BRAND & HISTORY

On 25th of August 1941, Habib

Bank inaugurated its operations
with the bank’s first branch in
Bombay. Impressed by its initial
performance, Quaid - e -Azam

Mohammed Ali Jinnah asked the

Bank to move its operations to
Karachi after the creation of
Pakistan. HBL established itself in
the Qaid's city in 1943 and became
a symbol of pride and progress for
the people of Pakistan.
Today, HBL plays a central role in Pakistan's financial and economic
development. It has come a long way from its modest beginnings in Bombay
in 1941 when it commenced operations with a fixed capital of 25,000 rupees.

The Habib Bank Group is a leader in Pakistan's services industry. An

extensive network of 1425 domestic branches – the largest in Pakistan – and
55 international branches has enabled HBL to provide comprehensive
services that meet customer needs. This has ensured thriving client
relationships that form the backbone of the Bank’s operations.

Habib Bank has been a pioneer in providing innovative banking services.

These have included the installation of the first mainframe computer in
Pakistan followed by the first ATM and more recently, internet banking
facilities in all our 1425 domestic branches.

The Bank's towering presence in Pakistan's financial and commercial life has
remained unchanged over the decades. The strength of its brand and image is
symbolized by its prominent Head Office building that has dominated
Karachi's skyline for 35 years.
HABIB BANK VAULES

HBL is firmly grounded with a corporate philosophy that incorporates five

solid values which each individual associated with the bank abides by.

Humility
We encourage a culture of mutual respect and treat both our team
members and customers with humility and care.

Integrity
For us, integrity means a synergic approach towards abiding our core
values. United with the force of shared values and integrity, we form a
network of a well-integrated team.
Meritocracy
At every level, from selection to advancement, we have designed a
consistent system of human resource practices, based on objective
criteria throughout all the layers of the organization. We are, therefore,
able to achieve a specific level of performance at every layer of the
organization.
Team Work
Our team strives to become a cohesive and unified force, to offer you,
the customer, a level of service beyond your expectations. This force is
derived from participative and collective endeavors, a common set of
goals and a spirit to share the glory and the strength to face failures
together.
Culture of Innovation
We aim to be proactively responsive to new ideas, and to respect and
reward the agents, leaders and creators of change.
MISSION STATEMENT

To be recognized as the leading financial institution of Pakistan and a

dynamic international bank in the emerging markets, providing our customers
with a premium set of innovative products and services, and granting superior
value to our stakeholders – shareholders, customers and employees.
OVERSEAS NETWORK

HBL’s INTERNATIONAL/OVERSEAS Network is amongst the

most extensive of emerging market banks with a presence in 26 countries
through 120 offices of the Group and its affiliates. The network spans the
principal financial centers of USA and Europe, and the developed and
emerging markets in Asia, the Middle East and Africa. The Bank’s 50-year
history in the international market provides it a well-established network of
both commercial customers and correspondent banking relationships.

International Banking Group’s (IBG) principal line of business is

trade finance. HBL’s strong presence in all areas of the domestic market
combined with the extensive international network has provided the Bank a
unique ability to capture a large volume of trade flows relating to Pakistan. In
our international units we are also active in financing local third country trade
in niche segments, particularly by leveraging our network. IBG units have a
well-established customer franchise in the South Asian origin communities.
Activity with other customer segments has also been growing particularly in
emerging markets and now forms an important part of our business.

An additional strength of IBG is that all international units are

entirely self funded through stable well diversified local customer deposits or
capital which enables us to develop local commercial and, in specific markets,
consumer businesses while minimizing the inherent cross border exposures.

The year 2002 was the first full year of operations of Habib
Allied International Bank - HBL’s UK based subsidiary - which has greatly
enhanced our capabilities to serve our UK and international customers.
African operations remained buoyant largely due to HBL's established
franchise, utilization of extensive branch network of Habib Bank Limited and
Habib Nigeria Bank (HNB), which is one of the most successful banks in
Nigeria with a country wide retail network of 55 branches and a growing
presence in the corporate sector. HBL has a sizable market share in the
region, which has resulted from focused marketing efforts.

Gulf region generated improved earnings, due to participation in

large syndications, enabling utilization of liquidity in viable business
transactions. The turnaround efforts in the past few years have now been
completed with balance sheet clean up and cost structure rationalization.
In summary, IBG will continue to grow by focusing on its core strengths and
further developing synergies with our domestic businesses and within the
international network.

Identifying opportunities, while keeping a balance in

acknowledging and acceptance of diverse foreign cultures is a task that will
continue to guide and control IBG in the future.

LIST OF KEY EXECUTIVES

Mr. Aziz Rajkotwala, SEVP/MMC & Group Executive, IBG

Mr. Tulu Islam, EVP Operations & IT.
Mr. Rizwan Haider, EVP, Group Risk Manager.
Mr. Asad A. Ansari, EVP / RGM - Europe
Mr. Ashraf M. Wathra, EVP / RGM - Far East
Mr. Hamid Mukarram Baig, EVP / RGM - Africa
Mr. Mohammad Aslam, EVP / RGM - Pasific
Mr. Aman Aziz Siddiqui EVP / RGM - Gulf
Mr. Faiq Sadiq, Country Manager - New York
DOMESTIC NETWORK

Network coverage in Pakistan with respect to HABIB BANK

LTD Head Office and according to its branches……….
THE ORGANIZATION
HIERARCHY OF HABIB BANK LIMITED

PRESENTED AND CEO

BOARD OF DIRECTORS ( 7 Members)

G.E, G.E, G.E, G.E,

IOBG G.E, CPCS G.E, CIBG G.E, AGA
CPOD RBG ARM

HEAD OF HUMAN RESOURCE HEAD OF FINANCE

HEAD OF INFORMATION TECHNOLOGY

SENIOR VICE PRESIDENTS

VICE PRESIDENTS

ASSISTANT VICE PRESIDENTS

GRADE ONE(I) OFFICERS

GRADE TWO(II) OFFICERS

BANKS top MANAGEMENT

MANAGEMENT DESIGNATION
Dr. Zakir Mahmood President And Chief Executive
Officer
Khaleeq Kayani Group Executive, International And
Overseas Banking Group
Zafar Aziz Osmani Group Executive, Corporate Planning
And Organization Development
Sohail Malik Group Executive, Credit Policy And
Company Secretary
Naeem Iqbal Group Executive, Retail Banking
Group
Asad Amir Khan Group Executive, Corporate And
Institutional Banking Group
Salman A. Sheikh Group Executive, Assets Remedial
Management
Ashraf M. Wathra Group Executive, Audit And General
Administration
Khayyam Mahmood Butt
Head Of Information Technology

S. Anwar Saeed Head Of Human Resources

Mushtaq Ahmed
Head Of Finance
 BOARD OF DIRECTORS STATUS
Zakir Mahmood President And Chief Executive
Officer
Dr. Abdul Wahab
Director

Pervez Ahmed
Director

Khawaja Iqbal Hassan

Director

Shamsh Kassim Lakha

Director

Shaukar R. Mirza
Director

Ebrahim Sidat
Director

M. Riazul Haque
Director
 Ch Abdul Sattar
VP & Chief Manager

AFZAL AHMAD RAZI UL HASSAN

CHATTHA Manager Credit
Manager Operations

RIFAT IQBAL
INCHARGE ACCOUNTS
Bashir Hussnain
Officer
Muhammad Abdullah
MUMTAZ AHMAD
INCHARGE REMITANCE

Assistant
Safeer Ahmad
JAWAD AHMAD BUTT
INCHARGE EXCHANGE
Jamal Din
Muhammad Hussnain Assistant
MUHAMMAD AYUB Officer
INCHARGE CLEARING AND
ATM DEPARTMENT
Muhammad Abdullah
Non-Clerical Staff
MUHAMMAD KHALID Guards
INCHARGE DEPOSITS Commandos
Zafar Abbas

RAO TASLEEM
INCHARGE REMITTANCE
M Tahir Ayub

RAB NAWAZ BANDIAL

CUSTOMER SERVICE
OFFCICER
JAWED IQBAL BHATTI
SYSTEM ADMINISTRATOR
INTERNATIONAL BANKING

The Habib bank ltd has wide exposure in international banking.

It has global network all over the world.

