Professional Documents
Culture Documents
Al Habib limited
I
Prepared by;
Mr. khawar Nadeem
Mr. Yasir Latif
Mr. Amir Hussain
II
Table of contents
Contents
Introduction & History....................................................................................... .....2
Management Function:........................................................................................13
External assessment:........................................................................................ ...20
Internal assessment........................................................................................... ..28
Conclusion................................................................................... ........................51
Suggestion.................................................................................................. .........52
Appendix............................................................................................................. .53
Bibliography....................................................................................................... ..54
Glossary....................................................................................................... ........55
Index.............................................................................................................. ......58
III
IV
Introduction
&
History of
BANK AL HABIB
REA L ESTATE;
Habib Properties FZC (UAE)
Green shield Developers (UAE)
Green shield Real Estate Brokers (UAE)
Gulf Properties International (BVI)
OTHER;
Habib Sugar Mills (Pakistan)
Habib & Sons (Pakistan, UK & USA)
Habib Motor Company (Pakistan)
Habib Foods (Pakistan)
Habib IT (Pakistan)
It is a scheduled bank principally engaged in the business of commercial banking with a network of
233 branches including a wholesale branch (in the Kingdom of Bahrain, a branch in Karachi Export
Processing Zone and four Islamic Banking branches. The Bank has invested in 66.67% shares of AL
Habib Capital Markets (Private) Limited.
The principal objective of the company is to engage in the business of equity, money market and
foreign exchange, brokerage, equity research and corporate financial advisory and consultancy
services. AL Habib Capital Markets (Private) Limited (the Company) was incorporated in Pakistan as
a (Private) Limited Company on 23 August 2005 under the Companies Ordinance, 1984 and started
operations from14 December 2005.AL Habib Financial Services Limited is a wholly owned
subsidiary of the Bank. The principal objective of the company is to engage in arranging / advising on
financial products and services. AL Habib Financial Services Limited was incorporated in Dubai on
05 March 2008.
Its commercial banking services also include acceptance and placement of funds in the interbank
market; purchase and sale of foreign currencies; trade information and research; remittances and
transfer of funds; purchase and sale of government securities; Sui gas bills collection; and MCB rupee
traveler cheque services.
MISSION
“To be a strong and stable financial institution
offering innovative products and services while
contributing towards the National economic and
social development”.
1.8- Management:
General Manager
Chief Manager
Senior Manager
MGR
Assistant Manager
Officer Grade I
Officer Grade II
Sub Officer
Banking,
Industry Capital Markets,
Investment Banking
Employees 4000
Website www.bankalhabib.com
Head office:
Main branch:
Branch Name: Main Branch
Departments:
Bank al_habib limited have the following departments;
➢ Customer services
➢ Human resources department
➢ Risk management
➢ Audit department
➢ Quality & services department
➢
2-Management function:
✔ Planning
✔ Organizing
✔ Leading
✔ Controlling
2.1- Planning:
Planning is;
Types of planning:
Bank Al Habib us e both formal and informal types of planning;
Informal;
In informal planning, their planning is not written down, short term focus and specific to
an organizational unit.
Formal;
In formal planning, their planning is written down, specific, long term focus and involves
shared goals for the organization.
Process of planning:
Mission:
To be a strong and stable financial institution offering innovative products and services while
contributing towards the National economic and social development”.
Strategies:
Strategies of bank Al Habib are giving loans and accepting deposits.
Types of strategies used by bank Al Habib; cost leadership strategy, differentiation strategy, focused
strategy and etc.
Plans:
Plans of bank Al Habib are short-term and long-term advances & deposits.
Programs:
Programs of bank Al Habib are up to one year or more then one year advances, fixed
accounts, and etc.
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Policies:
Policies of the bank Al Habib are profitability, by making profitable advances and customer’s
satisfaction by providing best services at an affordable cost.
Rules:
The rules are define the upper level management according to situation.
Budget:
Bank Al Habib always met its budget
2.2- Organizing:
Managers work in organization. But what is an organization?
An organization is an arrangement of the people to accomplish some specific purpose. Your colleges,
university, banks, governments departments are all organizations because they have three common
characteristics.
