Acknowledgments

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Table of contents

Acknowledgement...........…...……….….....................................................3

Preface.....….………………….........................................................................4

Industry profile.......................................................................................5

History of banking.................................................................................5

Development of banking....................................................................6-7

Company profile....................................................................................8

History of hbl.......................................................................................8-9

Value of hbl..........................................................…..............................10

Goal of hbl............................................................................................11

Objectives of hbl..........................................….....................................14

Policies of hbl......................................................................................14

Company business process...............................................................18

Company departmental functions.....................................................31

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Swot analysis……………………..................................……...........................35

Problem identification....…............…………………….…........…..............39

Recommendations........….………………………………………………..............40

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Acknowledgments

I am very thankful to God who has enabled me to complete this project. I would like to express my

Deep gratitude to my teachers. Their guidance helped me to achieve this land mark. Especially my tutor SIR NISAR AHMED

Despite of my teacher's enormous responsibility, they spared time to review the report and contribute valuable suggestions. I m thankful to my family especially my father who gave me moral support to fulfill my project .They always encouraged me help me and their due has floated me in every movement of trouble. All of my successes are due to my family. My father's moral support proved a guiding star for me throughout this project.

Thanks

Regards

Muhammad Faisal Mehboob

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Preface

This report has an important role while, getting masters of business and administration degree

from University of central Punjab.

As a part of my BBA studies, I went through one and half month internship at HR department of

Habib Bank Ltd Lahore. During the internship period I studied the various sections of Human

Resource department of HBL. I’m sure this internship report will give the true picture of all the

activities of the Human Resource Department of the bank. This report would also show that what I

have learnt from my one and half months Internship period at HBL Ltd.

I have tries my best to obtain as accurate data as possible and present all what I had learnt in one

and half Month’s internship period.

Industry Profile:

History of banking in Pakistan:

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History of banking in Pakistan starts from the partition of Indo-Pakistan sub-continent in august 1947. At that time the areas consisting Pakistan 631 offices of 45 scheduled banks out of which 487 were located in west Pakistan had 631 offices out of 487 bank were located in west Pakistan and 114 in east Pakistan The technical and administrative difficulties of establishing a central bank just after independence compelled Pakistan to enter into an agreement with the Reserve Bank of India by which the bank was to perform the function of a central bank in this area also up to 30th September, 1948. The Reserve Bank of India started following wrong policies against the interest of Pakistan. The situation became so grave that after the consultation of two governments the Reserve Bank of India was asked to finish the agreement from 30th June instead of from 30th September, 1948. So the Government of Pakistan decided to establish the State Bank of Pakistan as its central bank from 1st July, 1948. In the same year first Pakistani notes in the denomination of Rs.5, 10, and 100 were issued and Indian currency was withdrawn from circulation. After it the government was advised to a bank which should serve as a agent of State Bank of Pakistan. On this suggestion National Bank of Pakistan which was established in 1949 to finance jute trade in East Pakistan to take over the agency functions from the Imperial Bank of India. Furthermore banking companies control act 1949 was promulgated which empowered the State Bank of Pakistan to control the operation of other banks. To boost the economic development the State Bank of Pakistan encourage the commercial banks and gave them schemes to advance in the agricultural and industrial.

Development of banking in Pakistan:

At the time of partition, the Commercial Banks were only as 38, out of these, the Pakistani Banks were 2, Indian Banks were 29 and Exchange Banks were 7. The total deposits of

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Pakistani Banks stood of Rupees 880 Millions, whereas the advances were Rupees 198 Million.

In order to regulate the growth of banking on a sound footing, the following measures were taken to develop the banking system in Pakistan.

The State Bank of Pakistan, which is the Central Bank of the Country, was established on July 1, 1948.

The National Bank of Pakistan was established on November 21, 1949. This bank is to serve as an agent to SBP.

The Industrial Development Bank of Pakistan (IDBP) was set up on August 1,1961 with a paid up capital of Rs.50.000 Million. The Agricultural Development Bank of Pakistan (ADBP) was set up in 1961, which provides Short, Medium and Long Term Loans to the Farmers.

