HABIB METROPOLITAN BANK

(A Subsidiary of Habib bank AG Zurich)

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In The Name Of Allah the Most Merciful and Beneficent

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ASSIGNMENT ON

HABIB METROPOLITAN BANK

(A Subsidiary of Habib bank AG Zurich)

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Institution:

Submitted by:
Muhammad Adnan
Roll No 126
Class Bs (IT) 2013-17
Submitted to:
Dr, Nadeem Ahmad

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ACKNOWLEDGEMENT

All gratitude and thanks to almighty ALLAH the gracious, the most merciful and beneficent
who gave me courage to undertake and complete this task. I am very much obliged to my
ever caring and loving parents whose prayers have enabled to reach this stage.
I am grateful to almighty ALLAH who made me able to complete the work presented in this
report. It is due to HIS unending mercy that this work moved towards success.
I am highly indebted to my course instructor Dr. Nadeem Ahmad for providing me an
opportunity to learn about the Banking system of HABIBMETRO BANK which is vital
ingredient of MBA program. I am very great full to my teacher Dr.Nadeem Ahmad for
providing me guideline for the completion of this report.
I feel great pride and pleasure on the accomplishment of this report.

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Preface
Banking sector owes a pivotal importance in the economy of any country through its vibrant
functions. This is the deep seated motivator that geared up me to join any bank for
internship. Moreover, the practice and familiarity learned during this tenure would also attest
very helpful and alleviating in the awaiting proficient life.
This report is an upshot of my eight weeks internship in Habib Metro Politian Bank limited
Bahawalpur road Mandi Yazman Habib metro Bank possess an imperative importance in
the banking sector of Pakistan. It always remains the center of hustles in business activities.
It always endows with great covenant of rally round in terms of funds and services at all
epochs of its dynamism.
Although, a derisory period of six weeks is not enough to learn the complex operations of
Habib Metro Bank Limited yet I made industrious efforts to converse them comprehensively
in this report. Particularly, I have remunerated more accents on study of distinguishing
features and services of Habib Metro Bank Limited. I have made maximum venture to
elaborate this report with the material read, listened and observed.
I have strong belief that this report will guide and ease the readers to understand the
operations of banking system and more prominently have good knowledge about Habib
Metro Bank Limited, one of the most trusty and leading banks in Pakistan.
Dear readers, I hope that you will appreciate my report and sense that reading my report is
not like to waste the time in any respect.

Muhammad Adnan
Roll NO 126 Bs (IT) 2013-2017

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Contents:
DESCRIPTION

Page #

EXECUTIVE SUMMARY

Economic and banking review ..07

Habib Metropolitan Bank
History & Introduction...08
Vision..09
Mission...10
PACRA maintains ratings of Habib metropolitan...11
Bank ltd
Achievements...12
Corporate Information.....12
i.Board of Directors....................................................................12
ii.Chairman..................................................................................12
iii.Directors...................................................................................12
iv.Audit Committee.......................................................................12
v.Company sectary......................................................................12
Competitors.....................................................................................13
PRODUCTS.........................................................................................14
vi.HMB Premium Deposit Scheme...............................................14
vii.Basic Banking Account ...........................................................15
viii.HMB Access (ATM / Debit Card) .............................................16
ix.HMB Auto Finance ...................................................................16
x.HMB Auto Lease ......................................................................16
xi.HMB Call Account ....................................................................17
xii.HMB Current Account ..............................................................17
xiii.HMB Education Loans .............................................................18
xiv.HMB Izafa Certificate................................................................18
xv.HMB Multiplier Account ...........................................................18
xvi.HMB Mahana Scheme ............................................................19
xvii.HMB Personal Loans ............................................................19
xviii.HMB Saving Account ............................................................19
xix.PLS Saving Account with Free Life Insurance..........................20
xx.Super Current Account ............................................................ 20
xxi.HMB MAKRO Prepaid Card......................................................21
xxii.Jubilee life insurance22

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Services ..........................................................................................22
Cash Management Services ......................................................22
E-Salary Accounts .....................................................................22
HMB Call Centre .........................................................................23
HMB GSM Mobile Banking .........................................................23
HMB Rent Free Lockers .............................................................24
HMB Tele Info Service ...............................................................24
HMB Web Info Service ...............................................................24
POS (Point of Sale) Machine ......................................................25
Short / Long Term Finance ........................................................25
Financials..........................................................................................28
Branches & ATMS ............................................................................29
Electronic Banking ............................................................................30
Internet Banking............................................................................30
Phone Banking ...........................................................................30
International Banking .........................................................................31
Corporate Bank Network................................................................31
Foreign Remittances......................................................................33
Swift Banking ...............................................................................36
Islamic Banking...................................................................................37
HMB Islamic Banking.....................................................................37
Islamic Banking Products...............................................................38
Financing Products.........................................................................38
Islamic Banking Branches..............................................................38
Shariah Adviser..............................................................................39
Rates & Exchange .............................................................................39
Deposit Rates................................................................................39
Exchange Rates............................................................................40
Corporate Information Snap Short......................................................43
SWOT ANALYSIS...............................................................................45
PEST ANALYSIS.49
RISK MANAGEMENT..51
RECOMMENDATIONS53
CONCLUSION..54

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EXECUTIVE SUMMARY
The banking structure in Pakistan comprises of the following types, State Bank of Pakistan,
Commercial Bank of Pakistan; Exchange Banks, Saving banks, Cooperative banks,
specialized credit institutions. The state bank of Pakistan is the Central bank of the country
and was established on July 01, 1948. The network of bank branches now covers a very
large segment of national economy. The State Bank of Pakistan issues the shares of these
periodically. Bank employees and other common peoples can also purchase these shares
and earn profit.
To open an account the customer has to meet the general banking manager with an
introducer. The procedure begins with the punching of account opening form to the customer
file i.e. customers master file. Before closing any account, bank send letter to the account
hold for informing him that his account is going to be closed. There is need an approval form
higher authority to close any account. Current deposits are those which are payable to bank
whenever demanded by the customer. Bank does not pay any profit on current deposits. The
following are the financial products/services of PLS Account, Saving Account, Term deposit
and Foreign currency accounts.
In remittance department like any other Habib Metro Politian Bank Limited also have
instruments for transferring of money, Telegraphic Transfer, Mail Transfer. In cash
department both deposits and withdrawals go side by side. This department works under the
CD In charge and deals with cash deposits and payments. This department maintains the
following sheets, books, and ledger of account cash received voucher sheet.
Cash paid voucher sheet, Paying-in-slip, Cheque Book, Cash balance book. The clearing in
Karachi at Habib Metro Politian Bank Limited or other banks is being done through NIFT
(National Institute of Facilitation Technology).
Bank provides this facility to the people who need advance money to meet their requirement.
Party dealing with other banks financial condition of borrower business and as a first step
credit proposal is being made Habib Metro Politian Bank Limited provides advances, which
are two types. Secured Advances, Unsecured Advances. Habib Metro Politian Bank Limited
usually classified advances in to following types Commercial Advances, Corporate/SMEs
Advances, Agricultural Advances. Commercial Advances are of following types Demand
Finance, Cash Finance, Export Refinance Part I (Pre Shipment) & others. Banks Agriculture
division deals with the agriculture advances. Bank provides the Agriculture Advances in
order to enhance and support the agriculture sector of the country. Farm Credit & Non-Farm
Credit.
In foreign exchange, Habib Metro Politian Bank Limited is dealing Foreign Currency
Accounts, Foreign Remittances, and Foreign Bills for Collection, Imports & Exports
Foreign currency accounts & the foreign currency department deals with the following types
of accounts, Current account, saving bank account, Term deposit. Foreign accounts are
convertible on floating rate available to the bank. Letter Of Credit facility is being provided by
Habib Metro Politian Bank Limited in foreign exchange.

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Banking?
It has not so far been decided as to how the word Bank originated. Some authors opine that
this word is derived from the words Bancus or Banque which mean a bench. Other
authorities hold the opinion that the word Bank is derived from the German word Back,
which means joint stock fund. It is therefore, not possible to decide as to which of the
opinion is correct, for no record is available to ascertain the validity of any of the opinions
The term bank is being used for a long time yet it has no precise definition. The basic reason
is that the banks perform not just one but many types of functions originally the banks were
supposed to make short term loans to the traders only. The banks now not only make short
term loans to the formers, traders, industrialist etc. But also invest in a wide variety of long
term earning assets.
The commercial banks also undertake and execute trust, deal in stock, shares and
debentures, issue guaranties and indemnities underwrite and sell new securities, and deal in
foreign exchange etc.
Banking industry acts as life-blood of modern trade and commerce acting as a bridge to
provide a major source of financial intermediation.
However some of the definitions of bank from different authors are as follows.
Depository financial institution: a financial institution that accepts deposits and channels the
money into lending activities; "he cashed a check at the bank"; "that bank holds the
mortgage on my home"

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Type of Banks in Pakistan State

Central bank or state bank.

