NATIONAL UNIVERSITY OF MODERN LANGUAGES DEPARTMENT OF MANAGEMENT SCIENCES LAHORE CAMPUS INTERNSHIP REPORT ON The Habib Bank of Pakistan Submitted to

NATIONAL UNIVERSITY OF MODERN LANGUAGES
DEPARTMENT OF MANAGEMENT SCIENCES
LAHORE CAMPUS

INTERNSHIP REPORT
ON
The Habib Bank of Pakistan
Submitted to: Erum Batool
Submitted by: Fakhar Usman Roll No: L-21063

NATIONAL UNIVERSITY OF MODERN LANGUAGES
FACULTY OF MANAGEMENT SCIENCES
SUPERVISORY NOTE

It is hereby certified that the report has been thoroughly and carefully read and recommended to the Faculty of Management Sciences for acceptance of Final Internship Report by Mr. Fakhar Usman, Roll No. Session (2016 to 2018) in partial fulfilment of the requirements for the degree of National University of Modern Languages Lahore.

Name of Supervisor
Signature of Supervisor
Miss Erum Batool ______________________________

Name of Panel Member
Signature of Panel Member
_______________________________________________________
HOD Name
Signature of HOD
________________________________________________________

Date: ___________________
ACKNOWLEDGEMENT
First of all, I am thankful to “ALMIGHTY ALLAH” Who gave me the strength, patience, courage and enthusiasm needed to write and complete this report, and countless salutations to upon the Holy Prophet Muhammad (PBUH), the sea of knowledge who has guided His Ummah to seek knowledge from cradle to grave.     
I take this big chance to sincerely thank a number of people, MBA, past and current teachers and Supervisor who have made it possible for my research proposal to become a reality. A special thanks to Erum Batool my course supervisor for his guidance and support. His gracious encouragement has been significantly delightful. During the period of my internship my supervisor Erum Batool guided me to fulfil the proposal requirements and better ideas as well as part of advice concerning to the data collection of primary sources and research by case studies. My supervisor Erum Batool and ex-coaching team guided me with innovative guidelines and ideas to compete research chapters.

Then to my friends who assisted me in this effort and we worked daylong to accomplish this assignment. I have a debt of gratitude to all my teachers who taught me throughout my academic career.

The preparation of this report was a massive undertaking but the highly competent and experienced bankers provided me with all assistance, information, advice and suggestions that I needed which contributed importantly to this report.

NATIONAL UNIVERSITY OF MODERN LANGUAGES
LAHORE CAMPUS
HEAD OF MANAGEMENT SCIENCES DEPARTMENT
Letter of Transmittal
Subject: Internship report
Respected Madam,
It is to present you internship report which is executed at The Habib Bank of Pakistan. As required by the university as a degree requirement for Masters in Business Administration program.

This report has been prepared in accordance with the guidelines issued by the department. It is the result of my first professional experience. The report is practical application of whatever I have studied as a business graduate of National University of Modern Languages. In this report, I have covered the introduction of The Habib Bank of Pakistan. Detail of my working and learning in the organization, impact on job on career in future. I feel that this experience would be of great help in future.

I have put all the efforts to summarize my knowledge and experience in this report to make in comprehensive and to meet reader’s expectations.

Sincerely,
Yours Sincerely,
EXECUTIVE SUMMARY
The Habib Bank of Pakistan established in 1989 and got the status of scheduled bank in 1994. The Habib Bank of Pakistan offers number of products in their customer. There are 293 branches of The Habib Bank of Pakistan in the whole country functionally. The Habib Bank of Pakistan is divided in the division and each division is headed by the general managers.

The government of the Punjab holds most of the shares in The Habib Bank of Pakistan. It is doing business in commercial banking and the retail banking. Corporate banking treasury and investment and trade finance. The shares of The Habib Bank of Pakistan are traded in all three stock Exchanges of the Pakistan.

My internship program period is 3 July, 2017 to 18 August, 2017. During internship, I worked in Assistant Finance Officer Department, Accounts Department, Clearing Department, Remittance Department, Advance and Credit Department and Bill for Collection Department.
As for as the different ratios of the Habib Bank of Pakistan, they all give the healthy sign regarding financial position of the Bank as well as the operation results of the different financial years. All ratios are fully in accordance with the banking industry’s standard and norm which is a yard stick to measure the performance of any bank. These ratios depict and indicate that the financial strength of the on a higher side and further prospect of the Bank is brighter.
At the end, the conclusion and the recommendations are the part of the report. Bibliography is the part, which contain all the references from I, obtained data to prepare this report.

TABLE OF CONTENTS
TOC o “1-3” h z u SUPERVISORY NOTE…………………………………………………………………IIACKNOWLEDGEMENT………………………………………………………………IIILETTER OF TRANSMITTAL………………………………….…………………….IVEXECUTIVE SUMMARY……………………………………………………………..V1.INTRODUCTION..………………..…………………………………………………..31.1 Introduction of Banking…………..…………..……..………………………………..101.2 Organization Background…………………………………………………………………………………….……11
1.3 Human Resources Nature…………………………………………………………………….12
1.4 Organization Hierarchy Chart…………………………………………………………………14
1.5 Business Volume……………………………………………………………………………..15
1.6 Significance of the problems…………………………………………………………………16
2.PRODUCT & SERVICES…………………………………………………………….72.1Product Line………………………………………………………………………..72.1.1 Deposits Products………………………………………………………………7
2.1.2 Profit Loss Sharing Term Account…………………………………………………7
2.1.3 Trade Finance………………………………………………………………………7
2.1.4 Consumer Finance…………………………………………………………………8
2.1.5 Commercial Finance………………………………………………………………..8
2.1.6 Agriculture Credit……………………………………………………………………9
2.2 Services……………………………………………………………..……………………..10
2.3Competitors………………………………………………………………………10
3.DEPARTMENTS……………………………………………………………………11
3.1 Departments & Divisions ………………..………..………………………..………11
3.2Functional Hierarchy of The Habib Bank of Pakistan …………..………………14
4.PERSONAL EXPERIENCE…………………………………………………………15 4.1 Branch Introduction…………………………………………………….…………….…15
4.2 Period & Division of Internship…………………………………….…………………..15
4.3 1st Week In Internship……………………………………………………….…….154.4 2nd Week In Internship…………………………………………………………….164.5 3rd&4th Week In Internship……………………………………….………………164.6 5th&6th Week In Internship…………..……………………………………………175.ANALYSIS……………………………………………………………………………185.1 SWOT……………………………………………………………………..…….185.1.1 Strength………………………………………………………………………185.1.2 Weakness…………………………………………………………………….195.1.3 Opportunity………………………………………………………………………195.1.4 Threats………………………………………………………………………..20 5.2 Financial statement of The Habib Bank of Pakistan ………………………..…………..…21
6.CONCLUSION………………………………………………………………………48HYPERLINK l “_Toc392469249″6.1Recommonadtion & Suggestion…………………………………….…………..………..556.2Conclusion…………………………………………………………………….………….57

