Strengths

Strength can be defined as an area where a company is best at doing something or a feature that puts the company at an advantage in comparison to its competitors. HBL enjoys the following strength: Habib Bank enjoying long history of over 65 years of experience and profitable operation. HBL is the largest private bank in Pakistan now and people trust is very high. It has the largest branch network among private banks of Pakistan. HBL has been very effective in controlling costs as it successfully restructured itself after privatization. During this process more than 1600 employees were relieved under golden handshake scheme and 110 branches were closed. Excellent branches appearance gives an edge to HBl over other banks. The branches are well furnished even in less developed areas where other banks ranches give poor view. HBL has the ability to bring innovative products and service like personalized service, electronic funds. The Banks rupee traveler cheques have been market leaders for the past six years. HBL car to car financing scheme is unique in auto loan scheme. HBL has forged strategic alliances with international banks ofr expanding its network further both locally and internationally.

HBL has forged strategic alliances with international banks for expanding its network further, both locally and internationally.

Weaknesses

Maximum number of branches carrying out the proper maintenance and complexity in providing identical working atmosphere at the every branch. Inferior organization of revival of the system is a danger to bankruptcy. Be deficient in customer feedback. Little job contentment. Pitiable ATM service Irregularity in efficiency and working environment due to the largest of branches. Sense of uncertainty in the employees allocated at little money-making branches due to the downsizing. Females feel nervous in an environment in the middle of the male workers. Prey of political and socio cultural stress Short of professionalism in the branch employees frequently.Opportunities

Huge available market prospective in consumer banking. An opportunity exists, in shape of opening of ladies banking segment inside the branch which is completely a new idea it will pull customers towards bank. Chance for mounting value added services combined with corporate banking relationships, cash management services to large and medium sized corporate clients. Emergent strategy of government on business and commerce sector provide HBL opportunities to take return of these policies to meet professionally with the business people to solve their problems with the instant cash and investment facilities.

Government is taking very courageous steps to endorse Information Technology in Pakistan. HBL has an opportunity to recover its technology.Customer advice on diverse products and accounts ha really improved bank performance and encouraged the ambiance for other potential policies. Habib Bank Ltd also has an opportunity to its new technological expansion like tele-banking and internet banking facilities in a way to serve more competently. E banking facility too is an innovative opportunity which is a prosperous business in foreign countries and can also be here if HBL takes the step ahead. Due to well-organized and expert managemen group HBL can also develop and enlarge its foreign business productively. HBL provides opportunity to make use of its abilities and efficiencies in leasing business.Threats Consolidation in the banking segment ensuing in increased rivalry. Scarcity of qualified and focused personnel at minor managerial and officer stage. Increasing global technological progression. Firm regulation by government over credit conveniences to the customers as poorly as to meet the prudential Loss of assurance of out of the country customers due to freezing of accounts. Facing more opposition by overseas banks in the marketplace. Overseas banks are flourishing in field of consumer financing.

PEST Analysis

A broad view of the market is seen as an important tool in the management is interested in creating a better service for customers. Rapid technological change, global competition and the response preferences of the highly diversified buyer in many markets require the constant attention of the market vouchers to identify business opportunities such changes in competitors' positioning strategies, see the shifting patterns of buyers, evaluation and guidance the choice of targeting the buyers and to classify based on their segment. Identification of external Macro-economic factors that affect buyers and thus includes the size and the composition of the market overtime in the first instance, the construction of customer profiles. These influences include: Political and legal environment Economic trends Socio Cultural environment Technological factorsPolitical and Legal EnvironmentBanks are mostly affected by political and legal consideration of a country. This environment consists of agencies of law enforcement and government regulations that influence and limit various organization and individuals. Mostly these laws are designed to create new business opportunities.Business legislation has the following main objectives To protect the banking companies of unfair competition. To protect consumer from unfair commercial practices adopted by banks To protect the interests of society by the unbridled business behaviorEconomic trendsAlong with increased borrowing capacity, a banking market requires improved consumer market volume. borrowing capacity depends concerned: The result of the Consumer Savings rates consumption patterns Interest rates Budget deficit Exchange rates Cost of living InflationSocio Cultural EnvironmentA society is determined by established and / or understood beliefs, norms and values. People in a society consciously and unconsciously interact with: Same Other Organization Society NatureThe following are the main factors. That arise because of the change in the socio Cultural environment ? Awareness of service Concern for the environment Improved customer relationsTechnological FactorsThe advance in the technological forces have played an important role in shaping people's lives. The rate of change of technology and its adoption has significantly affected the growth rate of the economy worldwide and the same is the case in Pakistan banking industry in general and people in particular HBL. With each passing day, new technology is generating deep roots affects what could be pragmatic in the long run. These intensify techniques involved in online banking. In brief PEST analysis evaluates the banking sector in general and provides information about the external macro condition.

