Introduction and history of banking & History and introduction of UBL

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The word bank is derived from French word Banque which means safe custody but according to other school of thought it is derived from the word Banca which is an Italian word and it means Bench. According to them in the old times goldsmiths used bench for conducting their business but when he becomes insolvent people used to break their bench, with the passage of time this word becomes bank.

Earliest banks
The first banks were probably the religious temples of the ancient world, and were probably established sometime during the third millennium B.C. Banks probably pre-dated the invention of money. Deposits initially consisted of grain and later other goods including cattle, agricultural implements, and eventually precious metals such as gold, in the form of easy-to-carry compressed plates. Temples and palaces were the safest places to store gold as they were constantly attended and well built. As sacred places, temples presented an extra deterrent to would-be thieves. There are extant records of loans from the 18th century BC in Babylon that were made by temple priests/monks to merchants. Ancient Greece holds further evidence of banking. Greek temples, as well as private entities conducted financial transactions such as loans, deposits and currency exchange. There is evidence too of credit, whereby in return for a payment from a client, a moneylender in one Greek port would write a credit note for the client who could "cash" the note in another city, saving the client the danger of carting coinage with him on his journey. Pythius, who operated as a merchant banker throughout Asia Minor at the beginning of the 5th century B.C., is the first individual banker. Many of the early bankers in Greek city-states were foreign residents. The fourth century B.C. saw increased use of credit-based banking in the Mediterranean world. In Egypt, from early times, grain had been used as a form of money in addition to precious metals, and state granaries functioned as banks. When Group # 1 2 MBA 2nd

Egypt fell under the rule of a Greek dynasty, the Ptolemies (332-30 B.C.), the numerous scattered government granaries were transformed into a network of grain banks, centralized in

Alexandria where the main accounts from all the state granary banks were recorded. This banking network functioned as a trade credit system in which payments were effected by transfer from one account to another without money passing. In the late third century B.C., the barren Aegean island of Delos, known for its magnificent harbor and famous temple of Apollo, became a prominent banking center. As in Egypt, cash transactions were replaced by real credit receipts and payments were made based on simple instructions with accounts kept for each client. Ancient Rome perfected the administrative aspect of banking and saw greater regulation of financial institutions and financial practices. Charging interest on loans and paying interest on deposits became more highly developed and competitive. The development of Roman banks was limited, however, by the Roman preference for cash transactions. During the reign of the Roman emperor Gallienus (260-268 AD), there was a temporary breakdown of the Roman banking system after the banks rejected the flakes of copper produced by his mints. With the ascent of Christianity, banking became subject to additional restrictions, as the charging of interest was seen as immoral.

During Late Antiquity and Middle Ages

During the 3rd century AD, banks in Persia and other territories in the Persian Sassanid Empire issued letters of credit known as akks. Muslim traders are known to have used the cheque or akk system since the time of Harun al-Rashid (9th century) of the Abbasid Caliphate. In the 9th century, a

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Muslim businessman could cash an early form of the cheque in China drawn on sources in Baghdad, a tradition that was significantly strengthened in the 13th and 14th centuries, during the Mongol Empire. Indeed, fragments found in the Cairo Geniza indicate that in

the 12th century cheques remarkably similar to our own were in use, only smaller to save costs on the paper. They contain a sum to be paid and then the order "May so and so pay the bearer such and such an amount". The date and name of the issuer are also apparent. Medieval trade fairs, such as the one in Hamburg, contributed to the growth of banking in a curious way: moneychangers issued documents redeemable at other fairs, in exchange for hard currency. These documents could be cashed at another fair in a different country or at a future fair in the same location. If redeemable at a future date, they would often be discounted by an amount comparable to a rate of interest. Eventually, these documents evolved into bills of exchange, which could be redeemed at any office of the issuing banker. These bills made it possible to transfer large sums of money without the complications of hauling large chests of gold and hiring armed guards to protect the gold from thieves. Beginning around 1100s, the need to transfer large sums of money to finance the Crusades stimulated the re-emergence of banking in western Europe. In 1156, in Genoa, occurred the earliest known foreign exchange contract. Two brothers borrowed 115 Genoese pounds and agreed to reimburse the bank's agents in Constantinople the sum of 460 bezants one month after their arrival in that city. In the following century the use of such contracts grew rapidly. In 1162, King Henry the II levied a tax to support the crusades -- the first of a series of taxes levied by Henry over the years with the same objective. The Templars and Hospitallers acted as Henry's bankers in the Holy Land. The Templars' wide flung, large land holdings across Europe also Group # 1 4 MBA 2nd

emerged in the 1100-1300 time frame as the beginning of Europe-wide banking, as their practice was to take in local currency, for which a demand note would be given that would be good at any of their castles across Europe, allowing movement of money without the usual risk of robbery while traveling.

By 1200 there was a large and growing volume of long-distance and international trade in a number of agricultural commodities and manufactured goods in western Europe; some of the goods traded during that period included wool, finished cloth, wine, salt, wax, leather and leather goods, and weapons and armor. Individual trading concerns and combines often specialized in one or more of these, as did individual producers; because a large amount of capital was required to establish, e.g., a cloth manufacturing business, only the largest firms could diversify. As a result, businesses and clusters of businesses tended to market fairly narrow product lines. Big firms like the Medici bank could and did specialize; the Medicis manufacturing division had a number of manufacturing facilities producing many different types of cloth. Perhaps the best example of product policy comes from the Cistercian monastic order, where individual monasteries and granges tended to specialize in particular agricultural products or types of industrial production, usually with an eye to meeting particular local or regional market needs. So expanded business activities in the world also expanded the business of banking. In 1327, Avignon had 43 branches of Italian banking houses. In 1347, Edward III of England defaulted on loans. Later there was the bankruptcy of the Peruzzi (1374) and Bardi (1353). Banca Monte dei Paschi di Siena (MPS) Italy is the oldest surviving bank in the world. After 1400, political forces turned against the methods of the Italian free enterprise bankers. In 1401, King Martin I of Aragon expelled them. In 1403, Henry IV of England prohibited them from taking profits in any way in his kingdom. In 1409, Flanders imprisoned and then expelled Genoese bankers. In 1410, all Italian merchants were expelled from Paris. In 1401, the Bank of Barcelona was founded. In 1407, the

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Bank of Saint George was founded in Genoa. This bank dominated business in the Mediterranean. In 1403 charging interest on loans was ruled legal in Florence despite the traditional Christian prohibition of usury. Italian banks such as the Lombards, who had

agents in the main economic centers of Europe, had been making charges for loans. In 1440, Gutenberg invents the modern printing press although Europe already knew of the use of paper money in China. The printing press design was subsequently modified, by Leonardo da Vinci among others, for use in minting coins nearly two centuries before printed banknotes were produced in the West.

Banking From 16th to 20th century

Modern banking no doubt is the result of development in the western banking. The London Royal Exchange was established in 1565. At that time moneychangers were already called bankers, though the term "bank" usually referred to their offices, and did not carry the meaning it does today. There was also a hierarchical order among professionals; at the top were the bankers who did business with heads of state, next were the city exchanges. In 1609 the Amsterdamsche Wisselbank (Amsterdam Exchange Bank) was founded which made Amsterdam the financial centre of the world until the Industrial Revolution. Banking offices were usually located near centers of trade, and in the late 17th century, the largest centers for commerce were the ports of Amsterdam, London, and Hamburg. Individuals could participate in the lucrative East India trade by purchasing bills of credit from these banks, but the price they received for commodities was dependent on the ships returning (which often didn't happen on time) and on the cargo they carried (which often wasn't according to plan). The commodities market was very volatile for this reason, and also because of the many wars that led to cargo seizures and loss of ships.

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In the 1970s, a number of smaller crashes tied to the policies put in place following the depression, resulted in deregulation and privatization of governmentowned enterprises in the 1980s, indicating that governments of industrial countries around the world found private-sector solutions to problems of economic growth and development

preferable to state-operated, semi-socialist programs. This spurred a trend that was already prevalent in the business sector, large companies becoming global and dealing with customers, suppliers, manufacturing, and information centers all over the world. Global banking and capital market services proliferated during the 1980s and 1990s as a result of a great increase in demand from companies, governments, and financial institutions, but also because financial market conditions were buoyant and, on the whole, bullish. Interest rates in the United States declined from about 15% for twoyear U.S. Treasury notes to about 5% during the 20-year period, and financial assets grew then at a rate approximately twice the rate of the world economy. Such growth rate would have been lower, in the last twenty years, were it not for the profound effects of the internationalization of financial markets especially U.S. Foreign investments, particularly from Japan, who not only provided the funds to corporations in the U.S., but also helped finance the federal government; thus, transforming the U.S. stock market by far into the largest in the world. Nevertheless, in recent years, the dominance of U.S. financial markets has been disappearing and there has been an increasing interest in foreign stocks. The extraordinary growth of foreign financial markets results from both large increases in the pool of savings in foreign countries, such as Japan, and, especially, the deregulation of foreign financial markets, which has enabled them to expand their activities. Thus, American corporations and banks have started seeking investment opportunities abroad, prompting the development in the U.S. of mutual funds specializing in trading in foreign stock markets.

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Such growing internationalization and opportunity in financial services has entirely changed the competitive landscape, as now many banks have demonstrated a preference for the universal banking model prevalent in Europe. Universal banks are free to engage in all forms of financial services, make investments in client companies, and function as much as possible as a one-stop supplier of both retail and wholesale financial services.

Many such possible alignments could be accomplished only by large acquisitions, and there were many of them. By the end of 2000, a year in which a record level of financial services transactions with a market value of $10.5 trillion occurred, the top ten banks commanded a market share of more than 80% and the top five, 55%. Of the top ten banks ranked by market share, seven were large universal-type banks (three American and four European), and the remaining three were large U.S. investment banks who between them accounted for a 33% market share. So by this step by step progress now the banking system in the world is well established and is also making progress day by day.

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H I S TO RY O F T H E B A N K I N G S E C TO R I N PAK I S TA N
1940s Prior to partition in 1947, branches of British banks dominated banking in Pakistan. The first domestic banking institutions emerged in the 1940s, immediately preceding or shortly after Pakistans independence from Britain. These institutions include Australasia Bank (today: Allied Bank Ltd. or ABL), Habib Bank (HBL), Muslim Commercial Bank (MCB), and the National Bank of Pakistan (NBP). other three banks. Except for the NBP which was wholly government-owned, prominent merchant families established the

1948 The SBP or State Bank of Pakistan (the central bank) was formed after Partition. It assumed the supervisory and monetary policy powers of the Central Bank of India.

1955 The Government issued the State Bank Ordinance,

explaining the functions of the state bank in the emerging Pakistan.

1959 United Bank Limited (UBL) formed. 1960/70s 1960-65: During the second five-year plan (1960-65), the SBP opened six new offices. The number of other bank branches

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increased from 430 to 1,591 over the period. increased to Rs5,759mn from

Total deposits the period,

increased from Rs2,943mn to Rs6,883mn, while total advances Rs1,458mn.During comprehensive banking laws were formulated. 1965-70: During the third five year plan (1965-70), the total number of bank branches increased to 3,133, with a 91% increase in deposits and a 64% growth in advances. The emergence of a number of specialized development finance institutions (DFIs) such as Industrial Development Bank of Pakistan (IDBP) and the Agricultural Development Bank (ADB). These DFIs were either controlled directly by the state or through the SBP, and were intended to concentrate on specific priority sector lending. 1974 The government of Zulfiqar Ali Bhutto nationalized all domestic commercial banks. The Pakistan Banking Council (PBC) However, PBC was dissolved (leasing companies and was established, which assumed the role of a bank holding company but with limited supervisory powers. and financial institutions in in1997, leaving the SBP as the sole regulatory authority for banks Pakistan modarabas are now regulated by the Corporate Law Authority). Nationalization of the banking sector led to significant government interference. 1977(Islamic Banking) Islamic banking system has emerged as a competitive and a viable substitute for the conventional banking system during the last three decades. It is especially true for Muslim world where presently Islamic banking strides at two separate fronts. At one side, efforts are also underway to convert the entire financial systems in accordance to Islamic laws (Shariah). At the other side, separate Islamic banks are

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allowed to operate in parallel to conventional interest based banks. Pakistan and Malaysia are the two good examples of above mentioned approaches. Both countries adopted different tracks for the same ultimate destination of developing full fledge viable Islamic financial system and produced quite interesting results. The Government of Pakistan tried to convert the entire financial system to an interest free system through presidential orders at a national level. However, the overnight practice of islamization didnt achieve the required success. Most of the efforts have either been reversed or further developments have been stopped. Malaysia opted for the alternative gradual way of developing and implementing Islamic banking system. Starting with one Islamic bank it later allowed conventional financial institutions to offer and participate in Islamic banking products and services through their existing staff and branches. The country is now actively involved in designing new Islamic financial instruments for capital and money market transactions. This study provides the comparative analysis of implementing two opposite Islamic banking approaches, one in Pakistan and other in Malaysia along with their acquired results. The process of islamization the financial system of Pakistan is started in the late seventies. Pakistan was among the three countries in the world that has been trying to implement Islamic banking at national level. This process started with presidential order to the local Council of Islamic Ideology (CII) on September 29, 1977. The council was asked to prepare the blueprint of interest free economic system. The council included panelists of bankers and economists who submitted their report in February 1980, highlighting various ways and sufficient details for eliminating the interest from the financial system of Pakistan. This report was a landmark in the efforts for Islamizing the banking system in Pakistan. 1991-92 1991: After the opening up of the economy, the Sharif Government introduced the second set of banking sector reforms. Deregulation of the financial sector and capital markets led to mushrooming growth of banking companies in the private sector. 1991: MCB privatized by Sharif Government. Group # 1 12 MBA 2nd

1991: Allied Bank Limited was privatized. Privatization Commission.

Employees

of the bank took it over matching the highest bid received by the

1992: Nawaz Sharif introduced a yellow cab scheme that took Rs10bn from the local banking sector. 1995 The SBP canceled the privatization of United Bank, which was bought by a Saudi based group. 1996 The Privatization Commission called for bids for the privatization of HBL. 1996 Financial sector reforms were introduced by the

caretaker government of Meraj Khalid. 1997 Nawaz Sharif took steps to implement banking sector reforms. 1998-2010 All banks except NBP were denationalized. The banking sector of Pakistan in this era made rapid progress. Huge number of new branches has been opened and the quality of services has been improved. All banks are engaged in online banking which provides modern age facilities to the customers. Conclusion This data shows that the history of banking in Pakistan is mainly influenced by nationalization and denationalization but the main progress and development in the field of banking was made during the era of privatization.

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HISTORY OF UBL
UBL opened up for business on November 7, 1959 with authorized capital of Rs.20 million and Paid-up capital of Rs.10 million. In its very first year, it mobilized deposits of Rs.70 million and earned a profit of Rs.O.7 million. It continued to grow rapidly and soon became one of the largest banks in the country. The main reasons for its exemplary growth were the introduction, in many instances for the first time in Pakistan, of professional management, computers, economic and business research, latest managerial practices and customer orientation. UBL remained in the private sector for 15 years until it was nationalized on January 1, 1974 with other Pakistani banks. The bank continued to grow rapidly even after nationalization. Its resource base expanded, the number of branches increased, and overseas operations grew. As an organization, UBL has grown rapidly except in the last couple of years when it ran into some problems. In 1996, its deposits totaled Rs.105.9 billion; advances amounted to Rs.68.6 billion; assets totaled Rs.177 billion and the number of branches was 1701, including 27 overseas branches. More recently, the lackluster growth of the economy has undermined the banking sector's profitability and competitiveness. UBL's new management has developed a well-thought-out plan for its growth and profitability. In the main, it focuses on accelerated loan recovery, surplus asset disposal, improving credit systems, operational controls, reporting and monitoring. From a practical standpoint, the use of better technology, focusing on the appropriate market segment, and project and specialized finance will facilitate rapid and sustainable growth. The world's financial system or, to use the latest jargon, financial architecture, has changed greatly. New products have been introduced, the riskiness of financial systems has increased and the lines of demarcation between the various types of financial institutions have become blurred.

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Improvement in consumer service and prompt attention to customer needs lie at the heart of UBL's promotional strategy. All planning is directed and geared to customer service and satisfying the client's diverse needs. The UBL of the past was renowned for its customer service and the management plans to put new life into it. To that end, training programmes have been accelerated and upgraded and the staff is encouraged to revamp their skills. The steps taken to shore up UBL have begun to take effect. The first signs of recovery have become manifest. A key indicator is the level of recovery. In 1997, total debt settlements amounted to Rs.7 billion, well above the level in the preceding year. In 1998, UBL's target for debt settlement is Rs.11.5 billion. The Bank's Paid-up capital is Rs.1.48 billion. It is not enough to meet capital adequacy ratio, but the package the State Bank of Pakistan has put together to shore up UBL will provide Rs.21 billion to increase the capital base. This huge infusion of capital would improve the Bank's liquidity and boost public confidence. In turn, it would enable it to step up deposit mobilization, expand its activities, pay depositors a higher return, and upgrade technology. All of these would impact on profitability. UBL has always been an upbeat and growth-oriented institution, but this does not mean that it has been oblivious to the social responsibilities of business organizations. It always fulfilled the mandatory credit targets it was given for loaning to the priority sectors. As part of the government's policy to improve the technical skills of Pakistani workers, it has set up two computer literacy centers at Sheikhupura and Muzaffarabad. On the level of social services per se, the Bank has encouraged sports and built a first-rate sports complex in Karachi. It is soon going to link up with Internet and SWIFT to provide prompt, responsive service. It has major plans to train the staff to provide customers the services they expect from first-rate banks.

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Vision Of UBL

The vision of UBL is to become a world

class bank and to respond according to highest expectations of our customers and other stakeholders.

Mission Statement Of UBL

The Mission Of UBL is to meet the corporate needs and to make sure Customer full satisfaction by product innovation Personalized banking and Top Notch Service.

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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.

Domestic and International Network

Major Local Market Presence: UBL is one of the largest commercial banks in Pakistan representing

approximately 09% of the deposits of the banking sector.

A Household Name: UBL's brand name is well established. It has an extensive domestic

network of 1,375 branches reaching virtually every segment of the Pakistani economy.

A Full Service Bank: UBL provides its customers a complete range of banking products and

services including retail banking, corporate and institutional banking, trade finance and consumer finance.

An International Bank: UBL has a presence globally through an extensive international branch

network in the table below;

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Location

No of Branches 4 3 1 1 1 1 1 1 1 1 1 1 1 1 1

UAE (Total Branches: 8) Abu Dhabi Dubai Sharjah Bahrain (Total Branches: 3) Manama Babul Bahrain Moharrak Qatar (Total Branches: 1) Doha Yemen (Total Branches:2) Sana Hudiada UK (Total Branches: 4) London Bradford Manchester Birmingham USA (Total Branches:1) New York Export Processing Zone (Total Branches: 1) Karachi

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List Of Board of Directors

Chairman His Highness Shaikh Nahayan Mabarak Al Nahayan

Deputy Chairman Sir Mohammed Anwar Pervez OBE

President & CEO Mr. Atif R. Bokhari

Director Mr. Omar Ziad Jaafar Al Askari

Director Mr. Zameer Mohammed Choudrey

Director Mr. Ahmad Waqar

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Director Dr. Ashfaque Hasan Khan

Director Mr. M. Tahsin Khan Iqbal

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

Mr. Atif R. Bokhari President and C.E.O

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Mr. M.A. Mannan Group Executive Consumer/Commercial Bank

Mr. Nauman Hussain Group Operations & Technology Head

Mr. Risha Mohyeddin Group Executive Treasury & Capital Markets

Mr. Aameer Karachiwalla Group CFO

Mr. Ayaz H. Shamsi Group Executive Human Resources

Mr. Muhammad Ejazuddin Group Audit & Inspection Head

Mr. Tariq Mohar Group Business Support / Collections Head

Mr. Mohammad Asghar Group Commercial Bank Head

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DEPARTMENTS & PRODUCTS

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Treasury & Capital Markets

This department is interacting with the market and dealing with Core Treasury Products in the money market and foreign exchange. The main purpose of the treasury department of any company is to maintain the liquidity for that company. Same is the case with Banking Industry as well. The treasury department has to manage the buffer stock (in terms of cash) of the bank and they have to maintain the liquidity for giving Advances to their customers.