First; each organization has a distinct purpose. This purpose is typically expressed in terms of a goal
or set of goals that the organization hope to accomplish.
Second; each organization is composed of people. One person is working alone is not an organization
and it takes people to perform the work that’s necessary for the organization to achieve its goals.
Third; all organizations develop some deliberate structure so their members can do their work.
Purpose of organizing;
➢ Divide work to be done into specific jobs and departments in bank Al Habib.
➢ Assign tasks and responsibilities associated with individual jobs in bank Al Habib.
➢ Coordinates diverse organizational tasks in Bank Al Habib.
➢ Establish relationship among individuals, groups and departments in Bank Al Habib.
Types of organization;
2.3-Leadership:
The leaders of bank Al Habib have the following Traits & Skills in themselves.
➢ Decision making
➢ Risk taking and risk bearing
➢ Stress taking & stress bearing
➢ Communication power
➢ Motivation power
➢ Honesty
➢ Strong vision
➢ Interpersonal skills
➢ Market forecasting skill
➢ Consistency
➢ Step forward
➢ Discipline
➢ Competitive skills
Types of leader:
➢ Dictator
➢ Democratic
➢ Laissez-fair
Democratic leader:
The leaders, Bank Al Habib have, are the types of “Democratic. Because the major portion of
the bank is “decentralized”, that’s why the each leader has the complete power of decision making,
but they are working “collaboratively” in whole organization with each other. All leaders of bank are
involved in decision making, delegating their authorities to their higher qualified employees,
encouraged the participation of their employees in work and gives them opportunities of coaching in
well manners.
Motivation:
Motivation is the very important skill of the leader, without the motivation skill the leader does not
work effectively in the organization. Motivation of the employees to done the certain task and achieve
the organization goals is too much important in the organization for its operations.
Motivation is the duty of the leader toward his subordinate to do for the certain task to accomplish the
organization goals.
2.4- Control:
Control is the process of monitoring activities to ensure that they are being accomplished as
planned and of correcting any significant deviation.
Control is very much important because it is the final link in the management functions. It is
the only way mangers know whether organizational goals are being met and, it not, the reasons why.
The value of control function lies in its relation to planning, empowering employees, and protecting
work place.
In Bank Al Habib the importance of control can not be neglected because it’s a service base
organization and deals with finance. Every employee in this organization has direct of indirect
interaction with financial activities and finance play the key role in the progress of the bank. That’s
why there is significance importance of a good control over all the activities in the bank for
progressing on the right path.
Process of control:
A three-step process including measuring actual performance, comparing actual performance against a
standard and taking managerial action to correct deviation or inadequate standards.
To determine what actual performance is managers must acquire the information about the actual
performance of the workers who are working in the organization and overall performance of the
organization.
In Bank Al Habib managers get prepared statistical and financial reports about the employees and
progress of the bank to see that where organization is going. In statistical reports there is all
mentioned about the progress of employees that which employee have achieve how much targets at
the end of the month which were given by there bosses.
The comparing performance determines the degree of variation between actual performance
and the standard performance.
Standards;
General standard;
➢ Internal control system and all transaction and significant events must be clearly documented,
and the documentation readily available for examination.
➢ Transaction and other significant events are to be without delay recorded and properly
classified.
➢ Transactions and other significant events are to be authorized and executed only by
authorized persons.
➢ Key duties and responsibilities in authorized and executed only by authorized persons.
➢ Qualified and continued supervision is to be provided to ensure that internal control
objectives are achieved.
➢ Access to resources and records is to be limited to authorized individuals and accountability
for custody and use of resources is assigned and maintained.
➢ Managers are to; evaluate promptly findings and recommendations reported by reviewers.
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Determine proper actions in response to findings and recommendations, and complete, within
established time frames, all actions that correct or otherwise resolve the matters brought to
management’s attention.
Corrective action in the organization corrects problem at once to get performance back on
track.
Management of Bank Al Habib revise the results from the comparison of the actual performance with
the standards and then takes the corrective actions to solve that particular problem to ensure the
achievement of targets in the organizations.