Competitors Habib Bank LimitedIt has many competitors in your industry only advantage is carrying more Gob deposits. organizations and advances in gold. The others do not have this kind of opportunity, but they are far HBL well amid the customer, behavior, perspective, services, saving time, products, etc. The following is a list of competitors. Deposit DepartmentBank offers money and are merely the mobilization of funds within the economy. They borrow from and lend one person to another the difference between the loan rate loans is its propagation or gross profit. Therefore we can rightly say that deposits are blood bank that makes the body of an institution to get to work. These deposits are the responsibility of the bank so from the point of view of the bank can refer to them as laibilities.Account Types Current Account In these accounts it allows tthe customer to deposit or withdraw money as and when he likes. You can, therefore, deposits or withdraw money several times in one day, if he likes. There is also no reaction on the amount to be deposited or withdrawn. However there is minimal maintenance requirement balance of Rs.5000/. usually this type of account is opened for business. Without the benefit is paid by the bank an no service charged are deducted by the bank in the current account deposits.Features Account can be opened with a minimum balance Rs. 1000/ with no maximum limit. Check the balance at any time during banking hours. No benefits are paid. Statement sent a letter request. There is no restriction on the withdrawal of the amount and check number. saving exchange gains and losses

Profit and Loss Sharing AccountThis type of account is for those people who want to make small savings. This type of account is opened with a minimum deposit of Rs. 1000/- or the prescribed amount of time to time. The benefit is paid to these accounts the minimum balance for one month for the whole of that month. Zakat and other taxes are deducted according to government rules. The requirements for this account is dully completed prescribed opening A/C shape, photocopy of National Identity Card (Resident Pakistan), two passport photos with signature / thumb print (Resident Pakistan), copy of passport photos having resident visa page country where they lived Pakistanis, two passport-size firms and A/C opening from Non resident Pakistani photographs with signature Printing / thumb etc.Features Account can be opened with a minimum balance Rs.1000/- or time limit to be announced in time without limit prescribed. The benefit is payable to the monthly theme for the adjustment of the slowdown in the real rate of profit declared every six months. The benefit is calculated on monthly products. Zakat is deducted at the time of valuation account. The benefit is paid / credited into account in half every year for six monthly PLS savings accounts. Statement dispatched on half a year after the publication of the profit. There is no restriction on the withdrawal of the amount and check number.Fixed DepositsFixed deposits made after the due date may be withdrawn. In these deposits, the Bank has high interest rates based on time deposits. The shorter the period of the deposit, plus interest and vice versa.

Account opening sectionIn this section, I have to learn to open a new account. The HBL opening different types of accounts. Opening an account is to build relationships with customers banker. Before a bank opens a new account, the banker has the integrity, decency, occupation of the potential customer and the nature of the cases through the preliminary reference data to determine the time of account opening. I have explained these accounts. To open an account first customer to fill in a form prescribed by the bank. The person is needed to any reference or for the introduction to make the opening of the account. Introducer can a person be an account with HBL. Some important information about introducer is, for example, the name and account number of the insertion device is written in the area on the sample signature cards. Then, to find out whether there is a real contributor or send a letter to him to thank him for that introduction, so nothing can get bad in the announcement. There are different requirements for different types of accounts and account holders. One important thing is that the customer must have a business customer. The limit of the company's 40 million customers and corporate clients industry still has.The following parties are involved in TT The applicant Signs branch Librado branch BeneficiaryFollowing the important things to be included in the TT: Full name of the beneficiary or account number must be listed in the application form. Instruction on the manner of payment must be obtained. A recording of the presentation foreign registry should be maintained. All shipping costs should be controlled by numbers or codes.Advances Department

