internship report of ubl for finance
TRANSCRIPT
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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
mailto:[email protected]:[email protected] -
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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.
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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.
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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
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CONTENTS
1. Executive Summary. 82. Introduction to the Report 9
Purpose 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 structure
7.1 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 Department
9.1 Job/Work/Tasks system of the organization 789.2 Decision-making environment 78
10. Critical analysis of the theoretical concepts relating to practicalexperiences i.e. relate the theoretical concepts with your practicalexperience during your Internship with the Department10.1 Common-size analysis of consolidated balance sheet 79
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10.2 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 . 9114. Bibliography .. 9415. Annexes 95
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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.
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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.
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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.
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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.
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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 Banquewhich
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 STAGEin the development of modern
banking, thus, was the accepting of deposits of cash from those persons who had surplus
1 Introduction To Banking
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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
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 STAGEin 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
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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.
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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
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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.
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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
UBLs subsidiary .The head office was at Dhaka.
With its shortest span of time UBL emerged as dynamic and large international
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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 31 st 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
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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
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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)
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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
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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.
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It is involved in both corporate and retail banking.
Advances investment of the bank shows a constant growth pattern. The current
years 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 banks
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.
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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 companys 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
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No stable government in Pakistan, Government policies change with the change
of government.
The concept of evening and Saturday banking, telephonic and online banking,
ATMs 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.
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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?
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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?
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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 banks 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
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internal system support the aggressive consumer initiative and explorations of new
avenue generation. The first step under this initiative is the launch of the banks 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
customers 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
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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.
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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
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MANAGEMENT OF UBL:
Senior Management of UBL
Sheikh Nahyan Mabarak
Nahayan chairman
Sir Mohammad AnwarPervez Deputy Chairman
Amar Zafar KhanPresident
M.A MannaDeputy CEO
Nauman Hussain
Director Operations &UtilitiesMansoor M. Khan
Head Corporate BankingGroup
Shaharyar AhmedHead Investment Banking
group
Shahid Waqar MehmoodHead Commercial bank
Risha Moheyuddin
Global Treasurer
Khalid Munawar-ud-din
Head Credit PolicySupervision
Muhammad EjazuddinAudit Chief
Mehboob A.KhanAman Aziz Siddique
Head InternationalOperations (Dubai)
Rukhasana AsgharGlobal Head Human
Resources
Ali sameerChief SAM (domestic)
Ameer KarachiwalaChief financial Office/HCA
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FUNCTION HIERARCHY:
Organizational Hierarchy of UBL
Chairman
Deputy Chairman
Board of Directors
Executive Committee
Managing Director
SEVP
EVP
VP
Officer Grade-I
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Organization Chart at Attock City Branch:
Non Clerical
Staff
Clerical Staff Officer
Grade-II
Officer
Grade-III
Branch Manager orArea Operational Manager
Accounts &CustomerService
Cash &Clearing
Bills &Remittances
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UBL SETUP
BOARD OF DIRECTORS
EXECUTIVE COMMITTEE
Treasury &CapitalMarket
CorporateBanking InvestmentGroup ConsumerBanking HumanResourceMgt.
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BOARD OF DIRECTORS
Board of Directors are the owners of the bank and governs the Banks 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.
FinanceDepartment
MarketingDepartment
ITDepartment
Audit&
Inspection
Service&
Quality
AgriLoans
ComercialBanking
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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 banks 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
customers thereby capturing significant market share.
