MUHAMMAD MUDDASIRINTERNSHIP REPORTSUBMISSION DATE: 6th July 2018NED UNIVERSITY OF ENGINEERING & TECHNOLOGY EXECUTIVE SUMMARY:The experience working at HBL was phenomenal & remarkable. It was a delightful saga & drive of erudition that unquestionably cleared the perceptions of banking. Banking is a power that reckons and possesses the finest people in the nation serving all the businesses.
This learning was all about serving others in the best possible approach. I am in Real Estate Management (REM) department and here I learnt a lot about Assets and its type and also about the importance of Inventory management in a big sector. The main focus is on Computer Maintenance Management System (CMMS) this software is very useful for maintenance and past records of all breakdowns which tell us about that we have to invest on his maintenance or will buy something new to replace it if it is depreciated. HBL Plaza the Landmark of Pakistan and counted in biggest Building of Pakistan so as compare to other sectors this area is very important. HBL also knows the importance and consider this sector as backbone and pay attention on it too much. I also learnt about Internal communication in a big sector and Cost verification given by vendors and how I can tackle with vendors and 3rd parties.
This is my first internship and I really learnt a lot.OVERVIEW OF THE ORGANIZATION:Brief History:Habib Bank Limited (HBL), at its present position, has a long and rich history of deeds and sacrifices. All this has been possible on the account of sustained efforts. In 1841, a family business company was established in the name of Khoja Mithabhai Nathoo in Bombay, which was dealing in steel business with in and outside the Indian Sub-continent. In 1891, a young Muslim Lad Habib Ismail got employment in this company.
By the dent of his ability and sincerity to duty, radiated his career and at the age of just 18 years, he not only became shareholder of the company but also President of the steel market. His four children namely Ahmad Habib, Muhammad Ali Habib, Daud Habib, and Ghulam Ali Habib, after having educated and grown up, were inducted in the business of the company and there after the name of the company was changed as “Habib & Sons”.Habib Ismail died in 1928 at the age of 53. After the death of their father, the four sons ran the whole business. Mohammad Ali Habib was younger and rank third in the age but was the most intelligent among his brothers and a successful businessman. At that time there was no Muslim Bank in the Sub-Continent.
Habib family established the first financial institution of the Muslims with the name of “Habib Bank Limited” on the 25th August 1941.The first branch of Habib Bank Limited started functioning on 30th August 1941 at Muhammad Ali Road Bombay, where Quaid-e-Azam Muhammad Ali Jinnah first of all opened his personal account. At the time of its inception, the bank’s total paid up capital was Rs.2.5 Million.Habib family migrated to Pakistan and later on shifted the Bank’s Head Office from Bombay to Karachi on 7th August 1947 just one week prior to independence, to play its pivotal role in the development of this newly born country.
Introduction Of The Organization:EVOLUTION OF BANKING IN PAKISTAN The pace of banking development in Pakistan has perhaps very few examples in the world. Starting virtually from scratch in 1947, the country today possesses all range of banking and financial institutions to cope with various needs of economy. The area now constituting Pakistan was, relatively speaking, fairly well provided with banking facilities in undivided India. In March 1947, there were 3496 Offices of India Scheduled Banks out of which, as many as 487 were situated in territories now constituted Pakistan.The Reserve Bank of India had decided that in the interest of smooth transition it should continue to function in newly emerging state of Pakistan up-till 30th September 1948.
The event is immediately after independence seriously strained political relations between the two states and a point was reached when it was strongly felt that without control on its currency and banking the newly established state if Pakistan remained exposed to grave dangers. Following the announcement of independence plan in June 1947, there was a rush in banks to transfer funds and accounts. This resulted in a negative effect on banking service in Pakistan. The banks, which had their Registered Offices in Pakistan, transferred them to India. In effort to bring about the collapse of the new state by pushing a deliberately policy of withdrawals, the Indian Bank’s Offices were closed quickly.
The numbers of schedule banks were declined from 487 before independence to only 195 by 30th June 1948.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 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.