This department worked under the guidance of experienced and qualified knowledge banker. Mr. Nadeem, which service the bank had for the past 22 years. This department has played one of the main functions of the bank because a bank is organizations that take deposits and give progress. Progress department one of the most sensitive and important services of the bank. The majority of the reinforcement is achieved through this section. The work of this department is to make proposals on loans. The headquarters of Credit Management Division directly controls all developments. As is well known bank is an institution of the profits. Surplus balances attracts customers with low interest rates and progress in the interest of individuals and companies higher. Credit extensions are the most important activity of all financial institutions, because it is the main source of income. However, at the same time, is a very dangerous command, and the risk can not be completely eliminated, but it can be greatly minimized certain techniques. Any person or company who wants to borrow HBL must be a prescribed form, which for the first time, complete the following information to the banker. As we have seen in the previous analysis of the financial statements, I realized that Habib Bank works very well since its inception. It is very difficult to make suggestions to improve the conditions of bank Habib Bank Limited. As we know that nothing is perfect, there is always room for improvement, so can recommend the following suggestions to HBL: Employee training programs can be continuously fed so that employees are aware of the latest developments especially with customers.Bank may introduce incentive schemes for employees on a regular basis so that if employees can work from my heart for the good of the organization. Banks different regimes should be provided to target customers in order to have a reasonable market share. Bank should help the company through no-interest loans to talented students. Online Banking should be introduced in all branches. To motivate the salary / wage workers must be on a par with the best level of banks. Aggressive advertising campaign to be launched through the print and electronic media for new products and schemes by initiating aggressive marketing policy. Bank should establish an induction plan, so that when a customer opens the bank account must be provided with a booklet that the procedure for submitting checks, payroll, etc. know much time bank staff and store while performing the customer. The attitude of bankers with all the customers are not the same; more attention and good service to certain customers and giving up a large part of them. Some customers are responsible for the bank and do their work to others; It is not good practice. All customers must be treated fairly. HBL should increase their communication with customers about the conditions of the various products and services.

Account Opening DepartmentIn0this0department0I0have0to0learn0how0to0open0a0new0account0of0a0customer.0The0HBL0open0the0different0types0of0accounts.0The0opening0of0an0account0is0the0establishment0of0banker0customer0relationship.0Before0a0banker0opens0a0new0account,0the0banker0should0determine0the0prospective0customers0integrity,0respectability,0occupation0and0the0nature0of0business0by0the0introductory0references0given0at0the0time0of0account0opening.0I0already0explain0these0accounts.0In0order0to0open0an0account0first0of0all0the0customer0has0to0fill0a0form0prescribed0by0the0bank.0The0person0is0required0to0bring0some0reference0or0introduction0for0opening0the0account.0Introducer0may0be0a0person0who0has0an0account0with0HBL.0Some0important0information0regarding0introducer0e.g.0the0name0and0account0number0of0the0introducer0is0written0on0the0space0provided0on0the0specimen0signature0cards.0Then0in0order0to0find0out0whether0he0is0a0true0introducer0or0not0a0letter0is0sent0to0him0thanking0him0for0this0introduction,0so0that0anything0wrong0may0come0into0notice.0There0are0different0requirement0for0different0types0of0accounts0and0account0holders.0An0important0thing0is0that0the0customer0should0have0a0corporate0customer.0The0corporate0customer0limit0is0400million0and0this0branch0always0deals0the0corporate0customer.Procedure0of0Account0Opening Duly0filled0prescribed0A/C0opening0form. Attested0photocopy0of0N.I.C./Passport0of0Account0Holder(s),0Proprietor,0Partners,0Directors0and0office0Bearers0as0the0case0may0be. Certified0true0copy0of0the0certificate0of0incorporation0or0registration0(in0case0of0limited0companies0&0registered0bodies0only). Certified0true0copy0of0the0certificate0of0commencement0of0business0(in0case0of0public0limited0companies0only). Certified0true0copy0of0the0memorandum0and0articles0of0association0(in0case0of0limited0companies). Certified0true0copy0of0rules0and0regulations0or0By-Laws0(in0case0of0association0etc.). Certified0true0copy0of0the0resolution0of0the0Board0of0Directors/Managing0Committee/Governing0Body0regarding0conduct0of0the0account.Procedure0for0Account0closingAny0time0the0customer0can0close0their0account0if0he0is0not0satisfy0with0the0bank0or0may0be0other0reason.0He0can0easily0close0their0account.0For0closing0of0account0the0customer0meets0the0manager0that0he0want0to0close0his0account0.For0this0purpose0the0application0is0written0to0the0manager.0The0manager0sing0this0application0and0this0is0submit0to0the0account0opening0department0this0department0close0the0account0of0the0custom.

