In the name of Allah

The most beneficent, the most merciful Let man consider his food How we pour water in shower They split the earth in cliffs And cause the grain to grain to grow there in And grapes and green fodder And olive tree and palm And garden Close if thick foliage And fruits and grasses Provision for your and your cattle (Surah Al Abbas)

ACKNOWLEDGEMENT

I thanks to ALLAH Almighty, the most beneficent and merciful to everyone, who gave me ability and courage to successful, complete this work, because I am nothing without his blessings for me. I wish to express my love and obliged for my Parents for all those nights he spent praying for my mission, and me. First and foremost, we would like to thank to my supervisor of this project, Lecturer Mr. Majid Aleem for the valuable guidance and advice. He inspired us greatly to work in this project. His willingness to motivate us contributed tremendously to our project. We would like to thank him for showing us some examples that related to the topic of our project. Besides, we would like to thank the authority of Bahria University for providing us with a good environment and facilities to complete this project.

INTRODUCTION:
HBL was the first commercial bank to be established in Pakistan in 1947. Over the years, HBL has grown its branch network and become the largest private sector in banking with over 1450 branches across the country and customer base exceeding 5 Million relationships The Government of Pakistan privatized HBL in 2004 through which (Aga Khan Fund for Economic Development) AKFED acquired 51% of the Bank's shareholding and management control. With a presence in 25 countries, subsidiaries in Hong Kong and the UK, affiliates in Nepal, Nigeria, Kenya and Kyrgyzstan and rep offices in Iran and China, HBL is also the largest domestic multinational. The Bank is expanding its presence in principal international markets including the UK, UAE, South and Central Asia, Africa and the Far East.
Key areas of operations encompass product offerings and services in Retail and Consumer Banking. HBL has the largest Corporate Banking portfolio in the country with an active Investment Banking arm. SME and Agriculture lending programs and banking services are offered in urban and rural centers

History:
HBL at its present state has a long and rich history of deeds and sacrifices. All this has been possible on the account of sustained efforts. Habib Bank limited was firstly inaugurated by Mr Ismail Habib (late) on August 25, 1941 at Bombay.The first branch of HBL started functioning on 30th August, 1941 at Muhammad Ali Road Bombay, where Quaid-e-Azam Muhammad Ali Jinnah first of all opened his personal account. At the time of its inception, the Bank's total paid up capital was Rs.2.5 million amd increase the business in few years. In 1942, on the desire of Quaid-e-Azam, Habib family migrated to Pakistan and later on shifted the Bank's Head Office from Bombay to Karachi on 7th August, 1947 just one week prior to independence, to play its important role in the development of this newly born country.

The first prime minister of Pakistan Quaid-e-Millat Liaqat Ali Khan, on the independence day of Pakistan (August 14, 1947) appreciated the service of the bank in these words. I wish every success to HBL and hope that it will continue to play an important and useful role in the industrial and commercial life of the Muslim nation
In association with HBL, the Govt. sponsored Pakistan Finance Corporation Limited for financing of cotton. The Bank helped handsomely in the construction of WARSAK DAM PROJECT, WAPDA, & K.D.A. by provided finance and other facilities. HBL 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 continued to dominate the commercial banking sector with a major market share in inward foreign remittances (55%) and loans to small industries, traders and farmers. International operations were expanded to include the USA, Singapore, Oman, Belgium, Seychelles and Maldives and the Netherlands. With a domestic market share of over 40%, HBL was nationalized in 1974 and it continued to dominate the commercial banking sector with a major market share in inward foreign remittances (55%) and loans to small industries, traders and farmers. International operations were expanded to include the USA, Singapore, Oman, Belgium, Seychelles and Maldives and the Netherlands. On June 13, 2002 Pakistan's Privatization Commission announced that the Government of Pakistan had formally granted the Aga Khan Fund for Economic Development (AKFED) rights to 51% of the shareholding in HBL, against an investment of PKR 22.409 billion (USD 389 million). On February 26, 2004, management control was handed over to AKFED.