Corporate Banking
The main objective of the Corporate Banking is to look after the special customers who give huge amount of deposits or take higher amounts of Advances. Because a Hub Branch can give the Advances up to Rs. 200 Million. And the party who needs a loan more than Rs. 200 Million they have to contact to the Corporate Branch of the UBL.

Investment Group
This department supports the Corporate Department. When a company wants to install a new project and require the finance from the bank then it is the responsibility of Investment Department to analyze the targets of the project and success or failure of the project. If it is feasible to loan that party then they pass the loan otherwise not. This is called the Project Finance. UBLs Investment Banking Group continues its leadership position in providing innovative and unique financial solution to its clients by anticipating their changing requirements and developing new products and services. UBL (Investment Banking Group) IBG offers full spectrum of services.

Consumer Banking
The consumer bank is divided on business lines based on product offerings. These are led by the product teams who encapsulate the futuristic features, the

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marketing team who has set a new trend in the banking industry through catchy taglines

in Urdu and the sales teams which have broken all sales records. Business is further supported by dedicated cross-functional teams comprising of credit, operations, collections and finance. The consumer banking is further sub divided into following parts UBLs visa credit card: This has the distinction of being the first EMV chip-enabled card in South Asia. UBL Address & UBL drive: the home and auto loan products respectively, which captured the bulk of the market share within the first few months of their launch. UBL cashline (running finance) and UBL businessline (business finance) are the flexible credit line facilities with competitive mark ups.

Human Resource Department

This Department does all the activities related to Human Resources (HR) and Personnel Management like Job Analysis, Job Design, Job Description, Job Redesign, Job Specification, Recruitment (is the process of finding and attracting capable applicants for employment through Advertising, Employee Referrals, Private Placement Agencies etc.), Selection by written tests and interviews, Orientation, Training, Career Planning, Performance Appraisal (employee performance and accountability), Compensation and Protection, Union-Management Relations etc. It also involves in the following activities:

Transfers& Postings Scrutinizing bills (Hospital Bill) Mandatory Leaves and its observance. Staff leaves and other related staff matters

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Goals of all Staff

Monthly Statement of Staff Disciplinary Action Cases Cases Retired employees & its correspondence All Staff Deceased cases & its Correspondence Staff legal cases & Court at Sahiwal & Lahore. Retrenchment cases Complaints and its correspondence

Finance Department
The primary responsibility of Finance department is to provide reliable, consistent and timely information to management, shareholders, regulators and internal business groups to help them take appropriate decisions for improved performance of the bank.

Marketing Department
Marketing department cover the areas related to the products and services provided to the customer and other promotional policies.

Information Technology Department

Information Technology (IT) Department is related with all computer activities like it manage the Central Data Base (CDB) which is placed in Karachi Head Office of UBL, where all the daily transactions in all the branches of the country are updated on daily basis. The area of major focus for IT Department is the building of infrastructure for the launch of the consumer business.

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UBL made significant investments in consumer related best in class computer systems, which have supported the launch of feature rich consumer banking products.

Audit and Inspection Department

The responsibility of this department is to audit and inspect the operations of the branches. This department checks whether the operations are compliance by the branches in a right way or not. The CCD (Control and Compliance Department) comes under this department. Audit has a support role to play by helping line management in achieving their business goals by ensuring that the operational risks are properly controlled and kept at minimum acceptable level. Audit group is committed to meet its objective that is to act as an independent appraiser that reviews systems, controls and quality of performance with the vision to protect the interest of stakeholders and to safeguard the assets of the organization besides the implementation of an effective and efficient internal control systems.

ACCOUNTS DEPARTMENT
Following functions cover the working of the Accounts Department: Accounts Vouchers for Expenses/Billing. Treasury Foreign Currency dealings, cash & funds management HRD (Human Resource Department) Employee salaries/Loans/Provident fund. Financial Control Unit SBP (State Bank Of Pakistan) cheques. Reconciliation Control Unit. ATM automated Teller Machine. Tax deduction and collection. General services department.

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Reporting (daily, weekly, monthly, quarterly, half-yearly, annually) Update general ledger Prepare & printout different period statements Maintain and update the ledgers for term deposits

Products of UBL
A) DEPOSITS
1. UBL BUSINESS PARTNER: UBL Business Partner comes with unmatched free offers. We truly value your partnership and believe in offering you the preference you deserve. Now individuals and sole proprietorships can become our preferred Business Partner by maintaining Rs.250, 000/- or above in their current account and get the following services absolutely free! Unlimited Real Time Online Transactions Issuance of Pay Order, Demand Draft & Telegraphic Transfer UBL Wallet ATM/Debit Card Cheque Book Collection / Clearing of Cheques Lockers, small, medium and large (subject to availability) No Cheque Return Charges 50% discount on UBL Credit Card Annual

2. RUPEE TRANSFER ACCOUNT: If you choose to keep a deposit in a secured savings account which also gives an attractive rate of return, then UBLs PLS Savings Account

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will serve all your financial needs. By keeping your deposits in UBLs PLS Savings Account you can also avail the following services:
SPECIAL FEATURES

No limitation on withdrawals Share of profit is credited on half -yearly basis

Profit is calculated on monthly balances UBL offers free accidental and permanent disability insurance to individual and joint account holders

3. BASIC BANKING ACCOUNT (BBA): To accommodate the banking needs of low income groups, United Bank Limited is pleased to launch the UBL Basic Banking Account Scheme (UBL BBA) from branch network all over Pakistan. This is primarily aimed toward helping the low income group to benefit from the banking services without having the pressure to maintain specific balance amount with the banks. Find below basic product features of the Product:
SPECIAL FEATURES

The minimum initial deposit at the time of account opening is to be Rs.1000/-. Basic Banking Account will be a current account. There is no minimum balance penalty on UBL BBA accounts, however all accounts having nil balance for a continuous six month period shall be All Business Partner waivers allowed if minimum balance requirement condition as per SOC is met by the account holder closed.

Maximum of two deposit and two withdrawals (cash or clearing) per month are allowed free of charge. However, any transaction (cash or clearing) after those mentioned above will be charged a flat fee of Rs.50/-, in addition to the regular

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charges of services as per SOC. This charge will be system generated end of day, once the customer exhausts his free transaction limits. BBA customers will be allowed unlimited free ATM withdrawals from UBLs own ATMs. However, withdrawals from other banks ATMs will be charged as per the existing SOC (currently Rs.15/- per transaction). Annual fees including issuance and renewal of ATM card will be charged as per existing SOC. All other banking services provided will be charged as per the prevailing SOC.

The statement of account will be issued once a year for UBL BBA customers in June. Issuance of duplicate statement will entail a charge of Rs.50/- as per SOC.

Like other current accounts UBL BBA is also exempt from tax. Any existing customer want to convert his/her checking account into BBA accountant do so by giving a writing application to Branch Manager upon which existing account will be closed and a new UBL BAA account will be opened and anew number will be provided to the customer after due account opening procedures, including submission of CNIC, if not provided earlier. The deposit in the previous account will be transferred to the newly opened UBL BBA. Charges for closing any existing account shall be recovered as per SOC s.

4. UBL UNIFLEX ACCOUNT: UBL has introduced a new checking account ideal for small investors, traders, businessmen and customers from middle income group. They can now afford an amazing rate of return plus value added benefits only available from the UBL UniFlex PLS Savings Account.
SPECIAL FEATURES

Amazing rate of return Convenience of a cheque book Power of Wallet VISA ATM / Debit Card

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Online Banking Facility

UNIFLEX RATES AND TONERS

Four rate tiers are offered to UniFlex customers: Minimum balance touched in a Proposed Rate March 2010* month (Rs.) Rs.0 Rs.10,000 Rs.10001-Rs.100,000 Rs.100,001 Rs.500,000 Rs.500,001 Rs.1000,000 Rs.1,000,001 Rs.10,000,000 Above Rs.10,000,000 500% 550% 600% 650% 700% 750%

* Projected Rates will be announced monthly through UBL Deposits Projected Rate sheet
TERMS AND CONDITIONS

All individual and joint account holders and sole proprietorships are eligible for the UBL UniFlex Account (scheme); Corporations and partnerships are ineligible for the scheme.

Only one UBL UniFlex account per Computerized National Identity Card (CNIC) shall be allowed to be opened in UBL, regardless of the branch; no doubling shall be allowed even as joint account or sole proprietor.

The Bank shall determine from time to time the rate of interest/return/profit payable on the account/deposit in accordance with the prevailing profit and loss sharing rules and regulations of the State Bank of Pakistan and the policies of the

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Bank which are subject to change from time to time and the account holder/depositor agrees to accept such rate of interests/return/profit at the time such change was made. Interest/return/profit shall be accrued monthly, based on minimum balance touched during the month, and disbursed six monthly directly into the UniFlex account. The UBL UniFlex account cannot be overdrawn.

Accounts that are closed in the middle of a month will not be eligible for any interest/return/profit for the broken period of that month.

Wallet VISA card is optional; charges as per Schedule of Bank Charges (SOC). (Please apply on the regular Account Opening Form)

Regular checkbooks shall be provided as per Schedule of Bank Charges (SOC). Customer can conduct a maximum of three free of cost withdrawal transactions in a calendar month (inclusive of all instruments). These withdrawals include but not limited to Net banking, cash withdrawal by ATM, cash withdrawal over the counter, Inter Bank Funds Transfer (IBFT), clearing, collection, Online banking, Tez Raftaar, Tez Ibex, MT/DD/TT/PO/Online (UniRemote), RTC, etc. The Bank will charge a sum of Rs.100/- per transaction for any withdrawal above the threshold of three debit transactions in one calendar month. However, there is no limit for credit transactions in a month.

All single debit incidents to an account will be considered as separate transactions except deductions by the bank for charging service fee, Withholding Tax and Zakat deductions.