Commercial bank.
Exchange bank.
Industrial bank.
Agriculture bank.
Investment bank.
Saving bank.

CENTRAL BANK
Every country has its central bank or state bank. Its major function is to carry out a countrys
monetary policy with an aim to safeguard its financial and economic stability. It has the
monopoly of note issue. It is also the custodian of money market. State bank is the Banks
bank and lender to the government.
COMMERCIAL BANK
Commercial banks are profit earning concerns. They receive deposits and advance loans to
the borrows. They greatly help in financing for internal and external trade of the country.
EXCHANGE BANK
The main function of the exchange bank is to finance the foreign trade by the purchase and
sale of foreign currencies in the form of drafts, bills of exchange, telegraphic transfers. They
also perform the function of commercial bank. Receiving deposits and advancing loans.
INDUSTRIAL BANKS
Commercial bank cannot afford to block their funds in long term investments. The industrial
banks receive long term deposits and finance the industries by providing them long term
credits. In Pakistan the Industrial bank named as Industrial Development Bank of Pakistan
(I.D.B.P) was established in 1961 for this purpose.

AGRICULTURAL BANK
Agricultural bank provides short and long period loans for financing agriculture. The
agriculturists need short and long term loans for meeting their day to day and long term
requirements for making permanent improvement in the land. In Pakistan Agricultural Bank
is named as Agricultural Development bank of Pakistan (A.D.B.P) and it was established in
1961

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INVESTMENT BANK
The main function of investment bank the merchandising of shares and other securities,
managing and distributing the issue of shares and other securities.
SAVING BANKS
These are the institutions which are sponsored by the government for having facilities to the
people and small means. These bank collect small saving of people and allow them to
withdraw in small amounts. Also another institution i.e. National Savings is working in the
same capacity.

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History of Banking in Pakistan

Banking in fact is primitive as human society, for ever since man came to realize the
importance of money as a medium of exchange; the necessity of a controlling or regulating
agency or institution was naturally felt. Perhaps it was the Babylonians who developed
banking system as early as 2000 BC. IT is evident that the temples of Babylon were used as
Banks because of the prevalent respect and confidence in the clergy.
The partition plan was announced on June 3, 1947 and August 15, 1949 was fixed as the
date on which independence was to take effect. It was decided that the Reserve bank of
India should continue to function in the dominion of Pakistan until September 30, 1948 due
to administrative and technical difficulties involved in immediately establishing and operating
a Central Bank.
At the time of partition, total number of banks in Pakistan were 38 out of these the
commercial banks in Pakistan were 2, which were Habib Bank Limited and Australia Bank of
India. The total deposits in Pakistani banks stood at Rs.880 million whereas the advances
were Rs.198 million. The Governor General of Pakistan, Muhammad Ali Jinnah issued the
order for the establishment of State Bank of Pakistan on 1st of July 1948.
In 1949, National Bank of Pakistan was established. It started with six offices in former East
Pakistan. There were 14 Pakistani scheduled commercial banks operating in the country on
December 1973, the name of these were
National Bank of Pakistan
Habib Bank Limited
Habib Bank (Overseas) Limited
United Bank Limited
Muslim Commercial Bank Limited
Commerce Bank Limited
Australia Bank Limited
Standard Bank Limited
Bank of Bahawalpur Limited
Premier Bank Limited

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Pak Bank Limited

Lahore Commercial Bank Limited
Sarhad Bank Limited
Punjab Provincial Co-operative Bank Limited
The Pakistan Banking Council prepared banks amalgamation schemes in 1974 for
amalgamation of smaller banks with the five bigger banks of the country. These five banks
are as under:
National Bank of Pakistan
Habib Bank Limited
United Bank Limited
Muslim Commercial Bank Limited
Allied Bank Limited
So, through the Nationalization of Bank Act 1974, the State Bank of Pakistan, all the
commercial banks incorporated in Pakistan and carrying on business in or outside the
country were brought under the government ownership with effect from Jan. 1, 1974. The
ownership, management, and control of all banks in Pakistan stood transferred to and
vested in the Federal Government. The Finance Minister announced plans to start Islamic
Banking system in Pakistan in the budget speech on June 26, 1980, but it could not be
possible till August, 2003.

STATE BANK OF PAKISTAN

The State Bank of Pakistan is the central bank of the country. Usually the starting point for a
central bank is a banking system that is already in place - the banking system necessitates
the presence of a central bank. But the State Bank of Pakistan (SBP) is unique in the sense
that it started its function in a newly born country, where it also had to shoulder
responsibilities of developing and rehabilitating a banking system and the economy, in
addition to the traditional central banking functions. Performance of the Bank since its
inception in 1948, as reviewed in subsequent pages, shows that it has faced all the
challenges with a great zeal and commitment. The founders of the Bank set a multidimensional target before it that included not only regulation of the monetary and credit
system but also the growth of this system. The vision of its founders was a stable monetary
system in Pakistan with fuller utilization of the countrys productive resources (SBP Act,
1956).

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In order to achieve the goals set before it, the State Bank of Pakistan performed all the
traditional and non-traditional functions. The traditional functions, which are generally
performed by central banks all over the world, are classified into two groups;
the primary functions including issue of notes, regulation of the
financial system, lender of the last resort, and conduct of monetary
policy,
the secondary functions including management of public debt,
management of foreign exchange, advising the Government on policy
matters, anchoring payments system, and maintaining close
relationships with international financial institutions.
In the subsequent page, all these functions are shown in a flow chart

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Vision and Mission of STATE Bank of Pakistan

Our Vision
To transform SBP into a modern
and dynamic central bank, highly
professional and efficient, fully
equipped to play a meaningful role,
on sustainable basis, in the economic
and social development of Pakistan

Our Mission
To promote monetary and
financial stability and foster a
sound and dynamic financial
system, so as to achieve sustained
and equitable economic growth
and prosperity in Pakistan.

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Governors of the SBP

NIFT-National Institutional Facilitation

Technologies
NIFT-National Institutional Facilitation Technologies (Pvt.). Ltd. was incorporated in
September 1995 as joint venture between a consortium of six banks and entrepreneurs from
the private sector. All commercial banks and all of branches in major cities avail NIFTs
services. As of June 2005, 43 commercial banks and their 3000 branches in 9 major cities
utilize NIFTs services.
NIFT has setup elaborate data centers geared to provide automated services for document
processing particularly in the payment arena. Modern image based facilities have been
established at Karachi, Lahore, Islamabad, Peshawar, Rawalpindi, Hyderabad, Multan,
Faisalabad and Quetta. The services include cheques clearing, collection & delivery,
reconciliation, return (unpaid) cheques processing, same day clearing (express 2 hrs.
clearing service), intercity clearing and inter branch & inter bank settlement. Services are
provided at individual branch level to over 3000 branches in nine major cities and 30 smaller
cities.

NIFT also provides exclusive item processing services to financial institutions and turnkey
clearing preparation support to selected banks.
NIFT, e-TRUST a division of NIFT is a Certification Authority of Pakistan. This division has
establishes facilities to provide PKI (public key infrastructure) based security solutions for ebusiness, e-commerce, e-banking and e-government as an affiliate of VERISIGN Inc. USA
and WORLDeTRUST, Geneva.
ISM - NIFT has incorporated a wholly owned subsidiary Image Systems Marketing (Pvt.)
Ltd. (ISM) to offer image archiving and data warehousing services to large corporations. For
this purpose reseller agreements have been signed with corporations in USA and Europe to
offer services in Pakistan, Bangladesh, Gulf and Middle East.

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Mission
We will draw from the respect we have earned as Trusted Third Party Processor and will
become a distinctive organization known for innovative use of technology to continually
improve products and services for the benefit of our customers and their customers and
keep them abreast with times to compete in the global society.
Vision
We focus on our customers as an active component in growth process. We continue to offer
services that expand their access to excellent and affordable technologies. Our qualified and
experienced workforce must work closely with our customers to continually enhance their
confidence and trust in us.

