COMPARATIVE STUDY BETWEEN LOCAL AND FOREIGN BANKS:

PVT. ( LOCAL ) ORGANIZATION : BANK AL -HABIB PVT. LTD: MULTINATIONAL ORGANIZATION: STANDARD CHARTERED BANK.:

1:SWOT ANALYSIS:

STRENGHTS:

STRENGTHS: has very effective and efficient

HBL

Support
bank.

of its parent company and

network of branches all over the country.

promoters viz. Standard chartered

HBL is a well set upped bank enjoying

long history of over 65 years of experience and profitable action.

Every
HBL.

10th Pakistani is A/C holder of

It has made huge investment in almost

all the economic region of Pakistan.

HBL

not only has made investment in

Competitive rates. Good and diverse products. Network of branches. Flexible spread Margin. Highly qualified research team. Strong network through out India and
Strong presence in WEST, NORTH and SOUTH

industry but also in small level industry as well.

HBL was the first privatized bank that

gives it a border over other nationalized banks as it can develop any plan consistent with the demand of market and free from any political or technical influence.

HBL
high.

is the largest private bank in

Pakistan now and people belief is very

HBL is the market leader in introduction

of e-banking and it has the foremost ATM network in the country.

HBL was charged the best conjugal bank

for two Consecutive years of 2000 and 2001 by Euro money, A leading international publication.

WEAKNESSESS:

Account access problems of customers. RM doesnt give much importance on

small companies.

 HBL has the ability to bring innovative

products and services like personalized service, electronic funds Transfer, sophisticated fiscal products such as electronic banking, auto-teller OPPORTUNITIES: machines and evening banking. WEAKNESSES: No consumer banking has offered by the HBL to its patrons like phone banking, evening banking etc Bad debt rate is very high; no special effort has been made to recuperate the bad amount. No marketing set up or structure is there. Most of people do not know how they have to endorse there activities. Mission of HBL is not well definite. Now as it is a privatize bank that is why GOVERNAMENT support to HBL decreased as it was in past. Most of the employees lack executive training as they are not properly educated. Due to superiority, they have moved up on the hierarchy line to GradeI, II or III positions having hardly bachelor degrees. This type of senior staff cannot apply the modern and pioneering techniques of management in decision making. HBL is not rapid to give loans and cards. Not straightforward application is for applying for a credit card. THREATS:

The

growing interest of people in the and foreign exchange

derivative market.

Recovery of indian stock market

Competition

from major players like

ICICI BANK, KOTAC MAHINDER BANK, HDFC, SBI BANK, HSBC, AXIS BANK etc.

The downfall in the export market due

to global recession.

Speculation in derivative market.

OPPORTUNITIES: It can introduce debit card system or may alter the existing ATM cards into a complete debit card. New products like personal loans, advance and auto hiring and cash management which diversify credit risk and add to revenue generating products, are presently provided in big cities like Lahore, Islamabad, Karachi, and Rawalpindi, these products may be tested for success in other small areas of PAKISTAN in different provinces. HBL may develop its Rupee Travelers Cheques (RTCs) sales by searching for new market niches. The opportunities accessible for HBL are financing to SMEs (Small and Medium Enterprises) in Pakistan. Attractive salary encloses should be awarded. Marketing department should be started in order to endorse the name of HBL. On the job training & instruction sessions can be conducted. THREATS: The Rupee Travelers Cheque (RTC) sales volumes may be exaggerated on account of regulatory constraint imposed by SBP on issuance of large value denominations. The recurrent reduction on 6-month and 12-month Treasury Bills discount rates

by SBP may create strain on the banks profitability. The low discount rates are also negatively influencing the proceeds rates which may influence the banks profits from the other side. Day by day antagonism is increasing not only of the growth of the banks but also due to the launching of the new bank in the market e.g. Barclays. Circumstances of Pakistan are a great threat for the survival of the HBL. More and more banks are launching there operations in Pakistan which is increasing competition for the HBL.

CONCLUSION:

1: HUMAN RESOURCE MANAGEMENT:

The HRM department plays an important role in value of HBL. HBL has very active and one of the best HR department in Pakistan as well as world wide. The existence of a HR department is vital to overall productivity and efficiency of the strong workforce in HBL. HR manual contains five processes: Selecting and Recruiting Training and Development Performance Appraisal Compensation Employee relation. Performance management at HBL is a forward looking process for setting goals and regularly checking progress towards achieving those goals. At HBL it is a continual feedback process whereby the observed outputs are measured and compared with the consistently being met in an effective and efficient manner. Performance management at HBL is a system of evaluating employees to help them reach reasonable goals and thus ensure that the company performs better. In HBLs performance management model employees are given opportunities to work on harder projects, paired less-skilled employees with expert employees and employees can direct and make decisions. desired goals. Performance management includes activities to ensure that goals are

1. 2. 3. 4. 5.

HRM practices have shown to be valuable to any companys success. Thus to besuccessful in a global market place, the challenge for all businesses regardless of s i z e i s t o i n v e s t i n human resources. They need to select a n d r e t a i n t a l e n t e d employees, undertake employee training and development programs and dismantletraditional bureaucratic structures that limit employees ability to be innovativeand creative.The commonly practices HR activities include the following: HR PlanningRecruitingSelectionTraining and DevelopmentCompensationPerformance ManagementEmployee Relations S tandard Chartered is the worlds leading emerging markets bank. It employs30,000 people in over 500 offices in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East , Africa , United Kingdom and America HR planning is a process, Which anticipates and maps out the t h e consequences of business strategy on an organizations human resources. This isreflected in planning of skill and competence needs as well as total headcounts.E v e r y organization needs to be able to forecast and plan for its future p e o p l e requirements.At Standard Chartered Bank , human resource planning involves forecasting thenumbers of people which will needed by the bank , and then working out the bestway of obtaining then as and when they are needed As Standard Chartered , training is a partnership between the employee andthe Bank. The Bank provides a framework within which the employee cani d e n t i f y t h e t r a i n i n g and development needs. Such t r a i n i n g p r o v i d e s a consistent standard of management learning throughout Standard

At HBL growth is not a function of time but rather of performance. Tools used by HBL for performance management are: o Developmental goal setting o Ongoing performance monitoring o Ongoing feedback o Coaching and support o Performance appraisal o Rewards, recognition, and compensation

Chartered .I t a l s o e n a b l e s t h e employees to take all of the p r o g r a m s o r s t u d y f o r individual modules according to their particular development needs

CONCLUSION:

3.SERVICES AND FUNCTIONS OF BANKS:

PRODUCTS OF HBL
Auto finance Home finance Habib bank value debit card Loans Habib bank master card Habib bank lifestyle
It also offers deposit products to individual customers such as

PRODUCTS OF SCB
Credit cards Mortgages Personal loans Auto loans Deposit account Wealth management products Foreign exchange Spot and forward Asset and liability management Internet rate / liquidity management Short terms loans/ deposits

Foreign currency accounts Car financing and loans Credit and debit cards

 Banc assurance Phone banking Money transfer Mutual funds.

SERVICE LINE
Consumer banking services Cash management services Utilities services Transferring of money
To fulfill the basic objective that is socioeconomic nature HBL perform following important function.

Economics research and analysis Customer risk management Non deliverable forwards Fx option Internet rate derivations Internet rate swaps FRAs Internet rate options Financial engineering.

FUNCTION OF SCB
Consumer banking Personal banking Priority and international banking Preferred banking Private banking SME banking Wholesale banking Islamic banking Online banking Mobile banking

FUNCTION OF HBL
Commercial banking Corporate banking Investment banking Retail banking Islamic banking

CONCLUSION: