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irtual University of Pakistan Evaluation Sheet for Internship Report Fall 2010
FINI619: Internship Report (Finance) Credit Hours: 3

Name of Student: Asad Ali Students ID: MC080405025

Evaluation Criteria Report writing Presentation & Viva voce Final Result

Result Needs Improvement

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You are required to improve your Internship Report by strictly following the instructions given below: All the mistakes are highlighted in this Report. The major improvements are required in the Internship Training Program and the Ratio Analysis portion. Please amend these portions specifically and the entire Report in general by following the instructions strictly. The Internship Training Program Section is NOT STATISFACTORY. It was specifically mentioned in the Internship Report Format that you are required to DISCUSS the activities that you have performed in the various departments rather than providing the activities in the bulleted form. You have NOT elaborate at a single point the tasks/activities that you have performed in various departments of the bank.

In Pakistan Rupees currency is available and used, so you are required to use the values given in Rupees NOT in Dollars.
The values as per the audited annual reports and the values taken for the ratio analysis DO NOT match, please verify the amounts.

INTERNSHIP REPORT

HABIB BANK LIMITED OF PAKISTAN


PREPARED BY
Student Name Id Semester Final report date Asad Ali Mc080405025 4th 11 febuary, 2011.

Virtual university of Pakistan.

University Phone# Mailing Address

Virtual university of Pakistan 0333-6547321 Gojra.

Virtual university of Pakistan.

Virtual university of Pakistan.

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Dedication

I dedicated my repot To my respected instructor.

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Acknowledgment
FIRST OF ALL I THANKFUL TO MY ALLAH AND BOWED MY HEAD BEFORE ALLMIGHTY ALLH WHO ENABLE ME TO WRITE ON THIS REPORT.

I am thankful to my respected instructor fini619 who proper guidance and suggestion encourage me writing this report I am also grateful the person who provided me information and give time for working this report.

I am also thankful to my parents and friends who provided me help and suggestion when and where needed.

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EXECUTIVE SUMMARY In the introduction it is established in 1947.It is the largest retail banking in term of branches and deposit. In the over view of the organization Habib Bank Limited was established by Mr.Ismail Habib (late) on 25th August, 1942 at Bombay.HBL first Muslims bank of Sub-continent. I give hierarchy chart. I give business volume, product lines, and competitors. I give plan of my inter ship program I write training program that done on the bank I analyze different ratio analysis. I calculate liquidity, leverage, profitiality, activity and market ratio. I give future prospect of the bank. I made conclusion I give recommendation for improvement for the organization. I give reference Finally, I give Annex used in report.

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TABLE OF THE CONTENTS 1.Title page 2.Letter of undertaking 3.Scan copy of internship certificate 4.Dedication 5.Acknowledgement 6.Executive summary 7.Brief introduction of organization 8.overvies of the organization a. History b. Organizational hierarchy chart c. Business volume d. Product lines e. Competitors f. Introduction of all department g. Comment on organizational structure 10.Plan your internship program 11.Training program 12.Ratio Analysis 13.Future prospects of the organization 14.Conclusion 15.Recommendation for improvement 16.Reference & Source used 17.Annexes

1 2 3 4 5 6 8 9 9 9 10 11 11 11 13 14 15 16 31 32 33 34 35

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1. Brief Introduction:
The Habib Bank limited obviously a financial service organization which deals with lending, borrowing and investing activities. The nature and responsibilities of this bank is different and unique from other banks. It is largest commercial bank operating in Pakistan. It is presence in the twenty-five countries with subsidiaries in Hong Kong and UK and affiliates in Nepal and Nigeria. It is the largest corporate banking portfolio in the country with dynamic investment. The SME and agriculture lending programmed and banking services are offered both urban and rural region. It is increasing its presence in international markets for example UK, South Asia, UK and Gulf were huge South Asian Diaspora is present. It is also reached in Africa and Central Asia through its shareholding in regional banks such as Diamond Trust Bank, Kenya and Kyrgyz Investment and Credit Bank in the Kyrgyz Republic. Habib Bank Limited (HBL) received three Global Finance Awards in Istanbul at the World Bank Annual Meetings 2009 that is Best Bank Pakistan, Best trade Finance Provider Pakistan and Best Foreign Exchange Provider Pakistan. By the side of with these international recordings it is also rates as the Top Banking Brand in Pakistan by The Banker, the worlds premier banking and finance magazine.

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2. over view of the organization: a. History Habib Bank Limited was established by Mr.Ismail Habib (late) on 25th August 1942 at Bombay.HBL first Muslims bank of Sub-continent. It was established with paid up capital 2.5 millions. There are only 12 braches at the early stage. HBL established its operations in Pakistan in 1947 and moved head office to Karachi. The first international branch of the HBL established in Colombo (Srilanka) in 1951. Market share over 40% with the domestic market was nationalized in 1974 and dominate the commercial banking sector with a major market share in inward foreign remittance.(50)% and loan to small industries, traders and farmers. The international operations expanded and included USA, Singapore, Oman, Belgium, Seychelles, Maldives and Netherlands

b. Organizational Hierarchy Chart: The organizational hierarchy chart given as follows: PRESIDENT

BOARD OF DIRECTOR

MEMBER EXECUTIVE BOARD

REGIONAL CHIEF

ZONAL CHIEF

BRANCH MANAGER c. Business Volume According to 2008-2009 Balance Sheet of HBL the business volume give as under: Virtual university of Pakistan.

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2008(Rs)

2009(Rs)

% Increase/Decrease in volume 0 14.33% Increase.

Bonds Assets

0 717,282,010

0 820,081,347

Share holders equity

61,290,814

71,235,347

16.225% Increase.

No. of shares

7,590,000

9,108,000

20% Increase.

Net profit after tax

10.000,980

12,298,643

23% Increase.

d. Product Lines: Habib bank limited offers product and service given as follows:

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Product and service for individual customers. Freedom Account Credit Cards Deposit Accounts Bancassurance Debit Card Mutual Funds Product and service for Business customers Corporate Banking Commercial Banking Global Treasury Investment Banking Islamic Banking Cash Management. e. Competitors Due to privatization of the banking system competition has increase rapidly. Following are the competitors of Habib Bank Limited in Pakistan. United bank limited Muslim commercial Bank limited Faysal Bank Askari Bank Bank of Punjab Bank Al-Falah Standard Charted Allied Bank Limited First woman Bank National Savings Prime Bank Picic commercial Bank

f. Brief Introduction of all departments. There are various departments working in all branches of Habib bank to facilitate the customer. Following are the banking department functioning in the HBL Main Branch Toba Tek Singh. 1. Account opening department 2. Cash Department 3. Credit department

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4. HR. Department 5. I.T department. 1. ACCOUNTS OPENING DEPARTMENT: The basic function of this department is to open new account and facilitate the customer for the account opening purpose. There following formalities observed to opening new account: FORMAL APPLICATION: Customer is filling Account Opening Form. This is the formal request by a customer to the bank to allow him to have and operate the account. Document requires for open a account as under. Copy of CNIC Service certificate of student card Utility bill Provisional receipt Know your customer.

2. CASH DEPARTMENT It is very sensitive and risky part of the bank. Very caution and competent personnel are needed for this job. Main function of the cash department is cash payment and cash receipt. I. Cash deposing Procedure: The customer fills the pay slip. Cashier receives the pay slip and cash. He count Cash and makes the detail of the noted at the back of the pay slip. Then he compares the detail of the notes at the back of the pay slip. Then he compares detail with the amount written on the slip and signs the pay slip. Then the credit entry is passed by serial no, account type, account number and amount. II.Cash Payment procedure: When the customer withdraws certain amount from his/her account, he brings cheque along with him. 3. CREDIT DEPARTMENT. The faction of this department is to lend money in the form of the clean advances against promissory notes, as well as secured advances against tangible and marketable securities, The bankers prefer such securities the do not run the risk general depreciation due to market fluctuations. Common securities for bankers advances are as under: Guarantees. Mortgage. Hypothecation Virtual university of Pakistan. 14

