What is a Bank

INTERNSHIP REPORT ONUNITED BANK LIMITED DASKA

PRESENTED TO:

SIR MUDASSAR GHAFOOR

SUPERVISED BY:

SIR HAFIZ IMRAN

PRESENTED BY:

MUHAMMAD USMAN

ROLL NO. :

BC08002 (MORNING)

SESSION:

2008-2012

UNIVERSITY OF THE PUNJABGUJRANWALA CAMPUS

TABLE OF CONTENTSSR No.CONTENTSPAGENo.

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6.

7.

8.

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11.

12.

13.

14.15.

16.

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18.

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22.

23.

24.

25.

26.EXECTIVE SUMMARY

ACKNOWLEDGMENT

DEDICATION

PREFACE

INTRODUCTION TO REPORT

ORIGION OF BANK

DEFINITION OF BANK

COMMERCIAL BANKING IN PAKISTAN

PHASES OF BANK IN PAKISTAN

i. FIRST PHASE

ii. SECOND PHASE

iii. THIRD PHASE

iv. FOURTH PHASE

HISTORY OF UBL

VISION

MISSION

FUTURE STRATEGY

UBL PRESENT POSITION

PRESENT MANAGENT (BOD)

STRUCTURE OF COMPANY

UBL DASKA BRANCH HEIRARCHY

DEPARTMENTS IN THE ORGANIZATION

i. ACCOUNT OPENING DEPARTMENT

ii. CLEARING DEPARTMENT

iii. ACCONT OPENING DEPARTMENT

iv. CASH AND DEPOSIT DEPARTMENT

v. CREDIT DEPARTMENT

vi. ACCONT DEPARTMENT

WORK DONE BY ME

FINANCIAL ANALYSIS

RATIO ANALYSIS

SWOT ANALYSIS

RECOMMENDATION

CONCLUSION

GLOSSARY

BIBLIOGRAPHY5678910121213131517181920212223

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EXECUTIVE SUMMARYIn November 7, 1959 UBL was established and is one of the major commercial banks of Pakistan. The Bank is making every effort to meet the future challenges through strategic planning and making the best use of the resources at its command. UBL is a Banking Company, which is connected in Commercial & Retail Banking and related services domestically and overseas.

On 1st January 1974 banking nationalization act was circulate which states that all the banks working in the territory of the state are owned by Federal Government. There were 14 banks with 3323 branches within the country and 74 in foreign country offices. On 1st July 1974 under nationalization act Commerce Bank was merged United Bank.United Bank Ltd is the third largest bank in Pakistan. UBL has assets of over Rs. Rs. 807,204,788,000. In addition to the convenience of over 1,000 branches serving you throughout the country and also at several overseas locations. Its total loan Rs. 50,845,877,000 and its deposit Rs. 633,889,416,000. Its paid up capital Rs.12, 241,798,000 and Reserves Rs. 27,495,959,000 profit Rs.14, 887,113,000.UBL operates 1375 domestic and 20 overseas branches situated in the UK, USA, UAE, Yemen, Bahrain and Qatar. It also operates one offshore branch in the Export Processing Zone, Karachi and it has representative offices in Cairo-Egypt and Tehran-Iran. It also has a joint venture Oman United Exchange Co., Oman Muscat and a subsidiary United Bank A.G. Zurich, Switzerland set up in 1968.

UBL is introducing a range of credit cards backed by visa and master card and establish a strong market position through innovation and provision of superior value to the customers.ACKNOWLEDGEMENTAll praises and thanks for Almighty Allah who is entire source of knowledge and wisdom to mankind. And whose uniqueness, oneness and wholeness, gave me enough courage, knowledge and ability to accomplish this report.

Thanks are also due to last Prophet Hazrat Muhammad (Peace Be Upon Him), through whom almighty Allah communicated knowledge to mankind and who is forever a torch of guidance and knowledge for whole humanity.I really praise to the great efforts of my instructor Prof. Hafiz Muhammad Imran His constant encouragement and supports made the successful accomplishment of this Report. He provide me all types of guidance to complete may Report.

And also Staff of United Bank Limited, who help me in providing the information. I again extended my deep gratitude and heartiest thanks to all of them whose inspiration, experience, wisdom, skill, scholastic approach and valuable suggestions guided me throughout the preparation of this report.

DEDICATION To

Honorable parents and our loving TeachersWhose,

Love, Affection, Motivation, Patience, Support

&

Spiritual Inspirational, Give us Encouragement,

People To all those who have quenched for Knowledge,

To all those who have dedicated their lives to others,

To all of those who have served and sacrificed for

Sake of Freedom

To all of those people, who may be gone now?

But they will never be forgotten

PREFACEPunjab University is one of the leading universities in the World. HCC is the heart of this University. This institute is rendering invaluable services to the Pakistan nation by producing outstanding graduates and post graduates who have aims to change the world. I myself feel proud as being a part of that superlative college and feel proud of my teachers because of their excellent teaching style and vast knowledge, as well as their scholastic approach.

Preparing students to face the world confidently and courageously, PUGC arranges an internship Programs during summer vacations. The purpose of this program is to give practical exposure about our studies. It is also helpful for understanding the organizational environment that how to deal with professional persons. For that purpose, I joined United Bank Limited, which is one of the largest banks in Pakistan. During my internship span of six weeks I got chance to work in Different Departments and got information from other departments about their working and documentation. I tried my level best to include everything, which I learned and observed there. This report contains the details about the functions of Departments, of United Bank Limited. This report is prepared in such a way that reader gets full overview of United Bank Limited.

MUHAMMAD USMANINTRODUCTION TO REPORT

This INTERNSHIP REPORT is my final assignment of B.COM (Hons.) at Punjab University (Gujranwala Campus). It is my internship experience at UNITED BANK LIMITED DASKA Branch. This report include of the overall experience of the work their in all the departments of the organization. The objective of the report is to introduce the organization, describe the working and my personal experience at work. It shows what the operations are and how those operations are managed by the people there. It also includes the analysis of the operations and position of the organization i.e. SWOT analysis showing the performance and the future prospects for the organization. Also it describes my work and activities performed at each working area and the difficulties faced there at.

Finally I have given some recommendations to better the operations of the organization based on my personal observation during my work there. In Last there is the conclusion of the good experience that is the essence of my work.

WHAT IS BANK?

ORIGIN OF THE WORD "BANK":

There are many definitions of the word "Bank" even the standard encyclopedias and law books find it difficult to state exactly what a Bank is. There have been many attempts by different writers to explain the exact significance of the term BANK. Here some of the definitions are quoted as follows:

The Bank Means:The word Bank has been derived from the words Banco, Bancus all of which means a bench. The early bankers transected their activities on benches in the marketplace.

Definitions:

Dr. Hart:"A banker is one who, in the ordinary course of his business honors cheques drawn upon him by persons from and from whom he receives money on current accounts."Holder:"The modern banker is primarily a dealer in credit."Samuelson:

"Commercial banks provide certain services for customers and in return receive payments from them."

The Encyclopedia Of Banking And Finance Defined Commercial Bank As:A name given to one of the classes of non-government banking institutions under bank.

Commercial banks are designed primarily to finance the production, distribution, and sale of goods, i.e. to lend short-term funds, as distribution, form the services of lending long-term or capital funds. The bulk of deposit of commercial bank consist of demand deposit, which are invested, in short-term loans

National and state bank is the best example of commercial banks, although in most states trust companies are also permitted to engage in commercial banking. Private Banks are usually commercial banks. The term full-service banking has been promoted in recent years as a more descriptive term because of the diversification of commercial banks into many operations other than commercial lending ,including consumer banking (direct financing of consumers, credit cards, personal loans, consumer receivable financing); mortgage banking; savings backings and commercial sales financing ;international banking and foreign exchange; trust, safe deposit, custody and investment management functions travel services, travelers checks, money order etc.

Commercial banking is different from investment banks, securities firms, and commercial financing service institutions. Government authorities closely of customer deposits and the soundness of the bank. Government regulators require cash reserve against deposit, specify maximum interest rate bank can pay on deposit, set minimum capital requirements and place limits, on the size of loans to borrowers.

Comprehensive Definition Of The Bank Is: A bank is a financial institution which deals with money and credit. It accepts deposits from individuals, firms and companies at a lower rate of interest and gives at higher rate of interest to those who need them. The difference between the terms at which it borrows and that at which it lends forms the source of its profit. A bank is a profit-earning institute.

Commercial Banking in Pakistan:

At the time of the partition, the total number of commercial banks was 38. Out of these, the Pakistani banks were 2; Indian Banks 29 and exchange bank 7. The total deposits of Pakistani bank stood at Rs. 800 million whereas the advances were Rs.198 million.

