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
Institution:

HAILEY COLLEGE OF BANKING

& FINANCE
Submitted by:

Aroosh Mehmood
M10MBA026
Anum Arshad
M10MBA043
Dania Shah
M10MBA069

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Submitted to:
Sir Raiz Ahmed Mian

ACKNOWLEDGEMENT

First of all we thank to ALLAH ALMIGHTY gave us this beautiful life .

We are very grateful to our respected SIR AHMED RAIZ MAIN who gave us
this
opportunity to make the project on HABIB METROPOLITAN BANK and
helping
us to having all the information about the bank

I would also thank to my parents and my group members for co-operate .

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Contents:
DESCRIPTION
Page #

Economic and banking review ..07

Habib Metropolitan Bank
History & Introduction...08
Vision..09
Mission...10
PACRA maintains ratings of Habib metropolitan...11
Bank ltd. (Hmb)
Achievements...12
Corporate
Information.....12
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i. Board of Directors....................................................................12
ii. Chairman..................................................................................12
iii. Directors...................................................................................12
iv. Audit Committee.......................................................................12
v. Company sectary......................................................................12
Competitors.....................................................................................13
PRODUCTS.........................................................................................14
vi.
vii.
viii.
ix.
x.
xi.
xii.
xiii.
xiv.
xv.
xvi.
xvii.
xviii.
xix.
xx.
xxi.

HMB Premium Deposit

Scheme...............................................14
Basic Banking
Account ...........................................................15
HMB Access (ATM / Debit
Card) .............................................16
HMB Auto
Finance ...................................................................16
HMB Auto
Lease ......................................................................16
HMB Call
Account ....................................................................17
HMB Current
Account ..............................................................17
HMB Education
Loans .............................................................18
HMB Izafa
Certificate................................................................18
HMB Multiplier
Account ...........................................................18
HMB Mahana
Scheme ............................................................19
HMB Personal
Loans ............................................................19
HMB Saving
Account ............................................................19
PLS Saving Account with Free Life
Insurance..........................20
Super Current
Account ............................................................ 20
HMB MAKRO Prepaid
Card......................................................21

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 Services ..........................................................................................22
i. Cash Management
Services ......................................................22
ii. E-Salary
Accounts .....................................................................22
iii. HMB Call
Centre .........................................................................23
iv. HMB GSM Mobile
Banking .........................................................23
v. HMB Rent Free
Lockers .............................................................24
vi. HMB Tele Info
Service ...............................................................24
vii. HMB Web Info
Service ...............................................................24
viii. POS (Point of Sale)
Machine ......................................................25
ix. Short / Long Term
Finance ........................................................25
Financials.............................................................................
.............28
Branches &
ATMS ............................................................................29
Electronic
Banking ............................................................................30
i. Internet
Banking.......................................................................
.....30
ii. Phone
Banking ....................................................................
.......30
International
Banking ............................................................
.............31
i. Corporate Bank Network................................................................31
ii. Foreign Remittances......................................................................33
iii. Swift Banking ...............................................................................36
Islamic
Banking...................................................................................3
7
i. HMB Islamic
Banking.....................................................................37
ii. Islamic Banking
Products...............................................................38
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iii.
iv.
v.

Financing
Products........................................................................
.38
Islamic Banking
Branches..............................................................38
Shariah
Adviser..........................................................................
....39
Rates &
Exchange ..............................................................
...............39
i. Deposit
Rates...........................................................
.....................39
ii. Exchange
Rates...........................................................
.................40
Corporate Information Snap
Short................................................
......43
SWOT
ANALYSIS.......................................
........................................45
PEST
ANALYSIS
.49
RISK
MANAGEMENT
..51
RECOMMENDATIONS

53
CONCLUSION
..54

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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 Fund s 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 honor 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
include instrument and entity credit ratings, insurer financial strength ratings,
fund ratings, asset manager ratings and real estate grading.

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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
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Company Secretary
Muhammad Imran

COMPETITORS:
Arif Habib Bank
MCB
Bank al Habib
National Bank of Pakistan
Bank Alfalah
Standard Chartered Bank

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PRODUCTS
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.
TenorQuarterly Profit
Half Yearly profit
Rate p.a
Amount (Rs)
Rate p.a Amount (Rs)
1 Year
12.00%
3,000 12.20%
6,100
3 Year
12.20%
3,050 12.30%
6,150
5 Year
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 youre PLS
Savings / Current account and can be withdrawn by HMB Access ATM/Debit
Card or Cheque book.
Maturity:

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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:
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.

