Free Essay

Hbl Internship Report

In: Business and Management

Submitted By aamirajk
Words 12684
Pages 51
6th Semester Azad Jammu & Kashmir University Department of Business Administration Faculty of Administrative Sciences University of Azad Jammu & Kashmir A Report submitted in partial Fulfillments of the Requirements For The Degree Of Bachelor In Business Administration

EVOLUTION OF BANKING
This history of banking is traced to as early as 2000 B.C. The priests in Greece
Used to keep money and valuables of the people in temples. The origin of banking is also
Traced to early goldsmiths. They used to keep strong safes for storing the money and
Valuables of the people. The goldsmiths used to issue receipts for the money and other valuable assets deposited with them. These receipts could be used for settlement of
Transactions because people had confidence in the integrity and solvency of goldsmiths.
When it was found that these receipts were fully accepted in payment of debts; then the receipts were drawn in such a way that it entitled any holder to claim the specified amount of money from goldsmiths. A depositor who is to make the payments may now get the money in cash from goldsmiths or pay over the receipt to the creditor. These receipts were the earlier bank notes. The second stage in the development of banking thus was the issue of bank notes.
BANKING IN PAKISTAN:
I observed during my internship was that I came to known the historical background of Banking & Financial sector and its improvement and growth since the formation of Pakistan.
At the time of partition there were only 631 bank branches in area which came under Pakistani control. But due to blood shed and violence at large scale, most of the branches were closed. At that time Bank of India was acting as cent al bank for both countries and same currency notes were used in both territories. But Reserve Bank of
India was biased and Set down Pakistan on many occasions such as the issue of funds transfer etc.
Thus some drastic steps were taken in government sector for the improvement of overall position. The private sector also responded positively. Some of the steps taken by the government in this regard were as under :
Inauguration of State Bank of Pakistan (SBP) on 1st July, 1948.
Setting up of National Bank of Pakistan in November.
Banking Companies Ordinance 1962 for protection and guidance to banks.
HISTORY of HBL
HBL (Urdu: حَبيب بينك) (formerly Habib Bank Limited) now referred to as "HBL Pakistan" and headquartered in Habib Bank Plaza, Karachi, Pakistan, is the largest bank in Pakistan. The bank has a network of over 1450 branches in Pakistan and 55 branches worldwide. It has a domestic market share of over 40%. It continues to dominate the commercial banking sector with a major market share in inward foreign remittances (55%) and loans to small industries, traders and farmers.
Location
| Head Office
Habib Bank Plaza
I.I.Chundrigar Road
Karachi-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 | Branches

The branches of Habib Bank in Pakistan

HBL Plaza in Karachi
Mohammed Ali Jinnah, Pakistan's founding father, realized the importance of financial intermediation while he was campaigning for the creation of a separate homeland for the Muslims of India. He persuaded the Habib family to establish a commercial bank that could serve the Indian Muslim community. His initiative resulted in the creation of Habib Bank in 1941, with HO in Bombay (now Mumbai), and fixed capital of 25,000 rupees. The bank played an important role in mobilizing funds from the Muslim community to finance the All-India Muslim League's campaign for the establishment of Pakistan. Habib Bank also played an important role in channeling relief funds to Muslims hurt in the communal riots and violence that preceded the departure of the British from India.
After Pakistan was born in 1947, Habib Bank, at the urging of Governor-General Jinnah, moved its headquarters to Karachi, Pakistan's first capital. This gave Karachi its first commercial bank of the newly formed Pakistan. The Habib family owned and managed the bank until the Pakistan government nationalized it on 1 January 1974. In 2004, management of the Bank was handed over to Aga Khan Fund for Economic Development (AKFED)
Timeline
* 1951 HBL opened the first of 3 branches in Sri Lanka. * 1952 HBL established Habib Bank (Overseas). * 1956 HBL opened first of 5 branches in Kenya. * 1957 or 1958 HBL opened a branch in Aden. * 1961 HBL opened the first of what would become 6 branches in the UK. * 1964 HBL opened the first of 4 branches in Mauritius and a branch in Beirut. * 1966 HBL opened the first of 8 branches in the UAE. * 1967 HyderMohamedali Habib founded Habib Bank PLC Zurich who became after nationalsiation of Habib Bank Ltd in 1974 the main branch of the family held Habib Bank. * 1969 HBL opened first of 3 branches and an OBU in Bahrain. However, HB’s branch in Aden is nationalized. * 1971 HBL opened an OBU in Singapore and a branch in New York. * 1972 HBL opened the first of 11 branches in Oman. HBL constructed Habib Bank Plaza in Karachi to commemorate the bank’s 25th Anniversary. * 1974 The government of Pakistan nationalized HBL and HBL merged with Habib Bank (Overseas). * 1975 HBL opened a branch in Belgium. HBL also merged with Standard Bank, a Pakistani bank. * 1976 HBL opened a branch in the Seychelles, the first of two branches in Bangladesh, and a branch in the Maldives. * 1979 HBL opened a branch in the Netherlands. * 1980 HBL opened a branch in Paris and another in Hong Kong. * 1981 HBL established Nigeria Habib Bank with 40% ownership. HBL also opened a representative office in Teheran. * 1982 HBL opened a branch in Khartoum. * 1983 HBL opened branch in the Karachi EPZ and a branch in Istanbul. * 1984 HBL established Habib American Bank in New York with a branch each in Manhattan and Queens, and a US International Banking Facility. HBL also opened a branch in California. * 1987 HBL opened in Australia. * 1991 The Habib Group established a separate private bank, the Bank AL Habib, after private banking was re-established in Pakistan. HBL opened a branch in the Fiji Islands, and took over the Paksistani branches of failed bank, BCCI. * 1992 In Nepal HBL acquired 20% of Himalayan Bank. * 1995 HBL established a representative office in Cairo. * 1990s HBL established Habib Finance (Australia), and Habib Finance International Limited, Hong Kong. * 2002 On 13 June 2002 Pakistan's Privatization Commission announced that the Government of Pakistan had granted the Aga Khan Fund for Economic Development (AKFED), a subsidiary of the Aga Khan Development Network, rights to 51% of the shareholding in HBL, against an investment of PKR 22.409 billion (USD 389 million). * HBL's UK operation came close to being shut down due to regulatory issues with the Financial Services Authority. The issue was resolved by converting the operations to a subsidiary. Then Habib Bank Limited and Allied Bank of Pakistan merged their operations (Habib contributed its 6 branches and Allied its 4), into a new bank, called Habib-Allied International Bank, in which Habib Bank has a 90.5 percent shareholding, while Allied Bank has 9.5 percent. Simultaneously with the transfer of business to the new bank, both Allied and Habib Bank close down all independent operations in the UK. * 2003 HBL received permission to open a branch in Afghanistan. * 2003 On 29 December, Government of Pakistan granted Aga Khan Fund for Economic Development (AKFED) rights to 51% of the shareholding in the bank against an investment of PKR 22.409 billion (USD 389 million). * 2004 On 26 February, the government of Pakistan handed over management control of Habib Bank 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. * 2006 HBL sold the operations that it had established in Fiji in 1991 to Bank of South Pacific. * 2009 HBL was granted permission to open Remnibi accounts in China. It already has training and shareholding arrangements with Ürümqi Commercial Bank.
Business Operations 1. Banking Sector Overview 2. HBL’s Performance Overview 3. Products and Services
Services banking
Corporate Banking
Online Services
Virtual banking
Islamic Banking 4. HBL’s competitive Strategies
Services
Habib Bank offers the basic range of banking services to its customers, to include commercial, bank in the emerging markets.

Organizational Chart President Board of Director Member Executive Board Regional Chief Zonal chief Branch Managers

| Sultan Ali Allana | | Chairman | | | | | | | | | Sultan Ali Allana is the Chairman of Habib Bank Ltd (HBL), since the bank was privatized in February 2004. Prior to taking this position, Mr. Allana was the Chief Operating Officer of NIB Bank and a Director and founder member of Global Securities Ltd. Mr. Allana has 27 years of banking experience. | | Mr. R. Zakir Mahmood | | President & CEO | | | | | | | | | Mr. Zakir Mahmood holds Masters degree in Engineering and an M.B.A majoring in Finance both from University of California at Los Angeles (UCLA). He has over 34 years of working experience with international and local banks in various parts of the world including Europe, Middle East and Pakistan. In the year 2000, Mr. Zakir Mahmood was appointed as President and Chief Executive Officer of Habib Bank Limited (HBL). Mr. Zakir Mahmood has played a major role in restructuring and shaping of HBL for privatization. Mr. Zakir Mahmood continued as President and CEO on acquisition of HBL by the Aga Khan Fund for Economic Development (AKFED) and has played a key role towards its growth. | | Moez Jamal | | Director | | | | | | | | | Mr. Jamal holds an MBA in Finance and International Business from New York University and a BA (Hons) from Manchester University, England. He has extensive experience of over 32 years in the financial sector. | | Sajid Zahid | | Director | | | | | | | | | | Mr. Zahid is a Barrister-at-Law called to the Bar from Lincoln's Inn, London, in Trinity in 1972. He is a Jt. Senior Partner of Orr, Dignam & Co., a leading firm of corporate Lawyers in Pakistan.