Chapter: 1
INTRODUCTION
1.1 Introduction
In this part of research chapter, researchers examined the background and brief history of the Habib Bank Ltd and especially critically evaluated the aim and objective of the research. In the global market competition among businesses is becoming more and more challenging. Organizations have to survive their business efficiently and at the same time economically to exist in the global market. Managers in an organization are mainly answerable to confirm that the task given to employees at the workplace is completed in an appropriate manner and time scale. To get this, managers must ensure that they have capable staff with personal development training to achieve organizational goals.
Managers in the workplace must ensure to improve organizational performance; employees are motivated and well trained. Consequently, motivation in practice and theory become a problematic issue moving on a number of regulations. Even though a lot of research has been completed in past in the area of motivation and performance, but this subject is not clearly understood and more likely inadequately practiced. On this occasion the best understating come into an idea that how does motivation can impact on employee performance one key factor come into course human nature. Management needs to combine the appropriate motivational tools with dynamic leadership to improve performance of individual employees and achieve the goals.
Management in an organization has not only persevered in the market success and profitability, but also dispute their stability in an international competition. Therefore, organizations require to motivating their employees to make business process successful and profitable. The researcher considered the Habib Bank Ltd of Pakistan to link the relationship between motivational factors on the employee’s performance. The researcher has chosen the Habib Bank Ltd of Pakistan to collect data by survey. The Habib Bank Ltd is a first bank of Pakistan that established by Quaid E Azam Muhammad Ali Jannah during the partition between India and Pakistan. The Habib Bank was the first and only Government Bank in Pakistan. Research introduction chapter is the main part of the thesis that explores the aim, objective and contributes to knowledge and research background and limitation of the research.
1.2 Organization Background
Habib Bank Ltd in Pakistan is the country primary bank established in 1941 having a registered head office in Karachi. The Habib Bank Ltd was nationalized in 1974 however on February 26th, 2004 it has been privatized by Government of Pakistan. The Habib Bank Ltd has taken over by the Aga Khan Fund for Economic Development. Aga Khan attained 51% of shares of Habib Bank Ltd. Habib Bank Ltd is one of the largest and fast growing bank with 1439 branches in Pakistan and international (Khan, 2010).
The Habib Bank LTD in Pakistan is a leader in the service industry. A broad network of 1400 domestic branches and the largest The Bank in the Pakistan includes 25 branches across five continents. Massive network has enabled the Habib Bank Ltd to provide comprehensive services that fulfil consumers’ requirements.
At present, the Habib Bank Ltd plays an essential role in an economic and financial development in Pakistan. The Habib Bank is the only Bank of Pakistan that exist worldwide branches in UAE, Europe and United Kingdom and one of the largest Bank that provides different services to their valuable customers, i.e. current account, car loan, mortgage, saving account, student account, international account, prepaid Sim, mobile banking, Shriya account, staff account, saving account book, business account, home loan, international money transfer, long term deposit, credit and debit cards.
The Habib Bank Ltd is a very first bank of Pakistan that established by Quaid E Azam Muhammad Ali Jannah during the partition between India and Pakistan. Moreover, the Habib Bank Ltd was the first and only Government Bank in Pakistan that introduce basic current account and Quaide Azam Muhammad Ali Jannah opened his first in account in the Bank (Khan, 2010). The very first branch of Habib Bank Ltd stated functionalising on 30th august 1941 at Muhammad Ali road Bombay. Fist personal account was opened by Pakistani great leader Quaid-e-Azam Muhammad Ali Jinnah. Mohammed Ali Habib was a man of uncompromising and consultant will. Quaid-e- Azam Muhammad Ali was committing his bank with a view to take his share in encourage of the conflict tattered and dedicated Muslim neighbourhoods. At the time of its assessment, the bank total paid up capital was Rs 2.75 million, but it is apparent from the following data that the Bank experienced a sudden increase in the assets within a few years.
In 1942, Quaid-e-Azam Muhammad Ali Jinnah further desire Habib Ltd transferred to Pakistan and later on shifting the Habib Bank Ltd Head office from India to Pakistan, Karachi on August 7th 1947 just one week earlier the separation between India and Pakistan take place. Habib Bank Ltd in Pakistan plays an essential role in the development of newly born country, Pakistan (Tahir, 2008).
The Habib Bank Ltd in Pakistan is the leading financial institution and vibrant global bank in the emerging markets, which provides premium set of best world product with innovative services. Habib Bank Ltd also provides compromise greater value to stakeholders, customers, and to employees of the organization. The Bank opened new perspective and fresh horizons of trust, loyalty and best service through 145 domestic branches and 112 out of the country offices with an inclusive range of financial commodities (Jamal, 2008).
The Habib Bank Ltd comprise of different departments such as Deposit department, clearing department, inland remittance department, bills departments, advances department, cash department, CD department and foreign exchange department. All of these departments, functions in following two types, accepting deposits and making load and advances (Ghafoor, 2011).
Vision:
Facilitate to employees to progress with self-confidence and success.
Mission:
To make bank consumers prosper, employees outclass and produce values for shareholders.

Figure: 1
Habib Bank Ltd of Pakistan Organization Chart

Sources: (Ghafoor, 2011).

1.3 Human Resources Nature
The objective of human resources management is to recruit people, which can be done through advertisement, scrutiny, and interview call at the end selection of successful candidates who fulfil organization requirements. Simms (2007) investigated that this is more difficult movement than in previous time when human resources management staff rely on recommendation from existing workers.
Furthermore, Thornton (2006) investigated that this is organization senior management responsibility to decide that who to accept and reject amongst the numerous applicants for a job. Thus, human resources management department comes into action and solve organization problems to choose and recruit individual from a group of people who are mostly fulfil job criteria.
Pell (2001) further investigated the most significant of any successful organization’s achievement are depending on their prospective to produce a centre of awareness, development, talented and motivated employees. The future of any organization’s capabilities to generate a centre of awareness, hold a talented employees and develop workforce will be a major factor in developing a high performance organization.
Simms (2007) critically evaluated that any organization’s key success consist of business strategy where every employee is being treated as a valuable resource on workplace. The human resources function can help in an organization and develop the prospective either the changes that will keep being a part of organization landscape (Armstrong, 2006).
The purpose of human resources is to make a sufficient condition for compensation packages which includes salaries, training, motivation and appraisal, survey, job evaluation, determination of wage rate, wage payment, incentive payment plans, and bonuses (Kubr ; international labour office 2002).
1.4 Organizational Hierarchy chart
Chairman

Board of Directors

Chief Executive Officer

Executive Committee

Executive In charges

Area Manager South
Area Manager North

1.5 Business Volume
Directors
0
Provincial Government
269,686,662
Associated Companies
0
Foreign Shareholders
37,567,609
Individuals
62,526,255
Insurance Companies/Modaraba Mutual Funds
32,993,540
Leasing Companies
957,701
Charitable Trust
273,911
Cooperative Societies
16,011
NIC Units
3,205,607
ICP
99,00
Joint Stock Companies 19,846,888
Other 101,713,292
1.6 Significance of the problems
One of the most possible fundamental tasks of management is to motivate to employees in an organization to work more efficiently towards the company assignments and achieve goal in an appropriate time. Different organization, motivate their employees to complete tasks efficiently and offer them satisfactory performance rewards, however many organization punished to their workforce for unsatisfactory performance. There has been a progression over the past century in inspection of what the term ‘rewards’ stand on in an environment of the organization.
The motivation technique in the workplace has become an important challenge for any organization managements. Motivation produces a question for every organization that ‘why money is not sufficient motivation technique for employee’s performance. Only one possible clarification for combining several motivational models and develops a general theoretical conceptual framework. The necessity for comprehensive model can entirely integrate the active relations between motivational dependent and independent variables that have been developed by different researchers in the past.
Critically evaluated the general concept, if the managements are only responsible to identify the different things can also motivate to employees in the workplace rather than money; possibly there will be a remarkable fall in employee demands for pay rises. Management should reduce their time on annual ritual of management and involve in employees union negotiation meetings. Furthermore, investigated the general problems in an organization also occur due to lack of appreciation of workers achievements, set up low salaries and unbalanced promotional structure. All these aspect reduce employee’s moral, efforts at workplace and subsequently affect on their performance. Therefore the aim and objective of this thesis is to find out the link between motivational factors such as rewards, culture, work environment, individual needs, promotion, job security and job satisfaction with employee performance and organisational productivity.
CHAPTER.2
PRODUCT & SERVICES
2.1 Product Line
2.1.1 Deposits Products
Current Account
Basic Banking Account
Tijarat Account (LCY)
Supreme Current Account (FCY)
Young Loin Saving Account (New Product 2010)
2.1.2 Profit Loss Sharing Term Account
Profit and Loss sharing Term Accounts offered by The Habib Bank of Paskistan are:
PLS Saving Account
Senior Citizen Account
Gharayloo Saving Account
Ziada Munafa Saving Account
PLS-Saving Profit plus Account
Corporate Premium Account
Supreme Saving Account (PLS)
Supreme Saving Account (FCY)
Corporate Premium Account
2.1.3 Trade Finance
Trade finance is a loan provided to the importers and exporters to make their transaction effective. This enhances the global business. The Habib Bank of Pakistan makes some trade processing centres to cooperate the exporters & also to the importers in different cities of Pakistan such as Lahore, Islamabad, Rawalpindi and Karachi.