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ISLAMIC BANKING IN PAKISTAN

Islamic banking has been defined as banking in consonance with the ethos and value
system of Islam and governed, in addition to the conventional good governance and risk
management rules, by the principles laid down by Islamic Shariah. Interest free banking is a
narrow concept denoting a number of banking instruments or operations, which avoid
interest. Islamic banking, the more general term is expected not only to avoid interest-based
transactions, prohibited in the Islamic Shariah, but also to avoid unethical practices and
participate actively in achieving the goals and objectives of an Islamic economy.
Steps for Islamization of banking and financial system of Pakistan were started in 1977-78.
Pakistan was among the three countries in the world that had been trying to implement
interest free banking at comprehensive/national level. But as it was a mammoth task, the
switchover plan was implemented in phases. The Islamization measures included the
elimination of interest from the operations of specialized financial institutions including
HBFC, ICP and NIT in July 1979 and that of the commercial banks during January 1981 to
June 1985. The legal framework of Pakistan's financial and corporate system was amended
on June 26, 1980 to permit issuance of a new interest-free instrument of corporate financing
Named Participation Term Certificate (PTC). An Ordinance was promulgated to allow the
establishment of Mudaraba companies and floatation of Mudaraba certificates for raising risk
based capital. Amendments were also made in the Banking Companies Ordinance, 1962
(The BCO, 1962) and related laws to include provision of bank finance through PLS, markup in prices, leasing and hire purchase.
Modes of Islamic Banking in Pakistan
Murabaha
Ijarah
Ijarah-wal-iqtina
Musawamah
ISTISNA A
MUDARABAH
MUSHARAKAH

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Economic and banking review

During the year 2009, our country s trade balance reflects healthy improvement mainly on
account of reduced cost of imports. With the International Monetary Funds Stand-By
Arrangement (SBA) and a commitment expressed by the global community to extend
monetary aid to Pakistan, the country s foreign exchange reserves have increased
significantly, although the rupee continues to depreciate against the dollar. Weakening
domestic demand, reduced commodity prices and lower government borrowing from the
SBP has also led to a reduction in core inflation. The country s stock exchanges have
managed to regain the investors confidence after dismal look in 2008 and the market index
reflects a positive sentiment. Further, remittance inflows from overseas Pakistanis have
remained strong which provided positive support to the economy. These factors, as well as
several ongoing policy and structural reforms resulted in improvement in Pakistans
international ratings by Moody s from Negative to Stable outlook. Although the potential
economic crisis has been averted and the economy has stabilized, the country s
manufacturing and export activities continue to remain under pressure. Power shortage
remains a fundamental detriment to economic growth for which various short and long-term
measures are being taken by the government. This is a matter of utmost priority as the rising
costs of input needs to be kept under control to compete in the international markets. The
economy is also facing severe pressure due to the ongoing war on terror and the
rehabilitation of Internally Displaced Persons (IDPs).

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Habib Metropolitan Bank

History & Introduction
Habib Metropolitan Bank was incorporated in Pakistan as a Public Listed Company in 1992
under the name, Metropolitan Bank Limited. The Bank commenced, duly licensed, full
scheduled commercial-banking operations in October 1992.
Metropolitan Bank, from October 1992 to September 2006, remained a highly rated bank
and, vide its nationwide 51-branch on-line network, established as a distinguished provider
of trade finance services.
On October 26, 2006 Habib Bank A G Zurichs Pakistan Operations merged into
Metropolitan Bank Limited and the merged entity was named Habib Metropolitan Bank
Limited (HMB). Demonstrating a strong commitment to Pakistan economy, HBZ is the
principal shareholder of HMB.
HMB operates in all major cities of the country. The Bank ranks within Top 10 in Pakistan
with a strong vision to be the most respected Financial Institution. HMB has its primary focus
on retail banking and trade finance and also offers highly innovative E-Banking solutions and
Consumer Banking to its customers. The Banks Islamic Banking Division is fully capable of
catering to customers seeking Shariah compliant products.
The HBZ Group is heir to a rich tradition of banking and commerce dating back to more than
160 years. The groups flagship and HMBs principal, HBZ (incorporated 1967) enjoys
International ranking of 687 in terms of capital. With Headquarters in Switzerland, the HBZ
Group also operates in Hong Kong, Singapore, United Arab Emirates, Kenya, South Africa,
United Kingdom and North America.
The Pakistan Credit Rating Agency (PACRA) has allotted both long-term and short-term
ratings of Habib Metropolitan Bank Limited at AA+ (Double A plus) and A1+ (A one plus),
respectively. These ratings, being the highest amongst the local sector Private Banks,
denote a very low expectation of credit risk emanating from a very strong capacity for timely
payment of financial commitments.

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Vision Statement
Based on a foundation of trust, to be the most respected financial institution,
delighting customers with excellence, enjoying the loyalty of a dedicated team,
meeting the expectations of regulators and participating in social causes while
providing superior returns to shareholders.

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Mission Statement

"The Mission of the Habib metropolitan Bank is to foster a sound economic

and financial environment which promotes the development of its stakeholders
and encourages a culture of excellence and leadership."

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PACRA MAINTAINS RATINGS OF HABIB METROPOLITAN

BANK LTD. (HMB)
The Pakistan Credit Rating Agency (PACRA) has maintained the long-term
and short-term entity ratings of Habib Metropolitan Bank Ltd. at AA+ (Double
A plus) and A1+ (A one plus) respectively. These ratings denote a very low
expectation of credit risk emanating from a very strong capacity for timely
payment of financial commitments. The ratings reflect the strong position of
the bank in its respective niche self-liquidating trade finance to corporate
and SMEs. While consolidating its strength, the management continues to
focus on product innovation, enhanced reach through network expansion,
and technology up-gradation for ensuring quality services to its customers,
thereby retaining its relative positioning in the face of intensifying
competition within the sector. The bank continues to maintain outstanding
asset quality an outcome of conservative risk appetite as well as effective
risk management. The ratings also take into account the banks association
with a geographically diversified international sponsoring group Habib Bank
AG Zurich (HBZ).
About the bank: HMB, commencing operations in 1992, is listed on all bourses
of Pakistan. Subsequent to recent merger, the bank is a 51% owned
subsidiary of HBZ, incorporated in Switzerland. HBZ, with consolidated assets
of above US$6bln, has operations in eight countries directly and through
subsidiaries. This provides inherent strength to the bank given high credibility
and standing of HBZ. The Chief Executive of the bank is a former Governor of
the State Bank and also a former president of Habib Bank Limited, one of the
largest banks in the country. A highly professional team of senior executives
including the executive director, who has emerged as the key professional
in evolving the banks strategy as well as its implementation, assists the
chief executive. The primary function of PACRA is to evaluate the capacity
and willingness of an entity to honour its obligations. Our ratings reflect an
independent, professional and impartial assessment of the risks associated
with a particular instrument or an entity.PACRAs comprehensive offerings
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include instrument and entity credit ratings, insurer financial strength ratings,
fund ratings, asset manager ratings and real estate grading.
PACRAs opinion is not a recommendation to purchase, sell or hold a
security, in as much as it does not comment on the securitys market price or
suitability for a particular investor.

Achievements
These above credit ratings denote
HMB is one of the top ten banks in Pakistan
A very high credit quality,
A very low expectation of credit risk and
A very strong capacity for timely payment of financial commitments.

Corporate Information:
Board of Directors
Chairman & President
Kassim Parekh
Chief Executive
Anjum Iqbal
Directors
Muhammad H.Habib
Raza S. Habib
Bashir Ali Muhammad
Anwar H. J apanwala
Ronaid V. Emerson
Firasat Ali
Mohamedali R. Habib (Executive Director)
Audit Committee
Reza S. Habib
Kassim Parekh
Mohamedali R. Habib
Company Secretary
Muhammad Imran

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COMPETITORS

PRODUCTS
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1. HMB Premium Deposit Scheme:

HMB now offers yet another highly attractive investment opportunity for our
valued account holders. HMB Premium Deposit Scheme offers profit rates up
to 12.35% per annum. You may deposit your funds for 1, 3 & 5 years, with
quarterly and half yearly profit payment options to suit your need.
Who can avail this Opportunity?
There are no restrictions as to the eligibility of depositors and the scheme is
open for any investors / account holder.
Indicative Profit Rates:
On a deposit of Rs. 100,000/- the profit will be paid as under.
Tenor
Rate p.a
1 Year
3 Year
5 Year

Quarterly Profit
Half Yearly profit
Amount (Rs)
Rate p.a Amount (Rs)
12.00%
3,000 12.20%
6,100
12.20%
3,050 12.30%
6,150
12.30%
3,075 12.35%
6,175

Amount of Deposit:
Minimum investment amount is Rs. 25,000/- (Rupees Twenty Five Thousand
Only). The funds can be placed in multiples of Rs. 5,000/- as per customers
needs.
Profit Payment:
Profit will be paid on Quarterly or Half yearly basis as per customer decision at
the time of booking the deposit. Profit will be credited directly to your PLS
Savings / Current account and can be withdrawn by HMB Access ATM/Debit
Card or Cheque book.
Maturity:
Upon maturity, principal plus profit payable will be credited to your link account
unless rollover instructions are given at least 3 (Three) working days before
maturity.
Zakat, Withholding Tax & Other Levies:

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All payments will be subject to Zakat (as per rules), withholding tax and other
government levies as applicable from time to time.
Easy Loan Facility:
The loaning facility offered is essentially of temporary nature and the account
holder(s) can obtain the loan up to 80% of the amount placed in the scheme.
Premature Encashment:
A premature encashment fee will be levied for premature withdrawal of funds
from the scheme. The rate of the fee will be 2% of the deposit amount or the
amount of profit already paid until the date of premature withdrawal, whichever
is lower. The net amount after deduction will be credited in the customers
account.