It was very difficult for Pakistan to build up its own Banking system immediately after independence without sufficient resources. Following the announcement of the partition plan in June 1947 there was a haste movement on the parts of banks to transfer their funds and accounts across the borders. The banks having their registered offices in Pakistan were transferred to India. In an effort to bring about the collapse of the new state by the persecuting an international policy of withdrawal, the Indian bank offices closed quickly. Those banks, which stayed, were considering the winding up of their business. By 30th June 1948 the number of schedule banks in Pakistan declined from mere scratch.

Today there are more than 7000 branches of commercial banks along with an established network of supplementary financial institutions. All this development in the banking sect is the result of untiring efforts of four decades.

Phases of Banking In PakistanBroadly speaking we can divide the development of commercial banking into four phases:PHASE-1 1947-1974 Establishment of commercial banking system

PHASE-2 1974-1979 Nationalization of banks

PAHSE-3 1979-1991 Islamisation process

PHASE-4 1991-2011 Privatization process

FIRST PHASE (1947-1974)Set Up Of Commercial Banking System:This was the first phase of development of Pakistans commercial banking system, which consist of the circumstances under which the development of banking was started in the country.

Initial Position of Banking in Pakistan:There were 19 non-Indian foreign banks in Pakistan at the time of independence with the status of small branch network, whose policies and operations were controlled by their head offices abroad. These banks were engaged solely in export of corps from Pakistan. There were only two Pakistani banks, the Habib bank, which had transferred its head office from Bombay to Karachi after the announcement of the partition plan, and Australian bank which has been working in Pakistani territories prior to June 1947. The government of Pakistan tried hard to eliminate the banking crises. Banking Companies Ordinance 1947 was promulgated to safe guard the interest of both the bankers and the companys customers. The situation however showed no significant improvements. The imperial bank of India closed down most of its offices in Pakistan, which had been working as the agent of the reserve bank of India was not willing to purchase even token amounts of the government of Pakistan. Securities on the plea that these securities were not marketable. The reserve bank of India was hardly of any help. It refused to help government of Pakistan with advance argument adhoc securities to enable them to make essential disbursements such as salaries and other obligations to add to the difficulties.

The Indian government withheld Pakistans share of Rs. 75 corer in cash balances held by her at the time of independence. The foregoing developments clearly brought home the urgency of assuming control and currency in Pakistan and brought to the fore the need to setup a central banking institution to take the place of reserve bank of India. Therefore it was agreed between the government of India and Pakistan to authority of Pakistan from 30th September 1947 to 30th June 1948.

In order to make necessary arrangements of the establishment of the central bank of Pakistan a committee was appointed to recommend the necessary steps. Consequently the Governor General of Pakistan and father of the nation Quaid-e-Azam Muhammad Ali Jinnah Inaugurated the State Bank of Pakistan on 1st July 1948. After the State Bank order was promulgated on 12th May 1948.

When it assumed full control of banking and currency in Pakistan the first important task before the SBP was to issue of currency notes and withdrawal of reserve bank of India, which had been in circulating in Pakistan so far.

SECOND PHASE (1974-1979)NATIONALIZATION OF BANKS:The banking reforms turned out to be a transitional and temporary step and hardly after 18 months had the government nationalized the banking system. Thus through the Nationalization Bank Act 1974, SBP and all commercial banks incorporated in Pakistan and carrying on business in or outside the country were brought under the government ownership with effect from January 1974. The ownership and management of all Pakistan banks stood transferred and rested in the federal government. The shareholders were provided compensation in the form of federal government bonds redeemable at par any time within a period of fifteen years. The amount of compensation was equal to the break up value of the shares in case of commercial banks. For the State Bank shares the amount of compensation was estimated on the basis of average of the clearing quotations during the six working days preceding nationalization. The chairman, director and chief executives of various banks were removing from their offices other than those appointed by the federal government and the state bank. The central board of banks, managing committees and similar other bodies were dissolved. A Pakistani banking counsel was established for nationalized commercial banks to co-ordinate their activities.

As a result of merger of banks the following five major banking companies were formed:

1. National Bank of Pakistan

2. Habib Bank Limited

3. United Bank Limited

4. Muslim commercial Bank Limited

5. Allied Bank of Pakistan

CAUSES OF NATIONALIZATION:The nationalization of banks may be justified on the following grounds:

1. Large business and industrial houses dominate the lending policies of the commercial banks; this brought forward the problem of concentration of wealth.

2. Commercial banking operations were guided by profit motives and as a result the backward regions and the small entrepreneurs were never been their favorite customers.

3. The operation of banks, unlike after business, have direct implication on the entire national economy. For instance if the banks raise the cost of their credit, the cost of everything may go up.

4. Unhealthy complications among banks can lead to financial and economic problems.

5. The flow of bank advances towards national priority sector in general is not forthcoming because private banks are profit oriented.

RESULTS OF NATIONALIZATION:

Although there are doubts about the positive results of the nationalization but we can say that the nationalization of banks provided efficient professional management to expand banking services in every nook and corner of the country. Banks laid full emphasis on their lending policies on priority sector and national building projects, which discouraged non-productive and unhealthy activities like speculation and hoarding, there was also a recorded increase in the number of foreign branches of Pakistani banks.

The growth of Pakistani banking system was significant. The banking facilities expanded in the rural areas. The bank credit increased sharply especially in the public sector. A part from this expansion the banking systems activity seeking to gain credit targets laid down by national Credit Consultative Council (N.C.C.C) and to confirm to the priorities over the year to enlarge the flow of credit for the small banker and agriculturist as well as for exports. Bank deposits rose very substantially during a period when total monetary assets also registered a sharp rise. In a remarkable short time banks and their management had adjusted to the realities and compulsion of the new situation and the system as a whole was completely geared to government objectives and policies.THIRD PHASE (1979-1991)INTRODUCTION OF ISLAMIC BANKING:

In 1977 the Bhutto government was toppled. The martial law government planned to reform the banking sector in a novel way. The overall policy was to Islamize the economy and the banking system, being based on interest was an important target of the new policy. The most preferred form of Islamic bank financing profit and loss sharing would require banks to receive deposit without guaranteeing any return.

The Islamic bank has to acquire a high degree of confidence of the saver to make him deposit his money with them. Not even the return of the principle amount if guaranteed. The Islamic bank cannot finance the project of an investor merely on the furnishing of collateral. The bank will have to be a partner in the project. This will require to careful security of the project and the assessment of risk involved because profits are the function of the amount of risk in the project. Honesty and trust form both sides of the market are more important to the system of Islamic Banking.

FOURTH PHASE (1991-2011)PRIVATIZATION AND DE-REGULATION:

The government headed by Prime Minister Nawaz Sharif was not fully satisfied with the performance of nationalized. The areas, which were severely criticized, were the falling standard of banking services and common red-tapism. There were complaints about the services as delay in home remittances, dispatch of cheques, drafts, inefficient counter services, bad debts of the banks etc. were on the rise. The government decided to privatize these banks. In order to implement privatization policy a privatization commission was established on 22nd January 1991. The commission has transferred two banks MCB and ABL to the private sector. Application for privatization of other banks namely UBL and HBL were also invited but the bidding response was quite poor. Till March 1994 there were 20 domestic scheduled banks with 9825 branches and 21 foreign banks with 66 branches in operation in the country. Overall investment of the domestic scheduled banks in the current year declined by 80% over the same period last year. In October, 2002 UBL was sold to Abu Dhabi Group of Industry and Best Way Group of Industry with 51% shares were given to them. Bank of Commerce Al Habib Ltd.

Soneri Bank Ltd

Union Bank Ltd.

Indus Banks Ltd.

Mehran Bank Ltd.

Prime Commercial Bank Ltd.

Askari Commercial Bank Ltd.

Bolan Bank Ltd.

Capital Bank Ltd.

Republic Bank Ltd.

Now Mehran bank has been absorbed by National Bank Ltd, due to its poor performance and ultimate failure. Now the ABN Amro Bank has also been included in the list of foreign scheduled banks.

HISTORY OF THE UNITED BANK LTDUBL was established in November 7, 1959 and is one of the major commercial banks of Pakistan. The Bank is making every effort to meet the up-coming challenges through strategic planning and making the best use of the resources at its command. UBL is a Banking Company, which is engaged in Commercial & Retail Banking and related services domestically and overseas.

On 1st January 1974 banking nationalization act was promulgated which states that all the banks working in the territory of the state are owned by Federal Government. There were 14 banks with 3323 branches within the country and 74 in foreign country offices. On 1st July 1974 under nationalization act Commerce Bank was merged United Bank.

There were complaints about the services as delay in home remittances, dispatch of cheques, drafts, inefficient counter services, bad debts of the banks etc. were on sector application for privatization of other banks namely UBL and HBL were also invited but the bidding response was quite poor. Due to above problems State bank of Pakistan has take over the United Bank Ltd in 1996.

