INTERNSHIP REPORT ON HABIB BANK Limited

Internship Report submitted to the Faculty of Management & Administrative Sciences in Partial Fulfillment of the Requirements for the Degree of Masters of usiness Administration
BY Name of Student Role Number Pro!ram " Se##ion xyz et $%B%A &'%( Year#)

*ate of Submi##ion

Name of Pro!ram +oordinator ,,,,,,,,,,,,,,,,,,, Si!nature of Pro!ram +oordinator,,,,,,,,,,,,,,,,,

Internship Certificate

EXECUTIVE SUMMARY
Banking sector owes a pivotal importance in the economy of any country through its vibrant functions. This is the deep seated motivator that geared up me to join any bank for internship. Moreover, the practice and familiarity learned during this tenure would also attest very helpful and alleviating in the awaiting proficient life. Every student of MBA !inance" in university of #ujrat has an essential re$uirement to do si% to eight weeks internship in any of well reputed organi&ation. This report is an upshot of my si% weeks internship in 'abib Bank (imited, )howk *akistan #ujrat. 'B( possesses an imperative importance in the banking sector of *akistan. +t always remains the center of hustles in business activities. Although, a derisory period of si% weeks is not enough to learn the comple% operations of 'abib Bank (imited + made industrious efforts to converse them comprehensively in this report. *articularly, + have remunerated more accents on study of distinguishing features and services of. + have made ma%imum venture to elaborate this report with the material read, listened and observed.

ACKNOWLEDGEMENT
!irst + wish to thank Allah Almighty the most merciful and beneficent for enabling me to reach here and use '+, resources to complete my internship. + am also grateful to the department of administrative ,ciences who gave us an opportunity of internship to enhance our capabilities. This internship programmed, is very much helpful for me because, + have learnt a lot by applying theoretical knowledge in practical field. + am humbly thankful to all the employees of 'B(, )howk *akistan branch #ujrat, who guided me during the course of internship. The behavior of all the department supervisors was very good to me. They were always there to encourage me and they were really cooperative to guide me the mechanism of all departments in which + worked. +n addition, + wish to say thanks to my parents to support me and encourage me at every step.

Table o Co!te!t"

,erial -o. i" ii" iii" iv" v" vi" vii" ..5 ... ../ ..0 ..1 ..2

'eading Title ,ubmission page ,ignature page +nternship letter E%ecutive summary Acknowledgement Table of contents )hapter . +ntroduction Background of study *urpose ,cope 6bjective Methodology ,ummary )hapter / +ntroduction 6ver all respective sectors in *akistan 7ole of organi&ation in *akistan 6rgani&ation structure 6ver all !unctions of organi&ation in *akistan ,ummary )hapter 0 +ntroduction Brief history of organi&ation 7elationship of head office to the branch -o of departments 6ffices )urrent staff )urrent staff of branch according to $ualification and e%perience Training received by no. of employees 8ork load ,alary structure *romotion system +ncentives and motivation 7esponsibilities and 9uties performed )ritical analysis of branch )ommunication system 'iring system Morale of staff *hysical facilities *erformances ,ummary )hapter 1

*age number . / 0 1 2 3 4

/.5 /.. /./ /.0 /.1

0.5 0.. 0.../ 0...0 0...1 0./ 0./.. 0././ 0./.0 0./.1 0./.2 0./.3 0./.4 0.0 0.0.. 0.0./ 0.0.0 0.0.1 0.1

C#A$TER %

%&' I!t(o)*+tio! The core objective of preparing this report is to e%press my learning 9uring the 3 weeks period of internship. This is the mirror of my practical e%posure that is originated through time spent in ,#abib -a!. Limite)/& The report is about 'B( its departments, profile and its financial analysis. +n the report0 SWOT analysis is conducted so that + may able to give an authenticated approach to problems faced by the Branch. Then + conducted analysis for problem identification and also gave some recommendations to eliminate these problems and finally + concluded this report. Management style of 'B( is somewhat participative and its culture is friendly and cooperative. + have learnt a lot of different fields, and organi&ational behavior in real world phenomenon which gave me practical knowledge of what + have studied theoretically in M-A& %&% -a+.g(o*!) o "t*)y +n general, an +nternship is thought of as a program which :bridges the gap: between the academic environment and a future work environment. ,tudents that participate in an +nternship are generally more confident and more $ualified when seeking future employment.

%&1

$*(2o"e The purpose of my internship was

To have intensive field e%perience To receive an introduction to an organi&ation

To apply what was learned during coursework to the working world. To ac$uire good work habits.

%&3

S+o2e As an internee of 'B( the focus of my study was on general banking procedures in one of the branches of 'B(. These operations include remittance deposits advances and foreign e%change ,imilarly different aspects of over all of 'B( are also covered in this report

%&4

Ob5e+ti6e 9iscuss thorough study of 'abib bank limited To test my aptitude for a particular career before permanent commitments are made. Mainly My objectives toward internship program are to broaden my hori&on by applying my accumulated knowledge and skills in accomplishing my tasks. 8hen entering in the real working environment, + have developed my sociali&ing skills with organi&ational personnel. Also, + can observe my strength and weakness while working. +mportantly, + can say that internship gained my e%perience and is a firm step for my future career.
%&7 Metho)ology

The methodology reported for collection of data is primary as well as secondary data. The biggest source of information is my personal observation while working with staff and having discussion with them. !ormally arranged interviews and discussions also helped me in this regards.
8i9$(ima(y )ata:

*ersonal observation +nterviews of staff

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8ii9Se+o!)a(y )ata:

Manuals ;ournals Maga&ine Annual reports +nternet

S*mma(y )hapter . was an introductory chapter that discussed the introduction of study, background of study, purpose, scope and objective of the study.

