Professional Documents
Culture Documents
THE B ANK
The term “BANK” is derived from an Italian
word “BANKO” which means “Bench” that
is where people were meet and solve their
financial matters.
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INTERNSHIP REPORT HABIB BANK LIMITED
A c c o r d i n g t o D r. H a r t
“Banker or bank is a person or company carrying on
business of receiving money and collecting drafts for
the customers subject to the obligation of honouring
cheques drawn upon them from time to time by
customers to the extends of the amounts available on
their currents accounts”
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INTERNSHIP REPORT HABIB BANK LIMITED
TYP ES O F BANKS
2. Commercial bank.
3. Exchange bank.
4. Industrial bank.
5. Agriculture bank.
6. Investment bank.
7. Saving bank.
CENTRAL BANK
Every country has its central bank
or state bank. Its major function is to carry out a
c o u n t r y ’s m o n e t a r y p o l i c y w i t h a n a i m t o s a f e g u a r d
i t s f i n a n c i a l a n d e c o n o m i c s t a b i l i t y. I t h a s t h e
monopoly of note issue. It is also the custodian of
money market. State bank is the Banks bank and
lender to the government.
COMMERCIAL BANK
Commercial banks are profit
earning concerns. They receive deposits and advance
loans to the borrows. They greatly help in financing
f o r i n t e r n a l a n d e x t e r n a l t r a d e o f t h e c o u n t r y.
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INTERNSHIP REPORT HABIB BANK LIMITED
EXCHANGE BANK
The main function of the exchange
bank is to finance the foreign trade by the purchase
and sale of foreign currencies in the form of drafts,
bills of exchange, telegraphic transfers. They also
perform the function of commercial bank. Receiving
deposits and advancing loans.
INDUSTRIAL BANKS
Commercial bank cannot afford to
block their funds in long term investments. The
industrial banks receive long term deposits and
finance the industries by providing them long term
credits. In Pakistan the Industrial bank named as
Industrial Development Bank of Pakistan (I.D.B.P)
was established in 1961 for this purpose.
AGRICULTURAL BANK
Agricultural bank provides short
and long period loans for financing agriculture. The
agriculturists need short and long term loans for
meeting their day to day and long term requirements
for making permanent improvement in the land. In
Pakistan Agricultural Bank is named as Agricultural
Development bank of Pakistan (A.D.B.P) and it was
established in 1961
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INTERNSHIP REPORT HABIB BANK LIMITED
INVESTMENT BANK
The main function of
investment bank the merchandising of shares and
other securities, managing and distributing the issue
of shares and other securities.
SAVING BANKS
These are the institutions which are
sponsored by the government for having facilities to
the people and small means. These bank collect small
saving of people and allow them to withdraw in small
amounts. Also another institution i.e. National
S a v i n g s i s w o r k i n g i n t h e s a m e c a p a c i t y.
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
H a b i b b a n k H E A D Q U A RT E R i s s i t u a t e d i n K A R A C H I
that building has highest number of stories in
Pakistan.
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INTERNSHIP REPORT HABIB BANK LIMITED
8 Balochistan Region 02 46
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INTERNSHIP REPORT HABIB BANK LIMITED
MISSION OF H.B.L.
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INTERNSHIP REPORT HABIB BANK LIMITED
Lahore Region
1. Lahore Zone
2. Sheikhupura zone
3. Gujranwala zone
4. Gujrat zone
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
Divisional Head
Small loans department
Vice President.