The UniFlex Account Holder shall be required to maintain the minimum balance requirement of Rs.10, 000/- during each calendar month. Service charges where the average balance during the month is less than Rs.10, 000/- shall be applied as per the Schedule of Bank Charges (SOC).

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5. UBL UNISAVER ACCOUNT: UBL UniSaver Account is an innovative way of serving your banking needs. Be it trade, business or personal finance, the UBL UniSaver allows you maximum flexibility, yet gives you optimum returns.
SPECIAL FEATURES

Innovative and flexible checking account Attractive rates of return

Profit is calculated on monthly average balance Profit payment is on six monthly basis Higher returns on higher balances Backed by the bank awarded AAA Credit Rating

6. FOREIGN CURRECY SAVINGS: If you wish to maintain a secured foreign currency savings account then UBL is the safest and most secure investment. By opening a UBL foreign currency savings account:
SPECIAL FEATURES

Choose from different range of currencies i.e. US Dollars, British Pounds, and Euros etc.

There are no cash handling (Cash Deposit & Cash Withdrawals) charges from the customers.

Avail different attractive rates depending on the currency you choose. Get the pleasure of availing the best rates of return in the market. Unlimited withdrawals and deposits, making it easier for you to fulfill your routine business needs.

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Avail the services and facility of 9 - 5 non stop full service banking in all foreign currency handling branches such as foreign currency traveler cheque and demand draft issuance against cash and foreign currency cash deposits and withdrawals.

You can withdraw funds in either foreign currency or in Pakistan Rupees, whatever your requirement may be.

UBL offers the widest reach across the country with an increasing number of more than 350 foreign currency dealing branches.

You get to take your profit home every six months. Zakat exempted

UBL offers free accidental and permanent disability insurance to individual and joint account holders

7. FOREIGN CURRENCY TERM DEPOSITS RECEIPTS If you wish to make a secured long term foreign currency investment, UBLs Foreign Currency Term Deposit Receipt is a smart choice, just make an investment and see your deposit grow over time.
SPECAL FEATURES

Choose from different range of currencies i.e. US Dollars, British Pounds, and Euros etc.

Term deposits in foreign currency are offered for the following periods of maturity with variable rates of return:

Three Months Six Months Twelve Months

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There are no cash handling (Cash Deposit & Cash Withdrawals) charges from the customers.

Avail different attractive rates depending on the currency you choose. Get the pleasure of availing the best rates of return in the market. Flexible options of rollover or renew the TDR at the time of encashment. Avail the services and facility of 9 - 5 non stop full service banking in all foreign currency handling branches.

UBL offers the widest reach across the country with an increasing number of more than 350 foreign currency dealing branches.

You can withdraw funds in either foreign currency or in Pakistan Rupees, whatever your requirements may be.

Zakat exempted For all FCY Term Deposits, fixed rate of return on booking month's rate. Special Rates available from for USD 500,000 and above or equivalent. UBL offers free accidental and permanent disability insurance to individual and joint account holders

B) ADVANCES
The lending function of the banking for the production purposes is called Advances.
In banking sector advance is the promise that carries the repayment of the original amount plus an interest on the principal amount, extended as advance. The credit/advance is given on the base of the confidence/trust and on the belief that the customer will be able and willing to pay on the demand or at some future time. UBL is expanding its Advances product portfolio to serve public financing needs better.

TYPES OF ADVANCES

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There are two main types of advances Funded Loans Funded loans are the loans in the form of physical cash. The interest charged on the funded loans is called mark-up.

Non-Funded Loans Non-funded are the loans in the form of guarantee. These are also called the Contingent Liability (at the moment these are not funded but in some future date it may be funded if the person dont pay the amount. For example in the case of LG (letter of guarantee) & LC (letter of credit) the bank is liable to pay the amount to the favor if the customer doesnt pay it. The rate of interest charged on non-funded loans is called the Commission.

SECTORS FOR ADVANCES

There are three main sectors for which UBL is advancing loans. These sectors are: a) Industrial Sector b) Commercial Sector c) Agricultural Sector These loans are given specially to traders, businessmen, small industrial units, including cottage and small-scale industries, agriculturists. Thus UBL is ensuring an equitable distribution of credit among various sectors of the countrys economy. Different industry codes are used for different kind of industries.

a) Industrial Loans/Corporate Loans

These loans are given to industrial units including cottage and small-scale industries up to or less than Rs. 20 million. Loans amount shall not exceed amount specified by marginal restriction on the type of securities offered. Industrial loans are

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granted by analyzing the requirements of the industries. These loans are also called corporate loans. Loan period, loans are allowed for a maximum period of 5 years including a maximum grace period of one year. In special cases up to 10 years loan period can be extended, depending on the merit of the case.

b) Commercial Loans
Total principal amount of loans to a single borrower shall not exceed to Rs.0.3 million, including loans to dependent members of the family. Maximum maturity period is 3 years, also depending upon the nature and types of the loans, extended. Mark-up, will be charged as per existing rate, which is subject to change from time to time. Presently it is 0.51 paisas per day on per thousand/1000. Mode of paying back, the borrowed amount can repay back in the form of quarterly, equal monthly or semi-annually with interest, or as the case decided. Securities Against Commercial Loans Loan can be made against any or more of the following securities: Mortgage of immovable property (land and Building). Pledge of stocks, raw materials and finished goods. Hypothecation of stocks, raw materials and finished goods. State Bank of Pakistan Guarantee.

c) Agriculture Loan

The loan is advanced to those farmers who have cultivated land. Agricultural finance is of great importance in Pakistan. As 65% of the population of the country is engaged in the business of agriculture.

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Its is very unfortunate that this profession does not provide much to the farmers and cultivators to meet even their basic necessities of life. The uneconomic holding, primitive method of cultivation, natural calamities such as floods and drought, illiteracy of the cultivators and lack of infrastructure including organized ware-housing have adversely affected the repaying capacity of the agriculturists. Therefore financing of agriculture is much more complex as compared to commercial lending and industrial financing. UBL's agricultural loans on easy terms and conditions to small-scale land owning farmers boost the country's economy and yield greener harvests. UBL enables farmers to buy good quality seeds, fertilizers, pesticides and agricultural implements. UBL offers following Agricultural loans

1)Farm Loans
It includes production loans and development loans Production Finance: This finance is advanced to the agriculturists for inputs requirement of lands i.e. fertilizers, pesticides, seeds etc. It is also called short-term loan. The amount of advance with interest is repayable within one year in lump sum form. Loans can be advanced to the client on his credit worthiness, or average balance. Development Finance These loans are advance to the farmers for the purpose of development of the land or other development purpose belongs to the agriculture sector for example for tractors, thrashers, tube-wells. It can be long term, medium term or short-term loans . The repayments of the loans are schedules in periodic installments, which may be quarterly, half yearly or yearly. Mortgage of land is used as security for the development finance. Mark up is charged on daily basis, which is changeable. The present rate of mark up is 0.50 paisas per day on per thousand.

2) Non Farm Loans

It includes following loans Livestock Financing

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In livestock financing loans are given for Dairy Farming, Meat Farming, Fattening of Animals, Rearing of Animals, Construction of Sheds, Milk storage tanks, acquire and establish modern and efficient livestock facilities.

Loan Tenure 1 to 5 years Monthly / Quarterly repayment mode for Dairy Farmers Monthly / Quarterly / Half Yearly repayment mode for Meat Farmers Minimum Amount PKR 50,000 Maximum Amount as per requirement

Poultry Financing In Poultry financing loans are given for Poultry Farm structure and equipments, Hatchery farm structure and equipments, Feed Mills, Purchase of Chicks, Feed, Medicines, Storage tanks, Cold storage, Construction of shed, etc.

Loan Tenure 1 to 5 years Monthly / Quarterly repayment mode for all loans

Minimum Amount PKR 50,000 Maximum Amount as per requirement

Fisheries Financing In fisheries financing loans are given for Fish seed, Fish feed, Manuring, Construction of pond, Curing and Dying by fishermen, etc. Selection Criteria
Eligibility

Should be a Pakistani & holding CNIC Preferably an account holder of UBL Permanent resident of the area Should be Agri land owner Self cultivator

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Minimum 3 years experience in relevant field Not a defaulter of any bank Have repayment capacity Able to produce proper securities / Passbooks / sureties

Collateral Requirement

Bank charge on Agri Land through Zarie Passbook Mortgage of Rural / Urban property other than Agriculture Land Hypothecation of Farm equipments with backup collateral Join registration of Tractor / vehicle with backup collateral Growers loans against continuing Guarantee of Agriculture processing units Join registration of Tractor / vehicle with backup collateral Liquid Securities (Defence Saving Certificates, National Saving Certificate, etc.)

SPECIALIZED LOANS
UBL is expanding its loan product portfolio to serve public financing needs better. UBL currently offer an extensive range of specialized loans, including the following: UBL Credit Card UBL Businessline UBL Cashline UBL Address UBL Drive UBL PayPlus

UBL Credit Card:

Welcome to the world of UBL Credit Cards, the most exciting and vibrant credit card brand in Pakistan. UBL offer you a range of innovative and exciting Group # 1 39 MBA 2nd

cards that is not only powered by the security of chip but also enable you to personalize it any way you want.

UBL businessline:

INTRODUCTION: UBL Businessline a complete solution to all your Business Financing needs. With UBL Business Financing facility, you can now take your business to greater and newer heights, and achieve the level of success that you truly deserve. UBL Businessline is a running Finance facility that not only provides funds for growth but also enables you to capitalize on profitable opportunities. With UBL Businessline, now you will surely say: Ab Hui Kamiyaabi Meri Manzill.