In January 1974, all the Commercial Banks were nationalized. The weaker commercial banks were merged with the stronger ones and five major banking companies were formed. MCB, ABL and UBL have again been privatized while Habib Bank was privatized on 29th December 2006.

The Pakistan Banking Council was set up for coordinating the activities of the Nationalized Commercial Banks. The Banking Council formulates policies and guidelines for the banks.

Interest has been eliminated from the banking transactions since July 1, 1985. The banks are now accepting saving deposits on profit and loss sharing basis. Modaraba and leasing companies are also operating in Pakistan.

The Government of Pakistan has also liberalized the exchange and payments procedure. The Pakistani Firms and Companies can now maintain foreign currency accounts in Pakistan on the same basis as non-Pakistani firms and companies can.

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Company profile:

History of Habib bank Ltd

The Habib Bank Ltd is a leader in Pakistan's services industry. An extensive network of 1425 domestic branches – the largest in Pakistan and 55 international branches has enabled HBL to provide comprehensive services that meet customer needs. This has ensured thriving client relationships that form the backbone of the Bank's operation.

Today, HBL plays a central role in Pakistan's financial and economic development. It has come a long way from its modest beginnings in Mumby on August 25, 1941 when it commenced operations with a fixed capital of 25,000 rupees.

Impressed by its initial performance, Quaid-e-Azam Mohammed Ali Jinnah asked the Bank to move its operations to Karachi after the creation of Pakistan. HBL established itself in

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the Quid’s city on August 7, 1948 and became a symbol of pride and progress for the people of Pakistan.

Habib Bank has been a pioneer in providing innovative banking services. These have included the installation of the first mainframe computer in Pakistan followed by the first ATM and more recently, internet banking facilities in almost 1425 domestic branches.

The Bank's towering presence in Pakistan's financial and commercial life has remained unchanged over the decades. The strength of its brand and image is symbolized by its prominent Head Office building that has dominated Karachi's skyline for35Years.

As per HBL Management result we continue to build on our track record and in our quest for excellence we strive to meet the needs of both our customers and our employees. At Habib Bank we aim to ensure customer satisfaction by providing high quality banking services. This is made possible by the professionalism of our employees all of whom are

provided with the requisite training and opportunities to enable them to realize their full potential.

Mission Statement

To make our customers prosper, our staff excel and create value for

Stakeholders”

Vision Statement

“Enabling people to advance with Confidence and Success”

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VALUES OF HBL:

Integrity

For us, integrity means a synergic approach towards abiding our core values. United with the force of shared values and integrity, we form a network of a well-integrated team.

Meritocracy

At every level, from selection to advancement, we have designed a consistent system of human resource practices, based on objective criteria throughout all the layers of the organization. We are, therefore, able to achieve a specific level of performance at every layer of the organization.

Team Work

Our team strives to become a cohesive and unified force, to offer you, the customer, a level of service beyond your expectations. This force is derived from participative and

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collective endeavors, a common set of goals and a spirit to share the glory and the strength to face failures together.

Culture of Innovation

we aim to be proactively responsive to new ideas, and to respect and reward the agents, leaders and creators of change.

GOALS OF HBL

To mobilize private savings and public funds for diverting the same into productive channels

and ensure their availability. To promote industrial agriculture and socioeconomic process through the active participation of private and public sector in the province.

Help under developed areas and create employment opportunities, especially in the rural areas of the province. Further, to guide and assist the people of Pakistan serving overseas to effectively and profitably invest their foreign savings in the province as well as in other parts of Pakistan.

Create a diversified and sound portfolio for utilization of idle funds and their investment in the

existing and new ventures especially in the pioneering of high-techs agro-based export oriented and engineering project to ensure maximum returns.

Participative and seek the share of the country in the capital market of Pakistan by way of subscription through locally peopled resources in the leading stock exchange of the country and eventually paving the way for establishing a stock market in the province.

