Hbl Internship Replort for Finance

INTERNSHIP REPORT ON

HABIB BANK LIMITED PAKISTAN

SUBMITTED BY: MUHAMMAD IRFAN ALI

LOGID: mc070402338

Phone# 0313-6747208

Mail address: [email protected]

& [email protected]

Address: Ward # 2 Mohala Chah Kurai

MBA (FINANCE)

2007-09

SUPERVISED BY: MAHER AMEER MUHAMMAD

DATE OF FINAL REPORT

10-04-2009 to 10-06-2009

NAME OF THE UNIVERSITY

VIRTUAL UNIVERSITY OF PAKISTAN

Virtual University of Pakistan 1

mailto:[email protected]

mailto:[email protected]

DEDICATION

Allah Almighty ( whose claim (to obedience) cannot be satisfied by those who

attempt to do so”)

& His Beloved People.


ACKNOWLEDGEMENT

Thanks to ALLAH Almighty for giving me such a beautiful opportunity and enabling me

to complete my project. Thanks to my loving parents and guardian who help me a lot at

every phase of my life, encouraged me in the days of depression and sacrificed for my

better future.

I am very thankful to Mr. Maher Ameer Muhammad my supervisor, who has helped me a

lot in finding an appropriate project and for his reviews, encouragement, and support.

I am thankful to all of my teachers and my class fellows and friends whom

Cheerfulness and guidance is an asset for me .I am especially thankful to the bank staff

and particularly.


Executive Summary

HBL established operations in Pakistan in 1947 and moved its head office to

Karachi Our first international branch was established in Colombo, Sri Lanka in

1951 and Habib Bank Plaza was built in 1972 to commemorate the bank’s 25th

Anniversary. HBL has the largest Corporate Banking portfolio in the country with an

active Investment Banking arm. It encompasses product offerings and services in Retail

Banking and, in recent years, Consumer Banking as well.

Satisfying customers are the only way to stay competitive in today's Market

Place. The balancing act between what customers want and what the HBL can provide

must be optimized in order to maximize HBL’s long-term profits.

HBL is expanding its presence in principal international markets including the UK, UAE,

South and Central Asia, Africa and the Far East.

With a domestic market share of over 40%, HBL was nationalized in 1974 and it

continued to dominate the commercial banking sector with a major market share in

inward foreign remittances (55%) and loans to small industries, traders and farmers.

International operations were expanded to include the USA, Singapore, Oman, Belgium,

Seychelles and Maldives and the Netherlands.

HBL is currently rated AA (Long Term) and A-1+ (Short term). HBL is the first

Pakistani bank to raise Tier II Capital from external sources.


Internship certificate


Table of content

Introduction 8

Brief history& Overview of the organization 12

Nature of the organization 18

Business volume 21

Product lines 22

Competitors 37

Organizational structure 41

Organizational Hierarchy chart 43

Number of employees 44

Main offices

44

Comments on the organizational structure 45

Plan of your internship program 47

A brief introduction of the branch where I did your internship 47

Starting and ending dates of your internship 48

The departments in which I got training and the duration of your training 48

Training program 49

Introduction of all the departments 49

Detailed description of the department you worked in 49

Structure of the Finance Department 70

Department hierarchy 70

Accounting system of the organization 71

Finance system of the organization 73


Mobilization of funds 73

Generation of funds 79

Sources of funds 81

Critical analysis 88Ratio analysis 95Organization analysis in comparison with itscompetitors 101Future prospects of the organization. 103

SWOT analysis of organization in the business sector 104

Conclusion & recommendations for improvement 108

Reference & Sources used 110

ANNEXES 111


Introduction

Habib Bank Ltd is a Banking HBL which is engaged in Commercial &

Retail Banking and related services domestically and overseas. HBL Enjoy

20% of the market Share in Pakistan. Today HBL is truly the bank of the people

Providing its customers convenience and Satisfaction all Over the world. Habib

Bank Plaza, the tallest building in Pakistan, is the proud symbol of HBL leadership

In Pakistan’s corporate ground. HBL is currently uses rate AA and A1+.

ESTABLISHMENT:

Habib Bank Limited was established by Mr.Ismail

Habib (Late) on August 25, 1942 at Bombay. It was the first

Muslim Bank of the sub-continent. It was Established with a

Paid up capital of Rs. 2.5millon

BRANCHES:

Numbers of branch of HB L 1437.in the form of 1408 retail

Banking branch 18 commercial banking division 10

Corporate center 1 Islamic banking.

Registered office:

Habib Bank Limited 4th Floor, Habib Bank Tower

Jinnah Avenue Islamabad, Pakistan.

Phone: 051-2872203 &051-2821183

Fax: 051-2872205


Head office:

Habib Bank Plaza I.I. Chundrigar Road

Karachi – 75650 Pakistan.

Phone: 2418000 [50 Lines]

Fax: 021-921751

Auditors:

Taseer Hadi Khalid & co.

(A member firm of KPMG International)

Sh. Sultan Trust Bidg. No. 2

Beaumont Road

Karachi-75530

Pakistan

A.F. Ferguson & Co.

(A member firm of price water house coopers)

State Life Building 1-C

I. I. Chundrigar Road Karachi

Pakistan.

Audit Committee:

Mr. Sikandar Mustafa Khan Chairman

Mr. Ebrahim Sidat Member

Mr. Ansar Hussain Shamsi Member


Board of Directors:

Su l t an A l i A l l ana Chairman

Moez J ama l Direc tor

Ahmad Jawad Direc tor

R .Zak i r Mehmood Pres ident & CEO

Yas in Ma l ik Direc tor

Sa j i d Zah id Direc tor

Mush t aq Ma l ik Direc tor


Management

Virtual University of Pakistan

Sohail Malik

Group Executive, Risk Management

Nauman K. Dar

Group Executive, International Banking &

CEO, Habib Allied International Bank

Plc.,UK

Abid Sattar

Group Executive,

Retail & Consumer Banking

Zafar Aziz Osmani

Group Executive, Human

Resources & Organizational Development

Mudassir H. Khan

Group Executive,

Chief Compliance Officer

Salim Amlani

Group Executive, Audit,

BRR & Investigation

Aslam Gadit

Group Executive,

Asset Remedial Management

Yousuf Nasir

Group Executive,

Information Technology

Nausheen Ahmad

HBL Secretary

& Head of Law Division

R. Zakir Mahmood

President & CEO

Group Executive,

Corporate Banking

Ayaz Ahmed

Group Executive,

Chief Financial Officer

Jamil Iqbal

Group Executive, MISYS /

Business Process Re-engineering

Jamil A. Khan

Group Executive,

Global Operations

Faizan Mitha

Group Executive,

Global Treasurer

Mirza Saleem Baig

Group Executive,

Commercial Banking

Kashif Shah

Group Executive,

Investment Banking

Aly Mustansir

Head of Marketing

& Brand Management

11

Overview of the Organization

History

The branches of Habib Bank in Pakistan

HBL Plaza in Karachi

Mohammed Ali Jinnah, Pakistan's founding father, realized the importance of financial

intermediation while he was campaigning for the creation of a separate homeland for the

Muslims of India. He persuaded the Habib family to establish a commercial bank that

could serve the Indian Muslim community. His initiative resulted in the creation of Habib

Bank in 1941, with HO in Bombay (now Mumbai), and fixed capital of 25,000 rupees.

The bank played an important role in mobilizing funds from the Muslim community to

finance the All-India Muslim League's campaign for the establishment of Pakistan. Habib

Bank also played an important role in channeling relief funds to the people hurt in the

communal riots and violence that preceded the departure of the British from India.


http://en.wikipedia.org/wiki/File:Location_of_branches_of_Habib_Bank.JPG%00%E5%A1%B9%EF%92%81%E1%B4%BB%E4%A1%BF%E2%B2%AF%E5%B6%82%E8%97%84%E6%8C%A7%00%00%EA%AE%A5

http://en.wikipedia.org/wiki/File:Habib_Bank_Plaza.jpeg%00%E5%A1%B9%EF%92%81%E1%B4%BB%E4%A1%BF%E2%B2%AF%E5%B6%82%E8%97%84%E6%8C%A7%00%00%EA%AE%A5

After Pakistan was born in 1947, Habib Bank, at the urging of Governor-General Jinnah,

moved its headquarters to Karachi, Pakistan's first capital. This gave Karachi its first

commercial bank of the newly formed Islamic Republic of Pakistan. The Habib family

owned and managed the bank until the Pakistan government nationalized it on 01 January

1974.

1951 HBL opened the first of 3 branches in Sri Lanka.

1952 HBL established Habib Bank (Overseas).

1956 HBL opened first of 5 branches in Kenya.

1957 or 1958 HBL opened a branch in Aden.

1961 HBL opened the first of what would become 6 branches in the UK.

1964 HBL opened the first of 4 branches in Mauritius and a branch in

Beirut.

1966 HBL opened the first of 8 branches in the UAE.

1969 HBL opened first of 3 branches and an OBU in Bahrain. However,

HB’s branch in Aden is nationalized.

1971 HBL opened an OBU in Singapore and a branch in New York.

1972 HBL opened the first of 11 branches in Oman. HBL constructed

Habib Bank Plaza in Karachi to commemorate the bank’s 25th

Anniversary.

1974 The government of Pakistan nationalized HBL and HBL merged

with Habib Bank (Overseas).

1975 HBL opened a branch in Belgium. HBL also merged with Standard

Bank, a Pakistani bank.

1976 HBL opened a branch in the Seychelles, the first of two branches in

Bangladesh, and a branch in the Maldives.

1979 HBL opened a branch in the Netherlands.


1980 HBL opened a branch in Paris and another in Hong Kong.

1981 HBL established Nigeria Habib Bank with 40% ownership. HBL

also opened a representative office in Teheran.

1982 HBL opened a branch in Khartoum.

1983 HBL opened branch in the Karachi EPZ and a branch in Istanbul.

1984 HBL established Habib American Bank in New York with a branch

each in Manhattan and Queens, and a US International Banking Facility.

HBL also opened a branch in California.

1987 HBL opened in Australia.

1991 The Habib Group established a separate private bank, the Bank AL

Habib, after private banking was re-established in Pakistan. HBL opened a

branch in the Fiji Islands, and took over the Paksistani branches of failed

bank, BCCI.

1992 In Nepal HBL acquired 20% of Himalayan Bank.

1995 HBL established a representative office in Cairo.

1990s HBL established Habib Finance (Australia), and Habib Finance

International Limited, Hong Kong.

2000 HBL established Habib Canadian Bank.

2002 On June 13, 2002 Pakistan's Privatization Commission announced

that the Government of Pakistan had granted the Aga Khan Fund for

Economic Development (AKFED), a subsidiary of the Aga Khan

Development Network, rights to 51% of the shareholding in HBL, against

an investment of PKR 22.409 billion (USD 389 million).

HBL's UK operation came close to being shut down due to regulatory

issues with the Financial Services Authority. The issue was resolved by

converting the operations to a subsidiary. Then Habib Bank Limited and

Allied Bank of Pakistan merged their operations (Habib contributed its 6

branches and Allied its 4), into a new bank, called Habib-Allied

International Bank, in which Habib Bank has a 90.5 percent shareholding,


while Allied Bank has 9.5 percent. Simultaneously with the transfer of

business to the new bank, both allied and Habib Bank close down all

independent operations in the UK.

2003 HBL received permission to open a branch in Afghanistan.

2004 On February 26, the Government of Pakistan handed over

management control of Habib Bank to AKFED. The Board of Directors

was reconstituted to have four AKFED nominees, including the Chairman

and the President/CEO and three Government of Pakistan nominees

2006 HBL sold the operations that it had established in Fiji in 1991 to

Bank of South Pacific.


Vision

Simply the vision of Habib Bank is mass banking. At the time of formation it

changed its motto from class banking to mass banking. Expedite the economic

growth of the country through spreading the banking services to the doorsteps of

mass people so that they get institutional financial help and participate in the

economic activities of the country.

Mission

To be the trendsetter for innovative banking with excellence and

perfection.

To be the best performing bank in the country and the region.

To exceed customer expectations through innovative financial products &

services and establish a strong presence to recognize shareholders'

expectations and optimize there rewards through dedicated workforce.

Keeping ahead of other competitors in productivity and profitability. To

attain budgetary targets fixed in each area of business.

Objectives

Like other business organization the core desire of Habib Bank is to maximize

the profit through saving & loaning money to the life of the common people.

The Objectives of the Habib Bank is given below:

I. Broad Goal:

As a nationalized commercial organization, Habib Bank belongs to the people.