11

12

C#A$TER 1

1 I!t(o)*+tio! +n this chapter + will throw light on the bank, about its history in *akistan, types and brief details of 'B(. What i" ba!.; The term bank is being used for a long time yet it has no precise definition. The basic reason is that banks perform not just one but many types of functions originally. The banks were supposed to make short term loans to traders only. The banks now not only make short term loans to the formers, traders, industrialists etc. but also invest in a wide variety of long term earning assets. )ommercial banks also undertake and e%ecute trust, deal in stocks shares and debentures, issue guaranties and indemnities underwrite and sell new securities and deal in foreign e%change etc. Banking industry acts as life blood of modern trade and commerce acting as a bridge to provide a major source of financial intermediation.

E6ol*tio! o ba!.i!g
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The word <Bank< is said to have been derived from the words Bancus or Ban$ue or Bank. This history of banking is traced to as early as /555 B.). The priests in #reece used to keep money and valuables of people in temples. The origin of banking is also traced to early goldsmiths. They used to keep strong safes for storing the money and valuables. The persons who had surplus money found it safe and convenient of deposit their valuables with them. The first stage in the development of modern banking, thus, was accepting of deposits of cash from those persons who had surplus money with them. The goldsmiths used to issue receipts for the money deposited with them. These receipts began to pass from hand to hand in settlement of transactions because people had confidence in the integrity and solvency of goldsmiths. 8hen it was found that these receipts were fully accepted in payment of debts= then the receipts were drawn in such a way that it entitled any holder to claim the specified amount of money from goldsmiths. A depositor who is to make the payments may now get the money in cash from goldsmiths or pay over the receipt to the creditor. These receipts were the earlier bank notes. The second stage in the development of banking thus was the issue of bank notes. The goldsmiths soon discovered that most of the money deposited with them was lying idle. At the same time= they found that they were being constantly re$uested 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 $uite a profitable business for goldsmiths. They
14

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.

Ty2e" o -a!."
)entral bank or state bank )ommercial bank E%change bank +ndustrial bank Agriculture bank +nvestment bank ,aving bank

1&% O6e( all (e"2e+ti6e "e+to( i! $a.i"ta! The partition plan was announced on ;une 0, .>14 and August .2, .>1> was fi%ed as the date on which independence was to take effect. +t was decided that the 7eserve bank of +ndia should continue to function in the dominion of *akistan until ,eptember 05, .>1? due to administrative and technical difficulties involved in immediately establishing and operating a )entral Bank. At the time of partition, total number of banks in *akistan were 0? out of these the commercial banks in *akistan were /, which were 'abib Bank (imited and Australia Bank of +ndia. The total deposits in *akistani banks stood at 7s.??5 million whereas the advances were 7s..>? million. The #overnor #eneral of *akistan, Muhammad Ali ;innah issued the order for the establishment of ,tate Bank of
15

*akistan on .st of ;uly .>1?. Thus a landmark was made in the history of banking when the state bank of *akistan assumed full control of banking and currency in *akistan. @p to 9ecember 0., .>40, there were .1 *akistan commercial banks that functioned all over the country and in some foreign countries through a network of branches. The #overnment of *akistan in the late >5s introducing the need for the privati&ation of state owned banks and companies. The private sector has accepted the challenge and most of the banks are privati&ed today. The ,tate Bank of *akistan issues the shares of these periodically. Bank employees and other common peoples can also purchase these shares and earn profit.

Comme(+ial ba!.i!g
Today, in *akistan, there are more than 4555 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.

1&1 Role o #-L i! $a.i"ta!

'B( was the first commercial bank to be established in *akistan in .>14. 6ver the years, 'B( has grown its branch network and became the largest private sector bank with over .,13? branches across the country and a customer base e%ceeding five million relationships.
16

-(a!+he":
. 'B( carries on its business through a wide network of branches. These branches perform their functions under the supervision of local principal offices and head office in Aarachi. The bank has over .13? branches in *akistan in /.3 cities and 15 overseas branches, with ATM !acility in more than ?5 cities.

#i"to(y o #-L
. 'abib Bank (imited was established by Mr. +smail 'abib (ate" on August /2, 1942 at Bombay. +t was the first Muslim Bank of the subBcontinent. +t was established with a
17

paid up capital of 7s. /.2 million. At an early stage, the number of its branches was only ./. 'B( established operations in *akistan in .>14and moved its head office to Aarachi. 'B( first international branch was established in )olombo, ,ri (anka in .>2. and #A-I-ANK $LA<A was built in .>4/ to commemorate the bankCs /2th anniversary. 8ith a domestic market share of over 15.

Sha(e +a2ital:
I""*e) Ca2ital The bank was setup with an issued capital of R"&%&7 millio!& A*tho(i=e) Ca2ital Authori&ed capital of 'B( in %3>'' millio! (*2ee" I""*e)0 S*b"+(ibe)0 a!) $ai)?*2 Ca2ital +ssued, subscribed and paidBup capital in year 8@A41&@%7 millio!B%'9
Ob5e+ti6e":

!ollowing are some main objective of 'B( To earn profit for the Bank itself and ma%imi&e its shareholders value. To provide solutions for multiple re$uirements of clients of diverse financial nature. To manage with the changing trends of the modern day financial market.

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To be a diversified bank by offering all basic consumer services and speciali&ed services. 'onest and ethical conduct, including ethical handling of actual or apparent conflicts of interest between personal and professional relationship.

people .

To provide employment opportunities to

To help in development and industriali&ation of the country.