BRANCH NETWORK

PRIVATIZATION OF HBL:
On December 29, 2003 Pakistan's Privatization Commission announced that the Government of Pakistan had formally granted the Aga Khan Fund for Economic Development (AKFED) rights to 51% of the shareholding in HBL, against an investment of PR 22.409 billion (USD 389 million). On 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.

CORPORATE INFORMATION
Auditors
KPMG Taseer Hadi & Co. Chartered Accountants

Registered Office
4th Floor, Habib Bank Tower Jinnah Avenue Islamabad, Pakistan. Phone: 051-2872203 & 051-2821183 Fax: 051-2872205

Head Office
Habib Bank Plaza I. I. Chundrigar Road Karachi - 75650, Pakistan. Phone: 021-2418000 [50 lines] Fax: 021-9217511

Registrars
THK Associates (Pvt.) Ltd. Ground Floor, State Life Bldg No. 3 Dr. Ziauddin Ahmed Road Kara

VISION

Enabling people to advance with confidence and success.

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

OBJECTIVES OF HBL:
To earn the profit for the bank itself and for its shareholder. To promote and boost up the business inside the country. To provide employment opportunities to the people. To help in development and industrialization of the country. To provide loan and advances to help out in self-employment schemes

SYMBOL OF HBL:

3.5.1: Symbol depicts:

Bismillah Sword Lion Islamic Culture and Values Power A Symbol of Strength

Core VALUES:
Our values are the fundamental principles that define our culture and are brought to life in our attitudes and behaviour. It is our values that make us unique and unmistakable. Our values are defined below:
EXCELLENCE CUSTOMER FOCUS

PROGRESSIVENESS

Culture of the HBL:

At HBL they have created a challenging environment that encourages creativity and commitment. In our pursuit of excellence, we are focused on attracting, developing and retaining the best talent in the marketplace. Our dynamic culture offers diverse growth opportunities across Pakistan and in 25 Countries worldwide. HBL fosters a work environment where employees can realize their potential whether locally or in the international areas. Thus, we enable our employees to achieve their professional goals while keeping in synch with the banks overall objectives.

How Employees learn culture:

In HBL, the employees learn culture by stories and by rituals.

Innovative culture:
HBL has innovative culture. HBL promotes the new ideas and appreciate its employees for giving new and innovative ideas. That helps the employees in achieving their goals and, they try to show their best at job.

Customer-responsive culture
HBL has customer responsive culture. The employees of the HBL are continues in their desire to please the customers and provide good service to their customers and satisfy the needs of customers.

Focus on individual development

HBL focus on individual development, HBL try to create the good culture, in which every employee can adjust, work properly, learn the new thing and give best.

Trust and openness

In HBL, top management have full trust on their employees. Mostly employees are honest and they

Employees Empowerment
In HBL, managers have trust on their employees and they want that their

employees also try to make decisions at their own job level.

Toleration of Employees Expression:

In HBL, there is no toleration of employees expression. They want work

and

ORGANIZATION HIRERCHY OF HBL

President

Board of Directors

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Assistant Vice President

Officer Grade I, II, III

Clerical Staff

Non Clerical Staff

Management function: PLANNING:

Planning is choosing a goal and developing A method or strategy to achieve that goal. In HBL decision making is highly centralized because top management is responsible for making of decision and plans for the bank. First step involve in the management of HBL is planning: In Habib Bank Limited they develop short term planning process. Management make plans in such a way that they can make efforts in order to earn maximum profit. The regional manager of HBL decides the goals and objective and conveys it to branch manager, then branch manager pass these goals to operational manager. The operational manager implements it to staff members for accomplishment of goals. In HBL the top management assign task to every branch in the start of the year. Then the branch manager divide these plan on monthly basis. At the end of month Branch manager compare and check whether our plans are meeting our goals or not. They can replan those which are not working well. The major purpose of planning is that to retain customers and gain their attention by providing better services.

7: Organizing:
The organizational structure defines the line of authority in an organization and department. It is the sort of visual presentation of organizational structure. It specifies the duties and responsibilities of organization and department. Service is provided by

the HBL beyond the expectation of customers. The employees of HBL consult the problems with the department managers weekly.