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Products and Initiatives

The 2008 results are a further confirmation that the hard work of the past five years has crystallized into a solid turnaround. In 2002, HBL launched several new products and initiatives that have been made possible by investments in technology, the branch network, human resource and financial discipline. The benefits of the increased infrastructure expenditure are now becoming apparent in all areas of the Bank and much more will become visible over the next year. In Consumer Banking we introduced Auto Financing and Life Style Financing Scheme for consumer durables and further expanded the Flexi Loan Scheme. HBL also had substantial increase in its agriculture and SME (small entrepreneurial businesses) lending; Branches dedicated to serving the SME sector were expanded to 25. HBL was the first bank to offer low cost US Dollar financing to help exporters and now has over Rs. 12 billion in such loans, the largest of any bank in Pakistan. HBL also launched Online Banking, Internet Banking and PC Banking in 2002, offering a full service, round-the-clock access to banking. These services cover 100 branches in 14 cities and are available to 350 branches in cities within the next 12 months. We are proud of the way technology is benefiting our customers and look forward to introducing further benefits.

Status and Nature of the Business

Habib Bank Ltd is incorporated in Pakistan and is engaged in commercial bankig and related services in Pakistan and overseas. The bank operates in 65 branches outside the country (including Karachi export processing zone branch). Business line With focus

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towards building new assets, Consumer, SME and Agriculture financing will be the key areas. They are all part of our Retail Banking Group. We have taken a number of initiatives in 2009 and will aggressively launch new products Housing Finance and Credit and Debit Cards. Competition is intense with banks aggressively moving into these areas but with our extensive branch network, I am confident that we will be able to reinforce and improve our position. Corporate and Investment Banking Group continues to face tough price competition, as the market growth has been limited. We have taken a number of initiatives to increase our product range and with the additional expertise of the Investment Banking Unit, established during the year, we will be able to maintain our leadership. Treasury will play an important role in current low interest rate environment. Lower yields on National Saving Schemes will encourage Capital Market products and we are reinforcing our Treasury Marketing Unit which will work closely with Corporate and Investment Banking Group to develop products for our corporate customers. International Our International and Overseas Banking Group is an invaluable asset of HBL. I am very pleased to report that all overseas regions have performed well this year and that having now addressed all legacy issues, they are profitable again. IOBG has played a vital role in increasing the volume of remittances being channeled to Pakistan via the banking sector.

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Objectives of the HBL

1. To provide best services to its customers.

2. To provide the facility of micro financing.

3. To provide the facility of corporate financing.

4. To strengthen the economy of Pakistan.

5. To maximize the profit of the bank.

Policies of HBL

Policies are identified as guide to thinking in decision-making. They assume that when decisions are made, these will fall within certain boundaries. Policies don't require action but are intended to guide Managers in their decision commitments when they do make mistakes.

Policy is a limit within which a decision is to be made and assure that the decision will be consistent with and contribute to objectives. Policies tend to pre-decide issues, avoid repeated analysis, and give a unified structure to other types of plans, thus permitting managers to delegate authority while maintaining control. Policies ordinarily exist on all levels of the organization and range from department policies to minor or derivative policies applicable to the smallest section of the organization.

Managerial Policy

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Affairs of Habib Bank are controlled though President and Members Executive Committee who are normally Senior Executive Vice Presidents of the Bank based at Head Office. Each Region is headed by Regional Chief Executive and assisted by

Regional General Managers. Each Regional Headquarter control branches in their area of jurisdiction.

Marketing Policy

Marketing is the business function that identifies customer needs and wants determines, which target markets the organization can best serve, designs appropriate products, services and programs to serve these markets and calls upon everyone in the organization to "think and serve customers". From a social point of view, marketing links a society's material requirements and its economic patterns of response. Thus marketing is a key factor in business success.