MISSION STATEMENT OF HBLTo be recognized as the leading financial institution of Pakistan and a dynamic international bank in the emerging markets, providing our customers with a premium set of innovative products and services, and granting superior value to our stakeholders – shareholders, customers and employees.VALUE OF HBLHBL is firmly grounded with a corporate philosophy that incorporates five solid values which each individual associated with the bank abides by.HumilityWe encourage a culture of mutual respect and treat both our team members and customers with humility and care. IntegrityFor 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.
MeritocracyAt 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 WorkOur team strives to become a cohesive and unified force, to offer you, the customer, a level of service beyond your expectations. This force is derived from participative and collective endeavors, a common set of goals and a spirit to share the glory and the strength to face failures together.
Culture of InnovationWe aim to be proactively responsive to new ideas, and to respect and reward the agents, leaders and creators of change. HBL after partition opened its branches throughout Pakistan to provide finance and other facilities to the business community. The bank helped handsomely in the construction of WARSAK dam project, Wapda, ; K.D.A.
by provided finance and other facilities. HBL started its journey on August 25th, 1941 and with the able guidance of its management, dedication and hard work of its entire staff, it has so far touched the high peaks of its excellence. It was HBL that introduced service products such as Credit Cards, ATMs, Travelers Cheques, etc.
, to the Pakistani Market. Today Habib Bank 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’s leadership in Pakistan’s corporate arena.
HBL has today 1456 branches inside the country, 65 branches outside the country and two subsidiaries. Other than this the bank has its overseas operations in 25 countries includes 65 branches, two subsidiaries, two Joint Ventures and two representative offices. HBL was privatized in an open auction on 29th December 2006 and the management has been handed over to the winner group i.e. Agha Khan Foundation in February 2007. Still after the privatization the objectives and policies are the same and the new management has so far not introduced their line of action.
Line Of Business:Objectives of HBLObjectives are the ends towards which organizational and individual activities are directed. The goal of every manager is to create a “Surplus”, and clear and verifiable objective facilitates the measurement of the effectiveness and efficiency of managerial actions. Objectives state the end results desired, and major objectives are usually supported by sub-objectives. Thus, objectives form a hierarchy as well as a network. As a Commercial Bank, Habib Bank has the following main objective: Earning profits for the bank itself and for its Share Holders.To promote banking business in the country.
To provide employment opportunities to the people.To develop Industries both on Large Scale and on Small Scale in the country.To provide self-employment schemes to people.
Policies of HBLPolicies 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 PolicyAffairs 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 PolicyMarketing 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 PolicyOperational 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 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. HBL has two wholly owned subsidiaries in Hong Kong and Australia. These subsidiaries have shown improved operational results.
The bank has two joint ventures, in Nigeria and Nepal. The Habib Nigerian Bank Limited is consistently declaring good dividend since last several years. The joint venture at Nepal, Himalayan Bank Limited has shown good progress during its first year of operation.Organizational Structure:Habib bank is the oldest and largest bank of Pakistan and it operates the largest network of branches in Pakistan.
Historically its organization was managed on geographical basis. But many problems raised with the passage of time and with the growth of branches network, such as, lack of coordination among branches as well as high offices, delay in communications, long times lapses in important decision –making, also problem of proper monitoring, evaluation, and compensation of the employees. The old structure was such that at the top was Head Office Karachi, after that 4 provincial Head Quarters, then Circle Office, then Zonal Offices and in the last were the Branches.However, in 1997 organizational changes were made to reposition the bank and overcome the above problems and also to give new smart and corporate shape to the activities of the bank. The organization changed the structure on functional lines. Thus various groups have been created to carry out different services and functions within the bank.
Following are the various groups, whish are created:Corporate & Institutional Banking Group (CIBG)Retail Banking Group (RBG)Asset remedial Management Group (ARM)International Operations & Overseas Banking Group.Finance & Audit Group.Credit policy group.Each group is headed by the group executive and they form policies and strategies.