A professional team was appointed in mid 1997 to restructure the bank and to commence rightsizing. The management is also in the process of rationalizing the branch network and identifying and recovering its doubtful and classified portfolio. It has planned to institute major improvements in customer services and internal systems to improve efficiency. It also intends to launch innovative products. The bank is increasing resource mobilization through regular deposit campaigns and accelerating the process of recovery of outstanding advances and non-performing assets.

In October, 2002 UBL was sold to Abu Dhabi Group of Industry and Best Way Group of Industry with 51% shares were given to them

VISION STATEMENT

UBL TOGETHER WITH YOU TOWARDS A WORLD CLASS BANK

Our vision is to become a world class bank,

Where you come first.

MISSION STATEMENT

Set the highest industry standard for quality, across all areas of operation, on a sustained basis

Optimize people, processes and technology to deliver the best possible financial solution to our customers

Become the most sought after investment, and

Be recognized as the employer of choice

FUTURE STRATEGY

UBL expects its strong customer focus to drive the Banks future business strategy. On the domestic front the bank is already an established player in consumer banking business. It has taken an aggressive entry into the consumer assets market with full rage of product offerings, e.g. car financing, home loans, etc.

UBL plans to increase investment in developing human resources, infrastructure and internal systems to support the aggressive consumer initiative and exploration of new avenues of revenue recognition

UBL is introducing a range of credit cards backed by visa and master card and establish a strong market position through innovation and provision of superior value to the customers

On the international front ,UBL plans to continue to build the core gulf business with special focus on trade, With a network presence in Gulf, New York, Zurich and London UBL has an ideal opportunity to offer correspondent banking services in these key financial centers to a host of small and middle-tier banks in the sub-continent, middle eat and Africa

United Bank Limited Present PositionUnited Bank ltd is the third largest bank in Pakistan. UBL has assets of over Rs. 392 billion and a solid track record of forty seven years - in addition to the convenience of over 1000 branches serving you throughout the country and also at several overseas locations. Its total loan Rs.50, 845,877,000 and its deposit Rs.633, 889,416. Its paid up capital Rs.12,241,789,000 and Reserves Rs.27,495,959,000 profit Rs.14,887,113,000.Operational Structure

UBL operates 1375 domestic and a subsidiary viz. United Executors and Trustees Company Ltd. as on 30.06.2000. It has 20 overseas branches situated in the UK, USA, UAE, Yemen, Bahrain and Qatar. It also operates one offshore branch in the Export Processing Zone, Karachi and it has representative offices in Cairo-Egypt and Tehran-Iran. It also has a joint venture Oman United Exchange Co., Oman Muscat and a subsidiary United Bank A.G. Zurich, Switzerland set up in 1968. It has 21 ATMs with 8 in the UAE, 3 in Bahrain, 1 in Doha, 7 in Islamabad and 2 in Karachi.

Registered Office 13 Floor , UBL Building,

Jinnah Avenue, Blue Area Islamabad, PakistanHead OfficeState Life Insurance Corp. Building #1,

I.I. Chandigarh Road, Karachi, Pakistan

P.O. Box No.: 4306

Phone: (92-21) 111-825-111

Gram: "UNITED"

Fax: (92-21) 2413492PRESENT MANAGEMENT (BOD)

Directors:

Mr. Omar Ziad Jaafar Al Askari

Mr. Zameer Mohammed Choudrey

Mr. Ahmad Waqar

Dr. Ashfaque Hasan Khan

Mr. Abdul Rauf Malik

STRUCTURE OF THE COMPANY

REGIONBRANCHESAREASPROCESSING HUBS

Azad Kashmir7145

Gujranwala6644

Islamabad6144

Faisalabad8155

Karachi9555

Mardan8056

Hyderabad10967

Multan10266

Peshawar7146

Jhelum7344

Sargodha6844

Lahore6233

Sahiwal6135

Quetta3933

REGIONS:

There are total 14 regions.

BRANCHES:

1375 Domestic

20 Overseas

REPRESENTATIVE OFFICES:

TehranSUBSIDIARY: United Bank AG Zurich

Switzerland

United National Bank limited, UK(Joint venture with NBP)

UBL Fund Managers Limited

ASSOCIATED COMPANY:

Oman United Exchange Company, Muscat

OFFSHORE BANKING UNIT: Export Processing Zone, EPZ Branch, Karachi, Pakistan

Total number of processing hubs is 67

Total number of areas is 60

BANK STRUCTURE

RCES ORGANGRAM

UBL DASKA BRANCH HIERARCHY

INTEGRATED APPROACH

DEPARTMENTS IN THE ORGANIZATION

1. ACCOUNT OPENING DESK (AOD)

2. CLEARING DEPARTMENT

3. ACCOUNT OPENING DEPARTMENT

4. CASH AND DEPOSIT DEPARTMENT:

5. CREDIT DEPARTMENT

6. ACCOUNTS DEPARTMENT

1. ACCOUNT OPENING DESK (AOD) Initially I started my training by filling the deposit slips, cheques and demand drafts forms, pay orders forms, online forms, and cheques book requisitions etc. of the customers. And also provide information about the bank which is in my knowledge to both customers and walking customers. And then I worked on that.Definition of the Bank Account:

A bank account is the establishment of a relationship between a customer and a bank

Types of the Accounts:Following are the types of the account which are performed in the UBL: Individual accounts

Joint account

Proprietorship account

Private limited company accounts

Public limited companies accounts

Trust accounts

Liquidators accounts

Societies, Associations and Clubs etc

Local bodies accounts

Accounts of Govt. DepartmentsACCOUNT OPENING FORM:Account opening form is the document that carries: The details of a customer

The terms and conditions applicable to the relationship

Signature /thumb impression of the account holder

General terms and conditions applicable to the operating of an account specified by the bank

SALIENT FEATURES UBL AOF:Introduction:Every account must be introduced by an existing account holder of the bank or an account holder of another bank provided that the signature of such account holder are verified by his/ her bank. Staff can also introduce.

Documentation:

Different types of accounts require different documents to be submitted to establish a relationship. In case of individual accounts only a copy of the CNIC or valid passport are considered sufficient.

A Multipurpose Account Opening Form is used for: Current account

PLS saving bank account

PLS Unisaver

PLS SNDR

PLS Certificate of Deposit(COD)

Call Deposits

FC Saving Accounts

FC Current Accounts

Policies:

1. All customer accounts will require proper introduction either from UBL staff (existing customer of branch/ bank or of another bank). An employee of the branch/ bank introducing the account must know the account holder and must possess sufficient information on the new account holder.

2. The signature of introducer, if not holding account at branch, must be verified from another branch/bank prior to issuance of Cheque book.

3. Account opening form shall be filled in by the account holder in duplicate. The branch will retain original while the copy returned to the customer against acknowledgment.

4. Letters of thanks shall be set to both the account holder ad introducer (if other than banks own staff) for correctness of address and genuineness of introduction.

5. Name and address of applicant must also be obtained in the case of an individuals account.

6. Blank columns must be crossed or marked.7. PLS Savings accounts shall be opened for individuals (Single or Joint), Charitable institutions. Provident and other Benevolent funds

8. PLS Savings accounts shall not be opened in the names of illiterate Pardah nashin Ladies. Local Bodies, Autonomous Corporations, Companies ,firms or other institution except their provident fund and Benevolent Funds Accounts

9. In case of illiterate person, the introducer shall also verify the thumb impression on the AOF.

10. In case CNIC does not contain photograph, photocopy of ay other document such as passport /driving license etc containing photograph shall be obtained.

11. Government accounts shall be opened with approval of competent authority of concerned Division /department and endorsement of finance Division.Documentation Requirements:Individual/joint and Sole proprietorship:

Declaration Form No. I (Mandate or authority form) for operating of account by a AOD person. Illiterate persons account with Thumb Impression shall be discouraged unless unavoidable, however proper identification duly supported by two attested passport size photographs must be obtained from the customer and attached to AOF and SS card besides taking his right and left thumb impression o the SS card.

Letter of undertaking shall be obtained from illiterate customer to the effect that he shall to operate the account unless he/she personally comes the bank and puts his thumb impression on the cheques in the presence of the AM/AOM/BM/OM or CD//SVB Supervisor.

The sole proprietor of the trading concern shall sign the Declaration Form II (Provided on the mandate form) through which he /she can also give the account operation authority to any other person to operate on the account.

Joint account to be operated by either or survivors or Jointly

In case of minor account, the guardian only shall sign the AOF.