INTERNATIONAL
BANKING

CASH CORRESPONDENT
HOME
MANAGEMENT TRADE FINANCE LENDING
REMMITTANCES BANKING
SERVICES

DEPARTMENTS IN INTERNATIONAL BANKIND

The following departments are functioning in international banking.

(a). Import department.

(b). Export department.
(c). Foreign currency accounts department.
(d). Foreign remittance department.
(a) IMPORT DEPARTMENT :

Import department perform all type of functions which relates

to imports which
are as under:

i). Import registration.

ii). Opening of L/C.
iii). Lodgment of documents in PAD (payment against documents)
iv). Reporting of monthly imports to SBP.

IMPORT REGISTRATION.

It is compulsory under the law for importer to be register as an importer with

export promotion bureau (EPB). The import registration is applied through
import department according to procedure laid down by EPB.

LETTER OF CREDIT.

Import department open sight DA Letter of credit on behalf of their

Importers. Letter of credit is an undertaking given by the L/C establishing
bank on behalf of the importer in favour of exporter for specified amount
available to him against presentation of completer set of document as per
terms and conditions of letter of credit this letter of credit to subject to
uniform custom and practice of documentary credit of ICC publication.

LODGMENT OF DOCUMENT IN PAD.

When the bank receive the documents from the exporter bank, the
documents are logged in PAD and the following vouchers are passed.
DR PAD
CR Foreign bank A/C.
The importer are intimated of ascent the receipt of documents who make the
payment and documents are related the bank endorse the documents in form
of importers who clear the goods from the custom authorities after paying
imports duties.
MONTHLY REPORTING TO SBP

At the end of the month on the last date all the import transactions are
reported to SBP on form I.

b) EXPORT DEPARTMENT :

Export department negotiate the simply documents prescribe by

the exporters in term of letter of credit opened by the foreign bank in for
over of exports the following documents are presented by the exporter for
negotiation.

(i). Export Registration certificate issued by EBP.

(ii). Original letter of credit issued by the foreign bank in favour of
exporter.
(iii). Bill of Exchange on DA/DP basis as specified in letter of credit.
(iv). Commercial invoices
(v). Packing list
(vi). Bill of lading B/L or airway bill (AWB)
(vii). Any other specified documents as mentioned in letter of credit .

(C) FOREIGN CURRENCY ACCOUNT DEPARTMENT :

This department open foreign currency account in three major

currency i.e. USD. Pound sterling, Douch mark these account are opened
under new foreign currency rules as lay down by SBP. Old foreign currency
accounts were freeze on 28th May, 1998. The bank pays profit from 3 to 4
percent in same currency in which the Account has been opened.

(d) FOREIGN REMITTANCE DEPARTMENT :

This department deals with the inward and outward foreign

remittance. The main instruments of foreign remittance are as under:
1). Foreign demand draft. (FDD).
 2). Foreign telegraphic transfer (FTT).
3). Foreign mail transfer (FMT).

DOMESTIC BANKING

SERVICE LINE

In today’s world of competitive business, companies often have

to come up with new and innovative products and services in order to
survive in the market and satisfy the needs of their customers. In the banking
sector especially which is quite obviously a service oriented sector, and
which has grown so much over the last few decades over here in Pakistan it
is a major requirement to be always on your toes.
In domestic banking Habib Bank limited deals with the
followings various financial transactions & provide different services to the
customer.

1) CONSUMER BANKING SERVICES:

Habib Bank Ltd. has always tried to cover for this

requirement and along with its normal consumer banking services it
has very often introduced quite a few innovative services in the
market in order to satisfy its customers. As we already know Habib Bank
Ltd. was the first bank to introduce Traveler’s Cheques in Pakistan, and the
Habib Bank Master Card was the first to be introduced in the region.

2) CASH MANAGEMENT SERVICES:

Our Cash management Services cover local and cross border
payments, collections, account services and liquidity management for
both corporate and institutional customers.
3) UTILITIES SERVICES:

For the convenience Habib Bank always stands in the way like
other banks, to provide as per standing order facilities to the customers like,
bank paid Electricity Bills, Phone Bills, Gas Bills and other utilities
expenses on the behalf of customer.