✔ SWOT analysis
✔ PEST analysis
✔ Porter’s five forces
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves specifying the
objective of the business venture or project and identifying the internal and external factors that are
favorable and unfavorable to achieving that objective.
a)-Strength:
Attributes of the organization that are helpful to achieving the objective.
b)-Weaknesses:
Attributes of the organization those are harmful to achieving the objective.
c) – Opportunities:
External conditions those are helpful to achieving the objective.
➢ There is a lot of cushion available for Bank Al Habib in terms of expanding its network of
branches up to 230 but all this depends on stability of the Pakistan economic and political
situation
➢ The opportunities available for Bank Al Habib are financing to SME’s (Small and Medium
Enterprises) in Pakistan.
➢ Bank Al Habib has an opportunity to merge with some other bank to increase the number of
its branches in Pakistan.
➢ Attractive salary packages should be awarded.
➢ Marketing department should be started in order to promote the name of Bank Al HAbib.
➢ On the job training & coaching sessions can be conducted.
d)- Threats:
External conditions which could do damage to the business's performance
Threats that could affect Bank AL HAbib in negative way are as follows:
➢ Day by day competition is increasing not only of the expansion 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 existence of the Bank Al Habib.
➢ More and more banks are launching there operations in Pakistan which is increasing
competition for the Bank AL Habib.
➢ The conventional banks those having high growth rate and high market share are always
being a threat.
➢ Large business parties have fewer attractions in being a client of BAL-IBD, mainly because
of excessive amount of documentation.
Economic factors;
University of Veterinary and Animal Sciences (UVAS), Lahore 25
The Pakistan economy is more controlled economy, then one where market forces reign
supreme. Several key institutions are stated owned. Thus a discussion of the economic forces that
influence the private organization such as bank Al Habib cannot ignore the substantial role played by
the government in determining the state of the economy. The biggest indicator of the heavy role
enjoyed by the government was evidence when foreign currency accounts (FCA’s) were frozen on the
orders of the ministry of finance in the wake of explosion tests on may 31st 1998.
This and the recent efforts by the state bank to artificially lower the interest rates by revising the repo
rates downwards and encouraging lower bids for T-Bill, highlights the overwhelming role of the
government in the economy. Badlarates are a true indication of market rates at which financial
intuitions are willing to lend but the government, under the dictates of the IMF wants to artificially
lower the interest rates so as to provide investment liquidity within the economy.
General Musharaf period of government putt back the economy of the Pakistan due to the wrong
policies of the government for the economic growth in the Pakistan. Pakistan economy destroyed
badly in that 10 to 11 years of the government, and investors hesitated to invest in the Pakistan, and
also the load shading is another factor that effect the Pakistan economy badly.
This not the end of the story after this Pakistan’ economy face lot of problems like bomb attacks in
Pakistan no electricity and the unstable government, due to this the investor are not invest in the
Pakistan and the existing business men finish their business unit due to the loss.
Social forces:
A low saving culture has offset the huge population advantage this is enjoyed by Pakistan.
Also culture is dedicated by the religion, and in Pakistan a significant segment of the population is
loath to accept interest for their deposits due to the negative religious implications of such an act.
About 70% of Pakistan’s population is based on rural areas, thus making it harder for banks to
mobilize their deposits within these regions.
➢ Habib group also started a school system in Karachi for the cherty purpose.
➢ They give the funds to the poor person on the daily basis
Technological forces:
Banks in the developed world have been turning to heavy IT investments, which differentiate
their products, provide response times, enhance accessibility and improve customer satisfaction.
Though investing in state-of-the-art host banking solution (Fiserv, Kapiti, etc) , ATM and POS ( point
of sale) networks, visa, MasterCard, and Amex switches, smart cards, telebanking and now internet
banking are common IT investment in the developed world, it is now that these products and services
are gaining faster acceptance in Pakistan.
Bank Al Habib change their technology in IT sector due to the requirements of the current time,
before this they have the poor technology of the IT and un less skilled person in that field but at this
time they replace it with the heavy installation of the IT instruments. They hired new skill employed
and trained them for the efficient and effective work.
