Introduction to HBL:

Habib Bank Limited commonly referred to as "HBL" and head-quartered in Habib Bank Plaza, Karachi, Pakistan, is the largest bank in Pakistan. The bank has a network of 1425 branches in Pakistan and 55 branches worldwide. It has a domestic market share of over 40%. It continues to dominate the commercial banking sector with a major market share in inward foreign remittances (55%) and loans to small industries, traders and farmers. Overseas, it has operations in the following countries: Afghanistan, Australia, Bahrain, Bangladesh, Belgium, Canada, China, France, Hong Kong, Iran, Kenya, Lebanon, Maldives, Nepal, Netherlands, Nigeria, Oman, Singapore, Sri Lanka, Turkey, AE, UK & USA.

Step 1: Define the Business and its Mission AND VISION:

Company Description:
HBL is a Banking Company, which is engaged in Commercial & Retail Banking and related services domestically and overseas.

Brand of HBL:
HBL says Our brand identity is the outward expression of what we stand for as an organization. This is summarized in our vision, mission and is supported by our values.

Vision of HBL:

Enabling people to advance with confidence and success

Mission statement of HBL:

To be recognized as the leading financial institution of Pakistan and a dynamic international bank in the emerging markets, providing our customers with a premium set of innovative products and services, and granting superior value to our stakeholders shareholders, customers and employees

Values of HBL:
HBLs values are the fundamental principles that define its culture and are brought to life in its attitudes and behavior. It is companys values that make its unique and unmistakable. Company values are defined below: Excellence Integrity Customer focus Meritocracy

Strategic Management process:

Strategic Management can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objective.

Step 2: Do External & Internal Analysis:

SWOT ANALYSIS
STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS ANALYSIS

STRENGTHS
HBL is considered to be a very sound bank in the financial circles. A bank, where the customers can safely keep their money as long as they want I am pointing some of the major strengths of the bank: Bank is financially strong and has a huge deposit reserve Its cost of funds is less as compared to many of its competitors Highly Professional Human Resource Department
Commitment Of Sponsors Efficiency Phenomenal Growth Vastly Experienced Management Foreign Trade is the focus of bank. It has become an ideal bank for the importers and exporters Crucial Location Of Branches Humble Management Image Building Activities Personnel of HBL are well trained and highly skilled. Majority of employees has many years of experience in banking sector and are an asset for the bank HBL has a wide network of branches at the ideal locations, catering the financial needs of its clients

WEAKNESSES
Perfection is only the claim of Allah Almighty. No other being living or dead can say this for itself. Similarly, HBL also has some shortcomings that need to be mentioned: HBL Limited Does Not Possess Foreign Network Most of the employees are overloaded with work Inefficient software (Bank Smart) No Advertising In Electronic Media It is a step behind in using new technology as compared to other banks Disproportionate Presence Of Old Staff In The Upper Management Hierarchy Skill Set Of Employees Is Not Up to The Mark As There Is No Job Rotation Less Efficient Computer And I. T. System Foreign Banks Still Are A Little More Prestigious There is uneven distribution of work and promotions are not very timely It is slow in the introduction of new services

OPPORTUNITIES
HBL has grown up its business with a very high pace and it has got tremendous popularity, even with in a very short span of time. There are many opportunities for the bank and by availing that it can stand amongst the top foreign banks.

Extension of local branch network Establishing foreign branch network

 Capitalizing on information technology Unexplored market of multinational corporations Growth in textile sector

THREATS
Following are main threats to the bank. Private sector banks Heavy reliability on only one market segment i.e. Textile. Network expansion by foreign banks If Pakistani banks (especially state owned banks), backed by huge network improve the service they give and their employee skill set Terrorist image of the country Inconsistency in government policies

Step 3: Redefine the Business and its Mission:

The SWOT analysis of The HBL signifies that its strengths overcome its weaknesses and its opportunities are more than its threats. This is a positive sign for any organization. So The HBL has not redefined its business & mission.