Each group executive is very experienced and knowledgeable person in his or her relevant areas of specialization.1.Corporate and Institutional Banking Group (CIBG)In order to fetch business from corporate bodies/big customers all over the country, this group operates.
The main function of this group is to provide better services to corporate clients, to keep them in their fold and to avoid plugging of their business to other banks. For this purpose, corporate centers have been established in big cities of Pakistan, to provide quick & better services to corporate clients.2.Retail Banking GroupIt deals with the common branches of the bank spread all over the county.
It fetches to bank spread all over the country. It fetches to bank greater but small deposits and this group’s function is to introduce innovative products; services for the retail banking. Some of which are Muhafiz Rupee Traveler Cheques ; previous year’s Crore Pati Deposit Scheme.3.Asset Remedial Management GroupThe primary goal of this group is the speedy recovery and resolution of the classified portfolio.
The group aims at vigorous litigation, greater merges & consolidation of closed/stick units and debt equity swaps to fully address the classified portfolio.4.International Operations and Overseas Banking GroupThe overseas operations have been consolidated under international operations group. It has chalked out country specific business revitalization strategies for important franchises. In addition, new consumer banking products are being developed at selected locations.
5.Finance and Audit GroupIt is independent of the business groups and look after the financial, regulatory and management reporting of the bank. It has also implemented new audit manual to create to increasing level and sophistication of risks involved.
A new accounting and procedures manual is also nearing completion to improve the financial, regulatory and management reporting of the bank.6.Credit Policy (CPG)CPG is staffed with industry specialists.
They have implemented a new credit policy manual to ensure merit oriented risk management based on internationally proven and successfully banking methodology.DIVISION OF HBL’S OFFICEThere are three types of offices in HBL.Head office.Regional Head quarters.
Branch offices.1.Head OfficeHead office of HBL is located in Karachi.
It exercises overall control over the bank and other areas of administration and operations. The head office (HO) has various functions.FunctionsIt formulates policies and ensures its implementation by field offices.It supervises and controls operations of RHQ.It deals with foreign donors.Sanctioning of loans.
Deals with ministry of finance.Recruitment, training and management of human resources.2.Regional Head QuartersThe number of RHQs of HBL in the country is ten.
Functions of RHQThe functions of RHQ of HBL are:To implement the policies of Head office (HO).To extend the credit facilities by keeping in view all the prescribed conditions.To recover/collect the existing long-term financial assistance extended by the bank as per schedule.To extend working capital facilities.
3.Branch OfficesHBL has today 1456 branches inside the country, 65 branches outside the country and 17 subsidiaries. Other than this the bank has its overseas operations in 25 countries includes 65 branches, 17 subsidiaries, two Joint Ventures and two representative offices. 3.3BOARD OF DIRECTORSName DesignationSultan Ali Allan Chairman Muhammad Aurangzeb President and CEO Moez Ahamed Jamal DirectorSadia khan Director Shaffiq Dharamsh DirectorAgha Sher Shah DirectorNajeeb Samie Directorsalim raza DirectorMANAGEMENT COMMITTEEName Designation Functional responsibilities Sultan Ali Allana Chairman R.Zakir Mahmood President and CEO Sima Kamil Group Executive Corporatre BankingAyaz Ahmed Chief financial officer Zafar Aziz Usmani Group executive Human resource and organizational developmentJamil Iqbal Chief compliance officer Salim Almani Group Executive AuditTulu Islam Group Executive IT and SystemsKashif Shah Group Executive Investment BankingNausheen Ahmad Comapany secretary and head of law Sohail Malik Group Executive Risk ManagementNauman K.