Habib Bank also adopts certain marketing techniques to enhance the image of the bank. Most of the marketing takes place through various Deposit Mobilization Schemes through advertising in Newspapers and other media and there is more emphasis on Counter Service to have more satisfied clients who can recommend to their associates and friends.

Operational Policy

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Operational policies deal with the running or operation of the bank. It is about introducing new schemes in order to improve HBL Operations and to take measures for better services.

The operations can be divided into two:

Domestic Operations

The bank is quite successfully operating its domestic business. Habib Bank has the largest domestic branch network amongst Pakistani Banks, which is in consistence with the bank's policy to provide banking facilities at the doorstep across the length and breadth of the country in conformity with the government’s socio-economic objectives. The numbers of domestic branches as on 31.12.2006 were more than 1408. HBL's domestic operations are carried out by Regional Headquarters comprising of branches under their jurisdiction. HBL also established Corporate Centers in various Regions to catch Industrial Clients and serve them better. The Corporate Major Centers are 12 and the Sub Centers are 64.

The bank has presently one wholly owned subsidiary namely Habib Bank Financial Services Pvt. Ltd. It has shown improved operational results during the year.

International Operations

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The bank overseas branches are continuously rendering satisfactory services and are also contributing significantly towards channeling Home Remittances of Pakistani Expatriates. The foreign branches as on 31.12.2006 stood as 65.

Company business process:

FUNCTIONS OF HABIB BANK LIMITED

To fulfill the basic objective that is of socio-economic nature HBL perform following important functions.

Commercial BankingCorporate BankingInvestment Banking

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Retail BankingIslamic Banking

COMMERCIAL BANKING:

Enterprises operating in the middle market contribute significantly to the economy of a country. Traditionally, this sector was the stronghold of HBL’s business. During the early 90s, with the liberalization of the financial sector in Pakistan, competition in the industry stiffened due to the emergence of new banks in the private sector. The senior management at most of these banks comprised personnel from HBL.

They not only knew the market but were also familiar with the shortcomings of HBL. Under the new set-up, they were able to address these shortcomings and began to target HBL’s customer base. With the inception of an alternative, HBL customers started migrating to the newly established banks this causing the erosion of HBL’s market share. During FY-2000 HBL’s management decided to address this issue. Hence forth, Commercial Banking was created to focus on the business needs of the middle market customers. On November 1, 2000 Commercial Banking came into being. At present, 18 Commercial Centers and Sub-Centers functioning, located at Karachi, Lahore, Faisalabad, Sialkot and Gujranwala.

Goals

The Goals of setting-up Commercial Banking was two-fold:

First to stop the erosion of market share in the middle market;

Second, to regain the lost market share

The strategy adopted to achieve the above objective was to position Commercial Banking segment as the “Trade Finance Bank” for its customers. The rationale behind this strategic

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decision was to capitalize on the existing marketing knowledge & strong contacts with the middle market customers, who were loyal to the HBL brand.

The product line of Commercial banking includes:

FUND BASED FACILITIES

Running Finance for Working Capital requirements (RF)

Finance Against Packing Credit for Pre-shipment (FAPC)

Finance Against Foreign Bills for Post-shipment (FAFB)

Finance Against Imported Merchandise (FIM)

Finance Against Trust Receipt (FATR)

Demand Finance: Medium Term Loans (DF)

NON-FUND BASED FACILITIES

Letter of Credit (LC)

Letter of Guarantee (LG)

Successful achievement of the strategy entailed addressing the following key issues:

Developing a sales culture so that business was aggressively sought

Improvement of Counter Service

Reducing the turnaround time on credit decisions

Training of staff to enhance credit and sales skills

Following initiatives were taken to address the above issues:

Fictionalization of branches into two key areas:

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Marketing; and Operations

Implementation of a standard organization at Centers & sub-centers where by there were two key areas within operations: TradeCounter Service i.e. Cash & Remittances

De-layering of the Credit processing to ensure quick turnaround on credit decisions

Setting up of Relationship Management teams at all Commercial Banking Centers to focus on procurement of business

Setting-up of Credit Administration Departments at all Centers for improved Risk Management

Training of staff in following key areas:

(a) Credit (b) Trade Services © Computer literacy

Impact of the steps

The decision to setup Commercial Banking has been fruitful. This is evident from the following results:

Enhanced customer interaction by the branch management has now become possible after segregation of marketing and operations at the branch level.