It implies that it stands for meeting the banking needs of the mass people of

the society.


II. Operating Goal:

In compliance with the very nature of the organization, the objective in mind

the bank aims at excelling quality and diversified services. To fulfill its

mission Habib Bank has its main objectives as followings:

To provide banking services to people.

To earn profit.

Act as a media of exchange.

To contribute to gross domestic product (GDP).

Maintain a satisfactory deposit mix.

To promote and boost up business sector inside the country.

To help to grow entrepreneurship.

Increase loan portfolio diversification and geographical coverage.

To mitigate unemployment problem.

Provide finance specialized services to the export.

To help to boost economic development.

To help in development and industrialization of the country

Service Attitudes:

Habib Bank is a service organization. It will live and prosper on the

quality of service it provides. Hence quality of service must be maintained

at all levels.

Banks image with people should be identified on the quality and diversity

of services that the people aspire to receive.

As a dynamic bank it will remain in search of new field of activity in line

with people economic need. Suggestions by customers and other people

shall receive proper attention so as to help identify new activity or

improve upon present activities.


The bank shall maintain healthy competition with other banks aiming at

excelling services in meeting economic needs of the people.

Nature of the organization

Accepting Deposits

The primary function of HBL is to accept and receive surplus money from the people,

which they willingly deposit with the Bank. Like all other Banks, HBL also take

incitation to attract as much depositor’s as it can. They offer different deposit

schemes to its customers, which includes the following types. These schemes as

follow.

Current Deposits

This type of account is often maintained by the business

Current deposits are those deposits on which Bank offers no interest but it allows the

account holders to withdraw their money at any time they want without giving any

prior notice to the community, which requires large sums of money very often for

their business transaction.

Profit and loss sharing account (Saving)

Saving deposits or PLS is those accounts on which Bank offers a lower rate of

interest. After the Islamization of the Banking system in the country it has been given

the name of PLS saving account. The Bank undertakes to repay deposits on demand

up to a certain amount.


Fixed deposits

Fixed deposits are those which can be withdrawn only after the maturity period. In this

type of deposits the Bank allows high rates of interest depending on the time period of

deposits. The shorter the period of deposits, the less will be the interest and vice versa.

Making Loans and advances

The second most important function of HBL is to provide financing facility to its

customers. These loans and advances are usually made against document of title to

goods, marketable securities, and personal securities. HBL charges different interest rates

on these loans and advances depending on the terms and conditions settled with the

customers. Following types of loans and advances are made available to the customers.

Demand Finances

Demand finances are those finances which are given to the borrowers for specified period

and can be called back without any prior notice. It is a single transaction finance. It can

be long term, medium term and short term. Mark up is also charge. Here the amount can

be withdrawn once at the time of disbursement.

Running Finance

HBL provides these finances against the security of current assets like shares, bond, cash

crops like cotton and other cashable commodities. The borrower’s account is opened with

the Bank with the amount of the total loan provided or allowed to the borrower. The

borrower is allowed to withdraw any amount from his account within the specified limit

and interest is charged only on the amount actually withdrawn.


Over Draft

This type of facility is usually given to very loyal clients. This allows them to withdraw

over and above the amount held by them in their account, and interest is charged only on

the amount, which is withdrawn in excess of the amount actually held in their account.

Discounting bills of exchange

Discounting bills of exchange can also be considered as a form of loan because it allows

the holder to get the bill encased before the maturity period. A bill of exchange is usually

issued by the importer of goods to the exporters, which allows them to be paid in their

own currency after three months time. If the exporter needs the money before the

maturity of the bill of exchange, he can get his money from the Bank by discounting the

bill of exchange. The Bank utilizes their surplus funds by discounting the bills of

exchange at their market worth i.e. Bank pay to the holders of the bill on amount equal to

their face value after deducting interest at the current rate for the maturity period of the

bill. Our stated objective of being a premier emerging market bank.

Business volume

Habib Bank Limited (HBL), Pakistan’s biggest IPO of Rs 12 bn in terms of value,

will be formally listed today at the Karachi Stock Exchange (KSE). This listing would


further add Rs 162 bn to the banking sector market capitalization of nearly Rs 3,700

bn if we simply take the offer price of Rs 235/share as a proxy. Pakistan’s banking

sector has already got the biggest share of 29% in the market capitalization of KSE

and with this listing it will increase up to 33%.

We have signaled our positive outlook for the bank in our detailed ‘Pakistan’s

banking jewel’ IPO report on HBL mainly due to 1) our forecasted CY07 ROE of

27% which is also in line with high performing peer banks viz. MCB Bank & United

Bank (UBL) 2) satiating 10% yield on earning assets 3) presence of more than 80%

low cost deposits and mere 4.2% weighted average cost on remunerative deposits 4)

greater market share of fee-based income of 16% vis-à-vis peer banks 5) management

thrust on retail banking 6) strong brand equity. On the flipside, recent draft circular by

State Bank of Pakistan (SBP) regarding withdrawal of forced sale value (FSV)

facility on illiquid securities in taking provision coverage against non-performing

loans (NPLs) is a blow to HBL. HBL has relatively low provision coverage against

historical NPLs and we expect the bank to make more provisioning to the tune of Rs

5.2 bn that could impair our CY07 EPS forecast of Rs 26.85/share.

Product Lines


Services / Products Offered by the bank

Car to car

Car Loan

Credit Cards

Deposit Accounts

Bancassurance

Debit Card

Phone Banking

Mutual Funds


1. Credit Cards

Welcome to a world of convenience, flexibility and opportunity. The HBL Credit Card

will add simplicity and excitement to your life. Accepted at over 24 million merchants

worldwide, HBL Credit Card makes shopping fun and paying simple. Make the most out

of your shopping experience with your very own HBL Credit Card.

Gold Card Green Card

i. Convenience

ii. Security

iii. Affordability

iv. Cash Advance

v. Balance Transfer Facility

vi. Internet shopping


i. Convenience

Instead of paying with cash, simply present your HBL Credit Card to the

shopkeeper and pay for anything you want.

Bill Payments

We'll pay your bills on your behalf and charge the amount to your HBL Credit

Card. You can give one-time standing instructions to pay your monthly bills.

Check the amount in your monthly card statement and make the payment with

your regular card payment.

SMS Alerts

For all transactions, an SMS alert will be sent to you on your mobile phone to

confirm that the transactions have been conducted by you. A nominal fee will be

charged for this service.

E-Statements

You can enroll for an e-statement with a simple call. An e-statement with details

of all your transactions will be sent to your specified email address every month.

You won’t have to wait for your paper statement any more or have to worry about

storing it.

Statement by Fax

HBL Credit Card also offers the facility of receiving your card statement by fax.

Just give us a call and your last card statement will be faxed to you at the fax

number specified by you

ii. Security.


Your HBL Credit Card ensures your money stays completely secure. You cannot

lose cash if you don’t carry it. In the unlikely event that your card is stolen, call us

at HBL Phone Banking and your card will be blocked immediately.

iii. Affordability

Buy Now, Pay Later

HBL Credit Card gives you the flexibility to buy what you want, when you want

and pay for it later. A credit card statement will be sent to you every month with

details of all your purchases. You will have 21 credit free days to make the

payment from the statement date. Please pay at least 3 days in advance if you

make your payment by cheques to allow enough time for clearance.

Pay As Much As You Want

You have the freedom to pay the entire outstanding amount on your card

statement or as little as 5% of the outstanding balance in your statement. The

remaining amount will be transferred to next month’s statement. A nominal

service charge will be applied to the unpaid amount each month.

Lower Rate Every Year

Just make sure all your HBL Credit Card payments are made before the due date

and you will benefit from a reduction in the rate of service charges at the end of

each year.

iv. Cash Advance

If you require cash urgently, you can go to any specified HBL branch and

withdraw cash at the counter. You can also go to any 1 Link ATM in Pakistan and

more than 780,000 ATMs and financial institutions worldwide displaying the

Visa/Plus logo. You can withdraw cash up to the available cash advance limit on

your HBL Credit Card. For Cash Advance, nominal service charges will be

applied from the withdrawal date.


v. Balance Transfer Facility

With your HBL Credit Card Balance Transfer Facility, you have the opportunity

to pay off balances you owe to other banks through your HBL Credit Card at

lower service charges.

vi. Internet shopping

Enjoy a hassle free shopping experience and shop from a choice of online

merchants, all from the comfort of your home. To activate /de-activate the service

please call 111-111-425

2. HBL Car Loan

HBL Car Loan helps you get your preferred car through a simple and hassle-free

process, backed by superior service and support. Now you can drive a car you

always wanted.

Car Showroom Car Navigator


http://www.habibbankltd.com/individual-customers-carloan-comparecars.php%00%E5%A1%B9%EF%92%81%E1%B4%BB%E4%A1%BF%E2%B2%AF%E5%B6%82%E8%97%84%E6%8C%A7%00%00%EA%AE%A5

http://www.habibbankltd.com/individual-customers-carloan.php%00%E5%A1%B9%EF%92%81%E1%B4%BB%E4%A1%BF%E2%B2%AF%E5%B6%82%E8%97%84%E6%8C%A7%00%00%EA%AE%A5#%23%00

Choice of either a new local/imported car or a reconditioned imported car.

Repayment options ranging unto 7 years.

Upton 85% of financing for the car of your choice.

Insurance at all times for complete peace of mind and security.

Round the clock support available through

3. HBL Phone Banking;

PHONE BANKING

Your bank is just a phone call away. You can now call HBL Phone Banking and save a

trip to the branch. Your query will be resolved in a single telephone call from anywhere

and at anytime.


http://www.habibbankltd.com/individual-customers-phone-banking.php#2

You can place your requests and queries, track the status of your repayment/loan

account and avail other value-added services through HBL Phone Banking.

Eligibility Criteria

Salaried Individuals

Self-Employed Business persons/Professionals

Citizenship Pakistani Pakistani

Age 22-60 years 22-65 years

Minimummonthly income

Rs. 20,000 Rs. 25,000


Documentation

Salaried Individuals

Copy of CNIC

2 recent passport size photographs

Latest original salary slip and personal bank statement for last 3 months

Self-Employed Business persons/Professionals

Copy of CNIC

2 recent passport size photographs

Bank statement for last 6 months and bank letter confirming details of account

Proof of business

Home Loan

HBL yet not offered home loan in the future the management of the HBL will

offered Home loan also.

Types of accounts offered by the bank


Term Accounts

HBL’s Term Accounts are offered in a variety

of tenure with deposits as low as Rs.10, 000.

HBL Advantage Account

Term Profit

10 year 18%

5 year 15%

3 year 14%

1 Year 12%

Multiple options for tenure and profit payout

Loan facility up to 90% of deposit

Minimum required investment as low as Rs. 25,000

Special Notice Time Deposit

7 days or 30 days (and over) notice

Minimum deposit of Rs. 10,000

Balances less than Rs. 1 million

Balances equal to and greater than Rs. 1 million

Returns range from 0.75% to 4% depending on notice period and amount


Term Deposit Receipts

3 month term deposit

Minimum balance of Rs. 10 million

Returns range from 0.75% to 2.25%

IPDC

Minimum investment of Rs. 20 million except in the case of 1 month where

minimum investment is Rs. 100 million

Available in 1 month, 3 month, 6 month, 12 month and 3 year terms

Profit paid on maturity

Rates on IPD are conveyed on a daily basis by the Treasury Division

Remittance Munafa plus Deposit (Certificates)

Available in 1 year, 3 year and 5 year certificates

Profit disbursement is monthly, quarterly, bi-annually, annually and on

maturity

Profit paid on maturity

Returns range from 7.8% to 11%

Current Account

Non-profit bearing

No transaction limits

Minimum balance of Rs. 10,000. If the average balance falls below this

amount, then service charges will be deducted

No restriction on anyone opening a Current Account (as long as regulatory

guidelines are met)

Basic Banking Account (BBA)

No minimum balance

No service charges


Savings Account

Profit paid bi-annually

Minimum average balance of Rs. 10,000

5% profit per annum

HBL Value Account

7% profit per annum*

Profit credited every 3 months

Deposit ranges from Rs. 10,000 to Rs. 100,000

Flexibility of withdrawals

HBL Supervalu Account

7.25% profit per annum*

Profit credited every 3 months


Deposit ranges from Rs. 100,000 to Rs. 500, 00

Flexibility of withdrawals

Remittance Munafa Plus Saving Account

Remittance Based (no credit allowed except remittance)

Daily Basis Product

Tiered

Monthly profit

Minimum average balance of Rs. 10,000

Less than Rs. 20,000 earns 0.10% profit

Rs. 1 million and above earns 5% profit

Special Saving Bank Deposit Scheme

Daily Basis Product

Tiered

Monthly profit

Minimum balance of Rs. 20,000

Returns unto 8%

Daily Munafa plus Deposit Account

Daily Basis Product

Tiered

Monthly profit

Minimum balance of Rs. 50,000

Returns unto 8%

FC-SB


Savings Account offered in 3 currencies, USD (US dollar), EUR (Euros) and

GBP (UK pound)

Tiered product, with rates depending on choice of currency

To earn profit, minimum balance in USD, EUR and GBP is 1,000

Interest is payable on a quarterly basis

HYFFD (High Yield Foreign Currency Fixed Deposit)

Available in 1 month, 2 month, 3 month, 6 month and 12 Month in USD,

EUR and GBP

Tiered product, with rates depending on choice of currency and term

Profit paid on maturity only. No interim interest is payable.