Dar Group Executive International Banking and CEO, Habib allied International Bank Plc., UK.Abid Sattar Group Executive Retail and consumer bankingMuddarssir H.Khan Group Executive Global OperationFaizan Mitha Group Executive Global TreasuryAslam Gadit Group Executive Asset remedial managementMirza Saleem Baig Group Executive Commercial BankingJamil A.Khan Group Executive Administration and ServicesAly Mustansir Head of Marketing and Brand Management -83185551180ChairmanBoard of DirectorsVice PresidentSenior Executive Vice PresidentOfficer Group-11Officer Group-1Officer Group-111Assistant Vice PresidentExecutive Vice President00ChairmanBoard of DirectorsVice PresidentSenior Executive Vice PresidentOfficer Group-11Officer Group-1Officer Group-111Assistant Vice PresidentExecutive Vice President3.
5HBL’S ORGANIZATIONAL HIERARCHY ref SHAPE * MERGEFORMAT 2697480186817000BANKING OPERATIONS OF HBL-166370-5143500ref SHAPE * MERGEFORMAT ref SHAPE * MERGEFORMAT Competitors:NBA (National Bank Limited).UBL (United Bank Limited).MCB (Muslim Commercial Bank). Allied Bank.Standard Chartered.
Bank Alfalah.Plan Of Your Internship Program:Introduction of the branch and Internship DepartmentHabib Bank Plaza (now HBL Plaza) is the head office of Habib Bank. Real Estate management(REM) is the operation, control, and oversight of real estate as used in its most broad terms. Management indicates a need to be cared for, monitored and accountability given for its useful life and condition. This is much akin to the role of management in any business.Property management is also the management of personal property, equipment, tooling, and physical capital assets that are acquired and used to build, repair, and maintain end item deliverables.
Property management involves the processes, systems, and manpower required to manage the life cycle of all acquired property as defined above including acquisition, control, accountability, responsibility, maintenance, utilization, and disposition.Starting and Ending Date Of Internship:HBL The League Internship program is of 6 weeks and it is started on 4th June 2018 and ending Date is 13th July 2018.Description of the Operations performed by Department:In Real estate Management (REM) there are so many operations performed are as follows:Evaluate SuppliersInventory managers have the important responsibility of finding a supplier who will provide your company with the goods needed to operate and be profitable..
Prepare DocumentationInventory managers are responsible for managing inventory documentation. Purchase New InventorySome organizations may have a separate purchasing department that negotiates and signs contracts with suppliers. However, in smaller companies, that responsibility may fall to the inventory manager in addition to his or her role in managing the ongoing relationship with suppliers. Track InventoryThis is an obvious responsibility, but it’s an important one to acknowledge considering how integral knowledge of your inventory flow impacts all three of the duties mentioned above Inventory balance A managed approach to inventory helps to eliminate shortages, overstocking, and stock obsolescencePrice Negotiation: Verify the price or bill given by vendor . Project Assign To US:In Inventory management and maintenance HBL Buy a new Software CMMS because they want to keep the every maintenance records of all inventories so we have many new targets to achieve are as follows:HBL Plaza have more than 800 asset so we have register all on CMMSWe have to make work orders of all maintenance checklists Visit the sites, plants and Floor of HBL for inspectionHow to deal with vendorsHow to make Work permits, BOQ, Recruitment Form and etc.Complete Use of CMMS softwareAnd also HBL Introduce his new Building so we have to Collect data of all asset installed and upload on CMMS.
CRITICAL ANALYSIS:Today’s age is an age of management. Management is the back bone of any organization or any activity done. The real success of management lies in applying the professional management techniques an all managerial activities. The main objectives of study which I studied in university are relate at HBL are:To learn how the company keeps all the data of inventory perfectly. To study how finance department of the company work.
