PLANNING OF HBL

PRESENTED To: Sir.Minhaj ud Din

PRESENTED BY: Asad ullah
MBA09-11T

Abdul Wali Khan University Timergara compus

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Table of Contents I
ntroduction
History & Background

Compny profile V ision Mission strategy goals comparison with competitars SWOT Analysis Conclusion/Recommendations

Executive Summary:
This report is for academic purpose. it was assigned to us as an assignment and project of our course Fundamental of Business .In the report we have mentioned the organization introduction, background, mission and vision, goals of the organization, SWOT analysis etc. We conducted questionnaires, interviews from HBL (Muhmmad Nisar Ahmad Manager Timergara ) branch from top management low-level management and also searched at internet and collected information about organization.

Introduction:
Bank is an important institute of an economy. In modern times a strong banking system is necessary for economic prosperity of a country. Banks are necessary for maintaining a sound financial position of Government and for running trade and industry.

Background(History)
Habib Bank Limited (HBL) was established on 25th August 1941 just one year after the historic Pakistan resolution was adopted in Lahore for carving an independent homeland for the Muslims of subcontinent. It was founded with the blessing of Quaid-e-Azam (Great Leader) Mohammad Ali Jinnah, the architect and founder of Pakistan. We are proud of the fact that the Quaid-E-Azam demonstrated his faith and confidence in HBL by opening his personal account in our Bombay branch in the year 1946. The first prime minister of Pakistan Quaid-e-Millat Liaqat Ali Khan, on the independence day of Pakistan (August 14, 1947) appreciated the service of the bank in these words. I wish every success to HBL and hope that it will continue to play an important and useful role in the industrial and commercial life of the Muslim nation The commitment of HBL towards the cause of the economic uplift of Pakistani people was successfully tested when the subcontinent was partitioned in 1947. The new born country faced serious financial difficulties. Habib Bank joined hands with the government of Pakistan and placed all its services at their disposal for nation building activities. Throughout the decades, HBL has held the mantle of a dynamic leader, by adding value to the lives of its customers. It was HBL that introduced products such as Debit Cards, ATMs, Travellers Cheques, etc., to the Pakistani market. We at Habib Bank cater to the needs of millions with our quality products & services. Today, Habib Bank is truly the bank of the people, providing its customers convenience and satisfaction all over the
world. Habib Bank Plaza, the second tallest building in Pakistan, is the proud symbol of HBLs leadership in Pakistans corporate arena.

Organization Profile:
Name of Organization: Habib Bank Limited Zakir Mahmood President and Chief Executive Officer: Head Office: HBL Phone Banking: Product Information: Fax: Telex: Website:

Habib Plaza, I.I. Chundrigar Road, Karachi-75650. 111-111-425 111-33-44-55 2411647 20086-20751 HBANK-PK

Corporate: .com www.habibbankltd Treasury website www.hblgtr.com.pk

Vision
To be the premier organizations operating locally and internationally that provides the complete range of financial services to all segments under one roof.

Mission
HBL is a client-oriented bank and its mission is: 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.

HBL STRATEGIES

CORPORATE STRATEGIES

Strategic Path From the very beginning the main focus of the management of HBL is the implementation of growth strategies. During the entire period of continuous straggle they adapted almost all types of strategies according to situation and market demand of that time except restructuring of defensive strategies. HBL never faced any type of liquidation, bankruptcy, sale or removal of any business unit. Their main strength is to avoid insecure financing. It is big organization that ever during their dark periods of straggle; they never lose their market share. If we talk about GROWTH STRATEGIES they are as followed

Incremental Growth HBLs key areas of operations encompass product offering and services in retail and consumer banking. They introduce their products to expand their clients base

by bringing innovation and improving the channels of distribution. They put their all efforts to reduce the business and make their services accessible for all customers.

International Growth With a presence in 25 countries subsidiaries in Hong Kong and the Uk, affiliates in Nepal, Nigeria, Kenya and Kyrgyzstan and representation 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.

Merger HBL merged Standard Bank in earlier times

CORPORATE LEVEL STRATEGIES

HBL has following corporate level strategies . Growth strategy: HBL has adopted growth strategy by expanding its operations. HBL actually have different products and services for both individuals and business customers. HBL product and services for individual customers are credit cards, debit cards, and deposit accounts. HBL product and service for business customer are commercial banking, cash management and asset management.

Related Diversification: HBL has also adopted related diversification strategy, because at first function of HBL was only accepting deposit and advancing loans but now HBL has many related functions like flexi loans, ATM and credit cards.

BUSINESS LEVEL STRATEGY

Cost Leader Ship strategy:

At business level HBL has adopted cost leadership strategy in a way that cost of advancing loans is less as compare to some other well reputed banks like Alfalfa, bank Al habib, MCB.

Differentiation Strategy: At business level, HBL has also adopted differentiation strategy by introducing some new products into the market earlier to other banks like debit cards.