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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 JuneOn 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:
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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
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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
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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
http://www.ubl.com.pk/consumer/creditcard/http://www.ubl.com.pk/consumer/business/businessline.asphttp://www.ubl.com.pk/consumer/cashline/http://www.ubl.com.pk/consumer/address/http://www.ubl.com.pk/consumer/drive/ubl_drive.asphttp://www.ubl.com.pk/consumer/creditcard/http://www.ubl.com.pk/consumer/business/businessline.asphttp://www.ubl.com.pk/consumer/cashline/http://www.ubl.com.pk/consumer/address/http://www.ubl.com.pk/consumer/drive/ubl_drive.asp -
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PLS Term Deposits
PLS Savings Accounts
Uni-Saver
Remittances
Learning as an Internee from the Management Side:
Customer Service 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
PLS Term Deposits
PLS Savings Accounts
Uni-Saver
Funds Transfer:
http://www.ubl.com.pk/consumer/pls_terms.asphttp://www.ubl.com.pk/consumer/pls_saving.asphttp://www.ubl.com.pk/consumer/unisaver.asphttp://www.ubl.com.pk/remittances/http://www.ubl.com.pk/consumer/creditcard/http://www.ubl.com.pk/consumer/business/businessline.asphttp://www.ubl.com.pk/consumer/cashline/http://www.ubl.com.pk/consumer/address/http://www.ubl.com.pk/consumer/pls_terms.asphttp://www.ubl.com.pk/consumer/pls_saving.asphttp://www.ubl.com.pk/consumer/unisaver.asphttp://www.ubl.com.pk/consumer/pls_terms.asphttp://www.ubl.com.pk/consumer/pls_saving.asphttp://www.ubl.com.pk/consumer/unisaver.asphttp://www.ubl.com.pk/remittances/http://www.ubl.com.pk/consumer/creditcard/http://www.ubl.com.pk/consumer/business/businessline.asphttp://www.ubl.com.pk/consumer/cashline/http://www.ubl.com.pk/consumer/address/http://www.ubl.com.pk/consumer/pls_terms.asphttp://www.ubl.com.pk/consumer/pls_saving.asphttp://www.ubl.com.pk/consumer/unisaver.asp -
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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
4) Transaction ledger
5) Pay-In-Slip record
6) Cheque book record
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7) Cash balance book
Structure of the Department/s
Employees working in Departments:
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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
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.
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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. Its 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.
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Commercial Banking
To stand tall among the worlds 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.
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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)
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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.
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UBL e-statement:
During your busy hours, you dont have to bother about visiting us to get your
account statement. Neither theres 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
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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)
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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
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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.
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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
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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:
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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
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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.
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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?
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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.
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a) Closing an account.
Closing of ones 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.
)) 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.
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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?
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If a person have account with UBL and not used since last six months, any deposit or any
withdrawals doesnt 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 persons account and account will become active,
)) 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
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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. Drawees a/c title
4. Amounts in words & figures
5. Two signatures at the back
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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 customers 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.
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CASH RECEIVED
For depositing the cash into customers 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
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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
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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.
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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
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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.
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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.
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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
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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
Payees 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:
Date
Amount
Pay
In words
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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
If cross Cheque presented of the same bank but branch is different like Cheque of
UBL Islamabad is presented in UBL Attock because payees 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 payees account
TRANSFER OF AMOUNTS FROM ONE ACCOUNT TO ANOTHER
ACCOUNT IN DIFFERENT BANKS
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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
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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
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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) Cashiers 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.
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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) Cashiers Cheque CC
b) UniRemote
c) Security Deposit Receipt SDR
d) Telegraphic Transfer TT
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CASHIERS CHEQUE
Cashiers Cheque is a negotiable instrument, which is drawn by one branch to
another branch of the same bank. In case of agency arrangements Cashiers 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 Cashiers Cheque. Bank charges a commission for performing
this kind of service according to bank rate schedule, which is revised after six months.
Cashiers Cheque can be issued or paid; there are two ways to issue Cashiers Cheque
a) Issue of CC against Cash
b) Issue of CC against Debit of Account (By Cheque)
Issuance of Cashiers Cheque:
When a customer requests UBL Attock City to issue him a Cashiers Cheque made
on his account or against cash payment for a particular city like Islamabad. Then after
having the total amount including commission, Cashiers 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 Cashiers Cheque, it constitutes the inward clearing of UBL,
Islamabad.
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When UBL receive the Cashiers Cheque then it pass following entry.
Entry:
Dr: Head Office Account with Treasury
Cr: Cashiers 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
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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 Cashiers 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 Cashiers 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.
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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 UBLs 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
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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
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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 firms 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.
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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 cur