To find out the composition of inventory.To study the various inventory ratio. To analyze the inventory management techniques used in the company.To study the Inventory Control Techniques of the companySWOT ANALYSIS: The purpose of such analysis is to build on company’s strengths in order to exploit opportunities and counter threats and to correct company’s weaknesses. SWOT analysis is based on the assumption that if managers carefully review such strengths, weaknesses, opportunities, and threats, a useful strategy for ensuring organizational success will become evident. Strengths and weaknesses typically relate to the internal environment of an organization, whereas opportunities and threats are brought about by the external environment of an organization. In the following section, both internal and external analysis of HBL is outlined:INTERNAL ANALYSIS Internal analysis of a firm is the analysis of its strengths and weaknesses. Unless a firm has internal strengths and controls its weaknesses, it cannot take advantage of opportunities and escape threats which the external environment presents. Following are the main strength and weaknesses of HBL: Strengths: 1. HBL is a well established bank enjoying long history. 2. HBL was the first privatized bank that gives it an edge over other nationalized banks as it can develop any strategy consistent with the demand of market and free from any political or bureaucratic influence. 3. HBL is the largest private bank in Pakistan now and people trust is very high. 4. It has the largest branch network among private banks of Pakistan. 5. HBL is the market leader in introduction of e-banking and it has the largest ATM network in the country. 6. The Bank’s Rupee Traveler Cheques have been market leaders for the past six years. 7. HBL was rated the best domestic bank for two consecutive years of 2000and 2001 by Euro money, a leading international publication.8. HBL has forged strategic alliances with international banks for expanding its network further, both locally and internationally. 9. HBL has the ability to bring innovative products and services like personalized service, electronic funds Transfer, sophisticated financial products such as electronic banking, auto-teller machines and evening banking. 10. HBL has been very effective in controlling costs as it successfully restructured itself after its privatization. During this process more than1600 employees were relieved under a golden handshake scheme and110 branches were closed. 11. All selections and everything on merits.12. Excellent branches appearance gives an edge to HBL over other banks. The branches are well furnished even in less developed areas where other banks ‘branches give a poor view.Weaknesses:A weakness is defined as an area in an organization where the organization is not as good at doing something as its competitors or a thing which an organization lacks thus putting the organization at disadvantage in comparison to its competitors. Based on the above definition, HBL has the following weaknesses:1. Mission of HBL is not well distinct. 2. Though HBL is second largest bank in Pakistan, yet the fact remains that it is not market leader as NBP. Its total assets is always less than NBP total assets. 3. Now as it is a privatize bank that is why government support to HBL decreased as it was in past. 4. Employees at branch level are not properly motivated to work. Job rotation is not found in this organizationEXTERNAL ANALYSIS An organization has to monitor its environment constantly to keep up with new developments and changes in the environment. A change in the external environment may be either an opportunity or threat. In either case, the organization has to properly use it strengths to avail the opportunities and avoid or minimize the negative effects of threats. Following are the main opportunities and threats of HBL.Opportunities An opportunity can be defined as a change in external environment which if properly exploited with the organizational strengths will result in enhanced sales, market share, or income. Using its strengths, MCB can avail the following opportunities: H.B.L. is oldest bank in the country people do rely on this bank with some additional efforts bank can attract high deposit from Pakistan and overseas. 2. Instead of emphasizing on big & long term projects bank should concentrate on small scale investments heaving small maturity period. 3. Now-a-days H.B.L. has been investing almost 18% of its total investment on cotton business, along with investment in cotton it should invest in other cash crops, i.e. Rice, Sugar Cane, Tobacco, Wheat etc. and their related agro based industry THREATS First threat that bank has to face is the Privatization, downsizing & restructuring these changes could make drastic effects as well. 2. New incoming local & specially foreign banks those are main cause of stiff competition in the market 3. DFI’s are going very well in financial set up of Pakistan. So, these are also effecting on the operations of bank. Along with other threats the threat of corruption has vital importance.RECOMMENDATION AND CONCLUSION:The competition tends to increase with the passing time, in order to maintain better position HBL needs to work on employee retention ; customer satisfaction and should remove all the weaknesses. As the draw backs have removed then bank will not only join its previous position rather we hope it will be rated among world top ten bank.The bank must propose proper employee motivational strategies as I have observed the lack of motivation among all employees. The management must take actions ; promote the competent individuals; it feels that the promotion process is moderately slow. Employee retention strategies should be projected. Customer dealings should be given more weighted. Despite of so many advancements, manual work is more promoted. This should be discouraged. HBL should also focus on its marketing strategies so that the market share could be increased.