Account in the name of minor shall not be opened unless his guardian opens it in the following form, preferably as savings Deposit account., For example Ahmed Ali (minor ) Jaffar Hussain (Guardian)

Birth certificate is required in case of minor. In case, the CINC of pardah nashin lady does not contain photograph , in addition to CNIC, any other document such as drivers license or passport that contains a photograph should be obtained

Clubs, Association, Societies, Charitable Organizations: Certified copies of Certificate of Registration and By- Laws/ Rules & Regulations

An undertaking signed by all the authorized persons on behalf o the institution on the account, the banker will be informed immediately

Certified copy of the resolution passed by the Governing body/Executive Committee/Managing/Working Committee of the Society/Club or Association authorized person to operate the account

Attested copy of the identity card of the authorized persons shall be obtained List of Members of the Executive/Managing/Working Committee

No Club, Association , Societies& Charitable Organizations account shall be opened without prior permission from the Head Office

Partnership Account:

Partnership declaration No IV on the Mandate Form duly signed by each partner under companys stamp

Attested photocopies of CNIC of all partners

Attested copy Partnership Deed duly signed by all the partners of the firm

Attested copy of Registration Certificate with the registrar of Firms

I case the partnership is unregistered, this fact should be clearly mentioned on the AOF

Authority letter, in original , in favor of the person authorized to operate on account of the firm

Partnership deed executed on stamped paper if formal agreement has been drawn up, which must include the under noted information:

Names of all partners;

Partner powers to instruct bank on financial matters and operation of account

Dissolution of partnership/Death of partner etc

Joint Stock Companies: Account Opening form completed in all respect and signed under company stamp

Certified copies of: Resolution of board of directors for opening of account specifying the person authorized to operate the company account

Memorandum and article of Association

Certificate f incorporation

Certificate of commencement of business

Attested photocopy of identity card of all the director s

List of directors corresponding to the one printed in the memorandum and article and association. All document to be signed under company stamp

Trust Account:

Attested copy of certificate of registration

Attested copies of CNIC of all the trustees

Certified copies of instrument of Trust

No trust account shall b opened without prior permission from the head office

Executive and Administrators:

Attested photocopy of CNIC of the Executor/Administrators

Certified copy of letter of Administration or probate

Accounts of Executors Administration shall not be opened without t prior permission from the Head Office

All the Executors/Administrator shall sign the AOF, if more than one to whom probate has been granted

The probate or letter of administration shall be duly registered at the branch

Clear instructions under the signatures of all the executors and .or Administrators shall be obtained to determine as to which of the Executors or Administrators shall operate the account

Bank shall not accept any power of attorney or authority letter given by the Executors or Administrators to third parties to operate the account

PROCEDURE:

Following are the things/procedure which is performed in the banks that I observed and also practically done:

The customer visit the bank

the AOD(Account Opening Desk) officer explains the requirements with respect to account type desired by the customer

The officer also explains the minimum account balance requirement and documentation required to open the account the customer

The AOD officer hands over the Account Opening From, SS card, Cheque Book Request form to the Customer.

The AOD officer also offers the ATM/UB online application form to the customer

The customer fills in the Account Opening Form, Cheque Book Request ,ATM& UB Online Request, SS Card and submits relevant documentation as per banks Requirement

The AOF and other document should be signed by the customer in the presence of AOD officer designated to open the account

The customer provides original CINC/Passport along with the photocopy for attestation / verification to the designated officer. The original documents are returned to customer after verification/attestation

The AOD officer examine the AOF, other documents and SS CARD, Blank spaces on AOF and SS card are crossed out or marked VOID

The AOD officer interviews the customer to ensure genuineness of the information provided

If signature of introducer not holding the account at branch forwards the request to respective Branch /Bank for verification

The AOD officer ensures that the documents are complete in all respect, otherwise if any document is missing or incomplete should be referred to the AM/BM for deferral approval The AOD officer/supervisor approves the AOF

The missing/incomplete document must be completed by the designated officer at an early date and submitted to Hub

Due to computerized branch the AOD officer used the following the steps: Go to the maintenance option then to the Customer Account and then Open Account

The AOD Officer also scans the SS card and files it in the sequential order in the card box

The AOD officer forwards the AOF, the documents and SS cared to the HUB for record keeping

The AOD officer fills in the deposit slip for initial deposit and hands it over to the customer

The customer deposits the cash with the teller

The teller receives the cash from the customer and stamps Received cash on both portions of the pay in slip and post in active ledger

Initial deposits is noted on AOF

The letter of Thanks is prepared by the AOD officer and mail to customer and introducer

If the letter of thanks returned then call to customer and verify the customer address and mailed the letter again

The returned letter of thanks shall be entered in a register and filed with the AOF

2. CLEARING DEPARTMENTFUNCTIONS:The major functions of clearing department are to receive the cheques, which are drawn on some other bank. The customers can get many cheques in his account at BAL from the cheques drawn on other banks. The bank accepts these cheques and collects the amount from other bank. Bank charges some commission of these facilities. This department is controlled by the operation Manager or the Head of the department.

PROCEDURE FOR CLEARING OF CHEQUES:1. Pay-In-Slip:The customer fills pay-in slip; this slip is just like deposit slip. The cheque number, account number and amount must be mentioned in this slip.

2. Stamping and Scrutinizing:The officer on receipt of cheque will stamp cheque received and give a portion of slip to the costumer and remaining portion of attached with original cheque. The following stamps are affixed in the cheque.

3. Clearing House:

This is a facility provided by SPB by acting as clearinghouse. A representative of all bank gathered daily at evening. Each bank collects the cheque on behalf of their customers and handed over the cheques, which are not drawn on their bank, to their representatives. Clearinghouse is present in all major cities and where their branches of SPB the National Bank of Pakistan provides this facility

Types of Clearing:

1. Inward Clearing2. Outward Clearing3. Within Bank TransferInward Clearing:

Inward clearing means the cheques, which are to be honored by bank, which are received through other bank representative. These cheques are honored by the same process mentioned in each department.Outward Clearing:

Outward clearing means the collection of cheques on behalf of draw of customers drawn of other bank. Outstanding cheques are sent through SMS, courier or registered post to their original source. All the risk and responsibility for the lost of cheques are born by customer.

Within Bank Transfer:

If the cheque is drawn on BAL with in of same branch or any other branch, it is called with in bank transfer. Such cheques are marked with Transfer stamp.

3. ACCOUNT OPENING DEPARTMENTThe primary function of a commercial bank is to receive deposits and advance loans. Deposits are the lifeblood of a bank. These are also the main source of banks funds.

WORKING OF DEPOSIT DEPARTMENTThe deposit department deals with the following functions:1. Opening of new accounts

2. Issuance of cheque books

3. Miscellaneous function

ACCOUNT OPENING:The bank open the account of its customers which includes

An individual

A firm

Company

Corporation or association

ACCOUNT OPENING PROCEDURE:In order to open the account with the UBL a proper method is followed for this purpose. For account opening a proper method is followed mainly in following steps

First of all a customer must have his original identity card (in case of residents customer) and original passport (in case of nonresidents customers).

The client is provided with a set of forms containing account opening form, SS card and requisition slip to be filled.

The forms are properly verified.

Then the customer is allocated an account no

In order to operate the account a cheque book is issued to the customer.

Now we discuss the particulars of these forms one by one.

ISSUANCE OF NEW CHEQUE BOOK

After an account holder uses his cheque book completely, he can apply for another. The procedure is as follows;

He takes the requisition from the old cheque book and submits to the bank after filling it.

The officer will match the signature in the banks record.

If the sign matches, the cheque book according to the account type are issued, as separate cheque book are maintained for different accounts.

After issuing the entry is made in the register as well as in the computer.

MISCELLANEOUS FUNCTIONS

The deposit department deals with several other miscellaneous functions such as: Closing of account

Amendments in the account

Letter of thanksTYPES OF ACCOUNTBanks opens the following accounts: Current account (both in foreign and local currency)

Saving account (both in foreign and local currency)

Fixed Account

CURRENT ACCOUNTEvery bank maintains the current account with its customers;

A current account is running account which is continuously in operation by the customer on all working days of the bank.

The customer withdraws money from current account without prior notice to the bank. In short, in current account, the banker incurs an obligation to honors all the cheques drawn by the customer so long as there is enough money to credit of the client.

Interest on current account

The banks dont usually pay any interest on current account in local as well as foreign currency. The amount can be withdrawn at any time, so the bank cant comply these funds due to fear of withdrawal.

Advantages of having current account

The customer gets the following advantages on behalf of current account;

The bank collects properly endorsed cheques on behalf of current account holders

The bank may allow the facility of overdraft on prior arrangements to the trustworthy customers.

Loans and advances may be sanctioned to the creditworthy clients with ease.

On line facility alternative of cash transaction is also provided to customers having min. balance of Rs.10,000/- in their current account.