Tabeer – Children Education:


An insurance plan that enables parents to cover education and marriage costs.

DEBIT CARD

HBL Visa Debit Card allows you to pay for your purchases directly from your bank

account. You don’t have to carry cash and your monthly statement provides you with a

complete record of all your transactions so you can manage your expenses with ease.

No Interest

Ease & Security

No Liability

International Recognition& Acceptability

Spending Limits

Free Account Statement

24 hour Customer Service

Global Customer Assistance Service


HBL has a long history of being a partner of growth for business and industry. We

provide tailored banking solutions to business customers of all sizes in a wide range of

industries.

We cater to the needs of a broad spectrum of clients. To do this, the business banking

group is segregated by the size of the customer. For customers with an annual turnover

between PKR 50 million to PKR 300 million, our Commercial Banking group provides a

wide range of products that meet specific customer needs.

The Corporate Banking Group focuses on personalized services to large corporate

borrowers who need tailored facilities. The Corporate Bank manages a diverse portfolio,

being an active player in a multitude of sectors including textiles, sugar, leather,

pharmaceuticals, fertilizer, petrochemicals, power, aviation, automotive, telecom, oil and

gas and FMCGs.

The Investment Banking Group is a market leader. It provides innovative capital strategy

solutions to major local and multinational entities.


HBL offers a wide range of products and services for its business customers. They are as

follows:

Competitors

Local Private Banks in Pakistan

Allied Bank of Pakistan Limited

Arif Habib Rupali Bank Limited

Askari Commercial Bank Limited

Bank Al Habib

Bank Al Falah Limited

Faysal Bank Limited

MCB Bank

United Bank Limited

Foreign Banks in Pakistan

Citibank NA

ABN AMRO Bank NV

HSBC

American Express Bank Limited

Emirates Bank

Doha Bank

Bank of Tokyo Mitsubishi Limited

However Habib Bank feels that its major competitors are as follows:


United Bank Limited (UBL)

MCB Bank

Citibank

Askari Bank

As far as UBL is concerned, Habib Bank feels that it is a competitor because UBL itself

is a sister HBL of Habib Bank as the Abu Dhabi Group has stake in UBL and so there is

always a comparison between them.

Furthermore, Askari Bank is a competitor because of the fact that the product and

services that it offers is fairly similar to that of Habib Bank and its markup rates are

similar as well. MCB, after being privatized has also introduced a wide variety of

services and with its large number of account holders, it is also a big competitor.

Citibank is a foreign bank that has been established in Pakistan for a long period of time

and has introduced a number of first class services and as Habib Bank is also competing

in the services industry, it needs to benchmark its product and services to a bank with a

stature to that of Citibank

Their Goals and Strategies

United Bank Limited

UBL was established in 1959, to provide banking facilities to the nation, after its

nationalization in 1971, the bank became an inefficient enterprise, however after its

privatization in 2000; the whole face of UBL has been changed.

Today UBL stands on a solid network of more than 1000 branches nationwide and 15

overseas branches and with an experience of 46 years its main goal is to become the

leading bank of Pakistan.

To achieve its goal, UBL has introduced innovative products in the banking sector to

facilitate the general public. It was one of the very first banks to introduce internet and


SMS banking to its customers. It has divided its banking into three divisions, each having

customized products to satisfy the needs of that particular division:

Consumer: for individual customers

Commercial: for small and medium enterprises

Corporate: for large national and multinational companies

These strategies have helped UBL to raise its image in the banking sector. Its long term

credit rating is ‘AA+1’.

MCB Bank

In 1974, MCB was nationalized along with all other private sector banks. This led to

deterioration in the quality of the Bank’s loan portfolio and service quality. Eventually,

MCB was privatized in 1991. The vision of MCB is

‘Challenging and Changing the Way you Bank.’

The main strategies of the bank have concentrated on growth through improving service

quality, investment in technology and people, utilizing its extensive branch network,

developing a large and stable deposit base and managing its non-performing loans via

improved risk management processes.

In 2006, MCB Bank was awarded the Euro money Award for the ‘best bank in Pakistan’,

which shows its commitment of changing the way you bank.

Askari Bank

Askari Commercial Bank was established in 1992, with the vision of maintaining

excellent standards of banking quality and service, so as to serve its customers better.

With time Askari Bank has also changed its identity, changing its name to a shorter

‘Askari Bank’, a new logo and a new slogan ‘Ask Us’.

1


Askari Bank has a wide variety of product and services that cater to need of all type of

customers. It also developed a wide variety of products for the ‘Ksaans’ or farmers of

Pakistan, a segment of Pakistani’s neglected by the baking sector of Pakistan. Askari

bank was also the first bank in Pakistan to introduce ATM machines on a third party

basis.

Askari Banks long term rating of ‘AA+’ by Pakistan Credit Rating Agency Limited

(PACRA) also shows its commitment of developing excellent standard of products and

services for its customers.

Citi Bank

Citi Bank was established in Pakistan in 1990 and since then has been using its

international roots and knowledge to make a name in the Pakistani banking sector. Its

main vision is to provide right financial solutions - every time, all the time and to fulfill

their vision Citi Bank has used its ability to identify market needs and develop products

which are unique in concept and fulfill customer requirements. Every customer is served

by a versatile team of relationship managers who ensure in-depth knowledge of trends

and opportunities while synchronizing their financial activities.

Some of the innovative products introduced by Citi Bank or the very first time in the

Pakistani Banking sector are as follows:

CitiGold Priority Banking

Photo Credit Card

First to launch Personal Loans in Pakistan

First foreign bank to launch MasterCard in Pakistan

Complaint Tracking System (CTS) launched

Organizational structure


A well-developed and properly coordinate structure is an important requirement for

the success of any organization. It provides the basic framework within which

functions and procedures are performed. Any organization needs a structure, which

provides a framework for successful operations. The operation of an organization

involves a number of activities, which are related to decision making, and

communication of these decisions. These activities must be well coordinated so that

the goals of the organization are achieved successfully.

STRUCTURE OF HBL

At present the Bank operates through one central and 23 Regional Offices and 1439

branches, all over Pakistan. The president and Executives Committee look after the

affairs of the Bank. Each Regional Head Quarter is headed by a Chief Executive and

assisted by General Manager Operations and General Manager Support Services. The

Regional Head Quarter controls the branches in their area. Overseas operations

consist of 65 main branches, two affiliates, two representative offices and two

subsidiaries. President, from Head Office at Karachi controls the officers of the Bank

with the help of the senior management. Functional responsibilities of the Banks are

broken into seven groups known as 1) International Operations Group2) Corporate

Banking and Treasury Investment Group3) Retail Banking and Operation Group

Finance, Audit and Administration Group5) Assets Remedial Management Group6)

Credit Policy Group7)Corporate Bank, Financial Institutions and Project Finance

Group. In addition to the overall controlling authority, president also manages the

International Operations Group individually. While the Senior Executive Vice

Presidents supervise rest of the functional groups. Each Senior Executive Vice


President is individually responsible for the group which is assigned to him. At the

level of provinces there are Regional Head Quarters headed by Regional Chief

Executives (RCE). Each RCE is assisted by GM operations and GM Support

Services. Branches are also controlled by the RCEs. Circle Offices of the past times

have been removed to reduce Managerial Layers, which were working under the

control of Zonal Offices. This happened as a result of policy of beginning new

changes in the organizational structure.

Organizational Hierarchy chart



President

Chairman

SEVP International Operation

Board of Directors

SEVP Corporate Banking & Treasury

SEVP Finance, Audit & Administration

SEVP Asset Remedial Management

SEVP Retail Banking & Information Technology

SEVP Credit Policy

SEVP Corporate Banking, financial institute & Project finance

43

Number of employees

Main offices

Habib Bank Plaza I.I. Chundrigar Road

Karachi – 75650 Pakistan.

Phone: 2418000 [50 Lines]

Fax: 021-921751


HBL Profile: Habib Bank Limited

Ticker: HBL

Exchanges: KAR

2008 Sales: 73,498,000,000

Major Industry: Financial

Sub Industry: Commercial Banks

Country: PAKISTAN

Employees: 14123

44

Comments on the organizational structure

The purpose of an organizational structure is to help in creating an environment for

human performance. It is then, a management tool and not an end in its own. Although

the structure must define the task to be done, the rules so established must also be

designed in the light of abilities and motivation of the human recourse available. By

analyzing the organizational structure of HBL presence of the following elements can be

found in its structure.

Centralized Decision Making

By looking at the organizational structure of HBL would be found that the structure at

HBL is a critical one. All the decisions are made at the top management level and the

subordinates have to obey these decisions. This trend in the decision making shows a

pattern of rigidity in structure of HBL.

Downward Communication

Communication is the process by which information is exchanged and understood by two

or more people, usually with the interest to motivate or influence the behavior of others in

the organization. Downward communication is the message and information sent from

top management to subordinates in a downward direction. Managers can communicate

downward to the employees through speeches, massages in HBL publications,

information leaflets, tucked into pay envelops material on bulletin boards, policy and

procedure mandates. The same pattern is followed at HBL. No doubt it’s a very


traditional approach but it can create problems because it ignores the receiver of the

communication because the issuer

Of policies and procedures does not ensure communication. In reality may the messages

communicated downward are not understood perfectly.

Chain of Command

The chain of command is an unbroken line of authority that links all persons in an

organization and shows who reports to whom. By analyzing the organizational structure

it can be found that there is a scalar principle followed with in the Bank because each and

every person knows to whom can one report. The authority and responsibility for

different tasks and duties are different, as well as every one knows the successive levels

of management all the way to the top.

Authority and Responsibility

The chain of command illustrates the authority structure of HBL. Authority is the formal

and legitimate right of the manger to make decisions, issues orders and allocates

resources to achieve organizational desired outcomes. By analyzing the chain of

command of HBL, one can come to the conclusion that, as there is scalar pattern

followed at the organizational setup of HBL therefore it is implied that everyone in his

position knows that what is one’s authority and what is the responsibility and the

authority it allocated.

Delegation


Delegation is the process, which managers use to transfer the authority and responsibility

to position below in the hierarchy. Most organizations today encourage managers to

delegate authority to the lowest possible level to provide maximum flexibility to meet

customer needs and adapts to the environment. But at HBL no such system prevails the

managers try to keep as much of the authority as they can and if some authority is

delegated it is sure that it will be misused

Plan of your internship program

A brief introduction of the branch

Habib Bank Limited main branch chubara road Layyah is the center of the employee of

different organizations, cotton and grain business. According to its location majority of

its accounts holders are businessmen and employees of different organizations and as

well as it has huge accounts of the farmers those are the brokers of wheat and cotton. This

Branch work under the very experienced Manager Chudary Sarwer.He is very talented

and hardworking person he tries to make hard to improve the progress of the branch by

leaps and bunds. He manage his employees very efficiently also motivated them

according to his work and encourage them. The employees of this branch are also well

experienced. Every employee of the branch guide the customers properly.As the

working of the branch is organized so different are made in order to make the working

easier and error free. Every person of the branch done his duty beautifully.

Starting and ending dates of internship


I start my internship at HBL from 10-04-2009 to 10-06-2009. I completed two month in

the HBL and in this two month I get great experience from different departments of the

HBL.