Basic Banking Account

Account Opening with Rs. 1,000/No minimum balance required.

Non-remunerative account.
First cheque book of 25 leaves issued free of charge. Additional cheque
book(s) at Rs. 100/- per book.
No limit on number of ATM / Deposit transactions.

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 Two cheque transactions will be allowed free per calendar month.

Charge of Rs. 25/- per cheque will be applied from the third cheque
onwards.
Free Services
ATM / Debit Card
Web Info & Tele info
Yearly statement of account
Online Funds Transfer

HMB Access (ATM / Debit Card)

HMB Debit Cards are FREE, and available to our valued clients at all
HMB branches.
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 Make transactions up to the credit balance available in your account

Withdraw cash through convenient POS terminals at all HMB branches
Debit card Merchant list
Karachi
Lahore
Islamabad
Guidelines
Card Holders Guideline
Download Forms
Download E-Banking Form
MNET ATM Claim Form

Habib Auto Financing

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HMB Auto Finance is available up to Rs. 3 Million.

Minimum Down Payment is 15% of the total amount.
Processing Fee is Rs. 4,000/-.
Vehicle to be registered in the name of customer and marked HPA with
the Bank.

Habib Auto Leasing

HMB Auto Leasing is offered to all our Commercial & Corporate Clients.

Minimum down Payment is as low as 10% of the total amount.

Auto lease limit depends on the strength of the Companys financials
and credit checks.

A Processing fee is charged at 0.5% of the Lease amount.

The Vehicle is to be registered in the name of the Bank

The Insurance cost to be borne by the customer.

HMB Call Account

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Placements can be made in multiples of Rs 100,000.

Account can be linked to any of the regular accounts.
A profit earning account.
Funds can be placed overnight
Funds can be transferred to and from the account overnight for
placements.
Free Services
Cheque Book(s)
Statement of Account
HMB ATM / Debit Card
Stop payment of Cheques
Pay Order
Web info & Tele info Services

HMB Current Account

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32

The minimum amount required to open the account is Rs 5,000/Minimum balance to maintain in the account is Rs 1,000/This is a checking account with no limit on the number of transactions
No profit is paid in this account
There are no deduction of Zakat or any levies on this account.
Free Services
Cheque Book(s)
Statement of Account
HMB ATM / Debit Card
Web info & Tele info Services
Pay Order

8: HMB Education Loans

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33

Financing for Education Loans are available for

Graduation
Post-Graduation
PHD
Diploma courses
Financing for Tuition fee, Books and materials.
A Markup is charged at concessional rate.
There is No processing fee.
Convenient repayment options are offered.
The Tenor is from 6 to 60 months.

9: HMB Izafa Certificates

Izafa Certificates are issued in multiple(s) of Rs. 10,000/-, Rs. 25,000/-,
Rs.100,000/-, Rs. 250,000/-, Rs. 1,000,000/- and Rs. 2,500,000/-.
HMB Izafa certificates are offered as 7 years Deposits Certificate.
Offering attractive Profit rates up to 14.29 % p.a
Investment doubles in Seven years.
Easy Loan Facility.
Cashable any time.
No Penalties.
Your profits grow daily.
Can be linked to any of the regular accounts.

10: HMB Multiplier Account

The minimum amount required to open and maintain the account is Rs.
1 Million.
Profit is accrued on a DAILY product basis and credited to your account
monthly.
Accrual of Profit is on balance of Rs. 1 Million and above.
Profit Rates
In case balance of Rs. 1 Million not maintained for any day profit will be
paid @ 5.00% p.a. for the month.
Free Services:
Cheque Book(s)
Statement of Account
HMB ATM / Debit Card
Stop payment of Cheques
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34

 Pay Order
Web info & Tele info Services

11: HMB Mahana Scheme

1,3 & 5 year Deposit Schemes in multiples of Rs. 25,000/- & Rs.
100,000/ Easy loan facility.
En cashable any time.
Monthly Profit credited to your account automatically.

12: HMB Personal Loans

Clean loans are offered up to Rs. 500,000/- .
A Processing Fee of 1% of the loan amount or Rs. 2,000/- is charged,
whichever is higher.

13: HMB Saving Plus Account

Eligibility : Individuals Only

Initial Deposit : Rs. 25,000/Indicative profit rates
Profit payment basis : Minimum balance during a month
Profit payment frequency : Quarterly Basis

+ Free Services

Cheque Book
Payment Orders
Statements of Account
ATM / Debit Card
Web Info & Tele info
Online Funds Transfer

14: PLS Saving Account (Free Life Insurance)

The minimum amount to open and maintain this account is Rs. 1,000/-.
The minimum amount to maintain this account is Rs. 500/-.
Free life Insurance cover.

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35

 Free insurance is equal to the average six monthly balances in case of

death.
The minimum qualifying average balance for Life Insurance is Rs.
15,000/-.
The maximum sum assured is Rs. 1,000,000/ Free Services
Cheque Book(s)
Statement of Account
HMB ATM / Debit Card
Web info & Tele info Services
Pay Order

15: HMB Super Current Account

The minimum amount required for opening and maintaining this
account is PRs. 100,000/ This is a current account, which can be operated from any HMB branch
nationwide.
Cheques are acceptable at all HMB branches across Pakistan.
A non-remunerative account.
No deduction of Zakat or any levies on this account.
Free Services
Cheque Book
Payment Orders
Statements of Account
ATM / Debit Card
Web Info & Tele info
Online Funds Transfer
Rent Free Lockers

16: HMB MACRO Prepaid Cards

HMB and Macro Co-branded Prepaid Cards: Convenient, Secure and
Effective. HMB and Macro-Habib Pakistan have together launched a prepaid
card program. As you are already aware, Macro is one of the leading
international chains of wholesale stores in the world; in Pakistan, they have
entered into a joint venture with the House of Habib to establish and run
macro stores. This card program carries two exciting products namely the Gift

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36

Card and the Shopping Card which can both be used exclusively to make
purchases at all macro stores in Pakistan.
The prepaid cards are issued free of cost and can be purchased from all
Macro stores or any HMB Branch in Karachi and Lahore through cash or by
debit to your HMB account by issuing a requisition letter signed by the
designated account signatories.
In Pakistan, Macro Stores are located at:
Manghopir Road, Karachi
Lines Area, Karachi
Stargate, Karachi
Ravi Road, Lahore
Model Town, Lahore.
Salient features
Prepaid Gift card:
The Gift card has a fixed value of PRs 1,000 and is a disposable card.
Available at all Macro stores;
For purchases over PRs 10,000, please visit nearest HMB branch in
Karachi & Lahore. Provides well-structured, hassle-free solutions to
your home or business for extending benefits to your employees.
These benefits may be part of their monthly wages, payrolls or periodic
bonuses.
Gift card is most ideal to channel your social contributions to the
underprivileged by eliminating the risk of any misuse.
Prepaid Shopping card:
The Shopping Card carries value of Rs 10,000 which can go up to Rs
250,000 in multiples of Rs 5,000.
This is a multiple-use, reload able card.
Carries great benefit for your family or business to make daily/periodic
purchases with no risk of cash losses or misuse.
Check your shopping card balance & latest transactions by calling toll
free at our
Banks 24/7
Call Centre 0800-Habib (42242).
If the card is lost, the same may be blocked and re-issued through our
Call Centre.

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37

SERVICES
Jubilee Life Insurance

About jubilee life Profile:

Incorporated in Pakistan on 29th June 1995 as a public limited
company (according to companys ordinance 1984).
Jubilee Life (formerly: New Jubilee Life Insurance) started its
operations on 20th June 1996.
Jubilee Life is engaged in both individual life & corporate insurance
business.
On 17th October 2011, Jubilee Life Insurance was rebranded

JLI has been able to make over 200,000 individual customers and
over 1,000 corporate customers covering nearly 2,000,000 lives in
total

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39

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40

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41

Cash Management Services

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42

 This Service is best suited for Corporate clients with Rs.500 Million
and above in local Sales and collections.
Service involves Bulk collection of cash and cheques from all over
Pakistan where HMB branches are available.
Funds are collected and credited to customers accounts
(cash/transfer) the same day through Online Banking supported by
the state of the art hPLUS technology.
Customers benefit with outright savings of time & money.
Product is very competitively priced.
Up to date tracking of funds with online reports available through
web info and teleinfo services.

