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Internship Report on UBL (284)

Supervised By: Mr. Anees Khattak

Prepared By: Muhammad Adnan

Reg # fa09-mba-22

Mailing Add: H. # BXII/133 Near Power House,

Attock City

Mob # 0313-5414925

Tel: 057-2603458

E-mail [email protected]

Department of Management Sciences

COMSATS Institute Information Technology

Attock Campus

www.vustudents.ning.com 2

http://www.vustudents.ning.com/

mailto:[email protected]

DEDICATION

“I dedicate this work of mine to

my Teachers, My Parents and to

all My Friends, who truly help and

guide me in completing this

project. “



ACKNOWLEDGEMENT

First of all, I thank my respected teachers for providing me

comprehensive knowledge about Commerce Courses and

also for providing me the opportunity to complete my

Internship Program in UBL to enhance my practical

knowledge about banking sector of Pakistan. I am also

indebted to the followings because without their help, I

would not be able to achieve this practical knowledge.

PREFACE



Master of Business Administration (MBA) is a program in which we

studied about business. In Pakistan the banking sector is at the maturity

stage and banking sectors are the best institutes in which we are easily

understand the practical experience. MBA gives us an opportunity to

touch the practical experience about business as the internship. The

Internship program is an important part to give students an opportunity to

have experience of practical field. Unless and until the students

experience the novelty of practical work, their knowledge of what they

study in theoretical courses remains incomplete. The most important

point in an Internship program is that the student should spend their time

in a true manner and with the spirit to learn practical orientation of

theoretical study framework.

This Internship Report is on my Six weeks practical training at (UBL)

UNITED BANK LIMITED ATTOCK CITY. In this Internship Report

I have tried to give details about the United Bank Limited, working and

the functions of different departments of the bank.

MUHAMMAD ADNAN

CONTENTS

1. Executive Summary………………………………………………………. 8



2. Introduction to the Report………………………………………………… 9Purpose of Report ………………………………………………………… 9Scope of Study ……………………………………………………...…….. 9Limitations of Study ………………………………………………….……. 10Methodology of Study ……………………………………………….……. 10

3. Objective of Studying the Organization…………………………………. 114. History of Banking ……………………………………………...……...….. 125. Commercial Banking in Pakistan ………………………………….…...….156. Overview of the Organization

History ………………………………………………………………………. 17Nature of the Organization …………………………………………...…… 19Business Volume ……………………………………………………….….. 19Number of Employees ………………………………………………….….. 20Product Line …………………………………………………………….…… 20SWOT Analysis ……………………………………………………………… 21PEST Analysis ……………………………………………………………….. 24Business Plans ………………………………………………………....…… 27

7. Organizational structure7.1 Main offices ……………………………………………………….….. 307.2 Organization Hierarchy ……………………………………….…….. 317.3 Comments on the organizational structure ………………….……. 357.4 Learning as an Internee from the Management Side ………….… 40

8. Structure of the Department/s you have worked in8.1 Number of employees working in the Department ……………… 438.2 Product lines ………………………………………………….……… 438.3 Departmental operations …………………………………………… 48

9. Functions of the Department9.1 Job/Work/Tasks system of the organization ……………………… 789.2 Decision-making environment ……………………………………… 78

10. Critical analysis of the theoretical concepts relating to practical experiences i.e. relate the theoretical concepts with your practical experience during your Internship with the Department10.1 Common-size analysis of consolidated balance sheet ………… 7910.2 Common-size analysis of consolidated Income Statement ….… 8010.3 Ratio Analysis …………………………………………………….…. 8210.4 Qualitative Analysis ……………………………………………….… 8610.5 Future prospects of the organization/Recommendations for future

learning ……………………………………………………………..… 88

11. Short-falls/weaknesses of the Department ………………………….… 8912. Conclusions …………………………………………………………..…… 9013. Recommendations for improvement ………………………………….… 91



14. Bibliography ………………… …………………………………………..… 9415. Annexes …………………………………………………………………… 95



EXECUTIVE SUMMARY

This is an internship report regarding the different products of UBL. It starts with an

introduction about Banking followed by the introduction of UBL. It gives a briefing

about all the financial products of UBL.

This report also includes the different features of these products. All the Services

provided by UBL has also been discussed and explained along with the strength and

weaknesses of the organization.

This report shows and internal architecture of the working of the UBL Business. It

gives a detail about the supporting department that has helped the business in their daily

working.

Also it discusses the objectives, policies of the organization. There are also some

suggestions/recommendations for UBL.



INTRODUCTION OF REPORT:

Students of MBA studying courses of Master degree in Business Administration are

required to undergo an internship program of Six Weeks duration. This is an essential

academic requirement. The internship is followed by comprehensive report writing,

required to submit to the supervisor of COMSATS Institute of Information Technology

Attock Campus. I did my internship in United Bank Limited Attock City Branch (284).

Purpose of Report:

The purpose of the study is to work in real life situation and learn banking practice

by doing. In this context its objectives are:

1. To analyze banking operations i.e. operational analysis, financial analysis.

2. To develop concrete and feasible recommendations.

3. To improve report writing skills.

Scope of Study;

The study is confined to banking operations. An attempt, along with all its

limitations, to collect financial data and general statistics of the bank has been made.

Keeping in view the purpose of the study, which is to make an acquaintance with

practical doings in the bank, this seems a comprehensive effort.



Limitation of Study:

It is to admit that the study attempts only those aspects, which are closely relevant

to the purpose of the study. Facts and figures, which otherwise might be equally

important, but not having a direct bearing on the conclusions arrived at this study, have

been ignored.

Methodology of Study:

Both primary and secondary data were used in compilation of the report.

Methodological tools used were:

i. Primary Data:

Personal Observations.

Discussion with Bank Personnel.

ii. Secondary Data:

Brochures/ Manuals of the bank.

Annual Report

Bank internship reports on UBL available in library.

Journals, newspapers and books.

Internet.



OBJECTIVE OF STUDYING ORGANIZATION:

Organizational studies, organizational behavior, and organizational theory is the

systematic study and careful application of knowledge about how people - as individuals

and as groups - act within organizations. Whenever people interact in organizations,

many factors come into play.

The purpose of the study is to work in real life situation and learn banking practice by

doing. In this context its objectives is to analyze banking operations i.e. operational

analysis, financial analysis and doing practical work in banking sector by applying

theoretical concepts learned during educational period.



HISTORY OF BANKING

“Bank is a pipeline through which currency moves into and out of circulation.”

Bank accepts deposits and repays cash to its customers on their demand. The Bank

borrows money at a lesser rate of interest and lends it to the borrowers at a higher rate. It

is thus a profit-lending concern. Bank cannot lend all the money that has been deposited

with it. It has to keep a certain portion of the total deposits in cash with them in order to

meet the cash requirements of the individuals and business concern.

Banking History

Word Bank is said to be derived from the words “Bancus” or “Banque”which

means bench other authorities hold the opinion that the word bank is derived from the

German word “Back” which means ‘joint stock fund’. The history of banking is traced to

as early as 2000 BC. The priests in Greece used to keep money and valuables of the

people in temples. These priests thus acted as financial agents. The origin of banking is

also traced to early goldsmiths. They used to keep strong safes for storing the money and

valuables of the people. The persons who had surplus money found it safe and convenient

to deposit their valuables with them. The FIRST STAGE in the development of modern

banking, thus, was the accepting of deposits of cash from those persons who had surplus

money with them.

The goldsmiths used to issue receipts for the money deposited with them. These

receipts began to pass from hand to hand in settlement of transactions because people had

confidence in the integrity and solvency of goldsmiths. When it was found that these

receipts were drawn in such a way that it entitles any holder to claim the specified


1 Introduction To Banking


amount of money from goldsmiths. A depositor who is to make the payments may now

get the money in cash from goldsmiths or pay over the receipt to the creditor. These

receipts were the earlier bank notes. The SECOND STAGE in development of banking

thus was the issue of bank notes.

The goldsmiths soon discovered that all the people who had deposited money with

them did not come to withdraw their funds in cash. They found that only a few persons

presented the receipt for encashment during a given period of time. They also found that

most of the money deposited with was lying idle. At the same time, they found that they

were being constantly requested for loan on good security. They thought it profitable to

lend at least some of the money deposited with them too the needy persons. This proved

quite a profitable business for the goldsmiths. They instead of charging interest from the

depositors began to give them interest on the money deposited with them. This was the

THIRD STAGE, in the development of banking.

By experience the banks came to know that they could keep a small proportion of

the total deposits for meeting the demands of customers for cash and the rest they could

easily lend. They allowed the depositors to draw over and above the money actually

standing to their credit. In Economics terminology we can say that they allowed the

overdraft facilities to their depositors. This was the FOURTH STAGE, in development

of banking.

When every bank issues receipts and most of them allowed the overdraft facilities,

there was then too much confusion in the banking system. The banks in order to earn

profits could not keep adequate reserves for meeting the demands of the customers for



cash. The failures on the part of the bankers to return money caused widespread distress

among the peoples.

In order to create confidence among the people, steps were taken to regulate the

banking organization. A conference was held in Nuremberg in 1548. It was decided that a

bank should be set up by the state, which should streamline the banking organization and

technique. The first central bank was formed in Geneva in 1578. Bank of England was

established in 1694. The responsibility of issuing of notes is now entrusted to a central

bank of each country.



COMMERCIAL BANKING IN PAKISTAN:

At the time of partition total numbers of Banks were 38 only. Out of these Banks

the Pakistani Banks were only 2 , Indian Banks 29 & Exchange Banks were 7. The total

of deposits of Pakistani Banks was Rs.880 Million. & advances were Rs: 198 Million.

According to banking companies ordinance Banks are the companies, which transacts the

business of Banking in Pakistan.

Commercial Banks have constituted the most important [part of the intuitional

credit in the economy of Pakistan. Being the largest source of credits, Banking Industry is

a pivot of whole the economic activities in Pakistan. Section 37(2A) of State Bank of

Pakistan Act 1965 lays down that the Banks must have paid-up capital & reserve of not

less then Rs: 5 Lac & fulfilling certain other requirements for declaring as “Scheduled

Bank”.

At the time of independence Bank services was badly affected. But with the passage

of time these are improving. The government of Pakistan nationalized all Banks in early

1974. This act was done to minimize control of few hands over banking. But this step

was proved e futile for the Banking in Pakistan. So the Govt. had to revise its decision

in1990. Two Banks (Allied Bank Of Pakistan Limited & Muslim commercial Bank Of

Pakistan Limited have been denationalized. Since then Banks were working well. Now

slogan of the Banks is to serve their customers in the best possible manner.

Professor Berton:

“Banks are the guardian & distributor of money “.