4) TRANSFERRING OF MONEY:

The bank provide facility of transferring of money from one

place to another place within the country as well as outside Pakistan the
bank receive normal changes as per their schedule of charges declared half
yearly from their customers for transferring the money. The various channels
of remittance are as under:

1 Demand Draft (DD)

2 Telegraphic Transfer (TT)
3 Mail Transfer (MT)
4 Muhafiz Transfer Cheques (TC)

5) DEALING IN DISCOUNTING OF TITLE TO GOODS :

The bills department of the branch deals with the discounting

various title to goods such as bill of lading (B/L), Railway receipt (R/R),
Truck Receipt (T/R) Airway Bill (AWB).

6) ISSUANCE OF LETTER OF GUARANTEE (L/G) :

 The bank issue letter of guarantee on behalf of their customers
financing customer authorities export promotion bureau Sui nothern gas
pipeline, other government agencies as requested by their customers.
 PRODUCT LINES

The Habib bank limited has wide range of domestic banking. In

these areas at has various product lines and perform various functions
according to the needs of the customers, which are as under:

1) AUTO FINANCE:

Habib Bank Auto Finance, offers the customer, an expedient

and economical way of fulfilling his requirement of owning the car of his
choice on his terms. Options of affordable down payments, convenient
repayment arrangements in the form of monthly rental payments, which are
tailored to the expected cash flows of the customer are some of the host of
value added features, this product offers its customers.

2) HOME FINANCE :

Habib Bank brings to you the most affordable and convenient

scheme to finance your own house. Habib Bank – House Finance, a demand
/ running finance facility to assist you in turning your vision into a reality.
With adaptable options, varying amounts and flexible tenures you can start
shifting to, building or renovating your own house in a matter of weeks!

3) HABIB BANK VALUE DEBIT CARD:

Habib Bank Value Debit Card is a secure and convenient
payment tool. It is linked to the personal Habib Bank account of the
customer. When the customer uses Value Card at outlets for payment of
daily purchases, the exact purchase amount is deducted from their personal
Habib Bank account.
4) FLEXI LOAN:
Habib Bank FlexiLoans is a personal loan product, which is
available for salaried individuals for a variety of reasons. Whether it is for a
child’s education, a much needed vacation, a daughter’s wedding or even
just a shopping spree, HBL FlexiLoans is a flexible financing scheme which
can actually provide the much needed cash to fulfill all such requirements.

5) HABIB BANK MASTER CARD

Habib Bank MasterCard opens a world of convenience for you.

Be it shopping or traveling or medical expense, HBL MasterCard sets you
free from the hassles of carrying cash, wherever you are. You have the
option to choose from our Domestic or International card… depending on
your requirements.

6) HABIB BANK LIFESTYLE:

Habib Bank’s Lifestyles Financing Scheme provides financing

for household appliances and consumer electronics on easy terms and
flexible tenures. The product aims to bring comfort into each domestic unit
by providing financing for essential domestic items, the purchase of which
may be postponed by households due to paucity of funds. The bank aims to
provide speedy financing so that families do not defer purchase of such
essentials, and all such items are effortlessly accessible as and when
required.
INFORMATION TECHNOLOGY IN “HBL”

Over the last decade or so the field of IT has taken the whole
business world by storm. The banking business especially where large
databases regarding millions of customers is kept has facilitated a lot from
this field. Habib Bank Limited has also introduced computer systems in the
Bank for convenience and efficiency. A special program designed for
working on computers is called the “Habib Bank Limited Multi User Online
Banking System”. The program has been built in COBOL by the software
specialists of Habib Bank’s Computer Centre. The Operating System used at
Habib Bank is the UNIX.

This is an area where the Bank has a lot of margin for

improvement. Still majority of the work is done manually which is unlike
other larger banks of the Country. There is a need to further computerize the
work. One drawback, which the Bank faces in this line, is that it is perhaps
the most difficult thing to do due the very wide area network. It might be
impossible to even link the branches, which are situated at far away places.
Maybe the current step by the management of reducing the number of
unprofitable branches may help the Bank in this cause.
COMPETITORS
SWOT ANALYSIS OF HABIB BANK LIMITED

Habib Bank Ltd. has got a tremendous reputation in the market;

as for years the Bank has been serving the banking requirements of its
customers. Although due to the name of the Government being attached with
the bank, people have a lot of confidence in it, but on the other hand they
take Habib Bank as other Government institutions which don not perform
their duties properly. This they do without realizing the fact that the Bank is
a Limited Company with a management of its own. The fact can only be
understood either by those customers who have been long served by the
Bank or by those who are or have been actually the part of the working of
the Bank.