Step 4: Translate the Mission into Strategic Goals:

1. Providing our customers with a premium set of innovative products and services, 2. Granting superior value to our stakeholders shareholders, customers and employees

Step 5: Formulate the Strategy to achieve Strategic Goals:

Enabling people to advance with confidence and success FOLLOWING ARE THE GOALS AND OBJECTIVES OF HBL.
Containing customers Valuing employees Making teams Retaining Suppliers Making a close knit family of customers suppliers workers and partners Maximizing profit Giving Quality Doing ethical practices

Businesses
Retail Banking
Deposit Mobilization
Largest branch network in Pakistan

Urban - 703 branches 80% deposits and 94% advances

Rural - 734 branches 20% deposits and 6% advances Largest customer deposit base: 5mn+

Low cost/stable deposits

48% of total deposits

Agriculture Financing
Serves rural customer needs for agricultural inputs, storage facilities and Mechanization. Provides short and medium term loans Disbursement exceeds US$0.2bn during peak season Dominant bank in this segment: 700+ rural branches

Islamic Banking
Exclusive Islamic Banking branch network for both assets and liabilities.

Corporate Banking
Serves large corporate customers: multinationals, local private sector corporate and state owned entities Largest Corporate Banking in Pakistan Loan portfolio US$ 4.5 bn, market share corporate loans of 15% with participation in more than 80% of all major transactions. 10 branches with over 500 customers Specializes in working capital, trade, structured project finance & government commodity operations.

Investment Banking
Corporate M&A Advisory, Debt and Equity Capital Markets, Private Placements, Leverage Finance and Privatization Advisory Established itself as a premier player in a short time Handled over 80% of all major transactions taking place in Pakistan.

Commercial Banking
Middle Market (customers with annual revenue of more than US$ 5 mn) Leading position in a competitive market with US$ 350 mn portfolio

18 branches, 1500 customers

Consumer Banking
Personal Loans, Auto Finance, Consumer Durables, Housing Finance and Balance Transfer Facility VISA Debit Card, Credit Card & CarToCar launched in 2005, 2007 & 2008 respectively.

Treasury
Money market, Forex and Primary dealer in government paper New products launched: Derivatives (Interest Rate Swaps, FRAs, etc.)

Domestic Subsidiaries
Asset Management

Launched Income, Stock Market and Multi Assets Funds Habib Currency Exchange (Pvt.) Ltd.

Sale/purchase of foreign currency & remittances First Habib Modaraba

Leasing business with annual growth of over 15%

Step 6and7: Strategy Formulation and Implementation:

Growth Strategy.
Maintaining a mix of short & long term deposits to minimize the cost of funds

Asset Quality

 Stringent Risk Management Unified IT System Intensive Training and Professional Recruitment

Focus
Re-organization of the Consumer and Retail Banking Businesses IT system enhancement Product offering enhancement Advancement of operations in urban areas

Strategic planning of HBL:

HBL uses two types of Corporate-level strategies Diversification strategy Geographic expansion strategy

Diversification Strategy: It implies that HBL will expand by adding new service lines.
With the passage of intervals HBL is used to introduce new banking services.

Geographic expansion strategy: It takes the company abroad. Acting upon this strategy
HBL has been expanded abroad. The abroad branches are mentioned above in introduction section. HBL is planning to expand its business and branches in more countries. Business level strategies used by HBL are Cost leadership Differentiation Focus

Cost leadership: HBL aim is to become low-cost leader in banking sectors that is why HBL
is providing effective services in low cost than other banks in Pakistan.

Differentiation: HBLs strategy is to provide unique banking services to its customers in

banking sectors to make itself valuable for its customers.

Focus: HBL provides banking services to its customer in that way that customer cannot get that
services from other competitors.

Functional Strategy:
HBL identifies basic courses of action that each department pursues in order to get basic goals and objectives of HBL. Harmony of departments towards HBLs single goal makes it unique in the competitive market.

CRITICAL ANALYSIS:
HBLs focus is on attracting, developing and retaining the best in the business by offering market driven compensation and benefits packages. HBLs compensation and benefits strategy combines the need to maintain a high performance culture along with market competitiveness. Annual benchmarking exercises are conducted to stay abreast with industry standards. According to performance each employ gets benefits and compensation. Time does not matter only performance matters at HBL.