Symbol o #-L

This symbol of 'B( contains Bismillah at top, ,word under Bismillah And then lion under sword .This symbol depictsD Bismillah EE.. +slamic values and culture ,wordEEpower (ionEE.. ,trength 'B( EE..brand name T'E *68E7 T6 (EA9 EE.logo

$(i6ati=atio! o #-L
19

6n

9ecember

/>,

/550

*akistan<s

*rivati&ation

)ommission announced that the #overnment of *akistan had formally granted the Aga Ahan !und for Economic 9evelopment AA!E9" rights to 2.F of shareholding in 'B(, against an investment of *A7 //.15> billion @,9 0?> million". 6n !ebruary /3, /551, management control was handed over to AA!E9. The Board of 9irectors was reconstituted to have four AA!E9 nominees, including the )hairman and *residentG)E6 and three #overnment of *akistan nominees.

-(a!)
6ur brand identity is the outward e%pression of what we stand for as an organi&ation. This is summari&ed in our vision, mission and is supported by our values.

Vi"io!
Enabling people to advance confidence and success.

Mi""io! Stateme!t
To make our customers prosper, our staff e%cel and to create value for shareholders.
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Co(e 6al*e"
'B( is firmly grounded with a corporate philosophy that incorporates five solid values which each individual associated with the bank abides by.

EC+elle!+e
This 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. 6nly through being the very best, in terms of service we offer, our products and premises, can we hope to be successful and grow.

I!teg(ity
8e are the leading bank in *akistan and our success depends upon trust. 6ur customers B and society in general B e%pect us to possess and steadfastly adhere to high moral principles and professional standards.

C*"tome( Do+*"
8e understand fully the needs of our customers and adapt our products and services to meet these. 8e always strive to put the satisfaction of our customers first.

1&3 O(ga!i=atio! "t(*+t*(e

Any organi&ation needs a structure, which provides a framework for successful operations.

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The operation of an organi&ation involves a number of activities, which are related to decisionBmaking, and communication of these decisions. These activities must be well coordinated so that the goals of the organi&ation are achieved successfully. )hairman

Board of director

*resident

)ountry heads Area heads regional manager"

Branch manager

1&4O6e( all *!+tio!" o #-L i! $a.i"ta!

I!)i6i)*al +*"tome("
'B( caters to all market segments, offering products that are as diverse as the people we service. 8e remain resolute in our commitment to provide products that are competitive
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and services that are e%emplary. 8hether establishing a new venture or e%panding an e%isting business, our team understands your banking needs and works closely with you to reali&e your goals. 'B( provides the following products and services to meet its individual customer re$uirementsD

I& Te(m a++o*!t":

6ffered in a variety of tenors with deposits as low as 7s. .5,555.

II& C*((e!t a++o*!t":

6ur )urrent Accounts offer features that meet your daily banking needs.

III. Sa6i!g a++o*!t":

'B(s ,aving Accounts cater to individual saving habits.

IV& Do(eig! +*((e!+y a++o*!t":

6ffered in multiple currencies interest paid on a $uarterly basis.

V& Debit +a():

'B( Hisa 9ebit )ard allows you to pay for your purchases directly from your bank account.

Deat*(e"
. / 0 1 2 3 .. -o +nterest /. Ease I ,ecurity 0. -o (iability 1. +nternational 7ecognitionI Acceptability , 2. pending (imits 3. !ree Account ,tatement
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4 ?

4. /1 hour )ustomer ,ervice ?. #lobal )ustomer Assistance ,ervice

VI& -a!. i!"*(a!+e:

'B( and -ew ;ubilee (ife +nsurance )ompany (imited introduce Amaan 7etirement *lan" and Tabeer )hild Education I Marriage". These products have been designed keeping 'B(Js customer base as the focus and will provide life insurance along with an investment option. %& Amaa! 8Reti(eme!t 2la!9 Amaan is a pension plan that provides an opportunity for growth through investment in a balanced portfolio with postBretirement income benefits. The plan covers life insurance and gives attractive returns on investment to its customers.

1& Tabee( 8Chil) E)*+atio! a!) ma((iage 2la!9

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 childCs education or marriage. *lans are available for both under and over 12 years of age.

VII& $ho!e ba!.i!g:

Kour bank is just a phone call away. Kou can now call 'B( *hone Banking and save a trip to the branch. Kour $uery will be resolved in a single telephone call from anywhere and at anytime.

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'B( offers a wide range of products and services for its business customers.

I& Co(2o(ate ba!.i!g:

'B( )orporate Banking #roup comprises a seasoned team of 7elationship Managers 7Ms" to meet the demanding service standards of large corporations. A long history of financing and nurturing relationships in *akistan has given 'B( a uni$ue insight, enabling us to provide timely and effective financial solutions for our customers to meet the growing challenges of a global economy. +f you are a corporate customer, with a turnover of at least *A7 055 million, we have a range of solutions designed to help you with your banking needs. 6ur 7Ms has the e%pertise you need to create tailored financial solutions catering to the specific re$uirements of your business. 8hether establishing a new venture or e%panding an e%isting business, our team understands your banking needs and works closely with you to reali&e your goals.

II& Comme(+ial ba!.i!g:

'B(s )ommercial Banking #roup targets medium si&ed companies with a turnover of at least *A7 25 million. 6ur business units are located in Aarachi, (ahore, !aisalabad, ,ialkot, #ujranwala and *eshawar. Each unit is dedicated to service business clusters located within these cities. 8e have the ability and the resources to meet the needs of your
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business with our proactive, responsive and e%perienced 7elationship Managers who are committed to understanding your business. 8e cater to the needs of a broad spectrum of clients. To do this, the businessBbanking group is segregated by the si&e of the customer. !or customers with an annual turnover between *A7 25 million to *A7 055 million, our )ommercial Banking group provides a wide range of products that meet specific customer needs. Deat*(e": 8e offer financing for the followingD 8orking )apital *rocurement of +nventory 7eceivables *rocurement of Machinery E%pansion of production facilities +mport of raw materials E%ports #uarantees

III& I!6e"tme!t ba!.i!g:

'B( offers fullBservice +nvestment Banking capabilities to its clientele. This year alone, 'B( has closed over thirty transactions with a cumulative worth of over @,9 / billion. This is a testament to outBofBbo% thinking and innovative products we bring to our customers.