Decentralization of Credit Authority and streamlining of the processes have resulted in reduced turnaround time. Currently decision making in this area is perhaps most efficient in the market place.

Our strategy has allowed us to achieve our first objective; the trend of erosion in our market share has been reversed. We now would be looking at regaining our market share.

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Commercial Banking is making headway with improvement not only in terms of the business figures but also in its ambiance. Renovation of is being carried out in order to give a professional look to all the Commercial Banking Centers.

CORPORATE BANKING

Corporate Banking Group serves large institutional and corporate customers in Pakistan through 10 dedicated corporate banking centers in all major cities. The CIBG portfolio consists of most of the largest names in the market and represents all major industry groups, including textiles, large scale manufacturing, telecommunications, petrochemicals, fertilizer, airlines, transportation and services. It offers its clients a comprehensive range of banking services via a one-window interface through designated relationship manager. Corporate Banking is recognized as a market leader due to its unique ability to meet the entire spectrum of a customer’s banking requirements. HBL’s large equity base allows to meet the financing needs of the largest corporate and it’s large network and specialized teams are able to deliver and provide customized solutions. The Group has increasingly focused on providing value addition services to the customers, e.g. payroll and cash management services. The Bank has become a leader in cash management services by leveraging its large domestic branch network and now provides such services to a range of large and medium sized corporations, including the Pakistani units of some Fortune 500.companies.

The Group also strives to stay ahead of the market by anticipating customerrequirements. We strongly believe in relationship banking, which is essential for us to remain responsive to our customers. We also remain focused on improving productivity and ensuring the quality of our risk management.

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INVESTMENT BANKING

An Investment Banking Unit has been established which focuses on loan syndications, development of local currency corporate bonds (TFCs) and advisory services.

RETAIL BANKING

The Retail Banking network, with 1425 branches, is the core strength of Habib Bank. Its extensive reach in all geographic locations – urban and rural – throughout the country provides access to over 5 Million customers across all sectors of the economy. The network provides HBL with the largest diversified low cost deposit base of any bank in Pakistan, and forms the basis for many of its other business lines: corporate and investment banking and treasury activities.

Retail Banking Group (RBG) has two principal areas of activity;

The retail network for deposit mobilization

The consumer-banking group.

HBL is the only major bank to have a very dedicated group to serve the Small & Medium Enterprises (SME) sector. HBL believes that the SME sector can be an engine of growth for the economy and represents an area of opportunity for the Bank. RBG was therefore established in late 2000 to provide banking services and credit on a structured and systemized basis. It now covers 25 branches in the six major industrial cities of Pakistan. The Group now works closely with its customers, which cover all segments of the economy including the textile sector, vendors and suppliers to structure the finances and improve their capabilities. We have been very encouraged by the outcome that reaffirms its belief in the potential of this sector.

There is a growing propensity for consumer spending to uplift living standards.Recognizing that consumer demand can be a major driver of investment andeconomic growth, the Government has also moved towards an enabling regulatory

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framework and has also taken initiatives to create an appropriate legal regulatory frame work to enable the development of a housing finance market. With its extensive branch network and large customer base, HBL has an important role to play in the development of this sector of the economy in which it expects substantial growth in the next five years.