7.1: Chain of Command:

The chain of command is the line of authority that to links all persons in an organization and shows who reports to whom. Everyone knows to whom he has to report. The authority and responsibility for different tasks and duties are different. The branch manager assign the job description and duties list are also provided to the employees weekly and the operational manager evaluate the staff members performance. At the end of month. They also appreciate their employees and also provide increment in order to get the work done properly. According to HBL branch manager, If a person wants to become a good manager and get success in his abilities to get work done from the employees he should develop good behaviour and relationship with a higher management and also with the staff members. You should delegate the work in written form and take the sign of employee.

Decision making:
Decision making is a process of choosing a solution from suitable alternatives.

Decision Making Process:

Identification of a Problem

Identification of decision Criteria

Allocation of weights to criteria

Development of alternatives

Analysis of Alternatives

Centralized

Decision

Making

Process:

At the HBL all the decisions are made at the top level management and the subordinates have to obey these decisions. This trend in the decisions making shows a pattern of flexibility in the structure of HBL.

Decentralized
All routine maters are decided at branch level by the respective heads of departments with permission of branch head. If any problem or matter is beyond limits of branch, then it is referred to the Regional Head quarter. Collective participation IN DECISION MAKINg:
Department heads meet frequently with each other and discuss problem with employees if any. They take suggestions from all staff members.

Employee Participation:

The management involves employees in decision making process such as by taking feedback.

Delegation of Power:
Delegation means giving the authority to lower management. In Habib Bank Limited, top management makes the major decisions. So there is a centralizeddecision making control. These are limits of authority approved for different levels of management at branch level. The branch operation manager and chief manager, takes active part in decision making.

9: Leading:
The next step of management is leading. It means inspiring and motivating workers to work hard for the achievements of goals. In HBL leadership approach is established as a team leadership and positive employees attitude towards their job is because of addition in employee job satisfaction. In the HBL the dress codes policy is followed by the employees and it is the rule of bank to take action against the employee if they do not follow the policies of bank and if any employee is involve in the commitment of fraud then explanation call is given to the employee. In the HBL there are two ways of communication i.e. verbal and writing communication. In verbal communication weekly meeting are held by the manager in which they discuss about the new product, target customers or different ways to manage the people who are not working properly. While in writing communication important information and orders are given to the staff members i.e. through letter, email or fax. In HBL mostly people do their work in teams. They can motivate their employees by appreciating their work and performance and also tells them that your performance will be evaluated at the end of year, if performance is good then employee can get reward, benefit and bonus.

Difference between the management & Leadership:

According to the manager of HBL in the management the manager knows how to get work done and he chooses the leader and leader is role model for everybody, get inspired and follow the leader. Every good leader is not a manager

but every good manager is a leader.

10: Controlling:
Control is a regulatory process of establishing standards that will achieve organizational goals, comparing actual performance to those standards, and then, if necessary, taking corrective action to restore performance to those standards. HBL implement the external control on their employees and the criteria used by the management is to evaluate their employees performance. At the end of year annual reports are sent to top management to evaluate the performance of every employee. After this they offer increment to the employees for the best performance. Branch manager receive information from regional manager through Letters or Emails and get print out and pass it to the staff members or filed them. The HBL branch manager can check the performance if his staff members on daily basis. For Example if customer enter in the office and our staff member is not attending him then the middle level manager can take quickly action against such staff member that why he is not properly dealing the customer. Manager also evaluates the performance of subordinates that whether they are using the organizational resources properly and performing their duties with honesty, they keep check and balance on the cashier and on other staff. In HBL they use thumb impression or a biometric system as a password in order to protect their information. The head offices of the HBL make their budget by seeing the previous year expenses of the branch and then they prepare / plan for their budget for current year. HBL use balance score card to measure the performance of employees. Manager can detect errors and frauds by monitoring the cashier and staff members that either they are involved in any criminal activity or not, and also check their source of income. HBL hire auditor who detect errors and frauds with in the branch. They conduct two audits. Regular and surprise audit in a year. In HBL job rotation is done according to time to time. They see that if the employee is perfect in his job which is allocated, then they can change his job and give chance to other employee so that they can improve their skills and abilities.

