part ii.doc internship report ubl

8/14/2019 Part II.doc internship report ubl

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Executive Summary

It is important for any country to make his economy strong. Banking operations and

services are one of the basic needs of an economy. These include acceptance of deposits

and disbursement of advances to individuals and others at higher rates. Banks performvarious fundamental factions, which are directly or indirectly contributory towards

economic and social development of countries. Financing is a practical function of a bank

through which pace of activity accelerated in various sector of economy. Through this

medium the wheels of trade, commerce and Industry are set in motion and effective

financial contracts maintained with people in every occupation. The world has entered

into a new era so has banking.

This Internship report is actually a brief discussion of the functions and departments of

the banks. In account opening department customer has to open an account and meet the

general banking manager with document which is necessary for account opening. Bank

does not pay any profit on current deposits. The following are the financial

products/services of P! "ccount, !aving "ccount, uni#saver, uni#fle$ and foreign

currency accounts.

In remittance department like other banks %B also have instruments for transferring of

money, Telegraphic Transfer, &ail Transfer. In cash department both deposits and

withdrawals go side by side. This department works under the '( In charge and deals

with cash deposits and payments. The clearing with banks is being done through )IFT

*)ational Institute of Facilitation Technology+.

%B Provides advances, which are two types, secured "dvances, unsecured "dvances.

Bank classified advances in to following types 'ommercial "dvances, 'orporate/!&-s

"dvances, "gricultural "dvances. Banks "griculture division deals with the agriculture

advances. Bank provides the "griculture "dvances in order to enhance and support the

agriculture sector of the country, Farm 'redit )on Farm 'redit. In foreign e$change,

%B is dealing Foreign 'urrency "ccounts, Foreign emittances, and Foreign Bills for

'ollection, Imports $ports and recommending some suggestions.

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INTRODUCTION OF ORGANIZATION

In 6une 5787, &r. "gha 0assan "bidi decided to open a bank different from others to

provide modern banking facilities to trade and industry and to promote the habit of saving

among common people. "ll the formalities have compiled for registration certificate toget the permission of !BP to start business.

%B, a commercial bank was established on 9th)ovember 5787as result of reckless

efforts made by "gha 0assan "bidi. Its head office was in new :ublliee insurance house,

I.I. '0%)(I;" 3"(


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resources mobili?ation through regular deposit campaign and accelerating the process of

recovery of outstanding advances and nonperforming assets.

%B was nationali?ed in 579 but it is privati?ed in =@@= as ;ovt. handed over the

management of %B, the third largest party of the country, to the successful bidder

#'onsortium of "bu (habi ;roup *%"+ Best way 0olding imited *%


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Bar! " Directr#

Re$i#tere! O""ice

5 Floor, %B Building,

6innah "venue, Blue "rea Islamabad, Pakistan

%ea! O""ice

!tate ife Insurance 'orp. Building 5,

I.I. 'hundrigar oad, @A

PhoneJ *7=#=5+ 555#H=8#555

;ramJ K%)IT(K

Fa$J *7=#=5+ =>5>7=

&i#i'

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NA(E DESIGNATION0is 0ighness !heikh )ahayan &ubarak "l )ahayan 'hairman

!ir &uhammad "nwar Pervai?, 3B, 0P< (eputy 'hairman&r. "tif . Bukhari President '3

&r. 3mar C. "l "skari (irector

&r. Cameer &uhammad 'haudary (irector

&r. "hmad 4aDar (irector

&r. 6aved !aDib &alik (irector

&r. Tehsin


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To be a world class bank dedicated to e$cellence, and to surpass the highest e$pectations

of our customers and all other stakeholders.

(i##i'

3ur mission is toJ5. !et the highest industry standard for Duality across all areas of operation, on a

sustained basisL

=. 3ptimi?e people, processes and technology to deliver the best possible financial

solutions to our customersL

. Become the most sought after investmentL

>. Be recogni?ed as the employer of choice.

O)*ective#

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o To uplift the bank in the banking scene as the best where you come first

o To be a high rank commercial bank in Pakistan and in overseas

o To accelerate deposit growth by attracting more customers

o Fully utili?e its capital

o To satisfied customer need and meet their e$pectation

o Be innovative, progressive and responsive to the needs of its customer with in

the frame works of operational latitude and risk taking, gearing in mind

responsibility as a custodian of depositor-s fund.

o To contribute well in foreign e$change by providing services abroad the

country.o To contribute in the economic growth in the country by generating huge profits.

o To assist the agriculturalists and businessmen by providing them credit at low

rates.

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Bu#i'e## a'! !e+artme'ta, ,eve, #trate$ie#-

The department level strategies are made at top level. Planning and control

commission are consulted before making these types of strategies. I will take help

from the customer service manager *'sm+ to write these strategies he said that it is

set at top level and not fully communicated at branch level. But he has known these

strategies to great e$tent.