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What is Businessline? It is a Credit Line/ OD Facility against Residential Property. It is an evergreen credit line that the customer can use for his/her business expansion FEATURES: Utilize up to Rs.10 million: Now, UBL Businessline credit line is here to solve all your cash flow problems. You can utilize up to Rs.10 million with the help of which you can now focus on your business expansion and growth. LTV as high as 70%: UBL Businessline offers you the facility of availing a financing of up to 70 % of your property value. Now that you can avail a higher amount against your assets, you can plan your growth and expansion exactly the way you want to. In addition financing is offered to customers that are already availing a similar facility from any other bank. Mark up on utilized amount only: With UBL Businessline, now you no more need to pay for the entire credit line that you own. Businessline gives you the facility to pay mark up only on the amount that you utilize. Faster Processing: After completion of your documentation requirements, UBL Businessline promises you a very smooth and fast processing, hence saving you time and frustration. Wide Accessibility: UBL Businesslines availability in major cities like Karachi, Lahore, Faisalabad, Islamabad & Rawalpindi, is complimented by UBL s countrywide branch network enabling our customer to access his account, and deposit or withdraw cash, no matter where he stands within the country. Competitive Rates: At UBL, you come first, which is exactly the reason why we offer our customer such competitive rates that would facilitate him in leveraging his skills to the maximum and in bringing about the success that he deserves. ELIGIBILITY CRITERION: If you fall in the following criteria, then UBL Businessline is just the right choice for you : Minimum monthly income: Rs. 25,000 Age: 25 65 Resident: Pakistani. Self Employed Professional / Self Employed Businessman.

UBL Cashline

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It is a flexible loan that provides you cash up to Rs.500,000 without any security requirements. It empowers you to take control of your finances. UBL Cashline is aimed to make your life easierZINADGEE ASAAN. Whether you are a salaried individual or a businessman, UBL Cashline takes care of your cash requirements. Cashline offers you: Flexibility

No fixed monthly installment. Principal repayment at your convenience. No prepayment penalty. Markup only on utilized amount. Worry free payment of bills, shopping, childs education, short-term business needs or just about any thing you can think of! Empowerment For the first time in Pakistan, you can now control your markup. Enjoy lower markup on higher utilization of funds. Markup calculated on daily outstanding balance. Continuous line of credit. Convenience Instant access to cash through the entire UBL network. You will be given a cheque book and an ATM/Debit Visa Card which you can use at 900,000 ATMs and 22 million outlets worldwide. Unsecured /clean lending, no collateral required. UBL Netbanking All UBL Cashline customers are automatically registered on UBL netbanking and can avail numerous netbanking features such as:

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Bill Payment Funds transfer Account update Statement of accounts How can you get Cashline? Cashline is offered in the following cities BAHAWALPUR FAISALABAD GUJRANWALA GUJRAT HYDERABAD ISLAMABAD JHELUM KARACHI LAHORE MULTAN LARKANA SUKKUR KHARIAN If you are: A salaried person of 21 to 60 years and your monthly net salary is Rs. 25,000 or more; or A self employed business person/professional of 21 to 65 years and your monthly net take home income is Rs. 100,000 or more. In case of any queries simOwning a house of your very own is a cherished dream. A lot of planning and hard work is involved in making this dream come true. That is why, at UBL we aim to make your decision easier, by offering you the right ingredients that can help you realize your dream with absolute convenience.

OKARA PESHAWAR QUETTA RAHIM YAR KHAN RAWALPINDI SAHIWAL SARGODHA SIALKOT WAZIRABAD WAH CANTT MIRPURKHAS NAWABSHAH

UBL Address

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It empowers you to become the proud owner of a home by offering a variety of product and pricing options that are flexible yet affordable. So choose the best product option and pricing to suit your needs. All product options are amortized and range over a tenor of 3 - 20 years. Buying a Home Why rent when you can buy? Buying a home of your choice has never been so easy. With a maximum financing limit of 80% you can easily buy a house or apartment that best fits your requirements. So go ahead and start the search for your dream home because with easy and affordable installments you need not think of renting a house when youve got UBL Address. Building a Home Have you ever settled for anything less than perfect? Theres nothing like building your perfect home, your way. With every detail in place like the elegant French windows or the perfectly manicured lush green lawn, just the way youve always imagined. By chalking out well planned fund tranches at each phase of the building process, UBL Address brings you your dream house one step closer. Land Plus Construction What do you do with an empty piece of land? Construct your dream house with all the aesthetic details youve ever wished for. UBL Address helps you through every stage of construction by providing you with well planned out fund tranches so that you can better manage your construction. Floating & Adjustable Rate Options Enjoy unparalleled freedom by choosing the most flexible and affordable rates. Be in control of your financial outflows by opting for a pricing plan thats most suitable for you: Floating Rate Kibor). Adjustable Rate Your mark-up rate will be fixed for a period of 3 years, and will be adjustable after the fixed rate period. However, after completion of 3 years, the rate will be floating and will be revised annually (upward or downward only to the extent of Kibor) Eligibility Criteria In this option, you get a fixed rate for a period of 12 months, which gets re-priced annually. (Upward or downward, only to the extent of

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Minimum monthly income: Rs.15,000 Age: 23 to 65 years Resident Pakistani Self-employed businessman/professional or salaried individual Minimum loan size: Rs. 500,000 Documentation Requirements Copy Of NIC Two recent Photographs each of primary as well as co-borrowers Signed Lou (Letter of Understanding), which states the applicable rate at the time of booking of loan. General Income Documents for Salaried and SEB/SEP are given below. However, your exact Documentation Requirement as per your specific Segment & Profession will be communicated to you by our respective ROs. Segments Docs Required Salaried Employment Certificate confirming last 12 months work experience Tax Document for the past 24 months Current Salary Slip Bank Statement for the last 12 months SEB/SEP Last 3 years Tax Assessment Order or Registered Partnership Deed Bank Statement for the last 12 months Salary Slip/Salary Certificate Income Estimation Report

Other Documents are required to substantiate the length of business Markup Rates Both Floating and Adjustable Rate Options are available. The Floating Rate Option is subject to annual revision from the time of loan booking. Any change in the mark up rate may be either upward or downward revision (if required) after every twelve (12) months from the date of the booking of the loan(upward or downward only to the extent of Kibor).

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Markup rates are calculated on the basis of the prevailing one year Karachi Inter-Bank Offered Rate (KIBOR: KIBOR is defined as the average rate ask side for one year tenure as published on Reuters Page KIBOR or as published by Financial Market Association of Pakistan in case Reuters Page in unavailable.) which is taken as the base rate. A margin that varies from one pricing option to another is charged over and above the base rate, the details of which are as follows: Segments Salaried SEB/SEP Pricing KIBOR + 3.5% = Applicable Markup Rate KIBOR + 4.5% = Applicable Markup Rate

The applicable markup rate will be the rate prevailing at the month of booking. This will be communicated to the applicant through the Repayment Schedule To know more about the applicable rates for various pricing options, please call UBL Phone Banking at 111-825-888. Penalty & Charges Type of Penalty & Charges Late Fees (per installment) Income Estimation Charges Appraisal Charges Legal Charges Life Insurance Property Ins Processing Charges Partial Payoff

Amount & penalty %age Rs.1000 Rs 3000 (Non refundable) Rs 3,500 (Non refundable) Rs 3,500 (Non refundable) Optional Complimentary Rs 5,000 (Non refundable) Max 6 monthly installments. Penalty charges apply on amount exceeding Rs 50, 000 or 6 monthly installments. 6% for Year 1 4% in Year 2 3% in Year 3 & onwards

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Repayments At UBL, you are at the core of all our endeavors. That is why, keeping your convenience in mind, we are now introducing new ways for you to make payments against your UBL Address loan. You can choose from a variety of convenient channels for making payments, all of which allow you to save time and cost. Drop Box Facility UBL Drop Box Facility at our branches offers a hassle free and secure cheque deposit system which gives you the opportunity to pay your UBL Address repayments on time, without standing in long queues. Make cross cheque payable to UBL Address Write your loan number and name at the back of the cheque Drop the envelope containing your cheque in the UBL drop box placed at a branch near you Please drop your cheque at least 3 days prior to your repayment due date in order to provide cushion for cheque clearing. Internet Banking UBL netbanking will give you the opportunity to conveniently pay your bills on time, through the internet. Repayments through netbanking are simple, fast and convenient. Simply log on to your netbanking account. In case, you still havent signed up for netbanking, please visit our website: www.ubl.com.pk/ebank to sign up. Click on GETTING STARTED and follow the instructions. Once logged in: Click on PAY BILLS & DONATIONS Click on ADD UBL BILLS In Bill Type select Address from the drop down box Enter your 8 digit loan number (e.g. 00000123) without the MTG prefix Once your UBL Address bill id has been added to the list you can make repayments every month Please note that from October 1, 2006 onwards, a fee of Rs.200 would be charged on all counter cash repayments of consumer loans at our branches.ply call our customer services center at 111-825-888.

UBL Drive

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It is a unique auto financing product which offers you features, options and flexibility unmatched by any other bank, because at UBL, You come first. New Car Financing UBL Drive allows you to drive away in your own car by making a down

payment of just 15% and to top that with low monthly installments. Financing the most affordable rates. Cash Your Car

Used Car

With UBL Drive you can buy your favorite used car (up to 5 years old) at

UBL Drive is not just a car loan; its a financing facility

that gives you Cash on your car, you can get up to 75% of your car value. Drive in with

your car and drive out with cash.

No Down Payment Before Approval

UBL Drive is the quick and hassle free route to the car of your choice. Offering you for the first time in Pakistan, No Down Payment and processing charges till your application is approved. After approval, you can take your Purchase Order to any of our authorized dealers, pay the Total Cash Outlay amount and simply drive away with your preferred car.