4. COMPUTER DIVISION:
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INTERNSHIP REPORT HABIB BANK LIMITED
Divisional Head
SP & VP
8. FINANCE DIVISON :
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INTERNSHIP REPORT HABIB BANK LIMITED
Divisional Head
|
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
GM GM GM GM GM
Account Audit Finance M.I.S Dept. R&D
ZONE
|
Zonal Chief
|
BRANCH
Manager
|
Sub. Manager
|
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INTERNSHIP REPORT HABIB BANK LIMITED
PRESIDENT
1. To implement the polices chalked out and decision made by the
board of directors
2. To look after the affairs of the whole origination
3. To maintain good relation with the big Clint of bank in the interest of
the origination
4. To promote the business activities of the bank
5. To find new areas for investment
6. To make liaison with the government and state bank
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INTERNSHIP REPORT HABIB BANK LIMITED
BORD OF DIRECATORS
1. To make the policies in order to promote the business of bank.
2. To declare the profits on deposits.
3. To announce the rate of interest on advances and loans.
4. To make the policies for the welfare of bank employees.
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INTERNSHIP REPORT HABIB BANK LIMITED
ZONAL CHIEF
1. To make visit at the branches in order to promote the business
activities and make the discussion at the spot under his discriminatory
powers.
2. To promote the business activities.
3. To make the relation with the industrialist business man Agriculturist
etc. for the promotion of banking activities.
4. To solve the union problems.
5. To approve loans for heavy industries i.e. big amount of loans.
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INTERNSHIP REPORT HABIB BANK LIMITED
BRANCH MANAGER
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INTERNSHIP REPORT HABIB BANK LIMITED
its accounts holders are Cotton Broker , Traders and other business
different are made in order to make the working easier and error free.
The bank also issues creation form for the television license,
account opening , deposit slip etc are also available at this place. Cheque
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INTERNSHIP REPORT HABIB BANK LIMITED
GENERAL BANKING
Now Short Notice Term Deposit (SNTD) is further divided into two:
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INTERNSHIP REPORT HABIB BANK LIMITED
EXPLANATION:
1.CURRENT DEPOSIT:
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INTERNSHIP REPORT HABIB BANK LIMITED
This account may be opened by RS. 500. After every six months
profit/interest is given on this account and the rate of profit is declared
by the Head Office Habib Bank Limited. This year the management of
the Habib Bank has decided to give the profit of 8.10% on their saving
depositors . A 7days notice is required to draw the money exceeding RS.
15000, However bankers are used to give the relaxation of two, three
thousands to their customers. A cheque book containing 10 leaves is
given to the account holder which costs to him for RS 10 Mostly persons
on jobs maintain these types of accounts. Zakat is also deducted on these
accounts on the first of the Ramzan. A new tax i.e. with holding is also
levied on the profit of the saving account. The rate of the with holding
tax is 10%.
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INTERNSHIP REPORT HABIB BANK LIMITED
1. 7-Days notice.
2. 15-Days notice.
3. 30-Days notice.
These accounts are opened for 7, 15,or 30days. But these
can be encashed at any time. The rate of interest on these accounts is
lesser ordinary PLS. Saving account. If it is encashed before its maturity
the rate of profit is further reduced. With holding tax is also deducted on
the profit .
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
CALL DEPOSITS:
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INTERNSHIP REPORT HABIB BANK LIMITED
REMITTANCEDEPARTMENT:
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INTERNSHIP REPORT HABIB BANK LIMITED
To make it more secured and safe the bank has coded the amount
exceeding Rs.15000. Only the banker or the person knows the actual
amount of the draft. In return bank gets a commission which is its mode
of earning.
The bank’s commission rate is as under:
Now with holding tax is also levied, so bank also gets 20% with holding
tax on the sum an excise duty of RS. 1 per leaf.
Now if the draft is to be canceled or duplicate of the draft is to be needed
in case of misplacement Rs.20 is to be paid.
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
It is a good safe and fast method of transferring money from one place to
another. The advice is sent through the telegram and the bank to which
the advice is made reconfirms that whether the advice is made or not.
After the confirmation the money is paid to the payee. Telegraphic
Transfer could be made by giving the name and the telephone number of
the payee but account number is considered good and sage . The amount
exceeding Rs.15000 is coded in order to keep security.
Bank charge commission on TT’s and the rate is as under.