Strate$ie# " !i""ere't !e+artme't#-

(epartmental wise strategies are written below

Sa,e a'! accu't +e'i'$ !e+artme't.

Boost up the deposit by caring the customers and providing them convenience, safety and

profit.

Frei$' exc/a'$e !e+artme't.

To increase foreign e$change reserve and deposits by serving the customers at branch

level and proper reporting to the !BP about the non resident accounts.

C,eari'$ !e+artme't.Time management and balancing at all hands of clearing with in the shortest time period

as possible

Remitta'ce !e+artme't.

'ost leadership for inward and outward remittance.

Lcer# !e+artme't.

Proper security provided to client and strict security measures should be adopted with

cost leadership

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ORGANIZATIONAL STRUCTURE

***3rgani?ation 'hart at Branch evel +++

(a'a$eme't %ierarc/y(a'a$eme't %ierarc/y

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"rea &anager *".&+

Internal "udit Branch &anager 'redit 'ommittee

'ustomer(eposit

'ash 'learing

Bills emittances

&arketing "dvances "ccounts

I.T Foreign

$change


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President President

!enior $ecutive 1ice President!enior $ecutive 1ice President

$ecutive 1ice President$ecutive 1ice President

!enior 1ice President!enior 1ice President

1ice President1ice President

"ssistant 1ice President"ssistant 1ice President

3fficer ;rade 53fficer ;rade 5

3fficer ;rade =3fficer ;rade =

3fficer ;rade 3fficer ;rade

3perational !taff 3perational !taff

De+artme't#

"ccount opening department

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Foreign e$change department

emittance department

'ash department

"dvances department

'learing department

ockers facility

Bill collection department

"T& electronic card and %B 3&)I

&arketing department

Accu't +e'i'$ De+artme't

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future discrepancy gives 'ustomer. *!pecimen is enclosed+.

C/e4ue ) re4ui#iti' #,i+3

It is a slip filled by the client to issue him a cheDue book with certain number of leaves

as desired by a customer. "s per the reDuest of customer bank debited the party account

for 'heDuebook issuance charges. 4ith in >#9 days client can take his 'heDue book

from branch or directly dispatched by head office to its mailing address. *specimen is

enclosed+

Ty+e# " accu't#L

" customer can open the following ma:or three types of accountsJ

5# P!#!aving "ccount.

=# 'urrent "ccount.

# Foreign currency account.

15 Ty+e# " #avi'$ accu't-

I LS u'i #averIt is the type of saving account in which profit will be calculated on monthly average

balance but profit will be disbursed after si$ months. 4ith holding ta$ will be deductible

from profit according to the laws of income ta$.

The pro:ected rate of uni saver a/c for monthly minimum balance up to Rs.=8 million for

the month of *6uly5#sep@+ is 8.@@E.

II LS u'i #aver +,u#

It is same like uni saver but the difference is that branch takes the approval from head

office and profit will be calculated daily on day end balance. The profit will be disbursed

monthly at the beginning of each month.

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For the withdrawals up to or greater than @@ million, days advance notice shall be

reDuired. . 4ith holding ta$ will be deductible from profit according to the laws of

income ta$.

III LS ru+ee tra'#acti'a, accu't

It is the type of Pls account in which customer can do all transactions like current

account. But saving rate is applicable on this account. It for the ease of the people who

want to do saving and also to get the saving profit on their deposit.

IIII ,# u'i ",ex accu't

It is the saving account which can only be opened by individual, :oint account holder andsole proprietorship whereas corporations and partnership are not eligible for this account.

Profit should be calculated on monthly basis but on minimum balance of month and

disbursed on si$ month basis directly in to the account.

In this account depositor can take only three free of cost transactions in a month. But not

limited to net banking. "fter three debit transactions the bank charger Rs.5@@ per

transaction for any withdrawal.

The pro:ected rate of uni fle$ a/c for monthly minimum balance up to Rs.5@@@@for the

month of *6uly5#sep@+ is 8.@@E."s the limit of deposit increase the rates increases on

the amount of deposit.

6 U), Fir#t (i'r ,# Accu't

It is a single *individual account+ opened on the behalf of minor by the father or court

appointed guardian. The title of account will be father name/court appointed guardianG.

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These are also responsible to operate the account. For opening it reDuire CNICof father

or court appointed guardian andB-FORMof &inor.

They father or court appointed guardian can also apply for wallet visa debit card on

behalf of principal. The rate of interest on this account is always 8.@@E with no limitation

of amount.

25 Ty+e# " curre't accu't.

UBL )u#i'e## +art'er

It is the type of current account in which account holders have no limit to the number of

transactions done on daily basis. It is suitable for the business persons. They can open the

account individually, :oint, or with :oint stock company, association and clubs.