Similarly we can say that it is a pipeline thorough which currency moves into &



outside the circle. Banks accept deposited of money and repay it on demand. Bank

borrows money at lesser rate of interest & lends it at higher rate of interest. In this way

Banks earn money. Bank do not lend all money they collect, they keep certain portion of

it as reserve to meet the uncertain demand of the customer.



OVERVIEW OF THE ORGANIZATION:

History of UBL

The decision to establish UBL was taken in June 1959 and the company was

registered on July 24, 1959. United Bank Limited started the operations on 7 November

1959 with its first branch namely McLeod Road now I.I Chunrigar Road at Karachi. On

9th November 1959 the Gazette of Pakistan notified and included UBL in its list of

scheduled banks operating in Pakistan. The first president of the UBL was Mr. I. I.

Chundrigar. Most of the branches of Union Bank Ltd. were merged into UBL to work as

UBL’s subsidiary .The head office was at Dhaka.

With its shortest span of time UBL emerged as dynamic and large international

organization. In 1969 the Management of Union Bank Ltd. Incorporated in former east

Pakistan, was handed over to UBL, which was later emerged with UBL in early

seventies.

The Bank continued its operations as private banking company until 31st December

1973 when it was nationalized, in the large nationalization process in the government of

Zulfiqar Ali Bhutto, along with other banks operating in the country and other two banks

namely Pak Bank of former East Pakistan and Commerce Bank Ltd. Were merged with

UBL.

A Bank, like the society it serves should be dynamic as banking is about people

customers with their needs and opportunities and staff with skills, experience and



resources. UBL has shown dynamism since its inception. There have been many changes

in the structure, functions and the services provided. These changes reflect the changing

requirements of our developing economy as a whole and those of Industry, Commerce

and private Individuals.

On October 19th 2002, biggest event occurred in the history of UBL. As UBL was

privatize. The Government handed over the management of UBL, the third largest bank

of the country to the successful bidder – Consortium of Abu Dhabi Group (UAE) and

Bestway Holding Ltd. (UK). The sales agreement for the transfer of 51% shares was

signed by Privatization Minister Altaf M. Saleem and Bestway Holding, Sheikh Nahayan

Mubarak Al Nahayan at a ceremony. This event was declared as a “New Journey for

UBL”.

On May 8th 2004, Atif Bukhari took over the charges as new Chief Executive

Officer of UBL from Amar Zafar Khan, who served UBL for more than seven years.

UBL officially announced the appointment of Atif Bukhari as its CEO. Bukhari was

previously Senior Executive Vice President (SEVP) and Group Head, Corporate and

Investment Division of Habib Bank Ltd. He was also a member of the HBL Management

Committee.

In the view of highly impressive growth and development achieved during its 46

years of experience, UBL has come to be accepted as one of the most progressive and

dynamic components of the banking industry in Pakistan.



Nature of the Organization:

The UBL is under the ownership of two very strong (financially) group (The Abu

Dhabi Group & The Best way Group) and The Deputy Chairman of the UBL is Sir

Mohammad Anwar Pervaiz who is the leading role of Best way Group. So UBL is acted

as a centralized bank.

In 1986, the organizational structure of domestic operations of the bank was

reformed and decentralized on the basis of provinces. As a result provincial headquarters

were established at Karachi, Lahore, Peshawar and Quetta in order to meet the needs of

sanctioning loans and other facilities to the trade, industry and agriculture of each

province. Azad Kashmir was serrated from NWFP and made separate region.

UBL is a commercial bank. Commercial Banks have constituted the most

important [part of the intuitional credit in the economy of Pakistan. Being the largest

source of credits, Banking Industry is a pivot of whole the economic activities in

Pakistan.

Business Volume:

Number of Branches:

UBL has a large network of branches, which extends to the remotest areas of the

country. In December 1983, there were 1623 branches whereas in 1974 it had only 1238

branches and in October 2003 these figures show total number of 1007 branches UBL has

been very active in increasing its overseas branches network. The first foreign branches

were established in London in 1963. Now UBL has branches in Bahrain, Qatar,

Saudi Arabia, United Arab Emirates, Yemen Arab Republic, UK Switzerland, Egypt,



Oman and The United States. These branches are playing a significant role in channeling

home remittances and foreign trade of Pakistan.

Subsidiaries:

UBL has four subsidiaries, namely:

United National Bank Limited (UNB), UK

United Bank AG (Zurich), Switzerland

Number of Employees:

The number of employees with their designations working in UBL 284 branch are

listed below:

Mr. Mukhtar Hussain (Branch Manager)

Mr. Abid Farooqi (Customer Service Manager)

Mr. Irshad Farooqi (Supervisor Funds Transfer)

Mr. Ehtesham Shabir (Customer Service Representative)

Mr. Iqbal Khattak (Chief Teller)

Ms. Sumaira Naeem (Universal Teller)

Product Line:

UBL, where you come first

Consumer Banking

UBL Address

UBL BusinessLine

UBL CashLine



UBL Credit Cards

UBL Drive

UBL Money

Commercial Banking

Agriculture Products

Small Business Schemes

Investment and Saving Accounts

UBL Basic Banking Account

UBL Business Partner (Current Account)

PLS UniSaver

PLS UniSaver Plus

UBL Rupee Transaction Account (PLS Saving)

UBL UniFlex

eTransaction (Current Account)

Complementary Services

Insurance Certificate

UBL Net banking

UBL e-statement

SWOT Analysis:

SWOT is useful tool for providing a framework for analysis of an organization.

SWOT stands for Strengths, Weaknesses, Opportunities and Threats. It is a common

approach to make assessments in terms of internal and external environment of the



organization, and to formulate strategies analyzing its internal strengths and weaknesses,

external opportunities and threats, coming up is the SWOT analysis for the UBL.

Strengths:

It is one of the largest private banks with a deposit base of Rs. 94883/- millions

showing constant growth over the period.

It has a well-knitted branch networking system that efficiently covers both the

domestic and international markets.

It is involved in both corporate and retail banking.

Advances investment of the bank shows a constant growth pattern. The current

year’s growth rate is 32%.

The bank is owned by parties of financial repute and credit worthiness like, SBP

with 48.69% interest, Best Way group and Abu Dubai group with 25.50% of interest

each. Others are GOP, NBP Trustee Department, State Life Insurance Corporation etc.

Weaknesses:

Accumulated losses pushed the bank to cut down its promotional activities in

order to reduce expenses for last few years.

During the nationalization life span of the bank political lords used influence in

bank business and selection of employee and thus adversely affected the bank’s

efficiency and effectiveness.

Administrative expenses are 51% of the mark up revenue.



Promotions are carried out on annual basis ignoring the importance of capabilities

and performance outputs.

Opportunities:

Growing policies of the GOP on business and economic sectors provide UBL an

opportunity to efficiently meet with the business people requirements of instant cash

facilities e.g. the government intentions of developing housing and agriculture sectors.

Government is taking very bold steps to promote IT in Pakistan UBL has an

opportunity to improve in IT stock exchange is very volatile and takes immediate effect

so in times of crises conservative investors turns to saving deposits.

UBL is surrounded by many competitors it has an opportunity to aggressive

marketing to increase its business.

Increase the product range to meet the broader range of customers’ needs.

Threats:

Threats are also external factors in the environment, which are not in the favor of

company, which can seriously hamper the company’s ability to serve its customers.

Expansion of new commercial banks like ASKARI bank, UNION bank and etc..

And their better performance may cause loss of market shares of UBL.

According to World Bank report the Pakistan has become “over banked”

economy with cut throat competition for deposits in the industry the battle is on for the

market shares. The customers have emerged as the main Beneficiaries of the competition.

Now they are getting more personalized services and innovative product.



Along with the growth in size, the banks are now incorporating innovative

approaches to their traditional commercial banking operations, keeping in the view the

changing demand of the time. UBL face problem.

The political influences affect the performance of bank very badly. Most of the

loans become bad dad debits due to political pressure

No stable government in Pakistan, Government policies change with the change

of government.

The concept of evening and Saturday banking, telephonic and online banking,

ATM’s and credit cards are direct result of the intensive competition. But UBL is behind

the above-mentioned services.

Freezing of foreign currency account by the government of Pakistan is also a fear

for the bank.

PEST Analysis:

What is PEST Analysis?

It is very important that an organization considers its environment before

beginning the marketing process. In fact, environmental analysis should be continuous

and feed all aspects of planning.

The organization's marketing environment is made up of:

1. The internal environment e.g. staff (or internal customers), office technology, wages

and finance, etc.



2. The micro-environment e.g. our external customers, agents and distributors, suppliers,

our competitors, etc.

3. The macro-environment e.g. Political (and legal) forces, Economic forces,

Sociocultural forces, and Technological forces. These are known as PEST factors.

Political Factors.

The political arena has a huge influence upon the regulation of businesses, and the

spending power of consumers and other businesses. You must consider issues such as:

1. How stable is the political environment?

2. Will government policy influence laws that regulate or tax your business?

3. What is the government's position on marketing ethics?

4. What is the government's policy on the economy?



5. Does the government have a view on culture and religion?

6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or

others?

Economic Factors.

Marketers need to consider the state of a trading economy in the short and long-

terms. This is especially true when planning for international marketing. You need to

look at:

1. Interest rates.

2. The level of inflation Employment level per capita.

3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and

so on.

Sociocultural Factors.

The social and cultural influences on business vary from country to country. It is

very important that such factors are considered. Factors include:

1. What is the dominant religion?

2. What are attitudes to foreign products and services?

3. Does language impact upon the diffusion of products onto markets?



4. How much time do consumers have for leisure?

5. What are the roles of men and women within society?

6. How long are the population living? Are the older generations wealthy?

7. Do the population have a strong/weak opinion on green issues?

Technological Factors.

Technology is vital for competitive advantage, and is a major driver of

globalization. Consider the following points:

1. Does technology allow for products and services to be made more cheaply and to a

better standard of quality?

2. Do the technologies offer consumers and businesses more innovative products and

services such as Internet banking, new generation mobile telephones, etc?

3. How is distribution changed by new technologies e.g. books via the Internet, flight

tickets, auctions, etc?

4. Does technology offer companies a new way to communicate with consumers e.g.

banners, Customer Relationship Management (CRM), etc

Business Plans:

UBL expects its strong customer focus to drive the bank’s future business strategy.

On the domestic side bank has already launched its consumer banking business.



Increased investment is targeted in developing Human Resources; Infrastructure and

internal system support the aggressive consumer initiative and explorations of new

avenue generation. The first step under this initiative is the launch of the bank’s ATM /

Debit Card.. Furthermore UBL has plans to introduce a full suite of innovative consumer

finance products designed to capture a significant share of the local consumer financing

market and tap into the current growth in demand of such financing.