E-Salary

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43

 Through this service Salary disbursement to the employees of our

valued corporate customers is done electronically.
The Opening and maintenance of all salary accounts are managed
form a central location.
There are no charges on minimum balance in salary accounts.
The individual Salary accounts are also eligible to apply for HMB
Personal & Auto Loans.
All banking services that include Electronic fund transfer (EFT),
Demand Draft (DD), Telegraphic Transfer (TT) are available to eSalary account holders.
The Minimum monthly salary disbursement per corporate customer
is Rs. 1 Million.
Charges per salary Rs. 50/- or minimum of Rs. 5,000/-.
Free ATM / Debit Cards will be issued to all e-salary customers at
the time of opening accounts.
Free Web/Tele info services to facilitate balance inquiry and other
services 24/7

24 Hours Call Centre

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44

 0800 HABIB (42242)

24 hours card blocking of HMB access (ATM /Debit Card) in case of
loss or theft.
Location of branch addresses, telephone numbers, fax and ATM
points.
Various departments in the Head Office with contact details
Tele info and Web info Services, Deposit Products and Rates offered
on various tenors and types of accounts.
Products and Services e.g. General Banking, Consumer Finance,
Schedule of Charges etc.

HMB GSM Mobile Banking

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45

We are pleased to introduce HMB mobile banking facility, which would be

available on request to all our existing and new account holders.
Account holders who subscribe to this facility would receive SMS
messages on their designated mobile phones for all types of transactions
that they had requested.
Following inquiries can be requested by the customers for their accounts.

Balance Inquiries
1. Daily Balance
2. All Debit Balances
3. Debit Balance Over <X> Amount
4. Debit Balance Below <X> Amount
5. Credit Balance Only
6. Credit Balance Over <X> Amount
7. Credit Balance Below <X> Amount
Transaction Inquiries
1. All Transactions
2. All Debit Transactions
3. Debit Transactions Over <X> Amount
4. Debit Transactions Below <X> Amount
5. All Credit Transactions
6. Credit Transactions Over <X> Amount
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46

7. Credit Transactions Below <X> Amount

Other Inquiries

1. Inward Remittances
2. Other Banks Cheque Cleared
3. Other Banks Cheque Returned
4. Your Cheque Cleared
5. Youre Cheque Returned
6. PAD Logged
(<X> Amount refers to any amount specified by the account holder)

HMB Rent Free Lockers

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47

Secure
Rent Free Lockers
Refundable security deposit
Available in,
Size
Security Deposit
Small

Rs. 20,000

Medium

Rs. 35,000

Large

Rs. 60,000

Extra Large

Rs. 100,000

HMB Tele Info Service

Dial 0800 HABIB / 0800 42242
Instant access to the information you need at any time, from anywhere.
Tele info is a 24 hour telephone banking service to give you information
you need easily, instantly.
Following services can be accessed 24/7
Account Balance
Cheques in Clearing.
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48

 Indicative Foreign Exchange Rates.

Faxed back account statements.

HMB Web Info Service

Online Banking.
Access your account from your home or office or anywhere in the world.
Login through web info username and password.
Login through your HMB ACCESS (ATM/Debit Card).

Following services can be accessed 24/7

Up-to-date Account Balance.
Cheques in Clearing.
Account statement.
Indicative Foreign Exchange Rates.

POS (Point of Sale) Machine

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49

 Now you can withdraw cash from all HMB branches cash counters
easily and without any delay.
Each HMB branch is now equipped with a POS machine available on
their Cash Counters.
No need to issue cash cheques and no need to wait.
Cash can be withdrawn up to Rs. 250,000/- via HMB ACCESS
(ATM / Debit card).

Short Term and Long Term Finance

The bank also offers short term working capital financing including under
sharia compliant modes, exports/import financing and long-term finances to
Corporate/Commercial customers as well as SMEs trade & industry. It also
extends Agricultural credit; specialized financing tailored to customers needs
and is also a regular member of Syndicated financing club

SPECIAL SERVICES
House of Habib Flood Efforts
HOH has donated Rs. 10 million to the Prime Ministers Relief Fund for the
flood affecters. In addition, 2000 Swedish water purifiers (Life Straw) costing
Rs. 2,500/- each were distributed for ensuring potable water to the affecters
apart from 2500 sachets of water purifiers. The cost of both these items
aggregated to Rs. 5.1 million.
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In Muzaffargarh alone, approximately 900 families were registered for aid.

Issuance of ration cards and distribution commenced from the mills of HOH.
For tankers of drinking water is supplied daily to the relief camps set up by
different agencies and NGOs. A medical camp was set up at Basti Nawan in
collaboration between HOH, Team Rubican and PMA; about 1200 people
were treated

SPECIAL SERVICES (Contd)

In these camps. The two medical teams consisted of four doctors from Team
Rubicon (an NGO of USA) and three female, three female doctors along with
3 paramedics from Pakistan Medical Association. The documentary by CNN
on flood and relief work was aired on 8th and 9th September, 2010 from 4- 7
p.m. (PST) showing the medical camps that were set up in collaboration with
HOH.
House of Habib Flood Efforts
In Sindh the relief operations have been undertaken in Hyderabad, thatta/ keti
Bandar and karampur, a town near sukkur. Food ratios for 350 families and
medication for 750 people were sent to karampur. In Hyderabad (Habib Farm
vicinity) a clinic was established on 1st September 2010, and medical
treatment is being continuously provided to the flood affecters through it. Food
family packs have been distributed to 450 affected families which would
sustain them for two weeks. Registration of affected families has been done
for rehabilitations stage/ efforts.
In Punjab 10, 000liters of drinking water is being supplied daily to relief camps
set up different agencies and NGOs. 343 family food packs were distributed
just before Eid-ul-Fitr. Post Eid phase of relief efforts started from 15th
September 2010, with a medical cam being set up with the help of an NGO
(HOPE) in Muzaffargarh. Water purifiers were also distributed to the affected
people of the area.
For the flood affected, the House of Habib has so far served 19, 427 hot
meals, distributed family food packs to 32, 268 people, provided 670, 000
litters of drinking water apart from medical assistance to 21,879 people. So far
it has collected Rs. 103 million for this noble cause out of which has already
been utilized. This outstanding performance can only be lauded.

Financials:
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51

Year over year, Habib Metropolitan Bank Limited has seen their bottom line
shrink from 3.3B to 2.7B despite an increase in revenues from 3.0B to 3.2B.
An increase in the percentage of sales devoted to SGA costs from 98.56% to
106.93% was a key component in the falling bottom line in the face of rising
revenues.

Currency in
Millions of Pakistan Rupees

TOTAL REVENUES

As of: Dec 31
2006

Dec 31
2007

Dec 31
2008

Dec 31
2009

Restated
PKR

Restated
PKR

Restated
PKR

PKR

4,495.5

6,458.9

8,016.6

7,883.7

Cost of Goods Sold

109.7

69.3

113.4

116.9

GROSS PROFIT

4,385.8

6,389.6

7,903.2

7,766.8

Selling General & Admin Expenses, Total

1,240.2

2,184.8

2,989.1

3,431.0

EBT, EXCLUDING UNUSUAL ITEMS

3,144.4

4,204.4

4,767.0

4,229.4

--

--

--

-2.7

3,144.4

4,204.4

4,767.0

4,226.7

Income Tax Expense

1,047.2

1,407.0

1,471.9

1,480.2

Earnings from Continuing Operations

2,097.2

2,797.4

3,295.1

2,746.6

2,097.2

2,797.4

3,295.1

2,746.6

NET INCOME TO COMMON INCLUDING EXTRA ITEMS

2,097.2

2,797.4

3,295.1

2,746.6

NET INCOME TO COMMON EXCLUDING EXTRA ITEMS

2,097.2

2,797.4

3,295.1

2,746.6

Merger & Restructuring Charges

EBT, INCLUDING UNUSUAL ITEMS

NET INCOME

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52

Another table of financials

For the Year

Dec '09

Dec '08

Dec '07

Dec '05

Dec '06

Dec '04

(Rupees in million)
18,889

16,150

13,359

10,665

5,093

3,588

7,528

6,022

5,018

3,005

1,560

1,200

Total Assets

237,412

182,711

172,867

148,668

79,564

67,891

Deposits

142,457

128,433

121,141

102,493

56,713

48,596

Advances

102,293

108,261

89,827

83,324

43,519

40,122

Investments

111,680

53,632

61,736

39,556

22,804

15,560

Profit before Tax

4,214

4,764

4,045

3,143

2,098

1,411

Profit after Tax

2,739

3,293

2,964

2,096

1,506

835

3.64

5.47

5.37

9.32

9.65

6.95

67 (B)-I*
20 (B)-F*
10 (C)-F*

33.33 (B)

30 (B)

Shareholders Equity
Paid-up Capital

Earnings Per Share

Dividends (%)

16 (B)
10 (C)

25 (B)

No. of Staff

2,695

2,473

2,300

1,963

1,143

1,045

120

110

100

82

51

47

No. of Branches

I = interim and F= financials

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53

Branches and ATMS:

Over 150+ branches in 21 cities of Pakistan

Over 110+ online branches
101+ ATM machines are operated
in the country
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54

 HMB operates in more than 20 countries across the world.