It has the limitation that bank can deduct the incidental charges of monthly proceeding

the accountRs.8H whenever your account balance is less thanRs. 5@@@@. It is not saving

account so customer cannot take any rate of return on it.

UBL BBA ACOOUNT

It is the type of current account with ma$imum of two deposit and two withdrawal per

month allowed free of charges. 'harges will be charged by bank if customer e$ceeding

two transactions.

It is also e$empted from levy of service charges. "ny e$isting customer can convert his

account to BB" account by giving application to manager with the copy of ')I'.

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The customer must have to open his account with our branch, because without it we

cannot enter into the foreign e$change transactions. !o a depositor opens an "ccount

with the Bank in any form likeJ

Individually

6ointly

Partnership

'orporation

But mostly farid gate branch deal in individual nature of foreign currency accounts .

Foreign currency accounts are two typesJ

esident.

)on# resident.

Foreign $change (epartment of the Bank accepts under noted Foreign 'urrency from

account holders. !tate Bank of Pakistan provides e$change rates on daily basis. "nd

daily transactions are recorded at their current e$change rates. The bank deal only in

four currency at Farid ;ate Branch.

%! (ollar

;B Pound !terling

6apanese 2en

uro

O+e'i'$ " Frei$' Curre'cy Accu't.

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"ll foreign currency accounts are open under the F. 25. "nd open like normal

account opening form, an account opening form is provided to prospective customer.

"t the same time introduction of that customer is important condition so that provided

information by customer may be got authenticated. "n e$isting account holder may

introduce the incoming customer. The &anager takes new "ccount holder-s specimen

signatures on specimen 'ard in order to avoid future problems. "t the occasion of

withdrawal of funds "ccountant compares the signatures on cheDues to the provided

!pecimen of !ignatures so that genuineness of the cheDues may be verified.

"t the time of depositing funds the amount of funds is debited

.

Foreign 'urrency 3n 0and "ccount. (r.

Party-s /"ccount 0older-s "/'. 'r.

"t the time of withdrawal of funds the amount is credited.

Party-s /"ccount 0older-s "/'. (r.

Foreign 'urrency on 0and "ccount. 'r.

r!uct# " Frei$' Exc/a'$e De+artme't

Foreign $change department have following products

TEZ RAFTARJ

It is a free doorstep inward remittance with in the country or from abroad. In case of

abroad it is converting in pak rupee at head office level. It is the fastest and most

convenient product of remittance available at all branches of %B.

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T2P! 3F TC "FT"

(irectly in account

In case of ubl account holder amount will be directly credited to customer account

TC "FT" cheDueTe? aftar cheDue is issued in case of account holder other than ubl.

TM IBM

In case of any discrepancy occur than amount transfer to this account and after

removing it and proper verification the amount will be credited to concerned account

8IFTT5 I'9ar! Frei$' Te,e Gra+/ic Tra'#"er-

This is most rapid method to transfer funds. 'oding &essage is sent through

Telegraphic message 3 on Phone. Iftt has a swift code. It is for the account holder

only. The %bl swift code is 8UNIL::A5!wift stand for *society of world wide

international financial transaction+. Iftt message is sent to concerned branch and the

make *IBT("+ inter bank transaction debit advice *specimen is enclosed+.

"nd "t branch level entry is passed as under

'oncerned bank (r.

Beneficiary 'r.

8IFDD5 IN;ARD FOREIGN DE(AND DRAFT-

The demand draft is a written order is being given by the issuing Bank on it-s own

behalf to it-s other Branch of the same Bank to pay the certain amount to the concerned

person. The amount, date and beneficiary name address and account number is mention

on this instrument.

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;e#ter' u'i'-

it is also the form of foreign remittance having 5@ digits code. It is having no need of

bank. "ppro$imately it has more than 8@@@@ agents in all over the world. The message

is sent to the beneficiary name and he can take it after giving the copy of ')I' and

proper verification by the authori?ed dealer of western union.

8Cc5 Ca#/ ver Cu'ter-

It is same like western union but it has only a difference of digits. For 'oc bank is

necessary because foreign bank issue the digit code to remitter and the name and detail

of beneficiary are mention on this message. Beneficiary can take money from the bank

after proper verification.

LETTER OF CREDIT-

It is an instrument in which importer bank provide surety to the e$porter bank and

reDuested to open the captioned .' and authori?ed to debit account with them in

respect of margin, commission and other charges.

This document is issued by the buyer-s bank when promises to pay the seller the

specific amount when the bank has received certain documents stipulated in the letter of

credit by the specified time.

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RE(ITTANCES DEART(ENT

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

same bank is called remittance. )ow 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 cityor 3utside 'ity.

ARTIES IN&OL&ED-

In case of remittances normally two banks are involved, are as under

Ori$i'ati'$ Ba' Bra'c/

It is the branch, which issued the instrument for remittance.