Habib Bank Ltd. enjoys a 22% market share as far as the

domestic deposits are concerned, which is an important factor to measure
the success of a Bank. This percentage is second only to National Bank of
Pakistan. The Bank has got the largest number of branches in Pakistan and
also has the highest number of employees. The most recent figures although
not known due to the current restructuring.

With all the good things in it, every business has always got
some internal strengths and weaknesses pointing out which, it can create
opportunities and avoid from threats.
 STRENGHTS

NAME STRENTH (good will):

As discussed earlier Habib Bank Limited has got a tremendous

reputation in the market. It is very often seen that a business is renowned
merely due to its name. This name is often called goodwill of a business. It
is not easy for any business to create goodwill in the market. It takes
something special. Habib Bank due to its long standing services has
managed to create its name in the banking market. And so the name itself of
the Bank stands as strength for the Bank.

WIDE RANGE OF NETWORKING:

Another huge strength which Habib Bank Ltd. enjoys is that it

covers a very wide network not only in Pakistan but also in foreign
countries. Its 1425 local and more than 55 foreign branches, associates and
affiliates comfortably make up the largest network in the banking sector
today. This number is even greater than National Bank of Pakistan. This
not only widens the customer base for the Bank but also makes it easy for
people living in far away places where other Banks are not operating. And
this is a proven fact that Habib Bank has its Branches in those places where
no other banks are involved. Therefore the Bank also manages to exploit the
market niche in these places.

INTERNATIONAL BANKING/COVERAG:
As already mentioned Habib Bank has got more than 55
branches, affiliates and associates operating in foreign countries. Other
than helping the Bank exploring the international markets it adds to the
convenience of the customers, especially those who are settled in foreign
countries and send in remittances to Pakistan. Similarly people traveling
abroad also assist from this facility as they can use foreign exchange
traveler’s Cheques etc.

WIDE RANGE OF SERVICES:

As Mentioned earlier Habib Bank Limited offers a very wide

range of services for its customers. In today’s service industry continuous
improvement and innovation are just inevitable. Without which no service
business can survive in the market. Habib Bank always keeps good care of
this aspect of their business and continuously comes up with new and
innovative ideas. As already mentioned Habib Bank is the pioneer of
introducing Master Cards and Traveler’s Cheques in Pakistan. Similar
other schemes like the flexi loans, Crore Pati Scheme, Qarz-e-Hasna
Scheme etc go along way in proving this specific point regarding the Bank’s
policy.

ATM FACILITY:

Other than the above mentioned broader aspects which stand as

a great strength for Habib Bank Ltd., several other aspects add to these
strengths of the Bank. The large ATM coverage of Habib Bank Auto Cash
is a huge strength. Now other than large number of branches of Habib Bank,
the Bank shares a large ATM network with Askari Commercial Bank Ltd.
and ABM Amro Bank. Now other banks are following suit to this new idea
of ATM cards. This again proves the innovativeness of Habib Bank Limited.

BANK FOR ALL:

As depicted by it’s advertising, Habib Bank Limited stands to

serve people of all types. That is why people ranging from low grade
government employees up to millionaire businessmen are customers of the
Bank. Where Government employees are given the advantage of opening an
account without any deposit on the other hand the Bank offers special
facilities for its valued customers. The Bank is exclusively involved in
disbursing salaries of many private and public organizations, which again
increase the customer base. Then again the localities of the branches in large
commercial areas of different cities allow different businesses ranging from
sole proprietors to large companies to avail the facilities of the Bank.

WEAKNESSES

LESS TRAINED STAFF:

As it has been discussed earlier, that a large number of staff at

Habib Bank are under trained as well as unqualified. The involvement of
such employees in a business severely affects the efficiency. These
employees also add to the inconvenience faced by the customers, as they
lack any sort of formal training for customer services. This adversely affects
the image of the Bank.