2.1.4 Consumer Finance
Types of consumer finance offered by The Habib Bank of Pakistan are:
Aasaih Loan
Quick Cash
Car Loan
House Loan
Small Cash Personal Loan
THE HABIB BANK OF PASKISTAN Motorcycle Loan
2.1.5 Commercial Finance
The Habib Bank of Pakistan offers following Commercial Financing Loans:
Running Finance
Cash Finance
Demand Finance
CNG Filling Station Scheme
Auto Lease Financing Scheme
Car Lease Financing Scheme
Karobar Barao Scheme
Fertilizers Dealers Financing Scheme
Ali Akbar Group_ Franchise Financing Scheme
Atlas Honda Limited _Authorized Dealers Financing Scheme
Financing Scheme_ Purchase of Office/Shops
2.1.6 Agriculture Credit
Agriculture credit is provided to the farmers and livestock organizations.
The Habib Bank of Pakistan provides following agriculture loans with a specific mark-up rate:
Green Tractor Lease Finance
Agri Finance Branch
Agri Finance Scheme
Kissan Dost Finance Scheme
Second Hand Tractor Lease Finance Scheme
Kissan Dost Aabiari Scheme
Kissan Dost Mechanization Support Scheme
Kissan Dost Farm Transport Scheme
Kissan Eslahi-e-Erazi Scheme
Kissan Dost Live Stock Development Scheme
Livestock Breed Improvement Trough VVW
Kissan Dost Commercial Agro Services
Kissan Dost Agri Mall Finance Scheme
Corporate Farming Finance Scheme
Commercial Lease Finances Tractor Scheme
Demand Finance Sheds Construction and Civil Work
Lease Finance Facility for Milked Animals
Running Finance Livestock Poultry
Kissan Dost Model Dairy Farms (PDDC)
Kissan Dost Model Milk Centre (PDDC)
Kissan Dost Green House Finance Facility
Kissan Dost Cold Storage Finance Facility
Scheme for Controlled Shed
Lease Finance Facility for Installation of Bio-gas Plant
Group Finance to Small farmers
Clean Credit Facility through Syngenta Franchises
Zarkaashat Drip Irrigation System
Mark-up of Schemes
2.2 Services
The Habib Bank of Pakistan is dedicated in its efforts to provide a quality banking experience to our customer via a range of unique Banking Services
Commercial Banking
Online Banking
Cash Management Services
Utility Bills
Lockers
Treasury
Western union Money Transfer
Electronic Banking
Electronic Banking provides non-stop banking convenience, twenty-four hours a day, seven days a week.

Visa Debit Card
Internet Banking
ATM Network
The Habib Bank of Pakistan Quick pay
Call Centre
2.3 Competitors
The competitors of The Habib Bank of Pakistan are the other commercial banks in Pakistan such as:
Muslim Commercial Bank Limited, Soneri Bank Limited, United Bank Limited, Allied Bank Limited, Askari Bank Limited, Faisal Bank Limited, Standard Chartered Bank Limited, Punjab Bank Limited, Habib Metropolitan Bank Limited, And Bank Al-Habib Limited
CHAPTER.3
DEPARTMENTS
3.1 Departments & Divisions
The departments and divisions of The Habib Bank of Pakistan are as follows:
Retail Banking Division
Special Assets Management Division
Credit Administration Division
Human Resource Division
Finance division
Information Technology Division
Operations Division
Credit Risk Management Division
Corporate Banking Division
Control and Compliance Division
Training, Research, Communication and Public Division
Consumer banking Division
Audit and Inspection Division
Law Division
Retail Banking Division
Retail banking division of the bank deals with the customers and executes their transaction directly. It provides the services of saving account, mortgage loans, personal loans, debit cards, accounts checking, credit cards, ATM cards.

Special Assets Management Division
The Bank will invest on behalf of its clients and give them access to a wide range of traditional and alternative product offerings that would not be to the average investor. It includes the automatic sweep of cash balances into a money market fund, as well as brokerage services.

Credit Administration Division
In this division, banks deals with the credit, banks give loans to individuals and to the corporations.
Human Resource Division
This division performs the duty of hiring the employees, training the employees as well as retaining the employees and if necessary, firing the employees.
Finance Division
This division controls the overall activities relating to finance i.e. monitoring the investment activities, financing activities, Debit and Credit of funds and reasons thereof with proofs.
Information Technology Division
This department controls and record the data related with the bank. The backup of all branches is sent to IT department on daily basis.

Operations Division
This division controls the whole operation of all the branches and controls the cash activities, cheques, account opening and other things about operations.

Training, Research, Communication & Public Division
This division conducts research on new products, trains newly hired employees, train old employees on new and innovative circulars in banking sector. It also provides training on customer relation management.

Audit and Inspection Division
This department of bank includes the Audit of all the branches; they do audit of the branches and give some opinions to execute their transactions.

Law Division
In this division of The Habib Bank of Pakistan, layers are employee to solve the cases of the bank.

Comment on Organizational Structure of the Habib Bank of Pakistan
-Division of Labour
The structure of The Habib Bank of Pakistan is divided into division and these divisions are further divided into departments. This type of structure helps the management in controlling the operations of the bank effectively. Each division is responsible for its respective duties.

-Span of Control
Span of control among hierarchical structure is clearly defined. Each department reports to the central department and then this central department reports to the head office.

-Communication
Communication among the organizational departments is easy. Horizontal and vertical communication among departments is very effective.

Report to
State Bank of PakistanFinance Division
HR Division
IT Division

Risk Management
International Division
Regions
Report to
State Bank of PakistanRegional Teams
RCAD Department
Finance Division
Audit Division
Retail Banking Division
Credit Administration Division
HR Division
Special Assets Management Division
President of THE HABIB BANK OF PAKISTAN
IT Division
3.2 Functional Hierarchy of the Habib Bank of Pakistan
Chairperson of Board of Governor

President of THE HABIB BANK OF PAKISTAN

Commercial Assets Management
Corporate Assets Management
Branches
Areas
Hub

CHAPTER.4
Research Done By Me
4.1 Branch Introduction
The Habib Bank of Pakistan Branch Upper Mall, Lahore
Honestly talking know things might have been new to myself clinched alongside The Habib Bank of Pakistan set even now I have a great Academic data in any case sincerely talking it might have been totally transformed starting with those connected majority of the data of the saving money. Be that as by the grace about Allah Also capable should ponder each area of the bank.

4.2 Period & Division of Internship
The period of my internship is six weeks in The Habib Bank of Pakistan (Upper Mall Lahore) the time of my internship is 3rd of July, 2017 to 18 August, 2017. In this period, I did my work in three sections of The Habib Bank of Pakistan. 1st Assistant Finance Officer Segment, 2nd clearing Segment how to be clearing the cheques to other banks. And 3rd segment is remittances segment. In payments segment myself erudite in what way to transmute the currency from one apartment to another apartment.