Re#+'!i'$ Ba' Bra'c/

The branch that receives the instruments for remittances, also known as drawee-s

branch.

T


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sensitive department of the branch. )o other person is allowed to enter in the premises

of cash department. "s obvious from name that this department deals in cash deposits

and payments. 'ash department is performing its functions/duties through uni#bank

which is the banking software.

;ri'$ " Ca#/ De+artme't

ROCEDURE FOR CAS% A


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If the cheDue is up to or less than =8@@@ then officer can sanction and in case of greater,

than he has to get approved from his '!&. Finally, after all verifications of the cheDue

it is given to the cashier, then payment is made to holder of the cheDue

.

ROCEDURE FOR CAS% RECEI&ED-

For depositing any amount in the account Pay#In#slip is used that is filled by the

customer. The depositor signs the part of the paying slips, which are retained by the

bank to show acceptance about the entries, made in pay#in#slip.

The 'ashier, at the end of the day has to maintain and balance the cashbook on uni

bank. The cashbook contains the opening balance, details of payments and receipts.

The method to calculate the closing balance is

C,#i'$ Ba,a'ce = O+e'i'$ Ba,a'ce > Recei+t ? ayme't#

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ADVANCES DEPARTMENT

The lending function of the banking for the production purposes is called "dvances.

Ty+e# " A!va'ce#

There are two main types of advancesJ Funded , )on#Funded

Fu'!e! La'#

"re the loans in the form of physical cash. The interest charged on the funded loans is

called mark#up.

N'?Fu'!e! La's

"re the loans in the form of guarantee. These are also called the 'ontingent iability

8at the moment these are not funded but in some future date it may be funded if the

person doesn-t pay the amount.

It is ma:or part of the branch. Bank provides this facility to the people who need advance

money to meet their reDuirements. The function of "dvances and 'redit (epartment is to

lend money in the form of clean advances, against the promissory note, as well as secured

advances against tangible and marketable securities.

For getting the advances, the first step is the preparation of credit proposal. !ome

principles of lending are considered whenever financing is made. These principles areJ

'haracter

'apacity

'ollateral

'apital condition

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Nature " r!uct#-

Ru''i'$ Fi'a'ce3

The lending product which was called overdraft before Islami?ation of Banking system

in Pakistan has been named unning Finance in the post#Islami?ation era. This is

temporary facility when drawing is allowed in e$cess of the credit balance in account.

There are two main types of products of finances

5# )I(F =# )I'F

N' I'tere#t Dema'! Fi'a'ce 8NIDF5

It is the name of what was previously called (emand loan or Fi$ed oan. It is the credit

facility for a fi$ed amount for a fi$ed specified period. %sually the period is one year

and if the e$tension is desired, the limit is renewed on yearly basis. epayment is made

in periodical installments.

The limit is automatically reduced with each deposit made into the account by amount

of the deposit. It means when a customer pays some installment to the bank then he or

she couldn-t withdraw that amount again because reimbursement is used only for the

ad:ustment in )I(F. "nd ad:ustment means when a customer repays some amount of

loan then the bank credit this amount for permanent basis In this case the markup is

charged from the date of issuance of credit facility to the date of maturity.

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Area# " NIDF

)I(F finances in three areasJ

'ommercial

"griculture

Industrial

UROSE OF AD&ANCES

People take advances for the following purposes

1? Fr Cmmercia, +ur+#e-

The purpose of )I(F for commercial area is for running e$penses "nd running

e$penses are the operating e$penses of the business other than the fi$ed e$penses. "nd

fi$ed e$penses are of three types *5#and, =#Building, #&echinery Duipment+. !o

other than these e$penses all the business e$penses are called the operating e$penses

like utility bills, salaries, purchase of raw material, inventory cost etc.

2? Fr A$ricu,tura, +ur+#e-

There is separate department of agriculture but it come under the advances

There are two purposes for the loaning of agricultural purpose

Fr I'+ut#-

Inputs means the purchase of !eed, Fertili?er and pesticides

Fr Fixe! A##et# -

It is to purchase the fi$ed agricultural eDuipments like tube well, tractor etc.

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Fr I'!u#tria, Area-

The loaning purpose is to do the fi$ investment or to purchase the fi$ed industrial assets

like and, Building, and &achinery Duipment.

NON?INTEREST CAS% FINANCE 8NICF5

It was previously also called 'ash 'redit. This facility is usually e$tended against

pledge or hypothecation of goods, products, or merchandise. &arkup is payable on he

amount actually utili?ed bye the customer

It is also called the imit Financing. )I'F is to meet the working capital *running

e$penses+ reDuirements. It has the checDuing facility as well which means the bank

gives a cheDue book to the borrower through which he or she can withdraw the amount

within the approved limit.

(ebit / credits are allowed to the e$tent of approved limit which means the borrower

can withdraw the repaid amount as well.