He is a practicing lawyer with over 37 years of experience, advising major domestic and foreign companies, banks and financial institutions on civil and commercial laws, national and cross-border transactions. | | | Ahmed Jawad | | Director | | | | | | | | | Mr. Ahmed Jawad holds Masters Degree in English literature and has a diploma in Development Economics and Planning from Italy. | | Mushtaq Malik | | Director | | | | | | | | | Mr. Mushtaq Malik is a government dignitary with a diversified background of 39 years of which he served in the Punjab Government for almost 15 years in various senior positions besides being a Director on ECO Bank from 2006 to 2008 he represented Pakistan, Afghanistan and Nepal on IDA Forum of the World Bank from 2003 to 2006. | | Sikandar Mustafa Khan | | Director | | | | | | | | | | Mr. Sikandar Mustafa Khan qualified as a Mechanical Engineer from NED University of Engineering & Technology, Karachi in 1967. He has a Post Graduate Diploma from the University of New-Castle Upon Tyne, U.K. (1969) and Masters' Degree & Diploma in Production Engineering (DIC) from Imperial College of Science and Technology, London University (1970). In addition he has attended several Management courses for senior executives, locally and abroad. Wards | | | | | 2010 | | | 'HBL wins Best Emerging Market Banks award in Pakistan 2010' | | | 2009 | | | 'The Best Emerging Market Bank in Pakistan' | | | HBL among Top 500 Global Financial Brands | | | 2008 | | | 'Best Bank In Pakistan' | | | | 'Most Innovative Global Trade Finance' | | | | 'Buzziest Brands' | | | DEPARTMENTS & RESPONSIBILITIES:During my internship, I came to known about the following departments functioning inmy branch1. Account opening department.2. Cash department.3. Credit department.4. Lockers department.5. Bill clearing department.6. Foreign exchange department.7. I.T departmentAccount opening department:In this department customer open the account in the bank. This give facility to the customer for opening new account with the bank that they allow him and operate this account.These require many document to open this accountCopy of CNICUtility billStudent cardProvisional receiptAddress of customerSpecimen Signature of the customerPosting the account on the systemCheque book issue to the customerSecrecy of the customerCategories of the Account1. Individual account2. Joint accountIndividual account:Bank opens this account by individually. It involves single person only. Bank opens this account for one person.Joint account:Bank opens this account by one or two person. The two people use one account in the bank. Bank considers one account by two people. The two people of joint account show one account according to the law.Types of Accounts There are two types of account 1. Current Accounts 2. Saving Accounts 1. Current Accounts: * HBL Freedom Account * HBL Business Value Account * Current Account * Basic Banking account (BBA)HBL Freedom Account:With a monthly balance of Rs. 25,000 or more avail a host free services including:Free cash withdrawl and deposit transactions through any HBL branch Free online funds transfer transactionFree Banker’s ChequesFree HBL cheque booksFree HBL deposit transactions at any HBL branch Free duplicate account statementsFree debit card issuanceFree ATM transactions through HBL networkFree SMS alerts on transactions above Rs. 25000/.HBL Business Value Account:Unique transaction account for businessmenNo minimum balance requireAccount opening with only Rs.10,000 Auto balance transfer from subsidiary accounts to the main account of a customer at a day endUp to 10 banker’s cheque freeNominal monthly maintenance charge Rs.50Current account 2. Minimum balance of Rs. 5000Unlimited transactions Non profit accountBasic Banking Account (BBA)Account opening with only Rs. 1000No minimum balance required2 withdrawals and 2 deposits transactions free every monthUnlimited withdrawals through HBL Debit Card Non-profit account 3. Saving Accounts: * HBL Value Account * Profit and Loss Saving(PLS) Account * Daily Munafa Account * Remittance Munafa Plus Savings account * Money Club accontHBL Value Account7.19% profit per annumProfit calculated monthly, paid every quarterDeposits range from Rs. 10,000 to Rs. 1,000,000free withdrawals every monthProfit and Loss Saving(PLS) Account5.06% profit per annumProfit paid bi-annuallyMinimum balance of Rs. 20,000Unlimited transactionsDaily Munafa AccountProfit calculated daily paid every monthUp to 8.84% profit per annumMinimum balance of Rs. 20,000Remittance Munafa Plus Savings accountSpecial account for receiving foreign remittances5.12% profit per annumProfit calculated and paid every monthMinimum balance of Rs. 20,000Money Club accountThis account is specially for childrenThis account is for the person less than 18Free check book and ATM cardGuardian operate the accountJubilee Insurance In Jubilee Insurance five products are given to customers.1.AmmanProduct Features:You can choose the minimum amount of premium or a higher amount depending on your financial capacity that you can make each year. You can pay the premium yearly, half yearly, quarterly or monthly.You can decide the level of savings and protection you require depending on the goals that you have on mind.You can select any of the optional insurance benefits to enhance protection.Eligibility: You are eligible for Amaan if you are 18 to 65 years old. The available term range is 10-57 years, which allows you to maintain the policy anywhere from 10 year to 57 years (depending upon your needs and your age at the time of purchase of policy.)Product Benefits:Capital guarantee (in case of death only) Amaan ensures that the benefit in case of death is at least equal to the Sum assured (which will be either 100,000 or 250,000 or 1,000,000) and premiums paid.Protection in case of death:In the unfortunate case of death, Amaan offers various options to ensure that you receive your needed assurance.These includes: Saver Option | Rs. 100,000(Higher of return of premium or cash value) | Save and Protect | Rs. 250,000 (Higher of return of premium or cash value) | Save and Protect Plus | Rs. 500,000(Higher of return of premium or cash value) | Protection Plus | Rs. 1,000,000(Higher of return of premium or cash value) |
Maturity Benefits:Upon survival till the end of the chosen term you will receive the accumulated cash value of your fund as lump sum. If you are aged 55 years or above at maturity have the option to use the Accumulated Cash Value of your fund to get yourself enrolled for a monthly pension for life.Automatic cover maintenance:In case you are unable to make any premium payments after two years, you will still be eligible for the life insurance cover, as long as your plan’s Cash Value is sufficient to pay for charges made against your policy.Top-up premium:If You wish to invest additional contributions in your plan in any given year you can add them on top of your existing premium amount to enhance your Cash ValueOptional benefits:Being a flexible plan, Amaan allows you the opportunity to choose from additional riders.Family income benefits:This rider caters to the financial needs of your family by providing a steady stream of payments to the beneficiaries in the case of death of the life assured during the term of the plan. The payment amount and term are decided at policy issuances.Accidental death benefit:This rider provides an additional converge up to two times the Sum Assured. It will supplement beneficiaries in case ofan untimely accidental death of the policy holder.Wavier of premium:This insurance will pay your future premiums from the next due date in case you are unable to follow your current occupation or any other occupation (that can be pursued with suitable knowledge, training, or education) for at least 6 months because of your illness or disability.Premium payments:A breakdown of the minimum premium contributions that can be made is given below: Yearly | Rs. 12,000 | Half-Yearly | Rs. 6,000 | Quarterly | Rs. 3,000 | Monthly | Rs. 1,000 |
Premium allocation:The premium allocated to units is provided in the table below: 1st year | 2nd year | 3rd year | 4th year | 5th & onwards | Ad hoc | 30% | 85% | 90% | 100% | 103% | 100% |
Funds:Your allocated premium according to the table above will be invested in the fund (s) of your choice. These funds are managed by expert investment managers and backed by premium securities regulated by Securities and Exchange Commission of Pakistan under insurance Ordinance 2000.Managed Funds:The objective of the fund is to maximize the capital appreciation by investing in a balanced portfolio of a wide range of shares government and other fixed income securities and other cash deposit.Yaqeen Growth Fund:The objective of the fund is provide an opportunity to investors who prefer reasonable return from a portfolio of highly liquid investment with minimal exposure to market fluctuation.Meesaq Fund:The objective of fund is to provide an opportunity to investors who want interest free return. The instruments in which the fund invests are selective stock, sukuk bonds, short term deposits of Islamic banks, Islamic mutual funds and fixed income funds of Islamic banks and other wild interest free investments.Sarmaya Fund:The objective of the fund is to maximize the return to policy holders by investing in a diverse portfolio of asset backed investment such as shares, term finance certificates and bank deposits.Charges:In addition to reduced allocation in initial years , following charges are applicable on the plan: * An investment management charge of 1.5% p.a. of fund value * An administration fee of Rs. 40 per month * 5% bid offer spread * Applicable mortality charges * Rider charges , if any * 0.5% of the withdrawn amount in case of partial withdrawal from accumulated account value * 0.5% of the total accumulated value in case of early plan surrender Risks Associated with investment in the Units of Amaan: * Depending on market risk and the performance of the funds, the value of units may fall, rise or remain unchanged. * The past performance of funds is not necessarily indicative of the future performance of any of these funds. 2.ShandurProduct Features:You can choose the minimum amount of premium or a higher amount depending on your financial capacity that you can make each year. You can pay the premium yearly, half yearly, quarterly or monthly.You can decide the level of savings and protection you require depending on the goals that you have on mind.You can select any of the optional insurance benefits to enhance protection.Eligibility:You are eligible for Shandur Plan if you are 18 to 65 years old.Product Benefits:Death Benefits:In the unfortunate case of death your nominated beneficiaries will receive the sum assured or the accumulated cash value of your funds.Ad hoc (Top-up premium):You may have extra fund available with you at any stage. You can top up yours regular investments under this plan by making and hoc premium payments. These contributions would be invested is the Unit Account at the then prevailing offer price.Automatic Cover Maintenance: In case you are unable to make premium payments after the first policy year you will still be eligible for the life insurance cover as long as your plan’s cash value is sufficient to pay for charges made against your policy.Optional Benefits:The flexibility of the plan gives you the opportunity to select additional optional riders.Family Income Benefit:To meet recurring expenses, such as school fees, an additional regular income will be paid for a defined period to your family in addition to other benefits in case of death.Critical illness:The benefit payable on death is given in advance in case of you are diagnosed as having one of the specified critical illnesses.Cash for Hospitalization: For HBL Shandur customers a daily benefit is paid if you are confined to a hospital, other than Shandur customers daily benefit is limited to Rs. 3,500 per day. The benefit payable is doubled in case of hospitalization due to any of the specified critical illness. In case of confinement to ICU additional 50% benefits will be payable. Spouse and children can also be covered under this benefits.Accidental Death:To provide you extra protection against accidental death an additional amount will be paid under this benefit if death occurs due to an accident.Accidental Death and Dismemberment:An additional amount will be paid under this benefit in case of death or dismemberment occurs due to an accident.Permanent Total Disability:The benefit payable on death is given in advance in case of permanent total disability.Wavier of premium:This insurance will pay your future premiums from the next due date in case you are unable to follow your current occupation or any other occupation (that can be pursued with suitable knowledge, training, or education) for at least 6 months because of your illness or disability.Premium Payments:A breakdown of the minimum premium contributions that can be made is given below: Frequency | Minimum amount | Yearly | Rs.250,000 | Half Yearly | Rs.125,000 |
Premium allocation:The premium allocated to units is provided in the table below: 1st year | 2nd year | 3rd year | 4th & 5th year | 6th year & onwards | Ad hoc | 70% | 100% | 100% | 100% | 103% | 100% |
Funds:Your allocated premium according to the table above will be invested in the fund (s) of your choice. These funds are managed by expert investment managers and backed by premium securities regulated by Securities and Exchange Commission of Pakistan under insurance Ordinance 2000.Managed Funds:The objective of the fund is to maximize the capital appreciation by investing in a balanced portfolio of a wide range of shares government and other fixed income securities and other cash deposit.Yaqeen Growth Fund:The objective of the fund is provide an opportunity to investors who prefer reasonable return from a portfolio of highly liquid investment with minimal exposure to market fluctuation.Meesaq Fund:The objective of fund is to provide an opportunity to investors who want interest free return. The instruments in which the fund invests are selective stock, sukuk bonds, short term deposits of Islamic banks, Islamic mutual funds and fixed income funds of Islamic banks and other wild interest free investments.Capital Growth Fund:The objective of the fund is to maximize the return to policy holders by investing in a diverse portfolio of asset backed investment such as shares, term finance certificates and bank deposits.Charges:In addition to reduced allocation in initial years , following charges are applicable on the plan: * An investment management charge of 1.5% p.a. of fund value * An admin fee of Rs. 40 per month * 5% bid offer spread * Applicable mortality charges * Rider charges , if any * 0.5% of the withdrawn amount in case of partial withdrawal from accumulated account value Risks Associated with investment in the Units of Shandur: * Depending on market risk and the performance of the funds, the value of units may fall, rise or remain unchanged. * The past performance of funds is not necessarily indicative of the future performance of any of these funds. 3.Hawwa PlanProduct Features:You can choose the minimum amount of premium or a higher amount depending on your financial capacity that you can make each year. You can pay the premium yearly, half yearly, quarterly or monthly.You can decide the level of savings and protection you require depending on the goals that you have on mind.You can select any of the optional insurance benefits to enhance protection.Eligibility: You are eligible for Hawwa if you are 18 to 65 years old. The available term range is 10-57 years, which allows you to maintain the policy anywhere from 10 year to 57 years (depending upon your needs and your age at the time of purchase of policy.)Maturity Benefits:Upon survival till the end of the chosen term you will receive the accumulated cash value of your fund as lump sum. If you are aged 55 years or above at maturity have the option to use the Accumulated Cash Value of your fund to get yourself enrolled for a monthly pension for life.Death Benefits:In the unfortunate case of death your nominated beneficiaries will receive the sum assured or the accumulated cash value of your funds.Automatic cover maintenance:In case you are unable to make any premium payments after two years, you will still be eligible for the life insurance cover, as long as your plan’s Cash Value is sufficient to pay for charges made against your policy.Top-up premium:If You wish to invest additional contributions in your plan in any given year you can add them on top of your existing premium amount to enhance your Cash ValueOptional benefits:Being a flexible plan, Hawwa allows you the opportunity to choose from additional riders.Accidental death benefit:This rider provides an additional converge up to two times the Sum Assured. It will supplement beneficiaries in case of an untimely accidental death of the policy holder.Premium Payments:A breakdown of the minimum premium contributions that can be made is given below: Frequency | Minimum amount | Yearly | Rs. 18,000 | Half-Yearly | Rs. 9,000 | Quarterly | Rs. 45,00 | Monthly | Rs. 1,500 |