4.3 1st week
-Training and Experience
The most significant thing that I study is that the change between the performances of officials and study additional church work The Habib Bank of Pakistan in first week of my training I use to know about the job and work of the part. What are the responsibilities and what are the events to complete that work. I study all these below the direction of Mr. Safdar Liaqat to tell me around all the happenings of their everyday routine in initial week of my residency.

4.4 2nd week
-ACCOUNT OPENING SEGMENT
I consumed the 2nd weeks in account opening unit. I did work in account opening sector when I was starting the bank follow old technique to open account but nowadays THE HABIB BANK OF PASKISTAN transfer near paper less finance and now The Habib Bank of Pakistan open account by using the SYMBOLS Banking Software.

Week 3&4
-CLEARING SEGMENT
Me additionally exertion over clearing part through my worth of effort I taught toward the thing that strategy should assemble those diverse cheques for distinctive banks. At that point I instructed how these cheques for distinctive banks just as exchange. To shared transmission each day, a meeting is held to NBP center division Lahore. The commonplace from claiming UBL, ABL, bank al FALAH, bank for KHYBER, Furthermore The Habib Bank of Pakistan might have been helping What’s more as needs be imparted transmission about cheques might have been held.
Mr. Bakhsh Ali sahib might have been the accuse about this unit. He furnished me a considerable measure for forethought.

Inward Clearing
When cheques of additional Banks are deposited in THE HABIB BANK OF PASKISTAN, after clearing these cheques through NIFT (National Institutional Facilitation Technologies) by the other Banks on which these are worn. Accounts of customers are qualified
Outward Clearing
When cheques of our bank are dumped in other Banks and these cheques are referred to us for confirmation, we debit our customer after confirmation their account.

New Method
Now-a-Days this action finished NIFT. Approximately cheques are resident and approximately are out of place. The institute N.I.F.T. delivers facilities in clearance the cheque. They refer the various cheque to various banks. The N.I.F.T package is only in infrequent towns, like Karachi, Lahore, and Rawalpindi. The cheque of entomb city is straight through N.I.F.T. And where, the N.I.F.T facility is not attainable so the cheque is focused complete T.C.S.

`Week 5 ; 6
-REMITANCES SEGMENT:
I likewise driven done payments fragment. To payments unit I academic how on change over those cash from one spot with extra spot. In this unit I learned,
1: DEMAND DRAFT.
2: ON LINE TRANSFOR.
For every benefit of the business there is requisition charged of the sender.
Those requisition of interest draft starting with 1 to 1lack is Rs; 160.
The charges are on the request draft up to 1lack will be ascertained done proportion.
The requisition for considering line change is Rs 350.

Chapter.5
ANALYSIS
5.1 SWOT Analysis
SWOT is a spread to an organization’ strengths, weaknesses, opportunity Also threats, A SWOT dissection incorporates of measuring dependent upon A firm’s interior qualities What’s more Shortcomings What’s more its outside chances Also dangers. It will be a resource, to get a fast implication of an organization’s vital condition. In the accompanying line’s the SWOT dissection from claiming THE HABIB BANK OF PASKISTAN may be given:
5.1.1STRENGTH
Those real banks over Pakistan with real number from claiming extensions through that nat.
Need advertise organization on giving results What’s more administrations of the clienteles through those quite a while.
Need more installments over different bank in the republic of Albania.
Major client shamefulness in the nation.
Need extra extensions and thus accessible should more could reasonably be expected clienteles over whatever available bank.
The Habib Bank of Pakistan is ahead around learning bend over whatever viable bank over Pakistan need knowledgeable, world-class top banana organization.
Need generate advancement aptitudes What’s more belonging.
The Habib Bank of Pakistan can wood supervises the weight from claiming battle What’s more need a few times crazy for battle viable.
It need advanced engineering Furthermore assets with furnish with its clienteles.
Disappointments and outrage on his/her staff will be rich for ability.
The Habib Bank of Pakistan needs the goodwill of the persons and it may be additionally a stake to it.
The table striking plans Furthermore that’s only the tip of the iceberg sparing to clients starting with occasion when should run through.
The Habib Bank of Pakistan MasterCard is more palatable over whatever available Pakistani bank MasterCard.
Bank’s oversaw economy need those drive will make it best bank of the nat.

5.1.2WEAKNESSES
Current The Habib Bank of Pakistan need tinny item offering What’s more offers exact slight for those clienteles.
This may be because of that absence of good also unremitting R ; D.
Publicizing aptitudes of the bank would good; anyway they have minimal frequency at diverse medias.
Those bring down level management fails to offer reasonable approach also is not hosting the manageress unpredictability.
Workers are out absent impulse.
They also uneasiness from claiming downsizing.
Have a greater amount worker, creating fiscal load on the bank.
Bank will be not using its instruments on its full limit Also In this way plunging that effectiveness.
Issue of unionism starting with laborers.
Most elevated number for branches, influencing the upkeep of consistency also same attempting air in all around.
Division’s interior earth doesn’t current keen picture of the bank clinched alongside practically of the instances.
Correspondence whole the middle of different levels about association.
Most of the bank disappointments and outrage on his/her staff may be workstation uneducated.
More complex and in length methodology for record opening then at whatever bank in the about.

5.1.3OPPORTUNITIES
Include new goods/facilities on its result line.
Bank ought to take enthusiasm toward the new market segments like it business, programming business and so forth throughout this way; observing and stock arrangement of all instrumentation may be etc.

A huge possibility may be on turned into innovator previously, introducing” web dealer Accounts” in the country.
Coating saving money hours furthermore gave that a greater amount considering extension offices with clienteles.
Expanding the ATMs to additional areas.
Expanding credit administrations should easier groups, hence diminishing that hazard for reduction Furthermore civilizing the picture of the bank.
Whether new frameworks would have acquainted to those abroad Pakistani’s, afterward bank camwood get the business of installments more than whatever available bank or” Hundi Business”.
Previously, December 2003 that bank is privatized, and the good fortune may be there on catch those advertise considering in private section those banks could do well over in legislature fragment. Likewise, everywhere throughout the globe bank may be typically from claiming private nature.

5.1.4THREATS
1. Expanding no of private / outside banks in the country.
2. around the world mechanical transformation change.
3. Political – investment condition of the country.
4. Diminishing in the business activities in the state.
5. Decreasing rates of the funds in distinctive areas about persons.
6. Deteriorating certainty about kin in banks.
7. Doubts of the moguls.
8. Office about finer benefits by the private banks.
9. Fails to offer consistency Previously, Govt. Approach.

To SWOT analysis, we could attain that the management of the bank ought to affirm sorted out arranging to those bank’s growth, taking with them constantly on oversaw economy levels of the bank, determine new segment of the clienteles, putting forth newer frameworks to its clienteles. Similarly, THE HABIB BANK OF PASKISTAN need More Customer What’s more their wants, that point it will turn into once more those business pioneers.