Electronic Banking:
Phone Banking
Dial 0800 HABIB / 0800 42242
Instant access to the information you need at any time, from anywhere.
Tele info is a 24 hour telephone banking service to give you information
you need easily, instantly.
Following services can be accessed 24/7
Account Balance.
Cheques in Clearing.
Indicative Foreign Exchange Rates.
Faxed back account statements.

Internet Banking (Online Banking)

Access your account from your home or office or anywhere in the world.
Login through web info username and password.
Login through your HMB ACCESS (ATM/Debit Card).
Following services can be accessed 24/7
Up-to-date Account Balance.
Cheques in Clearing.
Account statement
Indicative Foreign Exchange Rates.

International Banking:
1: Correspondent Bank Network
Habib Metropolitan Bank Limited
HEAD- OFFICE INTERNATIONL DIVISION
COUNTRYWISE LIST OF BANKS TO BE USED FOR IMPORT LC ADVISING

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55

COUNTRY
AFGHANISTAN

BANK

COUNTRY
CZECH. REP

STANDARD CHARTERED BANK

ARGENTINA

HABIB BANK LIMITED

BBVA BANCO FRANCES

AUSTRALIA

AUSTRIA

BAHRAIN

BANGLAD

D
E
U
HSBC BANK AUSTRALIA LIMITED
T
SJPMORGAN
C
CHASE
H
BANK, N.A.
E
BNP PARIBAS
UNICREDIT BANK AUSTRIA AG
AUSTRALIA
B
A
ANZ BANKING
N
K

BANK
.
COMMERZBANK AG
HSBC BANK PLC

DENMARK

EGYPT

UNICREDIT BANK CZECH REPUBLIC,A.S. (HVB BANK)

DANSKE BANK A/S
NORDEA BANK DANMARK A/S
BNP PARIBAS LE CAIRE (FORMERLY BANQUE DU
CAIRE ET DE PARIS)

ESTONIA
ETHIOPIA

FINLAND

RAIFFEISENLANDESBANK OBEROESTERREICH
AKTIENGESELLSCHAFT

H
UNITED
BANK LTD
S
RAIFFEISEN
ZENTRALBANK OESTERREICH AG
STANDARD
CHARTERED BANK
B
ESH
FRANCE
C
BANK ASIA LIMITED

C
I
NORDEA BANK FINLAND PLC ESTONIA BRANCH
T
I
B
A
COMMERCIAL
BANK OF ETHIOPIA
N
K
CITIBANK INTERNATIONAL PLC, FINLAND BRANCH
C
NORDEA
BANK FINLAND PLC
A
I
SAMPO BANK (PART OF DANSKE BANK GROUP)
R
BNPPARIBAS
SA (FORMERLY BANQUE NATIONALE
DE
O PARIS S.A.)

HSBC

BELGIUM

BRAZIL

BULGARIA

CANADA

CHILE

SHAHJALAL
ISLAMI
BANK
STANDARD
F
CHARTERED
O
BANK HABIB
R
T
BANK
ILIMITED
S

GERMANY

PUBALI BANK LIMITED

B
A
CITIBANK NA
N
K
DEUTSCHE BANK S.A
CITIBANK
NA
C
O
UNICREDIT
BULBANK AD
M
M
E
HABIB
CANADIAN BANK
R
Z
B
A
N
K
D
E
U
T
S
C
H
E
B
A
N

GREECE

HSBC
FRANCE
H
(FORMERLY
S
HSBC
CCF)
B
COMMERZBA
C
NK AG
B
FORTIS
A
COMMERZBANK
AG
BANQU
N
EK
STANDARD CHARTERED BANK
FRANCE
NATION
E
DZ BANK AG DEUTSCHE ZENTRAL
AL
G
GENOSSENSCHAFTSBANK HSBC
BANK
Y
TRINKAUS UND BURKHARDT AG
OF
P
PAKISTA
T
UNICREDIT BANK
N
AG
DEUTSC
(HYPOVEREINSBANK
HE
) J.P.MORGAN AG
BANK
AG
NATIONAL BANK OF PAKISTAN, FRANKFURT
CITIBANK INTERNATIONAL PLC GREEK BRANCH
CALYON
NORDEA BANK FINLAND PLC
BNP PARIBAS GRECE
NIEDERLASSUNG DEUTSCHLAND SEB
UNION DE BANQUES ARABES ET FRANCAISES
AG
UNICREDIT BANK AG
(HYPOVEREINSBANK)
DEUTSCHE BANK AG

Page |
56

BANCO SANTANDER

ATHENS ALPHA BANK AE

BANCO DEL DESARROLLO

CHINA

CROATIA

HONG KO
CITIBANK (CHINA) CO., LTD.

HBZ FINANCE LIMITED

HSBC BANK (CHINA)

COMPANY LIMITED
BANK OF CHINA LTD

C
I
T
I
B
A
N
UNICREDIT SPAHONG KONG BRANCH
K
STANDARD CHARTERED BANK (HONG KONG)
LIMITED
N

STANDARD CHARTERED BANK

(CHINA) LIMITED JPMORGAN CHASE
BANK (CHINA) COMPANY LIMITED
SHANGHAI BRANCH
ZAGREBACKA BANKA DD
AGRICULTURE
BANK OF CHINA
DEUTSCHE BANK
(CHINA) CO. LTD.

KUWAIT
CITIBANK NA

KYRGYZSTAN

BNP PARIBAS KUWAIT

QATAR

NATIONAL BANK OF PAKISTAN BISHKEK

BRANCH
DOHA BANK

ROMANI

RUSSIA
SAUDI ARABIA

NG

STANDARD
CHARTERED
BANK
ING BANK N.V., BUCHAREST BRANCH
UNITED
BANK
UNICREDIT TIRIAC BANK
LIMITED,
CITIBANK, MOSCOW
DOHA

A
H
S
SWITZERLAND B
C HABIB BANK AG ZURICH
B PARIBAS SA
BNP
N
P
TAIWAN

TANZANIA

A JPMORGAN CHASE BANK

BANQUE SAUDI FRANSI

THAILAND

BANK ALJAZIRA
SINGAPORE

NATIONAL
COMMERCIAL
CITIBANK NA
BANK SAMBA
NCIAL GROUP
HSBC
SAUDI
BRITISH
BANK
JPMORGAN
CHASE
BANK, N.A
BANK
MANDIRI

TUNIS
TURKEY

JPMORGAN
CHASE BANK,
P
CITIBANK TAIWAN LIMITED
N.A.,
HONG
KONG
BR.
A
MASHREQBANK
PSC.,
JPM
R
HONG
KONG BRANCH
ORG
I
DEUTSCHE
BANK
AN
B
CHAS
A
E
SBAN
K,
STANDARD
CHARTERED BANK TANZANIA LTD
(
N.A.
HSBC
S
CITIBANK
NA
U
STANDARD
I
HSBC
CHARTERED BANK,
S
TAIPEI BRANCH
SJPMORGAN CHASE BANK,
DEUTSCHE BANK AG,
E
N.A.,
BRANCH
TAIPEIBANGKOK
BRANCH
CITIBANK
NA
STANDARD
CHARTERED
)
BANK
(THAI)
THE BANK
OFPCL
NEW YORK
MELLON,
TAIPEI
BRANCH
S
BANK
OF
AMERICA,
N.A.
A
TAIPEI
U
B
S

FORTIS BANK
S.A./N.V.,
SINGAPORE HABIB
BANK LIMITED

A
G

BNP PARIBAS
SINGAPORE BRANCH
BAYERISCHE HYPOUND
VEREINSBANK AG

UN
ITE
D
BA
NK
A.