I. Rivalry
Among
Competing firms;
Bank Al Habib limited is facing a strong competition from other private Pakistani banks like
Metropolitan bank. Soneri bank and Askari Commercial bank. The improved performance of
the nationalized commercial banks (NCBs) is also the threat for the bank Al Habib. Foreign
banks are also competing with the bank for same small medium sized companies. The bank is
overcoming the incentive competition due to its strong reputation as a renowned financial
group in Pakistan and a long history of experience in the banking sector.
Product;
“Product” refers to goods and services you offer to your customers. Apart from the physical
product itself, there are elements associated with your product that customers may be attracted to.
Bank Al Habib have the various products which are given below in detail.
✔ Consumer banking
✔ Services
✔ Investment
✔ Islamic Banking
✔ Commercial banking
✔ Home remittances
Consumer banking;
i. Auto loan:
Decent homes are difficult to purchase in today’s ever changing world of real estate prices.
Safe and comfortable shelter is the prime necessity for each individual. So let bank Al Habib
with its home finance solution provide you with the means of buying, constructing your ideal
home.
Bank AL Habib will help you as our eligible customer to build the house of your dreams!
Eligibility Criteria
Pakistani National
- Salaried or Self Employed
- Minimum 23 to Maximum 60 Years Old
- Minimum Net Salary Rupees 20,000/=
v. Home improvement;
Services:
i. Online banking;
Bank AL Habib offers Online Banking Facility to its account holders at branches all over
Pakistan. Cash may be accepted at a branch for crediting accounts at another branch; Cheques
can be paid by a branch by debiting the customer’s account at another branch.
Now your Bank AL Habib ATM Card is not just an ATM Card It’s much more…
Bank AL Habib is a founder member bank of 1 Link, the largest shared ATM network
countrywide, giving you 24-hour access to your account from any ATMs. This network will
keep on expanding to give you unmatched and most convenient services.
iv. Telebanking;
AL Habib TeleBanking Service is a fully automated telephone banking service that brings
banking at your finger tips, giving you instant access to the information you need. Now you
can have access to your account… without going to the bank… 24 hours a day, 7 days a
week, 365 days a year – absolutely free!
vi. Remittances;
Bank AL Habib Limited offers Funds Transfers in Pak Rupees (Inland Local Remittances) or
in Foreign Currencies, (Foreign Remittances) on request of customer.
viii.Cash management;
To provide value added services and solutions is part of our mission statement. We understand
the complex requirements of corporate when it comes to effectively manage their
liquidity/cash flows. Our Cash Management suite of services/products is geared towards
addressing these business and operational complexities with the objective to streamline a
company's receivables and payables.
Investment:
1. Young savers account;
Young Pakistanis, Bank AL Habib has designed a new account specially for you, ...
your own Young Savers Account.
Features;
Bank AL Habib offers Two Value Added Savings Accounts which are PLS Savings
Account and Monthly Profit Plan
Features;
4. Growth certificates:
Bank AL Habib has now introduced “5 Years Growth Certificates” for its customers
which are for a longer tenor at very attractive rates. Receipts may be issued on PLS Term
Deposit Receipts clearly marked “5 Years Growth Certificates”.
Bank AL Habib has introduced Super Saving account to meet your needs.
• In case of a joint account the Senior Citizen will be the primary account holder and other joint
account holders must be between 18 and 60 years of age.
• Profit will be paid on the first working day of the next month
• Up to 90% financing allowed against deposit..
• The indicative return payable on "Senior Citizen's Account" deposit effective November 01,
2008 is 11% per annum.
• Free ATM Card.
• Profit may be drawn through Cheque or ATM from any branch of Bank AL Habib.
• Profit is subject to Zakat, Withholding Tax and other Government Levies unless exempted.
Islamic banking:
1. Deposit schemes;
Bank AL Habib Limited, Islamic Banking Branch, invites participation in the following
deposit schemes:
We also offer Islamic Finance for Individual / Traders / Industries, etc. These finances are offered in
the following forms:
• Murabaha Finance
• Ijarah Finance (Leasing)
• Diminishing Musharakah Finance
3. Declaration of profit;
Declaration of Profit on various Deposits for the Quarter ended March 31, 2009
Commercial banking:
Home Remittance:
Products Mar 31, 2009 Dec 31, 2008 Sep 30, 2008 Jun 30, 2008
✔ Treasurer’s call:
✔ Super Saving Account.