5.2 Financial Statements
I used Financial Statements of The Habib Bank of Pakistan for the last three years from 2015 to 2017, because The Habib Bank of Pakistan does not have Financial Statements of 2011 and 2012, due to court case
Financial Statements of The Habib Bank of Pakistan for the last three years 2015, 2016 & 2017 are:
The Habib Bank of Pakistan
Profit and Loss Account
As on 31st December
2015
Rs. (000) 2016
Rs. (000) 2017
Rs. (000)
Mark-up/ return/interest earned 11,643,963 17,539,538 17,752,652
Mark-up/return/ interest expensed 7,573,722 13,939,377 16,614,000
Net mark-up/interest income
4,070,241 3,600,161 1,138,652
Provision against non-performing loans and advances-net 340,626 1,616,421 18,863,580
Provision for diminution in the value of investments 33,000 24,479 388,757
Bad debts written off directly 100 246,869 —-
373,726 1,887,769 19,252,337
Net mark-up/interest income after provisions 3,696,515 1,712,392 (18,113,685)
NON-MARK-UP/INTEREST INCOME Fee, commission and brokerage income 473,212 659,488 579,520
Dividend income 1,385,875 1,812,870 2,025,160
Income from dealing in foreign currencies 239,804 377,233 324,327
Gain on Sale of Securities 389,063 2,039,535 733,787
Unrealized Gain / Loss on Revaluation of Investments classified as held for trading — —- ——–
Other income 466,435 547,635 526,186
Total non-mark-up/interest income
2,954,389 5,436,761 4,188,980
6,650,904 7,149,153 (13,924,705)
NON-MARK-UP/ INTEREST EXPENSES Administrative expenses 1,751,970 2,255,342 2,808,835
Provision against lending to financial Institution 130,000 ——– 10,101
Provision against off Balance Sheet Items 175 292 —-
Provision against receivable from NIT — —- —
Other charges 38 37,950 114,700
Total non- mark-up/ interest expenses
(1,882,183) (2,293,584) (2,933,636)
4,768,721 4,855,569 (16,858,341)
Extraordinary /unusual items ——– ——— ———
PROFIT BEFORE TAXATION
4,768,721 4,855,569 (16,858,341)
Taxation For the year –Current 880,997 170,700 207,600
-Deferred For prior year –Current — (19,921) 1,052,000
-Deferred 83,469 250,772 8,033,001
964,466 401,551 6,773,401
PROFIT AFTER TAXATION
3,804,255 4,454,018 (10,084,940)
Un-appropriate profit b/f 169,817 3,226,961 3,468,956
Reversal of Excess management fee accrued last year —- —– 6,250
Transfer from surplus on revaluation of Fixed assets – net of tax 6,174 5,866 5,572
175,991 3,232,827 3,468,278
Profit available for appropriation 3,980,246 7,686,845 (6,616,662)
The Habib Bank of Pakistan
Balance Sheet
As on 31st December
2015
Rs. (000) 2016
Rs. (000) 2017
Rs. (000)
ASSETS: Cash and Balances with treasury Banks 14,054,859 14,210,302 10,685,058
Balances with other Banks 3,722,089 1,927,662 2,178,455
Lending’s to financial institutions 11,846,823 2,450,000 633,333
Investments 28,233,211 73,461,693 22,689,608
Advances 101,319,954 133,899,143 131,724,113
Other assets 3,609,457 5,789,116 6,122,406
Operating fixed assets 2,068,744 3,252,759 3,471,838
Deferred Tax assets
———- ——— 8,388,162
Total Assets
164,855,137 234,990,675 185,892,973
LIABILITIES
Bills payable 856,448 937,647 1,219,801
Borrowings from financial institutions 6,989,424 17,842,915 12,278,773
Deposits and Other accounts 137,727,606 191,968,377 164,071,732
Subordinated Loans —— ——– —–
Liabilities against assets subject to finance lease 40,988 40,321 30,632
Other liabilities 2,816,341 2,983,977 4,564,481
Deferred Tax liabilities 298,616 2,205,530 ——-
Total Liabilities
148,729,423 215,978,767 182,165,419
Net Assets
16,125,714 19,011,908 3,727,554
Represented By: Share Capital 2,902,490 4,230,379 5,287,974
Reserves 4,537,732 7,427,232 7,427,232
Un-appropriate Profit 3,219,246 3,468,956 (7,674,257)
Total Equity
10,658,968 15,126,567 5,040,949
Surplus on Revaluation of Assets
5,466,746 3,885,341 (1,313,395)

Analysis
For the analysis, management and the investors make some ratio analysis, in which Liquidity Ratios, Profitability Ratios, Market Ratios, Activity Ratios, Leverage ratios are familiar.

Ratios
In order to analysis the financial performance of the bank, investors and management use the ratio analysis in which following ratios are calculated:
1.Liquidity Ratios
2.Leverage Ratios
3.Profitability Ratios
4.Activity Ratios
5.Market Ratios
Liquidity Ratios
Liquidity ratios means to measure short term solvency of the company. Ability of company to pay off its short term debts. Following ratios are calculated in order to measure the short-term solvency of the company
Current Ratio
Acid Test Ratio
Working Capital
Current Ratio
Current Assets = Cash and Balance with Treasury Banks + Balance with other Banks +Lending to Financial Institution + Short Investment + Short Advances + Other Assets
Current Liabilities = Bill Payables + Short Borrowing + Short Deposit + Other Liabilities
Current Ratio = Current Assets / Current liabilities
Year 2015 Year 2016 Year 2017
=Rs.122,347,224 / Rs. 94,274,512
= 1.3 : 1 =Rs.173,120,729/ Rs.140,202,371
= 1.23 : 1 =Rs.128,967,953/ Rs.107,914,057
= 1.19 : 1
Workings:
For 2015
Current Assets= 14,054,859 + 3,722,089 + 11,846,823 + 20,501,978 +68,612,018 + 3,609,457
= Rs.122, 347, 224
Current Liabilities = 856, 448 + 6, 989, 424 + 83, 612, 299 + 2,816, 341
= Rs. 94,274,512
For 2016
Current Assets= 14,210,302 +1,927,662 + 2,450,000 + 65,857,861 + 82,885,788+ 5,789,116
= Rs.173, 120,729
Current Liabilities= 937,647 + 15,857,522 + 120,423,225 + 2,983,977
= Rs. 140,202,371
For 2017
Current Assets= 10,685,057 + 2,178,455 + 633,333 + 20,038,517 + 89,323,454 + 6,109,137
=Rs. 128,967,953
Current Liabilities= 1,219,801 + 10,601,169 + 91,528,830 + 4,564,257
= Rs. 107,914,057
Explanation:
The standard of this ratio is 2:1, means current assets are twice the current liabilities. But The Habib Bank of Pakistan has a lower current ratio to the standard rate. In 2017 it was 1.3, in 2017, 1.23 and in 2017 it will be 1.19 which is more than the previous year.

Acid Test Ratio
Current Assets = Cash and Balance with Treasury Banks + Balance with other Banks +Lending to Financial Institution + Short Investment + Short Advances + Other Assets
Current Liabilities = Bill Payables + Short Borrowing + Short Deposit + Other Liabilities
Prepaid expenses = Advances, deposits, advance rent and other prepayments
Acid Test Ratio = Current Assets – (Inventories + prepayments) / Current liabilities
Year 2015 Year 2016 Year 2017
= Rs.122, 347, 224- Rs.102, 571/Rs. 94,274,512
= 1.29
= Rs.173, 120,729- Rs. 159,438/ Rs. 140,202,371
= 1.23
=Rs. 128,967,953-Rs.161,553/ Rs. 107,914,057
= 1.19
Workings:
For 2015
Current Assets= 14,054,859 + 3,722,089 + 11,846,823 + 20,501,978 +68,612,018 + 3,609,457
= Rs.122, 347, 224
Current Liabilities = 856, 448 + 6, 989, 424 + 83, 612, 299 + 2,816, 341
= Rs. 94,274,512
Prepaid Expenses = Rs.102, 571
For 2016
Current Assets= 14,210,302 +1,927,662 + 2,450,000 + 65,857,861 + 82,885,788+ 5,789,116
= Rs.173, 120,729
Current Liabilities= 937,647 + 15,857,522 + 120,423,225 + 2,983,977
= Rs. 140,202,371
Prepaid Expenses = Rs.159, 438
For 2017
Current Assets = 10,685,057 + 2,178,455 + 633,333 + 20,038,517 + 89,323,454 +6,109,137
=Rs. 128,967,953
Current Liabilities= 1,219,801 + 10,601,169 + 91,528,830 + 4,564,257
= Rs. 107,914,057
Prepaid Expenses = Rs.161, 553
Explanation:
As the Acid test ratio from Year 2017 to 2017 is: Rs.1.29, Rs. 1.23 and Rs 1.19Respectively. In all three years acid test ratio is slight more than is standard ratio. It must be 1:1 in order to proof the short-term solvency of the bank to pay off is short term bank.