Pledge. Promissory notes. 4. Remittance Department Remittance department are sums of money sent in payment for against something. The remittance department is mainly concerned with this payment. It is divided into following: a. Inward remittance Inward remittance refer to payment in favor of the banks account holders inward remittance includes all cheque received for collection. b. Outward remittance Outward remittance are all payment made to other people on behalf of the account in the bank. Outward remittance can also be done form account holders who deposit cash in the bank and remittance tools are prepared for them. c. Demand Draft This draft is made for the customer. This mode of remittance is normally used form payment out of city beneficiaries. These are normally also drawn on banks near the beneficiarys residence. d. Pay order: Pay orders are mostly used when a customer wants to pay someone who is the same city as he used and who refers no cash payment for and service of goods that he /she sold. This remittance facility 9is providing to general public as whole. g. Comment on Organizational structure: From the above organization structure I conclude following recommendation There is horizontal and vertical style of the communication. Communication come top to bottom and bottom to top. There is the centralized decision making style in Habib Bank Limited of the Pakistan

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10.Plan you Internship Program. Brief Introduction of the Branch Where I Work: Habib Bank Limited Main Branch Toba Tek Sing. Starting and ending date of the Internship: 2nd December, 2010-26th January 2011. Name of the Department Where I got the training:

Repetition of department
Cash department Cash Department Advance Department. Clearing Department

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11. Training Program. Department I worked in Cash department The cash department is very sensitive department of the bank in the procedure of cash department I worked during the internship program following as: Cash Receipt: In this customer fill pay slip. In this I take the fill slip and cash from the customers. I accounted the cash and makes the detail of the notes at the back of the pay slip receive from the customers. Then I was compare the detail with the amount written on the slip and signs the slip then I credited the entry be serial No. account type, Account number and amount. After this I put the stamps of cash received on the payment slip. I was kept first portion for the bank record and other portion I was give to the customers. Cash Payment During the training program cash payment made by cheque. I see that the signature and amount of with drawl by the customers is written and pay to customers after checking the cheque. If the customers are illiterate then one thumb of the customer on front side and two thumb on the back side of the cheque of the customers. Demand draft is also used for cash payment during the training program. After the closing of the day I could not keep more than 30000000 cash the excess amount I send to main branch of the Habib bank limited. Bill collections In this part of the cash department I collected utility bills like gas, water, Sui gas, electricity and telephone bill. The timing of the collection of the utility bill was 9am to 5pm. Cash Remittance Department: In this department of the bank I sent cash and received the cash online. A transfer slip is filled by customers and I checked the transfer slip. After checking the transfer slip I send the cash online to relative customers. I also send payment through demand draft and pay order. Advance Department:

What tasks/activities did you perform in this department?


In this department lend money as advances against promissory notes, tangible asset and marketable securities. Car loan and home loan is providing by the organization to the public. Clearing Department:

As an internee were you allowed to clear cheques?


At the 2:30 P.M I go to the National Bank of the Pakistan and clearing cheque by given and receiving the cheque of the other banks. The Bank pays 12000 Rs per month to the National Bank of the Pakistan for this purpose.

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12. Ratio analysis Current Ratio Formula: Current Ratio=Current asset/ current liabilities Table: 2007 (Rs) 2008(Rs) 449,732024(w-1)/ 952,872,896(w-2)/ 321,503,402(w-4) 326,753,272 (w-5) =1.39:1 =2.91:1 Working-1

