section I learned,
1: DEMAND DRAFT.
2: ON LINE TRANSFOR.
On each transaction there is commission charged to the sender.
The commission of (D.D) from 1 to 1lack is Rs; 160.
The charges are on the (D.D) up to 1lack is calculated in percentage.
The commission of (O.T) is Rs 350.
SWOT ANALYSIS
The acronym SWOT stands for a firm’s internal Strengths and Weaknesses and its
external Opportunities and Threats. The purpose of such analysis is to build on
company’s strengths in order to exploit opportunities and counter threats and to
correct company’s weaknesses. SWOT analysis is based on the assumption that if
managers carefully review such strengths, weaknesses, opportunities, and threats,
a useful strategy for ensuring organizational success will become evident.

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Strengths and weaknesses typically relate to the internal environment of an
organization, whereas opportunities and threats are brought about by the external
environment of an organization. In the following section, both internal and
external analyses of HABIB BANK IMITED are outlined:
INTERNAL ANALYSIS:
Internal analysis of a firm is the analysis of its strengths and weaknesses. Unless a
firm has internal strengths and controls its weaknesses, it cannot take advantage
of opportunities and escape threats which the external environment presents.
Following are the main strength and weaknesses of HBL.
STRENGTH:
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:
1. HABIB BANK is a well established bank enjoying long history of over 65
years of experience and profitable operation.
2. HBL was the first privatized bank that gives it an edge over other
nationalized banks as it can develop any strategy consistent with the
demand of market and free from any political or bureaucratic influence.
3. HBL is the largest private bank in Pakistan now and people trust is very
high.
4. It has the largest branch network among private banks of Pakistan.
5. HBL is the market leader in introduction of e-banking and it has the
largest.

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6. HBL was rated the best domestic bank for two consecutive years of 2000
and 2001 by Euro money, a leading international publication.
7. HBL has forged strategic alliances with international banks for expanding
its network further, both locally and internationally.
8. HBL has the ability to bring innovative products and services like
personalized service, electronic funds Transfer, sophisticated financial
products such as electronic banking, auto-teller machines and evening
banking.
9. 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.
10.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.
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.
1. Mission of HBL is not well defined.

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2. 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.
3. Employees at branch level are not properly motivated to work by heart.
They take the all routine activities as a boring job.
4. Most of the employees lack managerial training as they are not properly
educated. Due to seniority, they have moved up on the hierarchy line to
Grade- I, II or III positions having hardly bachelor degrees. This type of
senior staff cannot apply the modern and innovative techniques of
management in decision making almost computer knowledge.
EXTERNAL ANALYSIS:
An organization has to monitor its environment constantly to keep up with new
developments and changes in the environment. A change in the external
environment may be either an opportunity or threat. In either case, the
organization has to properly use it strengths to avail the opportunities and avoid
or minimize the negative effects of threats.
Following are the main opportunities and threats of HBL.
OPPORTUNITIES:
An opportunity can be defined as a change in external environment which if
properly exploited with the organizational strengths will result in enhanced

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sales, market share, or income. Using its strengths, HBL can avail the
following opportunities:
1. It can introduce debit card system or may convert the existing ATM cards
into a complete debit card.
2. New products like personal loans, mortgage and auto leasing and cash
management which diversify credit risk and add to revenue generating
products, are currently provided in big cities like Lahore, Islamabad,
Karachi, and Rawalpindi, these products may be tested for success in other
small areas of PAKISTAN in different provinces.
3. As all around the world remittances of money are strictly monitored so as
the money remitted may not fall in hands of so-called terrorists. For that all
conventional money laundering through Hundies have been stopped, there
is an opportunity for HBL to extend its branch network to various countries
emphasizing mainly on introducing electronic fund transfer facilities.
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 HBL’s external environment,
the following potential threats exist:
1. The frequent reduction on 6-month and 12-month Treasury Bills discount
rates by SBP may create pressure on the banks profitability.

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2. The low discount rates are also negatively influencing the advances rates
which may affect the banks profits from the other side.
3. Foreign banks operating in Pakistan are playing a significant role by
incorporating new technologies and providing better quality services thus
creating a threat to the local banks especially to HBL which tries to develop
core competence in electronic based products. Policies of privatization,
foreign exchange reforms, and structural adjustments have increased the
inflow of foreign resources through direct and portfolio investment. In trade
financing, the role of foreign banks is even more significant, as
approximately 30 percent of the total trade of the country is transacted
through them. Major portion of the trade financing is for importers to
establish letters of credit.
PROBLEMS I SOUGHT
During my Six weeks stay in (HBL Mouza Jang Pur) I found various problems,
which I think, so should be resolved for the better functioning of the Bank. Some
of these problems are of such nature that their solution will help the Bank and its
workers in cooping in this complex world of globalization.

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PROBLEMS:
These problems are: -
1. There is a lack of on-line information in the Bank about the changes taking
place in the world of Banking.
2. A customer cannot find any kind of journal or newspaper there.
3. In early days of month there is a great rush of customers, which cause
inconvenience for the officer concerned and cashier as well.
4. Separate cabins are not available for the staff.
5. A separate counter for ladies is not maintained there.
RECOMMENDATION:
Recommendation I Propose
I will give following suggestions for the better function of the Bank:
1. The management should provide better arrangement for the employees.
2. The daily newspapers and journals should be provided to the employees and
customers visiting there.
3. A separate ladies counter should be there.
4. The Bank management should be very careful while granting the loans.

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5. Personal interests should not be given importance and customers Personal
credit worthiness must be carefully scrutinized public relation desk should be
established in each and every branch for guidance as well as redresses of
grievance of customers at the spot.
6. Online Banking should be introduced in all the branches.
7. Aggressive publicity campaign must be introduced through press and
Electronic media for new products and scheme by initiating vigorous marketing
policy.
8. New talent / professionals should be hired to coupe with the competitive
demand in the industry.
9. The financial statement should be made more transparent and reliable.
10. Consumer financing should be initiated to capture the market share.
11. Employee’s induction promotion and transfer should always be made on
merit.
12. To motivate the employees their remuneration / salaries should be made at
par with top tier Banks.