Premium allocation:The premium allocated to units is provided in the table below: 1st year | 2nd year | 3rd year | 4th & 5th year | 6th year & onwards | Ad hoc | 30% | 85% | 90% | 100% | 103% | 100% |
Funds:Your allocated premium according to the table above will be invested in the fund (s) of your choice. These funds are managed by expert investment managers and backed by premium securities regulated by Securities and Exchange Commission of Pakistan under insurance Ordinance 2000.Managed Funds:The objective of the fund is to maximize the capital appreciation by investing in a balanced portfolio of a wide range of shares government and other fixed income securities and other cash deposit.Yaqeen Growth Fund:The objective of the fund is provide an opportunity to investors who prefer reasonable return from a portfolio of highly liquid investment with minimal exposure to market fluctuation.Meesaq Fund:The objective of fund is to provide an opportunity to investors who want interest free return. The instruments in which the fund invests are selective stock, sukuk bonds, short term deposits of Islamic banks, Islamic mutual funds and fixed income funds of Islamic banks and other wild interest free investments.Capital Growth Fund:The objective of the fund is to maximize the return to policy holders by investing in a diverse portfolio of asset backed investment such as shares, term finance certificates and bank deposits.Charges:In addition to reduced allocation in initial years , following charges are applicable on the plan: * An investment management charge of 1.5% p.a. of fund value * An admin fee of Rs. 45 per month * 5% bid offer spread * Applicable mortality charges * Rider charges , if any * Four switching/Redirections are free each year, if more than four switches/redirections are opted per a charge of Rs.500 would be charged on each switching.Risks Associated with investment in the Units of HAWWA: * Depending on market risk and the performance of the funds, the value of units may fall, rise or remain unchanged. * The past performance of funds is not necessarily indicative of the future performance of any of these funds. 4.Hifazat PlanProduct Features:You can choose the minimum amount of premium or a higher amount depending on your financial capacity that you can make each year. You can pay the premium yearly, half yearly, quarterly or monthly.You can decide the level of savings and protection you require depending on the goals that you have on mind.You can select any of the optional insurance benefits to enhance protection.Eligibility:You are eligible for Hifazat Plan if you are 18 to 65 years old.Product Benefits:Death Benefits:In the unfortunate case of death your nominated beneficiaries will receive the sum assured or the accumulated cash value of your funds.Ad hoc (Top-up premium):You may have extra fund available with you at any stage. You can top up yours regular investments under this plan by making and hoc premium payments. These contributions would be invested is the Unit Account at the then prevailing offer price.Automatic Cover Maintenance: In case you are unable to make premium payments after the first policy year you will still be eligible for the life insurance cover as long as your plan’s cash value is sufficient to pay for charges made against your policy.Optional Benefits:The flexibility of the plan gives you the opportunity to select additional optional riders.Family Income Benefit:To meet recurring expenses, such as school fees, an additional regular income will be paid for a defined period to your family in addition to other benefits in case of death.Critical illness:The benefit payable on death is given in advance in case of you are diagnosed as having one of the specified critical illnesses.Cash for Hospitalization: Daily benefit is paid(up to Rs.3,000)is paid if you are confined to a hospital. The benefit payable is doubled in case of hospitalization due to any of the specified critical illness. In case of confinement to ICU additional 50% benefits will be payable. Spouse and children can also be covered under this benefits.Accidental Death:To provide you extra protection against accidental death an additional amount will be paid under this benefit if death occurs due to an accident.Accidental Death and Dismemberment:An additional amount will be paid under this benefit in case of death or dismemberment occurs due to an accident.Permanent Total Disability:The benefit payable on death is given in advance in case of permanent total disability.Wavier of premium:This insurance will pay your future premiums from the next due date in case you are unable to follow your current occupation or any other occupation (that can be pursued with suitable knowledge, training, or education) for at least 6 months because of your illness or disability.Premium Payments:A breakdown of the minimum premium contributions that can be made is given below: Frequency | Minimum amount | Yearly | Rs. 18,000 | Half-Yearly | Rs. 9,000 | Quarterly | Rs. 45,00 | Monthly | Rs. 1,500 |
Premium allocation:The premium allocated to units is provided in the table below: 1st year | 2nd year | 3rd year | 4th & 5th year | 6th year & onwards | Ad hoc | 20% | 80% | 90% | 100% | 103% | 100% |
Funds:Your allocated premium according to the table above will be invested in the fund (s) of your choice. These funds are managed by expert investment managers and backed by premium securities regulated by Securities and Exchange Commission of Pakistan under insurance Ordinance 2000.Managed Funds:The objective of the fund is to maximize the capital appreciation by investing in a balanced portfolio of a wide range of shares government and other fixed income securities and other cash deposit.Yaqeen Growth Fund:The objective of the fund is provide an opportunity to investors who prefer reasonable return from a portfolio of highly liquid investment with minimal exposure to market fluctuation.Meesaq Fund:The objective of fund is to provide an opportunity to investors who want interest free return. The instruments in which the fund invests are selective stock, sukuk bonds, short term deposits of Islamic banks, Islamic mutual funds and fixed income funds of Islamic banks and other wild interest free investments.Capital Growth Fund:The objective of the fund is to maximize the return to policy holders by investing in a diverse portfolio of asset backed investment such as shares, term finance certificates and bank deposits.Charges:In addition to reduced allocation in initial years , following charges are applicable on the plan: * An investment management charge of 1.5% p.a. of fund value * An administration fee of Rs. 40 per month * 5% bid offer spread * Applicable mortality charges * Rider charges , if any * Policy fee Rs.250 for semi-annual premium payment mode and Rs.300for quarterly premium payment mode Risks Associated with investment in the Units of Hifazat: * Depending on market risk and the performance of the funds, the value of units may fall, rise or remain unchanged. * The past performance of funds is not necessarily indicative of the future performance of any of these funds.5.Tabeer PlanProduct Features:You can choose the minimum amount of premium or a higher amount depending on your financial capacity that you can make each year. You can pay the premium yearly, half yearly, quarterly or monthly.You can decide the level of savings and protection you require depending on the goals that you have on mind.You can select any of the optional insurance benefits to enhance protection.Eligibility:You are eligible for Tabeer Plan if you are 18 to 55 years old. The available term range is 10-57 years, which allows you to maintain the policy anywhere from 10 year to 57 years (depending upon your needs and your age at the time of purchase of policy.)Product Benefits:Nominated daughter benefits (marriage benefit)in case of accidental death:As a part of our promise to ensure your family’s financial stability in the future, in the unfortunate case of accidental death before the age of 60 years, an additional amount of Rs. 500,000/- will be paid to your daughter on her written demand to meet her marriage expenses. In case the daughter is a minor the company will keep this amount till she attains 18 years of age and demand her benefit in writing.Maturity Benefits:Upon survival till the end of the chosen term you will receive the accumulated cash value of your fund as lump sumAutomatic Cover Maintenance: In case you are unable to make premium payments after the first policy year you will still be eligible for the life insurance cover as long as your plan’s cash value is sufficient to pay for charges made against your policy.Top-up premium:If You wish to invest additional contributions in your plan in any given year you can add them on top of your existing premium amount to enhance your Cash ValueOptional Benefits:The flexibility of the plan gives you the opportunity to select additional optional riders.Family Income Benefit:To meet recurring expenses, such as school fees, an additional regular income will be paid for a defined period to your family in addition to other benefits in case of death.Wavier of premium:This insurance will pay your future premiums from the next due date in case you are unable to follow your current occupation or any other occupation (that can be pursued with suitable knowledge, training, or education) for at least 6 months because of your illness or disability.Premium Payments:A breakdown of the minimum premium contributions that can be made is given below: Tenure | Minimum amount | Yearly | Rs.24,000 | Half Yearly | Rs.12,000 | Quarterly | Rs.6,000 | Monthly | Rs.2,000 |
Premium allocation:The premium allocated to units is provided in the table below: 1st year | 2nd year | 3rd year | 4th & 5th year | 6th year & onwards | Ad hoc | 30% | 85% | 90% | 100% | 103% | 100% |
Funds:Your allocated premium according to the table above will be invested in the fund (s) of your choice. These funds are managed by expert investment managers and backed by premium securities regulated by Securities and Exchange Commission of Pakistan under insurance Ordinance 2000.Managed Funds:The objective of the fund is to maximize the capital appreciation by investing in a balanced portfolio of a wide range of shares government and other fixed income securities and other cash deposit.Yaqeen Growth Fund:The objective of the fund is provide an opportunity to investors who prefer reasonable return from a portfolio of highly liquid investment with minimal exposure to market fluctuation.Meesaq Fund:The objective of fund is to provide an opportunity to investors who want interest free return. The instruments in which the fund invests are selective stock, sukuk bonds, short term deposits of Islamic banks, Islamic mutual funds and fixed income funds of Islamic banks and other wild interest free investments.Capital Growth Fund:The objective of the fund is to maximize the return to policy holders by investing in a diverse portfolio of asset backed investment such as shares, term finance certificates and bank deposits.Charges:In addition to reduced allocation in initial years , following charges are applicable on the plan: * An investment management charge of 1.5% p.a. of fund value * An administration fee of Rs. 45 per month * 5% bid offer spread * Applicable mortality charges * Rider charges , if any Risks Associated with investment in the Units of Tabeer: * Depending on market risk and the performance of the funds, the value of units may fall, rise or remain unchanged. * The past performance of funds is not necessarily indicative of the future performance of any of these funCash department Cash department has vital role in the banking sector. All cash transaction represent in this account such as cash received from customer , import and export transaction, bill payment etc. It involves cash payment and receipt transaction in it.These are following perform various function in this department:Acceptance of depositCheque paymentCollection of fundsRemittancesTransfer of funds from one account to anotherVerification of signaturePostingHeading of prize bondThere are some functions of cash department in the bank:Receipts and payments:Cash will be received by the Receipts from the customers in the bank. In the receipts, the name of the account holder, account number, name of the branch, dates etc are involved.Customer must also make certain that the receipts are signed by the person which deposit cash. In some cases, cash is received from receipt department.Deposit cash in customer account:When the customer wants to deposit amount in his account .The account in which the cash will be deposited. Then customer will receive amount and credit the customer’s account that shows increase in customer’s bank accounts.Cheque encashment procedure:The cash is paid to the customer in the cash department such as:Cheque is drawn on some branchesCheque is not posted on dateIt should be bearer chequePayment of cash:After posting the cheque the operation manager cancelled t he cheque and r returned back to cashier . The cashier enter s t he cheque in c ash paid registered and pays against the second signature of receiver on the back of the Cheque.Credit departmentA simple but practical def inition of credit is "the ability to buy with a promise to pay," in other words, to obtain present value for a promise to pay in the future. The word "credit" is derived from the Latin "credo. The banker knows that he may be asked to expand credit. He first satisfies himself that the ability is such as to defend assurance. This information is obtained from personal knowledge of the borrower. Trade inquiries are directed to people selling goods to and competitor s of the borrower. If all this information is satisfactory, the capital factor is studied in the borrower 's financial statement which balance sheet should be taken off at normal intervals. This ratio is often called the 2 to 1 ratio, but differs in business. In short, the distinguish between a safe risk and an unsafe one that is the quality that mar ks the good banker.This is including different latter issue in the credit department:Establishment of letter of credit :In case party enjoying regular limit, the L.C is established without adopting the procedure mentioned above. However the amount of L.C should not exceed the regular limit. The major non-fund based facilities that are considered as a part of regular credit facilities are letter of Credit and Bank Guarantee . Banks charge commission n for the services rendered by them and commitment s on the pact of the bank these are e allowed after ma king out a very careful and detailed assessment of borrower’s requirement.Types of creditThese are many types of credit of habib bank which are given below:Demand finance:Packing creditDemand finance to studentLoan to staffLoans are offered to the staff in various categories1.loan for purchasing vehicles2.loan correspondent to month’s salary3.mortgage loanRunning finance:It include old name overdraft which are meet requirements to the customer. For example:Secured Which are different forms given below1.share certificate2. deposits 4. mortgage of property etcunsecuredDEPOSIT DEPARTMENTBank 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.