fari final internship report

7/27/2019 Fari Final Internship Report

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Internship report

Farzana kausar FMAS

(10012720-036)

1HABIB BANK LIMITED

Executive summary

Banking operations and services are one of the basic needs of an economy.

These includes acceptance of deposits, and payout of advances to individuals

and others at higher rate of interest. Banks performs various different

functions which are directly or indirectly involved in the economic and social

development of the country.

This internship report was great opportunity for me to learn and develop the

management and other skills inside me and to make me enable to work with

any respectable organization which deals with different departments

concerning matters. This report is based on the real facts which I saw closely

and analyzed closely with my bookish knowledge which I got during semester

studies.

My report will throw a light on all the activities which I performed and learned

during the internship period of six weeks which I spent in The HBL.

Knowledge becomes more bona fide when it is performed practically.

Internships can be very helpful for the students to implement their bookishknowledge in pure practical field. It helps the student to analyze the

professional field during his/her studies. University of Gujrat offered

internships to its business students. I joined HBL for internship for 6 weeks i.e.

from August 15, 2012 to September 30, 2012. During my internship I tried my

level best to seek practical knowledge in a professional way.

I have done work in operation department and foreign remittance and learnt

different works. I have learned account opening, foreign remittance, making

vouchers, advances department, how to post bills, Inward and outward

clearing and worked in deposit section too.

I have gained different skills during my internship. These are management

skills and communication skills and many more. And also undertake some

responsibilities like: to obey the supervisor, to keep confidential things within

the boundaries of organization etc.


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2HABIB BANK LIMITED

I have tried to show the performance and working style of those departments

which I could see during those six weeks internship period. After watching the

working of those departments which I worked in and which I could get

information I have also suggested the some suggestions for performance

improvement at the end of the report.


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Internship report

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3HABIB BANK LIMITED

Chapter # 1 introduction

1.1 Introduction to report:

The basic purpose behind the preparation of an internship report is to

make the student job down the experiences of the internship and discuss the

understanding of the operations of the organizations. So, we can work well in

future. For this purpose I did my internship in HBL, Sargodha road Road

Gujrat which was the most feasible being the oldest, reputed and well

established bank, where I can enhance my skills and learn the basics of

business environment. This report is about HBLs products, fields of activities

and its management style.

The results show the progressive image of the HBL bank as compare to the

competitors. Management style is somewhat participative and its culture is

friendly and cooperative. All the employees were extremely cooperative and

accommodating. All the employees under whom I worked were learning from

the experience as well.

1.2 Background of study:

Internship training program during MBA Program is necessary for the

partial fulfillment of the completion of Degree of MBA. It is necessary for me to

complete an internship session of about 6 weeks in some manufacturing or

service industry relevant to my area of interest and specialization. So, I

choose the Banking field because I have the interest in this sector because

my study background is related with this sector.

1.3 Purpose:

The purpose behind choosing the HBL was to enhance my knowledge which I

had learned from my books and find how much it would help me to establish

my career in this field. My basic purpose of the study is to see all the activities

relating to the Bank, and to apply theoretical concepts in practical life.


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Internship report

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5HABIB BANK LIMITED

Chapter # 2 over view of the organization

2.1 Introduction of organization:

A bank is an institution for the custody, loan or exchange of money for

sanctioning credit, for transferring funds by domestic foreign bills of exchange.

It is a pipeline through which currency moves into and out of circulation. As it

is clear from the definition of banking, the main activity or function of banking

is borrowing and lending of money with a margin of gain. However, as far as

the present day banking is concerned, there are a number of different banks,

set up under specific different objectives, performing various functions.

Habib bank is the leader in Pakistans services industry. An extensive network

of 1425 branches is largest network in Pakistan and 55 branches in foreign

countries. HBL is rated AA+ for long term and A1 for its short term. Banking is

the business of providing financial services to customers. The basic services

that a bank is providing are deposits and loans. Key areas of operations

involve product services and offerings in Retail Banking. Habib Bank Limited

has the largest corporate Banking portfolio in Pakistan and has an active

Investment Baking portfolio. Small and Medium Enterprises and Agriculture

lending programs and banking services are offered in not only in urban but

also rural areas.

Our brand:

Our brand identity is the outward expression of what we stand for as an

organization. That is summarized in HBL vision, mission and supported by its

values.

Vision statement:

Enabling people to advance with confidence and success


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Mission statement:

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

shareholders

HBL values:

Our values are the fundamental principles that define our culture and

are brought to life in our attitude and behaviors. It is our values that make us

unique and unmistakable.

Excellence:

This is at the core of everything we do. The markets in which we operate are

becoming increasingly competitive, giving our customers an abundance of

choice. Only through being the very best in terms of the service we offer,

our products and premises can we hope to be successful and grow

Integrity:

We are the leading bank in Pakistan and our success depends upon trust.

Our customers and society in general expect us to possess and

steadfastly adhere to high moral principles and professional standards.

Customer Focus:

We understand fully the needs of our customers and adapt our products and

services to meet these. We always strive to put the satisfaction of our

customers first.

Meritocracy:

We believe in giving opportunities and advantages to our employees on the

basis of their ability. We believe in rewarding achievement and in providing

first-class career opportunities for all.

Progressiveness:

We believe in the advancement of society through the adoption of enlightened

working practices, innovative new products and processes, and a spirit of

enterprise


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7HABIB BANK LIMITED

2.2 History of HBL:

Muhammad Ali Jinnah, Pakistans founding father realized the importance of

financial intermediation while he was campaigning for the creation of separatehomeland for the Muslims of India. He persuaded the Habib family to

establish the Muslim bank that could serve the Indian Muslim community. His

initiative resulted in the creation of Habib bank in 1941 by four Habib brothers

Mr. ahmed Habib, Mr. Dawood Habib, Mr. Muhammad Ali Habib and Mr.

Ghulam Ali Habib with head office in Mumbai and fixed capital of rupees

25000. It was first headed by Mr. Dost Muhammad who was the first general

manager of the bank. On his untimely demise it was succeeded by his

younger brother Mr. Razzaq Muhammad who remained president until the

bank was nationalized. While Mr. Rashid Habib the son of Late Mr. Dawood

Habib was its managing director. Habib bank established its operations in

Pakistan in 1947 and moved its head office to Karachi. Habib bank first

international branch was established in Colombo, Sri Lanka in 1951 and

Habib Bank plaza was built in 1972 to commemorate the banks 25th

anniversary.

HBL was the first commercial bank to be established in Pakistan. Over the

years HBL has grown its branch network and become the largest private

sector bank with over 1450

branches across the country and a customer base exceeding five million

relationships. International operations were expanded to include USA,

Singapore, Oman, Belgium, Seychelles, Maldives and Netherlands. With the

domestic market share of over 40% HBL was nationalized in 1974 and itcontinued to dominate commercial banking sector with a major market share

in inward foreign remittance (55%) and loan to small industries traders and

formers. On 29 December 2003 Pakistans privatization commission

announced that the government of Pakistan had formally granted the Aga

khan fund for economic development (AKFEED) rights to 51% of shareholding

in HBL, against an investment of PKR 22.409 billion (USD 389 million). On


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8HABIB BANK LIMITED

February 26, 2004, management control was handed over to AKFED. The

Board of Directors was reconstituted to have four AKFED nominees, including

the Chairman and the President/CEO and three Government of Pakistan

nominees.