1. Remittance0DepartmentRemittance0is0a0major0function0of0the0bank.0It0is0the0transfer0of0money0from0one0place0to0another0place0without0directly0involving0cash.0As0it0is0the0function0of0the0Bank0to0the0money0to0any0place0where0there0is0a0Bank.0It0is0the0most0easiest0and0safe0way0to0send0money0to0any0place.0Bank0charges0menial0amount0as0a0commission0for0the0remittance.0Here0in0the0Habib0Bank0Limited0Chubara0Road0Layyah0Branch0there0is0also0remittance0Department.0By0providing0this0service0to0the0customers0the0national0bank0earns0a0lot0of0income0in0Exchange.There0are0two0types0of0bills0remittance:I) Remittance0InwardII) Remittance0OutwardI. Remittance0InwardCheques0and0Drafts0received0for0payment0and0clearance0or0drawn0on0us0from0customer0of0other0banks0on0behalf0of0their0customers0is0called0Remittance0Inward.II. Remittance0OutwardAll0instruments0issued0by0us,0which0are0drawn0on0other0branch0of0the0same0bank0or0instruments0deposited0for0collection0from0other0bank0locally0or0out0of0city0are0called0Remittance0Outward0There0are0mostly0four0methods0to0remit0the0money.0They0are Demand0Draft0(DD) Mail0Transfer0(MT) Pay0Order0(PO) Telegraphic0Transfer.(TT)

Demand0Draft0(DD)It0is0the0most0commonly0method0used0for0remittance0of0money.0It0is0very0simple,0firstly0a0form0is0to0be0filled0in0which0all0details0are0specified0that0where0and0it0which0branch0the0draft0is0to0be0sent0then0the0money0is0depositor0which0is0called0draft0and0money0can0be0drawn0after0showing0to0the0bank0of0the0specified0branch0of0the0Bank.0Only0specified0person0can0draw0the0money0on0that0draft.0Another0method0to0secure0the0payment0of0the0draft0could0be0the0crossing0of0the0draft,0which0means0that0it0will0only0be0deposited0in0the0payee's0account.0To0make0it0more0secured0and0safe0the0Bank0has0coded0the0amount0exceeding0Rs.015000.0Only0the0banker0or0the0person0known0the0actual0amount0of0the0draft0in0return0bank0gets0a0commission0which0is0its0mode0of0earning.Following0parties0are0involved0in0demand0draft: Applicant Issuing0branch Drawee0branch BeneficiaryA0demand0draft0may0be0issued0against0the0written0request0of0the0customer0before0issuing0it0must0be0seen0that0the0demand0draft0is0in0order.The0DD0application0must0be0scrutinized0by0the0counter0clerk0in0respect0of0following0points. There0should0be0branch0where0payment0is0to0be0made. Full0name0of0payer0should0be0mentioned. Amount0in0words0and0figures0must0be0same The0applicant0on0two0places0should0sign0application.

Mail0Transfer0(MT)The0money0is0transferred0through0mail.0One0Branch0of0the0bank0sends0advice0to0the0branch0of0the0same0bank0to0credit0the0account0of0payee.0In0this0type0of0transfer0the0payee0must0has0the0Bank0account.0For0example,0now0days0PTV's0licenses0are0made0all0over0the0Pakistan.0Bank0also0gets0commission0on0the0mail0transfers0the0amount0to0the0PTVs0Islamabad0account.Pay0Order0(PO)Pay0order0is0less0expensive0method0of0transfer0money.0Normally0this0method0is0used0to0transfer0money0inside0the0city.0If0it0is0used0city0wide,0it0takes0a0long0time.0The0bank0charge0Rs.0100which0is0flat0fee0the0pay0order0and0an0excise0duty0of0Rs,010per0leaf0withholding0tax0of020%0on0the0sum0is0also0taken0from0the0party.0Now0if0the0pay0order0is0to0be0cancelled0or0duplicate0of0the0pay0order0is0to0be0needed0is0case0of0misplacement0Rs.200is0to0be0paid.Following0parties0are0involved0in0pay0order: Applicant issuing0branch PayeeTelegraphic0Transfer.(TT)It0is0a0good0safe0and0fast0method0of0transferring0money0from0one0place0to0another.0The0advice0is0sent0through0the0telegram0and0the0bank0to0which0the0advice0is0made0reconfirms0that0whether0the0advice0is0made0or0not.0After0the0confirmation0the0money0is0paid0to0the0payee.0Telegraphic0Transfer0could0be0made0by0giving0the0name0and0the0telephone0number0of0the0payee0but0account0number0is0considered0good0and0sage.0The0amount0exceeding0Rs.150000is0coded0in0order0to0keep0security.