&arkup is charged on daily product basis *only on utili?ed amount and period of

utili?ation of loan+

But in )I'F when you credit *repay to bank+ some amount of borrowed money then it

can again be withdrawn but before the maturity of facility.

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CLEARING DEPARTMENT

This department welcomes the cheDues and other negotiable instruments drawn upon

local branches of other banks. !tate Bank of Pakistan has a clearinghouse, in which the

bank representative brings cheDues and other Institutions and mutual claims of each

bank on other are off set and a settlement is made by the payments. 'learing system is

helpful for both the customers and bank in saving of time, labor and currency

involvement.

%9 it# 9r a'! ey r,e " Ni"t i' c,eari'$

)ational institutional facilitation technologies came into e$istence in may =@@A.)IFT

play an important role in clearing. Its main responsibility is to pick and drop

instruments from one bank and reali?e it from other banks and report to state bank of

Pakistan. )IFT deduct charges of its duty.

UBL is a member of )IFT. )IFT stand for Nati'a, I'#tituti' Faci,itati'

Technology. Through which branches forward and receive clearing cheDues, with a

schedule, conducts clearing. The clerk of forwarding branch prepares the schedule and

vouchers of all the clearing cheDue, which he received on that day and sends these

cheDues to the checking officer. 'hecking officer passes these cheDues and vouchers by

his initials, endorsement stamp and branch special crossing stamp. 'lerk posts the

contra entries of these vouchers in the clearing register.

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IN;ARD CLEARING-

The bank that has to pay the amount it goes in the process of Inward *internal+ 'learing.

0e has to scrutiny *'heck+ that is the cheDue issuer has the sufficient amount or not.

OUT;ARD CLEARING-

The bank that receives the cheDue of another bank it goes in the process of outward

clearing. Because the bank is inspecting about a person who has an account in another

bank.

CROSS C%E@UE-

'ross cheDue is a cheDue through which the amount is transferred from

one account to another account. )o body can withdraw the amount directly

by this cross cheDue even the favoree himself until this amount is credited

in his "/c. Then he can withdraw that amount from his own "/c.

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LOC:ERS FACILIT hours. From this card you can only withdraw =@@@@ cash with in => hours. The

yearly charges of atm silver card are s.8H.

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U), 9a,,et &i#a G,! Atm car!-

It is also issued to account holders ;old visa card has greater limit of withdrawal of cash.

2ou can withdraw up to >@@@@ cash with in => hours. The yearly charges of atm gold

card are s.8H@.

Di#+#a, " atm car!-

" customer can take his atm card from branch with in the A@ days afar the date of receiptthese card in branch. "fter passing A@ days cards are couriered to the mailing address of

customer. If card are not delivered to customer then return back to bank.

"fter it bank retain card again for @ days. If with in this time period customer cannot

receive it then card will be destroyed by supervisor and reported to head office.

;i car!-

It is a prepaid visa card. This card is for the specific target market which is un# banked

and not has bank account. !o %bl give him a product to deal with the bank. !o bank give

him a card same like atm card but the difference is that it is issued to non account holder.

&ostly it is used by the teenagers. 'harges are only at the time of card issuance. For

5@@@@ or less than card issuance charges are s.5@@NF(.

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UBL O(NI-

It is a branch less banking. It now brings a host of banking services to your nearest

dukaanG. %bl omni dukaan are located at more than 5@@ cities and towns in Pakistan.

very %B 3&)I (ukaan is empowered to provide the following servicesL

"ccount opening.

'ash deposit.

'ash withdrawal.

%tility bill payment.

&oney transfer.

&obile voucher payment.

Post mobile bill payment.

It enables you to open an account t allocation of your convenience. "fter opening an

account you can operate it from omni dukaan or branch of ubl.

Ty+e# " accu't-

It has provided only two types of accounts in omni (ukaans

Individual account

Business account

&inimum balance !.8@@ is reDuired to be maintaining a ubl omni account. It only offers

the current account and also be e$empted from ?akat.

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(areti'$ De+artme't

This is age of competition and every organi?ation is facing hard competition from not

only domestic organi?ation but also from the international organi?ations due to

globali?ation. (ue to this competition the marketing department plays a vital role in

the success of the organi?ation.

In Bahawalpur branch there is no marketing of ubl financial products. ven only

single person is not authori?ed by head office in this region for the familiari?ation of

products. 3nly mangers are marketed the persons to get the deposit. "t the launching

of financial products marketing campaign should be run in big cities and neglected

this area. Proper awareness and orientation should not be provided. The location of

branch and all tangibles at Bahawalpur level are not in satisfactory condition.

In the branch there is no proper marketing activities are follow seriously and I

observe some pointsJ

ack of marketing at desk due to lack of training and awareness among

employees.

ack of promotional activities.

ittle attention to the apparent conditions of the bank e$terior, interior layouts and

design of furniture in the branch.