General information :
Following are the analysis based on the personal experience of branch manager of HBL is as follows:

That as a manager I am risk seeker and according to my personal experience the whole banking system is risky. If one staff member do any mistake then cashier to branch manager are liable. The manager should be confident, and he must have abilities to develop the good relationship with staff members, top management and customers. My performance is the rewarding part of my job because it is evaluated at the end of each year. According to my experience the difficulty in the profession of management is that there is a huge risk involvement. If the opening time of Bank is 90 clock and then managers dont know when they will get free.

HBL PRODUCT & SERVICES

HBL product and services are divided into two main divisions Individual Customers Business Customers

INDIVIDUAL CUSTOMERS
With a customer base of 5 million and a network of more than 1,450 branches in Pakistan, HBL is the largest private bank in the country. Our network means that we are geographically closer to our customers than any other bank. This gives us the insights needed to provide a variety of products that directly reflect customer needs. HBL provides the following products and services to meet its individual customer requirements. Product and services that includes in Individual Customers are Car-to-Car Car Loan Credit Cards Deposit Accounts Banc assurance Debit Card Phone Banking Mutual Funds

HBL Car-to-Car
HBL Car To Car is a revolutionary car financing offer. It makes the car of your choice affordable and practical with a buy back guarantee. HBL Car To Car offers matchless features and unique options at the end of the lease. Now you can drive a new car at the end of every two years.

HBL Car Loan

HBL Car Loan helps you get your preferred car through a simple and hasslefree process, backed by superior service and support. Now you can drive a car you always wanted.

HBL Credit Cards

Welcome to a world of convenience, flexibility and opportunity. The HBL Credit Card will add simplicity and excitement to your life. Accepted at over 24 million merchants worldwide, HBL Credit Card makes shopping fun and paying simple. Make the most out of your shopping experience with your very own HBL Credit Card i.e. by Gold Card and Green Card. HBL Deposits Accounts: HBL offers a wide range of accounts suited to meet individual customer needs.

Terms Accounts
Offered in a variety of tenors with deposits as low as Rs. 10,000.

Savings Accounts
HBLs Saving Accounts cater to individual saving habits

Current Account
Current Account offered the features that meet daily banking needs.

Foreign Exchange Accounts

Offered in multiple currencies with interest paid on a quarterly basis

HBL Banc assurance:

HBL and New Jubilee Life Insurance Company Limited (NJLI) introduce Amaan (Retirement Plan) and Tabeer (Child Education & Marriage). These products have been designed keeping HBLs customer base as the focus and will provide life insurance along with an investment option.

Amaan-Retirement Plan
A pension plan that offers attractive investment returns.

Tabeer- Children Education

An Insurance plan that enable parents to cover education and marriage costs.

HBL Debit Card:

HBL Visa Debit Card allows you to pay for your purchases directly from your bank account. You dont have to carry cash and your monthly statement provides you with

a complete record of all your transactions so you can manage your expenses with ease. It has following prominent features No Interest Ease & Security No Liability International Recognition and Acceptability Spending Limits Free Account Statement 24 Hour Customer Service Global Customer Assistance Service

HBL Phone Banking

Your bank is just a phone call away. You can now call HBL Phone Banking and save a trip to the branch. Your query will be resolved in a single telephone call from anywhere and at anytime.

BUSINESS CUSTOMERS
HBL has a long history of being a partner of growth for business and industry. We provide tailored banking solutions to business customers of all sizes in a wide range of industries. We cater to the needs of a broad spectrum of clients. To do this, the business banking group is segregated by the size of the customer. For customers with an annual turnover between PKR 50 million to PKR 300 million, our Commercial Banking group provides a wide range of products that meet specific customer needs. The Corporate Banking Group focuses on personalized services to large corporate borrowers who need tailored facilities. The Corporate Bank manages a diverse portfolio, being an active player in a multitude of sectors including textiles, sugar, leather, pharmaceuticals, fertilizer, petrochemicals, power, aviation, automotive, telecom, oil and gas and FMCGs. The Investment Banking Group is a market leader. It provides innovative capital strategy solutions to major local and multinational entities. For Business Customers HBL provides Corporate Banking Commercial Banking Investment Banking Islamic Banking Zarai Banking