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The +nvestment Banking #roup functions in three specialist business and E$uity )apital Markets I Advisory. *roject !inance, 9ebt )apital Markets I ,yndications areas

IV& I"lami+ ba!.i!g:

+slamic Banking is a growing market segment that offers attractive opportunities to potential and e%isting customers. At 'B(, +slamic Banking offers ,hariah compliant products and services to meet the short and long term re$uirements of business and trade. +slamic Banking provides +jarah leasing" for vehicles, plants and machinery to meet longBterm customer resource re$uirements. Murabaha local I import" facilities are provided to meet the shortBterm financial needs of midBmarket and corporate customers. 'B(s +slamic Banking products are fully ,hariah compliant and duly certified by independent ,hariah Advisors

V& Ca"h ma!ageme!t:

'B( offers a comprehensive platform for customers to avail )ash Management ,ervices throughout *akistan. 6ur )ash Management ,ervices reduce the cash turnaround of your company, thereby making it cost efficient !eaturesD )entrali&ed )ollections G !unds Transfer
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)entrali&ed *ayments G 9isbursements )ustomi&ed M+, 7eporting )entrali&ed +TG6perations )ustomer ,upport through

VI& E?ba!.i!g:
'B( is also providing uni$ue and latest online services like online fund transfer, balance checking to its customers.

VII& R*(al i!a!+e:

'B(s Agriculture loans are spread across the country and provide financing through over ?55 branches. 8e have the largest private bank portfolio in the country with over *A7 .? billion in various agriculture sectors. 'B(s presence in all agriculture belts of the country ensures easy access to farmers in rural areas. Deat*(e": 7evolving Agri ,cheme 'aryali !arm Transport ,cheme Agri 9evelopment loan Agri 9evelopment loan !ish !arming" Agri 9evelopment loan 9rip +rrigation" Agri *roduction !inance 'aryali (ivestock (oans

VIII& A""et ma!ageme!t:

'B( Asset Management (imited, A 8holly own subsidiary of 'abib Bank (td. was incorporated on .4
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!ebruary, /553 as a public limited company under the )ompanies 6rdinance .>?1 and was licensed for +nvestment Advisory and Asset Management ,ervices by ,ecurities and E%change )ommission of *akistan on 0rd April, /553. The +(e)it )e2a(tme!t ha" to: client. banks. Bank. )alculate client mark up. )harge mark up from the client account 7eport the ,B* about the credit status. Arrange the credit approval from the ,tate )heck the credit status of the client with other Hisit their clients. )arry out through investigation about the

S*mma(y This chapter concludes what is bankL The brief history of banking, evolution of banking types of banks, introduction of 'B( in *akistan, history of 'B( in *akistan. 6rgani&ation structure, brand, vision, mission, core values, productsGservices of bank.

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C#A$TER 3

30

O(ga!i=atio!
I!t(o)*+tio!
This chapter is all about organi&ation in which + worked. it tells us about brief history of 'B( )howk *akistan branch #ujrat. +ts relationship with head office, departments, offices, staff, critical analysis of branch and its performances.

3&% -(ie hi"to(y o o(ga!i=atio!

+n #ujrat 'B( was formed on 0.st march .>>?. +t developed by leaps and bounds and now the largest commercial bank of city. +t has gone through many hardships thatCs why able to be reached at this position.

3&%&1 Relatio!"hi2 o hea) o i+e to the b(a!+h o i+e

All major policies rules regulations and controls are devised by head office of 'B( in Aarachi. Then these policies are conveyed to regional heads and branch heads. Kou can say that it is a centrali&ed decision making style. All routine matters are decided at branch level by the manager of branch with permission of him. +f any problem or matter is beyond limits then it is referred to regional head$uarter. it can be said a decentrali&ed decision making style

3&%&3 N*mbe( o )e2a(tme!t"

There are various departments on which day to day banking of 'B( composes to satisfy customers. here are banking departmentJs functioning in 'B(.
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. / 0 1 2

." )omputer 9epartment /" )redit department 0" !oreign e%change department 1" 6perations department 2" lockers.

%& Com2*te( De2a(tme!t The objective of this department is to facilitate customers in payment of their che$ues. The main functions performed by this department areD . / che$ues. 0 1 2 3 4 ? accounts > >. )ommunication through EBmail etcE 0. +ssuing bank statements. 1. 9eduction of charges for services provided 2. 7eceipt of utility bills 3. 6nline transfer of remittances 4. )omparing signature ?. Maintain a record of transaction history of .. )hecking balance. /. 9eduction from balance on clearing

b& C(e)it De2a(tme!t:

.5 !or one week + was sent to credit department but + spent a single day there. Although in credit department there was lot more to learn but to my hard luck the in charge of credit department was not cooperative. 6n my first day in credit
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department + was keen to know what the procedure to sanction credit is. + also wanted to know what different types of advances are as it is asset of any bank but the in charge was not in a mood to tell me anything about credits and when + said to him that + want to learn about credit he replied that this is totally different from your bookish knowledge

I& #-L +(e)it +a():

8ith the help of 'B( )redit )ard customer enters to a world of convenience and fle%ibility. +t is accepted over /> million merchants worldwide. 'B( )redit card makes shopping fun and paying simple. ,o makes most of your shopping e%perience.