Simple and Convenient Process Just bring the car of your choice to an authorized dealer for evaluation of value and get your car financed at the spot. No third party appraisal and no additional hassle. Low Installment & Flexibility In our fixed plan, you are offered a variety of affordable rates and installment plans, suiting your

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needs. Plan

Car Replacement Drives Car Replacement Plan is the slogan name for a premier auto financing

product. Customers who intend to avail loan facility from UBL Drive under this variant can readily have their existing cars replaced after a year of financing. Product Features Free Tracking Device Option will be provided to the customers on affordable rates. this will be done in collaboration with the insurance companies on our panel. Free Life Insurance Coverage Includes accidental death coverage and medical reimbursement to the customers in case of any unforeseen circumstances. Zero Pre-Payment Penalty No penalty will be charged from the customer if the loan is been paid off after a year. Payment Holidays A unique concept whereby which payment breaks will be given to the customers on occasions such as Eid etc. Payment Holidays will be given once a year to the customers. Payment Flexibility Whereby which the customer will be provided the flexibility to change the loan tenor, opt for partial payment of the outstanding principal amount. Insurance Options UBL Drive offers you the following insurance options:

Comprehensive insurance Insurance financing for the first year

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Discounted rates with Trakker car security device installed at customers' cost

UBL PayPlus (loan against salary)

If you are a permanent employee of a company (Government, SemiGovernment, MNC or Local Corporate Entity/Private/Public Limited), which disburses salary through UBL, then UBL PayPlus (loan against salary) is the right product for you. Through UBL PayPlus, you can now easily avail a loan based on your salary level. How do you apply for UBL PayPlus (loan against salary)? All you have to do is to get your company enlisted with UBL for the facility. Once the basic requirement has been completed, you can fill out the application form available from all UBL branches , attach the requisite documents and apply for UBL PayPlus (loan against salary). It is as simple as that! Processing Fee A one-time processing fee of only Rs.500/- will apply. Salient Features Fixed Equal Monthly Installments.

Low Markup. Low Processing Fee. Service available at all UBL Branches. Minimum Documentation required

Eligibility Criteria Must be Permanent Employee of company

Maximum Loan Amount of up to 15 gross salaries or PKR 500,000.00 (which ever is less). Installment amount must not exceed 33% of Net Take Home Salary (NTHS). Loan amount not to exceed 90% of already accrued End Service Benefits (ESB). Repayment through 12, 24, 36, 48 or 60 monthly installments.

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Maximum age should be 55 years on the date of disbursement.

Terms & Condition Company to disburse employee salaries through UBL account only.

Irrevocable assignment of salary & end service benefits of employee required in favour of UBL. Monthly repayment of loan installment (principal + markup) shall be done by directly deducting salary account. Monthly installment will be in arrears. Processing fee, complete documentation charges & expenses to be deducted from loan account.

Required Documentation Duly Filled loan application form

Company undertaking CNIC copy Employee ID Copy Last 3 salary slips

REMMITANCES
UBL TAZRAFTAAR UBL offers the most efficient and free remittance service to beneficiaries in Pakistan. With our large network of branches, we are poised to offer you service almost at your door step. UBL remittance service, TezRaftaar offers all overseas Pakistanis the fastest and the most convenient delivery of their money to their beneficiaries in Pakistan. Best of all, Tezraftaar is completely cost free and is available at all UBL Overseas branch network in the Middle East, UK and US. This facility is also available at UBLs correspondents (Banks/ Money Transfer Cos) in Australia, Canada, Denmark, UK, USA, UAE, Saudi Arabia, Kuwait, Bahrain, Oman, Qatar, Malaysia and Euro

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TEZRAFTAAR (ACCOUNT TO ACCOUNT TRANSFER): Same day credit to UBL Account holders Fast, prompt and hassle free funds transfer Free of charge Complete reliability of transfer SMS alert for beneficiary

**Requirements: UBL branch code & complete (8 digits) account number

TEZRAFTAAR CHEQUE (HOME DELIVERY /OTHER BANK TRANSFER): Receivers Account in UBL is not necessary Doorstep delivery of TEZRAFTAAR cheque, that can be cashed instantly from any UBL branch up to Rs.100,000/- or can be deposited in the beneficiarys account Fastest delivery of TEZRAFTAAR cheque by courier to your bank for credit to your account in Pakistan On line tracking of transactions on our website SMS alert for beneficiary UBL TEZRAFTAAR CASH TezRaftaar Cash is a new hassle-free home remittance delivery service, primarily to facilitate Pakistanis living abroad in sending money to their loved ones in minutes in Pakistan.

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Money can now be INSTANTLY received through any branch of UBL in Pakistan. The remitter can send the money either from any overseas UBL branch or through authorized Correspondent Banks, Money Transfer Companies or Exchange Companies. The beneficiary, in turn, can obtain cash up to Rs.500,000/- over the counter. The service is fast, dependable and hassle-free and the beneficiary does not need to have an account at UBL. All that is required is a Remittance Reference Number and the beneficiarys original CNIC TEZRAFTAAR Cash Salient Features: UBL Receivers account in UBL is not required Instant cash over the counter payment of up to Rs. 500,000/- can be made to the beneficiary at any UBL online branch SMS alert for beneficiary

**Requirements: Remittance Reference Number and original CNIC provided by the receiver/ beneficiary. For valid mobile number of beneficiary

DEMAND DRAFT
Demand Draft is used to make the payment outside the city. Demand Drafts are issued only in the name of United Bank Limited. It is an instrument that is given to the party and party can take it anywhere, it can take the amount from the bank to which it is issued or the party can submit it in any branch for clearing. Whenever customer comes with the request to issue a DD he is given a remittances form on which he mentions the amount of DD and the name of Beneficiary and complete the others particulars also. Then the officers issue the DD printed through computer.

PAYMENT OF DEMAND DRAFT

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On the contrary, when a DD is received I-e a customer comes to a bank with the DD the procedure is as follows. The DD credit advice is received through mail. The Nos are checked and signatures are verified. An entry is made on the DD payable register, and the voucher is made. The DD credit is attached with the vouchers and given for the posting at the computer. When DD is received the test Nos checked, send the payment is made.

MAIL TRANSFER
A Mil Transfer is made of remittance that is used for transfer of money in case the responding branch is of the same bank, which is issuing the Mail Transfer. Simply to say, all inter-branch transfer is done through Mts. A Mail Transfer does not need an advice to be sent because the amount of Mail Transfer ID directly credited to the account of the payee. Do it is an easy men to transfer the amount from one account to the other account with in the same but different branches.

PAYMENTS
When Mail Transfer arrives, the test numbers are checked and the signatures are verified. The entry is done in the Mail Transfer payable register. If there is no account then the Mail Transfer receipts needs revenue stamps and then the payment is made. The Mail Transfer receipt is strictly non-negotiable.

TELEGRAPH TRANSFER
It is a faster mode of sending payments through telephone. Telegraphic transfer application should be processed immediately after completing the necessary formalities the message is transmitted to the drawee branches to avoid the fraud a test is

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also applied and particulars are confirmed. The male confirmation dispatches to the drawee branches on the same day. The test no must be thoroughly checked so that payment is not delayed due to incorrect test

PROCEDURE
After a request has been granted permission the applicant is asked to deposit the amount and the charges of the transmission. The manager on the basis of the amount desired for sending makes a TT message that is given information about the payee. The amount is written and is made conditioned with help of codes that are allotted to the manager.

PAYMENT
On receipt of the message the officer of the responding branch will put his codes to confirm the message. The amount is credited to the account of the payee.

PAY ORDER
It is cheque drawn by a bank on itself. Pay order is instrument in which three parties are involved, the purchaser, the bank and the receiver. Any customer can purchase it. It is usually made by Govt. Bodies. A single Bank is involved in this case.

OTHER SERVICES 1. UBL Priority Banking:

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Concept: Signature, UBLs Priority Banking service, is born out of the desire of customers today for a comfortable and personalized environment to discuss an array of financial services, whether of a business or personal nature. It suits clients who come from varied backgrounds and have different lifestyles and career aspirations. What unites them is a common desire for success and efficient management of their finances and personal wealth. UBL has recognized this gap and decided to offer a unique form of preferred banking. Launched as an independent brand, Signature offers focused and personalized wealth management services for selected, high net-worth individuals in a completely secure and congenial atmosphere. Ambiance All Signature Lounges present a richly modern ambiance, wrapped in UBL's warm and hospitable culture as well as its progressive global outlook.

Every Signature lounge is securely housed in an independent section of an existing UBL branch and has a separate entrance. The facade, branding and colors heighten this distinction and add elegance to the lounge. The lounge is available exclusively to Signature Customers. With internet access, a selection of general interest and financial publications and complete audio and video entertainment, these lounges are designed to provide relaxation to our customers, even while they wait to meet their dedicated Relationship Manager. Refreshments, hot and cold, are at hand for them to savor as they experience UBL Signature Priority Banking. Private meeting rooms equipped with standard business facilities such as phone, fax, internet service and photocopier are available to facilitate and expedite any work requirement. Convenience

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At UBL we are taking convenience and dedicated personalized service to a new level for our Signature Customers.

Every Signature Customer will not only have access to UBL banking products through their dedicated Relationship Managers, but will be able to avail expertise and services of UBL Insurers, UBL Ameen and UBL Fund Managers, resulting in a comprehensive package of financial services in the very same location. Topping their financial and banking expertise, our Relationship Managers will also be wellversed with services like traveling, eating-out, auto rentals and a lot of other entertainment know-how that will compliment and enhance their customers lifestyle. Signature Priority Banking Lounges For the convenience of Signature Priority Customers, presently the following branches provide Signature lounge facility in three major metros viz:

Karachi Clifton Branch & Khayaban-e-Ittehad Branch Lahore - Liberty Market Branch Islamabad F-7/2 Markaz Branch

2.UBL Better Life Bancassurance:

We are pleased to announce the launch of UBL Better Life Plans under the umbrella of Bancassurance, in partnership with EFU LIFE Assurance Company in selected 100 Branches. What is Bancassurance?

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Bancassurance is the selling of insurance and banking products through the same channel, most commonly through bank branches. Product Offering: UBL BetterLife plans are advanced insurance products specifically designed to benefit the customers, providing the better and secured future to your family and loved ones. Initially, we plan to offer the following product types:

Description Accumulation of target funds for education of UBL BetterLife Child your children and ensuring that goal is achieved Education Plan even if the parent dies earlier. Endowment funds for your children in an UBL BetterLife Marriage Plan organized and disciplined manner for use in later life. Flexible open ended savings product with life UBL BetterLife Savings Plan insurance protection to your family and loved ones. UBL BetterLife Retirement Plan Accumulating retirement funds for your regular retirement income

Plan Name

The above plans can be customized further to meet your needs by attaching the following riders with the basic plan: Additional term assurance This rider increases the level of life cover by providing an additional amount in the range of 50% to 300% of the sum assured / insurance cover of the main plan. Life-care benefits

On the diagnosis of a critical illness, this rider provides an additional amount equal to the basic sum assured / insurance cover. The basic policy continues after this payment.