2009(Rs) 575,219,629(W-3)/ 370,340,966(w-4) =1.55:1

The values as per the audited annual reports and the values taken for this ratio DO NOT match, please verify the amounts. Cash and balances with treasury banks, and balances with other banks will be wholly included in the current assets. Deferred tax assets and operating fixed assets represents long term assets. You should read the Notes to the Financial Statements for the Lending to financial institutions, investments, other assets and advances in order to know whether these be included in the current or long-term assets. Bills payable, borrowings will be wholly included in the current liabilities. The sub-ordinated loans, other liabilities and deferred tax liability represent long term liabilities. You should read the Notes to the Financial Statements for the deposits and other accounts in order to know whether these be included in the current or long-term liabilities.
Current asset 2007 =Cash and balance with treasury banks +balance with other bank +lending to financial institution +short term investment +Advance =55361813+19558051+1628130+0+349311517+23872513 =449, 732024 Workint-2 Current asset 2008 =Cash and balance with treasury banks +balance with other bank +lending to financial institution +short term investment +Advance =56359367+32720391+6193787+0+422890691+435708660 =952,872,896 Working-3 Current asset 2009

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3.5 3 2.5 2 Series1 1.5 1 0.5 0 2007y 2008y 2009y

=Cash and balance with treasury banks +balance with other bank +lending to financial institution +Short term investment +Advance =79527191+29560309+5352873+396843+431829677+28552736 =575,219,629 Working 4 Current liabilities 2007 Bill payable borrowing from financial institution Deposit and other account =10041203+48121649+194696000+68644550 =321,503,402 Working 5 Current liabilities 2008 Bill payable borrowing from financial institution Deposit and other account =9781077+44022676+270210101+2739418 =326,753,272 Working 6 Current liabilities 2009 Bill payable borrowing from financial institution Deposit and other account =10041203+48121649+310366281+1811833 =370,340,966 Graphical representation of the above table: Interpretation: From the above graph there is increase current ratio from 2007 to 2008 and decrease in 2009.the current ratio is not give true picture but it is still helpful to creditor for analyzing. Working Capital ratio Formula: Working capital = current asset current liabilities Table: 2007 (Rs) 2008(Rs) 449,732024(w-1)952,872,896(w-2)321,503,402(w-4) 326,753,272 (w-5) =128,228,622 =626,119,624 Working-1

2009(Rs) 575,219,629(W-3)70,340,966(w-4) =504876663

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Current asset 2007 =Cash and balance with treasury banks +balance with other bank +lending to financial institution +investment +Advance =55361813+19558051+1628130+0+349311517+23872513 =449,732024 Workint-2 Current asset 2008 =Cash and balance with treasury banks +balance with other bank +lending to financial institution +investment +Advance =56359367+32720391+6193787+0+422890691+435708660 =952,872,896 Working-3 Current asset 2009 =Cash and balance with treasury banks +balance with other bank +lending to financial institution +investment +Advance =79527191+29560309+5352873+396843+431829677+28552736 =575,219,629 Working 4 Current liabilities 2007 Bill payable borrowing from financial institution Deposit and other account =10041203+48121649+194696000+68644550 =321,503,402 Working 5 Current liabilities 2008 Bill payable borrowing from financial institution Deposit and other account =9781077+44022676+270210101+2739418 =326,753,272 Working 6 Current liabilities 2009 Bill payable borrowing from financial institution Deposit and other account =10041203+48121649+310366281+1811833 =370,340,966 Graphical representation of the above table:

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700000000 600000000 500000000 400000000 Series1 300000000 200000000 100000000 0 2007y 2008y 2009y

Interpretation:

Interpretation is missing Acid-test ratio is missing b) Leverage Ratio


Time interest earned: Formula: Time Interest earned = profit before tax + interest expense/interest expense Table:

In Pakistan Rupees currency is available, so you are required to use the values given in Rupees not in Dollars.
EBIT = operating profit = Profit before taxation + Mark-up / return / interest expensed The second item of the Profit and Loss account that is the markup/return/interest expensed will be treated as interest expense in the denominator.

2007($) 211726+276851/290347 =1.68 Virtual university of Pakistan.