“REMITTANCES”DEMAND DRAFT:Demand draft is a written order drawn by a branch of a bank upon the branch of same or any other bank to pay certain sum of money to or to the order of specified person. It can be issued to the customers as well as non customer against cash chaque and letter of instruction. Demand draft is negotiable instruments that can be negotiating at any time before its cancellation. Its Legal provisions are same as that of cheque.Following par ties are involved in demand draft:Applicantissuing branchDrawer branchBeneficiaryA demand draft may be issued against the written request of the customer before issuing it must be seen that the demand draft is in order.The DD application must be scrutinized by the counter clerk in respect of following points.There should be branch where payment is to be made.Full name of payer should be mentioned.Amount in words and figures must be sameThe applicant on two places should sign application.TELEGRAPHIC TRANSFER:Telegraphic transfer means the transfer of funds from one branch to another branch of the same bank or upon other bank under special arrangements just like a telegram. Telegraphic transfer is not negotiable and the funds are not payable to bearer. Minor cannot avail this facility. In telegraphic transfer the bankers use secret Codes. One code is with issuing person and the second is with another person. When they combine the codes it’s become an amount that is called check. The payment is made after the confirmation of the check.Following parties are involved in TTApplicantDrawing branchDrawee branchBeneficiaryFollowing important things should be included in TT:Full name of the beneficiary or account number should be mentioned in theapplication for m.Instruction regarding mode of payment should be obtained.A record in the remittance outward register should be maintained.All the remittance must be controlled through number or codes.PAY ORDER:Pay order is an instrument through which payment can be made from one bank to another bank. Pay order is meant for bank own payment but in practice they are also issued to customers.Following par ties are involved in pay order:Applicantissuing branchPayeeMAIL TRANSFER:Mail transfer is not negotiable and the procedure of it is same with theprocedure of DD. When a customer request the bank to transfer his money from this bank to any other bank of the branch of same bank in the city, outside the city of outside the country the first thing he has to do is to fill an application form. In which he states that I want to transfer the money from this bank to that specific bank by mail. If the customer isthe account holder of this bank, the bank will debit his account and the concerned officer will fill forms to make the mail transfer complete.If the customer is not the account holder of the bank, then firstly he has to deposit the money and then rest of the procedure will be adopted to transfer his money.“SBP ERF Scheme”SBP had introduced this scheme to promote country ‘s export t and to earn foreign exchange. This scheme is operated through authorized dealers under SBP control.This scheme had been amended by time to time.Features:Concessions rate of markup as compare to commercial banks rate of markups.Export refinance allow to exporters via authorized dealers.In case of default, the SBP recover its principal loan amount, markup & penalty through the bank to which exporter has submitted his refinance claim.Refinance allows against value added products i.e. garments, print, dyed cloths, bed sets.Proceeds repatriated through banking channels.Allow credit loan amount within 248 hrs.Misutilization of SBP funds has been prohibited, if any violation occurs SBP imposed penalty.Risk:If the exporter has been / will be defaulted the laps of funds of authorized dealers.Cheating or misuse of funds, SBP may cause to impose not any penalty but also termination of bank employee or change of management or authorized dealer’s reputation may destroy.How to operate this scheme?SBP ERF schemePart I Part IIPost shipmentEE EFPreshipmentParty request statement statementParty request letter L/C sales contract total realization it includeL/C sales contract Under taking & negotiation totalUndertaking DP note SBP financed realizationDP note Form D Form E & not but on whichForm D Commercial invoice availed SBP finance Form E SBPProof of pur chase Bill of Lading financeof raw mater ial Form E availed notinclude.“Part A”This means after making a shipment the exporter prepare all relevant shipping documents and evidence of shipment. The exporter contact his bank w.r.t to lodge the documents and send a one set of shipping documents to export finances department to allow him post shipment part I under SBP scheme.Required documents at the time of finance allow to partyD/PnoteUnder taking on non judicial stamp paperL/CParty request letterForm DCommercial invoicePenalties:Non shipment 37 paisa/1000 per dayShort shipmentDelayed shipmentLate submission of documents to SBPHow to avoid from penalty of non shipment?Provide proof of shipment against relevant sales contract or L/C on which finance obtainSubstituted the old L/C or contract with new one after assurance that against newL/C.Restrictions/prohibitionsEvidence of shipment submit to SBP within 180 days or within time period fixedby SBPIn case of substitution against new L/C or sales contract make sure that theexporter has not availed pre or post shipment finance through any other bank.How to calculate penalty?Non shipment180 days *1000000* 0.37/1000=66600Short shipmentFinance amount 1000000Shipment 800000Short shipment amount =200000180 days *200000*0.37/1000=13320In case of post shipment only late repayment of finance penalty is involved.“Part B”The authorized dealers provide this finance facility to exporters against their EE statement. From the export earnings during of one fiscal year the SBP sanction a limit of 50% for the ailment of the ERF part II. In the EE statement all foreign bills realized and negotiated during a period of 01- 07-04 to 30-06-05 are included in this statement.Documents required at the time of sanction of financeD/P noteUnder taking on non judicial paperParty request letterShort fall in EE statement penalty:Days*amount of finance*rate(0.37)/day/1000Short fall in EF:SBP calculate case to case basis daily product and match this with his EF performance,if he avail excess Refinance from SBP and Business performance is short the SBPImposed a short fall penalty.Total short product*number of days*0.37/180Demand Finance & Running Finance:Demand finance:This is common for m of financing to commercial industrial concerns and is madeavailable either on pledge or hypothecation of goods, produce or merchandise. In demand finance the party is finance up to certain limit either at once or as and when required.The party due to facility of a paying mark prefers the financing up only on the amount it actually utilizes.Running Finance:This for m of financing was known as Overdraft when a bank customer requires temporary accommodation, his banker allows withdrawals from his account and running finance thus occurs. The accommodations generally allowed against collateral security.The customer is in advantageous position in a running finance because he has to pay mar k up only on balance outstanding against him on daily products basis.Pledge:It is entitled to the exclusive possession of the property until the debt is charged.Hypothecation:When the property in the goods is charged as security of loan from the bank but the ownership & possessFAPC & FAFBFAPC (finance against packing credit):It is a type of bank’s own source finance provided to clients engaged in export trade. As the term packing indicates that the cr edit line is granted to an exporter for the purpose of packing merchandise for shipment to an importer abroad. An exporter should give documentary proof to the bank consist of L/C in favor of exporter indicating the description of the merchandise, the purchase price, date of deliver y along with otherterms.FAFB(finance against foreign bills):It is a post shipment finance facility which is provided by the banks to its clients after providing the evidence of shipment, he contacts his bank to request him to lodge the documents. He then provide the request letter with sale contract to grant him finance & this department grant him finance (90% value of commercial invoice).“Imports and exports department”Exports:Introduction and registration:Imports and exports act 1950 have empowered the federal Govt to control the import and export in Pakistan. Pakistan is developing country and like other developing countries its imports exceeds than exports. To control this situation the registration of import and export has been made obligatory under the registration order 1993. The authority of registration has been given to export promotion bureau. No importer andexporter who has no granted registration shall indent, import and export of any good into or out of Pakistan. The requirements for getting registration are as under:Application form.Photocopy of I.D card.Copy of memorandum and article of association (in case of limited company).Ownership deed of office.Fee payment.Certificate of incorporation.Applicant should regular taxpayer.The major exports from Pakistan are surgical goods, sports goods hand noted goods, leather goods, textile goods, etc.Export procedure:All the exports work under the imports and exports act that is changed by the state in every year. When the importer send the L.C to bank in respect to import or when the L.C comes to the advising bank from the issuing bank then the concerned officer allot the number to the L.C and get register ed. The concerned officer write down the name ofissuing bank and the party name in a register and intimate the party about L.C. the exporter after receiving the L.C from bank will prepare the documents as per the L.C usually the following documents have to be prepared by the exporter:Bill of ladingCovering letterE- FormBill of exchangePacking listCommercial invoiceQuota documents in case of quota countryCertificate of originSpecial custom invoiceThe export form (E-FORM) :E-FORM means “export for m” which is the first and foremost requirement for the exports from Pakistan. It is control instrument by Govt of Pakistan by which it monitors the receipts from exports and checks the goods that are transfer red without foreign exchange. all banks which are engaged with the foreign exchange are required toprint and maintained the E form that is checked by the state bank of Pakistan. For export an e form is issued by the bank on the request letter of a company. Two separate registers are maintained by the bank one for his use and the other one are for the requirement of the SBP. On issuance of E forms the banker lists it in the register and makes sign fromthe exporters. Banks record the name of party, amount, the goods description, port of destination, importer name port of loading etc.The functional utility of E-FORM:The export for m has four copies. The exporters and banks use it. Without it the exporter can not make export. These copies are used as:Original copy is for SBP that is checked by the higher authority.Duplicate copy is for the bank use that is upraised by the custom authorities.Triplicate for the use to report of SBP at the time of payment received.Quartiplacte is for the company used.Usage of E- FORM:E- FORM is an important document for export. It has its own importance such asthis for m is used as a checker means it monitor that what things are going abroad and in return what things we are getting. So it creates a check and balance on the foreign exchange. It shows the total quantity and quality of the goods that is sending to another country. An E –Form shoe the party worth that is very helpful for the party and the bank.Bank can create a party limit for the credit on the behalf of it and a party can arrange a loan for its future requirements from the bank. It shows the terms of payment by the importer and the deliver y terms by the both parties that is helpful in case of any discrepancy during the contact.Short shipment notice:A shipment may be cancelled by the importer or exporter due to many reasons.The cancellation of the export letter is called short shipment notice. In this situation the company has to inform the bank. Company has to give a written letter to the bank that he is not the export so please cancelled their e form. On the other hand bank at the time of receiving the letter will stop the e for m and cancelled the all documents.IMPORTSImports regulation:Import is being regulated by the ministry of commerce and the government of Pakistan under the import and export act:Categories of imports:Imports are classified into the following categories:Commercial sector importsIndustrial sector importsPublic sector importsRegistration of importers:A person who wants to approach the bank for importing goods from abroad, he should have to get himself registered with the export promotion bureau under registration of imports and exports act. He must fulfill the following conditions before getting himself registered:NIC NUMBERNATIONAL TAX NUMBERMEMBER OF REGISTERED ASSOSITATIONDocumentary letter of credit:A documentary letter of credit is an instrument or document issued by the bank on the behalf of a customer, authorizing a beneficiary to draw a draft and drafts or sometimes the requirement of a draft, which will be honored, on presentation by the bank if drawn accordance with the te3rm and condition specified in the letter of credit. It is the written undertaking by the bank (issuing bank) pay to the seller (beneficiary) at the request or as per the instruction given by the opener (applicant) pay at sight or at the future date, a stated sum of money against the required documents. The documents include the commercial invoice, certificate of origin, insurance policy or certificate and the documents of transport relating to the mode sending goods. L/C is therefore is an arrangement of security for the parties. The conditional guarantee is related to the documents only and not on the underlying goods or services.