Personalized Service and Dynamic Approach

In order to meet its goals and capture the market share the Bank employed

professional and skillful approach to the management, which took a series of successive

measures to educate the people of Pakistan banking and saving minded. Various drives

for the mobilization of saving and other accounts were initiative. The knowledge of

customer’s business market research and business planning, visits to customer at their

door steps, development of personalized relational ship with business community,

fixation of seasonal business targets and follow-ups to achieve these goals attained

prominence. Flexibility, delegation of authority to the lowest possible level and

encouragement by initiative were the key factors, with helped the bank, to achieve the

objectives.

Ready for 21st Century

UBL has stepped into the 21st century with confidence. Know that the bank has

been privatized and 51% share have been purchased by investors i.e. The Best Ways

Group UK and Abu Dhabi consortium electing H.H Sheikh Nahayan Al Mubarak as



Chairman UBL. UBL has geared itself to provide services, which the customers in

modern banking expect from the bank.

The bank has also planned to play its dynamic role in the overall development of

the country. It is now well equipped with latest technologies and professional experience

to face the future with determination and confidence and with its high aims and sense of

direction to serve the nation with zeal and devotion.



ORGANIZATIONAL STRUCTURE:

Main Offices:

Main offices of UBL in Pakistan are listed below:

Islamabad

Karachi

Hyderabad

Lahore

Multan

Faisalabad

Sargodha

Sahiwal

Jehlum

Gujranwala

Peshawar

Mardan

Quetta

Azad Kashmir



MANAGEMENT OF UBL:

Senior Management of UBL


Sheikh Nahyan Mabarak Nahayan chairman

Sir Mohammad Anwar Pervez Deputy Chairman

Amar Zafar Khan President

M.A Manna Deputy CEO

Nauman Hussain

Director Operations & Utilities Mansoor M. Khan

Head Corporate Banking Group

Shaharyar Ahmed Head Investment Banking

group Shahid Waqar Mehmood Head Commercial bank

Risha Moheyuddin

Global Treasurer

Khalid Munawar-ud-din

Head Credit Policy Supervision

Muhammad Ejazuddin Audit Chief

Mehboob A.Khan

Aman Aziz Siddique

Head International Operations (Dubai)

Rukhasana Asghar Global Head Human

Resources

Ali sameer Chief SAM (domestic)

Ameer Karachiwala Chief financial Office/HCA


FUNCTION HIERARCHY:

Organizational Hierarchy of UBL


Chairman

Deputy Chairman

Board of Directors

Executive Committee

Managing Director

SEVP

EVP

VP

Officer Grade-I

Non Clerical

Staff

Clerical Staff Officer

Grade-II

Officer

Grade-III


Organization Chart at Attock City Branch:


Branch Manager orArea Operational Manager

Accounts & CustomerService

Cash &Clearing

Bills &Remittances


UBL SETUP


BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

Treasury &CapitalMarket

CorporateBanking

InvestmentGroup

Consumer Banking

Human Resource

Mgt.

FinanceDepartment

MarketingDepartment

ITDepartment

Audit&

Inspection

Service&

Quality

AgriLoans

ComercialBanking


BOARD OF DIRECTORS

Board of Directors are the owners of the bank and governs the Bank’s Affairs,

which currently consists of President Chief Executive Officer & seven directors. The

CEO has an overall responsibility for the strategic direction, government relations and to

manage the portfolio of business and its functions.

EXECUTIVE COMMITTEE

The Head of the Executive Committee is the President of UBL (Mr. Atif R. Bokhari).

Treasury

The main purpose of the treasury department of any company is to maintain the

liquidity for that company. Same is the case with Banking Industry as well.

The treasury department has to manage the buffer stock (in terms of cash) of the

bank and they have to maintain the liquidity for giving Advances to their customers.

Corporate Banking

The main objective of the Corporate Banking is to look after the special customers

who give very much big amount of deposits or take higher amounts of Advances.

Because a Hub Branch can give the Advances up to Rs. 200 Million. And the party who

needs a loan more than Rs. 200 M they have to contact to the Corporate Branch of the

UBL. So the cases of Advances more than Rs. 200 M goes into the Corporate Branches.



MISSION OF CORPORATE BANKING

Our mission is to serve all your corporate needs and ensure your full satisfaction

through product innovation, personalized banking, and top notch service.

The (Corporate Banking Group) CBG focuses on attracting and servicing large portfolio

customers. UBL forte is providing exemplary customer service using the "Single

Window" concept and product superiority. The Relationship Management team manned

by highly qualified individuals from the industry has steadily expanded our customer

base and continues to enhance bank’s cordial relations with its esteemed clients.

Despite the sluggish economic growth in recent years, UBL outperformed all the

other local banks in the corporate banking sector primarily due to CBG's emphasis on

establishing and enhancing relationships with foreign/local blue chip and middle market

customer’s thereby capturing significant market share.

Investment

This department supports the Corporate Deptt. When a company wants to install a

new project and require the finance from the bank then it is the responsibility of

Investment Deptt. That they analyze the targets of the project and success or failure of the

project. If it is feasible to loan that party then they pass the loan otherwise not. This is

called the Project Finance. Other responsibilities are offering IPOs, TFCs and following

services are performed by this Deptt. Now UBL is offering its IPOs (Initial Public

Offerings) in June On behalf of the customers all the banks also make an investment in

different companies and industries. And banks receive nominal charge from the

customers.



Services

UBL (Investment Banking Group) IBG offers full spectrum of services

4-HUMAN RESOURCE DPARTMENT

Human Resource Department:

This Deptt. does all the activities related to HR and Personnel Management like Job

Analysis, Job Design, Job Description, Job Redesign, Job Specification, Recruitment (is

the process of finding and attracting capable applicants for employment through

Advertising, Employee Referrals, Private Placement Agencies etc.), Selection by written

tests and interviews, Orientation, Training, Career Planning, Performance Appraisal

(employee performance and accountability), Compensation and Protection, Union-

Management Relations etc. It also involves in the following activities:

Transfers & Postings

Scrutinizing bills (Hospital Bill)

Staff Deceased cases & its Correspondence



Retired employees Cases & its correspondence

All staff legal cases & Court at Multan & Lahore.

Retrenchment cases

Complaints and its correspondence

Fraud & Forgery cases

Mandatory Leaves and its observance.

Staff leaves and other related staff matters

Goals of all Staff

Monthly Statement of Staff

Disciplinary Action Cases

The HRM department also gives the facility of LPR to their employees.

Leaves Prior to Retirement (LPR)

These are the leaves at the end of the job period (near to retirement) with pay. If

some employee has the leaves in credit then he or she can avail that leaves at the end of

his or her job. But maximum limit of LPR is one year. And after these leaves he or she

will be automatically retired. But if some employee the leaves in credit less than one

year, let suppose of nine months, then he or she can avail only that credited leaves (nine

month) only but with pay in the facility of LPR.



IT Department

Information Technology Deptt. is related with all computer activities like to manage the

Central Data Base (CDB) which is placed in Head Office of UBL Karachi in all the daily

transactions in all the branches of the country are up-dated on daily basis. This Deptt.

also makes the web site new news to web site.

The daily transmission process of data is as following:

A spoke branch up-date the daily transactions through computer networking to its

Central Branch. Suppose all the withdrawing, deposits, remittances, collection and

clearing data of the day is sent to the Central Branch. And when the Central Branch

receives the data from all the spokes branches under it then that Central Branch up-date

the data of all the spokes branches and its own to the Central Data Base (CDB) at Head

Office. Corporate Branches and Regional Head Quarters (RHQs) up-date the daily data

directly to the Head Office.

Audit and Inspection

The responsibility of this department is to audit and inspect the operations of the

branches. Whether the operations are compliance by the branches in a right way or not.

The CCD (Control and Compliance Department) comes under this department. I will

discuss about the CCD in the branch level functions.

Consumer Banking

You as an individual can gain and benefit the most through UBL Consumer

Banking. In UBL you get friendly, efficient and attentive personalized banking services -



a unique banking relationship experienced by each UBL client. You can utilize the

following services:

UBL Credit Card

UBL Businessline

UBL Cashline

UBL Address

UBL Drive

PLS Term Deposits

PLS Savings Accounts

Uni-Saver

Remittances

Learning as an Internee from the Management Side:

Customer Service Banking:




following services:

UBL Credit Card

UBL Businessline

UBL Cashline

UBL Address



http://www.ubl.com.pk/consumer/address/

http://www.ubl.com.pk/consumer/cashline/

http://www.ubl.com.pk/consumer/business/businessline.asp

http://www.ubl.com.pk/consumer/creditcard/

http://www.ubl.com.pk/remittances/

http://www.ubl.com.pk/consumer/unisaver.asp

http://www.ubl.com.pk/consumer/pls_saving.asp

http://www.ubl.com.pk/consumer/pls_terms.asp

http://www.ubl.com.pk/consumer/drive/ubl_drive.asp

http://www.ubl.com.pk/consumer/address/

http://www.ubl.com.pk/consumer/cashline/

http://www.ubl.com.pk/consumer/business/businessline.asp

http://www.ubl.com.pk/consumer/creditcard/

PLS Term Deposits

PLS Savings Accounts

Uni-Saver

Funds Transfer:

Transfer of money or equivalent to money from one branch to another branch of the

same bank is called remittance. Now it has become an easier and safer method both for

the client and banker to transfer their money from one branch to another within the city or

Outside City.

MODE OF REMITTANCES

United bank limited, uses following types for transfers of money:

1) Demand Draft (DD)

2) Pay Order (PO)

3) Mail Transfer (MT)

4) Telegraphic Transfer (TT)

Cash Department:

This is sensitive department of the branch. No other person is allowed to enter in

the premises of cash department. As obvious from name that this department deals in

cash deposits and payments. Cash department is performing its functions/duties

manually. For payments and receipts, it has to maintain certain sheets, books of accounts

and various ledgers, which are as under:

1) Cash received voucher sheet

2) Cash paid voucher sheet

3) Token register



http://www.ubl.com.pk/consumer/unisaver.asp

http://www.ubl.com.pk/consumer/pls_saving.asp

http://www.ubl.com.pk/consumer/pls_terms.asp

4) Transaction ledger

5) Pay-In-Slip record

6) Cheque book record

7) Cash balance book

Structure of the Department/s



Employees working in Departments:

Employees working in different departments of UBL Attock City Branch are listed

below according to their departments:

Cash Department:

Mr. Iqbal Khattak

Ms. Sumaira Naeem

Funds Transfer Department:

Mr. Irshad Farooqi

Customer Service Department:

Mr. Abid Farooqi

Mr. Ehtesham Shabir

Product Lines:

Consumer Banking




following services.