Rupees Min. amount %age
Up to 10,000 15 20%
10,001-100,000 20 15%
100,001 or above 150 .075%
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INTERNSHIP REPORT HABIB BANK LIMITED
PAY ORDER ( PO )
Pay order is less expensive method of transfer money. Normally
this method is used to transfer money inside the city. If it is used city
wide, it takes a long time.
The bank charge Rs.10 which is flat foe the pay order and an excise duty
of Rs.1 per leaf. With holding tax of 20% on the sum is also taken from
the party.
Now if the pay order is to be canceled or duplicate of the pay order is to
be needed is case of misplacement Rs.20 is to be paid.
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
Now the procedure of collection is different for in both the cases, the
outstation cheques are called the OBC cheque. Which stands for outward
bills for collection or these are the collections inside the country or city
wide and the in station cheque are those which belongs to the Lahore,
may be from the Habib bank or any other bank.
Of the cheque is of Habib Bank, the cheque is sent to the HBL main
branch GUJRANWALA the HBL GUJRANWALA branch sent those
cheque to the branch where the cheque belongs. And after confirmation,
in return, sent the IBCO inter Branch Credit Order. After the reception of
the IBCO the HBL NOSHERA VIRKAN branch credit the account of
the customer.
Now if the cheque belongs to the GUJRANWALA but the bank is other
than
the Habib Bank i.e. UBL, MCB, NBP, etc, those cheque are sent to the
HBL main branch GUJRANWALA and from GUJRANWALA the
banker will go to
the collection cell which is located at main branch GUJRANWALA.
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INTERNSHIP REPORT HABIB BANK LIMITED
Here all the representative from all the banks met and settled their inter
bank transaction after the confirmation from the respective bank. The
amount will be credited in the account of the Habib Bank at State Bank
and from their IBCO will be issued in the name of GUJRANWALA
main
branch and further main branch will issue the IBCO to the NOSHERA
VIRKAN branch.
Now for the outstation cheque the procedure is different. These cheque
are sent to the Habib Bank main branch of that city where the cheque
belongs. That main branch collects the money and sends a document
which is name as IBCO which stands for inter branch credit order to the
Habib bank NOSHERA VIRKAN Branch. Bank after the reception of
the IBCO credits the account of the person who presented these cheques
for collection. Now there are two types of outstation bills for collection,s
. These are as under.
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INTERNSHIP REPORT HABIB BANK LIMITED
CLE AN
CLEAN
Clean OBC includes those instruments which do not any
documentation.To be attached with it for the purpose of collections. This
includes cheque Drafts etc.
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INTERNSHIP REPORT HABIB BANK LIMITED
DOCUMENTARY
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INTERNSHIP REPORT HABIB BANK LIMITED
This department deals in those cheque and draft,s which are drawn upon
the Habib Bank Branch.
The transit delivery section received those cheque and drafts which are
through any branch of Habib Bank after proper verification of the
genuine of the draft or cheques , this branch transfers the inter branch
credit order IBCO to the main branch which further transfers the IBCO
where the cheque or draft was presented the clearing section deals in
those cheque and drafts which are drawn on Habib Bank. From other
banks like UBL, MCB, NBP, etc.
The procedure is same that after proper verification the IBCO is transfer
to the main branch which sends the credit note to the State bank,
And State bank credits the account of that bank with the specified
amount the bank charge noting on those cheque which belongs to Habib
Bank but if the other bank is involved the bank will charge the
commission and courier charges.
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INTERNSHIP REPORT HABIB BANK LIMITED
Current deposit and profit and losses department at Habib Bank branch
is working for the maintenance of the account holder’s record. This
department maintains all the record regarding the account of the account
holders, specimen signature card is with them and the verify the
signature of the account holders.
All cheque drawn of Habib Bank branch are sent to this department and
they properly judge and verify the validity of the cheque and after
verification they sent it to the cash department. Firstly that verify for the
signature then they see whether the cheque is within the due date, is
there a balance in the account of the account holder. After the
verification of all these pre-requisites the cheque is cleared. It is also the
function of this department to maintain the record of all transactions of
the day certain calculation of interest of profit is also made by them.