2.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.
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

3: HMB Access (ATM / Debit Card)

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 HMB Debit Cards are FREE, and available to our valued clients at all
HMB branches.
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

4: Habib Auto Financing

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.

5: 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.

6: HMB Call Account

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
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 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

7: HMB Current Account

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

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

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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 upto 14.29 % p.a
Investment doubles in Seven years.
Easy Loan Facility.
Encashable 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
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.
Encashable any time.
Monthly Profit credited to your account automatically.

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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,
which ever 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.
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

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Web info & Tele info Services

Pay Order

15: HMB Super Current Account

The minimum amount required for opening and maintaining this
account is Rs. 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 MAKRO Prepaid Cards

HMB and Makro Co-branded Prepaid Cards: Convenient, Secure and
Effective.HMB and Makro-Habib Pakistan have together launched a prepaid
card program. As you are already aware, Makro 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
Makro stores.This card program carries two exciting products namely the Gift
Card and the Shopping Card which can both be used exclusively to make
purchases at all Makro stores in Pakistan.
The prepaid cards are issued free of cost and can be purchased from all
Makro 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, Makro Stores are located at:
Manghopir Road, Karachi
Lines Area, Karachi
Stargate, Karachi
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 Ravi Road, Lahore

Model Town, Lahore.
Salient features
Prepaid Gift card:

The Gift card has a fixed value of Rs 1,000 and is a disposable card.
Available at all Makro stores;
for purchases over Rs 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.

SERVICES
1: Cash Management Services
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.
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 Up to date tracking of funds with online reports available through

web info and tele info services.

2: E-Salary
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

3: 24 Hours Call Center

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.

4: HMB GSM Mobile Banking

We are pleased to introduce HMB mobile banking facility, which would be
available on request to all our existing and new account holders.

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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
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)

5: HMB Rent Free Lockers

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

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Small

Rs. 20,000

Medium

Rs. 35,000

Large

Rs. 60,000

Extra Large

Rs. 100,000

6: 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.
Indicative Foreign Exchange Rates.
Faxed back account statements.

7: 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.

8: POS (Point of Sale) Machine

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
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(ATM / Debit card).

9: 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.
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

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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 Faram
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 rehabilition 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
liters 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:
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

As of: Dec 31
2006

Dec 31
2007

Dec 31
2008

Dec 31
2009

Restate
d
PKR

Restated
PKR

Restated
PKR

PKR

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TOTAL REVENUES

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

Another table of financials

For the Year

Dec '09

Dec '08

Dec '07

Dec '06

Dec '05

Dec '04

(Rupees in million)
Shareholders Equity

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

Paid-up Capital

Page |
30

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)

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

Branches and Atms:

Page |
31

 Over 150+ branches in 21 citiesof Pakistan

Over 110+ online branches
101+ ATM machines are operated
in the country
HMB operates in more than 20 countries across the world.

Electronic Banking:
1: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.

2: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
COUNTRY

BANK

COUNTRY BANK

Page |
32

AFGHANISTAN
STANDARD CHARTERED BANK

CZECH. REP.
COMMERZBANK AG
HSBC BANK PLC

ARGENTINA
BBVA BANCO FRANCES

AUSTRALIA

D
E

DENMARK
DANSKE BANK A/S
EGYPT

HSBC BANK AUSTRALIA LIMITED

AUSTRIA

JPMORGAN
CHASE
BANK, N.A.
UNICREDIT BANK AUSTRIA AG

BNP PARIBAS LE CAIRE (FORMERLY

BANQUE DU CAIRE ET DE PARIS)
ESTONIA
NORDEA BANK FINLAND PLC ESTONIA
ETHIOPIA BRANCH

FINLAND
BAHRAIN

RAIFFEISENLANDESBANK OBEROESTERREICH

CITIBANK INTERNATIONAL PLC, FINLAND

BRANCH

UNITED BANK LTD

BANGLAD

ESH
BANK ASIA LIMITED

NORDEA BANK FINLAND PLC

FRANCE

BNPPARIBAS SA (FORMERLY BANQUE

NATIONALE DE PARIS S.A.)