The departments in which I got training and the

duration of training

These are departments where I get training

1. Remittance Department

2. Finance Department

3. Account services Department

4. AgriFinance Department

Sr.# Name of the Department Duration

From To

1 Remittance Department 10-04-2009 25-04-2009

2 Finance Department 26-04-2009 10-05-2009

3 Account services Department 11-05-2009 25-05-2009

4 AgriFinance Department 26-05-2009 10-06-2009

Training program


Introduction of all the departments

There are some Names of the departments

1. Account Department


3. Utility bills

4. CD In charge Department

5. Finance department

6. Cash Department

7. Agri -Finance Department

Detailed description of the department I worked

These are those departments where I worked


2. Finance/Advance Department

3. Account services Department


These are detail of there department.


As it is the function of the Bank to the money to any place where there is a

Bank. It is the most easiest and safe way to send money to any place. Bank


charges menial amount as a commission for the remittance. Here in the Habib

Bank Limited Chubara Road Layyah Branch there is also remittance

Department. There are mostly four methods to remit the money. They Are

i. Demand Draft (DD)

ii. Mail Transfer (MT)

iii. Pay Order (PO)

i. Demand Draft

It is the most commonly method used for remittance of money. It is very

simple, firstly a form is to be filled in which all details are specified that

where and it which branch the draft is to be sent then the money is depositor

which is called draft and money can by drawn after showing to the bank of the

specified branch of the Bank. Only specified person can draw the money on

that draft. Another method to secure the payment of the draft could be the

crossing of the draft, which means that it will only be deposited in the payee's

account.

To make it more secured and safe the Bank has coded the amount exceeding

Rs. 15000. Only the banker or the person known the actual amount of the draft

in return bank gets a commission which is its mode of earning.

ii. Mail Transfer (MT)

The money is transferred through mail. One Branch of the bank sends

advice to the branch of the same bank to credit the account of payee. In this


type of transfer the payee must has the Bank account. For example, now

days PTV's licenses are made all over the Pakistan. Bank also gets

commission on the mail transfers.

iii. 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 fee 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 cancelled or duplicate of the pay order is to be

needed is case of misplacement Rs.20 is to be paid.

2. Finance/Advance Department

This department has been working under the supervision of knowledge

experienced & well qualified banker. Mr. Nadeem who has been serving this

bank for last 22 years.

This department has been playing one of the primary function of the bank

because a bank is the organization that accept deposits & give advances.

Advances department is one of the most sensitive and important departments

of the bank. The major portion of the profit is earned through this department.

The job of this department is to make proposals about the loans.

The Credit Management Division of Head Office directly controls all the

advances. As we known bank is a profit seeking institution. It attracts surplus


balances from the customers at low rate of interest and makes advances at a

higher rate of interest to the individuals and business firms. Credit extensions

are the most important activity of all financial institutions, because it is the

main source of earning. However, at the same time, it is a very risky task and

the risk cannot be completely eliminated but could be minimized largely with

certain techniques.

Any individual or company, who wants loan from HBL, first of all has to

undergo the filling of a prescribed form, which provides the following

information to the banker.

There are basically two types of loans.

Fund base

Non-fund base

In fund base the cash is involved while in non-fund base cash is not

involved.

These are following types of advances those are given by the bank.

Cash Finance

Running Finance

Any individual or HBL, who wants loan from HBL, first of all has to undergo the

filling of a prescribed form, which provides the following information to the

banker.

Name and address of the borrower.

a) Existing financial position of a borrower at a particular branch.

b) Accounts details of other banks (if any).

c) Security against loan.


d) Exiting financial position of the HBL. (Balance Sheet & Income

Statement).

e) Signing a promissory note is also a requirement of lending, through this

note borrower promise that he will be responsible to pay the certain amount of

money with interest.

Principles of Advances

There are five principles, which must be duly observed while advancing money to

the borrowers.

Safety

Liquidity

Dispersal

Remuneration

Suitability

a. Safety

Banker’s funds comprise mainly of money borrowed from numerous customers

on various accounts such as Current Account, Savings Bank Account, Call

Deposit Account, Special Notice Account and Fixed Deposit Account. It indicates

that whatever money the banker holds is that of his customers who have entrusted

the banker with it only because they have full confidence in the expert handling of

money by their banker. Therefore, the banker must be very careful and ensure that


his depositor’s money is advanced to safe hands where the risk of loss does not

exist. The elements of character, capacity and capital can help a banker in arriving

at a conclusion regarding the safety of advances allowed by him.

b. Character

It is the most important factor in determining the safety of advance, for there is no

substitute for character. A borrower’s character can indicate his intention to repay

the advance since his honesty and integrity is of primary importance. If the past

record of the borrower shows that his integrity has been questionable, the banker

should avoid him, especially when the securities offered by him are inadequate in

covering the full amount of advance.

It is obligation on the banker to ensure that his borrower is a person of character

and has capacity enough to repay the money borrowed including the interest

thereon.

c. Capacity

This is the management ability factor, which tells how successful a business has

been in the past and what the future possibilities are. A businessman may not have

vast financial resources, but with sound management abilities, including the

insight into a specific business, he may make his business very profitable. On the

other hand if a person has no insight into the particular business for which he


wants to borrow funds from the banker, there are more chances of loss to the

banker.

d. Capital

This is the monetary base because the money invested by the proprietors

represents their faith in the business and its future. The role of commercial banks

is to provide short-term capital for commerce and industry, yet some borrowers

would insist that their bankers provide most of the capital required. This makes

the banker a partner. As such the banker must consider whether the amount

requested for is reasonable to the borrowers own resources or investment.

e. Liquidity

Liquidity means the possibilities of recovering the advances in emergency,

because all the money borrowed by the customer is repayable in lump sum on

demand. Generally the borrowers repay their loans steadily, and the funds thus

released can be used to allow fresh loans to other borrowers. Nevertheless, the

banker must ensure that the money he is lending is not blocked for an undue long

time, and that the borrowers are in such a financial position as to pay back the

entire amount outstanding against them on a short notice. In such a situation, it is

very important for a banker to study his borrower’s assets to liquidity, because he

would prefer to lend only for a short period in order to meet the shortfalls in the

wording capital. If the borrower asks for an advance for the purchase of fixed

assets the banker should refuse because it shall not be possible for him to repay

when the banker wants his customer to repay the amount. Hence, the baker must

adhere to the consideration of the principles of liquidity very careful.

f. Dispersal

The dispersal of the amount of advance should be broadly based so that large

number of borrowing customer may benefit from the banker’s funds. The banker


must ensure that his funds are not invested in specific sectors like textile industry,

heavy engineering or agriculture. He must see that from his available funds he

advances them to a wide range of sector like commerce, industry, farming,

agriculture, small business, housing projects and various other financial concerns

in order of priorities.

Dispersal of advances is very necessary from the point of security as well,

because it reduces the risk of recovery when something goes wrong in one

particular sector or in one field.

g. Remuneration

A major portion of the banker’s earnings comes form the interest charged on the

money borrowed by the customers. The banker needs sufficient earnings to

meet the following:

a) Interest payable to the money deposited with him.

b) Salaries and fringe benefits payable to the staff members.

c) Overhead expense and depreciation and maintenance of the fixed assets of

the bank.

d) An adequate sum to meet possible losses.

e) Provisions for a reserve fund to meet unforeseen contingencies.

f) Payment of dividends to the shareholders.

h. Suitability


The word “suitability’ is not to be taken in its usual literary sense but in the

broader sense of purport. It means that advance should be allowed not only to

the carefully selected and suitable borrowers but also in keeping with the overall

national development plans chalked out by the authorities concerned. Before

accommodating a borrower the banker should ensure that the lending is for a

purpose in conformity with the current national credit policy laid down by the

central bank of the country.

Cash Finance

Cash finance is the biggest loan given to the businessmen, industrialists. After

the proper investigation and documentation these finances are given and

genuine property is pledged as a matter of security. 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. This is a very common form of borrowing by

commercial and industrial concerns and is made available either against pledge

or hypothecation of goods, produce or merchandise. In cash finance a borrower

is allowed to borrow money from the banker up to a certain limit, either at once

or as and when required. The borrower prefers this form of lending due to the

facility of paying markup/services charges only on the amount he actually

utilizes. If the borrower does not utilize the full limit, the banker has to lose

return on the un-utilized amount. In order to offset this loss, the banker may

provide for a suitable clause in the cash finance agreement, according to which

the borrower has to pay markup/service charges on at least on self or one

quarter of the amount of cash finance limit allowed to him even when he does

not utilize that amount.

Bank also keeps three records of the stock and current position. a notice is

also written at the place that the stock are pledged with the bank To get these


types of loan prior permission from the zonal office of the HBL is also

required the bank gets back its principal amount and also markup for the loan.

The rate of markup is Rs. 0.521/1000 per day.

Document Required For the Loan

1. Demand Promissory Note DP Note

This document is filled in by the party that promises to pay the amount

whenever it is demanded.

2. Facility Letter

This is the requisition of the finance facilities to the bank by the party.

3. Balance Confirmation

After the approval of loan this letter is written by the party that such amount is

in the account of the party.

4. Letter of Pledge (IB26)

For the getting of the cash finance a letter of pledge is to be given to the bank

that such property is to be pledged with the bank as a security.

5. Letter of Guarantees (IB 29)

A letter for the personal guarantees is also required, in which the guarantee

from a sound person to the party is attached with the application.

6. Agreement for Financing (IB 6)

This agreement for the short term medium term/long term on the markup

basis. At most these are the documents required in attaining of the loan.


Running Finance

When a customer borrows from a banker a fixed amount repayable either in

periodic installments or in lump sum at a fixed future time, it is called a

“loan”. When bankers allow loans to their customers against collateral

securities they are called “secured loans” and when no collateral security is

taken they are called “clean loans”.

The amount of loan is placed at the borrower’s disposal in lump sum for the

period agreed upon, and the borrowing customer has to pay interest on the

entire amount. Thus the borrower gets a fixed amount of money for his use,

while the banker feels satisfied in lending money in fixed amounts for definite

short periods against a satisfactory security.

This is the most common form of bank lending. When a borrower requires

temporary accommodation his banker allows withdrawals on his account in

excess of the balance which the borrowing customer has in credit, and an

overdraft thus occurs. This accommodation is generally allowed against

collateral securities. When it is against collateral securities it is called

“Secured Overdraft” and when the borrowing customer cannot offer any

collateral security except his personal security, the accommodation is called a

“Clean Overdraft”. The borrowing customer is in an advantageous position in

an overdraft, because he has to pay service charges only on the balance

outstanding against him. The main difference between a cash finance and

overdraft lies in the fact that cash finance is a bank finance used for long term

by commercial and industrial concern on regular basis, while an overdraft is a

temporary accommodation occasionally resorted to.

Demand Financing/Loans


When a customer borrows from a banker a fixed amount repayable either in

periodic installments or in lump sum at a fixed future time, it is called a

“loan”. When bankers allow loans to their customers against collateral

securities they are called “secured loans” and when no collateral security is

taken they are called “clean loans”.

The amount of loan is placed at the borrower’s disposal in lump sum for the

period agreed upon, and the borrowing customer has to pay interest on the

entire amount. Thus the borrower gets a fixed amount of money for his use,

while the banker feels satisfied in lending money in fixed amounts for definite

short periods against a satisfactory security

3. ACCOUNT DEPOSIT DEPARTMENT: -

It controls the following activities:

a) A/C opening.

b) Issuance of cheque book.

a) Current a/c

b) Saving a/c

c) Cheque cancellation

d) Cash

Account opening


The opening of an account is the establishment of banker customer relationship.

Before a banker opens a new account, the banker should determine the

prospective customer’s integrity, respectability, occupation and the nature of

business by the introductory references given at the time of account opening.

Preliminary investigation is necessary because of the following reasons.

i. Avoiding frauds

ii. Safe guard against unintended over draft.

iii. Negligence.

iv. Inquiries about clients.

There are certain formalities, which are to be observed for opening an account

with a bank.

Formal Application

Introduction

Specimen Signature

Minimum Initial Deposit

Operating the Account

1. Pay-In-Slip Book

2. Pass Book

3. Issuing Cheque Book

a) Qualification of Customer


The relation of the banker and the customer is purely a contractual one,

however, he must have the following basic qualifications.

He must be of the age of majority.

He must be of sound mind.

Law must not disqualify him.

The agreement should be made for lawful object, which create legal

relationship

Not expressly declared void.

b) Types of Accounts

Following are the main types of accounts

1) Individual Account

2) Joint Account

3) Accounts of Special Types

Partnership account

Joint stock HBL account

Accounts of clubs, societies and associations

Agents account

Trust account


Executors and administrators accounts

Pak rupee non-resident accounts

Foreign currency accounts1

Issuing of cheque book:

This department issue cheque books to account holders.