SWOT ANALYSIS OF THE ORGANIZATION:

The SWOT analysis stands for firm's internal strengths and weaknesses and its external opportunities and threats. The purpose of such analysis is judge company's strengths and exploits its opportunities and to counter threats to tackle with the weaknesses.

DIVISIONAL LEVEL STRATEGY

Following are the main divisional level strategy fallowed by HBL To establish sound relationships with top industrial groups and various multinationals. To make the bank customer focused To increase the no of online branches To increase the ATM network to further improve the bank market shares. To implement the performance appraisal process to provide motivation and merit oriented culture in the bank To improve extensive tanning to the employees in the process, products, marketing and selling skills. Upgrading skills level of employees.

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SWOT ANALYSIS OF THE ORGANIZATION:

The SWOT analysis stands for firm's internal strengths and weaknesses and its external opportunities and threats. The purpose of such analysis is judge company's strengths and exploits its opportunities and to counter threats to tackle with the weaknesses.

Strengths:

HBL is a leading privet sector with many branches with most of them online in major cities of the country.

The transactions are highly automated that it gives assuerty to customers that they are highly reliable, efficient and secure.

Also has the potential to encounter the competitive environment in the market.

The products and services designed are in direct relation with the individual customer needs.

Phone banking services is very attractive for those who don't have got the time to go to bank.

HBL is very efficient in managing costs as it has successfully restructured itself after its privatization.

Weaknesses:

Even having the computerized banking system, the bankers are still using the registers for entries.

Lack of professional employees in the branch.

Poor system of recovery of the system.

No specific training based programs.

Pressure not only on the leaner but also on the responsibility holder as well.

Continuous rotation of employees from their job.

Opportunities:

A large amount of foreign investment is attracted.

Strong potential for growth

Opportunity for adding value added services with corporate banking relationships

E-banking facility is also new opportunity which is a flourishing business in advanced countries.

Large number of branches to remote areas.

HBL provides opportunities to utilize the skills and efficiencies in leasing business.

Threats:

The fees that the bank charges on various services it provides is extremely high.

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Shortage of trained and specialized staff at lower executive and officers level.

Facing more competition by foreign banks in the market.

GOALS OF HBL: 1To mobilize private savings and public funds for diverting the same into productive channels and ensure their availability. To promote industrial agriculture and socioeconomic process through the active participation of private and public sector in the province 2Help under developed areas and create employment opportunities, especially in the rural areas of the province. Further, to guide and assist the people of Pakistan serving overseas to effectively and profitably invest their foreign savings in the province as well as in other parts of Pakistan. 3Create a diversified and sound portfolio for utilization of idle funds and their investment in the existing and new ventures especially in the pioneering of high-techs agro-based export oriented and engineering project to ensure

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maximum returns. 4Participative and seek the share of the country in the capital market of Pakistan by way of subscription through locally peopled resources in the leading stock exchange of the country and eventually paying the way for establishing a stock market in the province

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1. HBL is the first Pakistani Bank, which after creation of the country looked after the financial needs of the then Government. It provided support to economic, industrial financial and banking sectors of the country resulting in establishment of industry in the country. HBL should help grow the industrial activities by financing industrial sector. It will help to create more jobs.

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2. Before privatization, HBL was conservative approach. It is now an aggressive and progressive bank of the country as evident by its products i.e. Auto /Personal /Mortgage Loans. It is a market player. HBL should target the middle class to enhance its market share.

3. HBL being a local bank has also existence in 24 countries of the world. It has started to relocate its position in international market. It sold its Fiji and Australian Operations and opened its rep. office in China and two more Branches in Bangladesh and one more in Afghanistan. In future, it has planned to start its Operations in South Africa and Central Asian States. HBL should relocate its operations as soon as possible and should sell its operations running into loss to utilize the resources for better location.

4. HBL has upgraded its system by installing MISYS to ensure real time banking at its about 300 local and overseas locations. It should put its remaining branches on the new system as early as possible.

5. HBL has vast network and no other bank will be able to compete it and its market share may enhance. Bank should effectively utilize its vast network to capture market share.

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6. It has reduced its staff strength resulting in reduction its administrative cost. The resources should be directed for upgrading branches.

7. It is hiring/recruiting professionals in middle and lower management to achieve organizational goal. Fresh graduates from the universities preferably IBA /LUMS are being offered jobs. It is providing job opportunities at different levels. On job training and job rotation for the employees is ensured. HBL should recruit from all the universities. Written test should be compulsory for all the fresh graduates.

8. HBL is observing Anti Money laundering(AML) directives of the SBP and has strengthened its controls not to allow its channels for bad money. On detection of a suspicious transaction, the same is reported to its Head Office and SBP. HBL should send all the staff on AML Training Program.

9. HBL is also discharging its social corporate responsibilities. It has given jobs to the players to help the support activities in the country. HBL should offer more jobs to the players.

10. HBL should use Human Resource Inventory System. 11. Assessment centre program should introduce in selection process.

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