-e!e it"
. / . / 0 .. Buy now, pay later /. *ay as much as customer wants 0. )ash advance 1. Balance transfer facility 2. ,ecurity 3. )onvenience

II& #-L )ebit +a()

'B( Hisa 9ebit )ard allows a card holder to pay for his purchases directly from his bank account. 'e doesnCt have to carry cash and his monthly statement provides him with
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a complete record of all his transactions so he can manage his e%penses with ease.

-e!e it"
. / 0 1 2 3 .. -o +nterest /. Ease I ,ecurity 0. ,pending (imits 1. !ree Account ,tatement 2. +nternational 7ecognition I Acceptability 3. -o (iability

III& #-L 2e("o!al loa!

8ith the rising cost of living, it is becoming increasingly difficult to make e%pensive purchases or meet une%pected e%penses. 'B( is helping customer finance them with 'abib Bank personal (oans old name fle%i loan". )ustomer may avail a personal loan of up to ,+M T+ME, of his net takeBhome salary subject to a ma%imum of 7s.055,555GB provided he work for an organi&ation approved by 'B(. Deat*(e" . / 0 1 2 .. !le%ible tenureD ./, /1, 03,1? or 35 months /. -o processing fee 0. 7epayment through easy and affordable 1. )redit (ife I 9isability +nsurance 2. 7epayment through easy and affordable

monthly installments from salary.

monthly installments

34

3 finance 4 customer. ?

3. Kou determine the need, we help you 4. 6ption of add up replacement for e%isting ?. Minimum salary 7s. .2555. >. -o salary limit for e%isting customer.

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IV& #-L ba!. i!"*(a!+e:

'B( and -ew ;ubilee (ife +nsurance )ompany (imited -;(+" introduce Amaan 7etirement *lan" and Tabeer )hild Education I Marriage". These products have been designed keeping 'B(s customer base as the focus and will provide life insurance along with an investment option.

V& #-L <a(ai ba!.i!g

'B( Narai Banking facilities are spread across the country and provide financing through more than ?55 of their branches. 'B(s presence in all agriculture belts of the country ensures easy access to farmers in rural areas. 'B( Narai Banking provides loans to smallBscale land owning farmers as well as large institutionali&ed and alliance based finance, enhancing agricultural harvest and, in turn, economic output of the country. $(o)*+t" 'B( Narai Banking enables farmers to invest in premier $uality seeds, fertili&ers, pesticides, agricultural implements and nonBfarm setups through its various product programs.

+& Do(eig! EC+ha!ge De2a(tme!t

+nternational 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 !oreign E%change. +t is more important in case of developing countries. +t is need of time, that a country should conserve its foreign e%change resource

)& -ill" Clea(i!g De2a(tme!t

% I& What i" +lea(i!g;

OA system by which banks e%change che$ues and other negotiable instruments draw

on each other within a specific area and thereby secure payment for their clients through the )learing 'ouse at specified time in an efficient way.P )learing in 'B( -y +lea(i!g mea!", sometimes accountholder of 'B( presents a che$ue that is drawn on a person who has an account in 'B(" instead of the bank. +n this case, bank accepts this che$ue in clearing department and on 0rd day collects amount from bank on which che$ue is drawn through clearing to take amount from that person s account upon whom the original che$ue was drawn. Every Bank performs the paying and receiving functions. )he$ues are collected which are drawn up to Banks for customers. ,imilarly the che$ues drawn on different Banks and deposited by Banks own customers for collection within the city is known as clearing The functions of receiving and paying is mostly done through the clearing house.

II& Clea(i!g #o*"e

)learing 'ouse is a place where representatives of all banks sit together and interchange their claims against each other with the help of controlling staff of -+!T. +t is one of the services provided by the -+!T to the commercial banks. 9ifferent banks are the members of this clearing house. 'ere each representative presents the che$ue that is not drawn on his bank to the representatives of the banks on which the che$ue was drawn and collects the amount on behalf of his customer. ,imilarly each bank receives che$ues from other banks.

III& Natio!al I!"tit*tio! Da+ilitatio! Te+h!ologie" 8NIDT9

-+!T -ational +nstitution !acilitation Technologies" is the department which is created by the ,B* for clearing the checks of different banks. -ational +nstitutional !acilitation Technologies *vt." (td. was incorporated in ,eptember .>>2 as a joint venture between a consortium of si% major banks and private sector. +t is responsible for the establishment and management of automated clearinghouse facilities in *akistan. -+!T is proactively involved in the moderni&ation of payment systems in *akistan. There are more than /5 -+!T centers in *akistan including #ujranwala. -+!T deals directly with every branch in /5 major cities and adjoining .31 commercial and industrial towns. More than 224. bank branches avail -+!T services.

V& Ty2e" o Clea(i!g:

)learing instruments are those instruments which are drawn on the branches of some other bank of the same city or of the same area which covers a particular clearing house. There are following types of clearingD %& I!te(+ity Clea(i!g +ntercity clearing means the che$ues which are drawn on the branches of some other banks from outside the city. +n 'B( all the che$ues that come from outside the #ujranwala region are to be considered as intercity clearing. 1& Lo+al Clea(i!g (6)A( clearing means the che$ues which are drawn on the branches of some other banks of the same city. +n 'B( all the che$ues that come from #ujranwala region are to be considered as (ocal clearing. 3& Same )ay +lea(i!g +n same day clearing, clearing che$ues comes in bank in same day and after entries of the che$ues, these che$ues sent to -+!T on same day. *erson of -+!T daily comes in the bank for taking che$ues of same day clearing. But payment of these che$ues is cleared on ne%t day. Basically these are local che$ues that are cleared same day to provide benefit to customers.

e& Remitta!+e De2a(tme!t

7emittance is the transfer of money from one place to another or from one person to another for the purpose of paying bill for e%ample A remittance is an important service a bank provides to its accountholders and to nonB accountholders. +t is form of income for bank because a fi% amount of money income is charged from the customer. !ollowing four types of parties are involved in remittance procedureD . / .. +ssuing bank /. *aying bank

0 1

0. 7emitter 1. 7emitte.