Through the proper &arketing and promotional activities organi?ations are

successful to achieve the ob:ectives3b:ectives for %B clearly defines what the bank

want from its target market and potential customers. !o to achieve organi?ational

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ob:ectives it is necessary to understand the target market. )ot only to get deposit from

them but also ensure that financial products are sell to them. 3nce the deposits collection

is developed as Duantifiable ob:ective, the 0ub branches must determine to whom they

will be selling their new financial packages.

Su$$e#ti'# "r (areti'$ De+artme't

For the improvement of marketing activities some suggestions are as under

Fi'a'cia, +aca$er!uct-

This is the service which is provide by the bank to its target market as a result of which

bank gets deposits and customer takes profit and keeps his money safe. !o the financial

product should be properly communicated to customers.

Bra'!i'$-

Branding is the naming of new#marketed financial. This brand or name of service

associates with it should be such, which could communicate some message and attract the

customers. !o proper branding of top product is necessary.

A!verti#i'$ (e!ia-

Promotional campaigns provide added incentive, encouraging the target market to

perform some incremental behavior, which is highly necessary. 'ommunication with the

target market should be always there and lectronic and Print &edia should be used for

promotion of financial product.

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r"it erce'ta$e-

The percentage of profit, which the customer e$pects receives from the bank against his

deposits in a scheme of financial package and the time frame to get the profit should

communicate to customers.

A++eara'ce-

Physical appearance of the location and inside the building also matters. It helps a lot to

attract the customer. !ome branches of UBLare very attractive but all the branches

should be well dressed.

By following these suggestions the region of Bahawalpur move towards achieving the

Targets and growth.

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Rati A'a,y#i#

RETURN ON ASSETS-

5.8H 5.H 5.>H

2008

2011

0

0.5

1

1.52

2.5

Return on

assets

2008

2009

2010

2011

2012

!ince the computed ratio of eturn on "sset has increased in =@5= as compared to =@55 it

shows the good performance of the "ssets of the bank. 3ver all there is a generalincreasing trend in the five year of analysis. $cept for the year =@@H where it decreased

significantly.

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E4uity t !e+#it# Rati-

7 [email protected]

A7.@9 5=.H

!ince the computed value of eDuity to deposit ratio shows that there is an increasing trend

in the five years. But as an e$ception there is a decrease in year =@55.

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2008

2011

0

2

4

6

8

10

12

14

Equity todeposits Ratio

2008

2009

2010

20112012


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A!va'ce t De+#it Rati-

=


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E4uity t A##et# Rati-


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De)t?Rati-


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LOAN TO ASSETS:


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!ince the values of the profit before ta$ shows over all increasing trend in the Duarterly

results which shows the performance of the bank is good but the rapid decrease in last

Duarter of (ecember =@@H is because of impairment loss. This can be considered as

unusual item.

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!ince the trends in deposits in different Duarters of the years shows that the values are

increasing and decreasing in different Duarters. 0owever the decrease in Duarter 6une

=@@7 to !eptember =@@7 is decreasing rapidly.

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!ince the value shows that there is an increasing trend in the values of the net interest

income which shows that the bank is good in its core business of lending money to itscustomers.

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!ince the values of the profit after ta$ shows over all increasing trend in the Duarterly

results which shows the performance of the bank is good but the rapid decrease in last

Duarter of (ecember =@@H is because of impairment loss. This can be considered as

unusual item.

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S;OT a'a,y#i#

I'ter'a, Stre'$t/# -

The internal competencies possessed by company over its competitors are called

strength.

3wnership of !trong ;roup.

'ash receipt machine *located at


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INTERNAL ;EA:NESSES -

The internal attribute of bank to decrease in comparison with competing banks.

ack of promotional *advertising+ activities.

'entrali?ation authority

. &anager cannot take initiative regarding different decisions

ow Promotional "ctivity only =E of total staff.

ow &otivation evel

%B follow the eactive "pproach slow and are reluctant to take initiative before

the problems arise.

The bank has large number of employees who are simple graduates with no

banking knowledge.

%nsatisfactory working conditions.

3ver burden on some employees.

ack of modern eDuipped facilities.

The apparent conditions of the bank e$terior, interior layouts and design of

furniture seating arrangements in the branch are not satisfactory.

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

and performance outputs.

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E7TERNAL OORTUNITIES -

3pportunities are chances to follow anew or revised strategy or businessL whish should

be benefited to company.

international e$pansion ubl, have overseas branches, it will the great opportunity

for the bank if it offer the online services with new techniDues it will be the

greater advantage over other competitor.

3utsourcing of promotional companies or use of available e$cellent promotional

facilities.

ntering new market segments.

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

There is a large pool of unemployed &B"s who can be hired to achieve

professionalism on its organi?ational culture.