“ Establishment of letter of credit”Procedure:The person applying for the letter of credit must be registered with the EPB. The opening bank verifies this registration or other wise exemption. This is mentioned in the “I” form. The importer also shows the valid certificate of an organization membership. A category pass book is issued by the EPB for registered importer specifying his category. This book is centralized by the centralized banks in the city. It is not necessary for the bank to hold the original copy of the pass book of all the importer s. But some times the importer gets L.C from more than one bank so the bank have to hold the photo copy of this pass book. The applicant can get the application from any branch of the Habib Bank Limited. However only some branches are authorized to open L.C. That branches how are not authorized have to contact with the authorized branches to open an L.C. The authorized branches in such case require the certificate from the applicant branch that the required formalities are fulfilled and the approval was obtained with required margin.For establishment of letter of credit, the importer requests the opening bank with the following documents:1) Application and agreement form IB-8:Credit application form is an agreement between the bank and the customer on the basis of which the letter of credit is opened. This form contains the undertaking of the importer that get the documents from the bank at the mark up price. It contains the following information:Name and address of importer.Name and address of exporter.Amount in foreign currency.Terms of credit.Description of goods.Origin of goods.Port of loading and discharge.Last date of shipment.Foreign bank charges.Terms of shipment. (Partial shipment or transshipment)Insurance cover note, policy no, and name of insurance company.Forward booking.Mode of transmission.Import registration no.Any other documents required.Detailed documents.2) Performa invoice/ purchase order:A Performa invoice is quotation of seller containing the description and the specification of the goods, price, and terms of the sale. Sometimes the exporter has their agent in the country. The agent must be registered from the EPB.3) Insurance cover note:All the goods imported under the documentary credit must always be insured. In accordance with our country import policy, insured must be issued by a Pakistani insurance company or the foreign company operating in Pakistan and such company must be approved by the bank. Insurance covered based on the following:It is issued in the name of issuing bank A/C importer.The rider should cover against war.The port of shipment and the port of destination.Amount of premium prepaid.Shipment period.The description of goods should be the same as per the form.4) Appendix B:This Per forma replaces the import license and is submitted along with L.C application for m duly filled in triplicate. It is conditional undertaking that the imports goods are not banned, not smuggled. It is also an undertaking that if the bank is unable to arrange the said currency the importer have to purchase it from other banks or from any other place. It includes the details and description of goods, codes, class, type, source of import, country of import, Performa invoice no etc.5) “I” FORM:This for m is used at the time of retirement of documents against L.C established earlier for reporting to the transaction to SBP through the bill of entry deptt. It has four copies that is used as follows:Original is for the use of SBP.Duplicate for the authorized dealer to be used for processing exchangecontrol.Triplicate for the authorized dealer record.Quartiplacte is for the submission in SBP in the case of import where thedocuments are not retired.Approval for establishment of letter of creditAfter scrutiny of the documents, IB-8 along with attached documents is put before the corporate head for approval. If the amount of application exceeds the power of the corporate head the branch concerned prepared the memorandum for the corporate banking head for obtaining his approval.In case party enjoying regular limit, the L.C is established without adopting the procedure mentioned above. However the amount of L.C should not exceed the regular limit.Types of letter of credit:1) Revocable credit:The letter of credit that can be cancel with the consent of importer, without giving any prior information to the exporter.2) Irrevocable letter of credit :The letter of credit that can be cancelled by the mutual consent of the both parties. Only one party cannot cancel it.3) Irrevocable confirmed letter of credit:When an issuing bank authorizes and or request to another bank toconfirm his irrevocable credit and adds its confirmation. Such confirmation constitutes a definite undertaking of such bank in addition to that of the issuing bank.There are following other letter of credits:1. Revolving Credit2. Transfer able Credit3. Back to Back Credit4. Green Clause Credit5. Red Clause Credit6. Clean Documentary Credit7. Transit Credit8. Stand by Credit9. Sight Cr editParties to a credit:The applicant:The applicant of the letter of credit is called the importer or buyer . The buyer requests to the bank to open a documentary letter of credit in favor of the seller.Opening bank (issuing bank or importer bank):At the request of the importer an issuing bank issues a credit under theinstructions in the favor of the seller.Advising bank:An advising bank is a bank in the seller’ s country. The issuing bank forwards the advice of the credit by mail or by any mode to the correspondent bank in the exporter country as instructions of the opener.Beneficiary ( exporter):The person or body receiving the letter of credit from the importer that is opened in favor of him.Confirming bank:The bank that on the requests of the issuing bank adds confirmation to a credit. It is definite undertaking of the confirming bank, in addition to the issuing bank.Negotiating bank:It May or may not be the advising bank. An authorized bank that gives the value to the draft for processing and payments.Reimbursing bank:Reimbursing bank is the bank, which on the behalf of the opening bank, honors the Reimbursing claim lodged by the negotiating bank.Modes of payment:Sight letter of credit:The seller submit all the documents with draft in the importer countryComplying with the all terms and conditions. The payments are made on the presence of the documents.Usance letter of credit:Under these circumstances it is agreed that the payment will be made after a specified period. So the payment is made after or on the expiry of that date.Risks for importer and exporter:Importer’s risks:He does not know the seller.He does not know that goods will be delivered in time.He does not know how to check the goods.Exporter’s risks:He does not know the buyer.He does not know the credit worthiness of the buyer.He does not wait for payment.He does not wait for exchange control.Buyers and sellers obligations:The seller’ s obligations:Provision of goods as per contract.License authorization and formalities.Contract of carriage and insurance.Delivery at time.Transfer of risk.Division of cost.Notice to buyer.Proof of delivery.Good checking mar king and packing.Other obligations.Buyer’s obligations:Payment of price.License authorization and formalities.Contract of carriage and insurance.Taking Delivery at time.Transfer of risk.Division of cost.Notice to seller.Proof of delivery.Inspection of goods.Possible problems in international trade:Non-payment.Delay in delivery.Financing, how and against what.Currency restrictions.Regulator y restrictions.Documentation and mode of settlement.ICC rules and INCO terms.H UMAN RESOURCE DEPARTMEN TFUNCTIONAL RESPONSIBILITIES:Right Now the responsibilities assigned to HR department at Corporate Centercan be categorized under three heads:Staff matters / Basic HR FunctionsExpenses controlSecur ity mattersNow I’ll discuss these one by oneBackground:The banking council of Pakistan was responsible for the recruitment, selection and allocation of human resources. After the dissolution of the Pakistan Banking Council, the Banking & Financial Services Commission of Pakistan is responsible for these activities.Procedure:Staff requirements are met according to the changing needs of macro environment scenario and particularly the arising needs of the bank itself. A need analysis is conducted. After assessing the human resources requirements and screening of the applications, most probably, the suspects are invited for a written test. Short listed candidates are called for an interview for personality and social appraisal. Interviews are a mix of direct and indirect interviewing techniques and information required. The selected candidates are sent for training of six months training from MDI’s. The training is through the lectures regarding banking procedural guidelines and other behavioral aspects. After the completion of training employees ar e allocated to different offices. The effective management of people in an organization requires an understanding of motivation, job design, reward systems, and group influence.RecruitingRetentionSuccession planningRisk ManagementDiversity in our workforceManagement informationProgressive compensation and benef its design and implementationEmployee communications and relationsCREDIT & ADMINISTRATION DEPARTMENT”The responsibility of providing administrative support for the lending activities of the Bank, and day- to-day monitoring of credit-exposure, is vested in the Credit Administration Department (CAD).FUNCTIONAL RESPONSIBILITIES:The main r esponsibilities under this department are:Implementation of credit facility and their maintenance according to terms of credit approved.Ensure that standard loan documentation for each credit facility is maintained and the correctness & completeness of such documentation and also responsible for custody of all credit files. Maintain the safe custody of all collateral as per bank’s standard operating procedures; undertake periodic evaluation and inspection of hypothecated/ pledged inventories in accordance with the terms of credit. Ensure compliance with Institutional credit policies & procedures Local regulatory requirements.Prepare various portfolio composition reports and other documentation for submission to GRM’s & RM’s.CREDIT FACILITY IMPLEMENTATION PROCEDURE:Upon approval of credit proposal, the credit proposal and approval are handed over to CAD. Now CAD determines the nature of documentation required and on receipt of same ensures that all legal documents are obtained and are legally enforceable. After all these activities it can release the facility for utilization.MARKETING DEPARTMENT:CUSTOMER DEALING:HBL corporate center only deal with the following categories of business:The organization that have minimum 250 million sales in a year.The organization that have availed 80 million finance Agri based industry.HBL do not deal with the agr iculture sector.PROCEDURE FOR CREDIT APPROVAL:It is the responsibility of the relationship manager to provide or fulfill the requirement of the customer by checking his financial and position. The procedure of credit approval starts with the credit proposal. First of all the customer request to the bank for credit and on the behalf of him the RM check the memorandum. TheMemorandum includes:The company information.Purpose of credit.Assessment of management.Risks.Financial analysis.Third party or other bank information.Conclusion and recommendations.Then the RM sends it to the authorities who accept or reject the proposal. If they acceptthe proposal they announced a credit range for the party. At the end RM sends the proposal to CAD deptt custody and check.EXCESS FACILITY CREDIT BY RMRelationship manager is authorized to provide the excess facility to the customer than the credit line. I t may be up to 10 per cent of excess amountOR12.5 million Whichever is less?It is not more than 15 days if the customer wants to increase this facility he has to contact with the head off ice.TYPES OF CREDIT FACILITY: 1) fund based:It is first type of credit facility. In this facility the bank actually provides fund to customers. 2) non fund base:Second type of credit facility that does not provides fun but only give the guarantee. If the customer is unable to make the payment at maturity date then bank will be responsible to make the payment. PLAN OF INTERNSHIP PROGRAMMEEvery body knows that knowledge does not increase without practice .practice is an important mean to improve the knowledge. Therefore university provides internship programmed of six to eight week in different or ganization during MBA so that we could able to apply in theoretical concepts to practical. I started internship on 5th may to 25thJune in water works road branch of habib bank.Work done by me in HBL in different departments:1. Account opening department.2. Data punching department.3. Public dealing department.ACCONTS OPENING DEPARTMENTIn this account department I gain the particle knowledge about opening. This department deals with opening account and saving account for its customer and all matters regarding there off. The customer opening account/saving accounts can be categorized as following:1) individual2) firm3) company4) trust5) staff6) othersOPENING AN ACOOUNT:In order to open an account first of all the customer has to fill a form prescribed by the bank. The per son is required to bring some reference or introduction for opening the account. Introducer may be a person who has an account with HBL. Some important information regarding introducer e.g. the name and account number of the introducer is written on the space provided on the specimen signature cards. Then in order to find out whether he is a true introducer or not a letter is sent to him thanking him for this introduction, so that any thing wrong may come into notice.There are different requirement for different types of accounts and account holders. An important thing is that the customer should have a corporate customer. The corporate customer limit is 40 million and this branch always deals the corporate customer.General rules for opening an account:One person can open only one account in the same branch with the samecategor y. In the event of death of an account holder the credit balance will be transfer to the heirs of the diseased individual account. Services charges will be deducted periodically as prescribed from time to time on the accounts that are under the limit of specific account. Services charges are not applicable on that accounts that are prescribed as exempted. A distinctive number will be allotted to the each account. The bank can close those accounts that are under the minimum limit of the bank. Any sum to be deposited in the account should be accompanied by paying in slip showing the party account number and the name. Account holder can only withdraw the sum of money by his own account cheque. Cheque should be signed by the account holder by the specimen given by the bank. Post dated and defective cheque is not accepted. If statement of account spoiled a new will be issued on cost. Any change in the address should immediately communicate to the bank. The account holder wishing to close the account must surrender the cheque book.Account may be transfer from one branch to another same branch without any charges etc.Data punchingData punching means feeding of data collected into the computer daily or weekly. We punch data daily which include in the account. First, we enter transaction of customer on the basis of buying and selling daily in the customer account then we punch customer data one by one according to dates and sequence. Through data punching, we can easily transfer the data and money to another account and determine the account information. after debt and credit amount, we punch data according to their account in the computer so that we could check data easily. We make cash debit vouchers.cash credit vouchers,sundry debtor and sudry credit vouchers,transfer vouchers,internal account vouchers ,cr oss branch vouchers. We give detail in the system .these allPublic dealingPublic dealing means have good behavior with the public for increasing efficiency and growth. Bank deals with the customer and provides information of accounts and others which relates to the accounts. Bank guides that how to open account and forms fill to open new account. Bank issues cheque to the customer for opening new accounts. Bank asks to the customer about their needs and requirements and fulfill on time.HBL FX PRODUCTSHBL FX comprising of InterBank Desk and TMU provides its customers a whole spectrum of FX Products available in the Market .HBL's extensive network of branches and correspondents all over the world and volumes in most of the active currencies in the market ensure best possible rates and smooth delivery across the globe for all types of FX Clients. The products offered are: | | | | Ready Purchase/Sale | | Forward Purchase/Sale (Import/Export) | | Outright Forward Sale (OFS) | | Outright Forward Purchase (OFP) | | Foreign Bill Discounting (FBD) | | Foreign Currency Finance (FCF) | | Foreign Currency Import Finance (FCIF) | | Foreign Currency Bill Purchase (FCBP) | | | | | | Ready Purchase/Sale | Treasury Marketing Unit (TMU) provides all corporate and commercial customers up to date market rates for all transactions equal or equivalent to US $5,000/- and above in the third currencies as well. Rates on the rate sheet are applicable for amounts less than US $5,000/- or equivalent.