Nationalization:

HBL was nationalized in Zulifiqar Ali Bhutto regime on 1974. Since then, HBL

has dominated the commercial banking market share (55%) through inward

remittances and generous loan schemes for small businesses and farmers.

Factors lead to privatization:

Two main factors that lead to the privatization of HBL were over staffing and

political pressure. Like other government organization HBL also had the

problem of over staffing. In the year 1996 more than 31000 of employees are

working for the HBL. This over staffing caused the shrinkage of profits

because of the salaries and wages payable to the staff that was not needed.

This problem had been the root cause of privatization. HBL policies are highly

influenced by the policies of the government. The economic policies of

Pakistan had trickle down the effect on the policies of the bank and thus the

policies of the bank had to be synchronized with the policies of the

government. Pakistani politics is an unstable arena. Thus there is lack of

consistency. The intent behind the privatization was to make the HBL an

independent organization so that it could function and perform to its maximum

potential.

Privatization:

On December 29, 2003 tha Agha Khan for economic development gave the

highest bid of Rs.22.409 billion for 51% strategic stake and control over the

management in the Habib Bank network. This deemed to be the first

transaction on this large a scale in the short of Pakistan privatization. On

February 26th, 2004 the privatization commission of Pakistan formally handed

over the Habib Bank network to the Agha Khan Fund for Economic

Development (AKFED)


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9HABIB BANK LIMITED

2.3. Nature of the Habib Bank of Pakistan:

HBL was the first commercial bank to be established in Pakistan in

1947. Over the years, the bank has expanded its network and is now ranked

as the private largest private sector bank with over 1450 branches across the

nation. The banking network also boasts about 5 million customer

relationship. The main objective of HBL is to perform the commercial banking

and related services.

HBL basically perform the following function

Accepting deposits of customers on current account, saving account,term deposit

Advancements of loan

Provision of Qarze-e-hasna

Agency functions as colleting cheque on behalf of customer

Transfer of funds from one place to another

Granting of letter of credit

Collection of utility bills

Issuance of traveler cheque

Financing of foreign exchange

Assisting to agriculture

Collection of negotiable instruments

Act as an representative of its customer

Issuing guarantees

Collection of fees and money for people proceeding on Hajj providing

pilgrimage services

Receiving valuables for safe custody

Borrowing money from other banks to arrange finance

2.4 Rewards of HBL:

HBL is very successful & attain many awards. HBL is the leader bank of

Pakistan & it establishes the great name at international level by providing the


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10HABIB BANK LIMITED

vast variety of innovative products & services. The awards which HBL achieve

in the previous five years are as under:

2.4.1. HBL wins best Emerging Bank award in Pakistan for 15th April 2010.

Best Emerging Bank in PakistanGlobal Finance presented HBL with the Best Emerging Market Banks, this

award was conferred on HBL in recognition of its superior performance,

enhanced profitability, expanding asset base, innovative products and

services. Global finance state that the criteria for choosing the winner included

growth in assets, profitability, strategic relationship, customer services,

competitive pricing and innovative products

2.4.2. HBL wins two Global Finance Awards October 06,2012

Best Bank PakistanBest Trade finance provider bank of Pakistan

These two awards were presented to HBL on the occasion of annual meeting

of World Bank and IMF in Washington, D.C. Global Finance presented

banking awards to the top global banks at the ceremony attended by the

senior bank officials. These awards are conferred to HBL in recognition of its

achievements in product delivery and service quality in the markets where it

operates.

2.4.3. HBL receives three Global Finance awards October 06, 2009.

Best Bank PakistanBest Trade finance provider bank of Pakistan

Best Foreign exchange provider PakistanOn the World Bank annual meeting 2009 in Istanbul Global Finance

presented banking awards to the top banks. The awards were received by the

Mr. Sultan Ali Allana chairman of HBL. The criteria for selecting this year

winners had considered both subjective and objective factors. Objective


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criteria include growth in assets, profitability, business development and

product innovation. Subjective criteria included the opinions of equity and

credit rating analyst.

2.4.3. HBL receives the best emerging bank of Pakistan in Asia May 13,

2009.

Best Emerging Bank of PakistanHBL has been selected as the best emerging bank of Pakistan by Global

Finance Magazine. Global finance editor with input from the industry analyst,

corporate executive and banking consultant selected the best emerging bank

in the region and in 20 countries.

2.4.4. HBL among top 500 Global Finance brands March 30, 2009.

Top Banking BrandHBL has been rated as top banking brand in Pakistan by The Baker. The

banker is the worlds premier banking and finance magazine. Read in 150

countries around the world. The Banker teamed up with the Brand Finance,

the leading UK based independent valuation firm, to release its top 500

banking brands for the year 2009.

2.4.5. Most Innovative Global finance award December 06, 2008.

Most Innovative GTFPHBL receives the most innovative Global Trade Finance Program award. The

award was received at the international finance corporation annual trade

conference in Paris where 126 issuing and 145 confirming multinational banks

that were present.

2.4.6. HBL milestone the Busiest brand award December 06, 2008.

Buzziest BrandRelevationInc, a Pakistan based brand development company, carried out a

poll among marketing and advertising representative as well as judges to

select a most active brand in Pakistan. HBL was competing with the strong

consumer brands and got the third position among top five brands in entire.


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2.5. success story:

HBL staff creates Guinness World records March 03, 2012. Employees of

HBL created two Guinness world record at their annual sales conference onSaturday March 3rd. The records include the worlds longest Graffiti scroll

themed upon colors of Pakistan, using spray paint only and the worlds

longest handshake chain of 274 people beating the previous record of 188.

2.6. Product/ services lines:

HBL is providing products and services for its different type of customer

includes individual customer, business customer, and Islamic customer and

customers seeking assurance. The products and services which are providing

by Habib bank of Pakistan are as follows:

2.6.1. Deposits:

HBL is offering different type of accounts

Current account

Saving account Term account

Foreign currency account

2.6.2. Remittances

HBL is offering following kinds of remittance services to its customers:

Demand Drafts

Travelers Cheques

Letter Of Credit

Foreign Remittances

Mail Transfer

Telegraphic Transfer

Pay Order


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2.6.3. Miscellaneous

In addition to all product and services described above, HBL is also providing

following services to it customers.