Working capital
Working Capital = Current Assets – Current Liabilities
Year 2015
Year 2016 Year 2017
=Rs.122,347,224-Rs. 94,274,512
=Rs.173,120,729- Rs. 140,202,371 =Rs. 128,967,953– Rs.107,914,057
= Rs.28,072,712 = Rs.32,918,358 = Rs.21,053,896
Workings:
For 2015
Current Assets = Rs.122, 347, 224
Current Liabilities = Rs. 94,274,512
For 2016
Current Assets = Rs.173, 120,729
Current Liabilities = Rs. 140,202,371
For 2017
Current Assets = Rs. 128,967,953
Current Liabilities = Rs. 107,914,057
Graphical Representation:
Explanation:
The working capital is rapidly increasing from 2017 to 2017. Because the current assets of THE HABIB BANK OF PASKISTAN are rapidly, increase. In 2008, it declined but not in a rapid as it grows 2017 to 2017.

Leverage Ratios
These ratios show the capital structure of the firm. Through these ratios we find that how the firm finance their activities. It is more important for the lender to assess that the firm can repay the loan amount or not. Increasing debt increases the likelihood of bankruptcy of the firm. Following ratios falls under this category,
Time Interest Earned
Debt Ratio
Debt to Equity Ratio
Debt to Tangible Net Worth
Total Capitalization Ratio
Time Interest Earned Ratio:
Time Interest Earned = Profit before tax + Interest Expense (EBIT) / Interest Expense
Year 2015 Year 2016 Year 2017
=Rs.4,768,721/Rs.7,573,722
= 0.63 =Rs.4,855,569/Rs.13,939,377
= 0.35 =(Rs.16,832,906)/Rs.16,614,000
= -1.01
Working
Given in the Profit and Loss Account
For 2015
Profit before tax+Interest Expense = Rs.4, 768,721
Interest Expense = Rs.7, 573,722
For 2016
Profit before tax+Interest Expense = Rs. 4,855,569
Interest Expense = Rs. 13,939,377
For 2017
Profit before tax+Interest Expense = Rs16832906
Interest Expense = Rs. 16,614,000
Explanation:
The Time Interest Earned Ratio of THE HABIB BANK OF PASKISTAN is not better. The ratio is consistently is declining even in 2017 it went negative. This graph is showing that the bank EBIT is not enough to cover its interest expenses.

Debt Ratio
Total Debt= Bills Payable + Borrowings from financial institutions + Deposits ; other accounts + Subordinate Loans + Liabilities against assets subject to finance lease + deferred tax liabilities+ Other liabilities
Total Assets = Given in the Balance Sheet
Debt Ratio = (Total Debt / Total Assets) * 100
Year 2015 Year 2016 Year 2017
=Rs.148,729,423/Rs.164,855,137
= 90.21% =Rs.215,978,767/Rs.234,990,675
= 91.90% =Rs.182,165,419/Rs.185,909,120
= 97.99%
Working
For 2015
Total Debt= 856,448 + 6,989,424 + 137,727,606 + 0 + 40,988+298,616+2,816,341
= Rs.148, 729,423
For 2016
Total Debt= 937,647 + 17,842,915 + 191,968,377 + 0 +40,321+2,205,530+2,983,977
`= Rs.215, 978,767
For 2017
Total Debt= 1,219,801, + 12,278,773 + 164,072,532 + 0 + 30,632+ 0 +4,564,481
= Rs. 182,165,419
Explanation:
Debt ratio is measure of debt with the total assets. The graph shows that the debt ratio is consistently increasing that indicates the dependence on debt is increasing and in 2017 it is at the higher level. From 2017 to 2017 it rapidly increased. In 2017 the total Debt was the almost 97% of Total Assets.
Debt / Equity Ratio
Total Debt= Bills Payable + Borrowings from financial institutions + Deposits ; other accounts + Subordinate Loans + Liabilities against assets subject to finance lease + deferred tax liabilities+ Other liabilities
Total Equity= Share Capital + Reserves + Un-appropriated Profit
Debt to Equity Ratio = Total Debt / Total Equity
Year 2015 Year 2016 Year 2017
=Rs.148,729,423/Rs.10,658,968
= 13.95 =Rs.215,978,767/Rs.15,126,567
= 14.27 =Rs.182,165,419/Rs.5,040,949
= 36.13
Working
For 2015
Total Debt = 856,448 + 6,989,424 + 137,727,606 + 0 + 40,988+298,616+2,816,341
= Rs.148, 729,423
Total Equity= 2,902,490 + 4,537,232 + 3,219,246
= Rs.10, 658,968
For 2016
Total Debt = 937,647 + 17,842,915 + 191,968,377 + 0 +40,321+2,205,530+2,983,977
= Rs.215, 978,767
Total Equity= 4,230,379 + 7,427,232 + 3,468,956
= Rs.15, 126,567
For 2017
Total Debt = 1,219,801, + 12,278,773 + 164,072,532 + 0 + 30,632+ 0 +4,564,481
= Rs.182, 165,419
Total Equity= 5,287,974 + 7,427,232 + (– 7,658,686 (Loss))
= Rs.5, 040,949
Explanation:
As we already observed that the debt is increasing, in this graph we compare it with the equity. We find the consistent increase in the debt to equity ratio. In 2017, it was at the higher level. The debt exceeded the equity.

Debt to Tangible Net Worth
Tangible Net Worth = Total Assets – Liabilities – Intangible Assets
Debt to Tangible Net Worth = Total debt / Tangible Net Worth
Year 2015 Year 2016 Year 2017
=Rs.145,614,466/Rs.16,095,248
= 9.05 =Rs.210,789,260/Rs.18,993,725
= 11.10 =Rs.177,601,738/Rs.3,735,613
= 47.54
Working
For 2015
Tangible Net Worth= 164,855,137 – 148,729,423 – 30,466
= Rs.16, 095,248
For 2016
Tangible Net Worth= 234,990,675 – 215,978,767 – 18,183
= Rs.18, 993,725
For 2017
Tangible Net Worth= 185,909,120 – 182,165,995 – 7,512
= Rs.3, 735,613
Explanation:
As the graph is showing that the debt to tangible net worth ratio is increasing from 2017 to 2017 it slightly increased but from 2017 to 2017 it rapidly increased due to the increase in debt. So The Habib Bank of Pakistan has not Net Tangible Net Worth to cover the Debt.