NORDEA BANK FINLAND PLC, SINGAPORE

(FORMERLY MERITA

Page |
57

Foreign Remittances
Global remittance facility available through our extensive correspondent
bank network.
Need assistance for remittance of funds to Pakistan
Please select one of the following formatted letters for presentation to
your bankers

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58

For Remittances in GPB

TO,
The Manager
____________________
____________________
____________________
Dear Sir,
Please debit my Account No. __________________With you, and remit a
sum of
GBP_____PoundSterling__________________________________________
______________________________________________________________
__________________
To
Habib Bank AG Zurich
Habib House
42 Moorgate London
EC2R 6JJ UK
For credit to
A/C No:
7-1-1-20110-402-19601
SWIFT:
MPBLPKKA
Habib Metropolitan Bank Limited
I.I. Chundrigar Road
Karachi
For further credit to
Branch Name: _________
Account No: ____________
Account Name: ____________
Yours faithfully
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59

For Remittances in USD

Date: _________________

FOR USD

The Manager
________________
________________
________________
Dear Sir,
Please debit my Account No._____________with you, and remit a sum of
US$__________________________US Dollars________________________
______________________________________________________________
______
To
Habib American Bank
99. Madison Avenue
New York- U.S.A.
For credit to
A/C No:
2072-9532
SWIFT:
MPBLPKKA Habib Metropolitan Bank Limited
I.I. Chundrigar Road
Karachi
For further credit to
Branch Name: ____________
Account No: ______________
Account Name: _____________
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60

Yours faithfully

For Remittances in Euro

Date: ___________

FOR EURO

The Manager
__________________
__________________
__________________
Dear Sir,
Please debit my Account No. _______________with you, and remit a sum of
EURO____________________EURO________________________________
______________________________________________________________
_______________
To
Commerz bank A.G
Kaiserplatz,
Frankfurt, Germany.
For credit to
A/C No:
50040000/400880742200
SWIFT:
MPBLPKKA
Habib Metropolitan Bank Limited
I.I. Chundrigar Road
Karachi
For further credit to
Branch Name: ________________

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61

Account No: __________________

Account Name: ________________
Yours faithfully

SWIFT BANKING
PAY TO:

US DOLLARS

1. Habib American Bank

Alc # 2072-9532

99, Madison Avenue

Routing No.ABA026007362

New York- U.S.A.

Swift Code: HANYUS33

New York 10016

2. Citibank N.A

A/c # 36082351

New York- U.S.A.

Swift Code: CITIUS33

3. Standard Chartered Bank

A/c # 3582073088001

New York- U.S.A.

Swift Code:SCBLUS33

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62

POUND STERLING
PAY TO:
1. Commerzbank AG
Kaiserplatz

Alc #
50040000/400880742200

Frankfurt Germany
Swift Code: COBADEFF

For credit to Account of

(Beneficiarys Bank)

Habib Metropolitan Bank Ltd.

Main Branch
Karachi- Pakistan

Beneficiary Customer

Swift Code: MPBLPKKA001

Customer A/c#_________
Name:________________

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63

Islamic Banking:
Habib Metropolitan Bank -Islamic Banking Division

Mission
Our mission is to provide full range of Shariaah compliant products and
services to our customers with no compromise on Shariaah rulings
Introduction to Islamic Banking Division
Habib Metropolitan Bank has developed sufficient expertise, necessary
infrastructure, information technology, and manpower to run Islamic banking
operation.
Banking customers who wish to avail Islamic banking products and services
are welcome to contact us to accomplish their banking requirements.
Our Islamic Banking Division is headed by an experienced banker who is
responsible for the over all operational activities of the Islamic Banking
Division. The Division has the advisory services of reputable Shariah advisors
who also help in developing Islamic Banking Products.

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Islamic Banking Products

Deposits Products
Islamic Current Deposits Account
Islamic PLS Account
Islamic Investment Certificates
Historical Profit Rates
Local Currency
Foreign Currency
Current Weight ages
Local Currency
Foreign Currency

Financing Products:
Local murabahah for financing raw material for locally manufactured
goods and local murabahah for financing finished goods for local
traders.
Local & import murabaha for financing raw material and finished goods
for importers and exporters for trade finance.
Ijara (Islamic lease) for financing equipments and machinery consumer
and commercial vehicles.
Ijara (Islamic lease) financing for consumer and commercial vehicles.
Commercial property financing on diminishing musharakah basis.
House financing on diminishing musharakah basis.

Islamic Banking Branches

Branch

Address

Telephone

Fax

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65

Al-Falah Court Branch

Zaibunnisa Street
Branch

Rashid Minhas Rd.

Branch

Ground Floor, Alfalah Court, I. I.

Chundrigar Road, Karachi

SB-4/4, Zaibunnisa Street, Saddar,

Karachi

F-L, 3/15, Block 5, Gulshan-e-Iqbal,

Karachi

(021)2215361-63

(021)2215358

(021)5650711-4

(021)5650650

(021)4819985-86, 88

(021)4819989

Shariah Adviser
We have a prominent Islamic scholar as our Shariah Adviser who is a
specialist in Islamic Fiqh and is qualified from renowned Islamic
Academia.
He is a Research Scholar affiliated with SBP and ICAP.and a member
of various committees formed for promoting the cause of Islamic
Banking in Pakistan and abroad.

Rates and Charges:

Deposit Rates
Indicative Profit Rates payable on PLS Deposits Schemes effective from July,
21 2010.
Type of Deposit

Rates per annum

5.00% p.a.

PLS Savings Accounts

SNTD

Term/Fixed Deposits

7 days

5.00% p.a.

30 days & over

5.00% p.a.

1 month

6.00% p.a.

3 months

7.50% p.a.

6 months

8.25% p.a.

1 year

9.50% p.a.

2 years

10.00% p.a.

3 years

11.00% p.a.

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66

HMB Savings Plus Accounts

Up to Rs.100,000/Over Rs.100,000/- up to Rs.1 Million
Over Rs.1 Million
HMB Multiplier Accounts
Up to Rs.1 Million
Over Rs.1Million
HMB Izafa Certificate
(With effect from December 1, 2010)

HMB Mahana Scheme

(With effect from December 1, 2010)

4 years

11.25% p.a.

5 years

11.50% p.a.

Individuals only

5.00% p.a.
8.00% p.a.
5.00% p.a.

5.00% p.a.
8.00% p.a.

for 6 years

16.67% p.a.

(i)For 1 year - min. placement

Rs. 25,000
11.70%

Rs. 244 p.m.

(ii)For 3 years - min. placement Rs.

50,000
12.12%

Rs. 505 p.m.

(iii)For 5 years - min. placement Rs.

100,000
12.24%

Rs. 1,020 p.m.

TERMS OF USE
In the case of term deposits not en-cashed on maturity, principal
amount will automatically be renewed for the same period for which the
Deposit was originally placed.
On premature withdrawal of Term Deposits, the profit will be paid as per
the rate applicable for period deposit held.
All above Indicative Profit Rates are subject to Government of Pakistan
Levies as applicable from time to time.
In all above products Zakat / Govt. levies will be applicable as per rules.
In case balance of Rs. 1 Million not maintained for any day profit will be
paid @ 5.00% p.a. for the month.

Exchange Rates
RATES FOR PUBLIC PER UNIT OF CURRENCY
COUNTRY

SELLINGTT & OD BUYINGTT CLEAN BUYING O/DT/CHEQUES

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67

U.S.A.

85.8500

85.6500

85.4810

133.3680

133.0144

132.7438

CANADA

84.6981

84.4758

84.3280

AUSTRALIA

84.7597

84.7421

84.4143

1.022754

1.019764

1.017980

DENMARK

15.2038

15.1604

15.1338

SAUDIARABIA

22.8927

22.8382

22.7982

SWITZERLAND

88.5508

88.2899

88.1354

U.A.E.

23.3739

23.3182

23.2774

HONGKONG

11.0384

11.0117

10.9924

SINGAPORE

65.3597

65.1579

65.0438

SWEDEN

12.5651

12.4962

12.4743

2.8484

2.8380

2.8330

113.2190

112.9038

112.6821

U.K.

JAPAN

THAILAND
EURO

BILL BUYING RATES PER UNIT OF CURRENCY UNDER L/C

PERIOD

U.S.A

U.K

AUSTRALIA

EURO

CANADA

30 DAYS

85.2276 132.3291

83.8993 112.3509

83.9182

60 DAYS

84.7630 131.5759

83.1156 111.7185

83.3968

90 DAYS

84.3406 130.8899

82.3346 111.1424

82.8723

120 DAYS

83.9182 130.1990

81.5794 110.5680

82.3763

150 DAYS

83.4958 129.5149

80.7734 109.9928

81.8333

180 DAYS

83.0735 128.7938

79.9538 109.4227

81.2781

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68

OFFICIAL BUYING RATES FORWITHDRAWL FROM OLD F.C.A/C.

PERIOD

U.S.A

U.S.A.

85.7950

U.K.