SAVING ACCOUNT

Saving deposit account is an ideal account for those who have money to save but cannot profitably invest it anywhere else, as amount is too small.

Saving deposit is an important source of fund for commercial banks. It is opened to encourage thrift among the persons of small means. Saving account is opened both in local and foreign currency.Withdrawal of Amount The depositors are normally allowed to draw a limited amount of money only twice a week. If a customer wants to withdraw a large sum of money, he then has to give a prior notice of 7 to 15 days in writing to the bank.

The bank can safely invest the deposits of saving account, as it knows that only the customer withdraws a small percentage of this account.

Remittance (Transfer of Money): Demand draft (D.D)

Pay Order (PO)

Rupees Traveler Cheque(T.T)

Mail Transfer(M.T)Modes of Remitting: Through cheque

Through cash

Through letter of instruction(authority letter)

4. CASH AND DEPOSIT DEPARTMENTAs name implies this is a preliminary deal with the cash, which involves payment of cheques issued by the customer and receipt of the cash deposited by the customer and receipt of the cash deposited by the customers in their accounts. The procedure involved in payment and receipt of cash is given below.

Cash payments:Payment of cash to customer involves the following procedure:1. The cheque is presented to the cashier first, who takes care of following precautions:a) It should not be out dated.

b) There should not be any crossing on it, if so the signature should be with cutting.

c) Two signature of the customer receiving the cheque should be in the back of the cheque.

d) There should not be any difference between the amount and figures

e) It should not be crossed.

2. The cheque is entered in the computer by the cashier and customer account is debited.

3. If the amount of the cheque exceed the customer balance in that account a note regarding this will automatically appeared on the computer screen. Such entries are immediately scratched.

4. Finally the cheque goes to the officer, who first, checks the signatures, whatever it is according to the specimen signature card, he will also check the conditions mentioned in no.1. If he has any doubt he will reject the transaction. Otherwise he authenticated the transaction and sign on the cheque.

5. The cheque is finally returned to the cashier for payment.

6. If the cheque is dishonored due to any reason Rs.200 is deducted from the account of the customer as a penalty for that return.

7. At the start of next day all the cheques, which are honored by the bank on previous day, are sent to account department for permanent record.Debit Cash Vouchers:When the cash is deducted from a certain account by the instruction of bank, a debit cash voucher is prepared. Debit cash voucher must be signed by the two responsible bank officers with the reason for deduction of cash mentioned on it. Usually debit cash voucher is prepared for the payment of expenses like salary of clearing staff, payment of demand draft etc.

Cash Paid Register:When all the cheques are paid then all entries regarding payment of cash is entered if the cash paid register by the cashier & total payment during the day is computed. This sum is then subtracted from the opening balance of the cash. The responsible officer then verifies all these entries.

Receipt of Cash:Receipt of cash involves the following procedures.

1. All the cash is deposited on a specific deposit slip. The depositor has to mention specific deposit account number, name of the account holder and the amount which he wishes to deposit in his account on this slip.

2. This slip is presented to the cashier along with the currency note, he count the notes and stamp the slip with cash received if he is satisfied, then he enters the slip in the computer by crediting the account.

3. Finally the Trans action regarding deposit of cash is authenticated by the responsible officer and put his signature on the slip. Now the transaction is permanently stored in the computer.

4. At the start of next day all deposit slip of the previous day is sent to accounts department for permanent record.

5. CREDIT DEPARTMENTINTRODUCTION:The credit department plays a key role in a bank it earns considerate income in form of mark up on its advances.

SECTIONS:The credit department has been sub-divided into following sections:1. Credit Marketing2. Credit administration & Monitoring

3. Mortgage1. CREDIT MARKETING The main function of this department is to market a customer for the bank.

Credit Policy of the Bank:The credit policy of any banking institution is the combination of certain globally and locally accepted time standards and other dynamic factors dictated by realities in ever-challenging market and industry.

The extension of a credit facility should add value to the banks assets should be borne by the bankers. For this purpose the bank takes special care for judging.1. Ability to Repay2. Willingness to PaySteps Taken in Advancing Loans:The following are the steps taken in advancing loans to its borrowers;

When customer is marketed, the officer takes a sort of interview from its prospective customer.

The request is written form is received and a visit report is prepared.

If viable, the request is given to the credit officer.

Then the bank request is given to the credit officer.

Then the bank requests the SBP to provide him the CIB report of the customer.

If irregularity occurs the proposal is returned to the customer for regularization/rectification, and if not then CLP (credit line proposal) is prepared.

2. CREDIT ADMINISTRATION & MONITORINGThe credit administration & monitoring department performs many functions. Some of them are:a) Perfection of securities

b) Perfection of legal documentation

c) Management information system (MIS)

d) Ongoing monitoring of account

e) Facilities provided by the bank3. MORTGAGE

Its means:

A mortgage is the transfer of interest in a specific immovable property for the purpose of securing money advanced by the way of loan, an existing of future debt.

Condition:The main condition for mortgage is that only the immovable property can be secured. The lending of money on real estate (immovable property) is not very popular with most of the commercial banks. However in the last few decades the loan on real estate is growing.

Difficulties Faced By the Bank In Case Of Mortgage:The bank has to lock their funds in the loans having long-term maturity. The loans on real estate lack liquidity. In case of their default, there are no organized markets where that property and amount recovered to pay off the loan. Since other for unpopularity are as under: Legal hindrances

Heavy expenses of legal mortgage

Lack of liquidity

Difficulty in valuation

Delay in recovery of loans

Finding of tenants and their repairs costs

Preliminary inquiries for advances against mortgage:To secure its position, the bank takes into account the following inquires in case of real estate: Proper valuation of real estate

Inquiry about title to property

Preparation of title deed

Search for prior charges

6. ACCOUNTS DEPARTMENTINTRODUCTION:The accounts department deals with various routine activities for the bank. The main activities performed by it are: Budgeting Reporting Maintenance & depreciation of fixed assets

BUDGETINGAccounts department of a bank, for a year makes budget of every branch. Fiscal year of bank starts from January and ends on December. The accounts department starts preparing budget from October the next year.

PROCEDURE:

The budget is based on forecasting through past performance.

First of all, the bank reviews what are its sources of funds and where it can utilize these funds. The main sources of the bank are deposits, securities issued by the bank, borrowing from other banks, borrowing from SBP, banks paid-up capital, its reserve fund, profit generated by the bank.

The bank may employ these funds in lending to others at a high rate of mark-up. Investment in securities, placement in inter-bank markets etc.

It also takes into account the income from other sources, cost of funds, administrative expenses, and utilities expenses.

Then the budget is submitted to the head office for recommendation and modification.

Monthly budget meeting is held by branch managers to analyze the monthly performance. Budget and actual performances are employed and variance is computed for analysis.

Variance can be negative or positive. Variance does not mean that it will have positive effect on the overall profitability e.g. positive increase in deposits is not always coupled with positive increase in advances.

The management will then drive the reasons for the variance and take remedial measures to achieve the targets. REPORTINGThe accounts department in the form of reports clubs and details of various departments together, each and every minute detail is provided in weekly, monthly and annual reports. The reports are submitted to head office, SBP and to the government.

Kinds of Reports

Following reports are prepared by the accounts department on daily basis: Statement of affairs

Income & expenditure

New FCY report

Royal profit report

Subsidiary statement

Currency wise deposits report

Following are the reports that are prepared on the basis of reports granted from mainframe. These are very important for proper analysis and feedback.

Daily advance and deposit position Daily exchange position

Daily fund managementClosing Reports Monthly assets & liabilities Monthly budget review report Monthly monitory statement Monthly performance review report Schedule of maturity distribution MAINTAINING OF FIXED ASSETS & THEIR DEPRICIATIONAccounts department maintains the record of all the assets and charges depreciation on them. The bank normally uses the straight-line method to compute the depreciation.

Department prepares asset purchase report and asset sale report after every 6 months that helps in changing the depreciation. It is calculated on monthly basis and charged yearly. Bank not only depreciates the existing assets but also the assets but also the assets transferred in and transferred out. The rate of depreciation for different fixed assets is as follows:

Equipment

20%

Building

2.5%

Vehicles

25%

Furniture

10%

Carpets & curtains 25%

WORK DONE BY MEIn the United Bank Ltd, I really enjoyed working with the staff of Bank Road Branch from 2nd august to 13 September 2011. During my six week training, it was almost impossible to work in all the departments within that limited time. But on my request, they staff of the branch provided me the opportunity to work in the different departments for the sake of practical knowledge. I feel highly grateful to work in the Bank Road Branch on the request of the manager of that branch Sir Zahid Sahib, because I learnt a lot in that branch.