They also prepare the statement of account holders. All the records of
the account holders their transactions, their profit on PLS accounts
interest on SNIDS, TDRs etc. is maintain by this department.
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INTERNSHIP REPORT HABIB BANK LIMITED
CASH SECION
Like all the banks there is cash counter is the Habib bank branch
working two or three bankers. They pay the cash to the cheque, which
are properly verified from the CD & PLS, Department. People cashier
returns a counterfoil of the deposit slip by stamping it with cash receipt
stamp.
Cashier also maintained a register in which all the transactions at the
cash counter is maintained. At the end of the day cash in hand must tally
with the balance in the register.
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INTERNSHIP REPORT HABIB BANK LIMITED
TOKEN DEPARTMENT
All the cheque holders go to this department. They present the cheque to
the person at the department. He checks that whether the cheque belongs
to the same branch, the amount in words and figures is same, cheques is
not outdated, there signatures are there etc. Then he allots a number to
the cheques and a token is given to the cheque holder and the cheque is
sent to the CD & PLS Department. After the proper verification the cash
is paid to the cheque holder from the cash counter after taking token
from him.
Transfer book is a book in which all the transactions of the day is written
and the balance is tally with the cash book. The translator book is also
maintained by the said department.
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
These loans are taken for the purchase of stocks etc. The bank appoints
its staff of two or three persons at the place where that stock is lying.
Bank also keeps the record of the stock and current position too. A notice
is also written at the place that the stocks are pledged with the bank. To
get these types of loans prior permission from the zonal office of the
Habib bank is also required. The bank gets back its principal amount and
also markup for the loan. The rate of markup is Rs.0.52/1000 per day
and to calculate the markup for finance period as per formula is:
Amount of Amount of
Finance + One installment
MARK UP=------------------------------------ Rate of Mark-up
2
Mo. of Period of
Installment one installment
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
2. RUNNING FINANCE:
Running Finances are also given for the purchase of stock etc. But its
limit is not too much. Normally upto RS 15,00,000 is given as a
Running Finance and no staff is appointed. This is termed as
Hypothecation, which means that party is wholly liable for the stock
and payment of the principal amount and markup. The procedure is
almost same as for the cash finance and the loan is given to those
parties which are able to prove its genuineness and satisfies the bank.
The bank also pledges the genuine security of the party which
normally more valuable then the amount of loan. To get this type of
loan prior permission of the zonal office is necessary.
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
3. MACHINERY LOAN
Certain loans are given for the purchase of machinery. These loans
are called Local Machinery Manufacturing Loan (LMM LOAN). The
bank finances for the machinery, which is manufactured in Pakistan.
Like other loans after the proper verification and proper
documentation and
With the prior approval from the zonal office, these loans are given.
The bank pledges some genuine property as a security. Personal
security is also required in the getting of this loan. The loan is to
repay in certain installments which includes the mark-up also.
Normally these loans are for the period of five years and first six or
three months are exempted from the installments as the ease or as the
terms and conditions may be. The rate of the interest to be paid by the
party is 8% per annum.
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
INTERNATIONAL DEVELOPMENT
AGENCY LOANS.
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
MODERN BANKING
1- A.T.M.
2- MASTER CARD
Now a days banks are going to inter in the world of Computer &
technology, Each & every mark which was done by the men is being
done through computer
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INTERNSHIP REPORT HABIB BANK LIMITED
WITHDRAWL OF CASH
Karachi 8
Lahore 4
Islamabad 3
Multan 1
Faisalabad 1
Peshawar 1
Quetta 1
A.j.k. 1
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
MASTER CARD
Master Card is another modern facility, which is given by H.B.L.
Master Card is having following benefits & privileges
1) H.B.L. master card is accepted at over 123 Million establishment’s
word wide.
2) Free air travel accident insurance is provided.