In addition to the ready transactions, customers can book their forward exposure through forward sale/purchase transaction for which the rates are provided by treasury. | | | | | Forward Purchase/Sale (Import/Export) | Customers can book their Forex exposure in the forward to hedge themselves against any volatility in USD or any other currency. The forward can be booked till six months both with full and fixed option. | | | | | Outward Forward Sale (OFS) | Importers with specific L/Cs can book rates on their forward commitments to avoid rate volatility and fluctuations. | | | | | Outward Forward Purchase (OFP) | Exporters can book rates for their documents whose proceeds are to be received in the future whether it is against an L/C or Contract. The facility helps protect the exporter against unfavorable rate movement and can use it as a hedging instrument. | | | | | Foreign Bill Discounting(FBD) | Customers can present their export bills and avail rupee facility the same day. The bank purchases the documents and gets dollars as per maturity of bills ranging from 12 days to 180 days. All deals irrespective of the amount/currency regarding needs to be registered on telephone with the TMU. | | | | | Foreign Currency Finance (FCF) | Foreign Currency Finance (FCF) facility is the product developed for Exporters to take advantage of loan in foreign currency on LIBOR based interest rate for the period of maximum six months. | | | | | Foreign Currency Import Fiannce (F | Foreign Currency Import Finance (FCIF) facility is the product developed for Importers to take advantage of loan in foreign currency on LIBOR based interest rate for the period of maximum six months. This facility is obtained against DA or Sight L/C and can be adjusted within the financing period on the prevailing spot rate. | | | | | Foreign Currency Bill Purchase (FCBP) | FCBP facility is offered to our export customers with outstanding foreign currency finance. The loan is adjusted by discounting the bill amount of the export document with respect to the specified tenor at LIBOR plus spread. | | |