I""*i!g -a!. The bank that affects or sends the remittance through ,8+!T ,ociety for 8orldwide +nterbank !inancial Telecommunication", BankerCs che$ue or local funds transfer through mail transfer etc. $ayi!g -a!. This is the bank on which instrument is drawn. *aying bank makes the payment. +t may be located in different city or country. Remitte( This is the person who re$uests for remittance, either accountholder or nonBaccountholder. 'e comes to the branch and asks for remittance to be made. 'e deposits the money to be remitted and pays commission for this service. Remittee This is the person for whom remittance is made. 7emittee is also called payee or beneficiary.

i& Ki!)" o (emitta!+e"

,ome of the kinds of remittance are followingD . / 0 1 2 .. Transfer within branch +nland remittance" /. Transfer from one branch to another branch +nland remittance" 0. Transfer from one bank to another bank within same city inside locality" 1. Transfer of funds intercity outside locality" 2. Transfer of funds from one country to other country.

3&%&4 O i+e"
There are many branches of 'B( in #ujrat.

3&1 C*((e!t "ta

A detail about the current staff is as follows. Branch Manager Mr. Ahaliid ;avaid" 6perational manager Mrs. ,bahat 'aheen" )learing and 7emittance 6fficer Mr. Nafar 'ussain ,hah" )ash 6fficer !ahad ,hah, Tahir Mehmood"

3&1&% T(ai!i!g (e+ei6e) by !o& o em2loyee"

8hen + was doing internship at 'B(. There were two girls and one boy doing internship there. ,o we can say that 'B( provides better training to the fresh graduates to enhance their skills knowledge and abilities in practical world.

3&1&1 Wo(.loa)
The bank timing was >am to 2p.m. to provide customer services..sometimes the staff of the bank has to stay there in the bank till ? to > pm for setting and compiling their work.that is really a tough and hectic timing of a job. +t increases the burden on the employees and reduces their motivation

3&1&3 Sala(y "t(*+t*(e

,taff was not ready to disclose information about their salary. however manager Js salary was 7s 45,555 per month and operational managerJs salary was 7s 02555 per month. They did not provide me any information about the structure of salary.

3&1&4 $(omotio! "y"tem

The process of promotion at 'B( is low. promotion is awarded on seniority and e%perience basis. however if the supervisor of an employee appraises him in grades it affects directly its salary and promotion. after three years individual is eligible for promotion. if an employee has a O)P grade he is not applicable for the promotion interview.

3&1&7 I!+e!ti6e" a!) moti6atio!

The salaries, rewards, bonuses and incentives on the basis of jobs and performances according to performance and e%perience. Each employee on 'B( gets incentives and compensation whether as direct payment or indirect financial payment. direct payment in form of wages, salaries, commissions, bonuses. +ndirect payment is not related to cash payment like insurance, car, car fuel.

3&1&@ Re"2o!"ibilitie" a!) )*tie" 2e( o(me)

7esponsibility is the obligation to perform assigned activities. it is a self assumed commitment to handle a job to the best of oneJs ability. The source of responsibility lies within the individual. At 'B( all employees are encouraged to take full responsibility of actions and various job tasks. 7esponsible employees tend to be more motivated and focused on achieving organi&ational objectives. And perform their assigned duties

3&3 C(iti+al a!aly"i" o b(a!+h

8hen we think critically we are being active= we are not passively accepting everything we read and hear, but $uestioning, evaluating, making judgments, finding connections and categori&ing

3&3&% Comm*!i+atio! "y"tem

)ommunication system in branch is sound. There is a proper hierarchy in branch. cash officers report to operational manager and operational manager reports to the branch manager. head of foreign e%change and credit department are directly liable to the manager of the branch.

3&3&1 #i(i!g "y"tem

'iring system in bank is not proper. Employees are recruited on the basis of favoritism, nepotism political pressure. Both the staff and unions try to hire their favorites

3&3&3 Mo(ale o "ta

+ donCt think so that morale of staff is high because there are some people in branch that are not hard working and try to put their burden on the shoulders of others. At the end of the working hours the employees are so e%hausted that they are about to $uarrel. only the manger and branch manager head of foreign e%change and head of credit department have the professional attitude.

3&3&4 $hy"i+al a+ilitie"

The physical facilities provided to 'B( are not enough to meet the needs of staff as well as the customers. There are no rooms in the bank. -evertheless separate cabins are provided to branch manager and credit officer. At ground floor there are the air conditions but at . st floor where those are needed most are not available. More over at ground floor facility of drinking water is not available. ,taff does not have enough e$uipment to handle their data.

3&4 $e( o(ma!+e

The results of activities of an organi&ation or investment over a given period of time. *erformance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities I! te(m" o E*ality 8th(o*gh +*"tome( "ati" a+tio!9

)ustomer satisfaction, a business term, is a measure of how products and services supplied by a company meet customer e%pectation. A customer<s perception of the degree to which their re$uirements have been fulfilled. The services provided to the customers of 'B( are not so good to satisfy the customers as the customers having high deposits in their account are treated with courtesy and the customers having no reference are treated with dry attitude and they are not dealt properly. Their services are delayed often or staff becomes la&y to process their re$uirements. I! te(m" E*ality 8!*mbe( o a++o*!t"9 -o. of accounts are enough to meet the needs of bank but now a dayCs competition has increased customer transfer their amounts in other banks there may be a reason that they are not satisfied with the services provided. 'owever 'B( is one of the oldest banks in city.