HBL has moved aggressively and has already introduced three major products;

Personal Loans,

Car Financing

in association with major suppliers of consumer products. These have been well received and volumes have been building up steadily. It is the intention of HBL to be a leader in consumer financing. Plans are also underway to develop mortgage financing for the housing sector.Agriculture is the most important contributor to Pakistan’s economy. HBL, which has been a leader in agriculture financing, plans to increase further its credit to this sector with a particular focus on providing a wider range of products to small and medium size farmers. In this regard, to provide flexibility, the Haryali scheme for farmers was introduced which is a 3-year revolving facility rather than the traditional short term seasonal financing. HBL’s specialized agricultural finance department helps farmers in modernizing their farming techniques. The Government has also provided a regulatory framework to encourage corporate farming and as this develops the participation in this sector. Will grow even further. While HBL continue to develop its products, we recognize that quality of customer service will become an even greater differentiating factor in the market. HBL have taken a number of initiatives in this area; investing in technology, training and upgrading of its branches. Extended banking hours and better facilities for utility bill payments have been made available.

In our Retail network, we have an unmatched distribution network, which provides us many opportunities for growth, and we plan to use this to soon provide additional services, including wealth management services.

ISLAMIC BANKING

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The Bank of Khyber has taken the first step towards Islamic banking and for this purpose an Islamic banking division has been established to complete the necessary regulatory and operational formalities thereby paving the way for commencement of Islamic Banking in its specialized branches.

General banking refers to the day-to-day business of bank, under the supervision of manager of a branch. General or day-to-day banking of HBL consists of various departments, which are explained below:

DEPOSIT

Deposits are the lifeblood of banking industry. The basic function of bank is to accept the surplus of individuals, public sector, and public institutions and to honor cheque drawn upon them.

Account Opening Procedure

The applicant is provided an application form to open an account. The applicant in a manner prescribed and duly signed by the applicant fills this form. An existing account holder of the bank must introduce the applicant. A copy of Identity card is attached with the specimen signature card.

The application is presented at the branch with the initial amount of deposit for credit of his account. The amount is centered in the passbook and is singed by the responsible officer of the bank; finally a checkbook is issued to the account holder, for withdrawal of money. Minimum Amount required for opening an account in HBL is Rs. 1000 presently.

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DOCUMENTS REQUIRED FOR ACCOUNT OPENING

Following are the various kinds of documents that are required to open account. These documents covers document requirement for individual, companies and partnership accounts.

Attested photocopy of N.I.C/passport of Account holder(s), Proprietors, Partners, Directors and Office Bearers as the case may be.

Certified true copy of the certificate of incorporation or registration (in case of companies and registered bodies only).

Certified true copy of the certificate of commencement of business (in case of public limited companies only).

Certified true copy of the memorandum and articles of association (in case of limited companies).

Certified true copy of rules and regulations or By-laws (in case of association etc).

Certified true copy of the resolution of the board of Directors/Managing Committee/Governing Body regarding conduct of the account.

List containing names and signatures of the Directors/office bearers duly certified by CLA/Registration Authority.

Letter of partnership or certified copy of partnership deed (in case of partnership).

If the signatures are Shaggy (that is the person is unable to write proper and distinct signatures) three attested pictures of the individual/s opening account are taken.

Letter of employment in case of individual account opening who are employed somewhere.

Students opening accounts are need to show their student card showing that they are students of a particular institute.

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Classification of Deposits

The deposit can be classified under three main heads.

Current Account

Saving Account.

Term deposit.

Current Account or Demand Deposit

Current accounts are usually opened by business organizations, businessmen, corporate, etc. There is no limit for the withdrawals in no. & amount. Current account or demand deposit can be withdrawn by Cheque or transferred to someone else by the depositor at any time without prior notice to the bank.

Current Account is opened, on proper introduction and submission of required document along with initial deposit prescribed from time to time. Current Accounts are opened for individuals (single or joint), firms, joint stock companies, local bodies, autonomous bodies, associations, educational institutions etc. and all other cases where the accounts are to be opened under the order of a competent court of law.

No profit is paid on the balances of current accounts.

The bank is authorized to honor, whether the account is in credit or not cheques, bill of exchange, notes or other orders drawn, accepted, accept endorsement, act on any instructions, and accept any receipts or other documents relating to the account signed or made by authorized person(s) on behalf of the firm/company/association.