3) This is the card having a photograph & signature of the cardholder,
which gives the security against misused.
4) On this card cash withdrawal are available over 29000 outlets all
over the world.
5) H.B.L. give an essay to manage monthly statement to keep track of
your transaction.
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
CURRENT ISSUE
expenses against the deposit while it 2% all over the world. In down
golden shake hand scheme in which people are inviting to great benefits
main features.
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
INCENTIVES
1)Three months basic pay for each completed
years of service.
2)An account equivalent to 10 years normal post
retirement medical facility will be paid in
lump sum to retiring employees.
3)Benevolent fund grant equipment to 10 years
will also be paid in lm sum in advance at the
time of settlement dues as a final payment.
4)The residential facilities for six (6) months
after retirement and sale of can if already
provided, furniture shall be allowed as a
special case to all those executives, who
accepts this scheme.
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INTERNSHIP REPORT HABIB BANK LIMITED
1998 1998
(U.S $000) (Rs.000)
ASSETS
LIABILITIES
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INTERNSHIP REPORT HABIB BANK LIMITED
Cash Flow Statement For The Year Ended December 31, 1998
1998 1998
(U.S $000) (Rs.000)
CASH FLOW FROM OPERATING ACTIVITIES
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
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INTERNSHIP REPORT HABIB BANK LIMITED
INTERPRETATION
1) Paid –up- capital remained same during the last four year no minor
change has been observes.
2) Reserves has remained same in 1996 & 1997 but these are increased
as compared to 1995 & 1996 the purpose may be was to retain more
funds in hand for the planning & development of the bank.
3) In total assets smooth change can be observed the reason may be the
increase of clients of banks because in only 1997 3 million clients
bank with H.B.L. within the country & overseas branches.
4) Total Deposit of the bank has increased in each previous year the
main reason of this increase is Bank’s foreign currency deposits in
Pakistan have increased.
5) Advances increased through all four years because banl has continued
its policy of supporting the priorities established by Govt. and
rendering services to all sectors of the economy with specific
emphasis.
6) THE investment slightly declaimed due to increased diversion of
bank’s resources for financing the requirement of priority sectors of
the economy.
7) Total Income & Total expenditure remained slightly unfavorable due
to increasingly competitive environment and structural problems of
public sector Financial institution continued to put sever strain on the
bank’s operation.
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INTERNSHIP REPORT HABIB BANK LIMITED
STATUS OF
H.B.L. IN BANKING SECTOR OF PAKISTAN
Note:
On the bases of this Analysis H.B.L. is rated among the top 7 banks
in
Financial set up of Pakistan.
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INTERNSHIP REPORT HABIB BANK LIMITED
SWOT ANALYSIS
STRENGTH
H.B.L. has very effective Network of branches all over the
country. Every 10th Pakistani is A/C holder of H.B.L. has made huge
investment in almost all the important economic sectors of Pakistan.
H.B.L. not only has made investment in industry but also in small scale
industry as well. H.B.L. has efficient & less bureaucratic set up H.B.L.
has introduced monthly income scheme that provides almost highest
interest rate .A.T.M. Was introduced in Pak. By H. B. L. master card
facilities is also available to the clients.
WEAKNESS
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INTERNSHIP REPORT HABIB BANK LIMITED
OPPORTUNITIES
THREATS
First threat that bank has to face is the Privatization, down
sizing & restructuring these changes could make drastic effects as well.
New incoming local & specialy foreign banks those are main
cause of stiff competition in the market
DFI’s are going very well in financial set up of Pakistan. So,
these are also effecting on the operations of bank. Along with other
threats the threat of corruption has vital importance.
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INTERNSHIP REPORT HABIB BANK LIMITED
CONCLUSION
Habib Bank limited was rated among first 500 banks of the world but
now it is in among 1000 banks in the world, H.B.L. is not progressing
due to political influence, in efficient management & corruption. If these
draw backs have removed then bank will not only join its previous
position rather we hope it will be rated among world top ten banks.
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