UBL Credit Card

Welcome to the world of UBL Credit Cards the most exciting and vibrant credit

card brand in Pakistan. UBL offers you a range of innovative and exciting cards that is

not only powered by the security of chip but also enable you to personalize it any way

you want…

Other Services:

UBL Net Banking

UBL e-statement

UBL Net Banking:

UBL Net Banking is an internet banking portal offering a simple, convenient and

secure method of accessing bank accounts on the internet. It’s never being so easy to

access and manage your finances in a secure real-time, online environment

UBL e-statement:

UBL is pleased to announce the launch of the UBL e-statement facility which it

easier for you to get your statement of accounts and automated transactional debit/credit

alerts right into you inbox.



Commercial Banking

To stand tall among the world’s leading banks, UBL has developed a YOU

attitude to understand its customers well. For small and middle size investors, UBL has

so much to offer, so much to deliver. Walk in to any nearest branch of UBL, enter the

world class bank and let us serve you with what you need.

Investment and Saving Accounts:

UBL offers you the most beneficial and secured financial investment and saving

options. You can choose from the following list of accounts anything that serve your

needs best.

UBL Basic Banking Account

Exempted from Minimum Balance charges, UBL BBA holders can carry out two

deposits and two withdrawals each month as per the bank policy. Through 24hrs ATM

services, they can carry out transactions as and when desired, staying in the daily

withdrawal limit.

UBL Business Partner (Current Account)

For regular customers, UBL offers the ultimate option, UBL Business Partner

(Current Account). With unlimited deposits and withdrawals, bank offers you

convenience of UBL netbanking, Credit Cards, and other exciting consumer products.

Customers are liable to maintain minimum balance of Rs. 10000 to avoid the minimum

balance charges until and unless they are exempted from it.



PLS UniSaver

Let your savings earn you bucks. PLS UniSaver offers you semi annually profit

disbursement with profit being calculated upon average monthly balance.

PLS UniSaver Plus

Big amounts earn you big; but with PLS UniSaver Plus, UBL makes it bigger for

you. With deposits starting from Rs. 25 million, UBL offers 5.00% but more you put in,

more profit rate will UBL offer.

UBL Rupee Transaction Account (PLS Saving)

Have your money box at UBL! Put in your savings and let us earn you 5% p.a. over

your daily savings.

UBL UniFlex

Have couple of thousands spare? Come invest in our UBL UniFlex Accounts, UBL

will make you earn handsome.

With UBL UniFlex, the bank serves you with fix profit rates at maturity.

E-Transaction (Current Account)

In the era of glooming computerization, even Chicago, Tokyo, Sydney, all are

seconds away from you. Internet has turned distance into time, and UBL has turned your

account into a shear pleasure. Now sitting at home, or at office or anywhere in the world,



UBL offers you a wide spectrum of world-class electronic services and banking products

each time you log in. Use your account like a regular account plus use the premium

Internet & Mobile banking services for Instant Fund Transfers, Instant Shopping, Instant

Bill payments, Instant Mobile top ups, Alerts, Statements and much more. You love

surfing, come surf with UBL.

Complementary Services

Insurance Certificate

UBL not only cares about you, but cares about those too who are dependent upon

you. So UBL now offers enhanced Free Accidental and Disability Insurance Certificate

coverage to all existing and new account holders.

UBL Net banking

UBL is very much determinant to make banking as you will. How about being in

office, or on your way, at home or at anywhere in the world but still connected to your

account! Through UBL NetBanking, Access your accounts any time, pay anyone you

want, pay your bills, buy vouchers you need and get account alerts, all integrated with

one of the best security systems in the world.

UBL e-statement:

During your busy hours, you don’t have to bother about visiting us to get your

account statement. Neither there’s a risk of anyone else knowing your account details.



Subscribe today, free of cost to UBL e-statement facility and let us share details with you

daily, weekly, monthly, quarter or semi-annually. Get debit/credit alerts and know as

soon as you get money or pay off.

Departmental Operations:

Customer Service and Account Department:

I started my internship in UBL and start my first week in Accounts Sections. Main

Reason of starting from here is that accounts are the basic thing in the banking. Many

activities are performed in this department all the activities performed in this department

are as follows.

Account is terminology, which has different meanings in different situations. As I

m working in banking environment so I shall define it from bank point of view. From

bank point of view accounts can be defined as

“Bank Account is a platform to fulfill the financial needs of the individual” and

other view is “Bank provides a service to its customers to keep its money and allow

customer to deposit it and withdraw it for customer personal use. The main advantage of

account is that bank can generate funds for different projects and investments, and on

other hand money of customer become in safe custody.



Bank allots an account number to each customer by which their account can be

distinguished from other account holders.

How one can open an account in UBL

First of all the person who want to open an account must obtain a preprinted form

from the CSO (Customer Service Officer) of UBL and then read it carefully. After

careful reading fill the form as per instructions on the form. Pre Printed Account opening

form contains the following contents

Step 01 (TYPE OF ACCOUNT)

Rupee Type of Account:

UBL Business Partner (Current A/c)

UBL Business Partner Plus (Current A/c)

UBL BBA (Current A/c)

UniSaver (PLS A/c)

UniSaver Plus (PLS A/c)

UBL Rupee Transactional Account(PLS A/c)

UBL UniFlex (PLS A/c)

eTransaction (Current A/c)

UBL First Minor PLS Acount



Foreign Currency Type of Account

$USD

₤GBP

€EURO

UAE Dirham (AED)

Saudi Riyal (SAR)

Others

If currency account is not one of the given currencies then a space of any other provided

to specify the other currency.

UBL Provides two main categories of accounts:

1. Individual Account

2. Business Account

Individual Account:

Individual account states the single account not for business purpose. It is for personal

use. Individual accounts are further categorized in two types.

Single Joint

Business Account



Business account states the type of account for businessmen. It is further categorized

according to the nature of business.

Sole Proprietorship

Joint Stock Company

Partnership

Association/Clubs/Societies

Autonomous

Govt. Institutions (Federal / Provincial)

Foreign mission / Diplomats.

Then after doing so person should show its initial deposit. Minimum amount of the

initial deposit is depend on the nature of account to be opened. Each account has its

different min deposit policy. Third part of the form is to provide the personal information.

Like:

Title of account

Name of Opener

Current Mailing Address

Teh / Distt, City, Postal Address, Postal Code, Country, etc.



And then after this provide completer information to the bank in personal information

part. Fourth step is to specify the client profile.

Type of customer Walkin, Marketed, Reffered By

Public figure Yes, No, Education

Purpose of Account Business, Personal, Savings

Sources of funds

Usual Mode of Transaction Cash Deposit/With Drawl, Clearing,

Collection, Remittences

For Non Resident Persons Country of Citizenship, Country of

Residence

Performing all the formalities and providing all the information now attach two

fresh photographs of the account opener. And then attach all the relevant documents

required to open an account. Requirement of documents to be attached is depend on the

nature of account. Following are the main requirements for different nature of accounts.

Individuals

Following documents must be attached

Attested Photocopy of CNIC / Passport of individual.



In case of salaried person attested copy of service card or any other acceptable

evidence of service, but not limited to a certificate from employer.

In case of illiterate persons, two recent passport size photographs of new

account holder besides taking his/her right and left thumb impression on specimen

signature card. (SS Card)

Business Accounts:

Joint Stock Company

Certifies copies of:

Resolution of board of directors for opening an account specify the person(S)

authorized to operate the company accounts.

Memorandum and article of association

Certification of Incorporation

Certificate of Commencement of business

Attested copy of CNIC of all directors

List of directors in form 29 issued for registrar joint stock company

Trust Accounts

Attested Copy of Certificate of registration



Attested copies of CNIC if all trusties

Certified Copies of Instruments of Trust

Account Opening in the name of minor

In the case of account being opened and operated under the name of a minor (Age

Below 18 years) the word “minor” to be added to the title of account, the particulars of

account in the account application form. Also CNIC of father/Guardian along with form

‘B’ for minor to be provided

Sole Proprietorship

In addition to documentary requirements for individuals, following documents are

required.

Application to open an account on the official letter head of the sole

proprietorship.

National Tax Number (NTN)/Sales tax registration certificate

Evidence of membership of trade organization/ chamber of commerce etc.

(Whenever Applicable)

List of official authorized to operate the account and their specimen.



PARTNERSHIP:

a) Attested photocopies of NIC of all partners.

b) Attested copy of “Partnership Deed” or “Letter of partnership” duly signed

by all partners.

c) Attested copy of registration certificate with registrar of the firm. In case

partnership is unregistered, the fact should be clearly mentioned on the customer

relationship form.

d) Authority letter in original in the favor of persons other then the partners

authorized to operate on account of the firm.

CLUBS SOCITIES AND ASSOCIATTIONS:

1) Certified copies of:

i. Certificate of registration,

ii. By law/rules & regulations

2) Resolution of governing body / executive committee for opening

of account authorizing the person to operate the account and attested copy of CNIC of

authorizes persons.

3) An undertaking signed by authorized persons on behalf of the

institutions mentioning that when any change take place in the person authorized to

operate on the account the bank will be informed immediately



Now when every requirement is fulfilled by the applicant, all the documents must

be attached is sequence and submit with CSO Officer, and a specimen signature Card (SS

Card) must be signed duly by applicant in order to take sample signature for verification

purpose in future transaction. After submission of form UBL will provide you an account

number. Account number will be generated automatically be computer. It is consist of

Digits in which first four digits represent branch code and other twelve digits are actual

account number.

How would you sure about your Account?

When applicant submits application form then this application is processed. All the

data entered in computer and when your account is confirmed then a “Thank letter” is

sent to the applicant mailing address. This thanks letter represents your account opening

confirmation.

Acquire cheque Book.

After receiving “Thank letter” for first time Cheque book acquisition, customer will

come to bank and show the thanks letter and will fill Cheque book acquisition form and

attached with thanks letter and submit to operations manager He/She will issue a new

cheque book to application.

Acquire ATM card:



If a customer wants to take its ATM card, then customer has to fill a form and submit to

bank. ATM delivery time is 5 – 15 days.

Closing of activation:

Other than opening an account, in accounts section another activity is to close, freeze,

and activation of accounts. Let us examine these three states of account with details.

a) Closing an account.

Closing of one’s account, once accounts was closed. The account holder cannot make any

transaction in this account.

If a person wants to close its accounts. Then He/She must submit an application

along with its NIC copy in the name of branch manager requesting him to close its

account. But once account close then customer cannot any transaction is this account.

Many reasons can be, for which one will close account. One main reason is that

customer has not enough savings to deposit or with draw due to which account will

remain unused. Another reason for closing an account is customer switching to another

bank, or customer can involve in illegal activities according to bank due to which its

account will be closed, Along with these reason there are many other reasons. Due to

which one can close its account.



B) Freezing of Account:

Freezing of an account is a terminology used in banking. Which means that and

account will become unused, It means that it ia a state of sleeping. It this state account in

which account remains active but unused, No, transactions can be made in such account.

Account remains as it is for a specified tenure.

Why account freezing.