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Waiver of premium rider

In case the life assured is unable to continue his/her occupation due to sickness or accident, the contribution to the plan will be made by EFU Life. Family income benefit rider

In case of death of the individual during the term of this rider, a monthly income of 1% or 2% of the basic sum assured / insurance cover is paid for the remaining term to his family. How does the plan work? Contributions to the plan are invested in an internal investment fund of EFU Life called the EFU Managed Growth Fund and utilized to buy units of the fund from the market. The objective is to maximize capital growth by investing in a balanced portfolio spread across a wide range of shares, government and other fixed interest securities and cash. The Fund is managed by investment experts who adjust the mix of the underlying investments in light of economic conditions and investment opportunities.

3. UBL Wiz:

UBL Wiz is Pakistans first ever Prepaid VISA Debit Card that provides the convenience, security and benefits of an ATM and Debit Card, locally and internationally. More than just an ATM card, you can use your UBL Wiz everywhere VISA cards are accepted. Whether you are using it online, paying for petrol, shopping or

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MBA 2nd

dining, you are accessing money directly from your prepaid card, without having to visit the bank. Features and Benefits: UBL Wiz is the 1st Prepaid VISA Debit Card in Pakistan . It is instantly available at selected UBL branches with the facility of re-load, allow you to spend online and at shopping outlets and withdraw cash at ATMs. It is also accepted at all VISA locations internationally. Available to all CNIC holders All valid CNIC holders in Pakistan can own a UBL Wiz Prepaid VISA Debit Card. An individual can purchase up to three cards at a time on his/her CNIC - one of each category, i.e. a person can have a single UBL Wiz Ladies, UBL Wiz Teen and UBL Wiz Travelers card at any given point in time.

4. UBL E-STATEMENT
Are you fed up of filing your Statement of Accounts? Do you want fast delivery of your Account Statements? Do you want to be in constant touch with your account?UBL brings a simple solution to all your problems by introducing the UBL estatements facility. UBL is pleased to announce the launch of the UBL e-statement facility which makes it easier for you to get your statement of accounts and automated transactional debit/ credit alerts right into your inbox. Available for all Rupee and Foreign Currency Account holders, you now do not have to wait for six months to receive a paper based statement of your account any more. Absolutely free of cost: You dont need to pay any additional cost in order to get benefit from this facility. UBL believes in providing value-added service to customers and all you need to get started is your email address!

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MBA 2nd

Accessible when you need it: UBL e-statement provides you a highly convenient facility to receive your statement anytime and anywhere in the world! Security: As an alternative to printed statements, UBL e-statements eradicate the hassle of paperwork, box filling and the chance of having your unattended documentation read by others.! Receive bill statements according to your needs: Your UBL e-statement can be delivered to you in the following frequencies Daily Weekly Monthly Quarterly Semi annually

Automated transactional debit/ credit alerts: whenever there is an activity in your account, an email shall be sent to you with the complete transaction details. Easy to read format: You UBL e-statement shall be sent to you in an easy to read Adobe Acrobat format. To subscribe to the e-statement facility: Please visit your branch and fill out a simple form. You can also download the UBL e-statement Activation Form and mail / send it to your branch after completing the same. If you are not able to visit your branch, you can also email the scanned copy of the signed activation form at estatements@ubl.com.pk for further processing. Once you subscribe for the facility, you will receive your statements as per your selected frequency.

5. Hamrah

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UBL is now offering Denominations Up To Rs. 10,000 Only. UBL has always been at the forefront in identifying and meeting the financial needs of its valued customers. UBL was the pioneer in introducing Rupee Travellers Cheque facility in Pakistan , as early as 1971. In continuation of the same tradition, UBL in the shape of "Hamrah" Rupee Travellers Cheque enhances this facility for the convenience of its valued customers by offering denominations up to Rs. 10,000. UBL "Hamrah" has been designed keeping in mind, both convenience and security - be it business, property, trade or personal needs. "Hamrah" Rupee Traveller Cheques are the ideal and safest way of carrying cash when traveling anywhere in Pakistan . Hamrah RTC's are now accepted at more than 2000 places such as hotels, shops, real estate agents, jewelers, car dealers, etc and of course at all our UBL branches. UBL has a 24-Hours customer help-line, providing its customers with round the clock tele-verification of "HAMRAH" travelers cheques

Salient Features

Absolutely FREE - No Bank Commission, No Excise Duty:

Whatever the value of "Hamrah" purchased, no Bank Commision or Excise Duty will be charged

Denominations: Available to all: Easily transferable and encashable:

Available in denominations of Rs. 10,000 and Rs. 5,000

Holding an account with UBL not mandatory for availing this facility

Just dial "Hamrah" Hotline UAN for assistance 111-111-825 or contact nearest designated UBL Branch

Special facility of refund:

Indicate choice of designated UBL Branch for refund which will be within days only. Mostconvenient while in transit anywhere in Pakistan

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Valid until encashed:

Use them for a week, month or even years depending on when there's a need for encashment

Exclusive security:

Secured with specially "Coded" printing and "RAIN BOW Effect" for added security.

6. UBL WALLET

UBL introducing the new UBL Wallet Card, now with the International power of UBL Wallet, now with the power and international acceptance of VISA! Your Wallet VISA ATM & Debit Card has all the convenience and security you desire and the quality you deserve. This Wallet holds all the cash in your bank account.

Available to All UBL Account Holders UBL offers ATM and Debit Card facility to all account holders at all

UBL branches anywhere in Pakistan , regardless of whether their branch is online or offline.

Nine Supplementary Cards UBL Wallet VISA also gives you the facility of having up to 9

supplementary cards issued against one primary card. All supplementary cardholders will be able to conduct ATM/Debit transactions within the limits of the primary card account.

24 x 7 Contact Center

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UBL's dedicated staff is at your service 24 hours a day, 7 days a week. You can call our contact center at 111-825-888 (UAN), or you can simply pick up the telephone placed next to all UBL ATMs and be instantly connected to our customer service representative via a hotline facility.

UBL Wallet Your ATM Card UBL already has its own network of 409 ATMs in 86 cities, which

continues to expand by the day. Moreover, UBL Wallet is now part of the 1 Link and VISA networks. These allow you to use your UBL Wallet VISA across Pakistan at more than 925 ATMs displaying the 1 Link logo and at more than 1 Million ATMs in 150 countries. It is also acceptable on the MNET network of ATMs in Pakistan.Your Wallet VISA Card will also be acceptable on all local VISA certified machines displaying the VISA Plus sign.

UBL Wallet Your Debit Card With UBL Wallet VISA as your debit card, you can shop all you want, eat

all you can or fill up your car tank without carrying any cash. Simply use your UBL Wallet VISA for direct debit from your bank account, along with the convenience of using signature based verification instead of a PIN (Personal Identification Number). The debit card facility is being offered in association with the Orix and VISA networks, which means that you can use your UBL Wallet VISA to conduct a debit transaction at any outlet in Pakistan that displays the ORIX or VISA logos. The Orix network offers connectivity at more than 5,000 outlets across the country, whereas your UBL Wallet VISA card is also acceptable at 22 million VISA merchant locations, local and international.

Funds Transfer: 1. Into any of your UBL account.

2. Into any other UBL account. 3. Into any other participating 1 Link bank (through the new UBL Inter Bank Funds Transfer facility)

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MBA 2nd

On confirmation, the amount from the cardholder account is instantly transferred to the beneficiary account.

UBL ATMs Accept All VISA Cards In addition to the launch of the Internationally VISA powered UBL Wallet

card, we are also proud to announce that our 200 plus UBL ATMs are now VISA certified and are geared up to accept all International VISA Debit and Credit cards. So great news for UBL Credit card holders - they can make cash advances through our UBL ATMs as well.

Other Facilities

Virtual Assistant: UBL ATMs feature a Virtual Human Assistant, who guides you in conducting your ATM transactions Balance Enquiry: Enquire about the availability of funds or simply get a printout of your account balance. Mini Statement: Get a printed statement of your account that shows all recent transactions. Fast Cash: Swiftly withdraw your desired amount by selecting from one of the options of listed denominations.

7. United Bank & the Spirit of Good Corporate Citizenship:

As a bank that has always upheld the spirit of giving to its stakeholders, its customers & its society, UBL is now taking a step further and asking its valued customers to join hands with it & help strengthen its role as a corporate citizen.

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MBA 2nd

The corporate social responsibility that UBL has can only be wholeheartedly served when its valued customers come together with the bank in its contribution towards the betterment of society. The listed below charity organizations have Donations/Zakat accounts with United Bank. You can easily send your donations through UBL Net banking.

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MBA 2nd

Financial Analysis

Financial Analysis

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67

MBA 2nd

Financial analysis means that the analysis of the financial statements i.e Analysis of income statement, balance sheet etc. in financial analysis various ratios and graphs are shown. Which depict the past performance of last 4 or 5 years? The question may arise that what is the benefit of financial analysis? The answer is quite simple that many parties are interested in financial analysis like the investors before making investment in the company see the financial trends of business, because they will invest in those firms which will give them low risk and high return. Moreover the financial institutions before sanctioning loans also evaluate the solvency of the applicant through financial analysis. There are two main tools of financial analysis. Vertical Analysis Vertical as name shows it is y axis analysis of financial statements. It is a useful way of analyzing statements and to convert them into common size statement by expressing absolute rupee amounts into percentages of a base figure. The income statement thus exhibits expense as a percentage of sales, and each asset/liability as a percentage of total assets and total liabilities. Statements so prepared are called common size statements the analysis facilitates the comparison with prior period and also highlights the relative importance of each item the analysis can be equally useful for inter firm comparison. Horizontal Analysis Horizontal as the name shows it is the x axis analysis. The computation of percentage and changes in the same item over time is referred to as a trend analysis this spotlights trends and establishes relationships between items that appear on the same row of a comparative statement thereby disclosing changes on items in financial statements.

