Department overview

CIBD (Corporate & Investment Banking Division), this was the department which attracted me the most and due to my interest in finance I started penetrating in CIBD. A very brief overview of this department is that it tends to focus on corporate lending and somewhat syndications also; indeed it covers the lending modes in corporate sector. Hierarchy of this specific department is as under:

• Relationship Officer

• Relationship Manager / AVP I • Relationship Manager / AVP II • Regional Head / SVP

• Zone Head / SEVP • Country Head

This department is totally dependent on some other departments for the sake of client’s verification and legal provisions. The lending case is started at the lower level i.e. R.O or R.M. The case is then forwarded to Regional level and then Head office level for final approval. The final decision is held to the discretion of Country Head. Currently this department is led by Mr. Khurshid Zafar who occupies his office in Arif Habib Centre (H.O).

Documents to be acquired from prospective client while request of lending is received:

Proprietor Ship/Partnership Companies

• Quotation (s) Invoices(s)

• Bank Certificate for Proprietorship or Partnership deed/ • Copy of NIC(s) of Proprietorship/Partnership deed/Directors. • Audited financial statements for three years along with cash flows

(If Applicable).

• Bank Statement for the last six months.

• Copy of NTN certificate/Assessment Order/Tax returns/ • Company profile

• Bio-data of the directors along with NIC of directors • Details of finance requirement

• Request letter

• Names of financial institutions dealing with the company along with addresses • Borrowers Basic Fact Sheet (BBFS)

• Feasibility/projections

Private/public limited Companies

• Certificate of Incorporation

• Memorandum and Articles of Association • Form-29

• Form-A

• Bio-data of the directors along with NIC of directors • Tax Return Copies of directors

• NTN of the company • Company profile

• Audited accounts of the company for the last three years • Audited accounts of group companies

• Details of finance requirement • Justification/Request letter

• Names of financial institutions dealing with the company along with addresses

6 Identification of a main problem

The main problems that I identified during my internship period were:

• The lack of awareness about exact job descriptions among employees

• The inability of employees to approach higher officials easily (lower level of centralization)

• Undefined job tasks in CIBD and Operations department • Lack of IT specialist at branch level

• Lack of amenity and common room

• Incentives like study scholarships, performance awards etc • Unhealthy product line

7 Findings

Now coming towards the most crucial part of internship report, the findings limited to my opinion are:

• AHBL is backed by high level corporate giants

• AHBL to some extent enjoyed the encashment of parent company’s market leadership

• Top management is highly qualified and as per my assessment the most highly paid individuals of private commercial banks in Pakistan.

• AHBL has failed to penetrate in market due to: o No consumer products (consumer banking) o Continuous expansion

o Economic instability

o SBP’s regulatory requirements

• In recent findings, due to suspect of fulfilling the capital requirement, AHBL is in deal of being acquired by Lawai led consortium to take more than 51% shareholding and also Mybank to be now operated under AHBL line.

8 Conclusions and Recommendations Some of the suggestions in this respect were

• The introduction of compulsory weekly meeting of all staff at branch level to discuss the discrepancies in every regard

• Introducing job specific training to employees

• Adhering to the criteria laid out by the HR department for job advancements • Employee training sessions on regional level led by Regional Heads to take

insight of their employees

• There should be a prayer room developed in all branches as many employees want to pray, but do not have the proper place to do it.

• There are some departments in the bank that do not have enough employees, while some have more than needed like CIBD

• Their should be a common room, so as to give employees a relaxing environment when they have a break

• New and innovative products should be introduced by AHBL, like other bank such as Citibank and Standard Chartered Bank develops for their customer. For this purpose, special teams should be developed that include professional from all departments of the banks to come with ideas. This process will increase the number of ideas generated and even produce innovative products for the bank that might give them the edge

• Incentive schemes should be developed for the employees that can help motivate them, which might include:

o Scholarship programs for all employees for further study. o Introducing employee awards at branch and regional levels. o Job rotation programs to enhance the skills of employees.

• A proper IT department should be established in all branches, with professional having the knowledge to maintain a secured connection with other banks. Also scheduled backups of data should be done with in the bank.

9 Appendix Web References • www.arifhabibbank.com • www.sbp.org.pk • www.brecorder.com • www.garp.com • www.dailytimes.com.pk • www.nation.com.pk • www.bmacapital.com • www.ibp.com.pk • www.pba.com.pk • www.research.bmacapital.com • www.nytimes.com • www.investopedia.com

• www.arifhabibltd.com.pk Documental References

• Annual Report 2006 (AHBL) • Annual Report 2007 (AHBL) • Annual Report 2008 (AHBL) • Quarterly Report 2009 (AHBL) • Annual Report 2008 (Askari Bank) • Corporate Profile 2009 (Askari Bank) • Annual Report 2008 (Faysal Bank) • Annual Report 2008 (Bank Al-Habib) • Annual Report 2008 (KASB Bank) • Annual Report 2008 (Atlas Bank)