There are man solid reasons for freezing an account some of them are:

- Account holder was sue in court and court ordered to freeze its

accounts and property.

- Account holder was appeared in corruption and its accounts

and other assets will freeze by National Accountability Beauru (NAB).

- Any disasters like bomb blast, and terrorist attach, Government

will freeze all of accounts.

Who are authorities;

Bank it self, Government, Security Agencies, FIU, and other such departments are

authorized to order freezing of accounts of their under observation persons. An order by

these authorities tie bank to freeze these accounts with any notice to account holder.



Dormant Accounts

Dormant is a terminology used in banking its means inactive accounts.

How an account become inactive?

If a person have account with UBL and not used since last six months, any deposit or any

withdrawals doesn’t made in account then account become inactive.

How these accounts can be activated. Let us see:

Step 1: Take dormant form from operational manger of UBL.

Step 2: Fill it with care and attach one copy of CNIC with it.

Step 3: Fill deposit slip amounting Rs.100/-.

Step 4: Submit deposit slip, dormant form, and Rs 100/- with cash counter.

Then cash officer will deposit these 100/-nin your account. Thus one transaction will be

made in person’s account and account will become active,

C) Minor Problems faced by customer and bank at time of opening an account.

- Incomplete documents.



- Expired CNIC.

- Source of Income.

- Residence or Non-residence problems.

CASH DEPARTMENT

In cash department both deposits and withdrawals go side by side. This department

works under the accounts department and deals with cash deposits and payments. This

department maintains the following sheets, books, and ledger of account:

1. Cash received voucher sheet.

2. Cash paid voucher sheet.

3. Paying-in-slip

4. Cheque Book

5. Cash balance book

CASH PAID SHEET

The only instrument that can be used to withdraw an amount from an account is the

Chequebook. No payments are made by another instrument. Cheques can be of two types,

they may be presented at the counter and encashed and the others are clearing or transfer

Cheques. Cashier manually inspect the Cheque for following:

1. Signature & date

2. Cross cutting



3. Drawee’s a/c title

4. Amounts in words & figures

5. Two signatures at the back

The Cheques should not be stated as post dated. If in the Cheque there may

discrepancy regarding any of the aspects described above the Cheque is returned to the

customer for rectification. On other hand if the Cheque is valid in all respects, the cashier

enters the necessary inputs in the computer and post the entry so that account balance is

updated.

When cashier posts these entries, computer automatically display the balance before

posting the transaction amount, balance after posting. The cashier easily and quickly see

whether the amount being withdrawn so exceed the balance or within the balance. If the

amount does exceed the balance then it is upon the discretion of the manager to allow an

overdraft and not depending upon the customer’s reputation. If he does not allow an over

draft, the procedure is repeated again as described for the mismatch of the signature

Cheque is return.

The detail of notes (currency) is written on the backside of the Cheque. The cashier

at the same time maintains the “Cash Voucher Received Record Sheet”. Then once again

inspect the signature of the customer cancellation mark of checking officer and stamp of

“POSTED” is placed on Cheque before hand over the cash to customer.



CASH RECEIVED

For depositing the cash into customer’s accounts, there is need to fill in the paying-

in-slip (Deposit Slip) available in the bank, giving the related details of the transaction.

This paying-in-slip contains the date, a/c no., a/c title, particulars, amount being

deposited and details of the cash. There are two portion of the paying-in-slip. The

depositor signs the one part of the paying-in-slip one is retained by the bank to show an

acceptance of the entries made in the slip. The paying-in-slip serves as a voucher to

update to computerized transaction ledger. The transaction ledger is only updated by

paying-in-slip and Cheque. The cashier is responsible to receive both the paying-in-slip

and cash from the depositor. The cashier check the necessary details provided. The

paying-in-slip and accounts the cash and tallies with the amount declared in the slip. If

the amount does not tally with the cash given, the deposit is not entertained until the

customer removes the discrepancy.

On the other hand if the two amounts tally, the cashier fills in the “Cash voucher

received Record Sheet” and assigns a voucher no. To both the transaction being made in

the sheet and the slip. This voucher no. Starts with one and continue by serial increments

of one for each day till the closing of the sheet, the cashier fills the voucher no, an

account, cash day till the closing of the sheet. The cashier fills in the voucher no, an

account of, cash entry in the related type of a/c and he post his initials on both part of the

voucher. Then the cashier send both to the accountant who verifies all the entries in the

two documents, if the entries in the two documents, if the entries in the two documents



tally with one another, the accountant authenticates the two by singing on the two

documents and posting stamps on the slip.

One part of the slip is then returned to the customer and other is given to the

computer operator. A very important check is that the dates mentioned into the two

documents must be the same.

The 2nd cashier posts the transaction entries in computer ledger. This ledger contains

the a/c no, a/c title, voucher no, voucher date, transaction code, transaction amount. After

posting these entries, computer display before posting balance and after posting.

On every transaction computer generates an output of transaction ledger. He assigns

the stamp “POSTED” on the voucher to show voucher transaction entries are posted.

Checking officer receives this voucher and the compute output transaction ledger; he

manually inspects the entries of ledger and voucher. If both are tallied, he then signs the

ledger and put a mark of cancellation on the voucher. After the verifications from the

checking officer, cashier receives the voucher.

CASH BOOK BALANCE

At the end of the working day cashier is responsible to maintain the cash balance

book. The cash book contain the date, opening balance, detail of cash payment and



received in figures, closing balance, denomination of government notes (Currency). It s

checked by manager. The consolidated figure of receipt and payment of cash is entered in

the cashbook and the closing balance of cash is drawn from that i.e.

(Opening Balance Of Cash + Receipts) - Payments = Balance

The closing balance of today will be the opening balance of tomorrow. This

department is one of the most important departments of the bank. Officer checks all the

books maintained in this department.

CHEQUE BOOK

“Cheque book is a binded mini book of Cheques with a specific number for each

Cheque”

It consists of 25 leaves, 50 leaves, 75 leaves, and 100 leaves. It depends on

customer that which sort of Cheque book he/she wants to issue. It is necessary to request

for issue new Cheque book let us discuss that how request can be initiated and how it

processed and bank issue new Cheque Book to its customer.

CHEQUE BOOK REQUISITON



Bank issues new Chequebook to customer on the request of the customer. Customer can

make request for new Chequebook in three main cases:

Newly Opened Account

Previous Chequebook finished

Previous Chequebook lost or Theft.

Newly Opened Account

When a person newly open accounts with bank then it become the customer of the

bank. Then to make transaction or with draw and deposit the cash in its account it is

necessary to present Cheque so for this purpose bank provides Chequebook to its

customer by following a specific process.

First of all for issuing new Cheque book. When customer receive the letter of

thanks from the bank for opening an account then he/she would come to bank along with

this letter of thanks and attach one copy of its CNIC then obtain a pre-printed

Chequebook requisition form from the operational manager. Fill it with care and enter all

the information needed like Name, Title of Account, Account Number, Signature, and

leafs of Chequebook must be mention. This preprinted form is real request to acquire new

Chequebook. Attach all the required Documents (CNIC, Letter of Thanks, Requisition

Slip) and present it to operation manager. This is all from customer side.



Now operation manager will assess all the documents specially signatures and then

take Chequebook, enter account number in each leaf of the Cheque book, then enter the

following information in Chequebook issuance register.

Date

Title of Account

Account Number

Chequebook starting leaf Number

Chequebook ending leaf number

Signatures of the customer

Signatures of the issuing person

After entering the data in Chequebook register information said above is also enter in the

computer in order to maintain record digitally as well as manually. The purpose of

writing leaf number is to verify that Chequebook of these numbers will not be issue again

and in fact it is impossible to print another Chequebook having same leaf numbers. After

this process Chequebook is allotted to the customer. This is all from the bank side.

PREVIOUS CHEQUEBOOK FINISHED

Once Chequebook is issued to the customer, all the Cheques are completely used by

the customer, and there is a need to issue new Chequebook so to issue new Chequebook

in this case is easy as compare to newly opened account. So for this purpose a

Chequebook requisition slip is already stacked in previously allotted Chequebook in



order to request new Chequebook when this Chequebook comes to end. But there is one

condition on which one can issue new Chequebook that all the Cheques of previous

Chequebook are fully used. So when all the Cheques used then fill the requisition slip in

the Chequebook with care and present to operation manager of the bank. Operation

manager will repeat the same process again as said above from the bank side and issue

new Chequebook. But one thing that differentiates it from newly issuance is that there is

no need of letter of thanks, preprinted form filled as request.

PREVIOUS CHEQUEBOOK LOST OR THEFT

In case if Chequebook currently used by customer is lost or stolen then what should

the customer do in order to issue new Chequebook and cancellation of those Cheques.

There is a process that should be followed by the customer.

Write an application showing that the Chequebook issued by the bank leaf

no.___ to leaf no._____ is lost by a reason. So it is requested to do not accept any Cheque

presented between these numbers, and issue me new Chequebook.

Follow all the process of newly opened account.

Bank will cancel all the Cheques issued in the lost Chequebook.



DISHONOR OR BOUNCING OF CHEQUES

Dishonor or bouncing of Cheques means that bank do not accept the Cheque due to some

specific reasons. These reasons can be:

Insufficient Balance in account

Mismatch of Signature

Three signs must be on Cheque, missing of one can be the cause of dishonor

Amount in words differs from amount in figures

One Cheque is valid for 6 months after it is written so if Cheque is over dated

Payee Does not specified

Amounts in words not written

In case if Cheques are not “self” Cheques then stolen Cheques

One person Cheque presented by other person

Soiled Cheque

Cheques presented and not in bank record

CROSS CHEQUES AND TRANSFERS OF AMOUNTS IN ACCOUNT

Cross Cheque is said to that type of Cheque, which cannot be directly cashed on the

spot. By cross Cheque amount from one account is transfer to another account mentioned

on the Cheque. How a Cheque can be crossed:



Draw two diagonal lines just on the top left corner of the Cheque and write “To

Payee’s Account Only” or left it blank, thus the Cheque will become cross. Following

figure shows the format of cross Cheque:

Encircled area highlights the crossing of Cheque.

The main advantage of the cross Cheque is that if Cheque lost or stolen then no one can

cash it.

TRANSFER OF AMOUNTS IN ACCOUNTS

Amounts are transferred with in the accounts by the help of cross Cheques. We consider

here three cases:

1) Transfer of amounts from one account to another account in the same bank

2) Transfer of amounts from one account to another account in different banks

3) Transfer of amounts from one account to another in same branch

TRANSFER OF AMOUNTS FROM ONE ACCOUNT TO ANOTHER ACCOUNT

IN THE SAME BANK


Date

AmountPay

In words


If cross Cheque presented of the same bank but branch is different like Cheque of

UBL Islamabad is presented in UBL Attock because payee’s account is in Attock branch.

