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Internship Report 2

The document provides background information on Bank Al-Habib (BAHL) including its history, prospects, services, leadership, branches, and vision. Some key points: - BAHL was established in 1991 as the first privately owned commercial bank granted permission after Pakistan's banking privatization. It is part of the prominent Dawood Habib Group. - Currently BAHL has over 225 branches across Pakistan and 1 branch in Bahrain, and is considered one of Pakistan's leading banks. - The bank offers various services including being a partner in the 1-Link ATM network and operating an investment banking arm through Al-Habib Capital Markets. - Under new leadership, BAHL has expanded

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Ahmad Ali
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594 views

Internship Report 2

The document provides background information on Bank Al-Habib (BAHL) including its history, prospects, services, leadership, branches, and vision. Some key points: - BAHL was established in 1991 as the first privately owned commercial bank granted permission after Pakistan's banking privatization. It is part of the prominent Dawood Habib Group. - Currently BAHL has over 225 branches across Pakistan and 1 branch in Bahrain, and is considered one of Pakistan's leading banks. - The bank offers various services including being a partner in the 1-Link ATM network and operating an investment banking arm through Al-Habib Capital Markets. - Under new leadership, BAHL has expanded

Uploaded by

Ahmad Ali
Copyright
© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 20

CHAPTER NO-1

INTRODUCTION
TO REPORT
1.1 BACKGROUND AND PURPOSE OF THE STUDY
It is a common practice at Universities during the completion of the masters and
bachelors program to attain practical experience in the different fields. QUAID _E_AZAM
COLLEGE OF COMMERECE, University of Peshawar, requires students to undergo an eight
weeks internship program. The selection of the firm is based on the choice of the student. The
college requires an internship report based on the theoretical and practical learning of the
student.
Main purpose of this program is to make student familiar with the practical work, as
there is great difference between what they have learnt during their Master HRM and how the
job is practically done.
Another important aspect of the internship program is that internee is placed in most of
the departments of the organization through job rotation. It provides a glance of each
department, as the period is too short for learning in detail.
Other objectives of the study are as follows:

To gather relevant information then interpret and analyze it in a useful manner.

To define and describe various functions of the bank.

To highlight the outline facilities and products offered by BAHL to its customers.

To analyze the bank through different techniques i-e Horizontal, Vertical, Trend and
SWOT analysis.

To get exposure and to develop the interpersonal communication skill.

1.2 SCOPE OF WORK

It is a compulsory requirement for the award of Masters Degree in Businsess


Administration.

This report is concerned with the performance of the BAHL Main Branch
Peshawar.

It enlightens the consumer banking functions at the BAHL however the financial
analysis is based on the operations of the bank.

It will help the present and prospective students of the college in making
assignment and writing report on the BAHL.

It can also provide help to BAHLs management in identifying their Strengths,


Weaknesses, Opportunities and Threats.

It can also provide assistance to students seeking financial data for analysis.

1.3 IMPORTANCE OF STUDY


Banks play a central and very important role in the economic life of a country, thats
why they are considered as the lifeblood of modern economy. Today no one can deny the
importance of banking in the economy. They facilitate and expedite trade and commerce and
provide a variety of services that one cant imagine without banks.
I have chosen the BANK AL-HABIB Limited for my internship because it sponsor has a
strong banking background. Furthermore it was convenient and accessible to me. Besides this,
BAHL plays an important role in the economic development of Pakistan.

1.4 METHODOLOGY OF STUDY


The methodology for the collection of information and data was based on the two
primary modes of data.

1.4.1 SOURCES OF PRIMARY DATA:

Personal Observation.

Interviews of Personnel.

1.4.2 SOURCES OF SECONDARY DATA:

Annual Reports

Brochures.

Books

Web sites

Pamphlets interbank memos.

1.5 LIMITATION OF STUDY


The most important limitation from which the study suffers is the non-availability of
information in a manner required for analysis and the secrecy of the bank.
Another important limitation of the study is time constraint, Two months period is too
less to study the operations of the bank thoroughly.

CHAPTER NO-2

HISTORY AND PROSPECTS OF BANK AL-HABIB


2.1 HISTORY
AL-Habib is a company of the Dawood Habib group,a renowed group
having a track record of commercial banking dating back to the 1940's.the group was
amongst the founder member of Habib bank limited(HBL) in 1941 in Bombay.The head office of
HBL was subsequently shifted to Karachi.Since then,HBL has played a vital role in meeting the
financial and banking needs of Pakistan.Within a short span of time, a vast network of branches
was established to facilitate trade,commerce and industrialization in the country.HBL continued
to record tremendous growth and progress and emerged as the leading commercial bank in
pakistan when it was nationalized along with all other banks in pakistan on December 31,1973.
After nearly 18 years of nationalization,the government of pakistan decided,in 1991 to
allow the private sector to establish commercial banks in the country.it was under this
privatization policy that Dawood Habib group was the first to be granted permission by the
government of pakistan to set up a commercial bank. It was in October 1991 that AL-Habib was
incorporated and was subsequently listed on the KSE and started full-fledged operation as a
sheduled bank in january 1992.
Mr.Hamid D. Habib,grandson of the founder of Habib Group, was the founder chairman
of AL-Habib.He was also a director in HBL in 1954 and was subsequently appointed as chairman
of HBL in 1971.MR Hamid D.Habib has also held senior position in the GoP,including chairman,
export promotion bureau, and as special adviser to the president of pakistan on finance ,
economics and internal trade affairs, with the rank of a fedral minister.After the death of
Mr.Hamid D.Habib in may 2000,Mr.Ali Raza D.Habib who was a director on the board, was
appointed as the chairman of the bank.