134.6724

JAPAN

1.020600

EURO

114.0902

RATE FOR CURRENCY NOTES

PERIOD

U.S.A

U.K

U.S.A.

85.2218

86.2793

U.K.

132.3494 134.0348

JAPAN

1.014665 1.027868

EURO

112.3393 113.7851

LIBOR FOR CALCULATING INTEREST ON SPECIAL US DOLLAR BONDS

null

null

LIBOR

6 MONTHS US DOLLAR

0.4578

20.12.2010

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69

KIBOR RATES
One
Week
12.54

Two
Weeks

One
Month

12.77

Three
Months

13.11

13.41

Six
Months
13.61

Nine
Months

Twelve
Months

13.95

14.11

Two
Years
14.21

Three
Years
14.32

Corporate Information Snap Short:

Habib Metropolitan Bank Limited Company Snapshot

Business Description:
Habib Metropolitan Bank Ltd. is a financial company engaged in commercial
banking and brokerage services. Its products and services include HMB
Access, HMB Auto Finance, HMB Auto Leasing, HMB Basic Account, HMB
Call Account, HMB Current Account, HMB Education Loan, HMB Izafa
Certificate, HMB Multiplier Account, HMB Mahana Scheme, HMB Personal
Loan, HMB Savings Plus Account and PLS Savings Account with Free Life
Insurance. The Bank operates 120 branches, including four Islamic banking
branches in Pakistan. The Bank is a subsidiary of Habib Bank AG Zurich. The
Bank's subsidiary, Habib Metropolitan Financial Services Limited, is engaged
in equity brokerage services.
Wright Quality Rating: DLC1

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70

At year-end, HMB s equity stands at Rs 18.9 billion at a comfortable 11.9%

capital adequacy level against the required 10%.
Stock Data:

Current Price (12/10/2010):

Recent Stock Performance:

25.65

1 Week

4 Weeks

2.1%

13 Weeks

22.4%

35.0%

52 Weeks

-1.5%

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71

Habib Metropolitan Bank Limited Key Data:

Ticker: HMB
Country: Pakistan
Exchanges: KAR
Major Industry: Financial
Sub Industry: Commercial Banks
2009 Sales

25,082,193,000
(Year Ending Jan 2010).

Employees: 1,659
Currency:

Pakistan Rupees

Market Cap: 22,397,400,450

Fiscal Yr Ends: December
Shares Outstanding: 873,193,000
Share Type: Ordinary
Closely Held Shares: 595,085,145

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72

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SWOT ANALYSIS
STRENGTHS:

Large capital base.

Rank in top 10 bank of Pakistan.
Continuous growth in ROE.
The banks management realizes the necessity of existence of effective
internal controls to ensure smooth operations in the current technical
and swift business environment.
Loyal management.
The bank has efficient and experienced management making
significant.
Credit rating in long-term AA+ and in the short term A1+.
The financial statements, prepared by the management of the bank
present fairly the state of affairs.
Loans are given only to known, reputable clients to avoid chances of
fraud. Very low nonperforming loan.
Effectively handled the current economic recession.
Bank is continuously focusing on developing new and innovative
products to attract their target market.
Strong customer relationship.
Asset utilization is very good.

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WEAKNESSES:

Only valued client is important.

Bad portfolio diversification (54% advances to Textile industry)
Advertisement on electronic media has not been seen.
Declining standards of banking after merger. Inter- organizational
conflicts after merger.
Compromises upon polices to keep customers happy.
Old Management. (No creativity)
No further growth in branches.
Majority of shares are owned by the one family.
Low consumer finance.
Less job satisfaction of employees.
Customers facing problem of NADRA verification while opening their
accounts because its process is time consuming.
Promoting generally on seniority basis.
Attitude of senior manager at head office has to change towards junior
staff.

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OPPORTUNITIES:
Scope in Islamic Banking.
To go global fully
Low exposure to consumer banking providing opportunity to explore the
segment.
The year 2010 will prove to be another demanding year for the bank
with scattered. Diversification, innovation and mission driven approach
are the key to success which bank should adopt.
Progressive but cautious business expansion with strategic branch
network extension and introduction of innovative products in all areas of
business. Branch network need extension.
Should emphasize much on e-banking. Profit margin will be good.
The bank being Swiss incorporated, it bank follows dual banking
regulation i.e of Pakistan as well as Switzer-land which attracts foreign
investors.
SBP policy to allow Islamic Banking business separately.
Bank introduces Islamic banking in country that attracts large number of
people.
Greater profitability can be achieved through strong internal control.
New schemes for deposits and finances should be introduced regularly.
Opportunity to open branch in ruler area to increase its branch network
and gain more profit.

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76

THREATS:
Adverse impact of Credit Crisis can badly effect on HMB.
Facing a strong competition by its competitors. High reliability on only
one market segment i.e. Textile. (54%)
Inconsistency in government policies.
Increasing competition in the banking sector. Entry of many foreign
banks.
Strict policies of the State Bank of Pakistan.
Geopolitical condition of country.
Global liquidity crisis has constrained banks to stop lending.
Current economic crunch.
Political instability.
Rising deposit rates.
Foreign banks in market having more marketing budgets.
People losing trust in banks.
Decline in private and public sector credit due to tight monetary policy.

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77

PEST ANALYSIS
Political:
Political instability can lead to changes in laws and policies which
can be in favor or against the banking sector
Monopolies Legislation
Taxation Policy
Foreign Trade Regulations

Economic
Economy of Pakistan is facing issues about
Unemployment,
Inflation,
Illiteracy,
Corruption
Business Cycles
Interest Rate
all the above issues hinders business growth.

Socio Cultural issues

Cultural issues can be there but still as there are a number of
multinational companies there, therefore, culture issues are not
prominent.

Population Demographics
Income Distribution
Social Mobility
Lifestyle Changes
Levels of Educations

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78

 Technological

Speed of Technology Transfer

New Discoveries / Development
Investment on Research
Rate of Obsolescence

RISK MANAGEMENT
Credit risk:
The HMB strategy is to minimize credit risk through a strong pre-disbursement
credit analysis, approval and risk measurement process added with product,
geography and customer diversification. The Bank, as its strategic preference,
provides loans only to strong parties. Major portion of the Bank credit portfolio
is Textile industry (54%) which is highly profitable business in Pakistan but it
may riskier and not a good diversification of portfolio, if textile industry slump
then it will crash the whole bank. The bank has very low rate of Nonperforming loans. The ratios of risks are as under and we can see that they
reduce the risk as per their objective.

Market Risk:
Market risk is the possibility that fluctuation in interest rates, foreign exchange
or stock prices will change the market value of financial products leading to a
loss. The HMB has formalized liquidity and market risk management policies
which contain action plans to strengthen the market risk management system.

Foreign Exchange Risk:

Foreign Exchange Risk is the probability of loss resulting from adverse
movement is exchange rates. The HMB is not in the business of actively
trading and market making activities but a conservative risk approach and the
Banks business strategy to work with export oriented (Textile) clients gives
the ability to meet its foreign exchange needs.

Interest rate risk:

Interest rate risk is the risk that the value of the financial instrument will
fluctuate due to changes in the market interest rates. The HMBs interest rate
exposure is low due to the short-term nature of the majority of business
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79

transactions. Interest rate risk is also controlled through flexible credit pricing
mechanism and variable deposit rates.

Liquidity risk:
HMB manages the liquidity position on a continuous basis. The Banks
liquidity position is based on self-reliance with a wide branch network to
expand the Bank deposit base. The Banks liquidity profile generally consists
of short-term, secured assets, in line with the Banks credit strategy.

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80

RECOMMENDATIONS

Diversify the portfolio

Introduction of new products/services in the market

Hire new management

Give importance to all customers

Increase the branches all over the country

Improve standard of banking

Start advertisement as soon as possible

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81

Conclusion
Major factors like global financing disorder, economic slowdown and
strict monetary policy were on the top but Pakistan bank caters all
these problems. HMB is one of the top ten banks it is expected to
play a major role in pioneering these newer markets.
Currently, the banking sector is facing two major problems. The first
one is the decline in credit demand due to slowdown in the economic
activities due to poor law and order situation, power crisis, inflationary
pressure, and high interest rates. The other problem is the mounting
amount of NPLs (non-performing loans). With the exception of a few
banks all the banks are exhibiting considerable rise in NPLs. These
two issues are collectively dampening the banking sector s
performance.
HMB offers branch banking,e-banking,consumer banking
international banking and also offers Islamic banking to facilitate their
customers
At year-end, HMB s equity stands at Rs 18.9 billion at a comfortable
11.9% capital adequacy level against the required 10%.
The credit ratings denote a very high credit quality, a very low
expectation of credit risk and a very strong capacity for timely
payment of financial commitments.

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