2008($) 188209+247151/301981 =1.44 21

2009($) 231307+267179/392,782 =1.29

Graphical representation of the above table:


1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2007y 2008y 2009y Series1

Interpretation: This ratio tells us number of the times of a firm can recover or meet particular financial obligation. From the above graph it is decreasing trend 2007-2009 of the time interest earned ratio. Year 2007 is better in interest coverage ratio as compared to 2008 and 2009.

Debt ratio Formula: Debt ratio=Total debt (liabilities)/total asset Table: 2007($) 2008($) 9643465/10578045=0.91 7,742,465/8514582=0.90

2009($) 8,806644/9,745,558=0.90

Graphical representation of the above table:

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2009y

2008y

Series1

2007y

0.895

0.9

0.905

0.91

Interpretation: This ratio is tells us financial leverage is extent to which a firm financed with debt. From the above graph it is decreasing trend 2007-2009 of the debt ratio. In 2007 it finance wit debt as compared to 2008 and 2009. Debt/Equity Ratio=Debt/Equity: ` Table: 2007($) 9643465/818,412 =11.87 2008($) 7,742,465/727,559 =10.64 2009($) 8, 806,644/845,609 =10.41

Graphical representation of the above table:

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2009y

2008y

Series1

2007y

9.5

10

10.5

11

11.5

12

Interpretation: The debt to equity ratio is simple re arranged of debt ratio greater debt greater risk for the firms shareholders. In 2007 shareholders risk is low as compare to 2008 and 2009. Total capitalization ratio: Formula: Total capitalization ratio=Long term debt/long term debt +shareholder equity Table: 2007($) 2008($) 2009($) 9643465/818,412 =11.87 7,742,465/727,559 =10.64 8, 806,644/845,609 =10.41

Graphical representation of the above table:


12 11.5 11 Series1 10.5 10 9.5 2007y 2008y 2009y

Interpretation: Virtual university of Pakistan. 24

The total capitalization ratio tells debt component of HBL is good and sound capital structure and it supports to operation and growth of company. c. Profitability ratio: Net profit margin Formula:

The first item of profit & loss is bank sales i.e. mark-up / return / interest earned.
Net profit margin=net profit /sale Table: 2007(Rs) 8041416/48342047 =16.63% 2008(Rs) 15855194/61157813 =16.35% 2009(Rs) 19485741/74751375 =16.45%

Graphical representation of the above table:

2009y

2008y

Series1

2007y

16.20%

16.30%

16.40%

16.50%

16.60%

16.70%

Interpretation: From the above graph it is decrease in the net profit margin from 2007 to 2008 net profit margin and increase in 2009. Above graph shows that in 2009 company is more efficient to convert its revenue to profit.

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Return on Asset: Formula: Net Profit before tax/Total Asset*100 Table: 2007($) 2008($) 211,726/10578045 188,209/8514582 =2% =2.21% Graphical representation of the above table:

2009($) 231,307/9,745,558 =2.37%

2009y

2008y

Series1

2007y

2%

2%

2%

2%

2%

2%

2%

Interpretation: From the above graph it is increase in Return on asset from 2007 to 2009.the company financing towards its operations is more efficient in 2009 as compared to previous year. Dupont Return on asset: Formula: Dupont return on asset=Profit after taxation/total asset*100 Table: 2007($) 2008($) 129,700/10,578,045*100 =1.22% 118,716/8,514,582*100 =1.39%

2009($) 145,992/9,745,558*100 =1.49%

Graphical representation of the above table:

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2009y

2008y

Series1

2007y

0.00%

0.50%

1.00%

1.50%

2.00%

Interpretation: From the above graph it is increase in DuPont Return on asset from 2007 to 2009 The above graph shows that company saves much after paying variable and operating cost is more in 2009 as compare to previous year. Operating Income Margin: Formula: Operating income margin=Operating profit/sale=Profit before taxation/Markup interest earned*100 Table: 2007($) 2008($) 2009($) 231,307/887,345*100 =26.06%

211,726/779,710*100 188,209/725981*100 =27.15% =25.92% Graphical representation of the above table:

2009y

2008y

Series1

2007y

25.00%

25.50%

26.00%

26.50%

27.00%

27.50%

Interpretation: Virtual university of Pakistan. 27

From the above graph it is decrease in the net profit margin from 2007 to 2008 Operating Income margin and increase in 2009. Return on operating Asset: Formula: Return on operating asset=Profit after taxation/operating asset*100 Table: 2007($) 2008($) 2009($) 129,700/1,427,452 (w-3) =9.09% 118,716/1,230,362 (w-2) =9.64% 145,992/1490516(w-1) =9.79%

Working-1 Calculation of 2007 operating asset =Cash and balance with other banks+balacee wit other bank operating asset. =892,932+315,452+219,068=1,427,452

Working-2
Calculation of 2008 operating asset =Cash and balance with other banks+balacee wit other bank operating asset. =669,021+388,411+172,930= 1,230,362 Working-3 Calculation of 2009 operating asset =Cash and balance with other banks+balacee wit other bank+-operating asset. =944,037+350,899+195,580=1490516 Graphical representation of the above table:
10 9.8 9.6 9.4 Series1 9.2 9 8.8 8.6 2007y 2008y 2009y

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Explanation: This ratio indicates actually asset required to run the business. From the above graph Return on operating asset increases from 2007 to 2009. Return on equity: Formula: Return on equity=Net profit/equity Table: 2007($) 2008($) 129,700/818,412 118,716/727,559 =15.84% =16.31% Graphical representation of the above table:

2009($) 145,992/845,609 =17.26%

2009y

2008y

Series1

2007y 15.00% 15.50% 16.00% 16.50% 17.00% 17.50%

Interpretation: This ratio tells us that internally business capacity of business to generate cash from the above graph it is increasing trend from 2007-2009 of the rerun on equity ratio. In the year 2009 more business capacity to generate cash as compared to previous year. . Gross profit margin Formula:

The third item of the Profit and Loss Account that is the net markup/interest income is considered as gross profit.
Gross profit margin ratio=Gross profit /sale=net markup/sale Table: 2007(Rs) 2008(Rs) 2009(Rs) 30340,551/48342047 =62.76% Virtual university of Pakistan. 35634241/61157813 =58.27% 29 41662839/74751375 =55.73%

Graphical representation of the above table:

64 62 60 58 56 54 52 2007y 2008y 2009y Series1

Interpretation: This ratio tells us how much company is efficient in converting gross profit. From the above table gross profit increase in 2007 decrease in 2008 and increase in 2009. In the year 2007 company is efficient to converting gross profit as compare to previous year. .

d) Activity Ratio
Total asset turn over Formula: Total asset turnover=Revenue/total asset Table 2007($) 2008($) 489,363/10578,045 423,000/8,514,582 =0.046 times =0.049 times Graphical representation of the above table:
0.051 0.05 0.049 0.048 0.047 0.046 0.045 0.044 2007y 2008y 2009y Series1

2009($) 494,564/9745,558 =0.050 times

Interpretation:

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From the above graph there is increase in total asset turnover ration from 2007 to 2009. In the 2009 turn over is low which show gross profit margin is high. Fixed asset turn over: Formula Fixed asset turnover=Sale/fix asset

Table 2007(Rs)

2008(Rs)

2009(Rs) 494,564/64,836,239(w-3) =0.0076 times

489,363/45,098053(w-1) 423,000/58,513,051(W-2) =0.010 times =0.0072 times W-1 2007-Fixed asset =Other asset+ operating fixed asset+ deferred tax asset =25396781+13582240+6119032 =45,098053 W-2 2008- fixed asset Other asset+ operating fixed asset+ deferred tax asset =33490506+14567933+10454612 =58,513,051 W- 4 2009-Fixed asset Other asset+ operating fixed asset+ deferred tax asset =40187710+16475939+8172590 =64,836,239 Graphical representation of the above table:
0.012 0.01 0.008 0.006 0.004 0.002 0 2007y 2008y 2009y

Series1

Interpretation: From the above graph there is increases in fixed asset turnover 2007 , in 2008 decrease ,in 2009 there is increase in fixed asset turnover. In the year 2007 company generate more revenue from fixed asset as compare to other years.