ONLINE BANKING:

Online Banking is the most recent development in the field of

banking. Through this type of banking a customer can easily make
transactions sitting at his home through the telephone. The transactions
maybe regarding payment of bills, transfers of money etc. Unfortunately
Habib Bank at the moment is lagging behind in this department in
comparison with other established banks. Even the direct competitors like
Askari Bank are way ahead in this field.

MASTER CARD:

It is a known fact by now that Habib Bank Master Cards the

first credit cards to be introduced in the Pakistan Market. Already more that
30,000 people are HBL Master Card holders. Unfortunately Habib Bank has
not been issuing these cards for the past few years. There seems to be a
conflict within the management about the issuance of these cards. The Bank
should try and issue further so that it could compete in this field too.
 WIDE AREA TO HANDLE:

Although on one side it seems that the spread of a business in

such a wide area is very profitable for any business. But on the other side it
is very difficult to control such a business which is not only spread to each
and every corner of the country but also has its branches in foreign
countries. The Major problem, which arises of having such a huge area to
cover, is that a consistent check and control becomes almost impossible. In
large cities although it is possible for auditors or higher executives to make
surprise visits to check the working of a specific branch, but in far away
places it is almost impossible to make such surprise visits. Similarly
controlling an HR, which is spread over huge distances, is also not very
easy. In short such a wide spread business is somehow a weakness of the
Bank.

LIMITED PERSONAL LOAN:

Although the Habib Bank Flexi-Loans seem to be a very

attractive package and indeed many people have taken advantage of the
scheme, but it has been observed that many people have to return back
unsatisfied due to reasons which can somehow be eliminated or relaxed. One
such limitation is that the person wanted to acquiring the loan should be an
employee of a company listed with the Bank. This in one reason many
people can’t avail this opportunity.

ADVERTISING CAMPAIGNS:

Habib Bank does not rely much on Advertising through

television or any other type of media. Although the advertisement campaign
of Habib Bank Muhafiz Traveler’s Cheques has been quite successful and
is still running on the electronic media, but other products such has the
ATM cards and Flexi-Loans certainly need more promotion. Very little
people know the actual worth of these instruments. Habib Bank basically
relies on the relations of its employees with the outsiders and the customers
themselves for the purpose of promotion. The idea has to be given a bit
broader view and other methods should be used for promotion.

LACK OF INFORMATION TECHNOLOGY:

Information Technology is one field where Habib Bank has a lot

of room for improvement. Although in the larger branches of larger cities
computers are used to some extent, but this system has to be transferred to
the whole network. This will certainly make it very convenient for carrying
inters city transactions.

Although it is not the easiest thing to do in such a wide-spread business, but

sooner or later the Bank has to move ahead in this field also.

OVERLOAD WORKING ENVIRONMENT:

At Habib Bank the workload seems to be too much on the

employees. Especially after the recent cut down in employee numbers it is
almost impossible for the employees to leave their offices before 8 or 9 in
the evening. Such extra burden definitely increases the stress of the
employees. They feel de-motivated and eventually their efficiency declines.
One good proof of this is that a lot of employees are very happy to take the
Golden Hand Shake scheme being offered by the Management.
 OPPORTUNITIES

1) COST REDUCTION:

Extra costs due to large number of employees and a number of

unprofitable branches operating throughout the country has been a major
problem for Habib Bank Ltd. The Management however has been working
on this problem for the last year or so more due to the pressure of
international Financial Institutions. The Bank overall has a great opportunity
of cutting down its extra costs by downsizing and shutting down the
unprofitable branches.

2) MASTER CARDS :

Habib Bank was the innovator in introducing Master Cards in

Pakistan. But unfortunately the Bank hasn’t been issuing Master Cards for
quite a while now. Habib Bank has a great opportunity of extending its line
of services by issuing further Master Cards and competing with other Banks

3) IMPROVED PROMOTIONAL TECHNIQUES :

The Bank although here now and then has been involved in
good promotional techniques especially through the television, but it
certainly has more opportunities to improve a lot more. The Bank can
certainly opt of sponsorships and arrange different matches etc. e.g. Habib
Bank is the official sponsor of the Pakistan National Hockey Team.
Similar other techniques can be used to promote their products

4) COOPERATION WITH OTHER BANKS :

Like the recent collaboration of Habib Bank with Askari

Commercial Bank Limited and ABN Amro Bank in ATM cards, the Bank
has other several other opportunities to join hands with other banks or even
other businesses like insurance companies etc. Such techniques not only
come out to be convenient for the customers of the Bank but it also reduces
competition at least in that one area where the collaboration is going on. And
further it also increases the consumer base for the bank.
 THREATS

1) DE - MOTIVED EMPLOYEES :

Employees are without any doubt the greatest assets of any

business. Therefore its is a major responsibility of the management to make
sure that the employees are working in least stress full conditions and in a
healthy work environment and where people are secured and satisfied about
their jobs. Unfortunately for Habib Bank, none of the above-mentioned
aspects are given due importance.