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PLS Saving Account

For the convenience of small savers HBL offers PL S saving account. In this account profit is paid on the average balance semiannually. These days no notice is required for withdrawals and there is restriction of the number of with drawls.

The customer is bound to follow the rules and regulations of the bank.

PLS saving accounts are opened on proper introduction and submission of required documents, along with an initial deposit prescribed from time to time for each category.

PLS saving accounts are opened for individual (single or joint), charitable institutions, provident and other funds of benevolent nature of local bodies, autonomous corporations, companies, associations, and education.

There is no restriction on maintaining the upper limit of deposit and withdrawal of amount and no. of cheques from PLS saving account.

Profit is calculated on daily product basis.

Payment of profit will be on monthly basis subject to adjustments on declaration of actual profit rates after six-month closings.

Zakat wherever application shall be deducted on valuation dates from account having balance in excess of the exempted limit as declared for the particular Zakat year.

Term Deposit Account

In case of term deposit account the time limit period of the account is in accordance of the different fixed deposit schemes offered by the bank and according to wishes of the customers. The customers cannot with draw money from his/her account in accordance and compliance of terms decided by the bank and the customer.

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HBL offers 7-30 day’s special notices time deposit so that a person can make best use of idle funds even if it is available for a week.

Similarly schemes are available for five years where profit is payable at the end of fifth year or also available is a scheme in which profit is payable on monthly basis.

PLS Khas Term Deposit

PLS Khas term deposits are accepted for a period ranging from one and half year to five years in multiple of six months.

Profit declared from time to time is paid only once at the time of enactment/redemption of the receipt on maturity.

Zakat shall be deducted only once on encashment before or after maturity.

Special Notice Time Deposit

Profit/return is paid on daily product basis.

Profit on PLS SNTD is payable at the rate declared on preceding half

Yearly/yearly closing.

No profit/return will be paid after expiry of notice period if the deposit is not withdrawn.

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No profit/return is paid for pre-mature encashment before seven days or thirty days notice, as the case may be, from the date of notice or date of issue.

Company departmental functions:

• Human Resource Department

• IT Department

•Learning and Development Department

• Overseas Operation Department

• Pak Account Department

• Foreign Exchange Department

• Audit Department

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The Human Resource Department HBL

The human resource department is very important department of the bank. The function of the human resource department of the bank is to coordinate the activities of the employees. This department handles all the activities related with the employees of the bank. The most important job is to analyze the work and make planning for the people who are working on the organization. When the candidate apply online the third party can conduct their test. Then the hr department called those candidate to take their interview. The other important responsibilities of the department is as under analyze work and planning for people.

• Recruitment

• Staffing

• Performance management

• Managing careers

• Pay& incentive system

• Employee benefit plans

• Employee assistant program

IT department

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This department can manage all the system in regional headquarter. If someone face difficulty or their system is not working well they can resolve their issue. It also coordinates with third party which is prime hr who can take the online test of candidate. They can also resolve their issue. This department is also responsible to manage and maintain the systems in habib bank regional headquarter.

Learning and development Department

This is another very important department of the bank. The HR department controls this

department. The learning and development center was established in Habib bank centre

last 7 years. Its former was training institution of the bank. This department is playing

significant role in the training needs of the bank. L N D department conducts different

types of training courses through out the year. These training programs are designed

according to the needs of the bank

These training programs enhances the professional capability of the staff working in the

field so these employers working in the field provides best services to their customers.

The Audit Department of the Bank

The audit department has important role to play in the bank. There is one audit office in the

each regional office of the bank, known as regional audit office. The audit office send

different audit teams to the different branches of the region for the audit purpose of the

branches. The auditors checks the operations of the branch and also checks that whether

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the branches observes all those procedures / laws during the daily course of the banking

advised by the state bank of Pakistan the auditors also find out there is no fraud and

forgery in the branch of the bank. When they see that branch is not working well. They can

take a snap at the spot and report to their high authority.