During my internship training in the United Bank of Pakistan as I early mentioned that I have worked in different departments & seats and learnt the followings.

First & Second weekRCECIPTION COUNTER / ACCOUNT OPENING DESK (AOD)Initially I started my training by filling the deposit slips, cheques and demand drafts forms, pay orders forms, online forms, and cheques book requisitions etc. of the customers. And also provide information about the bank which is in my knowledge to both customers and walking customers. And then I worked on the:

ACCOUNT OPENING (Policies and Procedures)

In second step I learned about the policies and procedures of the account opening form first of all I would like to discuss about the account?

Definition of the Bank AccountA bank account is the establishment of a relationship between a customer and a bank

TYPES OF THE ACCOUNTSFollowing are the types of the account which are performed in the UBL;

Individual accounts

Joint account

Proprietorship account

Private limited company accounts

Public limited companies accounts

Trust accounts

Liquidators accounts

Societies, Associations and Clubs etc

Local bodies accounts

Autonomous and Semi Autonomous Institutions

Local /District Zakat/Usher Committees.

Accounts of Govt. Departments

Account Opening FormAccount opening form is the document that carries: The details of a customer

The terms and conditions applicable to the relationship

Signature /thumb impression of the account holder

General terms and conditions applicable to the operating of an account specified by the bank

UBL Account Opening Form See AnnexureSALIENT FEATURES OF UBL AOF:

Introduction:

Every account must be introduced by an existing account holder of the bank or an account holder of another bank provided that the signature of such account holder are verified by his/ her bank. Staff can also introduce.

Documentation:

Different types of accounts require different documents to be submitted to establish a relationship. In case of individual accounts only a copy of the CNIC or valid passport are considered sufficient.

A Multipurpose Account Opening Form is used for: Current account

PLS saving bank account

PLS Unisaver

PLS SNDR

PLS Certificate of Deposit(COD)

Call Deposits

FC Saving Accounts

FC Current Accounts

Policies:

1. All customer accounts will require proper introduction either from UBL staff (og-3 and above) existing customer of branch/ bank or of another bank. An employee of the branch/ bank introducing the account must know the account holder and must possess sufficient information on the new account holder.

2. The signature of introducer, if not holding account at branch, must be verified from another branch/bank prior to issuance of Cheque book.

3. Initial deposit required for opening of account is Rs. 100/-4. Account opening form shall be filled in by the account holder in duplicate. The branch will retain original while the copy returned to the customer against acknowledgment.

5. Letters of thanks shall be set to both the account holder ad introducer (if other than banks own staff) for correctness of address and genuineness of introduction.

6. Name and address of nominee (next of kin) must also be obtained in the case of a individuals account.

7. Blank columns in AOF &SS card must be crossed or marked VOID

8. PLS Savings accounts shall be opened for individuals (Single or Joint), Charitable institutions. Provident and other Benevolent funds

9. PLS Savings accounts shall not be opened in the names of illiterate Pardah nashin Ladies. Local Bodies, Autonomous Corporations, Companies, firms or other institution except their provident fund and Benevolent Funds Accounts.10. In case of illiterate person, the introducer shall also verify the thumb impression on the AOF

11. In case CNIC does not contain photograph, photocopy of ay other document such as passport /driving license etc containing photograph shall be obtained

12. Government accounts shall be opened with approval of competent authority of concerned Division //department and endorsement of finance DivisionDocumentation And Requirements:

Individual/joint and Sole proprietorship: Declaration Form No. I (Mandate or authority form) for operating of account by a AOD person Illiterate persons account with Thumb Impression shall be discouraged unless unavoidable, however proper identification duly supported by two attested passport size photographs must be obtained from the customer and attached to AOF and SS card besides taking his right and left thumb impression o the SS card. Letter of undertaking shall be obtained from illiterate customer to the effect that he shall to operate o the account unless he/she personally comes the bank and puts his thumb impression on the cheques in the presence of the AM/AOM/BM/OM r CD//SVB Supervisor.

The sole proprietor of the trading concern shall sign the Declaration Form II (Provided on the mandate form) through which he /she can also delegate the account operation authority to any other person to operate on the account. Joint account to be operated by either or survivors or Jointly In case of minor account, the guardian only shall sign the AOF. Account in the name of minor shall not be opened unless his guardian opens it in the following form, preferably as savings Deposit account., For example Ahmed Ali (minor ) Jaffar Hussain (Guardian) Birth certificate is required in case of minor in case, the CINC of pardah nashin lady does not contain photograph , in addition to CNIC, any other document such as drivers license or passport that contains a photograph should be obtainedClubs, Association, Societies, Charitable Organizations

Certified copies of Certificate of Registration and By- Laws/ Rules & Regulations

An undertaking signed by all the authorized persons on behalf o the institution on the account, the banker will be informed immediately Certified copy of the resolution passed by the Governing body/Executive Committee/Managing/Working Committee of the Society/Club or Association authorized person to operate the account Attested copy of the identity card of the authorized persons shall be obtained List of Members of the Executive/Managing/Working Committee No Club, Association , Societies& Charitable Organizations account shall be opened without prior permission from the Head Office Declaration Form No III shall also be signed on mandate form/

Partnership Account Partnership declaration No IV on the Mandate Form duly signed by each partner under companys stamp Attested photocopies of CNIC of all partners Attested copy Partnership Deed duly signed by all the partners of the firm

Attested copy of Registration Certificate with the registrar of Firms I case the partnership is unregistered, this fact should be clearly mentioned on the AOF Authority letter, in original , in favor of the person authorized to operate on account of the firm Partnership deed executed on stamped paper if formal agreement has been drawn up, which must include the under noted information: Names of all partners;

Partner powers to instruct bank on financial maters and operation of account

Dissolution of partnership/Death of partner etcJoint Stock Companies Account Opening form completed in all respect and signed under company stamp

Certified copies of: Resolution of board of directors for opening of account specifying the person authorized to operate the company account

Memorandum and article of Association

Certificate f incorporation

Certificate of commencement of business

Attested photocopy of identity card of all the director s

List of directors corresponding to the one printed in the memorandum and article and association

All subsequent changes, addition/deletion of directors evidenced by letter or certificate issued by Registrar of companies

All document to be signed under company stamp

Trust Account Attested copy of certificate of registration

Attested copies of CNIC of all the trustees

Certified copies of instrument of Trust

No trust account shall b opened without prior permission from the head office

Executive and Administrators Attested photocopy of CNIC of the Executor/Administrators

Certified copy of letter of Administration or probate Accounts of Executors Administration shall not be opened without t prior permission from the Head Office All the Executors/Administrator shall sign the AOF, if more than one to whom probate has been granted The probate or letter of administration shall be duly registered at the branch

Clear instructions under the signatures of all the executors and .or Administrators shall be obtained to determine as to which of the Executors or Administrators shall operate the account

Bank shall not accept any power of attorney or authority letter given by the Executors or Administrators to third parties to operate the account

Procedure;

Following are the things/procedure which is performed in the banks that I observed and also practically done:

The customer visit the bank

the AOD(Account Opening Desk) officer explains the requirements with respect to account type desired by the customer The officer also explains the minimum account balance requirement and documentation required to open the account the customer The AOD officer hands over the Account Opening From, SS card, Claque Book Request form to the Customer.

The AOD officer also offers the ATM/UB online application form to the customer

The customer fills in the Account Opening Form, Cheque Book Request ,ATM& UB Online Request, SS Card and submits relevant documentation as per banks Requirement

the AOF and other document should be signed by the customer in the presence of AOD officer designated to open the account

The customer provides original CINC/Passport along with the photocopy for attestation / verification to the designated officer. The original documents are returned to customer after verification/attestation

The AOD officer scrutinizes the AOF ,other documents and SS CARD, Blank spaces on AOF and SS card are crossed out or marked VOID

Ensure that the account-operating instructions are clearly defined and specified

The AOD officer interviews the customer to ensure genuineness of the information provided If signature of introducer not holding the account at branch forwards the request to respective Branch /Bank for verification Issue the Cheque book after Verification received from the respective Branch/.Bank

The AOD officer ensures that the documents are complete in all respect, otherwise if any document is missing or incomplete should be referred to the AM/BM for deferral approval

If deferral is approved, it should be recorded in the register maintained with the AOD officer and monitored by the AOM/BM/OM.