2) LARGE NUMBER OF COMPETITORS :

The Banking Sector has grown unbelievably over the last

decade or so in Pakistan. This can we judged by the fact that only in
Islamabad currently more than 40 Scheduled Banks are operating. Although
Habib Bank does not face a direct competition from all as few are not of that
caliber and others don not fall in the same category.
For Example:
Metropolitan Bank Limited. Soneri Bank. Bank Al-Habib. City Bank.
Standard Chartered Grind lays Bank. National Bank of Pakistan. Allied
Bank limited. United Bank Limited. ABN Amro Bank.
Askari Commercial Bank Limited.

3) REDUCED AREA NETWORK/BANKING :

As often said, “the mirror has two sides”. The problem of a very
large area network and the existence of a large number of unprofitable
branches is although genuine but this is one problem which has to be
eradicated with due care. The management will have to make sure that it
does not close down the profitable branches. As it has been evident
especially in case of National Bank of Pakistan that many profitable
branches have been shut down due to pressure.
 RECOMMENDATIONS

Keeping in view the above mentioned SWOT analysis, and after having an
in-depth knowledge of the overall operations, functions and departments of
Habib Bank Ltd. following are the recommendations and solutions which
could be helpful for the Bank in eliminating its weaknesses

 The Bank needs a lot of improvement in the area of customer services. It

is one area where the Bank lags behind especially while competing with
the international Banks

 Although the Bank has made quite an efficient use of technology over the
last few years or so, but there is a lot of room for further deployment of
technology. Still around 50-55% work is done manually. This is very
much in comparison to the good banks operating in Pakistan. By doing so
the Bank can certainly increase the efficiency of its employees.

 A lot of hard work is required for increasing the quality of the

manpower working at Habib Bank. The recent downsizing has although
some how targeted such uneducated and under trained staff but not to a
great extent. Maybe downsizing is not the proper solution. The Bank can
certainly improve the quality of its human resource by giving proper
training to them regarding technology, customer services and other
related aspects of the Bank.

 The Bank will also have to take a major step in solving the problem of
severe workload on the employees. The problem may not be the same in
every branch but then it is the responsibility of the management to look
carefully into this aspect and allocate the optimum level of employees in
each branch.

 A proper re-structuring is definitely required at Habib Bank. No doubt

Habib Bank Limited is undergoing a drastic change with a lot of branches
being closed and many people being terminated. But it has been observed
that the management has got it completely wrong in some areas. Several
 profitable branches have been shut down which has effected the overall
profitability of the Bank.

 The management has to take some efficient steps in order to motivate its
employees. The recent downsizing and the resulting increased workload
has severely damaged the moral of the employees. They haven’t only lost
confidence in the management but are also willing to leave the Bank by
taking the Golden Handshake Scheme in order to avoid further stress.

 Further there seems to be a lack of communication and interaction

between the branches and the top management sitting at the headquarters.

 As mentioned earlier Habib Bank has a great opportunity of expanding

its consumer base by cooperating with other banks like the cooperation
incase of the ATM cards. By doing so the bank will not only satisfy its
customers but will also decrease the threats from its competitors.
CONTENTS
HISTORY & BRANDS

HABIB BANK VALUES

MISSION STATEMENT

OVERSEAS NETWORKING

DOMESTIC NETWORKING

ORGANIZATION STRUCTURE

HIERARCHY OF THE BANK

BANK TOP MANAGEMENT

INTERNATIONAL BANKING

Departments

DOMESTIC BANKING

Service Line
Product Line

ROLE OF INFORMATION TECHNOLOGY

COMPETITORS

SOWT ANALYSIS

RECOMMENDATIONS