Lockers

International Banking

Collection of Export Bills

Collection of Local Bills

Government Collections

Utility Bills Collection

Short term investments

Equity investment

2.6.4. Internet Banking:

Electronic MIS reporting through e mail

Viewing of account statement through e banking service

Dedicated customer support officer for query handling

2.6.5. Islamic banking:

HBL is providing Shariah Compliant Banking Products, available throughdedicated Islamic Banking Branches. Each Islamic Banking Branch is fully

equipped to cover all aspects of Islamic financial transactions. In HBL Islamic

Banking is currently providing the Following Functions:

Current account and basic banking account

Acquisition of asset on ijarah

Mudaraba and Musharaka

Liability Products governed by Islamic Laws and principles

2.6.6. Bank assurance:

HBL and Jubilee life insurance Company limited introduce the new products

for the HBL customers

Amaan (Retirement plan)

Tabeer (Child education and marriage program)


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2.6.7. Corporate Advances

HBL is offering its corporate customers the following type of advances:

Cash Finance

Demand Finance

Running Finance

Agriculture finance

2.6.8. Individual advances:

Car loan

Home loan

Salary plus

Personal loan

2.6.9. Online services

ATM

Mobile banking

Call center

2.7. business volume of HBL:

Year 2012 2011 2010 2009 2008

Total Assets 1303602776 1063853648 887052411 820981347 717282010

Deposits 1036505577 875308597 721069137 653452460 572339187

Advances 437235573 416261389 434998560 432283588 435708660

Investments 617240030 399939469 245016986 209421147 127786754

Shareholders'

Equity102566094 93453022 81811716 71235347 61290814

Pre-Tax Profit 26120191 32031561 25057228 19485741 15855194

After-Tax

Profit15927415 20741816 15613054 12298643 10000980


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Earnings Per

Share(Rs.)13.14 18.84 14.17 13.50 10.98

2.8. pest analysis of HBL:

A broad view of market is important when management is interested in

introducing better services for customers. Rapid technological change, global

competition and the diversity of buyers preferences in many markets require

the constant attention of the market vouchers to identify promises business

opportunities, see the shifting requirements of the buyers, evaluate changes

in competitors positioning and guide the choice of which buyers to target and

classify them according to respective segments. Identification of external and

macro factors that influence buyers and thus change the size and composition

of market overtime involves initially building customer profiles. These

influences include:

political and legal environment

economic trends

social cultural environment

technological factors

2.7.1 Political and legal environment

Banks are strongly affected by the political and legal considerations.

This environment is composed of regulatory agencies and government law

that influence and limit various Organizations and individuals. Mostly these

laws create new opportunities for business. Business legislation has mainfollowing purposes

To protect banking companies from unfair competition.

To protect consumers from unfair business practices adopted by

banking companies

To protect the interest of the society from unbridled business behavior.


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2.7.2 Economic trends

A banking market requires better consumer market in volume along

with higher borrowing power. The available borrowing power depends on:

Consumer income

Saving rates

Consumption patrons

Rates of interest

Budget deficit

Exchange rates

Cost of living

Inflation

2.7.3 socio-cultural environment

A society is shaped by beliefs, norms and values. People in a society

consciously and unconsciously interact with:

Themselves

Others

Organization

Society

Nature

Following are the factors which arise because of change in socio-cultural

environment

Consciousness about services

Concern for environment

Improved customer relation

2.7.4 Technological factors

Forces of technological advancement have played the most dramatic

role in shaping the lives of people. The rate of change of technology has


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greatly affected the rate of growth of economy. New technology is creating

deep rooted affects which could be observed in long run. The improvement

techniques involved in on line banking. In brief PEST analysis affects the

overall banking companies and provides us the information about the external

macro condition.


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2.8 organizational hierarchy of organization:

President & ECO

Members of board of directors

Head Of HR Head Of Finance

Vice President

Assistant Vice

Grade 1 Officers

Grade 3 officers

Grade 2 Officers

Clerical staff

Non-clerical staff


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2.8.1 Chain of command:

Chair man

President

Board of directors

Member exectuive board

Regional chief

Zonal chief

Branch manager

Operational manager

Banking staff


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2.9. Number of employees:

HBL is one of the largest bank in Pakistan with over 1400 branches and also

running in abroad. According to survey on HBL there are approximately 17850

employees are working at HBL offices.

2.10. Main offices:

HBL has largest domestic branch network with over 1400 branches and is

present in 25 countries.

Head office:

Habib bank plaza I.I Chundrigar road karacki -75650, Pakistan

Phone#021-32418000 (50 lines)

Fax#021-39217511

Registered Office:

4th floor Habib bank tower Jinnah avenue Islamabad, Pakistan

Phone#051-2872203 & 051-2821183

Fax#051-2872205

2.11. introduction of all departments:

HBL has the following departments

2.11.1 Deposit department

Bank deals in money and they are merely mobilizing funds within the

economy. They borrow from one person and lend to another, the difference

between the rate of borrowing lending forms their spread or gross profit.

Therefore we can rightly state that deposits are the blood of the bank which

causes the body of an institution to get to work. These deposits are liability of

the bank so from point of view of bank we can refer to them as liabilities.


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Types of accounts

Types of accounts are as follows

Curent account

In this type of accounts the client is allowed to deposit or withdraw money as

and when he likes. He may, thus, deposits or withdraws money several times

in a day if he likes.

There is also no restriction of amount to be deposited or withdrawn. However,

there is requirement of minimum balance maintenance of Rs.5000/-. Usually

this type of account is opened by the businessmen. No profit is paid by the

bank and no service charges are deducted by the bank on current deposits

account.

Eligibility:

All Pakistanis Resident/Non-Resident, Individuals (Single-Jointly)

Companies/Firms etc. can open and operate the Account but he

should be a corporate customer.

Any Foreign National Individuals (Single-Jointly) having valid Resident

Pakistan VISA/Work Permit can open and operate the Account.

Profit and loss sharing account

This type of account is for those persons who want to make small

savings'. This type of account is opened with a minimum deposit of Rs. 1000/-

or the amount prescribed from time to time. The profit is paid on these

accounts on the minimum balance during a month for the whole of that month.Zakat & other taxes are deducted as per rules of the government. The

requirements for this account is duly filled prescribed A/C opening FORM,

Photo Copy of National Identity Card (Resident Pakistani), two Passport size

photographs with Signatures/Thumb Impression (Resident Pakistani), Photo

copy of Passport with Page bearing Resident Visa of the Country where

Pakistani Residing, two Passport size photographs and signatures on A/C


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Opening Form for Non-Resident Pakistani with Signatures/Thumb Impression

etc.

PLS term deposit:

A type of term deposit, in which a receipt is issued for varying tenors

ranging of deposit. It is in the form of receipts and profit on these receipts is

paid biannually. These receipts are cashable after expiry of the period for

which they were issued. Different profit rates are applied to different type of

term deposit. It has no maximum limit but not less than 1 month. Account

opening rate is 1000 and the zakat is deducted on the rules and regulation.

Requirements for Purchase of TD:

Duly filled prescribed FORM.

Photo Copy of National Identity Card (Resident Pakistani).

Two Passport size photographs with Signatures/Thumb Impression

(ResidentPakistani).

Photo copy of Passport with Page bearing Resident Visa of the

Country where

Pakistani Residing

Special accounts:

During my internship I also learned account opening procedure in

special cases e.g. blind person account and non-resident person account

Blind person account

HBL also provides facility to blind persons to have an account with

the bank. At HBL blind person can open an account jointly with the normal

person. But if he wants an individual account so he must have an authorized

person with him who can check the signature and amount filled by him. Bank

is not allowed to check the signature and amounts filled by the blind person.

Four attested photographs of blind person also required by the bank.