Following0parties0are0involved0in0TT Applicant Drawing0branch Drawee0branch BeneficiaryFollowing0important0things0should0be0included0in0TT: Full0name0of0the0beneficiary0or0account0number0should0be0mentioned0in0the0application0form. Instruction0regarding0mode0of0payment0should0be0obtained. A0record0in0the0remittance0outward0register0should0be0maintained. All0the0remittance0must0be0controlled0through0number0or0codes.

2. Advances0DepartmentThis0department0has0been0working0under0the0supervision0of0knowledge0experienced0&0well0qualified0banker.0Mr.0Nadeem,0who0has0been0serving0this0bank0for0the0last0220years.0This0department0has0been0playing0one0of0the0primary0functions0of0the0bank0because0a0bank0is0the0organizations0that0accept0deposits0&0give0advances.0Advances0department0is0one0of0the0most0sensitive0and0important0departments0of0the0bank.0The0major0portion0of0the0profit0is0earned0through0this0department.0The0job0of0this0department0is0to0make0proposals0about0the0loans.0The0Credit0Management0Division0of0Head0Office0directly0controls0all0the0advances.0As0we0known0bank0is0a0profit0seeking0institution.0It0attracts0surplus0balances0from0the0customers0at0low0rate0of0interest0and0makes0advances0at0a0higher0rate0of0interest0to0the0individuals0and0business0firms.0Credit0extensions0are0the0most0important0activity0of0all0financial0institutions,0because0it0is0the0main0source0of0earning.0However,0at0the0same0time,0it0is0a0very0risky0task0and0the0risk0cannot0be0completely0eliminated0but0could0be0minimized0largely0with0certain0techniques.0Any0individual0or0company,0who0wants0loan0from0HBL,0first0of0all0has0to0undergo0the0filling0of0a0prescribed0form,0which0provides0the0following0information0to0the0banker.Advances0are0investments0of0bank0to0earn0profit.0After0restructuring0of0Habib0Bank0Limited,0Head0office0gives0loan0targets0to0each0branch0that0must0be0achieved0for0its0survival.0The0manager0is0responsible0to0achieve0these0targets0in0the0given0period.0The0amount0is0collected0partially0with0an0agreement0containing0the0markup0or0interest0rate,0which0is0to0be0paid0the0interest,0or0markup0is0applied0on0a0time0limit0after0that0it0can0be0increased0with0the0given0conditions0applied.0There0are0basically0two0types0of0loans. Fund0base0 Non-fund0base

Fund0baseIn0fund0base0the0cash0is0involved.Non-fund0baseWhile0is0non0fund0base0cash0is0not0involved.These0are0following0types0of0advances0those0are0given0by0the0BANK. Cash0Finance0(CF) Running0Finance0(RF) Machinery0Loan. International0Development0Agency0Loan(IDA)Cash0finance0(CF)Cash0Finance0is0the0biggest0loan0given0to0the0businessmen,0industrialists,0and0its0limit0is0in0crores0and0bank0do0require0security0for0this0purpose.0After0the0proper0investigation0and0documentation0these0finances0are0given0and0genuine0property0is0pledged0as0a0matter0of0security.These0loans0are0taken0for0the0purchase0of0stocks0etc.0The0bank0appoints0its0staff0of0two0or0three0persons0at0the0place0where0that0stock0is0lying.0Bank0also0keeps0the0record0of0the0stock0and0current0position0too.0A0notice0is0also0written0at0the0place0that0the0stocks0are0pledged0with0the0bank.0To0get0these0types0of0loans0prior0permission0from0the0zonal0office0of0the0Habib0bank0is0also0required.0The0bank0gets0back0its0principal0amount0and0also0markup0for0the0loanRunning0finance0(RF)Running0Finances0are0also0given0for0the0purchase0of0stock0etc.0But0its0limit0is0not0too0much.0Normally0up0to0RS015,000,0000is0given0as0a0Running0Finance0and0no0staff0is0appointed.0This0is0termed0as0Hypothecation,0which0means0that0party0is0wholly0liable0for0the0stock0and0