Then how the bank will credit the account of payee. For this purpose bank follows the

process:

First of all Cheque is collected by bank

Filled a deposit slip and attached by Cheque

Filled the Cheque collection slip (CC) and attach with Cheque

Posted to responding branch i.e. Islamabad branch

They will realize the CC and deduct the amount from payer account

After this the Receipt called Realized CC is sent to originating branch and

then they credit the amount in the payee’s account

TRANSFER OF AMOUNTS FROM ONE ACCOUNT TO ANOTHER

ACCOUNT IN DIFFERENT BANKS

If Cheque is presented in the UBL and Cheque is of HBL then all the process of

crediting amount will remain the same but one thing will differ, i.e. Cheque cannot be

directly sent to HBL for this bank will see that HBL location, and then send this Cheque

to UBL of that Location then that bank (UBL) will sent this Cheque to HBL and realize

it.

TRANSFER OF AMOUNTS FROM ONE ACCOUNT TO ANOTHER IN

SAME BRANCH



If Cheque presented is of same branch then there is no need to send it to the

responding branch it will be directly credit to the account of the customer.

CHEQUE STOP PAYMENT

Another activity that is performed in the operations in UBL is Cheque stop

payment. Cheque stop payment is a terminology used in banking for stop the payment for

the Cheque presented. Bank cannot directly stop the payment without any specific reason.

The customer does it. How payment can be stop by the customer for the Cheque

presented? Let us see:

Write an application with subject of Cheque Stop Payment

Or fill the Formatted Application form provided by bank

Attach one Copy of CNIC

Submit Rs.300/= Per Cheque as Cheque stop payment Fee

Submit all these with operations manager and fee with cashier.

Then after all these process payment for the Cheque is stop

Once this Cheque is stop can never been used again

An entry from the computer for this Cheque number as Stopped Cheque

So in this way the payment for the Cheque is stopped. Cheque stop payment is

always requested by the customer it means that bank can never be stop the payment for

Cheque on its behalf.



Remittance/ Transfer Funds Departmen:

First of all while examining the remittance activities in the bank we should know

that what remittance is:

“Remittance is transfer of funds from one place to another or from one person to

another person”

A remittance is an important service provided banks to customers as well as non –

customers. Bank charge some services charges in order to transfer money from one place

to another. Since it is not free service therefore it is open for all customers and non –

customers also. One of the sources of income for bank is transfer of funds. In banking

system these are some kinds of remittance, which are:

a) Transfer within the branch

b) Transfer from one branch to another

c) Transfer from one bank to another bank in same city

d) Transfer from one bank to another bank in different cities

REMITTANCE IN UBL

In this department I learned that how the transfer of money from one branch to

another branch takes place. In this department I perform following duties.



a) Cashier’s Cheque

b) Foreign transfer

c) Mail Transfer

d) Telegraphic Transfer

e) UniRemote (Immediate Transfer)

Before going in details I want to explain one thing that comes in mind while

performing remittance activities that is

Suppose if a person has account in UBL Rawalpindi and that person is resident of

Attock city. How he/she will deposit money in its account from UBL Attock Branch. I

observed this thing and found that what the procedure to deposit money in his account is.

He/she will take online form, fill it with care and submit in cash management division.

Then it will be transfer by cashiers at the end of the day.

I found it necessary to explain this problem, because I personally handled such type

of issues in branch. Some customers directly filled the deposit slips to deposit it directly

in the account but it is not possible to deposit money directly in another branch account

of same bank. Another reason of explaining it is that first of all I myself was not sure

about that what we should do if such type of transfer is takes place, and it belongs to

remittance activities.



Now, all other activities that was learned and handled by me in remittance

department are given with detail below.

Instruments used in remittance department:

a) Cashier’s Cheque CC

b) UniRemote

c) Security Deposit Receipt SDR

d) Telegraphic Transfer TT

CASHIER’S CHEQUE

Cashier’s Cheque is a negotiable instrument, which is drawn by one branch to

another branch of the same bank. In case of agency arrangements Cashier’s Cheque can

also be issued by one branch of the bank payable to other branch of the payee bank e.g.

CC issued by UBL payable by UBL.

If a person wants to make payment from one city to another city then he/she can

make payment through Cashier’s Cheque. Bank charges a commission for performing

this kind of service according to bank rate schedule, which is revised after six months.

Cashier’s Cheque can be issued or paid; there are two ways to issue Cashier’s Cheque

a) Issue of CC against Cash

b) Issue of CC against Debit of Account (By Cheque)



Issuance of Cashier’s Cheque:

When a customer requests UBL Attock City to issue him a Cashier’s Cheque made

on his account or against cash payment for a particular city like Islamabad. Then after

having the total amount including commission, Cashier’s Cheque is issued in favor of the

specified person in that city and is drawn on UBL Islamabad Branch. So, when payee in

any bank presents this Cashier’s Cheque, it constitutes the inward clearing of UBL,

Islamabad.

When UBL receive the Cashier’s Cheque then it pass following entry.

Entry:

Dr: Head Office Account with Treasury

Cr: Cashier’s Cheque Payable Account

Entry When Bank Issue CC

Dr: Customer Account

Cr: Transit Account

Then

Dr: Transit Account

Cr: Head Office Account with treasury



UniRemote

UniRemote is the online facility of depositing cash to any account in UBL. With

on-line banking, you are connected to the complete network of UBL all over Pakistan.

UniRemote charges are Rs: 200 for cash withdrawal and Rs100 for cash deposit.

Security Deposit Receipts (SDR)

Security deposit Receipts are your safe way of making payments. Not only its free

of cost for A/C holders, it also offers you the best liquidity solution as the cash continues

to be with you until and unless your deal gets final and you pay off. In case of

cancellation, it's also free of cost for A/C holders and their amount is returned to their

normal account balance.

*for non A/C holders, Rs. 250 is charged. Duplicate fee is Rs. 250 (flat)

TELEGRAPH TRANSFER

It is just a shape of Cashier’s Cheque. The difference is that it is not drawn on the

specified branch. It can be drawn on any branch of the same bank. The paying bank has

to verify the signatures and after verification payment is made.

CANCELLATION OF CC AND SDR

After issuance of Cashier’s Cheque or Security Deposit Receipt by UBL Branch

Attock if any one of these has to be cancelled by the customer, it is returned in the bank.



Then, after deducting the cancellation charges of Rs. 200 for CC, the remaining (net)

amount is paid to the customer.

Job/Work/Tasks system of the organization

UBL is a commercial bank, which transacts the business of banking in accordance

with the provisions of BCO, 1962. Section 7 of the Act authorizes banks to engage in the

prescribed form of business. In the light of this section UBL’s functions can be

categorized as under:

Agency services



General Utility Services

Providing specialized services to customers, and

Decision-Making Environment

The UBL is under the ownership of two very strong (financially) group (The Abu

Dhabi Group & The Best way Group) and The Deputy Chairman of the UBL is Sir

Mohammad Anwar Pervaiz who is the leading role of Best way Group. So UBL is acted

as a centralized bank.

In 1986, the organizational structure of domestic operations of the bank was

reformed and decentralized on the basis of provinces. As a result provincial headquarters

were established at Karachi, Lahore, Peshawar and Quetta in order to meet the needs of

sanctioning loans and other facilities to the trade, industry and agriculture of each

province.

UBL is centralized. It means authority is not delegated to branch level. Manager

cannot take initiative regarding different decisions such that for giving finance.

FINANCIAL ANALYSIS

Financial statements are the principal means of reporting the financial condition and

results of operations of a business entity. These statements are meant to assist various

parties in decision making who are interested in the activities of the business. These

statements are means to an end of helping stakeholders in decision-making. To improve

the quality of decision making proper analysis of these statements helps a lot. Financial



statements analysis helps in determining the financial conditions at any particular points

in time and effectiveness of operations of a firm during a specific period.

The various stakeholders of business are interested in the analysis of financials

statements. But the focus of interest of all is not the same. For example, creditors and

credit reporting agencies are interested in finding out the credit worthiness of the firm to

which they have extended credit or intend to extend credit. Short term creditors are

interested in short term liquidity of the business and long term creditors are interested in

the long term cash flow which the firm can generate over the long period of time.

Investors are interested in the firm’s ability to sustain profitability over a period of time.

Government agencies analyze financial data for tax purposes. The internal users of

financial statements like management also analyze financial data for planning and

control.

COMMON SIZE ANALYSIS OF BALANCE SHEET

Common size analysis is an analysis of financial statements where the total assets

divide all balance sheet items of asset side and all credit side balances divided by all

liability items, and all income statement items are divided by net sales/revenues.

Common size analyses are extremely helpful to highlight changes over the time in

financial performance and financial conditions of the company. The table shows common

size analysis of the balance sheets for the years 2007, 2008 & 2009.

The common size analysis given in the table shows that there have been

improvements in the current assets in 2009 as compared to 2008, about 17%. But there

has been decrease in fixed assets of about 16%. The main reason for this change is

increase in short term investment showing a constant increase as a percentage to total



assets. This implies that the bank is concentrating now more on non-interest income and

the interest rates are constantly falling.

Short-term advances have shown a significant change of 15% whereas total

advances show a total change of only 6.3%. This is very significant to note that major

decrease has occurred in long-term performing and non-performing advances.

There is decrease in long term assets of about 17% which mainly cause the decrease

in long term advances which are about 13% and 6% decrease in long term investment.

On the liability side the total current liability has shown change of about 4%. The

main reason for which is increase in current deposits, which are about 6%. The long-term

liability of the organization is also decreased by 4%.

COMMON SIZE ANALYSIS OF INCOME STATEMENT

The common size analysis of income statement is given in the table. Which shows

that the UBL has been able to control its interest or mark up expense? As a result of

decrease in mark up expense as a percentage of total revenues the gross profit margin has

shown a trend of continuous increase. The increasing G/P Margin shows efficiency of the

bank in controlling cost of sales (Markup expense) and better strategy of pricing,

products and services.

The provision for non-performing loans has a decreasing trend making no provision

for non-performing loans and diminution in value of investment, which increases the

profit of current year. The reduction in provision is a good sign, which shows that the

bank is recovering its disbursed advances. It shows the good credit management of the

bank.



There is a great increase in non-markup income, which is about 23%. Among its

individual components investment income has shown a large increase as a percentage of

sales.

Non markup expenses also show a rising trend in absolute amount though the

common size in percentages has shown a mixed trend due to the changes in revenue

figures. The non-performing expanses also increased to about 25%, which is a very high

percentage, but the other aspect of this is that it increased the efficiency and credit

management of the staff.

Like gross profit the net profit margin before tax has also increased with 24% rate.

The extraordinary item expanse has not occurred in 2009 that caused a slight increase in

the net income. The tax expanse is increased about 7% because of the increase in profit.