HSBC

BELGIUM

SHAHJALA
L ISLAMI
BANK
F
O
R
T
I
S

GERMANY

COMMERZBANK AG
STANDARD CHARTERED BANK
DZ BANK AG DEUTSCHE
ZENTRAL
GENOSSENSCHAFTSBANK
HSBC TRINKAUS UND
BURKHARDT AG

BRAZIL
CITIBANK NA
BULGARIA
CITIBANK NA
CANADA

GREECE

HABIB CANADIAN BANK

HSBC
FRANCE
(FORMERLY
HSBC CCF)
COMMERZB
ANK AG

UNICREDIT
BANK AG

CITIBANK INTERNATIONAL PLC GREEK

BRANCH
BNP PARIBAS GRECE

CHILE
BANCO SANTANDER
BANCO DEL DESARROLLO

UNICREDIT BANK AG
(HYPOVEREINSBANK)
ATHENS ALPHA BANK
AE
NG

Page |
33

CHINA

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

STANDARD CHARTERED
BANK (CHINA) LIMITED
ZAGREBACKA BANKA DD

KUWAIT
CITIBANK NA

STANDARD CHARTERED BANK (HONG

KONG) LIMITED

SWITZERLAN
D
HABIB BANK AG ZURICH
B
N
P

KYRGYZSTA
N
NATIONAL BANK OF PAKISTAN
QATAR

BISHKEK BRANCH
DOHA BANK

ROMANI

TAIWAN
P
CITIBANK TAIWAN LIMITED

STANDARD
CHARTERE
D BANK
ING BANK N.V., BUCHAREST BRANCH

JPMO
RGA
N
CHA
SE
BAN

RUSSIA
CITIBANK, MOSCOW
SAUDI
ARABIA

TANZANIA
JPMORGAN CHASE BANK
BANQUE SAUDI FRANSI

THAILAND

STANDARD CHARTERED BANK TANZANIA

LTD
CITIBANK NA

BANK ALJAZIRA

HSBC
TUNIS

SINGAPORE
CITIBANK NA
HSBC

CITIBANK NA
TURKEY

2: 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
For Remittances in GPB
Date: _________________
for GPB
The Manager

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34

____________________
____________________
____________________
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
For Remittances in USD
Date: _________________

FOR USD

The Manager
________________
________________
________________
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35

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: _____________
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________________________________

Page |
36

______________________________________________________________
_______________
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: ________________
Account No: __________________
Account Name: ________________
Yours faithfully

3:SWIFT BANKING
PAY TO:

US DOLLARS

1. Habib American Bank

Alc # 2072-9532

99, Madison Avenue

Routing
No.ABA026007362

New York- U.S.A.

New York 10016

Swift Code: HANYUS33

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37

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

POUND STERLING
PAY TO:
1. Commerzbank AG
Kaiserplatz

Alc #
50040000/4008807422
00

Frankfurt Germany
Swift Code: COBADEFF

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38

For credit to Account of

(Beneficiarys Bank)

Habib Metropolitan
Bank Ltd.
Main Branch

Beneficiary Customer

Karachi- Pakistan
Swift Code:
MPBLPKKA001
Customer A/c#_________
Name:________________

Islamic Banking:

Page |
39

1: 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.

2: 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

3:Financing Products:
Local murabahah for financing raw material for locally manufactured
goods and local murabahah for financing finished goods for local
traders.
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40

 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.

4: Islamic Banking Branches

Branch

Address

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

Telephone

Fax

(021)2215361-63

(021)2215358

(021)5650711-4

(021)5650650

(021)4819985-86, 88

(021)4819989

5: 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:

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

Rates per annum

5.00% p.a.

Page |
41

SNTD

Term/Fixed Deposits

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)

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.

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.
Page |
42

 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.

2: Exchange Rates
RATES FOR PUBLIC PER UNIT OF CURRENCY
COUNTRY

SELLINGTT & OD

U.S.A.

BUYINGTT CLEAN

BUYING O/DT/CHEQUES

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

Page |
43

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

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.S.A.

U.K
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

6 MONTHS US DOLLAR

null
0.4578

LIBOR

20.12.2010

Page |
44

KIBOR RATES
One Week Two Weeks One Month Three Months Six Months Nine Months Twelve Months Two Years Three Years
12.54

12.77

13.11

13.41

13.61

13.95

14.11

14.21

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

Page |
45

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:

Recent Stock Performance:

1 Week

Current Price
(12/10/2010):

2.1%

13 Weeks

22.4%

5.65
4 Weeks

35.0%

52 Weeks

-1.5%

Habib Metropolitan Bank Limited Key Data:

Ticker: HMB

Page |
46

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

Page |
47

SWOT ANALYSIS:
STRENGTHS:
Page |
48

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.

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.

OPPORTUNITIES:

Page |
49

 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.

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.

Page |
50

Page |
51

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

Technological

Speed of Technology Transfer

New Discoveries / Development
Page |
52

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
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
Page |
53

Bank deposit base. The Banks liquidity profile generally consists of shortterm, secured assets, in line with the Banks credit strategy.

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

Page |
54

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
cutomers
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.

Page |
55

Page |
56