payment0of0the0principal0amount0and0markup.0The0procedure0is0almost0same0as0for0the0cash0finance0and0the0loan0is0given0to0those0parties0which0are0able0to0prove0its0genuineness0and0satisfies0the0bank.0The0bank0also0pledges0the0genuine0security0of0the0party0which0normally0more0valuable0than0the0amount0of0loan.0To0get0this0type0of0loan0prior0permission0of0the0zonal0office0is0necessary.Machinery0loanCertain0loans0are0given0for0the0purchase0of0machinery.0These0loans0are0called0Local0Machinery0Manufacturing0Loan0(LMM0LOAN).0The0bank0finances0for0the0machinery,0which0is0manufactured0in0Pakistan.0Like0other0loans0after0the0proper0verification0and0proper0documentation.With0the0prior0approval0from0the0zonal0office,0these0loans0are0given.0The0bank0pledges0some0genuine0property0as0a0security.0Personal0security0is0also0required0in0the0getting0of0this0loan.0The0loan0is0to0repay0in0certain0installments0which0includes0the0mark-up0also.0Normally0these0loans0are0for0the0period0of0five0years0and0first0six0or0three0months0are0exempted0from0the0installments0as0the0ease0or0as0the0terms0and0conditions0may0be.0The0rate0of0the0interest0to0be0paid0by0the0party0is08%0per0annum.International0Development0Agency0Loans.These0loans0are0given0for0the0purchase0of0foreign0machinery,0stocks,0etc.Though0these0loans0are0not0in0practice0but0there0is0a0provision0for0this0loan.0The0cause0of0in0practicing0of0the0loan0may0be0the0unawareness0of0the0people0about0the0provision.The0rate0of0interest0on0these0loans0is011%0per0annum.These0finances0are0provided0by0the0World0Bank.

Principles0of0AdvancesThere0are0five0principles,0which0must0be0duly0observed0while0advancing0money0to0the0borrowers. Safety0 Liquidity0 Dispersal0 Remuneration0 Suitability0Other0Finance0system0of0the0HBL Demand0finance Fixed0assets0financing0(FAF) House0Finance Hire0Purchase0Financing

3. Marketing0DepartmentFunction0of0Market0DepartmentThe0function0of0the0marketing0department0of0a0HBL0is0to0advertise0about0the0bank0and0reach0more0possible0customer0who0would0open0accounts0with0the0HBL.0They0usually0start0up0the0campaign0or0a0promotional0scheme0explaining0a0benefit0that0come0along0with0the0process0of0account0opening0with0the0bank.0Such0a0campaign0usually0results0in0the0increase0in0the0customers0base0and0increased0the0profit0for0the0HBL.Another0important0function0of0HBL0is0to0use0of0the0segmentation0strategy,0in0it0the0HBL0divide0the0market0into0distinct0group0of0buyers0with0different0needs0how0might0require0It0is0very0important0strategy0which0is0applied0by0the0operation0marketing0department0in0the0HBL,0the0Main0focus0of0this0selecting0strategy0is0to0spreading0the0market0into0different0groups,0where0the0persons0have0comparable0needs0as0well0as0wants0for0services0and0products.The0marketing0department0in0HABIB0BANK0LIMITED0is0very0strong.0It0is0the0main0source0of0gaining0and0maintains0the0customers0that0can0give0a0large0profit0to0the0bank.0There0are0five0relationship0managers0in0Habib0bank0and0every0person0is0responsible0for0the0credit0of0his0party.0There0are0three0market0of0HBL.Money0Market T-Bill0and0Govt.0Securities Bonds0of0Provincial0Govt. Defense0Saving0Certificates Mutual0Funds0etc.

Capital0Market Equities0e.g.0shares Mutual0Funds Bonds Debt0MarketForeign0Exchange0Market Spot0Transactions Outright0Transactions Swap0TransactionsCustomer0dealingHBL0corporate0center0only0deal0with0the0following0categories0of0business: The0organization0that0have0minimum02500million0sales0in0a0year. The0organization0that0have0availed0800million0finance Agri0based0industry. HBL0do0not0deal0with0the0agriculture0sector.