Cha2te( 4

I!t(o)*+tio!
+n this chapter policies of 'B( ,strategies, successes will be discussed general because + did not find any information about it in branch. *olicies of 'B( include social responsibility, 'uman resource development, +nformation Technology.

4&% $oli+ie"
+t is a known fact that the 'abib Bank (imited 'B(" is one of the largest and the oldest financial institutions both in the public as well as in the private sector of *akistan.

Traditionally, it provides financial services to all segments of the national economy within and outside *akistan. 8ith a revamp customer oriented philosophy, the 'abib Bank is pursuing the new avenues of leadership through innovation and automation in customer services. The direction given to the staff by the leadership in the management is to gear up the efforts to face the challenges to bring new heights of professionalism in the banking system.

So+ial (e"2o!"ibility
!resh air is also blowing in the *ublic 7elation 9ivision of 'B( that believes in effective rapport with the general public by communicating the policies and schemes of the bank through print and electronic media. Besides maintaining close relationship with the media, the publicity division of 'B( is also leaves no stone unturned to render all possible assistance to the visiting dignitaries and delegations from abroad. 'B( believes in serving the nation and building the country<s economy on sound footings. The 'B( is also on its forefronts to support and appreciate the efforts being done for the noble causes and promote social and cultural activities in the country. +n this direction, the public relation division sponsors various social, cultural and sports events to generate healthy activities in the society. +t also organi&es religious programs to enhance social, human and religious values and traditions of our society. The division also represents the bank at important for to e%change views on national and international issues with various organi&ations to boost the intellectual activities.

#*ma! (e"o*(+e )e6elo2me!t

At every stage and level right from selection to advancement, the bank has designed a consistent system of human resource development based on result oriented objectives. The brilliant performance shown by majority of the staff reflects the desired results of these efforts. The team spirit generated by the training division to the staff has started showing positive signs and a concerted and unified force has been developed within ranks and files of the bank to offer the best possible services to the valued customers. These efforts have brought success stories to the credit of 'abib Bank. As a result of concerted efforts the 'B( has succeeded in

making substantial increase in the import forward booking volume. +t also registered an increase in e%port bill discounting volume. These efforts also enabled the bank to increase in monthly treasury profits that directly contribute towards the profitability of the bank. An improved communication between the branches and dealing room accompanied by increased customer interaction with treasury is also the part of the improved performance of the bank. 'B( has succeeded to place itself in a position where its Treasury is considered as market maker. Most of the small local banks use 'B(<s rate sheet as their benchmark. +n the nutshell, the forum gave a chance to all country managers to develop and redefine strategies and bring them in line with the overall objectives of the bank. The +nternational ,trategy )onference organi&ed by 'B( at Muscat last year was the part of that effort to develop and implement business plans that recogni&e the ground realities but at the same time incorporate a stretch component so that the Bank can regain its preBeminent position in the emerging market.

I! o(matio! Te+h!ology
+n order to keep pace with changes swiftly taking place around the world, the 'B( has embarked upon an ambitious plan for automation to have competitive edge over competing banks. An uphill task, it started in full swing and tempo which is unprecedented in the history of 'B(. The team of +.T professionals has almost hit the goals set by the management and showing positive and encouraging results. The computer division is providing technical support both for hardware and software to branches and other offices at the region or 'ead 6ffice level throughout the country to ensure troubleBfree operations of the Bank.

4&1 S*++e""e"
+stanbulD 6n the occasion of the 8orld Bank Annual Meetings /55> currently underway in +stanbul, #lobal !inance presented banking awards to the top global banks at a ceremony

attended by senior bank officials. 'B( was presented with 0 awardsD Best Bank Q *akistan, Best Trade !inance *rovider Q *akistan and Best !oreign E%change *rovider Q *akistan. These awards were conferred on 'B( in recognition of its achievements in product delivery and service $uality in the markets it serves.

4&4 S*mma(y
All the policies, stratgies of 'B( are according to dynamic environment of world thatCs why it has received remarkable success on national and international level.

Cha2te( 7

Internee -or.
(%/%0 Brief introdu tion of t1e bran 1 'B( )howk *akistan branch is not offering all the products and services as mentioned above, as few services are offered only at regional offices or head office level but still providing enough services. The branch is well e$uipped with all the re$uired resources which are needed in order to provide good services to the customers. The total number of people working in the )howk *akistan branch #ujrat is .1.

SWOT ANALYSIS
,86T analysis is based on assumption, that if managers carefully review such strengths, weaknesses, opportunities, and threats, a useful strategy for organi&ational success will become evident. 'B( is considered to be a very sound bank in the financial circles= the bank where the customers can safely keep their money as long as they want. +n ,86T analysis the best strategies accomplish in organi&ationCs mission byD .. E%ploiting opportunities and strengths. /. -eutrali&ing its threats and 0. Avoiding its weaknesses

St(e!gth"
8hile interning at 'B( + was able to conduct a ,86T analysis of the organi&ation. + learnt a great deal about the banks ,trengths, 8eaknesses, opportunities available in the future and the threats that are ever present in todayCs competitive Banking +ndustry. The analysis is as follows: .. 'B( is the larger commercial bank in *akistan with the network of over .13? domestic and international branches /. 'B( is a well established bank enjoying long history of over 32 years of e%perience, high people trust and profitable operation 0. 'B( has opened all its branches at commercial areas so that the customers or clients face no problems in reaching to the bank 1. /1 hours cash access and safe payment products for high value transactions 2. 'B( focuses on consumer banking by lucrative schemes, diversified product range and services suiting best to the wants and demands of the customers 3. 'B( has very good security system. 4. + observed that 'B( employees interact with their clients as if they are their personal friends and discuss about their problems as their own