Requirements for issuing cheque book

a) The account holder must sign the requisition slip

b) Entry should be made in the cheque book issuing book

c) three rupees per cheque should be recovered from a/c holder if not then debit

his/her account.

Current account

These are payable to the customer whenever they are demanded. When a banker

accepts a demand deposit, he incurs the obligation of paying all cheques etc.

drawn against him to the extent of the balance in the account. Because of their

nature, these deposits are treated as current liabilities by the banks. Bankers in

Pakistan do not allow any profit on these deposits, and customers are required to

maintain a minimum balance, failing which incidental charges are deducted from


such accounts. This is because the depositors may withdraw Current Account at

any time, and as such the bank is not entirely free to employ such deposits.

Until a few decades back, the proportion of Current Deposits in relation to Fixed

Deposits was very small. In recent years, however, the position has changed

remarkably. Now, the Current Deposits have become more important; but still the

proportion of Current Deposits and Fixed Deposits varies from bank to bank,

branch to branch, and from time to time.

Saving account

Savings Deposits account can be opened with very small amount of money, and

the depositor is issued a cheque book for withdrawals. Profit is paid at a flexible

rate calculated on six-month basis under the Interest-Free Banking System. There

is no restriction on the withdrawals from the deposit accounts but the amount of

money withdrawn is deleted from the amount to be taken for calculation of

products for assessment of profit to be paid to the account holder. It discourages

unnecessary withdrawals from the deposits.

In order to popularize this scheme the State Bank of Pakistan has allowed the

Savings Scheme for school and college students and industrial labor also. The

purpose of these accounts is to inculcate the habit of savings in the constituents.

As such, the initial deposit required for opening these accounts is very nominal.

Cheque cancellation:

This department can cancel a cheque on the basis of;

a) Post dated cheque

b) Stale cheque


c) Warn out cheque

d) Wrong sign etc

Cash

This department also deals with cash. Payment of cheques, deposits of cheques

etc.


At HBL Agri Finance we understand the peaks and troughs of farming. That’s

why we have designed our lease, loan and hire-purchase agreements to match

your income situation. On an arable or dairy farm, for example, cash flow is tight

early in the year when you are buying stock and feed. You may have a surplus at

harvest time or when you receive the single farm payment.

We simply arrange to take high repayments when cash flow is good and lower

ones at quieter periods. If necessary, you can even hold off payments during

periods when your income is under pressure.

Flexible loan

Our lease, loan and hire-purchase agreements do not just apply to farms. We also

help finance equipment used by local authorities, landscape gardeners and sports

clubs in caring for grounds. Unlike buying equipment outright, this allows you to

spread your payments over several yearly budgets. If club membership is an issue,

it means you can spread costs fairly between present and future members. For

more information, contact your local HBL Agri Finance

Area sales executive


Multiple equipment purchase

Page 3

If you need a range of different pieces of equipment or vehicles over period of

time, we may be able to arrange a credit line for you. We can make an agreed

amount of finance available to you to draw down (take) as you need. Ask your

Agri Finance area sales executive about credit lines and agency purchasing.

Outright purchase

If you want to buy equipment outright, our hire-purchase agreement is the flexible

and cost-effective alternative to overdrafts or term loans. Full ownership passes to

you at the end of the agreed term. On the other hand, with a loan agreement, you

will own the equipment from the beginning. This can be useful in grant-aided

projects, for example, where you need an invoice in your own name. Hire

purchase and loan agreements offer:

fixed repayments, making budgeting easy;

repayments which you can time to suit the income pattern

Of your farm;

the option to claim capital tax allowances on the equipment;

interest on your repayments which is tax-deductible ;

A flexible deposit;

VAT which you can claim back immediately on the whole purchase

Price (except for motor vehicles); and

with a hire-purchase agreement, no need for extra security or to repay

On demand (unlike bank loans).

Ask your HBL Agri Finance area sales executive to explain

The benefits to you in detail.


Lease agreements

Leasing is an efficient way of paying for the use of equipment over a set

Period of time. You negotiate the purchase of the equipment you want and we

will pay

The supplier and keep legal ownership of the equipment. You then rent the

equipment from us over an agreed term - from five up to seven years for tractors.

You can then choose from the following options.

Carry on using the equipment for a small yearly rental fee.

Sell the equipment as our agent and keep all the sales proceeds.

Trade it in as a repayment against new equipment.

Other benefits of leasing include:

Fixed rentals making budgeting easy;

Rentals you can time to suit your income;

Using the equipment just as if you owned it;

Rentals which are fully tax-deductible (except for motor vehicles);

Using an overdraft facility for other purposes;

You do not usually need extra security which you would for a bank loan;

And

a flexible first rental payment.

Your HBL Agri Finance sales executive will tell you more about

The benefits of leasing. Talk to your accountant about which leasing

Product is most suitable for you.

The key to our success is our focus and dedication to agriculture. We know that

our business depends on farming - a unique industry with unique problems and

challenges. As a result, we make it our business to understand the needs of Irish

farmers. Our field service is one of a kind - a team of dedicated area sales

executives, covering the whole country and backed by teams at regional offices.

Our nationwide network of branches means we understand the rural economy.


We always try to make sure our service and products meet your needs. We work

with agricultural dealers and manufacturers to provide a quality service to the

farming community.

Agriculture finance is defined as a subset of rural finance dedicated to financing for

agricultural related activities viz. input supply, production, processing, and

marketing.

understood as the outstanding practice in the particular process or function, i.e.

producing

the best results, among those in the same industry. Rural finance, as defined by the

World Bank(WB Report-2004), includes a range of financial services such as

savings, credit,

payments and insurance to rural individuals, households, and enterprises, both farm

and

non-farm, on a sustainable basis. It includes financing for agriculture and agro

processing/agribusiness.

Microfinance is the provision of financial services for poor and low income people

and also covers the lower ends of both rural and agriculture finance. It includes

financing

both in rural and urban areas. Consistent with these operational distinctions,

agricultural microfinance can be defined as referring to the overlap of agriculture

finance andmicrofinance dedicated to providing financial services to poor agricultural

households.

Importance of AgriFinance

Availability of agrifinance is a prerequisite for enhancing productivity and

improving standard of living by breaking the vicious circle of poverty of small


Capital Structure G.E

Budgeting G.E Auditor Executive

Investment G.E Accountant Executive

TreasurerFinance director

Chief Financial Officer (CFO)

Ayaz Ahmed

Chief Executive Officer (CEO)

Finance Department

farmers. It has been observed that farmers usually utilize the credit facility to meet

short term credit needs mostly for purchase of inputs. The banks are also interested

in extending short term credit. The experience of developed economies shows that

agri/rural credit for investment in the form of machinery, equipment and

infrastructure has played major role in increasing productivity and future cash

flows. Therefore, banks need to increase the supply of credit in the form of medium

to long term investment in the farm and nonfarm sector. Farmers can also avail the

opportunity to transform their lands into mechanized farming units to reduce cost

and increase profitability.

Structure of the Finance Department

Departmental hierarchy


Functions of the Finance Department

Accounting system of the HBL

HBL has some accounting system's functions

• Balance inquire

• Product inquire

• Transaction history


• Statement requests

• Cheque book request

• Stop payment

• Pay order / DD request

• Balance certificate

• Fund transfers

• A/ C maintains

• Verification / generation / change of TPIN numbers

• Utility bill payments

These are some detailed of these

During the course of daily business of the branch, a number of cheques are

presented by customer for cash payment, though transfer, delivery and clearing

cheques at the counter. Also a number of new accounts are opened and cash is

deposited by the customers. A number of new vouchers are passed by the branch by

debiting, one account and crediting another account.

So in order to ensure that during the day all the transactions have properly been

recorded and they are complete in all respects and are recorded in proper books by

the branch this recording is done on daily basis and maintained by account section.

Balancing the cash book means that all the transactions have properly been

recorded and there is no mistake in any of these vouchers.

Arrangement of voucher.

Preparation of suplimentaries.


Preparation of summary.

Agreement of total of the summary, with the total of transfer book.

To Judge the performance of branches, the Head Office requires periodic statements

from them. Through these statements the top management watches the progress of

the branches and they provide them necessary guidance, The top management

decisions depend upon these statements also. The following are the important

statements prepared by the account section: -

Balance sheet on daily basis.

Pak account on daily basis.

Provisional income and expenditure statement on monthly basis.

Finance system of the HBL

• Demand finance

• Fixed assets financing (FAF)

• House Finance

• Running finance

• Cash Finance

• Musharika Financing

• LMM Finance (Local Manufactured Machinery)


• Hire Purchase Financing

• Bridge finance

Mobilization of funds

The business of accepting deposits of money and lending and/or investing of such monies

is an activity governed by specific laws. The Central Bank has, in terms of the provisions

of the Banking Act No. 30 of 1988 or the Finance Companies Act No. 78 of 1988,

authorized the following three categories of institutions to carryon such business:

Licensed commercial banks

Licensed specialized banks

Registered finance companies

Only the following categories of institutions/organizations are exempted from the

requirement to obtain a license from the Central Bank for the purpose of carrying on the

business of.

By these activitires we can mobilized our bank' funds

Improving member services and patronage

Consider use of outside funding

Improving operating efficiency

Promoting patronage

Giving priority to mobilizing member funds

Too much institutional capital


Cooperatives need to find ways to increase member funding, since this provides the

lowest cost, lowest risk form of capital for operations and investment. As government

and donor support continues to decline, increasingly this also becomes the only practical

source of funding for cooperatives. Even where outside support is still available, the

advantage of increased reliance on member funding is that it gives greater autonomy to

the cooperative and lowers the risk of eventual withdrawal of outside funding.

The strategy for increasing member funding depends on the particular circumstances of

the cooperative, the type of activity it is engaged in and its scale of operation. Among the

strategies to consider are:

Improving member services and patronage

Most strategies for cooperative development require increased funds. The strategy for developing

the cooperative so that it maintains or expands its market position should focus on operational

efficiency and on patronage, on how the cooperative can maintain existing business and attract

more business and new members. Increased patronage provides an important source of member

capital. However, it also usually requires more working capital for the operation of the business

of the cooperative and may require more investment in fixed assets such as buildings and

equipment.

Consider use of outside funding

In simple terms, the higher the institutional and member capital, the more outside lenders such as

HBL and suppliers will be willing to loan funds to the cooperative. Care should be taken in

borrowing, however since the higher the outside funding as a proportion of funds used, the higher

the risk if something goes wrong. (This risk is measured by the gearing ratio - an increased

gearing ratio meaning a higher risk). If more funds are required, a low gearing ratio can be

maintained if member contributions are also increased. For example, if the cooperative owns

$1000 and needs an additional $1000, it will be highly geared (50% gearing ratio 4) if all funds


come from a loan. Alternatively, if the cooperative raises an additional $500 from member

funding, the sum to be borrowed would be lower The gearing ratio would then be 25% 5

representing a considerably lower risk. It is also easier to find a bank or other lender willing to

provide the less risky loan. The interest rate will also often be lower

4 i.e. gearing ratio = 1000 ÷ (1000 + 1000) × 100 = 50%

5 i.e. gearing ratio = 500 ÷ (1500+ 500) × 100 = 25%

Improving operating efficiency

Improving efficiency can be important for the mobilization of funds. It enables a

cooperative to offer more competitive prices, securing and keeping member loyalty.

Funding and efficiency are related. Cooperatives with sufficient funds are able to invest

in training and technology to reduce costs, and to increase or improve production. Well

managed, technologically efficient cooperatives are generally more likely to accumulate

capital.

Promoting patronage

The more members use the cooperative’s services - that is by selling through or buying

from the cooperative - the more funds the cooperative will receive. It is therefore

important for the cooperative to promote patronage. This is most easily achieved when

cooperatives provide services valued by members, offer competitive prices and prompt

payment.


Giving priority to mobilizing member funds

Most cooperatives will have to rely on member generated funds to finance their

operations. Members’ financial stakes in the cooperative enforce greater accountability of

the cooperative to members, build member participation in decision making and

strengthen cooperative financial self-reliance and operational autonomy. There are a

number of ways in which member funds are obtained. In many cases, increased levels of

funding can be achieved through adjusting these methods:

Non-refundable membership fees upon joining

These fees are often small, but they need not necessarily be so if new members are

buying into a successful business that provides valuable services.

Member shares

All members are required to purchase shares, which are usually the primary source of

member capital. Shares purchased should earn interest and are refundable to the member

upon withdrawal from membership or to his/her heirs in the event of the member’s death.