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Non-resident person account

A person who does not live permanently in Pakistan is called non-

resident person. Documents for such account are the same as other accounts

require the only extra thing is copy of passport so that bank can monitor the

exit and entry date of customer in Pakistan. Customer is required to must

inform the bank before 15 days entering in Pakistan. Bank also sends this

information to state bank of Pakistan who gives instructions regarding

handling of non-resident person accounts.

2.11.2 Remittances department:

As it is clearly depicts from its name, this department is used to remit

amount from one place to another. This department performs following

functions

Intra bank transfer

Interbank transfers

Local fund transfers

Issuance of bankers Cheque

Intra Bank Transfers

When an account holder presents a cheque of another party who is

also the accountholder of same branch, funds are transferred immediate by

using online system and available for usage. This is known as intra Bank

transfer.

Interbank Transfer

When an account holder (may be of same branch but should be of

HBL) presents a cheque of another party (account holder of HBL any other

branch), funds are transferred immediate by using online system and

available for usage. This is known as interbank transfer.


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Local Fund Transfers

If any HBL account holder wants to credit his account without being

physically going to the parent branch, he can transfer funds by LFT.

Remittance department also performs the services of LFT.

Issuance of Bankers Cheque

Bankers Cheque is recently introduced by HBL to replace old concept

of pay order and demand. This step was undertaken to make banking

operations more customer friendly as well as brought simplicity in banks

operations. Earlier Pay Order (PO) was made for local funds movementwhereas Demand Draft (DD) to make payments in outside region. But now for

all customers, bankers cheque is issued. The issuance procedure is same as

earlier. Customer has to fill Remittance form which includes all relevant

information.

2.11.3 Clearing department

Inward clearing

The cheques of bank that enter into the bank daily within the city are

including in it. First of all physical checking is taken place as the related

branch receive any type of clearing check. There should be two days margin

for clearing procedure. These cheques have their vouchers and the amount of

the cheque and voucher should be identical. Than these cheques are

stamped and noted on receiving sheet as well as feed in to the computerized

system.

Outward clearing

The cheques of the other banks send for the clearance. These

cheques are of the other banks. These cheques are sent to the other banks

for clearance through the N.I.F.T. Contras of these cheques is vouchers that

are recorded in the home branch.


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Now a days clearing is being supervised and conducted by a private company

N.I.F.T. (National Institution Funds Transfer)

Intercity clearing:

It includes the intercity clearing, those cheques that are cleared outside the

city.

Others functions are:

Issuance of cheque book

When a person or company opens a count in the bank, and if they want to

credit from their accounts, for this, they need of the cheque book. So they

could be able to credit the needed amount whatever and whenever he/she

wishes. The account holder have to fill the requisition slip for the issuance of

cheque book. The name of the account holder, account no, date, no of

leaves, nature of account and two verified signatures. These signatures are

checked and then another requisite slip prepared by the bank staff send to the

NIFT through the computerization system, and it issues the printed cheque

books after completion of the procedure in two or three days.

Account holder can take the cheque book by singing on the issuance register

or if the absence of the account holder another person could also take the

cheque book only if he/she has authorized signature of the account holder.

Cheque books are feed in the computer system from the requisite slip when

the they are issued so when the cheques are given for the credit/transfer of

amount they could verified. Because of which the chance of fraud does not

exit, neither the cheques could be repeated nor could the invalid cheques be

claimed. They charges are debited from the account of the account holder.

Issuance of ATM cards

Head office issues ATM (Auto Teller Machine) cards with their PIN

(Personal Identification Number) codes and when the customer claims for

their ATM card they are


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Checked from the list that is also issued from the head office, and the claim is

checked from the list and if the name is found than the cards are issued by

taking a signature and their PIN codes are given to them by taking signatures

on their ATM card forms. The ATM card has been activated by the number

provided at or with the specific card. The account holder selects the PIN code

by him/herself through phone.

2.11.4 ADVANCES / CREDIT:

This department deals with the approval of different kinds of loans to

different business entities. The loans, which are being approved by the

department, are kept with some securities such as bonds, properties and any

other type of asset, which is equally valuable or more than this as a

guarantee. Every branch has its own limit, if the amount of loans is within the

limit of the branch then it is being approved by the branch but if the amount of

loan is exceeding the limit then it has to make it approved by the head office.

In this case the branch stored all the required papers and sent them to the

head office for necessary action. If the head office approved the loan then

mostly the period contains a year. And if the party requires more loan than

after a year the loan has been re-approved required that they should have the

limit. In case if the head office do not approve the loans then the return letter

came back with the reasons of not approval of loan and if the reasons have

been made approved by the concerned party then it could be sent again for

approval. This whole process is recorded in the back remain with the bank

until the party has not refunded all the amount of loan and bank has the

authority to liquidate those assets for preventing it from loss.

Types of Advances:

The bank offer clean advances against promissory notes etc and the

secured advances against different types of tangible and marketable

securities. The advances department lends money against different securities

for the commercial and personal purposes.


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Commercial Loans

Personal Loans

2.12. Comments on organizational structure

The organizational structure of HBL is decentralized, growth Oriented and

participative. Basic aim of the management is to provide a place which is

much feasible and comfortable for employees of the bank.

HBL has created a challenging environment that encourages creativity and

commitment. Dynamic culture offers diverse growth opportunities across

Pakistan and in many other countries around the world.

HBL fosters a work environment where employees can realize their potential

whether locally or in the international arena. Thus, enable the employees to

achieve their professional goals while keeping in mind with the banks overall

objectives.


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Chapter # 3 work done by me

3.1 Branch introduction:

Habib Bank limited

Branch name HBL Naarowali Branch

Branch code 1170

Branch address Naarowali Branch Sargodha road Gujrat

Contact numbers 053-3512380, 053-3511722

3.2 Period of internship:

I worked for six months internship at HBL Naarowali branch Sargodha

road Gujrat starting from 15 Aug., 2012 to 30 Sep, 2012.

3.3 Supervisors:

I worked under the supervision of branch staff including manager sir

Tahir Mehmood, operational manager sir Ghazanfar Ali and assistant

manager miss Samina Munawar and CSO miss Rabbia Nasim.


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3.4 Employees description in HBL Naarowali branch Gujrat:

NameP.

Numbers

Designation Given tasks

Dr. Tahir

Mehmood

Qureshi

257411Branch

manager

1. Management

2. Supervision of all depts.

3. Account opening

4. Developing new

relationships

5. Ensuring growth of branch

6. Customers interviewsregarding KYC

Ch.Ghazanfar

Ali304001

Operational

manager

1. Supervision of daily

operations

2. Day end balancing

3. Account opening

4. Supervision of specifictransactions

5. cash keys

6. locker operations

7. dealing with NBP

8. cheques clearing

Miss.Samina

Munawar442202

Assistant

manager

1. deposits

2. signing of cheques

3. voucher checking

4. cheques book issues

5. handling SSC cards box

6. passing of cheques and

drafts

7. ATM cards issuance


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8. remittances handling

Muhammad

Nazir274589

Advances

incharge

1. credit department issues

2. renewal of limits

3. business development

4. any duty assigned by OM

5. SBP returns

Bilal Iqbal 485587 Credit officer1. Deals with credit issues

Qadeer Abbas 489426 Teller

1. Cash transactions2. Posting of vouchers

3. Maintain record of utility

bills

4. Any duty assigned by OM

Ali Hassan 483829 Teller1. Collection of utility bills

Rabbia Nasim Temporarily CSO

1. Information regarding bank

deposits, products and

schemes.