%bl has a large network of branches, but these are not fully eDuipped, while other

bank offering modern services, so management has opportunity to eDuip them

modern facilities.

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E7TERNAL T%REATS-

Threats are the reasonably probable and more or less sudden events, which can

seriously hamper the organi?ation ability to serve its customer.

The political and economical condition of Pakistan are not stable, it is a great

threat for all financial institution.

The political influence affects the performance of bank very badly. &ost loansbecome the bad debts.

'ompetition can be the greatest threat for the %B. so %B will face a strong

threat from this competition unless the adopt pro O active approach to handle

these threats.

$tensive promotion campaigns run by competitors.

'ustomer Behavior the changing needs of the customer can be a threat for the

banks.

'ompetition Increase due to increasing number of foreign and domestic private

banks offering highly speciali?ed and attractive services.

;lobal technological advancements and adaptation of modern style of

management in banking sectors.

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SUGGESTIONS

ecommendations are based on the previous brief discussion about the united bank

limited.

Build strong relationship with customer.

The apparent conditions of the bank e$terior, interior layouts and design and

arrangement of furniture in the branch should be very attractive modern and well

furnished.

Parking place should be increased.

There should be proper Product &arketing to aware the customers.

Promotion E should be increased.

Proper promotional and advertising activities should be done.

Proper training should be provided to employees specially while launching new

products. 4ork Burden should be decreased and salaries and incentives of employees

should be increased.

ducate account holders about products in a simple way.

Bank should adopt pro#active approach to deal with problems and threats.

educe comple$ity in advances department.

%bl has internationali?ed too few countries. International e$pansion can become a

new segment for it.

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CONCLUSION

I have to e$press my e$perience of internship in U'ite! Ba' Limite! m!e, t9'

Bra'c/8015 Ba/a9a,+urI would briefly sayJ

U'ite! Ba' Limite!is a good 3rgani?ation in the way that anybody can :oin it for his

long#term career. &anagement of branch cares a lot of its employees and considers them

as the "sset of bank. Behavior of senior e$ecutive of bank is very polite and they are

caring about the individual-s career and their growth. 3verall working environment is

comfortable.

mployees at %nited Bank imited are Duite efficient. mployees are given the benefits

like bonus, gratuity funds, loans, increments, and medical allowance.

"ll the customers are entertained individually. !ame kind of behavior and attention is

given to all the customers. ;etting ideas for improvement from customer side is a new

idea and that is working very well in %nited Bank imited. "ll the customers are asked to

fill a suggestion form and the standards of the bank are improved through them.

0owever management is very demanding about the targets but good reward at the

achievement of assigned targets is awarded when proper marketing campaigns are run.

Prioriti?ing its product portfolio in line with its corporate and consumer needs and wants

the bank is committed to develop products that give more value to its customers in boththe sectors.

In bank, all the work is done on computers. "ll the entries are made in computer. Balance

is fed into the computer. This increases efficiency of the bank.

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(uring my internship training I gathered information regarding how a successful bank

operational aspect decorticated with the practical of different department..This report is

an upshot of my si$ weeks internship in U'ite! Ba' Limite! m!e, t9'8015

)ra'c/ Ba/a9a,+ur

This Internship report is actually a brief study of operations and analy?es the performance

of %B to see how the bank is running and recommending possible solutions.

!o far my learning is concerned. This report is a conclusion of my learning period of si$

weeks. "nd I will try to write all of my knowledge which I get and concluded as under

In 6une 5787, &r. "gha 0assan "bidi decided to open a bank. The decision to establish

UBLwas taken in 6une 5787 and the company was registered on 6uly =>, 5787. %nited

Bank imited started the operations on 9 )ovember 5787. In 57A 5 st overseas branch

was opened in ondon. %B was nationali?ed in 579 but it is privati?ed in =@@=.

(habi ;roup *%"+ Best way 0olding imited *%


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Ty+e# " curre't accu't-

UBL )u#i'e## +art'er,

It is suitable for the business personsIt is the type of current account in which account

holders have no limit to the number of transactions done on daily basis

UBL BBA Accu't3

It is the type of current account with ma$imum of two deposit and two withdrawal per

month allowed free of charges.

Nature " Accu't#3

"ccounts having following type of natureL

Individual account and 6oint "ccounts

"ccount may be opened by/in the name of charitable institutions, sole proprietorship,

:oint stock companies and associations, societies and firms or clubs.

I' t/e "rei$' exc/a'$e !e+artme't-

I spent two weeks in this department. Foreign currency accounts are two types

esident

)on# resident

Bank deal only in four currencies

5. %! (ollar

=. ;B Pound !terling

. 6apanese 2en

>. uro

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I' t/e remitta'ce# !e+artme't I ,ear'e! t/at3

In case of remittances normally two banks are involved, are as underJ

Re#+'!i'$ Ba' Bra'c/

The branch that receives the instruments for remittances, also known as drawee-s

branch

Ori$i'ati'$ Ba' Bra'c/

It is the branch, which issued the instrument for remittance.

emittances are classified into the following two typesJ

Inland emittance

Foreign emittance *products of F. (epartment+

5+ Inland remittances

It is a transfer of money from one branch to another branch of the same bank within the

same country. In this case both the parties will be of the same country and same bank.