Shares in some cooperatives can be paid for over time through check-offs from a

member’s transactions with the cooperative. The members share account is credited with

the amount of the deduction.

Many changes in cooperative financing are underway in Europe. These have included the

issue of new classes of shares in addition to member shares, that are weighted on the

.asis of one share, one vote, providing control and governance incentives that result from

cooperative solidarity but not necessarily by the traditional ownership structure. This

technique can attract additional members and capital from those who would otherwise not


be willing to contribute their capital due to their relative lack of control when capita

entitles each member to only one vote regardless of the members’ investment in the

cooperative. Other changes involve the use of limited company forms of organization for

certain activities undertaken for the benefit of cooperatives and their members. These

activities may include wholesale or other large scale marketing activities.

Retention of surplus.

A surplus arises when the cooperative is able to retain some of the proceeds from sales of

members’ produce or from members’ purchases from the cooperative. This surplus can

either be retained by the cooperative as institutional capita, or paid out in patronage

refunds to members following the close of each year In practice, cooperatives often offer

prices more favourable than those prevailing in the market, creating little surplus and

making it impossible to offer patronage refunds. In other cases, cooperatives are

protected by governments and do not operate in competitive markets, making any surplus

unrelated to competitive performance.

Whenever possible, these practices should be altered either to build up surpluses or

increase patronage refunds and attract new members.

Deferred payments

A surplus creates two opportunities for increasing capital available to a cooperative. One

is the surplus retained, and the other is the patronage refund that is allocated but not

immediately paid out in cash. During the period between the realisation of the surplus

and the cash pay-out of patronage refunds, the cooperative has the use of the cash. Pay-

out may take the form of a share or of an obligation to pay the member in the future.


Cooperatives in North America have been particularly creative in finding ways of

retaining cash while allocating surpluses. The usual procedure is to issue notes payable

over several years, such as five or seven. The member receives a portion of the allocation

each year, while the cooperative is able to rotate its capital over the same period.

Making member delivery rights transferable

In certain new processing and marketing cooperatives in North America the founder-

members can purchase delivery rights which guarantee that the cooperative will purchase

a given amount of produce each year. They also oblige the member to provide a certain

amount of produce. These rights are freely transferable, which gives them a market value.

This feature gives members an incentive to behave in a manner that maintains and

increases the market value of their rights.

Too much institutional capital

For the majority of cooperatives in developing countries, the possibility of accumulating

too much institutional capital any time soon is small. However, members should be aware

that it is actually possible for the original purpose of the cooperative to be lost if the

amount of institutional capital becomes too large. This may result in the exclusion of new

members, because present members do not want others to benefit from the services

provided and surpluses produced by the capital accumulated. It may lead to strategies for

intentional losses so that the capital accumulated returns to the members in the form of

unrealistic prices for services. It may also lead to the conversion of the cooperative to

another legal form, such as a limited company While this may benefit existing members

by providing them with higher incomes, the members should be aware that many of the

ideals of a cooperative may be lost in the process.

Generation of funds


The HBL can generated the funds by these sources

Making Finances

Investing in various financial markets

By giving these facilities to their customers we can generates the funds

Positive Return on Loan

Provision of Working Capital

Shifting of funds into Productive Hands

Strengthening Industrializations

Backbone of National Economy

Lending Products:

Running Finance

Cash Finance

Demand Finance

Consumer Finance

PAD

Investment in Financial Markets:

The investment functions are usually performed by Treasury Office of the bank. Treasury

invests deposit for:

Ensuring optimum utilization of Available resources.

Rising additional resources required for Meeting credit demands.

Managing market and liquidity risks.


Investment Markets

By investing the HBL in the investment market generat the funds easly and efficiently

that a good place for generating the funds by invests the money. These are three Markets

Money Market

1. T-Bill and Govt. Securities

2. Bonds of Provincial Govt.

3. Defense Saving Certificates

4. Mutual Funds etc.

Capital Market

1. Equities e.g. shares and

2. Mutual Funds

3. Bonds

4. Debt Market

Foreign Exchange Market

1. Spot Transactions

2. TOM Transactions

3. Outright Transactions

4. Swap Transactions

Sources of funds

Banks require funds to support lending. Banks lend to home buyers, credit card

customers, small and medium businesses and institutional clients.

Banks source their funds from customer deposits and wholesale


markets (domestic and international). Since the onset of the global financial crisis in

late 2007, bank funding costs have become a topic of considerable discussion given

their link to retail interest rates. The deposits are the major sources for a commercial

bank. There are two kinds of deposits in a bank including checkable deposits and

non-transaction deposits. Checkable deposits form 9% of the all sources of funds

and non- transaction deposits form 61% of all sources of funds. The other sources

of funds for a bank are borrowings from other banks and bank capital which almost

makes 24% and 6% of the total sources of funds respectively.

When examining banks’ funding, it is important to recognize that it is not free and

the price of funding varies according to a range of factors.

For most of the last decade, banks’ funding sources and the cost of funding has

been relatively predictable. Movements in the Reserve Bank’s cash rate have

generally closely approximated changes in total bank funding costs.

Since the global capital markets crisis in late 2007, the Reserve Bank’s cash rate has

not provided an accurate indicator of changes in bank funding costs. By providing

an overview of bank funding, the paper aims to help explain why this is the case.

Over the past year, financial markets have experienced a serious global financial

event, triggered by the US sub-prime lending market

For banks, the global credit crisis has made it more difficult to access funds and

those funds are more expensive

No-one is predicting a quick end. There is a possibility that it may take two years

to see conditions in financial markets stabilize.


Debt markets

In terms of funding access, for well-rated institutions (i.e. those with strong

credit ratings) borrowing money in their own name, there is generally

sufficient liquidity in the global debt markets. However, prices remain

elevated.

Funding bank lending through securitization markets, however, is very

strained. There is very little issuance occurring

Funding

About 50% of banks’ funding comes from deposits; a further 25% from

short-term wholesale funding, and 25% from long-term wholesale funding.

Wholesale funding comes both from domestic and global financial markets

(splits will vary from bank to bank).

Short-term funding (excluding bills of exchange) constitutes 64% domestic

issuance and 36% offshore issuance. For long-term funding the spit is 25%

domestic issuance and 75% offshore issuance. (These proportions vary

between banks.)

Short-term funding costs have been volatile since August 2007. On several

occasions the 90-day Bank Bill Swap Rate (BBSW)1 spiked sharply

(August 2007, September 2007, December 2007, February 2008, March

2008, June 2008, September 2008 and October 2008).

Long-term funding costs remain elevated with no evidence of easing.


Since the onset of the financial crisis, net flows into deposit accounts have

been strong, particularly higher yielding personal investment accounts.

Balances in these accounts have increased 19% (annualized) compared to

1% for lower yielding personal transaction accounts.

Market interest rates and the cash rate

A number of factors influence interest rates including changes in the official cash

rate, inflation expectations, credit ratings and the broader global financial

environment. Under normal circumstances, cash rate changes are expressly linked

to market interest rate changes. Over the past year, however, global events have

had a greater influence on market rates.

Interest Rate Margins

Banks’ interest rate margins continue to contract. Interest rate margins for

Australian banks have contracted at a slightly faster pace since the beginning of the

global financial crisis.

1. Global environment

Over the past year, financial markets have been in the midst of a serious global

financial event caused by the sub-prime crisis in the USA. The Reserve Bank has

commented on the large increase in the delinquency rate on US sub-prime

mortgages which had grown to about 18 per cent of housing loans in the US.

Also, of the $US2 trillion of US residential mortgage backed securities (RMBS)

issued to investors in 2006; around a quarter were backed by sub-prime mortgages.

As a result of the global credit crisis, there was a sharp decline in investor appetite

for RMBS, even those of the highest credit quality.


The Reserve Bank said that the increase in risk aversion, and the existence of

considerable uncertainty about where the spreads on these securities will settle, has

meant that traditional investors in RMBS have preferred to wait until more settled

conditions return.

This increased risk aversion has significantly increased the cost of short-term and

long-term funds sourced by financial institutions internationally and in Australia.

Additionally, there has been considerable volatility in the cost of funds.

Financial experts are not predicting a quick end to the current financial scenario,

with some suggesting it will take up to two years to see financial market conditions

stabilize, though there is still uncertainty over whether funding costs will return to

the lower levels they have been in the past.

2. Overview of bank funding

Generally speaking, banks source their funds from deposits (50%) and through

wholesale funding, that is, short-term wholesale funding (25%) and long-term

wholesale funding (25%), in both the domestic and global markets (this split will

vary from bank to bank). Short-term funding relates to borrowings for up to 12

months while long-term funding includes borrowings of greater than 12 months.

Banks borrow money from global financial markets to facilitate lending to

Australian businesses and households. Borrowing costs for banks short-term and

long-term funding requirements have increased significantly as a result of the

current global financial crisis.

The price or cost that banks pay for funds depends on many factors. These include:

changes in the official cash rate; competition; international events; the credit rating

of the bank; and the supply of wholesale funds.

Banks must pay for all funding either though paying deposit interest rates or paying

interest on domestic and global debt. Therefore, to determine a bank’s cost of funds


it is important to conduct a detailed analysis of all funding components and how

these are changing. This is discussed further below.

3. State of the debt markets

For banks with a strong credit rating (i.e. AA or A) wanting short-term funding,

there is generally good liquidity in debt markets but prices remain elevated when

compared with levels prior to the financial crisis.

For term funding, markets have been very difficult to access and issuance by banks

has been very low, particularly in the most recent months. Spreads are now at very

high levels.

Banks rated BBB+ are finding it more difficult to access longer-term funding and

are concentrating more on short-term funds, private placements and deposit growth.

Securitization markets continue to see very low issuance levels. Much of the

Australian issuance was to the US. Investor interest in securitized assets has

virtually dried up.

Recent initiatives designed to stimulate debt markets include:

guarantee of banks’ term funding;

deposit guarantees; and

Widening the range of securities eligible for its repurchase operations (repos) by

the RBA.

These initiatives align Australia’s response within the context of the broader global

initiatives which are aimed at resolving the financial crisis.

4. Funding


Banks source funds from deposits and through wholesale funding - short-term and

long-term funds in both the domestic and global financial markets.

When the term of any funding arrangement expires, either in domestic and global

markets, banks have to re-finance. Since the onset of the global financial crisis,

wholesale funding costs have increased significantly. Furthermore, interest rate

volatility has increased on these markets and it is widely reported considerable

uncertainty will remain over the next year at least.

Due to the protracted nature of the sub-prime crisis, pressures in financing from the

wholesale market continue.

ABS Financial Accounts shows retail deposits constitute 49% ($665 billion) of

bank funding as at June 2008. Wholesale funding accounts for 51% or $703

billion. Of the short-term funding, excluding bills of exchange (which are not

classified by domestic/offshore), short-term funding is 64% domestic and 36%

offshore. For long-term funding, 25% is domestic and 75% offshore.

The 90-day bank bill swap rate is commonly viewed as the short-term funding cost

benchmark in the market. The divergence (i.e. spread) of the 90-day from a market

indicator of the cash rate can indicate changes to the banks’ short-term funding

costs. This cash rate ‘market’ indicator is called the 90-day Overnight Index Swap

rate (90-day OIS).

The 90-day OIS is a traded instrument by large treasuries. Its value reflects the

expectation of where the cash rate will be in 90 days (it’s like a futures contract).

Analyzing the spread between the 90-day and the 90-day OIS provides a broad

measure of changes to banks’ short-term funding costs. This spread reflects market

conditions as interest rates incorporate both credit premiums and liquidity in

financial markets. Changes in these measures also reflect banks’ product pricing

and risk management.

The chart below shows that the cost of short-term funds has been volatile since

August 2007. On numerous occasions the 90-day has increased significantly

(August 2007, September 2007, December 2007, February 2008, March 2008, June


2008, September 2008 and October 2008).

Banks’ short-term funding costs (i.e. over and above the 90-day OIS) have

significantly increased since the global financial crisis. The chart shows that prior

to August 2007, the cost above the 90-day OIS was about 8-10 basis points. After

August 2007, this spread reached a high of 144 basis points in early October 2008.

Longer term funding costs continue to stay high with little evidence of easing. The

chart below shows the spread to swap2 for banks’ three-year term funding. Recent

pricing for bank issuance remains about 175 bps above swap for three- year terms.

The widening spreads for long term funding are detailed in The Sheet (18 August

2008):

‘As for the cost of longer term funding, the credit spreads the banks have to pay on

their borrowings have been moving steadily wider since the credit crunch began. In

the domestic market, this is best exemplified in the two and four year parts of the

curve. Bond issuance in May attracted a spread of 47 bps and 95 bps for two and

four years respectively.