2. Any other duty assigned by

OM.


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3.5 Weekly time tables:

3.5.1. 1stweek

Department of cash & CSO (customer service officer)

Supervised by Miss. Rabbia Nasim

Date Activities

15/08/2012 Learned to deal with customers

16/08/2012Learned about how to fill deposit slips & cheques

Requirements for cheques and deposit slips

17/08/2012Online Remittances transfer

Requirements for transfers

23/08/2012Attended phone calls and customer inquiries

Provided information to customers

24/08/2012Collection of utility bills and cash counting

Prepared Bills scroll form

Supervisors signature

____________________


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3.5.2. 2nd week

Account opening/deposits department

Supervised by Miss. Samina Munawar

Date Activities

27/08/2012Learned about different types of accounts

Complete knowledge of documents required for accounts

28/08/2012 Learned about information for opening different types of

accounts

29/08/2012How an account opening form is filled

Requirements for account opening

30/08/2012Opening of account on the system

How to use HBL system

31/08/2012Issuance of cheque book

Entries of cheque books in computer


____________________


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3.5.3. 3rd week

Account opening/deposits department

Supervised by Sir. Ghazanfar

Date Activities

03/09/2012

The 1st day of 2nd week I Learned about different types

of clearing

1. Inward clearing2. Outward clearing

04/09/2012 Started with inward clearing section

05/09/2012 Worked with outward clearing section

06/09/2012 Learned about intercity clearing

07/09/2012

Learned about normal clearing

Entries in clearing register

Posting in computer


____________________


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3.5.4. 4th week

Remittance department


Date Activities

10/09/2012

Learned about different types of remittances

1. Inter bank transfer

2. Intra bank transfer3. Demand draft

4. Pay order

5. Bankers cheque

11/09/2012 Started with inter bank transfer and intra bank transfer

12/09/2012Learned about local fund transfer

Issued deposit slips

13/09/2012 Learned about Issuance of banker cheque

14/09/2012

Worked as remittance officer

Received forms of different remittances


____________________


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3.5.5. 5th week

Advances/loans department

Supervised by sir. Muhammad Nazir

Date Activities

17/09/2012 In this week I learned about basic functions of

department. Learned about different types of loans

18/09/2012 Learned different types of commercial loans i.e.

19/09/2012

How to check credit worthiness of customers

Calculation of interest rates

Learned procedure used for sanction of commercial

loans

20/09/2012Learned about personal loans

Requirements necessary for loans

21/09/2012

Prepared Borrowers basic fact sheet

Prepared credit proposal formats


____________________


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3.5.6. 6th week

General banking department


Date Activities

24/09/2012I learned about general banking activities

Issued cheque books, deposit slips, draw cheques

25/09/2012Learned about ATM facility, requirement for ATM facility

Filled ATM application form

26/09/2012

Got complete knowledge of locker facility provided by

bank to its customers

Worked with clearing department

27/09/2012I did audit of accounts register

Practiced account opening

28/09/2012 Worked with foreign exchange department


____________________


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3.6. Detail description of departments with activites:

3.6.1. Details of 1st week activities

1st week I started work with CSO and learned about activities mentioned in

above table.

At the ist day I learned how to deal with customers. Customers are dealt with

courtesy and high patiences. as soon customer arrive at the CSO desk there

should be quick response by the customer service officer with courtesy. With

courtesy large number of customers increase and they become loyal

customers.

When any customer wants to deposit amount in their accounts through cash

or cheque one deposit slip is used for this purpose. To deposit the cash

amount in the account deposit slip must be filled by these items

Date

Title of account

Account number

Total amount in figures and words

Signature of depositor

If customer want to deposit amount through cheque, cheque number and the

name of bank from which the amount is credited to the customers account is

also mentioned on the deposit slip it is not necessary in case of cash deposit.

Banks stamp is also necessary on the deposit slip so that the proof could be

maintained.

When customers want to withdraw amounts from their accounts they use

cheques or ATM cards for this purpose. If they use cheques then cheque

must be filled. On the cheque following items are mentioned


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Date

Amount in words and figures

Type of cheque whether it is order cheque, self or crossed cheque

Signature of account holder

Signature of authorized officer

Signature admitted stamp

I also learned about facility for online funds transfer. Funds can be transferred

through cash and cheques .there are different charges for online transfer

through cheques and cash. For online cash transfer Rs. 290 are charged to

customers and through cheque transfer Rs. 150 are charged to thecustomers. Only HBL to HBL funds are transferred. An application form is

used which is filled and require the following information

Date

type of currency

Amount to be transferred (in figures and words)

Beneficiary details (the person to whom the funds are transferred

including his/her account number, city, branch name & code, address,)

Applicants details (the person who transfer the funds including

address, CNIC number, date of birth , relationship with beneficiary )

Applicants signatures

Teller transfers the funds and a receipt is given to the customer for proof.CSO

receives calls of customers and other phone calls regarding any information.

Customers mostly make calls to ask about their account balances and online

transactions.

HBL also collects utility bills on behalf of WAPDA, sui gas and PTCL by

charging fee for such service. Customer pays the cash and bill to the teller

who puts


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This account is opened with minimum deposit of Rs.1000/- , this limit may be

changed from time to time. Zakat and taxes are also deducted according to

rules set by government.

Term deposit account

These accounts are opened for a certain time period. Customer is not

allowed to withdraw amounts before maturity if he/she does so penalty is

charged for such action. Bank usually issues receipt for specific time period

ranging of deposits and profit is paid on such receipts semiannually and these

receipts are cashed only expiry of time period. There are different rates of

return on deposits depending upon size of deposits. There is no restriction on

maximum time limit but it should not less than one month.

Eligible criteria for accounts

All individuals, companies and firms etc. either single or jointly can

open and operate current account

Foreigners with valid Pakistani visa and work permit either singly or

joint can also open and operate this account

How to open an account

Before opening an account I observed that HBL like all other banks

ensures that whether the person who is going to open the account is desirable

or not. Then HBL ensures the customer integrity, reliability, occupation and

business by the person who introduce the new customer at the time of

account opening. Customer is asked why he/she is going to open the account

and what will be the source of fund to operate the account. This initial

investigation is conducted to avoid frauds or any other serious consequences

which may results due to negligence of bank.

Procedure and requirements for account opening:

I learned when a customer wants to open an account he/she is

given an application form. Customer is asked to fill all necessary information


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on the form required by the bank. Application form requires the following

information

Title of account

Full name of applicant

Type of account

Initial deposit

Type of currency

CNIC number

Telephone number

Complete address Occupation and business

Next of kin

CNIC and telephone number of next of kin

Special restrictions regarding account

Applicants signature

Required documents

Following documents are required for opening of account

Duly filled application form

Three Attested photo copies of CNIC

Signature specimen card(SSC)

CD 50 form (in case if the customer is uneducated )

Passport size photos of applicant (in case customer use thumb

impression)

Passport of account holder, director, proprietor if the case may be

Registration certificate number in case of sole proprietors account

In case of company

If company opens an account with HBL it must submits the following

documents


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Certified true copy of the Memorandum and Articles of Association of

the company.