CORPORATE BANKING
HBL Corporate Banking Group comprises a seasoned team of Relationship Managers (RMs) to meet the demanding service standards of large corporations. A long history of financing and nurturing relationships in Pakistan has given HBL a

unique insight, enabling us to provide timely and effective financial solutions for our customers to meet the growing challenges of a global economy. If you are a corporate customer, with a turnover of at least PKR 300 million, we have a range of solutions designed to help you with your banking needs. Our RMs has the expertise you need to create tailored financial solutions catering to the specific requirements of your business Whether establishing a new venture or expanding an existing business, our team understands your banking needs and works closely with you to realize your goals. Services We provide the following service to meet your funding requirements Working Capital Finance, including Overdraft, FE Loans, etc Pre and Post Shipment Export Financing (PKR and USD based) Receivable Discounting Islamic Banking Facilities Cash Management Services Trade Services including letter of Credit, Letter of Guarantee and Standby Letter of Credit, etc.

COMMERCIAL BANKING
HBLs Commercial Banking Group targets medium sized companies with a turnover of at least PKR 50 Million. Our business units are located in Karachi, Lahore, Faisalabad, Sialkot, Gujranwala and Peshawar. Each unit is dedicated to service business clusters located within these cities. We have the ability and the resources to meet the needs of our business with our pro-active, responsive and experienced Relationship managers who are committed to understanding your business. We cater to the needs of a broad spectrum of clients. To do this, the business banking group is segregated by the size of the customer. For customers with an annual turnover between PKR 50 Million to PKR 300 Million, our Commercial Banking group provides a wide range of products that meet specific customer needs. Services: We offer financing for the following Working Capital Procurement of Inventor Receivables Procurement of Machinery

 Expansion of production facilities Import of raw materials Exports

INVESTEMENT BANKING
HBL offers full-service Investment Banking capabilities to its client. This year alone, HBL has closed over thirty transactions with a cumulative worth of over USD 2 billion. This is a testament to the out-of-box thinking and the innovative products we bring to our customers. The Investment Banking Group functions in three specialist business areas: Project Finance

ISLAMIC BANKING
Islamic Banking is a growing market segment that offers attractive opportunities to potential and existing customers. At HBL, Islamic Banking offers Shariah compliant products and services to meet the short and long term requirements of business and trade. Islamic Banking provides Ijarah (leasing) for vehicles, plants and machinery to meet long term customer resource requirements. Murabaha (local and Import) facilities are provided to meet the short-term financial needs of mid-market and corporate customers. HBLs Islamic Banking products are fully Shariah compliant and duly certified by independent Shariah Advisors Service HBLs Islamic Banking Branch provides following Services Opening of Current Account and Basic Banking Account(BBA) Collection of Foreign/ Inland Bills Acquisition of Assets on Ijarah Purchase of Raw Materials, Semi-Finished/ Finished goods or Store or Spares through Murabaha Foreign/ Inland Remittance Utility Bills Collection E-banking/ Internet Banking Services

ZARAI BANKING

HBL Zarai Banking Facilities are spread across the country and provide financing through more than 800 of our branches. HBLs presence in all agriculture bets of the country ensures easy access to farmers in rural areas .HBL Zarai Banking provides loans to small-scale land owning farmers as well as large institutionalized and alliance based finance, enhancing agricultural harvest and, in turn, economic output of the country . Products and Its Features HBL Zarai Banking enables farmers to invest in premier quality seeds, fertilizers, pesticides, agricultural implements and non-farm setups through its various product programs
Crop Inputs

Crop specific finance for purchase of Agri inputs such as seed, fertilizer, pesticide and other related inputs Farm Implements Finance available for purchase of farm implements & machinery like combined harvester, sprayers, ploughs, tube wells and other crop-related tools/implements.
Tractors/ Agricultural Vehicles

Finance available to individual farmers, self-employed tractor operators, providing the option to select vehicles from a range of different manufacturers
Livestocks