4. Clearing0DepartmentThe0major0function0of0clearing0department0is0to0receive0the0cheques,0which0are0drawn0on0some0other0banks.0The0customer0can0get0the0money0in0his0account0at0Habib0Bank0Limited0through0a0cheque0drawn0on0another0bank.0The0bank0accepts0these0cheques0and0collects0the0amount0from0that0bank0on0which0cheques0are0drawn0through0the0Clearing0House.0Bank0charges0some0commission0for0this0function.0Every0bank0performs0both0as0a0paying0as0well0as0collecting0functions0on0behalf0of0its0customer.0It0is0however0an0important0function0of0crossed0cheques.0A0large0part0of0this0work0is0carried0out0through0the0bankers0clearing0house.0A0clearing0house0is0a0place0where0representatives0of0all0the0banks0of0a0city0get0together0and0settle0the0receipts0and0payments0of0cheques0drawn0on0each0other0bank.0As0the0collecting0banker0runs0the0certain0risks0in0receipt0of0their0ownership,0the0law0has0provided0certain0protections0to0the0banks.0The0basic0function0of0clearing0dept.0arises0when0HBL0account0holder0deposits0cheque0of0another0back0to0collect0its0payment0on0his0behalf0or0HBL0account0holder0gives0a0cheque0to0any0other0party0concerning0to0any0other0bank.0Usually0a0cheque0is0sent0through0clearing0is0credited0to0the0depositor0account0day0after0tomorrow.In0this0regard0there0are0two0types0of0clearings. Inward0Clearing Outward0ClearingInward0ClearingInward0clearing0means0all0those0cheques0which0are0issued0by0account0holders0too0their0parties0and0now0these0cheques0are0presented0for0payment0(in0term0of0amount0of0cheque0credit0to0presenter0account).

Outward0ClearingSimilarly0when0outside0parties0issue0some0cheque0to0our0account0holders,0they0deposit0these0cheques0in0cheque0Receipts0Department.0Afterward0these0cheques,0as0relating0to0other0banks0operating0in0country,0are0sent0to0clearing0department0or0further0process.0Clearing0dept.0sends0these0cheques0to0respective0banks0and0after0realization0of0cheque,0funds0are0credited0to0the0account0of0respective0customer.0In0this0regard0there0are0two0types0of0clearing Intra0city0clearing Intercity0clearing

5. Foreign0Exchange0DepartmentAs0the0Pakistani0currency0accounts0are0opened0the0requirements0are0same0for0the0foreign0currency0accounts.0All0the0transactions0are0made0in0the0foreign0currency0in0which0the0account0is0opened.

6. Computer0DepartmentThrough0this0department0bank0has0make0its0way0to0enter0in0twenty-first0century.0This0department0is0playing0a0very0important0role0in0making0the0banking0procedures0fasters0and0helping0the0bank0for0providing0the0new0services0to0its0customers.0This0division0provided0the0bank0with0online0branches0system0to0make0the0whole0procedure0fool0proof.Types0of0Branches:There0are0three0types0of0branches0in0all0over0the0Pakistan. Online0BranchesThe0branches,0which0are0directly,0linked0with0the0central0computer0AS-4000through0wide0area0networking0through0fiber0optic0cables.0These0branches0have0dumb0terminal0directly0linked0with0central0computer.0Yet0only0forty-four0branches0all0over0the0Pakistan0are0online.0Out0of0forty-four,0seventeen0are0located0in0Karachi,0seven0are0located0in0Lahore,0and0two0are0located0in0Islamabad0and0two0in0Multan0and0two0in0other0regional0offices. Batch0Branches;The0branches0where0all0transactions0are0carried0out0with0the0computer0based0system0but0these0branches0are0not0connected0to0the0central0computer0with0wide0area0networking.0Batch0branches0are0using0three0types0of0system,0Branch0Back0Office0(BBO)0based0on0FoxPro,0Branch0Automated0System0(BAS)0based0on0UNIX0Branch0Integrated0System0(BIS)0based0on0FoxPro,0in0Karachi0mostly0branches0facing0this0problem.0Now-a-days0efforts0are0under0way0to0convert0all0branches0into0Electronic0Banking0System0(EBS)0which0is0used0by0online0branches0as0this0system0doesn't0require0a0person0to0remaining0sitting0till0the0branch0closed0its0operation0but0the0system0automatically0close0itself0when0the0branch0time0is0over.0The0database0in0head0office0is0also0on0this0system.