The AOD officer/supervisor approves the AOF

The missing/incomplete document must be completed by the designated officer at an early date and submitted to Hub

The Regional Operations Head on monthly bias shall submit repot of all pending deferral cases at Hubs to Country Operations, Head Office. Due to computerized branch the AOD officer used the following the steps Go to the maintenance option then to the Customer Account and then Open Account

The AOD Officer also scans the SS card and files it in the sequential order in the card box

The AOD officer forwards the AOF, the documents and SS cared to the HUB for record keeping

The AOD officer fills in the deposit slip for initial deposit and hands it over to the customer

The customer deposits the cash with the teller

The teller receives the cash from the customer and stamps Received cash on both portions of the pay in slip and post in active ledger

Initial deposits is noted on AOF

The letter of Thanks is prepared by the AOD officer and mail to customer and introducer

If the letter of thanks returned then call to customer and verify the customer address and mailed the letter again

The returned letter of thanks shall be entered in a register and filed with the AOFISSUANCE OF CHEQUE BOOK

Introduction:

To facilitate the customers to withdraw cash from their accounts or to settle their financial obligations, Cheque book is provided to account holders. Cheques drawn by customers have legal implications under Negotiable Instruments Act; therefore all the best precautions must be exercised in the safe custody of the Cheque books

POLICY:1. Cheque books against new account should be issued against instruction on account opening form/authority letter signed by the customer and after the account opening form is completed in all respect and approved by the designated officer the Cheque book request should be processed

2. Cheque book against an already existing account would be issued only against the Cheque book requisition extracted from the previous Cheque book else upon receipt of customer written request incase If the prior is lost

3. The designated officer/ Teller on receipt of Cheque book requisition/request letter shall writes date of receipt and time and checks the cheque book disposal instructions, whether cheque book shall be collected:

Personally

Through Authorized agent

Should be dispatched through courier

If no instruction is given it shall be deemed that the cheque book shall be collected personally or through an authorized agent

4. Separate folio in the cheque book register shall be allotted for current /saving account cheque books of different leaves i.e. of 25,50,100 etc.

Third & Fourth WeekPROCEDURE FOR ACCOUNT TO ACCOUNT TRANSFER (Against cheque)Transfer involves transaction to be settled between the customers of the same branch or customer of remote branch in case of authorized UniRemote system user (online) branch

The Teller receives cheque from depositor along with the deposit slip

The Teller scrutinizes cheque and deposit slip for any discrepancy and confirms :

Cheque is signed and in favor of account holder ,endorsed or bearer

Cheque and deposit slip amount agrees

Details and amount on both parts of deposit slip tally

Cheque is not stale /post dated or mutilated

Alteration / cutting addition on cheque, if any is authenticated by the drawer and on deposit slip by depositor

Cheque is drown on t he same branch or remote branch .in case cheque is drawn on remote branch ,confirms drawee branch is online

Deposit slip is signed by the depositor

The Teller verifies signature , title of account (if mentioned on cheque and number and posts debit transaction against balance available in unibank system using any of the following two options:

Teller confirms beneficiary account name and number and posts credit in the customer ;s account using Unibank system

The teller affixes Transfer and branch stamp, signs and delivers receipt to the depositor

the Teller affixes bank crossing stamp on the face of the cheque and endorsement is signed by the supervisor

Fifth WeekREMITTANCE DEPARTMENT:Remittance (transfer of money) Demand draft (D.D)

Pay Order (PO)

Rupees Traveler Cheque(T.T)

Mail Transfer(M.T)

Modes of Remitting Through cheque

Through cash

Through letter of instruction(authority letter)

ISSUANCE OF PAY ORDER:1. Request for issuance of pay order shall be received on our standard application remittance form. Customers written request shall fill in the following details: Name of beneficiary

Amount of Pay Order

His address and telephone number

Shall attach photo copy of CNIC which shall be compared with original before attestation2. If our bonafide account holder, his signature on the prescribed place with account number shall be obtained.3. the cash officer / teller shall check remittance form ensuring that all required information is provided and it is signed4. charges as per effective SOC(schedule of charges) shall be applied

5. if pay order is to be issued against cash , amount of pay order and charges shall be received in cash after proper countingCash officer /teller shall affix Received cash stamp (preferably red ink pad should be used) & sign (preferably in red ink) in acknowledgement of having received amount of pay order and, Amount of pay order shall e written in figure and amount of chares shall be circled

6. in case cheque is tendered along with remittance form, debit voucher for the charges shall be prepared and both cheque and debit voucher shall be posted in the ledger /system , subject t the availability of clear / effective credit balance and transfer stamp shall be affixed on both vouchers

ISSUANCE OF DEMAND DRAFT:

Request for issuance of Demand Draft shall be received on our standard application remittance form. Customers written request shall fill in the following details: Name of beneficiary

City where it is to be drawn

Amount of Pay Order

Mode of payment

His address and telephone number

Shall attach photo copy of CNIC which shall be compared with original before attestation

Signature of the applicant

If our bonafide account holder, his signature on the prescribed place with account number shall be obtained The cash officer / teller shall check remittance form ensuring that all required information is provided and it is signed Charges as per effective SOC(schedule of charges) shall be applied If Demand Draft is to be issued against cash , amount of Demand Draft and charges shall be received in cash after proper counting

Cash officer /teller shall affix Received cash stamp (preferably red ink pad should be used ) & sign (preferably in red ink )in acknowledgement of having received amount of Demand Draft and ,Amount of Demand Draft shall e written in figure and amount of chares shall be circled In case cheque is tendered along with remittance form, debit voucher for the charges shall be prepared and both cheque and debit voucher shall be posted in the ledger /system , subject t the availability of clear / effective credit balance and transfer stamp shall be affixed on both vouchers

Last WeekCLEARING DEPARTMENT:

Clearing is a system available in banks to collect the proceeds of cheques / others instruments (PO, DD etc,) on behalf of customers from the drawee (paying) banks situated in the same city. Collecting bank acts as an agent of the customer, maintained with collecting banks

OUTWARD CLEARING: Instruments /cheques drawn on other banks are deposited at UBL counters

UBL account holders are the payees/ beneficiaries of the instruments /cheques

UBL is the Collecting Bank and other banks are paying banks

UBL customer accounts are credit as a result of outward clearing

INWARD CLEARING:

Instruments /cheques drawn on UBL are deposited at other banks counters

UBL account holders are the drawers of the instruments /cheques

UBL is the paying banks k and other banks are Collecting banks

UBL customer accounts are debited as a result of inward clearing BENEFITS OF CLEARING:

No physical transfer of money

Saves time and effort

Minimizes the use of cash

Security to the banking system/customer

Promotes trade and commerce

Encourage acceptability of cheques and other instrumentsPROCEDURE FOR OUTWARD CLEARING

The Teller receive deposit slip and cheques drawn on any other bank /UBL branch in the city and scrutinizes deposit slip /cheques for the following:

1. Amount of cheques agrees with amount on deposit slip 2. Amount in words /figures on cheque /deposit slip agree3. Cheque is bearer, in favor of account holder or endorsed 4. Crossing and clearing stamps if preciously affixed are cancelled 5. Cheque is not stale /post dated / out dated6. Cutting /alteration /addition on cheque , if any are authenticated by drawer 7. Details on both part of deposit slip tally and bear depositors signature8. Deposit slip bears same days date otherwise date should be corrected and authenticated by the depositor The teller affixes bank crossing and (next working days) clearing stamp on the face of the cheque, and endorsement stamp on the reverse The Clearing /Transfer delivery cheques are entered in Unibank system under single entry option or batch entry option The unibank system requires posting and value date entered beside the following Customer a/c number, drawee bank /branch code, cheque number and amount Endorsement on reverse of instruments is signed by the supervisor /officer The funds against the cheque deposited are made available to the customer the same day or on next day depending upon the nature of clearing that is special or normal

A detailed clearing register , schedule and summary will be generated from the Unibank system which contains all the details of each and every instruments /cheque such as:

Cheque number, amount of each cheque, drawee bank name, branch name.National Institutional Facilitation Technologies (Private) Limited (NIFT) The clearing schedule summary , schedule after balancing and preparing bundles of cheques and attaching add listing is to NIFT , in satchel, against acknowledgement as per NIFT requirement The NIFT after clearing provides IBCA for net amount i.e. precede of cheques delivered less cheques dishonored (if any )

Financial AnalysisFinancial statements like an income statement and balance sheet provide the more significant information about the position of business and the result of its operations. The parties that are more interested to know the result and financial position of the company are:

Stockholder of the Company Management of the Company Creditors such as Banks and Other Financial Institutions from those Companies have borrowed short, medium and long term funds.

Government agencies such as income tax department.

Employees of the Companies.

General Public including students and researcher.

Generally, above mentioned parties are interested to know

Solvency position of the Company Stability of the Company ProfitabilityComparisons and analysis can be made on a number of different bases. I have analyzed the financial statement of the United Bank Limited by using the following methods:

Financial Analysis (Ratio Analysis) General Analysis

Specialized Analysis United Bank LimitedBalance Sheet

As on 31st December, 2011

United Bank LimitedProfit & Loss Accounts

For the Year ended on 31st December, 2011

Ratio AnalysisRatio means one number expressed in term of another a ratio is statistical yardstick by mean of which relationship between two or various figures can be compared or measured. Here we are going to explain the ratio analysis of UBL (bank) which is little bit different from other organizations.Bank ratio analysis is little bit different from other organizations and if we want to see the real picture of a bank we have to focus on given special ratios.