Similar Documents

Premium Essay

Hbl Internship Report

...for free. f. HABIB BANK LIMITED PAKISTAN INTERNSHIP REPORT ... vustudents.ning.com/.../fini619internshipreportfinance/.../habib-bank-li...‎ Dec 15, 2011 - HABIB BANK LIMITED PAKISTAN INTERNSHIP REPORT FINANCE See ... Selection for Spring 2014 (Classes Commencement Date: Monday, ... ALLAMA IQBAL OPEN UNIVERSITY: AIOU Internship Reports aiou-islamabad.blogspot.com/2011/05/aiou-internship-reports.html‎ Dear Students Get mba internship reports, AIOU Islamabad report, VU reports, ... 2009, ALLIED BANK INTERNSHIP REPORT NEW, INTERNSHIP REPORT ON ... Summer internship report sales and promotion strategy ... www.gobookee.org/summer-internship-report-sales-and-promotion-strat...‎ Summer internship report sales and promotion strategy download on ... -d631-413f-8bb0-7a34785b645f/0/entercomfebruary2014jobposting.pdf. 0 0 0 .... http://ustbannuinternshipreports.files.wordpress.com/2012/10/hbl-internship-report.doc. HBL HRM INTERNSHIP REPORT BY UMME FARWA - VU Education vueducation.com/Thread-%09HBL-HRM-INTERNSHIP-REPORT-BY-U...‎ HBL HRM INTERNSHIP REPORT BY UMME FARWA.pdf (Size: 374.37 KB ... calendar spring 2014 http://vueducation.com/Thread-virtual-un...pring-2014. HRMI619 Internship Report Human Resources Management schoolhelptoday.com/hrmi619-internship-report-human-resources-mana...‎ Dec 11, 2013 - If you are looking HRMI619-internship report then you are now at the right place. ... Internship Report HRM on Habib Bank Limited HBL ... project cs619 · vu final project......

Words: 281 - Pages: 2

Premium Essay

Internship Report on Hbl

...AN INTERNSHIP REPORT ON [pic] HABIB BANK LIMITED SUBMITTED TO Mr.nazik hussain SUBMITTED BY Beenish Ameer Roll #07 BBA(HONS) Morning SESSION 2009-2013 DEPARTMENT MANAGEMENT SCIENCES [pic] Islamia University Bahawalpur IN THE NAME OF ALLAH WHO IS THE MOST BENEFICENT THE MOST MERCIFUL PREFACE Internship is the one of the part of BBA programmed and this provide the practical knowledge of what students read about business in their books. The field of banking has always been a source of inspiration for me during my entire academic career. To work in a bank, to acquaint with its working mechanism was always a point of interest for me and God gave me a golden opportunity to complete my internship at HBL, one of the leading bank in Pakistan and well known in world due to its appearance in the international markets. I had a general idea about the banking, but once I practically started the internship in banking field I observed much about banking. To adjust myself in such a large commercial organization was not an easy task, but by the grace of Almighty Allah aids my internship in a befitting manner and I learned a lot......

Words: 11525 - Pages: 47

Premium Essay

Internship Report on Hbl

...INTERNSHIP REPORT ON HABIB BANK LIMITED PAKISTAN SUBMITTED BY: MUHAMMAD IRFAN ALI LOGID: mc070402338 Phone# 0313-6747208 Mail address: syedirfanmw@yahoo.com & mc070402338@vu.edu.pk Address: Ward # 2 Mohala Chah Kurai MBA (FINANCE) 2007-09 SUPERVISED BY: MAHER AMEER MUHAMMAD DATE OF FINAL REPORT 10-04-2009 to 10-06-2009 NAME OF THE UNIVERSITY VIRTUAL UNIVERSITY OF PAKISTAN 1 2 3 4 5 6 7 DEDICATION Allah Almighty ( whose claim (to obedience) cannot be satisfied by those who attempt to do so”) & His Beloved People. 1 ACKNOWLEDGEMENT Thanks to ALLAH Almighty for giving me such a beautiful opportunity and enabling me to complete my project. Thanks to my loving parents and guardian who help me a lot at every phase of my life, encouraged me in the days of depression and sacrificed for my better future. I am very thankful to Mr. Maher Ameer Muhammad my supervisor, who has helped me a lot in finding an appropriate project and for his reviews, encouragement, and support. I am thankful to all of my teachers and my class fellows and friends whom Cheerfulness and guidance is an asset for me .I am......

Words: 19114 - Pages: 77

Premium Essay

Hbl Recruitment Process

...Process of Habib Bank Limited by AYESHA HASSAN Habib Bank Limited 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 bank with over 1,500 branches and 1,200 ATMs across the country and a customer base exceeding five million relationships. The Government of Pakistan privatized HBL in 2004 through which AKFED acquired 51% of the Bank's shareholding and management control. HBL is majority owned (51%) by the Aga Khan Fund for Economic Development, 42.5% of the shareholding is retained by the Government of Pakistan (GOP), whilst 7.5% is owned by the general public i.e. over 170,000 shareholders following the public listing that took place in July 2007. With presence in 25 countries, subsidiaries in Hong Kong and the UK, affiliates in Nepal, 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. Rating HBL is currently rated AAA (Long term) and A-1+ (Short term) with 'Stable'......

Words: 1195 - Pages: 5

Premium Essay

Internship

...professional courses. BBA is four years international standard program consisting of eight semesters along with internship program. Thus, BBA program is a blend of theoretical and practical knowledge on the financial sector enabling the students in understanding business environment and solving practical business problems. It also aims to develop creative, socially responsible and skilled professionals who are able to carry out the responsibility of middle level managerial positions in the rapidly growing business sector in Nepal as well as abroad. Theoretical knowledge is not sufficient in this competitive and complex business world. Thus, in the eight semester of BBA program, student is required to work in financial institution for at-least eight weeks, where they can experience real situations of work environment in the organization. It also helps in understanding organizational environment and work culture. Internship program enables in acquiring skills and techniques by experiencing practical work situations directly applicable to develop career on financial sectors. It may also create the opportunities for placements in the same host organization or other organizations. 1.2 Objective of Report After the completion of internship program, it is required to prepare the report to be acquainted with what the student have learnt in the host organization over the internship period. It helps to share the experience of student along with problem faced by them. The main......

Words: 4847 - Pages: 20

Premium Essay

Habib Bank Limited

... THE MOST MERCIFUL, THE MOST BENIFICIENT   DECLARATION Internship report submitted to the Department of Management Sciences, Lahore College for Women University, Lahore in partial fulfillment of the requirement for the degree of B.com DEDICATION I dedicate this internship report to my parents and teachers without their help and guidance I would not have been possible to complete this report. ACKNOWLEDGEMENT This report could not have been complete without the passion I had given by Allah and does not require any thanks on paper, as He knows all I have to say……….. “Praise to Allah, lord of the world, most beneficent, lord of the Day of judgment, we only we worship, and the only we asked for help, show us the straight path, the path of those whom thou hast favored. Not the path of those who earn thin wrath nor of those who go astray”   Table of Content Content Page No Chapter 1 Executive Summary Historical Background Economic Landscape Vision Statement Mission Statement Vales Culture Goals Objectives Future Outlooks Chapter 2 Organizational Structure (Organizational Chart) Managing Directors OF HBL Board of directors Board committees Corporate Profile Domestic Branch......

Words: 14182 - Pages: 57

Premium Essay

Business and Administration

...INTERNSHIP REPORT ON HABIB BANK LIMITED PAKISTAN SUBMITTED BY: MUHAMMAD IRFAN ALI LOGID: mc070402338 Phone# 0313-6747208 Mail address: syedirfanmw@yahoo.com & mc070402338@vu.edu.pk Address: Ward # 2 Mohala Chah Kurai MBA (FINANCE) 2007-09 SUPERVISED BY: MAHER AMEER MUHAMMAD DATE OF FINAL REPORT 10-04-2009 to 10-06-2009 NAME OF THE UNIVERSITY VIRTUAL UNIVERSITY OF PAKISTAN 1 2 3 4 5 6 7 DEDICATION Allah Almighty ( whose claim (to obedience) cannot be satisfied by those who attempt to do so”) & His Beloved People. 1 ACKNOWLEDGEMENT Thanks to ALLAH Almighty for giving me such a beautiful opportunity and enabling me to complete my project. Thanks to my loving parents and guardian who help me a lot at every phase of my life, encouraged me in the days of depression and sacrificed for my better future. I am very thankful to Mr. Maher Ameer Muhammad my supervisor, who has helped me a lot in finding an appropriate project and for his reviews, encouragement, and support. I am thankful to all of my teachers and my class fellows and friends whom Cheerfulness and guidance is an asset for me .I am......