&3( 3F &ITT")'!

%nited bank limited, uses following types for transfers of moneyJ

*''+ cashier cheDue

3nline &ail Transfer *&T+

Ca#/ier c/e4ue-

It is an instrument launched by %B after removing the (( and P3 demand draft and

pay order. It is same like a cheDue which is cashed at any branch of ubl with in a

country.

O',i'e r (ai, Tra'#"er 8(T5

4hen the accounts are transferred from one branch to another branch, such amountsBalancesareremitted by means of mail transfer.

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T/e )a'# are !e+e'! ' ca#/ !e+artme't-

'ash department is performing its functions/duties through uni bank. uni bank. The

cashbook contains the opening balance, details of payments and receipts This is

sensitive department of the branch. )o other person is allowed to enter in the premises

of cash department. "s obvious from name that this department deals in cash deposits

and payments.

T/e cre!it $ra'ti'$ r a!va'ce# !e+artme't are im+rta't-

The lending function of the banking for the production purposes is called "dvances.Ty+e# " A!va'ce#-

There are two main types of advancesJ Funded, )on#Funded

5. N'?Fu'!e! La's

=. "re the loans in the form of guarantee. These are also called the C'ti'$e't

Lia)i,ity

Fu'!e! La'#

"re the loans in the form of physical cash. The interest charged on the funded loans is

called mark#up.

oans are advances for the purpose of

'ommercial

"griculture

Industrial

I' c,eari'$ !e+artme't " a'y )a' Ni"t +,ay a' im+rta't r,e3

UBLis a member of )IFT.through which clearing is done. )IFT stand for )ational

Institution Facilitation Technology.

OUT;ARD CLEARING-

The bank that receives the cheDue of another bank it goes in the process of outward

clearing.

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IN;ARD CLEARING-

The bank that has to pay the amount it goes in the process of Inward *internal+ 'learing.

I' t/e Lcer "aci,ity-Bank provides an application form to the applicant who needs to open a lockers account

to keep their precious things in safe custody.

There are basically four types of lockerat %B

T2P! 3F 3'


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I'9ar!# Bi,, "r C,,ecti'-

These bills come to branch for payments so branch has to verify these cheDues, cashier

cheDue. The party account must be opened in that branch which sends it to paying

branch.

The ATM Electronic card and UBL omni

ATM card:

ATM stands for automatic transaction machine

UBL wallet Visa Silver Atm card.

UBL wallet Visa Gold Atm card

Ubl wallet Visa Silver ATM card:

From this card you can only withdraw 2 cash with in 2! hours. The yearly

char"es of atm silver card are #s.$%&.

UBL wallet Visa Gold ATM card:

't is also issued to account holders Gold visa card has "reater limit of withdrawal

of cash. (ou can withdraw u) to ! cash with in 2! hours. The yearly

char"es of atm "old card are #s.%!&.

Wi card:

This card is for the s)ecific tar"et mar*et which is un+ ,an*ed and not has ,an*

account. So U,l "ive him a )roduct to deal with the ,an*.

The new brand o! ban" is UBL OMN#:

's a ,ranch less ,an*in". U,l omni du*aan are located at more than - cities

and towns in a*istan. /very u,l omni du*aan is em)owered to )rovide the

followin" services0

Utility ,ill )ayment.

Money transfer 1u) to -

3ash de)osit.

3ash withdrawal.

Mo,ile voucher )ayment.

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Recmme'!ati'# are -

Proper promotional and advertising activities should be done.

Build strong relationship with customer

ducate account holders and tell him in the simplest ways about products. "dopt pro#

active approach to deal with problems and threats.

!imple procedure should be in advances department.

%bl has internationali?ed too few countries. International e$pansion should be a new

segment for them

Interior and e$terior should not be neglected.

"bove is all about the knowledge which I get during my internship training at %nited

Bank imited. It is to be a very rewarding e$perience. The training was beneficial

because it helpful me to aware a real life working environment.

"ll the employees at branch were Duite cooperative. They helped me to understand the

activities of a bank to possible e$tent. Their good attitude gave me more confidence to

learn more and to ask if I have any Duery in my mind. Besides their ever going activities

they never get irritant by my Duestioning.

I had made an honest effort to present the working operation of %nited Bank imited

in simplest way.

I feel pleasure that I have really gained a lot during A weeks en:oyed working with

e$perienced cooperative intelligent staff.

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T%AN:S

part ii.doc internship report ubl

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