Loss brought forward from previous year is reduced by 14%.

The common size analysis of the UBL is clearly showing that the bank has shown a

lot of improvement in its performance. The organization shows profit for the first time in

the last 5 years which is a positive sign and it will build up the moral of the employees by

which they can work more effectively and efficiently increasing the performance of the

bank.

FINANCIAL RATIO ANALYSIS

The user of financial statements finds it helpful to calculate ratios when they

interpret company’s financial statements. A financial ratio is simply one quantity divided

by another. Ratios focus on special relationship between two items of balance sheet,

income statement or one from each. Ratios make it easier to understand a specific



relationship between various items of financial statements then looking simply at the raw

numbers themselves. The number of financial ratios that might be created is virtually

limitless, but there are certain basic ratios that are frequently used, these ratios can be

placed into six different classes.

Liquidity Ratio

Asset Turnover Ratio

Leverage Ratios

Coverage Ratios

Profitability Ratios

Market Value Ratios

The calculation and interpretation of these ratios of financial statements of UBL are as

follows.

YEARS 2007 2008 2009FORMULACurrent Ratio 0.84 0.91 1.15Current Assets / Current LiabilitiesAsset Turnover 0.07 0.06 0.04Markup Revenue / Total AssetsDebt to Asset 0.99 0.94 0.93Total Debt / Total AssetsDebt to Equity 14.54 14.4 13.47Total Equity / Total AssetsCoverage Ratio 0.1 1.15 3.34EBIT / Interest ExpenseGross Profit Margin 44.65% 52.50% 79%Gross Profit / Revenue * 100Net Profit Margin -65.12% 12.69% 30%Net Profit / Revenue * 100Return On Investment -4.43% 0.76% 1.24%Net Profit / Total Assets * 100Return On Equity -887.99% 16.78% 18%Net Profit / Total Equity * 100Advances to Deposit 56.46% 46.74% 45%Advances / Deposits * 100Investment to Deposit 20.22% 41.63% 28%Investment / Deposits * 100Cash Ratio 9.59% 9.23% 28%Cash / Current Liabilities * 100

CURRENT RATIO:



UBL’s current ratio is increasing over the time. Higher the current ratio higher the

ability to meet the short-term obligations as they come due. The UBL’s current ratio is

increased by 0.18% as compared to 2008. this in turn decreases the risk of insolvency.

The change is occurring due to increase in short term investment and decrease in short

term borrowings.

ASSETS TURNOVER:

This shows revenue generated per rupee investment in total assets. UBL’s assets

turnover ratio has shown a little decrease. This is because of increase in total assets with

proportionate increase in revenue. Banks have relatively low ATR capital, as they are

selective in advancing loans and generating smaller sales.

DEBT TO ASSET RATIO:

The analysis of total debt to assets ratio, there has been decrease of one percent as

compared to 2008 and 6% to 2007. In 2007 every rupee one of assets was being financed

by rupees 0.098 or debt and in 2008 it is 0.94 while in 2009 it is reduced to 0.93 worth of

debt per rupee of asset. Although the decrease is not large enough but it is a good sign for

bank’s creditors. The decrease may be attributed to the substantial decrease in borrowings

from financial institutions but the affect was weakened by an increase in bills payable and

other liabilities.

DEBT TO EQUITY:

This ratio measures how the company is leveraging its debt against the capital

employed by its shareholders. Analysis of debt to equity ratio indicates that the current

position for the debt to equity is that for every one rupee in equity provided by the

shareholders the bank has Rs. 13.5 as a debt. This shows that the bank is heavily relying



on debt financing. The reason for huge difference stated in the table is because of losses

occurred in 2007 and 2008.

COVERAGE RATIO:

This ratio shows the number of times a company can cover or meet its financial

charges or obligations. One of the most commonly used ratios is the interest coverage

ratio that measures the number of times the income is available to pay interest charges.

The UBL interest coverage ratio has shown significant improvement in these three years.

The ratio is increased from 0.10 to 3.34.

GROSS PROFIT MARGIN:

Gross profit margin is the difference between the revenue and cost of goods sold.

Gross profit is critical because it represents the amount of money remaining to pay

operating expanses financing cost and taxes. UBL’s gross profit margin per rupee has

shown rising trend in last three years. There is an increase of 27% in 2009 as compared to

2008. this shows efficiency of the bank to control the cost of sales.

NET PROFIT MARGIN:

This ratio shows the profit that is available from each rupee of the sale. After all

expanses have been paid. Net profit margin is also showing an increasing trend. UBL has

improved net profit margin in the current years. The net profit margin has reached to 30%

as compared to 2008 in which it was only 12.69%. While in 2007 it was in negative

figure. It shows a good impact on the UBL’s Balance Sheet.

RETURN ON INVESTMENT:



This ratio measures the profitability per rupee of investment in assets. UBL’s return

on investment has shown an improvement more than 100%. In 2009 the ratio is 1.24%

while in 2008 it was 0.76% and in 2007 it was in –ive figures. Although the assets have

increased but the operational recovery of the bank is main cause of increasing this ratio.

RETURN ON EQUITY:

This ratio shows the profit as a proportion of the book value of the common

shareholders. The return on equity is also shown a great deal of positive change. In 2009

the ratio is 45% while in 2008 it was only 16% and in 2007it was in negative figures.

ADVANCES TO DEPOSIT RATIO:

This ratio shows the companies advances employed per unit of deposit. This ratio of

UBL over the recent three years shows a decreasing trend. In 2007 it was 56% while in

2008 it was 46% and in 2009 it is 45%.

INVESTS TO DEPOSIT:

This ratio shows the company’s investment employed per unit of deposit. This ratio

increased in 2008 as compared to 2007 but in 2009 it again decreased. It is because of

industrial development factors in the country by which lending has been increased and

investment is slightly decreased.

QUALITATIVE ANALYSIS OF UBL

During my six weeks of internship period I have tried to fully commit myself in the

learning process. I kept critically observing the things that I could analyze and the result

of the exercise is presented as below.

A) Organizational:



Existing organizational hierarchy hinders vertical communication and blocks flow

of information among the levels of management.

The workload is not equally distributed.

Coordination level among divisions/departments and employees are poor,

There is centralization of authority and branch managers are bound and restricted

to take initiative.

Due to overlapping nature of duties and jobs there exists chaos and confusion in

branches.

B) Departmental:

During my internship period in UBL, in various departments, I noticed following

departmental problems.

Cash Department:

i. Not very frequently but there are instances of fake currency notes, being

identified. At times notes received from other branches were found to have certain fake

currency notes.

ii. Counting mistakes occur due to overcrowding particularly during the

collection of utility bills. Manual counting system also affects efficiency of the bank.

iii. There is generally the lacking in observing and practicing bank’s relevant

procedures.

iv. Identification of customer’s signature is very important particularly when cash

is to be withdrawn by him. Manual practices pose problems in those branches where

automation has not been done yet.



Remittances Department:

i. Application of tests for authentication of TTs is not known to al concerned

individuals that reduces the efficiency and further the wrong application of tests prevent

payments and the delay could dissatisfy customers.

ii. Telegraphic messages require specific skills and training. The employees are

partially equipped of such knowledge.

iii. Preparation, execution and management of TTs and MTs and particularly CCs ask

for mastering applicable rules and regulations and most of the staff was found ignorant of

those.

Customer Service/ Account Department:

i. In cases where the presence of customer himself is must, is sometime

compromised due to influences of\r fear of loss of customer.

ii. Sometimes information is not fully communicated due to work overload.

iii. Missing of information on account open form due to lack of proper guide.

iv. Data entering errors in computer.

v. At times due to lack of training wrong stamps are applied on instruments.

Future Prospects/ Recommendations:

To compete with other banks, UBL needs to set strategies for its new product by

including the postings strategy, it will help in image building of the financial package to

be launched.

Once the bank has defined its potential market and has established marketing

objectives, it must need to develop posting of its financial product. Position is the desired



perception of the product within the market target of the bank for example, if the product

is launched. Its position should be done in such a way, that customer is fully aware of its

major characteristics the bank has stained to build the image of its products as highly

profitable package. This positioning strategy is supported by the strategic consideration

on various marketing mix tools e.g. advertisement, publicity etc.

SHORT-FALLS/ Weak areas needed to be improved:

During my internship at the UBL I find out week areas that require improvements for

long-term benefit of the organization. These suggestions and recommendation are as

follows.

The behavior with the customers should be improved.

There is a great need of proper training of employees. Because when ever they

were asked about the latest banking the answer was sorry we don’t know.

Like the other reputed commercial banks UBL should recruited some officers

especially from the fresh MBA’s and M.Com students. Doing so, the more talented

persons would enter in the management and they will try to make the National Bank

compatible with the other banks.



All the branches must be fully equipped.

Try to establish effective communication between top-level management and

executive.

Also do marketing through internet

Effective training and qualified, dutiful and vigilant inspection teams are inducted

per force in all the banks. .

This branch is not doing many functions to open the L/C and to deal in export and

import facilities. So bank should hire export staff for such type of activities and start them

in the branch.

CONCLUSION:

A Bank, like the society it serves should be dynamic as banking is about people

customers with their needs and opportunities and staff with skills, experience and

resources. UBL has shown dynamism since its inception. There have been many changes

in the structure, functions and the services provided. These changes reflect the changing

requirements of our developing economy as a whole and those of Industry, Commerce

and private Individuals.

UBL is full of experienced and professional traditional bank. As it perfectly suit the

environment, YOU attitude has helped UBL in capturing masses. In the private sector, no

doubt it is a fast growing bank, but here's something that's still unrealistic to the policy

makers. The line of unsatisfied customers is increasing, not because we are not serving



well, it's because customers are not understanding the YOU attitude right. Every

customer wants to make sure his work is done at the first convenience, but they are not

concerned about the responsibility with which every employee is working. We need to

put in some guidelines for customers, as they walk in. This will not only save their time

but will also motivate staff members to work more promptly, because if customer and

employee engage into some unhealthy quarrel, the whole environment will be disturbed.

RECOMMENDATIONS:

Recommendations and suggestions are considered to be the most important part of

an internship report, without which no report is considered complete and meaningful.

This part of the report is based on the previous sections i.e. review and analysis.

Moreover, for bringing suggestions, discussions have been conducted with the staff of

UBL officers, who not only provided the basis for recommendations and suggestions but

also pointed out some areas, where the change for the development is utmost important.

Realizing the importance of this section, efforts have been made to give feasible

recommendations, which are categorized under the following headings.

Mobile Banking



Mobile banking is actually a banking that you can do yourself. You can perform

various activities of bank through your mobile phones or through your computers. With

just a call you can transfer money from an account to another and similarly other

activities. It is a concept that is gaining importance throughout World Pakistan is no

exception. UBL should start working on this concept to maintain their existence in the

changing banking sector.