1. Specialized Analysis

2. General Analysis Solvency Ratio

Profitability Ratio1. Specialized analysis: Earning Assets To Total Assets Return On Earning Assets Net Margin To Earning Assets Loan Loss Coverage Ratio Deposit Time Capital Deposit To Total Asset2. General analysis: Solvency Ratio

Profitability Ratio Market ratio Solvency Ratio Debt Ratio Equity to total assets Debt to Equity Ratio Profitability Ratio

Return on Assets Return on Equity Market ratio

Dividend Yield Ratio Dividend Payout Ratio Retention Ratio Earnings Per ShareBook Value Per Share

SPECIALIZED ANALYSIS1. Earning Assets to Total Assets=

* 100

Earning assets

2010 (in thousands) 2011(in thousands)

Cash and balance with treasury banks67667226

86502444

Balance with other banks 26430928

19225488

Financing

11934778

9536211

Investment

231717214

301106877

Advances

Performing

326441450

329962911

Non-performing

15068962

11176608

Total earning assets

679260558

757510539

Total Assets 726422551 8072047882010=679260558 /726422551 *100 = 93.5%2011= 757510539 /807204788 *100 = 93.8%Year2010 (000)2011 (000)

Earning Assets679260558 757510539

Total Assets726422551807204788

Ratio93.5%93.8%

Interpretation:Earning assets to total assets is the activity ratio of the bank. It shows how effectively bank puts its assets into work. Increasing trend is favorable. The efficiency of the banking firm is measured by its ability to utilize its assets in a manner that they could be profitable for the firm. Bank earning assets are increasing as compare to last year but it is just a little bit increase. This ratio is acceptable as its shows increasing trend from previous year (0.3% higher than previous year). Means bank works more effectively this year. But still need to put more efforts because of though competition in respect of Islamic banking

2. Return on Earning Assets :

=

1002010 = 17688623 / 679260558 *100 = 2.604%2011= 23633636 / 757510539 *100 = 2.928%Year2010 (000)2011(000)

Earning Assets679260558

757510539

Net Profit before tax1768862323633636

Return

2.604%2.928%

Interpretation:It shows the quality of earning assets. Increasing trend is favorable. This ratio is favorable as it shows increasing trend. Its shows earning assets performing so well as compare to the last year (as it shows 0.324% increase).Return on earning assets is increased as compare to previous year because there is increased in net profit in 2010 as compare to 2011. The increasing trend in this ratio is beneficial for business and investors because this ratio shows real profitability position of business.

3. Net Margin To Earning Assets : =

1002010=34838226 / 679260558*100 = 5.129%2011=40034742 / 757510539 *100 = 5.0%Year2010(000)2011 (000)

Earning Assets679260558757510539

Net Margin3483822640034742

Ratio5.129%

5.0%

Interpretation:Spread is difference between interest income and interest expense. This ratio shows the spread position of a bank. Net margin to earning assets shows how effectively bank control the spread mark up revenue over mark up expenses. In our case the ratio is not good as it shows a decreasing trend (.129%). It means mark up revenue decrease against mark up expenses.

4. Loan Loss Coverage Ratio:

=

2010=(17688623+304026) / (1007896+304026) = 13.7152011=(23633636+412115) / (340416+412115) = 31.952

Year2010 (000)2011 (000)

Pre Tax Income1768862323633636

Provision for non performing loan304026412115

Net Charges Off1007896340416

Ratio13.715

31.952

Interpretation:Loan loss coverage ratio shows how much protection available to depositor against their amount invested in the bank. Increasing trend is favorable. Ratio is higher than the previous year. This shows a positive sign. It may be a cause of customer switching from other banks to UBL.

5. Deposit Time Capital: =

2010=567611258 / 75134180 = 7.555 times2011=633889416 / 85920646 = 7.378 timesYear2010 (000)2011 (000)

Total Deposit567611258633889416

Equity7513418085920646

Ratio7.5557.378

Interpretation:Deposit time capital is two folded ratio. Both increasing and decreasing trend are favorable. Increasing trend shows efficiency of the bank where decreasing trends shows good solvency of the bank. In our case it shows a decreasing trend means bank increase its equity 0.177 times as compare to its previous year.

6. Deposit To Total Asset:

=

2010=567611258 / 726422551 = 0.7812011=633889416 / 807204788 = 0.785Year2010 (000)2011 (000)

Total Deposit567611258633889416

Total Asset726422551807204788

Ratio0.7810.785

Interpretation:

Deposit to total assets shows how much assets are financed through deposit. It also a two folded ratio. Both trends are favorable. Increasing trend shows increment in deposits where decreasing trend (.004) shows more assets are financed through deposits.

General AnalysisSolvency Ratio1. Debt Ratio =2010= 651288371 / 726422551 = 0.8972011=721284142 / 807204788 = 0.894Year2010 (000)2011 (000)

Total Debt651288371

721284142

Total Asset726422551807204788

Ratio0.897:10.894:1

Interpretation:

The Debt Ratio is a financial ratio that indicates the percentage of a company's assets that are provided via debt. It is the ratio of total debt (the sum of current liabilities and long-term liabilities) and total assets (the sum of current assets, fixed assets, and other assets such as 'goodwill'). In this Assets like balance with other banks, advances, lending to financial institution decrease by 0.003.2. Equity Ratio:

=2010= 75,134,180 / 726422551 = 0.1032011=85,920,646 / 807204788 = 0.106Year2010 (000)2011 (000)

Total Equity75,134,180

85,920,646

Total Asset726422551807204788

Ratio0.103:10.106:1

Interpretation:

The Equity ratio is a financial ratio indicating the relative proportion of equity used to finance a company's assets. The two components are often taken from the firm's balance sheet or statement of financial position (so-called book value), but the ratio may also be calculated using market values for both, if the company's equities are publicly traded. In this year Total equity increase by 10786466 and in percentage Increase by 0.003.3. Debt To Equity Ratio:

=

2010= 651288371 / 75134180 = 0.8972011=721284142 / 85920646 = 0.894Year2010 (000)2011 (000)

Total Debt651288371

721284142

Total Equity75,134,180 85,920,646

Ratio8.668:18.395:1

Interpretation:

The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as Risk, Gearing or Leverage. In this ratio Debt decrease as compare to last year which decreases by 0.273.Summary:Name of ratio20102011ResultReason for changes

Debt ratio0.897:10.894:1decrease by 0.003Assets like balance with other banks, advances, lending to financial institution decrease

Equity ratio 0.103:10.106:1Increase by 0.003Total equity increase by 10786466

Debt to equity ratio8.668:18.395:1decrease by 0.273Debt decrease as compare to last year

Interpretation:

Solvency ratios show favorable result. As debt ratio decrease from previous year (which is good). Equity ratio increase and debt to equity ratio is also favorable. So over its entire solvency ratio show a positive sign and deposits increase.

Profitability Ratio

1. Return on Assets :

=

100

Year2010 (000)2011 (000)

Net income11,020,925

14,887,113

Total Assets726422551807204788

Return0.015:10.018:1

Interpretation:

1. The return on assets (ROA) percentage shows how profitable a company's assets are in generating revenue.

This number tells you what the company can do with what it has, i.e. how many dollars of earnings they derive from each dollar of assets they control. It's a useful number for comparing competing companies in the same industry. The number will vary widely across different industries. Return on assets gives an indication of the capital intensity of the company, which will depend on the industry; companies that require large initial investments will generally have lower return on assets. In this ratio net income increase (11020925 to 14887113) 0.003:1.2. Return on Equity :

= Year2010 (000)2011 (000)

Net Income11,020,925

14,887,113

Equity75,134,18085,920,646

Return0.147:10.173:1

Interpretation:

Return on equity (ROE) measures the rate of return on the ownership interest (shareholders' equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE shows how well a company uses investment funds to generate earnings growth. ROEs between 15% and 20% are considered desirable. In this ratio Net income rises up by 0.026.Summary:

Name of ratio20102011ResultReason for changes

Return on assets0.015:10.018:1increase by 0.003net income increase (11020925 to 14887113 )

Return on equity0.147:10.173:1increase by 0.026Net income rise up.

Profitability ratios show a positive result because both return on assets and equity increase as compare to previous year. It actually shows increasing trend in returns. Bank is focusing on its operation to meet the requirement / expectation of owners.

Market ratio1. Dividend Yield Ratio: = The dividend yield or the dividend-price