Foreign Exchange Department

Foreign exchange department is very important department of the bank. This department

controls all the operations of the foreign exchange department of different branches inside

and outside of Pakistan it deals with central bank of the comfrey. As central bank has been

vested with powers to formulate the foreign exchange policies of the country. Foreign

exchange department of the bank is directly involved with the foreign exchange remittance

in Pakistan.

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SWOT analysis of HBL:

SWOT is an acronym for an organization’ strengths, weaknesses, opportunities and

threats. A SWOT analysis consists of sizing up a firm’s internal strengths and weaknesses

and its external opportunities and threats. It is a tool, to get a quick overview of a firm’s

strategic situation. In the following lines the SWOT analysis of HBL is given;

Strength:

Hbl is the oldest and largest bank in Pakistan. It has a numerous number of ATM

machine throughout the Pakistan.

The behavior of their employee with the employee or candidate of interview is frank.

Hbl can preffer mostly experince candidate due to this step their employee can

know their duties well and know how to deal with the customer.

Hbl are going to open many new branches to capture the market

The presence of Hbl in all parts of the world. Thus also providing services to

Pakistanis outside the country.

The internal job posting for the employee also motivate their employee to work

hard.

It has modern technology and resources to cater to its customers.

HBL was the bank that gives it an edge over other nationalized banks as it can develop

any strategy consistent with the demand of market and free from any political or

bureaucratic influence.

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The products of HBL are also the strength of it. HBL has many products for almost

all type of customers. So it depends on the customer that which product he likes.

Weakness:

Marketing skills of the bank are good but they have little presence at different medias

Have more employees, causing financial burden on the bank.

Highest number of branches, affecting the maintenance of consistency and same

working atmosphere at everywhere.

Branch’s internal environment don’t presents smart image of the bank in most of the

cases.

Their recovery system is not proper working.

There is so much pressure on the job such as for retail manager there is lack of

motivation.

The salary package that they are given to their eemployee is less than the other

bank therefore mostly many employee can leave their job during a two year

There is a continues burden on hr department to fulfill those empty positions.

Employees at branch level are not properly motivated to work by heart. They take

the all routine activities as a boring job

Most of the employees lack managerial training as they are not properly educated.

Due to seniority, they have moved up on the hierarchy line to Grade- I, II or III

positions having hardly bachelor degrees. This type of senior staff cannot apply the

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modern and innovative techniques of management in decision making almost

computer knowledge.

Opportunities:

Islamic Banking is a growing market segment that offers attractive opportunities to potential and existing customers

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.

Use of new advertising techniques to spread awareness about different HBL

product.

Add new products/services to its product line.

HBL differentiate and increase its deposit by offering attractive rate of return on

deposits.

Threat:

The threat of inconsistency government policy regarding to business which makes

the environment uncertain.

Facing more competition not only by local but also the foreign banks in the market.

Reducing rates of the savings in different segments of people.

Reduction in the business activities in the country

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Possible problem that I found in hr department:

There is a pressure on internee to manage the cases of candidate. If one case is

missing there is a lot of problem has been created.

The candidate that are come for interview their lots of time are waste

There is no entertainment facility for the candidate like newspaper there

The interview cannot start on time

The references are common there. They can hire a third party to avoid this

reference system but fail

They never want that there office boy is on holiday

Mostly they can waste their time in talking each other.

There is no any entertainment facility for the internee or staff member to spend their

idle time

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The hbl RHQ many candidates are come here from different region for the interview

or test therefore the candidate money is waste.

There is no wheelchair for the disable people in this HBL RHQ.

Recommendation:

When they give any case to the internee they can enter those case name in the list

When the candidate are come they can take a interview of the candidate

They can provide a newspaper in the conference room as an entertainment facility

to those candidates whose further interview are going to held there.

They must stop the reference system there. So that the people are come here for

interview after clearing the test.

There is also a newspaper for reading not for staff but also the internee.

They should provide the lunch for the internee

The candidate interview or test must be done their region so their money or time

are save.

They must keep a wheelchair in this RHQ