Certified true copy of the resolution of the board of directors / managing

committee / governing body regarding conduct of the account.

Certified list containing names and signatures of the directors / office

bearers.

Certified true copy of the certificate of incorporation or registration.

Certified true copy of the certificate of commencement of business (in

case of public limited companies).

Balance Sheet

I.D. Card copy of each director

Original is also enclosed for inspection and return

List of persons authorized to operate the account.

Power of Attorney in favor of the person opening account.

In case of partnership firm

Information which is required to be submitted to HBL by a partnership firm in

this case is as follows:

Full Names

Address

Specimen of signatures of the partners

Certified true copy of partnership deed

Registration No. if the Partnership is registered

Opening of account on HBL system

I also learned how to open account on the HBL computer system. After all the

paper requirements fulfilled account is opened on the system. The system

used by HBL called MISYS. For every type of account the bank officer has to

go with the following windows


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ANC (add new customer)

CIM (customer additional information maintained)

CAA (customer account address)

OCA (open customer new account)

KYC (know your customer)

In the first window a secret code/customer number and 14 digit account

number is allotted to account holder.Ist four digits represents the branch code

in which account is maintained, next eight digits are customers account serial

number and last two digits represent type of account. In CIM particulars of

account holder are maintained e.g. name, CNIC number, next of kin

information etc. In CAA customer address and phone number is added. In

OCA the account number and customer secret number is added and account

is opened. In the last ZYC window manager verify all the customer particulars.

I also opened many individual accounts on the system under supervision.

Issuance of cheque book to new customer

When a new customer opens his/her new account with the HBL he/she

is instructed to come after two days when account activation will be confirmed

by head office for requisition of cheque book. After two days of account

opening customer is given CBR (cheque book requisition slip) and applies for

cheque book. This slip consists of two parts. Customer fill the slip one part of

slip is given to the customer so he can bring this with him/her when he is

informed that her cheque book has arrived in the bank. Other part of slip is

held by the bank and sent to head office for cheque book. Information which

the customer is asked to fill are as follows


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Branch name

Account number

Account title

Date

Account type (saving, current etc.)

Currency

Cheque book type (25 leaves, 50 leaves etc.)

Collection mode of cheque book(self, authorized representative, on

account address)


The bank portion of slip required the following information

Branch

Date of request

Account number

Account title

Signature of bank officer

Customer is instructed to collect his/her cheque book after 3 working days of

bank.

Issuance of cheque book to existing customer

Existing account holder is instructed that he must apply for cheque book

before ending of his/her cheque book. The requisition slip for these customers

is not same as new customer requisition slip. Their old cheque book contains

CBR for new

cheque book. On this slip only account title, account number and signature of

applicant are required. Banks keeps this slip and sends this slip to head

office. Bank also charges fee for cheque book. There are different charges for

different number of leaves. Rs. 150 are charged for cheque book containing

25 leaves, Rs. 300 are charged for cheque book containing 50 leaves. More

than 50 leaves cheque books are also issued on customer demand.


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Entries of cheque books in the computer

When head office send cheque books of customers to the bank the bank

officer make entries of cheque books in the computer for record. Purpose of

entries is to easily locate the cheque book when customer comes to collect

their cheque books and to maintain record for proof that customer has

collected the cheque book.

Serial

No.

Account

title

Account

numberDate

Signature of

applicant

Signature

of officer

2130 ABC 117079001201 _ _ _

2131 XYZ 117079003203 _ _ _

When customer collects his/her cheque book he signs in the applicants

signature column and also mentions date of collection. Officer verified

customers signature and issues cheque book. Bank officer enters the serial

number of cheque leaves to the account of account holder and confirms it by

pressing F12 key and then enter key. Now customer can use new cheque

book.

3.6.3 Detail of 3rd week activities:

3rd week I started work with clearing department. 1st of all I

learned about different types of clearing.

Clearing:

HBL like other banks performs two functions on behalf of its customers i.e.

payment and collection function through crossed cheques. This whole

process is carried down in the clearing department of the bank. Clearing

department of any bank is the place where banks settle down their receipts

and payments of cheques that they have drawn on each other. When

customer deposits cheque of another bank he/she use the bank for collection


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of payment. When HBL account holder gives cheque to another party who is

account holder of another bank he/she use the bank for payment of cheque.

There are two types of clearing

Inward clearing

Outward clearing

Inward clearing:

Inward clearing means those cheques drawn by the HBL account

holders to other parties for the purpose of payment to related parties. Bank

officer debits the account of customer with the same amount written on thecheque and credits the account of the presenter with the same amount. The

officer must have to check the following


Balance in account

Discharge stamp

Clearing stamp

Clearing date

Crossing of cheque

Signature of drawer bank at the back side of cheque

Outward clearing:

When outside parties draw cheque in favor of HBL accountholders,

they deposit these cheques with the bank along with the deposit slip. On the

deposit slip it is necessary to mention these information

Title of account

Amount in Rs. And figures

Cheque number

Drawee bank

Account number



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Cheque is attached with deposit slip and different stamps are put on the front

and back side of cheque. These include

Crossing stamp (front of cheque)

Clearing stamp (front of cheque)

Discharge stamp (back of cheque along with the account number of

collecting party)

After all stamps, these cheques are sent to the clearing department of the

bank. Bank officer maintains a clearing register in which he records the

following information

Title of account holder

Amount mentioned on each cheque

Branch name

Name of bank on whom cheque is drawn

Cheque number

It is in tabular form shown as follows

Title of party Branch nameCheque

numberDrawee bank Amount Rs.

ABC HBL 0091234 MCB 100,000

XYZ HBL 0096788 UBL 2,50,000

Total 3,50,000

Clearing department sent these cheques along with the add list to related

banks for collection. Cheques are sent through NIFT (National institutional

facilitation technologies (private) limited). A representative of NIFT comes

daily after the banking hours. When other banks realized cheques HBL credits

the accounts of their customers. But in case of cheque return the account is

again debited by the bank.


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Cheque return memo:

If cheques are not passed by other banks in outward clearing case

and by HBL in inward clearing case cheques are returned with the cheque

return memo on which following information are mentioned

Branch

Date

Cheque number

Amount Rs.

Drawn on savings/current A/C No.

Returned Un-paid for reason No.

There are 22 reasons mentioned on the cheque return memo e.g. funds

insufficient, cheque mutilated, not drawn on us, account closed etc.

authorized officer signs at the bottom of this memo. An entry is also made in

the inward and outward return clearing register to maintain record for proof

purpose.

For collection purpose there are again two types of clearing

Normal clearing

Intercity clearing

Normal clearing:

When cheques are sent for collection within the city it is called normal

clearing. All the instruments with the add list and normal clearing voucher are

dispatched.

Intercity clearing:

It is special type of clearing instead of normal clearing. When cheques are

sent for collection to other cities e.g. Lahore, Islamabad it requires intercity

clearing. A separate record for intercity clearing is also maintained and special

intercity clearing


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stamp is used for this purpose. Intercity clearing voucher is used on which the

branch name, total No. of instruments, total amount, date, signature are

mentioned. NIFT provide a special envelope to the main branch for this

clearing on which address for each instrument is mentioned. Cheques are

usually cleared on the third day.