Finance available for feed, medicines, raw material, raising charges and other related activities Poultry Finance available for all poultry related activities including poultry farm construction/equipment, hatchery plant & machinery, poultry feed, poultry medicines, composite feed production, poultry processing and other related activities
Fish Farming

Finance are available for inland fish farms as well as deep-sea fishing. This includes procurement of boat, fish locating equipment, nets & ropes, ice maker, fish farm water solution, hatchery construction/equipment, purchase of medicines / feed and other related activities Group Lending

Joint finance facility for a group of farmers with small land holdings for working capital requirement

HBL DEPARTMENTS
HBL is performing its activities through the following functions 1. Deposit Department 2. Clearing Department 3. Advances Department 4. Foreign Exchange Department 5. Remittance Department

SWOT analyses
External Analysis Opportunity threats

SWOT Analysis
Internal Analysis Strengths weakness

Strengths:
HBL is the largest bank in Pakistan with a network of 1450 branches including domestic and international. The officers of HBL considered as one of the most professionals in banking world. HBL maintains its data properly through computer based systems. HBL has very good security system. HBL focuses on the consumer banking by introducing schemes, products and services according to wants and demands of the customers. HBL has opened its branches in commercial areas so that the customers and clients cannot face any difficulty to reach at the bank. The HBL bank always focuses on improving its services both for the domestic and overseas customers. 24 hours easy cash access services are provided.

Introduction of new technology towards modern banking and human resource development.

Weakness:
The large number of branches affects the performance of bank as well as difficulties in providing proper services at every branch. HBL lacks of customer feedback about performance of the bank. Less job satisfaction among employees they always feel insecurity about the job. ATM service is not very good.

Opportunities:
HBL has opportunity to take the feedback of the customers about the product and services of the bank it will help in improving the performance. HBL has opportunity to its technological advancement i.e. telephone banking and internet banking in order to provide customer services more efficiently and effectively. New products like personal loans, auto leasing and cash management are only introduce in big cities like Karachi, Lahore, Islamabad, Peshawar and Rawalpindi. HBL has opportunity to introduce these products also in other small areas of Pakistan. HBL internship program offers for the student the exciting opportunity to apply the learning experience to real life. HBL provide good opportunities for the employees in developing their skills.

12.4: THREATS:
Other banks have high and latest technology. Most of the banks are offering valuable packages to attract the customers. Low economy results in low purchasing power of the people or they do not deposit money in their accounts. Innovation is bringing growth in global technology.

HBL has to face high competition and threats from the foreign banks. They are providing more attractive and advance services to their customers. Strict rules and regulation impose by government regarding the credit facilities.

13.1: RECOMMENDATIONS:
The management should reduce the job insecurity among the employees. As the HBL has large number of branches in both domestic and international level so management should increase the number of trained and skilful employees in order to improve the performance efficiently and effectively. Management should take feedback from the customers regarding performance of product and services. They must satisfy their stakeholder by providing better products and services. Management should try to develop good relationships with government to get support or reduce the influence on the performance of bank. As the HBL has greater threats from the foreign banks then management should try to create new innovative products and services in order to retain customers or remain to survive in the market. They should use the latest technology in their banking system. ATM network should be improved according to international level of banking system.

13.2: conclusion: No doubt the HBL is the largest bank in private sector and its management has improved its performance effectively and they have large volume of customers but it can still improve its performance by adopting new IT technologies and improve their ATM service and trained their employees about the new IT trends. They should improve their behaviour with middle level management and also built strong relationship with government or also they should take the feedback of customers in order to improve their services.

Websites consulted
Tariq Mehmood Khan (Deputy General manager) Abdul Rehman (Assistant Manager)

www.hbl.com.pk www.ehow.com www.investopedia.com

www.businessdictionary.com www.yourdictionary.com
www.opportunities.com wiki.answers.com books.google.com www.informationbible.com

http://www.hbl.com/about-us.phphttp:/ /docstoc.com

Books References:Management 3rd edition by Chuck Williams

Marketing Management 13th edition by Philip Kotler and Kevin Lane Keller