Adopt Pro-Active Approach

UBL management should adopt proactive to survive in this sector. What I have

observed is that UBL management is having reactive approach means that they react to

the situation that their competitors have created. UBL should try for new innovative ideas

rather than moving on the same track that their competitive are doing.

Educate Account Holders

Whether the account holders are new or existing bank should provide them with the

initial information about how to deposit and withdraw money from the bank. It will be

beneficial for the bank in a way that lot of time could be saved afterwards with that

approach.

Promotional Activity

Bank must let potential customers know that all attractions for banking exist. This is

done by advertising on Television and obtaining Press coverage, in conjunction with

direct mail, window displays, pamphlet in branches and in appropriate other locations



(such as hostels, shops etc.) and including leaflets in statement of accounts sent to

existing customers in the hope that they will tell potential customers about the services

provided by our bank.

Relationships

The bank should keep on filling the gap between customer and the bank through

consumer friendly attitude and efficient services. They should work on building

relationship with the customers.

Change Attitude

Employees inside the branches should change their attitude toward the customer. It

has been observed that customer do not get the same warm welcome and importance that

he wants and he is been provided by other emerging banks. They should start thinking

about changing their attitude from now.

Appearance

Physical appearance of the location and inside the building also matters. It helps a

lot to attract the customer. Some branches of UBL are very attractive but all the branches

should be well dressed.

Charge Card

UBL should provide the facility of charge card as well.

Recovery Facility



It should also provide the facility of recovering notes payable and accounts payable.

BIBLIOGRAPHY

Web sites

www.ubl.com.pk

www.google.com

www.wikipedia.com

www.merapakistan.com

www.allfreeassays.com

www.marketingteacher.com

News papers



http://www.allfreeassays.com/

http://www.merapakistan.com/

http://www.wikipedia.com/

http://www.google.com/

http://www.ubl.com.pk/

BANKING JOURNAL

www.dawn.com

www.nation.com.pk

Books

David H. Buzzell , Principals of Banking

Charles H. Gibson, (1998), Financial Statement Analysis

Van Horne, J. C & J. M Wachowicz, (1998), Fundamentals of Corporation

Meenai, S. A, (1999), Money Banking in Pakistan

Annexes

Board of Directors:

Chairman

His Highness Shaikh Nahayan Mabarak Al

Nahayan

Deputy Chairman

Sir Mohammed Anwar Pervez OBE



http://www.nation.com.pk/

http://www.dawn.com/

President & CEO

Mr. Atif R. Bokhari

Director

Mr. Omar Ziad Jaafar Al Askari

Director

Mr. Zameer Mohammed Choudrey

Director

Mr. Ahmad Waqar

Director

Mr. Javed Sadiq Malik

Director

Mr. M. Tahsin Khan Iqbal



Mr. Aly Shah

Barrister-at-law, Company Secretary

Executive Committee:

Mr. Atif R. Bokhari

President and C.E.O



Mr. M.A. Mannan

Group Executive

Consumer/Commercial Bank

Mr. Nauman Hussain

Group Operations &

Technology Head

Mr. Risha Mohyeddin

Group Executive Treasury

& Capital Markets

Mr. Aameer Karachiwalla

Group CFO

Mr. Ayaz H. Shamsi

Group Executive

Mr. Muhammad Ejazuddin

Group Audit &



Human Resources Inspection Head

Mr. Tariq Mohar

Group Business

Support / Collections Head

Mr. Mohammad Asghar

Group Commercial Bank Head

Mr. Ali Sameer

Group Head SAM



Common size analysis of consolidated Balance Sheet

Rs in '000 Common size (%)

assets 2007 2008 2009 2007 2008 2009

Cash/Bal. With Banks 3609108 70463707 35591280 21.5 17.93 15.79

lending to F.Is 4370006 3627557 19050791 2.6 1.89 8.45

Investment (ST) 9190430 33883311 29580252 5.5 17.66 13.12

Advances-Performing (ST) 39489369 43632117 89292490 23.4 22.75 39.61

Other Assets 8641263 2641471 3509351 5.1 1.38 1.55

Total Current Assets 97782157 118177074 177024164 58 61.61 78.54

Investment (LT) 19388131 33623058 25007413 11.5 17.53 11.09

Advances-Performing (LT) 28477494 26423058 10312297 16.89 13.77 4.57

Advances-Non performing (LT) 11813855 5739798 3671991 7.01 2.99 1.62

Operating fixed Assets 2864018 2831534 3884990 1.7 1.48 1.72

Deferred Tax Assets 8297500 5026459 5486357 4.92 2.62 2.43



Total L.T Assets 70840998 73643958 48363048 42 38.39 21.45

Total Assets 168623155 191821032 225387212 100 100 100

Liabilities

B/Payables 1540592 1847025 2991269 0.91 0.96 1.32

Borrowings ST 4004130 174533 174533 2.37 0.09 0.07

Deposits - Current 102568752 118167469 152580240 60.83 61.6 67.69

Lease and Others 8838842 9986608 5933743 5.24 5.2 2.63

Total Current Liabilities 116952316 130175635 161679785 69.36 67.86 71.73

Fixed Deposits 38747422 43998916 37252204 22.98 22.94 16.52

Other Long term Liabilities 21264831 5212755 10883720 6.21 2.72 4.82

Total LT Liabilities 49219400 49211671 48135924 29.19 25.65 21.35

Total Liability 166171716 179387306 209815709 98.55 93.52 93.09

Shareholder's Equity

Share Capital 22481680 5180000 5180000 13.33 2.7 2.3

Reserves 3960453 4258947 4712569 2.35 2.22 2.09

Accumulated Losses/Profits -27282709 -722387 454403 -16.18 -0.38 0.2

Minority Interest 1168264 1271700 1412932 0.69 0.66 0.62

Surplus on revaluation 2123751 2445466 3811599 1.26 1.27 1.69

Total 24541439 12433726 15571503 1.45 6.48 6.9

Common size analysis of consolidated Income Statement

Rs in Millions Common size (%)

ITEMS 2007 2008 2009 2007 2008 2009

Mark up revenue 11468 11385 9269 100 100 100

mark up expense 6347 5476 1931 55.35 48.09 20.83



gross profit 5121 5909 7338 44.65 51.9 79.89

provisions and B/Debts 1263 746 564 11.02 6.55 6.08

Net Mark up Income 3858 5163 6773 33.64 45.34 73.07

Non Mark up Return

Commission & Brokerage 1097 2008 2142 9.57 17.63 23.1

Dividends/Exchange and Others 1818 1514 2803 15.85 13.3 30.24

Total Non Mark up Income 2915 3522 4945 25.42 30.94 53.34

Total Income 6773 8686 11718 59 76.2 126.42

Non Mark Up Expense

Administrative 4669 5879 6639 40.71 51.64 71.62

Other Provision and Charges 632 51 556 5.15 0.44 6

Total non mark up Expenses 5301 5930 7197 46.22 52.08 77.64

Profit Before Extraordinary Items 1472 2756 4521 12.84 24.2 48.77

Extraordinary Items -7200 25 0 62.78 0.21

Profits before tax -5728 2781 4521 49.95 24.44 48.77

Taxation 1739 1319 1704 15.16 11.59 18.38

Profit/Loss after tax -7467 1462 2818 65.11 12.84 30.39

Share of Minority Interest 6 10 21 0.06 0.09 0.22

Accumulated Loss Brought Frd. 19821 27283 722 172.2 210.64 7.78

Adjustment against sh. Capital 0 25202 0 221.36 0

Appropriation and Transfers

Surplus on revaluation of Assets 0 238 0 2.1 0

Transfer to Statutory Reserve 2 332 527 0.02 2.91 5.68

Accumulated Loss Brought Frd. 27283 722 454 237.9 16.34 4.9



RATIO ANALYSIS

YEARS 2007 2008 2009FORMULACurrent Ratio 0.84 0.91 1.15Current Assets / Current LiabilitiesAsset Turnover 0.07 0.06 0.04Markup Revenue / Total AssetsDebt to Asset 0.99 0.94 0.93Total Debt / Total AssetsDebt to Equity 14.54 14.4 13.47Total Equity / Total AssetsCoverage Ratio 0.1 1.15 3.34EBIT / Interest ExpenseGross Profit Margin 44.65% 52.50% 79%Gross Profit / Revenue * 100Net Profit Margin -65.12% 12.69% 30%Net Profit / Revenue * 100Return On Investment -4.43% 0.76% 1.24%Net Profit / Total Assets * 100Return On Equity -887.99% 16.78% 18%Net Profit / Total Equity * 100Advances to Deposit 56.46% 46.74% 45%Advances / Deposits * 100Investment to Deposit 20.22% 41.63% 28%Investment / Deposits * 100Cash Ratio 9.59% 9.23% 28%Cash / Current Liabilities * 100

GRAPHICAL REPRESENTATION OF RATIOS:

CURRENT, ASEET TURNOVER, DEBT TO ASSET RATIO:



DEBT TO EQUITY RATIO

COVERAGE RATIO

Gross Profit Margin & Net Profit Margin



RETURN ON INVESTMENT, RETURN ON EQUITY

ADVANCES TO DEPOSITS, INVESTMENT TO DEPOSITS, CASH

RATIO:



SOME IMPORTANT ABBREVIATIONS

RHQ Regional Head Quarter

TFCs Term Finance Certificates

CDR Call Deposit Receipts

CEO Chief Executive Officer

COD Certificate Of Deposit

CDR Call Deposit Receipt

MICs Monthly Income Certificates

PLS A/c Profit & Loss Sharing account



DD Demand Draft

MT Mail Transfer

TT Telegraphic Transfer

IBC Inward Bills Collection

IBCA Inward Bills Collection Advice

OBC Outward Bills Collection

OBCA Outward Bills Collection Advice

OD Over Draft

ATM Auto Teller Machine

DA Delivery against Advance

DP Delivery against Payment

LC Letter of Credit

SLC Sight Letter of Credit

ULC Usance Letter of Credit

B/L Bill of Lading

FOB Free On Board

B/E Bill of Exchange

E-Form Export Form

T-Bills Treasury Bills

PIB Pakistan Investment bonds (common bonds)

SME Small & Medium Enterprises

CIB Central Information Bureau (of SBP)

LPR Leaves Prior to Retirement

TC Trade Checking

CRM Credit Risk Management

SEVP Senior Executive Vice President

GDP Gross Domestic Product

CRM Customer Relationship Management

CBG Corporate Banking Group



IPO Initial Public Offerings

CDB Central Data Base

CCD Control and Compliance Department

PO Pay Order

CSO Customer Service Officer

NTN National Tax Number

NAB National Accountability Beauru

SDR Security Deposit Receipt

CC Cashier’s Cheque

ATR Asset Turnover Ratio