✔ Growth certificates:
✔ Her mah munafa imdani main izaffa:
✔ Home remittance:
MASHREQBANK PSC,
4 MSHQ US 33 70120054
NEW YORK
0835-0902223-53-
1 CREDIT SUISSE, ZURICH CRES CH ZZ 80A
000
Placement:
Any organization is work on the some goals and objectives, and these goals and objective are depend
or based on the some pillars without these pillars the goals are not achieved. IMC is the most
important pillar out of these pillars. IMC is the combination of different marketing or promotional
tools that creates synergy effect inn the market.
Marketer used the IMC for creating the need and wants in the consumers mind. They have selected
the different media for the promotion of their products. They used the commonly print & electronic
media for the promotion of their products.
Electronic media:
Bank AL Habib used the two types of the electronic media in the market to for the target
consumers.
➢ Radio;
The marketing management of the Bank Al Habib is used the FM radio for the
promotion of their product and hit the segment of their target consumers.
From the above in formation we are concluded that Bank Al Habib due very well in the market. They
used the good strategies for accomplish of the organization goals and objective. Bank Al Habib met
their budget in the year very effectively, increase the branches in Pakistan major cities, and increase
the ATM’s network. They used the strategy sales promotion for the promotion for the promotion of
their product in the market, introduced the new product in the market like younger’s savers account
and etc.
They used the frontal attack in the market for the promotion of their business in the market like other
banks in the Pakistan. They are politically strong because they have no account of that kind that is
effected by the politically instability in the country. They are to much aware in giving the credit
facility to the customer. Due to this the bad debts ratio of the bank is to much low 0.05%.
They are also due the work socially for the country for the promotion of the organization in the
Pakistan society. Bank Al Habib has the good position in liquidity because they have the C.A ratio
20% of total deposits.
Bank Al Habib is mostly emphasis on the financing and deposits that is the better for the effective
work of the organization. They are poor in the IT department but they are solving this problem in last
year by installing a new system of IT, and also train their employees hire the skilled employees for the
IT sector. By this performance of the IT sector of the Bank Al Habib is too much improved.
✔ They should improve the marketing department for the promotion and the better result for the
organization
✔ They should used the electronic media frequently for targeting the higher class of the
customers
✔ They should sponsor the events in Pakistan and also in the world for the promotion of the
business.
✔ Bank Al Habib should become quick to give loans and cards.
✔ Make Easy procedure for applying for a credit card
✔ Give more incentives like bonuses overtime pay etc.
✔ Make strong Self Marketing Department.
We visit the Bank Al Habib and take interview and received the information about the
marketing and management of bank Al Habib.
We get the information from Mr. Rehan Khan who is working as an officer Grade-I
✔ Google
✔ Scribd
✔ Wikipedia
✔ Investopedia.
✔ Print media
✔ TV adds
A
Accessible (a town accessible by rail", available)
Assurance (authority); Freedom from doubt; belief in yourself and your abilities
B
Bidding; An authoritative direction or instruction to do something
C
Corporate (corporate rates"; "corporate structure")
Conventional (conventional wisdom"; "she had strayed from the path of conventional behavior";
"conventional forms of address")
D
Deliberate; Carefully thought out in advance
Dictator; A ruler who is unconstrained by law
Democratic; Belong to or relating to the Democratic Party
Disability (The condition of being unable to perform as a consequence of physical or mental
unfitness)
G
Guardian (A person who cares for persons or property)
I
Inadequate (poor, short, unequal)
Launching (The act of moving a newly built vessel into the water for the first time)
L
Levies (charge imposed and collected)
O
Origin; The place where something begins, where it springs into being
Optimize; make optimal; get the most out of; use best
R
Regime (The organization that is the governing authority of a political unit)
Mission statement: 7
Board of directors: 8
COMPANY PROFILE: 10