Mr.Rashid D.Habib,who served as the managing director of HBL from 1953-1973, was
appointed as the managing director and chief executive of AL-Habib.He served in this position
from the inception of the bank till the day he expired in 1994.during this tenure at HBL, he
introduced many innovative scheme such as evening banking,school banking, children's saving
scheme, computerized banking credit cards and traveler's cheques.
Mr. Abbas D. Habib who previously held the position of the joint managing director of
the bank since its inception was appointed as the managing director and chief excutive after
Mr. Rashid D. Habib's death.Mr Abbas D.Habib has over 40 years of extensive commercial,
industrial and banking experence in the local and international business environment, he has
senior management positions in various organization of the Habib group including Habib sons
bank, London,where he was appointed as the regional director and later as the executive
director.
2.2 PROSPECTS
AL-Habib has progressed in all of its banking activities and is considered to be one of the
leading banks in the private sector.
The bank has been assigned long term credit rating of `AA` and a short term credit rating
of ``A1+``by PACRA, denoting very strong capacity for timely payment of financial
commitments.
The bank was listed at the KSE in january 1992 through an IPO of PKR 150 mn.The
market price of bank share was PKR 64.25 as on november 2009,and the total market
capatalization of the bank was 16,890mn on that date.
At the time the bank start operations, the total equity of the bank was PKR 300mn
which has increased to PKR 5,365mn.The increase has been funded entirely out of the profit of
the bank.
2.3 INTERNATIONAL CORRESPONDENCE
Bank maintains correspondent relation with the following international banks:

American

Express

Bank,USA;Banco

Di

Roma,Italy;Commerzbank

and

Dresdner

Bank,Germany;The Royal Bank of Canada,Canada;Hong Kong and Shanghai Banking Corporation


Ltd;Hong Kong.The bank follows the internet banking code NetBanking and secruity is entrusted by
Verisign.This was launched with a contract made with TPS,(Pakistan).The bank support the MNET switch
as a result of MoU signed between MNET and 1-Link.

2.4 SERVICES
Bank AL-Habib is one of the eleven partner of 1-link system,an inter-bank ATM sharing
system which allows customers to transact on ATM of any partner bank.Bank AL-Habib is the
third largest ATM service provider in pakistn,having 188 ATMs while having the largest number
of ATMs in th city karachi.Bank AL-Habib Limited in affiliation with the Arad Financial Services
offer two types of master cards.

2.5 AL-HABIB CAPITAL MARKETS


Bank AL-Habib has also established a name in the financial stock industry.ALHabib Capital Markets; one of the leading brokerage houses working under the
logo of Bank AL-Habib.BAHL holds a major stake in the AL-Habib Capital market
(Pvt)Ltd, rest by friends snd family member.

2.6 EXECUTIVE LEADERSHIP

Ali Raza D.Habib,Chairman

Abbas D.Habib,CEO & Managing Director

Qumail R.Habib,Executive Director

Ex-chairman of the Bank AL-Habib include:

Hamid D.Habib,chairwomen (Till 2000)

Rashid D.Habib,CEO & Managing Director (Till 1994)

2.7 BRANCHES NETWORK


The bank's registered office is situated in Multan, and its principal office is located in
karachi.As on December 2010 the bank had a network of 225 branches which includes an
offshore banking unit in Bahrain, an Export processing Zone branch in Karachi and an Islamic
banking branch in Karachi.These branches are fully automated and computerized providing a
complete range of banking services.

2.8 PAKISTAN

Karachi has around 83 branches in all major parts.This include

one

international branch at Export Processing Zone and one Islamic banking branch
at Sharah -e-Faisal.

Lahore,has

around

31

branches

in

all

major

parts

including

Islamic Banking Branch.

Multan,has around 5 branches including an Islamic Banking Branch.

Faisalabad,has around 4 branches includind an Islamic Banking Branch.

Islamabad,has around 4 branches.

Hyderabad,has around 4 branches.

Peshawar,has around 4 branches.

and 86 other cities of Pakistan.

2.9 BAHRAIN

Manama has a branch which acts as an Offshore Banking Unit.

2.10 VISION

an

To be a quality financial service provider maintaining the highest standards


in banking practices.

2.11 OUR MISSION


To be a strong and stable financial institute offering innovative products and services
while contributing towards the national economic and social development.

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