Total capitalization Ratio

Year 2015 Year 2016 Year 2017
=Rs.36,296,156/ Rs.46,955,124
= 0.7729 Times =Rs.55,571,712/Rs. 70,698,279
= 0.7860 Times =Rs. 46,755,209/ Rs.51,796,158
= 0.9026 Times
Long Term Debt= Deposit and other account + Liabilities against assets subject to finance lease + Deferred tax liabilities + other liabilities
Working
For 2015
Long Term Debt= 35,880,568+ 23168+298,616+ 93,804
= Rs.36, 296,156
= 36,296,156/ (36,296,156+10,658,968)
= 36,296,156/ 46,955,124
For 2016
Long Term Debt= 53,219,973+30615+2,205,530+115,594
= Rs.55, 571,712
=55,571,712/ (55,571,712 + 15,126,567)
=55,571,712/ 70,698,279
For 2017
Long Term Debt=46,555,790+19859+0+ 179,560
= Rs.46, 755,209
= 46,755,209/ (46,755,209+ 5,040,949)
= 46,755,209/51, 796, 15
Explanation:
The total capitalization ratio compares the total debt with the sum of debt and equity. The low capitalization ratio indicates the financial fitness of the firm. According to the graph, I can see that the ratio in 2017 is higher. In 2017, it was at the lowest level in selected years.

Profitability Ratios
Profitability ratios measure the earning ability of the firm. Following ratios are calculated:
Net Profit Margin
Return on Assets
DuPont Return on Assets
Operating Income Margin
Return on operating Assets
Return on Total Equity
Gross Profit Margin
Net Profit Margin
Net Profit = Profit after Taxation
Total Revenue = Mark-up/ return/interest earned
Net Profit Margin = Net Profit / Total Revenue
Year 2015 Year 2016 Year 2017
= Rs.3,804,255 / Rs.11,643,963
= 32.67% = Rs.4,454,018 / Rs. 17,539,538
= 25.39% = (Rs.10,084,940) / Rs.17,752,652
= -56.81%
Working
For 2015
Net Profit = Rs.3, 804,255
Total Revenue = Rs.11, 643,963
For 2016
Net Profit = Rs.4, 454,018
Total Revenue = Rs.17, 539,538
For 2017
Net Profit = Rs. -10,084,940
Total Revenue = Rs.17, 752,652
Explanation:
The net profit margin is declining from 2006 to 2008, as shown in graph. In 2010the net profit margin is 32.67% which is higher in selected three years. After this it starts to decline and in 2011 The Habib Bank of Pakistan has to bear a loss.

Return on Assets
Net Profit = Profit after Taxation
Total Assets = Given in the Balance Sheet

ROA = Net Income / Total Assets
Year 2015 Year 2016 Year 2017
= Rs.3,804,255 / Rs.164,855,137
= 2.31% = Rs.4,454,018 / Rs.234,990,675
= 1.895% = (Rs.10,084,940)/ Rs.185,892,973
= -5.425%
Working
For 2015
Net Profit = 3,804,255
Total Assets = 164,855,137
For 2016
Net Profit = 4,454,018
Total Assets = 234,990,675
For 2017
Net Profit = 10,084,940
Total Assets = 185,892,973
Explanation:
It is simple Return on Assets, which calculate through net income, and total assets but the result is same as in Du-Pont ROA. It is showing the consistent decline in the return on Assets.
DuPont Return on Assets Ratio
Net Profit = Profit after Taxation
Total Revenue = Mark-up/ return/interest earned
Total Assets = Given in the Balance Sheet
Du-Pont ROA = (Net Income / Total Revenue) x (Total Revenue / Total Assets)
Year 2015 Year 2016 Year 2017
= (3,804,255/11,643,963) x (11,643,963/164,855,137)
= 2.31% = (4,454,018/17,539,538) x (17,539,538/234,990,675)
= 1.894% = (-10,084,940/17,752,652) x (17,752,652/185,892,973)
= -5.425%
Working
For 2015
Net Profit = 3,804,255
Total Revenue = 11,643,963
Total Assets = 164,855,137
For 2016
Net Profit = 4,454,018
Total Revenue = 17,539,538
Total Assets = 234,990,675
For 2017
Net Profit = -10,084,940
Total Revenue = 17,752,652
Total Assets = 185,892,973
Explanation:
DuPont ROA Analysis is the approach to calculate the Return on Assets by taking Net Income, Total Revenue and Total Assets. It shows the effect of revenue on the net income and the total assets. When we calculate the DuPont ROA of The Habib Bank of Pakistan, we find consistently the decline in the return on assets. Net Profit Margin is Declining on the other hand the total Asset were not generating enough revenue. Therefore, the Return on Assets decline in 2008 and it goes to negative.

Operating Income Margin
Operating Income Margin = Earnings Before tax + interest expenses / Total Revenue
Year 2015 Year 2016 Year 2017
=Rs.4,768,721/Rs.11,643,963
= 40.95% =Rs.4,855,569/Rs.17,539,538
= 27.68% =( Rs.2,443,41)/Rs.17,752,652
= -1.376%
Working
For 2015
Earnings Before tax = 4,768,721
Total Revenue = 11,643,963
For 2016
Earnings Before tax = 4,855,569
Total Revenue = 17,539,538
For 2017
Earnings Before tax = -16,858,341
Total Revenue = 17,752,652
Explanation:
Graph show a decline in the revenues. In 2017 THE HABIB BANK OF PASKISTAN generate enough revenue but in 2017 the provision of not performing loans decline the profit even it went in negative which is -94.96%
Return on Operating Assets
Operating Assets = Cash and Balance with Treasury Banks + Balance with other Banks +Lending to Financial Institution + Advances + Operating fixed Assets
Return on Operating Assets = EBIT / Operating Assets
= Rs. 4,768,721/ Rs.133,012,469
= 3.58% = Rs.4,855,569/Rs.155,739,866
= 3.12% = Rs. -16,858,341/Rs.148,692,796
= -11.33%
Working
For 2015
Earnings Before tax = Rs. 4,768,721
Operating Assets = 14,054,859 + 3,722,089 +11,846,823+101,319,954+2,068,744
= Rs.133, 012,469
For 2016
Earnings Before tax = Rs. 4,855,569
Operating Assets = 14,210,302 + 1,927,662 + 2,450,000 + 133,899,143 + 3,252,759
= Rs.155, 739,866
For 2017
Earnings Before tax = Rs. -16,858,341
Operating Assets = 10,685,057 + 2,178,455 + 633,333+131,724,113+3,471,838
= Rs.148, 692,796
Explanation:
As the Return on Operating Assets from Year 2017 to 2017 is: 3.58%, 3.12% and
-11.33% respectively. As for as index analysis concern return on operating assets has been an decreasing from 2017 to 2017.it is much below standard in banking industry.
Return in Total Equity
Average Stockholder Equity = Share Capital + Reserves + Un-appropriated Profit
ROE = (Net Income / Average Stockholder Equity) * 100
Year 2015 Year 2016 Year 2017
=Rs.3,804,255/Rs.10,658,968
= 35.69% =Rs.4,454,018/Rs.15,126,567
= 29.45% =(Rs.10,084,940)/Rs.5,040,949
= -200.06%
Working
For 2015
Net Profit = 3,804,255
Average Stockholder Equity = 2,902,490+4,537,232+3,219,246
= 10,658,968
For 2016
Net Profit = 4,454,018
Average Stockholder Equity = 4,230,379+ 7,427,232+ 3,452,842
= 15,110,453
For 2017
Net Profit = -10,084,940
Average Stockholder Equity = 5,287,974+7,427,232+ (-7,674,257)
= 5,040,949
Explanation:
Return on Owner’s Equity in the Year 2017 is 35.69%, in the Year 2017 is 29.35% and in the Year 2017 is -200.6% which shows an decreasing trend to a lesser extent from year on year basis as well as it is not meet the standard of banking industry.

