Post Privatization Study of Habib Bank Limited

Abstract

The researchers have focused on the privatization of HBL as a research paper. In the report, privatization process of government owned entities is discussed in detail. The major consideration in privatizing government corporations was to reduce fiscal deficit, increase efficiency of privatized units, and foster competition and broad basing of equity capital. Thereafter, the researchers' have discussed the privatization process of HBL including a brief note on history of HBL. HBL was established in 1959 as a private sector bank .Thereafter, the bank was nationalized in political involvement and imprudent policies and practices adopted by the bank management. Habib Bank Ltd operated under state ownership between 1974-2004. After privatization in 2004, 51 percent of the Bank's shares were purchased by the Aga Khan Fund for Economic Development, an agency of the Aga Khan Development Network. Findings of the researchers revealed that after privatization performance of HBL has improved in all areas of operations, especially improvement was noticed in financial performance, increased management and employee satisfaction levels, high employment opportunities and better customer service resulting into increased customer base.