Posting of clearing:

After all the paper work and entries in registers I learned how to do posting of

clearing on the system of HBL. Officer has to go the two windows. The 1st

window appears by entering the account number of customer. In the 2nd

window officer enters the transaction code, type of currency, amount to be

debited or credited and cheque serial number is entered. After entering all

these information verification is made by pressing F5 key. And at the last

account is debited or credited by pressing Enter key.

3.6.4.Detail of 4thactivities:

As the name suggest this department remit or transfers the amount from

one branch to another or from one place to another. Transfer of funds may be

of two types

Inter bank transfer

Intra bank transfer

Inter bank transfer:

When the account holder of same branch or another branch but must be

of HBL transfers amount to other account holder of another branch of HBL,this transfer is called inter bank transfer of funds. Here both account holders

are customer of HBL but they have their accounts in different branches of

HBL. Funds are transferred online.


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Intra bank transfer:

Transfer of funds within the same branch by one account holder to

another using online system is called inter bank transfer of funds. Here both

parties relates to the same branch of HBL.

Funds can be transferred by using following instruments

LFT (local fund transfer)

Demand draft

Pay order

Bankers cheque

LFT (local fund transfer):

I also learned about facility for online funds transfer. Funds can be transferred

through cash and cheques .there are different charges for online transfer

through cheques and cash. For online cash transfer Rs. 290 are charged to

customers and through cheque transfer Rs. 150 are charged to the

customers. Only HBL to HBL funds are transferred. An application form is

used which is filled and require the following information

Date

type of currency

Amount to be transferred (in figures and words)

Beneficiary details (the person to whom the funds are transferred

including his/her account number, city, branch name & code, address,)

Applicants details (the person who transfer the funds including

address, CNIC number, date of birth , relationship with beneficiary )

Applicants signatures

Teller transfers the funds and a receipt is given to the customer for proof.

Cost memorandum

Receipt given to customer is called cost memorandum following information

are written on this


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Date

Name of applicant

Name of beneficiary

Total amount

Issuance of bankers cheque

Demand draft and pay order were used to transfer funds but now HBL

replaces the demand draft and pay order with bankers cheque. Bank issues

bankers cheque

to secure the customers for loss of theft of cheques and cash. It is not

necessary that customer must hold account with the bank. Funds are

transferred bank to bank. it is secure than cheque in the sense that cheques

returned dishonored but in case of bankers cheque it cannot returned

dishonored the amount is transferred in the bank account which is ultimately

given to customers. Customer makes payment in cash to the bank and fills

online application form. Bankers cheque contains the following information

Date

Name of payee

Place

Amount

Signature and stamp by officer

Payee represents it for collection of funds.

3.6.5. Detail of 5th week activities:

HBL like other banks grants loans to their customers to meet their

financing needs. Bank sanction loans against fixed payments. Basically HBL

provides two types of loans

Commercial loans

Personal loans


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Commercial loans:

Loans granted for business purposes are called commercial loans.

Commercial loans are subdivided into three categories

Business loans

Seasonal loans

Agricultural loans

Business loans:

Business loans are of two types 1) running finance 2) demand finance

1) Running finance:

Customers require these loans to meet their short term needs or to meet

working capital needs for their business. These loans are usually granted for

one year. Running finance may be secured or unsecured.

2) Demand finance:

These loans are made available to customers against any collateral or

hypothecation of goods. These are usually long term loans and covers more

than one year time period. Demand finance may be secured against fixed

deposits of customers. Under fixed deposit procedure customer cannot use

his fixed deposit and interest rate on these loans is usually 12%. If customer

withdraws amounts before time period then interest rate is given on the total

time period for which deposit is made by the bank.

Seasonal loans:

Seasonal loans are granted for specific season e.g. in the season of rice

and cotton. The time period for such loans may be of 240 days, 6 months and

8 months.


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Agricultural finance/ loans:

These loans are granted to facilitate farmers and land lords for agricultural

purposes. These loans include

Production loans (to grow products and for seed purposes)

Agricultural development loans (long term loans e.g. someone wants to

develop dairy farm/ tube well)

Agricultural revolving (started for 3 years and renew every year )

Interest rate on loans:

Interest rate on loans is fixed by state bank of Pakistan and this rate isknown as KIBOR (Karachi interbank offered rate). Interest rate can be

variable and fixed as

well. In case of variable rate, interest rate is changed after every quarter but

when interest rate is fixed then throughout the quarter it remains constant.

Only KIBOR rate is changed.

Calculation of interest payment:

Formula for calculation of interest payment is given below

= actual amount * interest rate * time period / 100

Procedure for sanction of commercial loans:

Procedure for commercial loans has the following steps

Relation development

Checking credit worthiness of customer (verbal as well as approved)

Credit score card

Application form

Basic fact sheet of applicant

Preparation of different document

Credit proposal format/ limits


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Relation development:

Relation development is necessary for every type of loan because HBL

provides loans only if the customer have an account with the bank. If borrower

have no account with the bank then it is necessary that any other customer of

bank introduce the loan applicant and must open new account with the bank.

Credit worthiness of applicant:

In this step credit worthiness of applicant is verified by examining 5 cs i.e.

Capital

Capacity

Collateral

Character

HBL Credit score card:

HBL provide credit score card to check credit worthiness of loan applicants.

Customer is judged on different variables. Each variable is assigned different

values depending upon the variables acceptance criteria. At the end total

score is calculated and if this score is within the range of banks benchmark

score applicant is awarded with loan otherwise not. Format of credit score

model is as follows


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Factor/

Variable

Max

Points

Points

scoredRanges

Relation

With

HBL

20 15More than 5

years

20

Between 3-5years

15

Between 1-3Years

10

Less

than 1

year

5

No relationship

1

Payment

History10 7

Payments

made in 15

days

7

Payments

made in 30

days

3

_ _ _

ECIB 20 12Excellent

12

Good

5

Normal

3_ _

Primarysecurity

50 25

Mortgage of

self property

25

Mortgage of

partial

property

15

Mortgage of

rented

property

10

_ _

Total

score100 59

Factors include in the above table are not the final list on which the

customers credit worthiness is checked. There can be number of variables

that can be used for this purpose.

Application form:

After checking the credit worthiness of customer he is asked to fill the loan

application form in which he applies for the loan.

Basic fact sheet of applicant:

Basic fact sheet of applicant requires the following information

Name of applicant

Address, phone number, CNIC no., national tax number

References

Nature of business/profession

Purpose of loan


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Daily business sales

Details of payment if term based

Existing limits and status

After preparation of basic fact sheet it is sent to CIB (credit investigation

bureau) for verification. CIB verifies whether information mentioned on basic

fact sheet are true or not. This fact sheet remains confidential.

Preparation of different documents:

In this step different documents are prepared that are necessary for

sanction of loans these documents may include

Authority of encashment

If loan is secured against any property applicant gives authority to bank

that in case of default bank can sold this property and recover his amount,

any excess will be returned to the applicant. He/she signed this document.

