Thanks to our respected Ma’am Raima

Adeel
GROUP MEMBERS

M Soban Murad (Group leader) MBKE-18-07

Fiaz Ahmad MBKE-18-04
Iqbal Ahmad MBKE-18-06
Faisal Islam MBKE-18-09
Meesam Abbas MBKE-18-10
Rehan Abbas MBKE-18-23
Muhammad Asif MBKE18- 17-29
Report On

HBFCl
Table of contents

 Introduction of company
 History of HBFCL
 Mission and vision
 Products and Services
 Function and Rules
 Competitor
 Advantages and Disadvantages
 SWOT Analysis
 PEST Analysis
 Conclusion
Introduction

 The oldest housing finance institution of Pakistan and

among oldest in Asia Pacific Region;
 Established as public sector enterprise (PSE) under
Government Act in 1952
 January 2005 the stewardship was given to a professional
banker from private sector
 Incorporated on July 25, 2007, the House Building Finance
Company Limited is an unlisted public company
 The Government of Pakistan (GoP) and the State Bank of
Pakistan (SBP) jointly hold the capital of HBFCL with
62.50% and 37.50%, shares respectively
Mission:

To be a socially responsible and commercially sustainable

housing finance institution:
 Target market – Low income and middle income groups
of populations
 Target areas – No negative list, all legalized residential
locations
 Responding to housing needs of low income groups is a
social responsibility, beyond that everything has to be
100% commercially viable and sustainable to ensure an
on going housing finance entity.
Vision:

 To be the prime housing finance institution of the country,

providing affordable housing solutions to low and middle
income groups of population by encouraging new
constructions in Small & Medium Housing (SMH) sector.
Products:

At present HBFC Ltd. has following housing finance

schemes in operations.
 Ghar Pakistan Scheme
 Shandar Ghar Scheme
 Finance Facility for Small Builders
Services

 Providing loans to the people is a service of house

building of finance corporation limited.
Function

 Special (Building ) Projects

 Corporate Affairs
 Business Development, Treasury & Customer Services
 Human Resource
 Legal, Compliance, Strategy, Marketing / Public Relations
 Internal Audit
 Chief Financial Officer
 Credit / Collection / SAM
 Operations & Technology
 Risk Management
Rules

 Age
 Co-Applicant or Guarantor
 Income
 Property
 Purchase of house & apartment
 Maximum covered area
Competitor

Those are following competitor of HBFC.

 Mezan Bank (Main competitor)
 JS Bank
 National Bank
 HBL bank
Advantages:

 Give loan to low middle income .

 Main focus on providing loan for housing scheme .

 The company give the loan who have minimum

50,000 income monthly.
Disadvantages

 Service issue as compare to private sector government

employee cannot work like private employees.
 Increasing interest rate as compare to private sector.
 Marketing not at high level as compare to private sector.
SWOT Analysis

S Stand for Strengths

W Stand for Weakness
O Stand for opportunities
T Stand for Threats
Strengths:

 Brand name being a government institute

 Fix rate product
 Almost all standard are established
 Application flexibility
 Integration of idea repositories with all related resources
 Searching sharing clustering and reuse of knowledge
 Machine understandable form for software agents
communication
 Semantic annotation and machine maintenance of large
resources repository
 Facilitating collaborative tools
Weakness:

 Increase in interest rate

 Long term and gradual introduction
 Cost currently exceed benefit
 Lack of experts
 Important role of organization culture and trust
Opportunities:

 Competitor not give loan to the low middle income

 Interaction of different domains
 Unified user – friendly interface
 Federated query
 Combination and integration of the existing technology
solution
 Machine learning and ontology
Threats:

 Increasing interest rate

 No marketing at high level
 Difference in technical standards
 Questionable semantic interoperability
 Unsolved problem of ontology engineering
 Ontology’s developments requires specific programming
skills
 Lack of technology supplier
 Lack of enterprise data integration application
PEST Analysis:

 Political effect
 Economical effect
 Social effect
 Technological effect
Political Effect:

 No effect of politics. All policies work according to

ministry of finance and state bank of Pakistan.
 HBFCL can’t give loan to people on the recommendation
of any political person.
 It rely on the policies of government
Economical Effect:

 It has no effect on economic

Social Effect:

 House is a need of every people we can fill the need of

people through finance
 We can give loan to low middle income
Technological Effect:

 Technology not use properly in HBFCL as compare to

competitor manual work is used in HBFCL now we
adopting the new technology for computer software
working.
Conclusion

HBFCL is primarily owned by State Bank of Pakistan with direct

holding of 90.3% and indirect stake of 9.7% through
Government of Pakistan. The company operates through a
network of 50 branches and 3 regional offices across the
country.
Presently, nearly 51% of HBFCL's clientele is of the lower
income demographic with loan amounts of less than Rs.
100,000. Nearly 93% of our clients have loans below Rs.
500,000, and maintain a monthly income between Rs. 3,500
and Rs. 5,000. Understanding that a large portion of our client
base can only afford to pay installments of Rs. 1,000 to Rs.
1,200 per month, HBFCL has actively developed products to
accommodate this market to include repayment plans over a
15 to 20 year period.