Words: 19114 - Pages: 77

Premium Essay

Report

...TABLE OF CONTENTS 1. Introduction………………………………………………………………. 01 2. Objective of Studying the Organization…………………………………. 06 3. Overview of Organization……………………………………………….. 07 1. HBL History………………………………………………………… 08 2. Nature of Organization……………………………………………… 09 3. Business Volume……………………………………………………. 10 4. Profile of Employees……………………………………………….. 12 5. Product Lines……………………………………………………….. 15 4. Organizational Structure of HBL……………………………………. 23 1. Main Offices……………………………………………………….... 24 2. Marketing Operations……………………………………………….. 26 5. Structure of the Marketing Department………………………………….. 27 1. No of Employees Working In Marketing Department………………. 28 2. Marketing Strategy…………………………………………………… 31 6. Function Of Marketing Department……………………………………… 33 1. Product Planning, Development & Management……………………. 34 2. Pricing Strategy………………………………………………………… 37 3. Distribution Strategy…………………………………………………. 39 4. Promotion Strategy…………………………………………………… 40 7. Critical analysis of the theoretical concepts……………………………… 42 8. Success and Failure of Different Product ……………………………….. 43 9. Major Competitors of the Organization …………………………………. 43 10. Future Prospective Of the Organization…………………………………… 44 11. Critical Analysis of The Management Patron Reference To Market Operation, Weakness…………………………………………………… 45 12. Conclusion/Recommendation…………………………………………….. 46 13. Reference & Source Used………………………………………………….. 47 1.......

Words: 5678 - Pages: 23

Premium Essay

Hbl Assignment

...[pic] MANAGEMENT PROJECT PRESENTED To: Miss.Shumila Gul PRESENTED BY: Amna Zafar F07B055 INSTITUTE OF BUSINESS AND INFORMATION TECHNOLOGY Table of Contents Introduction 4 ▪ History ▪ Background ▪ Present status ▪ Privatization ▪ Economic landscape ▪ Financial highlights Organization’s profile 8 Branch network Vision Mission Hierarchy Chart 13 Managerial function 14 ▪ Planning ▪ Organizing ▪ Leading ▪ Controlling SWOT Analysis 15 Decision Making and Policy Making 16 ▪ Centralized ▪ Decentralized ▪ Decision Making Process ▪ Mangers Decisions Management Styles and Policies 18 ▪ Collective Participation in Decision-Making ▪ Employee Participation ▪ Delegation of Power ▪ Control Function Organization Structure and Design 19 Omnipotent or Symbolic View of management 21 Culture of the organization 21 ▪ Dimensions of Organizational Culture ▪ The Source of Culture ▪ How Employees learn culture ▪ Innovative culture ▪ Customer-responsive culture ▪ Focus on individual development ▪ Trust and openness ▪ Employee’s Empowerment ▪ Toleration of Employees Expression The Environment ...

Words: 4497 - Pages: 18

Premium Essay

The Research Paper Factory

...Internship Report On Loan Processing, Credit Appraisal, Follow-Up &Recovery Procedure of IFIC Bank Limited Internship Report On Loan Processing, Credit Appraisal, Follow–up & Recovery Procedure Of IFIC Bank Limited Prepared For: Mohammad Tanvi Newaz Assistant Professor, BRAC Business School BRAC University Prepared By Nafisa Marzan ID: 10304087 BRAC Business School Major in HRM & Finance BBA (Summer 2014) Date of Submission: 10September, 2014 Letter of Transmittal Date: 18th September, 2014 Mohammad Tanvi Newaz Assistant Professor, and Coordinator, MBA Program BRAC Business School BRAC University Subject: Submission of Internship Report on “Loan Processing, Credit Appraisal, Follow – up& Recovery Procedure of IFIC Bank Limited”. Dear Sir, With due respect and humble submission, I like to state that I have completed my Internship report on “Loan Processing, Credit Appraisal & follow-up Recovery Procedure of IFIC Bank Limited”. The internship program has given me the opportunity to learn about different aspects of this well reputed organization. Before facing the corporate world, I have gathered general idea about the organization culture and activities. Without sincere cooperation and proper guidance of you it was not possible for me to prepare this report. For this act of kindness, I am grateful to you. I have tried my best to make this report as informative, practical, reliable and relevant as Possible. In preparation of this...

Words: 17010 - Pages: 69

Premium Essay

Ibbl Corportae Strategies & Implementation

...Internship Report ON GENERAL BANKING AND MANAGEMENT INFORMATION SYSTEM (A STUDY ON UNITED COMMERCIAL BANK LIMITED) Course Code: BAN- 400 Course Title: Internship & Viva Prepared To: Md. Abdul Hamid Lecturer Businesss administration department Shahjalal University of Science & Technology, Sylhet. Prepared by: Md. Hedaitul Kabir BBA (Marketing) 4th Batch Reg No-2001731012 Date of submission: 06/11/2007 Shahjalal University of Science & Technology, Sylhet-3114 LETTER OF AUTHORIZATION This is certify that, this internship report on General banking and management information system a study on United Commercial Bank Ltd .Has been prepared by Md Hedaitul Kabir, reg no- 2001731012, Business administration department , 4th batch, sincerely and under my close supervision. I wish his all progress and success. Md. Abdul Hamid Lecturer Business administration department Shahjalal University of Science and......

Words: 16376 - Pages: 66

Premium Essay

7 P's of Service Marketing for a Bank

...Marketing of Banking Services (Case of Prime Bank Ltd. )   CHAPTER 1 Introduction 1.1: BACKGROUND OF THE REPORT Internship program is a pre-requisite for acquiring BBA degree in UIU. Before completion of the program, every student must undergo the internship program or a research work. It is mandatory because classroom discussion alone cannot make a student outstanding in handling the real business scenario. This is an opportunity for a student to learn about the real life situation and how to act accordingly. Another purpose is to know about the rules, regulation and environment of an organization before getting a job or starting a business. Such experience may facilitate a student to have a better job or get success quickly in a business. A report is to be prepared to summarize the findings through observation, and practical work after the internship period. The report titled “Marketing of Banking Services: Case of Prime Bank Limited” is based on the learning from the internship period in Prime Bank Ltd, Shimrail Branch. It contains a concrete idea about the marketing pattern of the bank mainly with the help of observational study from the perspective of 7P’s of services. I will also discuss the other banking activities of the branch. 1.2: ORIGIN OF THE REPORT This report titled “Marketing of Banking Services” is prepared fully on academic basis. It is a mandatory requirement as a part of internship for BBA program completion under the school of business of UIU. This......

Words: 20620 - Pages: 83

Premium Essay

Mcb Internship Report

...INTERNSHIP REPORT ON MCB BANK LIMITED PREPARED BY FAIZA IQBAL BBA (HONS) MORNING DEPARTMENT OF MANAGEMENT SCIENCES Internship Report|2011| || Practice makes a man perfect. Theoretical knowledge is not enough on its own. It is useful when implemented. That’s why it is necessary for completion of BBA program to do practical work. Internship program is also held in every management institution to support the same purpose. Banking plays very important role in the development of commerce and economic fields of a country. As banks are using different modern and up to date technologies in order to perform well and influence different managerial activities, it is a better option for business students to get internship experience in banks. I did five weeks internship in MCB BANK Model Town Branch, Bahawalpur. During this time I visited different departments and was thoroughly briefed about the procedures and working by friendly senior staff of there. In preparation of this Report I have tried my best to provide all possible information about the operations, functions and tasks of MCB in brief and comprehensive form. It also includes a brief view of what I did during internship. Internship report ends with some recommendations and concluding remarks after identification of problems that I observed during internship. Although I have put all my efforts but surely there are chances for mistakes,......

Words: 9835 - Pages: 40

Premium Essay

Intern Report on Nbl

...supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within a business. So, assessing the level of customer satisfaction actually helps to measure an organization‘s position in business. I am doing my internship in National Bank limited with rotation on different desks which includes Accounts Opening, General Banking, Retail Banking, Clearing, Remittance, Loans and Advances etc. In this report “The Customer Satisfaction on different services of National Bank Limited”. I will focus on various aspects of this Bank. Since they are standing at good position among the private banks, their financial position, market shares, marketing mechanisms, overall strengths and weakness, objectives, goals will be cross examined for analyzing the fact that how they were and how they will be in future. Various types of analysis will help us to understand the comparative position and a transparent picture of this Bank that will help us to draw any comment at a glance. As I am directly in touch with customers, the report will deal with the service quality and customer satisfaction of National Bank Limited. A survey will be conducted on the customers of National Bank Limited. The objective of this report will be to determine how well National Bank Limited is satisfying the customers on different service grounds. Various important issues of customer satisfaction will be presented in light of the findings of the survey. Lastly, the findings will be......

Words: 15806 - Pages: 64

Premium Essay

Crediy Risk Management

...Chapter – One Introduction 1. Preclude Credit is an arrangement whereby bank acting at the request and on the instructions of a customer or on its own behalf to make a payment to or to the order of a third party or is to accept and pay bills of exchange drawn by the beneficiary. In an economy banks play the role of an intermediary that channels resources from the surplus group to the deficit group. So obviously one of the core functions of Commercial banks is to sanction Credit facility to it’s customers as per requirement. UTTARA BANK LTD. Bank’s Mission is to actively participate in the growth and expansion of our national economy by providing Credit to various customers in most efficient way of delivery and at a competitive price. Risk is inherent in all aspects of a commercial operation; however for Banks and financial institutions, credit risk is an essential factor that needs to be managed. Credit risk is the possibility that a borrower or counter party may fail to meet its obligations in accordance with agreed terms. Credit risk therefore, arises from the bank’s dealings with or lending to corporate, individuals and other banks or financial institutions. In general, a banking system aggregates a high number of low value deposits to fund enterprises with a smaller number of high value loans. This intermediation through a well functioning bank helps to achieve some economic benefits for the depositors, the borrowers......

Words: 6885 - Pages: 28