Critical analysis

Financial analysis is the process of identifying the financial strengths and weakness

of the firm by properly establishing relation ship between the items of balance sheet

and profit and loss account, in order to make rational decision in keeping with the

objective of the organization, for that purpose the management use analytical tools.

To evaluate the financial condition and performance of the business entity, the

financial analyst needs to perform "checkups" on various aspects of the business

financial health.

A tools frequently used during these checkups is a financial ratio analysis, which

relates two piece of financial data by dividing one quantity by the other we

calculate ratios because in this way we get a comparison that may prove more

useful than the raw number by themselves. The business itself and outside providers

of capital (creditors and investors) all undertake financial statement analysis. The

type of analysis varies according to the specific interest party involved. The nature

of analysis is depending at the purpose of analyst.


Balance Sheet

As at December 31, 2008 2006 2007 2008 Rupee's in 000

cash and balances with treasury banks 32465976 39683883 39631172

balances with other banks 6577017 3807519 4043100

lending’s to financial institutions 21081800 1051372 4100079

investment-net 63486316 113089261 96256874

advances-net 198239155 218960598 262510470

operating fixed assets 9054156 16024123 17263733

deferred tax assets-net 172373 0 0

other assets-net 11031450 17868761 19810476

342108243 410485517 443615904

Liabilities

Bills payable 7089679 10479058 10551468

borrowings 23943476 39406831 22663840

deposits and other accounts 257461838 292098066 330274155

sub-ordinate loan 1597440 479232 0

liabilities against assets subject to finance lease 0 0 0

deferred tax liabilities-net 0 1180162 437137

other liabilities 11171496 11722493 21253250

301263929 355365842 385179850

Net assets 40844314 55119675 58436054

Represented by:

Share capital 5463276 6282768 6282768

Reserves 24662426 34000638 36768765

Unappropraited profit 5530973 5130750 9193332

35656675 45414156 52244865

Surplus on revaluation pf assets-net of tax 5187639 9705519 6191189

40844314 55119675 58436054


Profit and Loss Account

For the year ended December31, 2008. 2006 2007 2008

Mark-up/ return / interest earned 25778061 31786595 40043824

Mark-up/ return / interest expensed 4525359 7865533 11560740

Net mark-up/ interest income 21252702 23921062 28483084

Provision for diminution in the value of investments-net 121197 105269 2683994

Provision against loans and advances-net 1014540 2959583 1335127

Bad debts written off directly 47000 199 0

1182737 3065051 4019121

Net mark-up/ interest income after provision 20069965 20856011 24463963

Non mark-up/ interest income

Fee, commission and brokerage income 2311235 2634610 2866729

Dividend income 811801 632300 617554

Income from dealing in foreign currencies 692010 693408 727564

Gain on sale of securities-net 605865 1500865 740429

Unrealized loss on revaluation of investments

classified as held for trading -13105 -103198

Other income-net 570505 1000149 942362

Total non-mark-up/ interest income 4991416 6448227 5791440

25061381 27304238 30255403

Non-mark-up/ interest expense

Administrative expenses 6482592 5426116 7546878

Other provisions/ (reversal)-net 11411 -3743 10120

Other charges 66708 573830 830839

Total non-mark-up/ interest expense 6560711 5996203 8387837

Extra ordinary/ unusual item 0 0 0

Profit before Taxation 18500670 21308035 21867566

Taxation - Current year 5701443 6442356 7341257

- Prior years 593497 -1294473 -864824

- Deferred 63332 894590 16533

6358272 6042473 6492966

Profit after Taxation 12142398 15265562 15374600

Unappropriated profit brought forward 4990260 5530973 5130750

Transfer from surplus on revaluation of fixed assets-net of tax 32166 11855 21319

5022426 5542828 5152069

Profit available for appropriation 17164824 20808390 20526669


Basic and diluted earnings per share - after tax 23.4 24.3 24.47

Balance Sheet

Vertical Analysis

Balance Sheet

As at December 31, 2008 2007 2008 2007 2008

% %

cash and balances with treasury banks 39683883 39631172 9.67 8.93

balances with other banks 3807519 4043100 0.93 0.91

landings to financial institutions 1051372 4100079 0.26 0.92

investment-net 113089261 96256874 27.55 21.70

advances-net 218960598 262510470 53.34 59.18

operating fixed assets 16024123 17263733 3.90 3.89

deferred tax assets-net 0 0 0.00 0.00

other assets-net 17868761 19810476 4.35 4.47

410485517 443615904 100.00 100.00

Liabilities

Bills payable 10479058 10551468 2.95 2.74

borrowings 39406831 22663840 11.09 5.88

deposits and other accounts 292098066 330274155 82.20 85.75

sub-ordinted loan 479232 0 0.13 0.00

liabilities against assets subject to finance lease 0 0 0.00 0.00

deferred tax liabilities-net 1180162 437137 0.33 0.11

other liabilities 11722493 21253250 3.30 5.52

355365842 385179850 100.00 100.00

Net assets 55119675 58436054

Represented by:

Share capital 6282768 6282768

Reserves 34000638 36768765

Unappropraited profit 5130750 9193332

45414156 52244865

Surplus on revaluation pf assets-net of tax 9705519 6191189

55119675 58436054


Balance SheetHorizontal Analysis

Balance Sheet

As at December 31, 2008 2006 2007 2008 2006 2007 2008

Rupee's in 000

% % %

cash and balances with treasury banks 32465976 39683883 39631172 100 22.23 22.07

balances with other banks 6577017 3807519 4043100 100 -42.11 -38.53

lending’s to financial institutions 21081800 1051372 4100079 100 -95.01 -80.55

investment-net 63486316 113089261 96256874 100 78.13 51.62

advances-net 198239155 218960598 262510470 100 10.45 32.42

operating fixed assets 9054156 16024123 17263733 100 76.98 90.67

deferred tax assets-net 172373 0 0 100 -100.00 -100.00

other assets-net 11031450 17868761 19810476 100 61.98 79.58

342108243 410485517 443615904 100 19.99 29.67

Liabilities

Bills payable 7089679 10479058 10551468 100 47.81 48.83

borrowings 23943476 39406831 22663840 100 64.58 -5.34

deposits and other accounts 257461838 292098066 330274155 100 13.45 28.28

sub-ordinted loan 1597440 479232 0 100 -70.00 -100.00

liabilities against assets subject to finance lease 0 0 0 100 0.00 0.00

deferred tax liabilities-net 0 1180162 437137 100 0.00 0.00

other liabilities 11171496 11722493 21253250 100 4.93 90.25

301263929 355365842 385179850 100 17.96 27.85

Net assets 40844314 55119675 58436054

Represented by:

Share capital 5463276 6282768 6282768

Reserves 24662426 34000638 36768765

Unappropraited profit 5530973 5130750 9193332

35656675 45414156 52244865

Surplus on revaluation pf assets-net of tax 5187639 9705519 6191189

40844314 55119675 58436054

Vertical Analysis



For the year ended December31, 2008. 2007 2008 2007 2008

Mark-up/ return / interest earned 31786595 40043824 100 100

Mark-up/ return / interest expensed 7865533 11560740 24.745 28.87

Net mark-up/ interest income 23921062 28483084

Provision for diminution in the value of investments-net 105269 2683994 0.3312 6.7026

Provision against loans and advances-net 2959583 1335127 9.3108 3.3342

Bad debts written off directly 199 0 0.0006 0

3065051 4019121

Net mark-up/ interest income after provision 20856011 24463963 65.613 61.093


Fee, commission and brokerage income 2634610 2866729 40.858 49.499

Dividend income 632300 617554 9.8058 10.663

Income from dealing in foreign currencies 693408 727564 10.753 12.563

Gain on sale of securities-net 1500865 740429 23.276 12.785


classified as held for trading -13105 -103198 -0.2032 -1.7819

Other income-net 1000149 942362 15.51 16.272

Total non-mark-up/ interest income 6448227 5791440 100 100

27304238 30255403


Administrative expenses 5426116 7546878 35.545 49.087

Other provisions/ (reversal)-net -3743 10120 -0.0245 0.0658

Other charges 573830 830839 3.759 5.404

Total non-mark-up/ interest expense 5996203 8387837 39.279 54.556

Extra ordinary/ unusual item 0 0 0 0

Profit before Taxation 21308035 21867566 139.58 142.23

Taxation - Current year 6442356 7341257 42.202 47.749

- Prior years -1294473 -864824 -8.4797 -5.625

- Deferred 894590 16533 5.8602 0.1075

6042473 6492966 39.582 42.232

Profit after Taxation 15265562 15374600 100 100

Unappropriated profit brought forward 5530973 5130750

Transfer from surplus on revaluation of fixed assets-net of tax 11855 21319

5542828 5152069

Profit available for appropriation 20808390 20526669

Basic and diluted earnings per share - after tax 24.3 24.47

Horizontal Analysis


For the year ended December31, 2008. 2006 2007 2008 2006 2007 2008


Mark-up/ return / interest earned 25778061 31786595 40043824 100 23.31 55.34

Mark-up/ return / interest expensed 4525359 7865533 11560740 100 73.81 155.47

Net mark-up/ interest income 21252702 23921062 28483084 100 12.56 34.02

100

Provision for diminution in the value of investments-net 121197 105269 2683994 100 -13.14 2114.57

Provision against loans and advances-net 1014540 2959583 1335127 100 191.72 31.60

Bad debts written off directly 47000 199 0 100 -99.58 -100.00

1182737 3065051 4019121 100 159.15 239.82

Net mark-up/ interest income after provision 20069965 20856011 24463963 100 3.92 21.89


Fee, commission and brokerage income 2311235 2634610 2866729 100 13.99 24.03

Dividend income 811801 632300 617554 100 -22.11 -23.93

Income from dealing in foreign currencies 692010 693408 727564 100 0.20 5.14

Gain on sale of securities-net 605865 1500865 740429 100 147.72 22.21


classified as held for trading -13105 -103198

Other income-net 570505 1000149 942362 100 75.31 65.18

Total non-mark-up/ interest income 4991416 6448227 5791440 100 29.19 16.03

25061381 27304238 30255403 100 8.95 20.73


Administrative expenses 6482592 5426116 7546878 100 -16.30 16.42

Other provisions/ (reversal)-net 11411 -3743 10120 100 -132.80 -11.31

Other charges 66708 573830 830839 100 760.21 1145.49

Total non-mark-up/ interest expense 6560711 5996203 8387837 100 -8.60 27.85

Extra ordinary/ unusual item 0 0 0

Profit before Taxation 18500670 21308035 21867566 100 15.17 18.20

Taxation - Current year 5701443 6442356 7341257 100 13.00 28.76

- Prior years 593497 -1294473 -864824 100 -318.11 -245.72

- Deferred 63332 894590 16533 100 1312.54 -73.89

6358272 6042473 6492966 100 -4.97 2.12

Profit after Taxation 12142398 15265562 15374600 100 25.72 26.62

Unappropriated profit brought forward 4990260 5530973 5130750

Transfer from surplus on revaluation of fixed assets-net of tax 32166 11855 21319

5022426 5542828 5152069

Profit available for appropriation 17164824 20808390 20526669

Basic and diluted earnings per share - after tax 23.4 24.3 24.47

RATIO ANALYSIS


Ratio Analysis is an important and age-old technique of financial analysis. Ratios are

important and helpful in the reference that:

These simplify the comprehension of financial statement and tell the

whole story of changes in the financial conditions of the business.

These provide data for inter-firm comparison. The ratios highlight the

factors associated with successful and unsuccessful firms, also reveal

strong and weak firms.

These help in planning and forecasting, these can assist management in its

basic functions of forecasting, planning, coordination and control.

These help in investment decision in case of investor and lending decision

in case of Bankers etc.

However, the ratios are only indicators, they cannot be taken as final regarding

good and bad financial position of the business other things have also to be seen.

1. RETURN ON EQUITY

Dividing profit after taxation by share holder’s equity. ROE compares net profit

after taxes to the Share holder’s Equity.

This ratio is calculated as:

ROE=Profit after taxes/Share holder’s Equity


2008 = 29.42%

2007 = 33.61%

2. RETURN ON ASSETS:

This ratio shows the efficiency of organization that how efficiently utilizes their

assets. This ratio relates profits to assets.