Letter of owner ship

Letter of owner ship is also prepared if the loan is pledged against any

property in which applicant confirms ownership of bank on the pledged

property that in case of default bank will be the owner of this property.

LAP (loan application form for all types of families)

In this form applicant is asked to provide the following information

Credit facilities being availed from other being availed from other banks

Any present or past litigation

Any rescheduling or restructuring in present or past

Net profit for last 3 years

Utilization of loans


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Credit proposal format/limit:

After going through all mentioned steps officer make credit proposal format

in which he include different information which are gathered from above steps.

This format includes the following contents

Nature of proposal

In this head officer mentions whether the nature of proposal is fresh or

annual approval. Type of customer fresh/ existing, legal status (public

company, proprietorship,), and line of business is also mentioned.

Type of facilities and purpose

Type of loan whether it is running finance, demand finance, agri- finance

or seasonal finance and also the purpose of loan is also mentioned.

Compliance to product parameters

In this section customer particulars such as age, collateral, residency, CIB

confirmation, securities face value, encashment value, conversion rate

presently or proposed, relation with other banks are mentioned. It is also

confirmed whether the collateral meets the security acceptance criteria.

Approval from officers

In this section two authorized officer of the HBL approves the proposal

with signature and stamp.

Personal loans:

HBL also provides personal loans to households. Customers use the loans

to meet their living expenses. In these loans no collateral or mortgage of any

property is required. Any salaried or other person can get these loans. In case

of salary account salary slip or appointment letter is required. 10% tax is also

deducted from the salary account. These loans granted from Rs. 1 to

10,00,000. These loans may include


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Car finance

Credit card

Demand finance

Personal finance

3.6.6. Detail of 6th week activities:

In the 6th week I started work with general banking department. I

learned about issuance of cheque book to existing and new customers.

ATM facility of HBL:

HBL also provides ATM facility to its customers. Head office issues theATM card but request is made through the branch in which customer holds its

account. When customer wants to avail ATM facility it is necessary to fill the

application form. Application form requires the following information

Title of account

ATM card title (the name customer wants to show on the ATM card)

Mothers name

Date of birth

Place of birth

Occupation/business

Email address (optional)

Phone number

CNIC number

Account number

Address Instructions about jointly operation of ATM

Signature of applicant

Signature of authorized officer

Bank sends this application form to the head office and customer is told to

collect ATM card after 15 working days of bank. Head office sends ATM card

to the bank if customer mentions the address of bank on the application form.


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Banks issues this card after taking the CNIC copy and signature of customer

for proof that customer

has collect his/her ATM card. Customer itself activates his card from the head

office after providing relevant information asked by the head office.

Cancellation of ATM card

It is necessary to cancel the ATM card in the following situations

Mutilated ATM card

If card has stolen

When customer forgot PIN number

Card captured by machine and has expired

On the request of customer

Locker facility

HBL also provides locker facility to its customer. Lockers are of different types

and have different charges depending upon their size. Locker can be

operated either singly or jointly. The size can be small, medium and large.

Procedure is as follows

Customer must holds an account with the bank

Must fill the locker application form

Authorized officer of bank checks and verify the form

CNIC copy is kept by the bank

Key is provided to the customer

Master key is held with the bank and whenever customer wants to operate thelocker he firstly requires the master key. Annual charges are charged to

customer and when charges become due customers account is debited with

the same amount of charges.


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Audit of accounts register

I also did the audit of accounts register. Audit is necessary because

inspection team from head office verifies that all accounts are opened

according to the procedure. In audit of accounts register I checked the

following things

Whether ZYC(know your customer) attached to the form

CNIC copies of applicants

All stamps necessary for approval of information

Signature of authorized officers

Signature of manager

Necessary documents

If there is any mistake or missing documents I corrected those mistakes and

attached all documents with the forms and completed the accounts register. In

this week I again practiced with account opening department and opened

accounts under supervision.

Foreign exchange department

I worked with foreign exchange department and learned about different

types of letter of credit. Foreign exchange department deals with imports and

exports of goods. Import and export of goods require issuance of letter credit.

Letter of credit is the document which is issued by the bank to ensure the

payment. Customer fills the form which is an agreement between the bank

and customer on the basis of which L/C is opened this form contains the

following information

Name, address of importer and exporter

Terms and conditions of credit

Description of goods to be imported

Amount in foreign currency

Insurance policy note with the name of insurance company


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Date of shipment

Port and discharge of loading

Mode of payment

Foreign bank charges

Import registration number

Any other required documents

Documents required for L/C

Bank requires the following documents

Purchase order/ Performa invoice

Insurance policy note

Import license

I form

Approval of L/C

After proper scrutiny banks send application form along with all the

documents to the corporate head for approval. After approval from corporate

head bank opens letter of credit in favor of customer. Opening L/C is a long

process and takes many days.

.


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Chapter # 4 learning summary

4.1. Learning summary:

I did my internship at HBL Naarowali branch Sargodha road Gujrat.

HBL is one of the leading banks in the banking sector. HBL is growing rapidly

since many years because of its good will and good financial health.

It was a great experience for me to work with HBL team during my internship.

This internship not only enhanced my skills and qualification but it also

broadened my vision about implications of my future plans. I got number of

skills and capabilities during this internship program some of these are as

follows

First of all it enhanced my confidence level

I got great communication skills

I learned how to work with teams (team work)

Enhanced good judgment

Power of decision making. I learned how good decisions are made in

critical situations.

Entrepreneurial skills (how to take risks and how to manage them)

I also learned how to maintain good customer relationship.

Most important thing which I learned during my internship is the

emotional intelligence which taught me how to behave and control

myself in different situations.

It helped to improve my team work and leader ship skills

I got technical skills

Initiative

Learned how to lead people (leader ship skills)

It improved my sense of humor

Planninh skills


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Developed worked ethichs and habits

It enhanced my knowledge about banking sector

Improved my personality

Adaptability (cooperation with others and adapting changes)

Computer skills

Improvement in working habits

Achieved CA in interview process

During my internship I assigned different responsibilities such as attending

customers, issuance of deposit slips, accounts opening, clearing of cheques,

issuance of cheque books, preparation of credit proposals etc. these tasks

made me responsible. Internship will help me in my future career as I worked

on different positions such as worked as remittance officer, as credit officer,

as CSO, as remittance officer this helped me to recognize which position

suites me best and at which position I can perform easily. It will also help me

in future as all organizations demand some experience of job and having

internship experience I can easily get job in any sector including banking

sector. In this regard internship will provide career growth in future. It provided

me realistic approach for comparing top career alternatives and insights about

what can be successful in this field for me. It also provided me network of

contacts in the professional field and in the related industry. Today job

markets have become more competent and require employees with

competencies and skills which differentiate them from others and with having

12internship experience it may provide me competitive edge on others and

can find employment more easily. It provided with opportunities to decide

what I want to do in my career in terms of my interest concerns. It developed

different interests regarding different positions in me. So it can be said

internship assists in future career decisions and career development.

Ideally internships provide an internee with working experience which may

directly relates with the internees major subjects. As I am student of MBA

with specialization in banking and finance so this internship program helped

me a lot in relating my class knowledge and its practical implication. In class I


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