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e) Market Ratio
Dividend Per share Formula: Dividend per share=Total divided declare/no. Of share outstanding Table: Table 2007(Rs) 2008(Rs) 2009(Rs) 1380000/690,000 =2 2726620/690,000 =3.95 4173059/690,000 =6.04

Graphical representation of the above table


7 6 5 4 3 2 1 0 y2007 y2008 y2009 Series1

Interpretation: According to the above graph HBL dividend is more in 2009 as compared to previous years. Earning per share Formula: Net profit/no of share outstanding (paid up capital) Table: 2007(Rs) 2008(Rs) 8041416/690000=11.65 100000643/690000=14.50

2009(Rs) 12298643/690000=17.8

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Graphical representation of the above table

20 18 16 14 12 10 8 6 4 2 0 2007y 2008y 2009y

Series1

Interpretation: From the above table it is clear that EPS increases from 2007 to 2009.The market price of the sharer is high in 2009, so the company generates excellent profit in this year as compare to other year.

Pricing earning ration:


Formula Stock price per share/ Earning per share Table: 2007(Rs) 2008(Rs) 235/11.65=20.17 234/14.50=16.17

2009(Rs) 125.99/17.8=7.07

Graphical representation of the above table:


25 20 1 5 Series1 1 0 5 0 2007y 2008y 2009y

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Interpretaion: From the above table it is clear that price-earning ratio decreases from 2007 to 2009.

13.Future Prospects of the Organization: Habib Bank is going towards mobile banking but the problem is that a common client has no idea of its usage due to lack of marketing. I think that a proper marketing programmed must be launched for clients awareness. Habib Bank limited going to advancement of the society through the adoption of enlightened working practices, innovative new product and processes and spirit enterprise

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14. Conclusition: You should divide this portion into two parts. In the first part you should conclude based upon the Internship Program and in the second part you should provide the conclusion based on the Ratio Analysis such as regarding her profitability, leverage positions, etcetera.
HBL main leading Bank in Pakistan since 1947. It is the first commercial bank of Pakistan. In the all cities of the Pakistan it has branches. I analysis the ratio analysis increase, defensive but overall position of the bank is very strong position by analyzing the ratio analysis. I made swot analysis and observe recommendation which should follow the higher management of the HBL. I also found that this internship report will help in future to build up my career research oriented

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15. Recommendation:

In this portion you do NOT identify the problems or issues rather suggest the organization that how they can improve or remove the issues or problems. If you want to highlight problems or issues then you can do in the conclusions portion above. For example you should have mentioned in the conclusion portion that the current assets of the bank are less. In this portion you will suggest the bank that how they can increase the current assets.
The State Bank of Pakistan requires maintaining 10 billion equity but equity is low from this requirement. The higher management of the HBL should take necessary steps to increase the equity which fulfill the requirement of the HBL. By analyzing the ratio I found that organization adopt conservative policy. The organization should adopt conservative to modern liberalization financial policy. HBL is main leading bank in Pakistan. HBL can set more deposit from the public by offering such financial services which fulfill modern needs of the customers. HBL offline branches should be converted into online. I found that working capital of the company is declining. The higher management should maintain current asset which maintain strong working capital ratio. I found in ratio analysis equity ratio is decline. Higher management should take necessary steps to increase equity ratio. HBL can finance internationally through issuing ADR, debenture, bond etc. HBL working in foreign branches but higher management should expand its network.

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16.Reference & Source used.


I used Habib bank limited website form reference

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Annexes:
For the 2008 and 2009 of the ratio analysis following URL is used. http://www.hbl.com/downloads/pdf/annual/2009/financial-statements-holding.pdf For the 2007 of the ratio analysis following URL is used. http://www.hbl.com/downloads/pdf/annual/2007/holding/financialstatements-holding.pdf

http://www.kse.com.pk/

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