It is calculated as:

Profit after Tax/Total Assets

2008 = 3.60%

2007 = 4.60%

3. EARNING PER SHARE:

N.P.A.T ÷ No. Of outstanding shares

2008 = 24.47%

2007 = 24.30 %

4. RETURN ON DEPOSIT:


N.P.A.T * 100 ÷ Total Deposit

2008 = 4.65 %

2007 = 5.22 %

5. CASH/DEPOSIT RATIO:

“This ration is obtained by dividing cash by current liabilities / liabilities”.

This ratio shows that the cash is enough for payment of current liabilities or not.

It is calculated as cash Ratio=Cash/current liabilities

Or

=Cash/Total Deposit

2008 = 11.99 %

2007 = 13.58 %

6. INTEREST INCOME/TOTAL INCOME RATIO:

Interest Income ÷ Total Income

2008 = 87.36 %


2007 = 83.13 %

7. NET PROFIT MARGIN:

This ratio measure the firm’s profitability of sales/ interest earned after taking

account of all expenses and income taxes.

This ratio can be calculated as:

Net profit margin ration= Net Profit after taxes / interest earned *100

2008 = 33.54%

2007 = 39.92 %

8. AVERAGE PROFIT PER BRANCH:

Profit Net ÷ No. Of Branches

2008 = Rs. 14,984,990.25

2007 = Rs. 14,878,715.4


9. OPERATING EXPENSE RATIO:

Non markup expense ÷ Gross income

2008 = 27.72 %

2007 = 21.96 %

10. TOTAL ASSET TURNOVER:

Interest/markup earned*100 ÷ Total asset

2008 = 9.02 %

2007 = 7.74 %

11. RISK ASSETS TURNOVER:

Net interest income after provision ÷ Risk assets

2008 = 65.98 %


2007 = 68.11%

12. ADVANCES TO TOTAL DEPOSITS:

This ratio show that how much efficiently the bank advances the deposits of their

customer to borrower.

It is calculated as.

Advances deposit ratio = Advances/ deposit

2008 = 79.48 %

2007 = 74.96 %

13. DUE FROM BANK TO DUE FROM BANK:

Landing to financial institution* 100 ÷ Borrowing from financial institution


2008 = 18.09 %

2007 = 2.66 %

Organization analysis in comparison with its industry (or with its competitors)

Competitive advantage spells out the ‘uniqueness' of the organization vis-à-vis its

competitors. so the HBL also have uniqueness in its dealing with customers and

also have uniqueness in his strategy with other their competitors. Business analysis

is imperative for the organization to ascertain the mood and the conditions for

starting or consolidating a business venture. Business strategy analysis involves

analysis of the organizational strategy to create a sustainable competitive advantage

primary objective of competitor analysis is to understand and predict the rivalry, or

interactive market behavior, between firms in their quest for a competitive position

in an industry. Therefore the HBL also always analyze their competitors Banks

Toward this end, researchers have examined factors that influence competitive and

patterns of entry into and exit from rivals' markets However, researchers have

made limited effort to investigate the prebattle competitive relationship between

rivals and the extent to which it may predict rivalrous behavior in the market. This

omission is due partly to the restricted conceptual treatment of competitor analysis,

which has not fully incorporated the essential antecedents that affect a firm's

competitive activity, let alone considered them in an integrated way.

Intensity of rivalry, one of Porter's (1980) well-known five forces driving

competition, has remained mainly a theoretical construct confined to the industry

level. In terms of analyzing firms competing in an industry, the strategic-group far

the most popular and relevant. However, researchers who use this approach have

largely ignored the market context in which competitors carry on their battles and

the extent to which two firms actually compete directly against each other.


Although the marketing literature recognizes the importance of the market context,

its contribution has been primarily in analyzing competitors and competition at the

brand or individual-market level rather than at the firm level. Other approaches

usually represent a high degree of abstraction and rely primarily on managers' or

researchers' subjective perceptions, which often are too remote to be linked to

competitive behaviors in the market Thus far, some of the most fundamental

questions in competitor analysis have remained unexplored 1985). For example,

how can researchers studying competition differentiate among players in an

industry to explain each player's market behaviors? How can a firm, before

launching an attack, assess its prebattle relationship with a given rival and the

resultant likelihood that this rival would retaliate? How can a firm gauge which

opponent is most likely to attack its markets? How can strategists differentiate

among a set of competitors to allow the firm to allocate appropriate resources and

attention to each? Finally, although the importance of competitor analysis and

interfirm rivalry is well recognized, there has been no systematic attempt to

integrate the two topics.

This article seeks to provide a conceptual link by proposing two firm-specific,

theory-based constructs: the market commonality and the resource similarity

between a given pair of competitors. Taking the firm as the basis for analysis, I

argue that each firm has a unique market profile and resource endowment and that a

comparison with a given competitor along these two dimensions will help to

illuminate the competitive relationship between them and to predict how they may

attack (or respond to) each other in the market. This firm-specific conceptualization

also leads to the idea of competitive asymmetry, the notion that a given pair of

firms may not pose an equal threat to each other. I first offer a number of

propositions that use market commonality and resource similarity to predict

competitive attack and response. I also propose measures to assess market

commonality and resource similarity along with a demonstration of how such


measures could be implemented. The article ends with a number of implications for

research and practice.

Future prospects of the organization.

The structure of the Banking markets has changed radically over the last decade while in

contrast the futures markets more or less maintained the status quo. But now the futures

markets are in catch-up mode as evidenced by the emergence of some dark pools and,

Banking firms are beefing up their technology to take advantage of what is coming down

the pike. For the future aspects the HBL should be make itself active and also efficient

and effective in the banking field and get the competitive advantage. That when occur

truly when the HBL produce new products and services to their customers. The HBL

should also introduce the new technologies in the Banking field before their competitors

and provide the facilities to their customers and get the customer's loyalty . The HBL

should also provide the better service than their competitors and also should give the full

response in the any branch.

The HBL also should improve their computerized system in the bank and the bank in the

future also want to trained their employees in any technology and also will provide the

new technology that facilitate the customers of the HBL

SWOT analysis of organization in the business sector


HBL 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. In SWOT analysis

the best strategies accomplish in organization’s mission by: 1.Exploiting

opportunities and strengths.2.Neutralizing its threats and3.Avoiding its weaknesses.

Following is a list of SWOT of HBL

Strengths

A skill or capability that enables HBL to conceive and implement its

strategies.

The officers of HBL are considered as one of the most able professionals in

the banking world.

I observed that HBL employees interact with their clients as if they are their

personal friends and discuss about their problems as their own.

HBL has got a reliable and easy to use internal computer system. Every

information regarding the transactions in customers’ deposits has been

computerized.

HBL maintained its data properly.

HBL has very good security system.

HBL is the larger commercial bank in Pakistan with the network of over 1439

domestic and international branches.

Being the pioneer of banking in Pakistan, HBL is the oldest and is the richest

in experience.

HBL focuses on consumer banking by lucrative schemes, products and

services suiting best to the wants and demands of the customers.

HBL has opened all its branches at commercial areas so that the customers or

clients face no problems in reaching to the bank.

The band is always on the look to improve its services both to the domestic as

well as overseas customers.


Human resources development and introduction of new technology towards

modern banking.

24 hours cash access and safe payment products for high value transaction.

Having potential to encounter the competitive environment in the market.

Veteran and experience private management group also involved in other

interests like, textile and cement industry.

Customer enjoys the services at the residential localities.

Weaknesses

Highest number of branches effecting the proper maintenance and difficulty in

providing same working environment at the each branch

Poorer system of recovery of the system is a threat to bankruptcy.

Lack of customer feed back.

Low job satisfaction.

Poor ATM’s Service

Inconsistency in efficiency and working atmosphere due to the largest of

branches.

Sense of insecurity in the employees serving at low profitable branches due to

the down sizing.

Females feel uneasy in an environment among the male workers.

Victim of political, legal and socio-cultural pressures

.Lack of professionalism in the branch employees mostly.

Opportunities

Huge untapped market potential in consumer banking


In opportunity exist, in form of opening of ladies banking section within the

branch which is entirely a new idea and it will attract customer.

Opportunity for developing value added services combined with corporate

banking relationships, cash management services to large and medium sized

corporate clients.

Growing policies of government on business and commerce sector provide

HBL opportunities to take advantages of these policies to meet efficiently with the

business people to solve their problems with the instant cash and financing

facilities.

Govt. is taking very bold steps to promote IT in Pakistan. HBL has an

opportunity to improve in technology.

Large international network which principally focuses on trade finance with

Pakistan can be utilized to tap trade activities in other markets. In addition, services

such as cross border / offshore financing for corporate customers can be enhanced.

Customer feedback on different products and accounts has really improved the

bank performance and encourage the atmosphere for other future policies.

HBL also has an opportunity to expand its new technological advancement

like; tele banking and internet banking facilities in order to serve the customer more

efficiently, specially

E-banking facility is also a new opportunity which is a flourishing business in

foreign countries and can also be here, if HBL takes the initiatives.

Further reduction in intermediation costs possible, with improving technology.

Due to efficient and veteran management group, HBL can also improve Ill

and expand its foreign operation successfully.

Habib Bank Limited provides opportunity to utilize its skills and efficiencies

in leasing business.


Threats

An area in the environment that increases the difficulties the organization’s

achieving high performance.

Consolidation in the banking sector resulting in increased competition.

Shortage of trained and specialized staff at lower executive and officer levels

The threat of inconsistency and government policy regarding to business and

economics sectors, specially political and regional situation which makes the

environment uncertain.

Growing global technological advancement.

Strict regulation by government over credit facilities to the customers as Ill as

to meet the prudential.

Loss of confidence of overseas customers due to freezing of accounts.

Facing more competition by foreign banks in the market.

Foreign banks are flourishing in field of consumer financing.

Also the increasing operation of private banks.

Highly attractive and advance services by foreign banks to their customers.

Conclusion & recommendations for improvement


Recommendation I Propose

1) I will give following suggestions for the better function of the Bank:

2) The management should provide better arrangement for the employees.

3) The daily newspapers and journals should be provided to the employees

and customers visiting there.

4) A separate hajj applications acceptance counter should be provided to

overcome inconveniences faced by the customers.

5) A separate ladies counter should be there

6) The Bank management should be very careful while granting the loans.

7) Personal interests should not be given importance and customers

8) 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.

9) Online Banking should be introduced in all the branches.

10) Aggressive publicity campaign must be introduced through press and

Electronic media for new products and scheme by initiating vigorous marketing

policy.

11) New talent / professionals should be hired to coupe with the competitive

demand in the industry.

12) Information technology should be introduce in all the branches to

enhance the efficiently.

13) The commission on government rashed enhanced / made rational to

increase the Banks profitability.

14) The financial statement should be made more transparent and reliable.

15) Consumer financing should be initiated to capture the market share.


16) Employee’s induction, promotion and transfer should always be made on

merit.

17) To motivate the employees their remuneration / salaries should be made

at par with top tier Banks.


Reference & Sources used (Should be provided in APA

format)

I collect this information from,

1. Habib Bank Limited of Pakistan, Annual Reports

2. State Bank of Pakistan Prudential Regulation for Corporate and Commercial

Banking.

3. State Bank of Pakistan BPRD Circulars

4. Dawn Newspapers for updated information

5. Instruction Circulars of National Bank Limited

6. Economic Reviews for Banks and their activities

7. State Bank of Pakistan, Website, http://www.sbp.gov.pk

8. Habib Bank's website, http://www.hbl.com

I also visit & complete 8 weeks internship in Habib bank of Pakistan Main

Chubara

Road Layyah for collecting data.


http://www.hbl.com/

http://www.sbp.gov.pk/

Annexes

List of Annexes

Annex 1

Overview of the organization

Brief history

Nature of the organization

Business volume

Product lines

Competitors

Annex 2 Organizational structure

Organizational Hierarchy chart1

Number of employees1.

Main offices

Comments on the organizational structure

Annex 3

Plan of your internship program

A brief introduction of the branch where you did your internship

Starting and ending dates of your internship

The departments in which you got training and the duration of your training

Annex 4

Training program

Introduction of all the departments

Detailed description of the department you worked in OR Detailed description of

the project assigned.

Annex 5


Structure of the Finance Department

Department hierarchy

Annex 6 Accounting system of the organization

Finance system of the organization

Use of electronic data in decision making

Mobilization of funds

Generation of funds

Sources of funds

Annex 7 Critical analysis Ratio analysis Horizontal & vertical Analysis Organization analysis in comparison with itscompetitors) Future prospects of the organization.

Annex 8 SWOT analysis of organization in the business sector

Annex 9

Conclusion & recommendations for improvement

Reference & Sources used



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