?. 'B( has got a reliable and easy to use internal computer system. A(( information regarding the transactions in customers deposits has been computeri&ed >. 'B( is market leader in introducing eBbanking and has largest ATM network in country .5. 'B( was rated the best domestic bank for two consecutive years of /555 and /55. by Euro money, a leading international publication and has gotten many other awards ... E%cellent branches appearance gives an edge to 'B( over other banks. The branches are well furnished even in less developed areas where other banks branches give a poor view ./. 8ide number of services provided to the customer at cash counter .0. 'B( has got a wellBdeveloped onBline system in most of its branches. 7emittance 9epartment is working very efficiently in transferring funds of people due to this system. .1. 'B( have strength that most of the imports I e%ports which are done around are handled by 'B( Branch. .2. 'aving potential to encounter the competitive environment in the market

Wea.!e""e"
Even though the bank is making continuous efforts towards minimi&ing its weaknesses, there are still some areas that have to be improved to be able to compete in this industry. 9uring my internship period + came to know about following weaknesses in 'B(D

.. 'ighest number of branches effecting the proper maintenance and difficulty in providing same working environment at the each branch /. Though 'B( is the premier bank in *akistan, yet the fact remains that it is not market leader as -B*. +ts total assets are always less than -B* total assets. 0. ,taff here lacks managerial training as they are not properly educated. 9ue to seniority, they have moved up on the hierarchy line to #radeB +, ++ or +++ positions having hardly Bachelor degrees. This type of senior staff cannot apply the modern and innovative techni$ues of management in decision making. 1. *ublic respect is not very effective at 'B(. Employees do not take care of the customers, especially at token issuing counter and remittance department. 2. The lack of proper infrastructure in small branches is also a major weakness. These are the branches which are being visited by a large portion of customers. +n certain branches there is not even proper separation between departments to separate one department from another. This is a source of confusion for both the staff and the customers. 3. Employees are constantly rotated from one job to another different one to give them the knowhow of other departments. 4. The major weakness, + observed was charging of higher commissions and markup rates. ?. There are no entertainment facilities for waiting customers= maga&ines, newspapers etcE

O22o(t*!itie":
At present the bank is faced with a large avenue of opportunities as it has proved by launching new products and e%ploring various options in the market. The major opportunities areD .. 'uge untapped market potential in consumer banking /. +n the presence of a huge network of branches all over the country, provision of O!ast cashP facility can be an opportunity 0. 'aving a separate section for ladies will be more convenient and attractive. 1. -owadays internet banking system is growing $uickly so 'B( have opportunities to improve the standard and get the more share in the market. 2. *roviding lower markup rates, 'B( can lure more customers to increase its income 3. (arge corporate customers can log into the bank<s database and have access to their accountsGtransactions from their business houses. This facility has still not been started for customers in *akistan. ,o 'B( can focus on that. 4. ATM can also be used to deposit che$ues and cash into the accounts. -o bank in *akistan is offering this service currently. ,o an opportunity e%ists for 'abib bank to differentiate. ?. +t can be an opportunity for 'B( to enter into agreement with other banks to use each otherCs ATM, resulting in an increased convenience to customers of 'B( and other banks >. )ustomer feedback on different products can really improves the bank performance.

Th(eat"
'B( faces many threats as competitive pressures have escalated in this particular industry. There are also some threats that 'B( faces apart from competitive pressures. All these are discussedD .. 9ay to day changing global technology /. ,hortage of trained and speciali&ed staff at lower e%ecutive and officer levels 0. 'ighly attractive and advance services by foreign banks to their customers 1. )ompetent taskforce of some other banks is a threat because human resource is the most valuable asset. 2. *olitical and economic instability can be a threat.

S*mma(y +n chapter 2 + have summari&ed the ,86T analysis of 'B( and ratio analysis have tried to discuss all those strengths, weaknesses. 6pportunities and threats which + consider are present in this dynamic environment and ratio analysis tells us about the current financial position of 'B(.

Re+omme!)atio! 'ere + am giving some suggestions, which will enable the bank to compete with other banks more effectively I efficiently + suggest that number of staff members in the branch should be increased so that they can meet their customers re$uirements $uickly and efficiently + suggest that in order to deal with women there should be a (ady 6fficer or (ady )lerk in the bank and there should be a separate cabin for them 7ecruitments should be strictly on merit basis and induction should be after proper and e%tensive training according to 6ld and la&y staff should be replaced by young, $ualified and energetic staff. 8orking environment, e$uipment, furniture and staff dressing should be the modern banking style. There should be specific procedure for account closing and the record should be maintained. )he$ue book must be taken back for avoiding future inconveniences ,pecial attention should be given to the behavior of the employees towards the customers, as customer is the most important person for any bank. More power to the branches should be allocated 7eference system should be eliminated and management should strictly order to the employees and in charge officers to provide complete training to those internees also who dont have any reference. Bank should give interest free loan to students for the betterment of society. There should be the facility of clean drinking water at the ground floor. ,taff should be provided with separate @,BJs to each one to handle his data.

Re e(e!+e"F-ibliog(a2hy: en.wikipedia.orgGwikiG)ustomer satisfaction $ualityisoe%pert.comGglossaryG httpDGGwww.habibbankltd.comGaboutBusBnews.phpR0/ www.deakin.edu.auG www.hbl.com www.A,E.com.pk&& www.9A8-.com -egotitble instrument Act . ,ocieties 7egistration Act, .?33. )ompanies 6rdinance, .>?1 . Banking 6rdinance, .>3/. Analysis of !inancial ,tatements by #eorge foster. Annual 7eport /5./ 9aily times articles I!te(6ieG" (om: Branch Employees