Gross Profit Margin
Gross Profit Margin = (Gross Profit / Total Revenue) * 100
Year 2015 Year 2016 Year 2017
=Rs.4,070,241/Rs.11,643,963
= 34.96% =Rs.3,600,161/Rs.17,539,538
= 20.53% =Rs.1,138,652/Rs.17,752,652
= 6.41%

Working
Give in the Profit and Loss Account
For 2015
Gross Profit = Net mark-up/interest income = Rs.4, 070,241
Total Revenue = Mark-up/ return/interest earned = Rs.11, 643,963
For 2016
Gross Profit = Net mark-up/interest income = Rs.3, 600,161
Total Revenue = Mark-up/ return/interest earned = Rs.17, 539,538
For 2017
Gross Profit = Net mark-up/interest income = Rs. Rs.1, 138,652
Total Revenue = Mark-up/ return/interest earned = Rs. 17,752,652
Explanation:
This ratio also shows the decline in revenue of THE HABIB BANK OF PASKISTAN. In 2017, it nearly 35% but after 2017 it start to decline and in 2017 it merely 6.41%. Because the revenue of The Habib Bank of Pakistan declines so the Gross Profit automatically decline.

Activity Ratios
Activity ratios measure a firm’s ability to convert different accounts within their balance sheets into cash or sales.

Total Assets Turnover
Fixed Assets Turnover
Total Assets Turnover
Total Assets Turnover Ratio = Interest or Mark-up / Total Assets
Year 2015 Year 2016 Year 2017
=Rs.11,643,963/Rs.164,855,137
= 0.071 times =Rs.17,539,538/Rs.234,990,675
= 0.075 times =Rs.17,752,652/Rs.185,892,973
= 0.095 times
Working
Give in the Profit and Loss Account and Balance Sheet
For 2015
Mark-up/ return/interest earned = Rs.11, 643,963
Total Assets = Rs.164, 855,137
For 2016
Mark-up/ return/interest earned = Rs.17, 539,538
Total Assets = Rs. 234,990,675
For 2017
Mark-up/ return/interest earned = Rs.17, 752,652
Total Assets = Rs. 185,892,973
Explanation:
Total Asset turnover ratio measures the firm’s effectiveness in generating the revenue from its investments in total assets. The graph is showing the increase in the total assets turnover ratio. But it’s not real growth because when we analyze the Financial Statements of THE HABIB BANK OF PASKISTAN we find that in 2017 the income and assets increased so the ratio also increased but in 2017 income decreased whereas the assets decrease with more ratios. So, this factor caused the increase in the total assets turnover in 2017.

Fixed Assets Turnover
Fixed Assets Turnover Ratio = Interest or Mark-up / Fixed Assets
Year 2015 Year 2016 Year 2017
=Rs.11,643,963/Rs.2,068,744
= 5.63 times =Rs.17,539,538/Rs.3,252,759
= 5.39 times =Rs.17,752,652/Rs.3,471,838
= 5.11 times
Working
Give in the Profit and Loss Account and Balance Sheet
For 2015
Interest or Mark-up = Rs.11, 643,963
Fixes Assets = Operating Fixes Assets = Rs.2, 068,744
For 2016
Interest or Mark-up = Rs.17, 539,538
Fixes Assets = Operating Fixes Assets = Rs.3, 252,759
For 2017
Interest or Mark-up = Rs. Rs.17, 752,652
Fixes Assets = Operating Fixes Assets = Rs.3, 471,838
Explanation:
The fixed asset turnover ratio measures the company’s effectiveness in generating sales from its investment in fixed assets. The graph shows the decline in fixed assets turnover. It means that the generation of revenue on the fixed assets is declining. The Habib Bank of Pakistan is not using its fixed assets effectively.

Market Ratios
Market ratios are commonly used by the investors to access the performance of a business as an investment and also the cost of issuing stock.

Dividend per share
Earnings per Share
Price / Earnings Ratio
Dividend per share
Dividend per share = Dividend paid to Shareholders / Number of shares outstanding
Note: The Habib Bank of Pakistan has not paid dividend so this ratio is not calculated
Earnings per Share
Earnings Per Share = Net Income / Average No. of Shares Outstanding
Year 2015 Year 2016 Year 2017
=Rs.3,804,255,000/Rs.289,602,365
= Rs.13.14 =Rs.4,454,018,000/Rs.423,037,901
= Rs.10.53 =(Rs.10,084,940,000)/Rs.528,797,376
=Rs.(-19.07 )
Explanation:
The earnings per share in 2017 were 13.14, which decrease in 2017, and were 10.53. But in 2017 due to loss the dividend per share went in negative its mean that in 2013 shareholders must bear a loss.

Price / Earnings Ratio
Price to Earnings Ratio = Market Price per Share / Earning per Share
Year 2015 Year 2016 Year 2017
= 101 / 13.14
= Rs.7.69 = 97.85 / 10.53
= Rs.9.29 = 13.20 / -19.07
= Rs. (-6.50)
Explanation:
The P/E ratio was 7.69 in 2017. In 2017, it increased due to the decline in market price so the shares of THE HABIB BANK OF PASKISTAN look more attractive in 2007 because the P/E ratio is higher but in 2017 as we already have seen in DPS and EPS calculation the P/E ratio went in negative. In 2017, THE HABIB BANK OF PASKISTAN has to bear a loss so the DPS and EPS declined so the P/E ratio was also decreased
CHAPTER.6
CONCLUSION
6.1 Recommendation & Suggestion
The Habib Bank of Pakistan policy should be transparences & clear.

The Habib Bank of Pakistan is required to motivate their supervisor branch manager that they treat with their employee fairly.
On the web saving money ought to should a chance to be introducing overall those extensions.

The Habib Bank of Pakistan should improve its performance appraisal system and it must be on merit.

Employee training is essential, The Habib Bank of Pakistan should conduct training program for their workers.

The Habib Bank of Pakistan should make a good working condition like branch physical environment working desk etc. If possible to avoid overcrowding and allow each worker his or her own personal space.

The Habib Bank of Pakistan should have differentiated ladies counter ought should a chance to be there.

The Habib Bank of Pakistan should a formal recognition program like employee of the month etc. to motivate the employee.

The Habib Bank of Pakistan should care employee’s incentives, bonuses ; stock options.
On the web saving money ought to should a chance to be introducing overall those extensions.
The fiscal illustration must on be committed additional direct Furthermore trustworthy.
The Habib Bank of Pakistan should motivate its employee with effective communication.

The Habib Bank of Pakistan should also work on latest advertising techniques, promotional strategies.
6.2 Conclusion
As we know internship is the great tool for getting practical and professional Knowledge. As you have seen, I have done my internship in The Habib Bank of Pakistan Branch Upper Mall Lahore. I have leant a lot of professional activities from this branch. During the work in different departments of bank I learn something new from each department; different tasks which I performed during my internship are already explained in report. After writing comprehensively report on The Habib Bank of Pakistan I have reached at this point on same aspect.
The Habib Bank of Pakistan have strength over other banks as you have seen in SWOT analysis. But on the other hand during my stay at this branch and after write this report. I have found some issue regarding The Habib Bank of Pakistan promotional activities. The Habib Bank of Pakistan don’t have modern marketing concept as compare to others. Presently now till The Habib Bank of Pakistan has adopting traditional activities but The Habib Bank of Pakistan management concept cannot know it is age of competition.
As I have written in the critical analysis The Habib Bank of Pakistan HR parties is also very poor. Employee job satisfaction is not up to market. The Habib Bank of Pakistan has not any sound performance appraisal system where employee could get maximum benefits. On the other hand, The Habib Bank of Pakistan needs a good supervisor and leadership skills and ability to treat employee fairly.
The Habib Bank of Pakistan should teach your supervisor, managers to use positive feedback. I have also observed The Habib Bank of Pakistan is not offering attractive salary to their employee as compare to other banks. Salary is not a motivator for workers. But they do not want to be paid fairly. The Habib Bank of Pakistan must make sure that it has clear policies regarding to salaries and bonuses.