UBL Balance sheet

Group # 1 68 MBA 2nd

Assets Cash and balances with treasury banks Balances with other banks lending to financial institutions Investment Advances Performing Non-performing-net of provision Operating fixed assets Defferd tax asset-net Other assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans-unsecured Liabilities against assets subject to finance lease other liabilities Total liabilities Net assets Represented by: Share capital Reserves Unappropriated profit Total equity attributable to the equity holders of the bank Minority interest

$ $ $ $

2009 2008 Rupees in 000 61,252,772.00 $ 50,143,570.00 14,049,990.00 $ 14,540,306.00 23,162,130.00 $ 22,805,341.00 137,734,578.00 $ 115,057,090.00 $ 367,960,027.00 $ 9,985,339.00 $ 377,945,366.00 $ 19,926,915.00 $ 19,926,915.00 $ 18,124,653.00 $ 620,707,389.00 $ 5,210,870.00 $ 44,749,690.00 $ 492,267,898.00 $ 11,993,848.00 $ 1,978.00 $ 17,087,441.00 $ 571,311,725.00 $ 49,395,664.00 $ 10,117,188.00 $ 17,256,061.00 $ 17,703,327.00 $ 45,076,576.00 $ 2,044,589.00 $ 47,121,165.00 $ 2,274,499.00 $ 49,395,664.00

$ 349,715,209.00 $ 12,364,387.00 $ 362,079,596.00 $ 23,734,082.00 $ 23,734,082.00 $ 17,786,567.00 $ 640,449,529.00 $ 5,166,361.00 $ 37,168,277.00 $ 503,831,672.00 $ 11,989,800.00 $ 611.00 $ 14,974,445.00 $ 573,134,166.00 $ 67,318,363.00 $ $ $ $ $ $ $ $ 11,128,907.00 21,167,954.00 23,617,875.00 55,914,736.00 2,279,691.00 58,194,427.00 9,123,936.00 67,318,363.00

Surplus on revaluation of assets-net of deffered tax Contingencies and Commitments

Vertical Analysis Balance Sheet

2006 Assets Cash and balances with treasury banks Balances with other banks lending to financial institutions % 11.56 3.31 6.98 2007 % 10.84 0.799 4.67 2008 % 8.08 2.34 3.67 2009 % 9.56 2.19 3.61

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69

MBA 2nd

Investment Advances Operating fixed assets Defferd tax asset-net Other assets Liabilities Bills payable Borrowings Deposits and Other accounts Sub-ordinated loans-unsecured Liabilities against assets subject to finance lease Other liabilities Represented by: Share capital Reserves Unappropriated profit Minority interest Surplus on revaluation of assets-net of deffered tax

15.98 67.89 1.23 2.36 10.21

21.79 45.1 3.19 2.24 0

18.54 60.89 3.21 0.35 2.92

21.5 56.54 3.7 0.1 2.78

1.07 9.09 79.16 1.14

1.14 11.14 75.74 0.11

0.84 7.21 79.31 1.93

0.81 5.8 78.67 1.87

0 2.19

0 2.41

0.0003 2.75

0.00009 2.34

1.52 1.96 2.93

1.56 1.93 2.95

1.63 3.31 3.39 0.36

1.74 2.78 2.85 0.33

0.62

1.58

1.42

0.37

Comments:
The cash is the major asset of the bank. The cash ratio of the bank is continuously increasing for the last 4 years. If, we see the investments of bank, it increases in 2007 as compared to 2006, but then decrease in 2008 and 2009.

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MBA 2nd

The operating fixed assets are continuously increasing from 2006 to 2009. Then in liabilities and owners equity, the bills payable are continuously decreasing except the little increase in 2007.

The share capital of UBL Pakistan is continuously increasing from 2006 to 2009.

Horizontal Analysis Balance sheet

2006 2007 2008 2009

%
Assets

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MBA 2nd

Cash and balances with treasury banks Balances with other banks Lending to financial institutions Investment Advances Operating fixed assets Defferd tax asset-net Other assets Total Assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans-unsecured Other liabilities Total liabilities Represented by: Share capital Reserves Unappropriated profit Surplus on revaluation of assets-net of deffered tax

100 100 100 100 100 100 100 100 100

117 101 84 186 83 323

102 104 77 171 132 381 239

125 100 78 205 126 453 72 18 151

12 125

18 147

100 100 100 100 100 100

133 154 120 100 72 81

114 116 147 200 133 117

113 97 150 200 117 117

100 100 100

125 124 134

156 208 142

172 255 190

100

316

86

346

Comments
Assets The cash balance of bank is continuously increasing in every year except the slight decrease in 2008 as compared to 2006. Investments of UBL are also increasing with a little decrease in 2008 as compared to 2006.

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MBA 2nd

The total assets are also speedily increasing in each year from the 2006 onward.

Liabilities: In liabilities section, if we see the bills payable, they are continuously decreasing from 2006 to 2009. Borrowings of UBL are decreasing very quickly in each year,which is the good sign for bank. The total liabilities of bank are constant in year 2008,2009 with a decrease in 2007 as compared to 2006. Capital The share capital of UBL Pakistan is continuously increasing from 2006 to 2009, which is good sign for bank.

UBL Profit &Loss Account

2009 2008 Rupees in 000 $ 61,495,472 $ 52,763,249 $ 28,323,272 $ 24,247,281 $ 33,172,200 $ 28,515,968

Mark up/return/interest earned Mark up/return/interest expensed Net mark up/ interest income

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MBA 2nd

Provisions against loans and advances Provisions against lendings to financial institutions Provisions for diminution in value of investments Bad debts written off directly

$ 9,644,927 $ 560,852 $ 1,187,460 $ 1,485,976 $ 12,879,215 $ 20,292,985 $ 6,736,356 $ 214,727 $ 1,275,914 $ 699,275 $ (2,582) $ 3,396,800 $ 12,320,490 $ 32,613,475 $ 17,803,338 $ 642,274 $ 401,073 $ 64,552 $ 18,911,237 $ 689,943 $ 14,392,181

$ 4,514,548

$ 1,871,587 $ 1,367,553 $ 7,753,688 $ 20,762,280 $ 742,892 $ 191,376 $ 1,656,939 $ 201,176 $ (10,682) $ 1,917,451 $ 11,199,152 $ 31,961,432 $ 16,679,968 $ 468,042 $ 340,548 $ 292,377 $ 17,780,935 $ (128,446) $ 14,052,051

Net mark up/return/interest income after provisions Non Mark up/ interest income Fee, commission, and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Unrealized loss on revaluation of investment classified as held for trading Other income Total non mark up/return/interest income Non Mark up/interest Expenses Administrative expenses Other provisions/write offs-net Workers' welfare fund Other charges Total non mark up /interest expenses Share of income/loss of associates Profit before taxation

Taxation Current Prior year Deferred Profit after taxation Attribute to Equity shareholders of the bank Minority interest

$ 6,996,257 $ 78,710 $ (2,170,738) $ 4,904,229 $ 9,487,952 $ 9,521,546 $ (33,594) $ 9,487,952

$ 6,151,520 $ 435,072 $ (979,792) $ 5,606,800 $ 8,445,251 $ 8,355,757 $ 89,494 $ 8,445,251

Group # 1

74

MBA 2nd

Vertical Analysis Profit & Loss Account

2009 Mark up/return/interest earned Mark up/return/interest expensed Net mark up/ interest income Provisions against loans and advances Provisions against lendings to financial institutions Provisions for diminution in value of investments Bad debts written off directly Net mark up/return/interest income after provisions Non Mark up/ interest income 100 46.06 53.94 15.68 0.91 1.93 2.42 33 3.55 2.59 39.35 0.01 0.22 43 0.22 0.81 56.2 2008 100 45.95 54.05 8.56 2007 100 41.26 58.7 4.11 2006 100 36.75 63.24 5.98 Amounts in Percentages

Group # 1

75

MBA 2nd

Fee, commission, and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Unrealized loss on revaluation of investment classified as held for trading Other income Total non mark up/return/interest income Non Mark up/interest Expenses Administrative expenses Other provisions/write offs-net Workers' welfare fund Other charges Total non mark up /interest expenses Share of income/loss of associates Profit before taxation Taxation Profit after taxation

10.95 0.35 2.07 1.14

13.75 0.36 3.14 0.38

12 1.33 2.01

13.4 2.5 1.99

-0.004 5.52 20.03 53.03 28.95 1.04 0.65 1.05 30.75 -1.12 23.4 7.97 15.43

-0.02 3.63 21.23 60.57 31.61 0.89 0.65 0.55 33.7 -0.24 26.63 10.63 16 31.6 11.2 20.4 43.3 14.6 28.6 0.04 33.3 0.07 33.9 3.94 21.9 65 32.6 5.75 2.23 21.06 77.28 33.19 0.68

Comments
The bank mark up expenses were 36.05% in 2006,which increases to 46.06% in 2009 out of 100% interest earned. Total non mark up income % continuously increases in each year with a slight decrease in 2009. The total profit after taxation is continuously decreasing from 2006 to 2009 due to economic recession.

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76

MBA 2nd

The profit after taxation is also decreasing in each year, because profit before taxation is decreasing.

UBL Horizontal analysis of profit and loss account

2009 Mark up/return/interest earned Mark up/return/interest expensed Net mark up/ interest income Provisions against loans and advances Provisions for diminution in value of investments Bad debts written off directly 182.87 231.01 155.24 508.83 1587.73 551.69 2008 156.9 197.77 133.46 238.17 2502 507.73 2007 124.79 140 116.06 289.04 8.33 347 2006 100 100 100 100 100 100

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77

MBA 2nd

Net mark up/return/interest income after provisions Non Mark up/ interest income Fee, commission, and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Unrealized loss on revaluation of investment classified as held for trading Other income Total non mark up/return/interest income Non Mark up/interest Expenses Administrative expenses Other provisions/write offs-net Other charges Total non mark up /interest expenses Profit before taxation Taxation Profit after taxation

106.09

108.55

96.07

100

140.35 30.96 177.13 247.47

150.91 27.6 230.02 71.2

122.92 52.54 124.08 301

100 100 100 100

(77.42 428.16 169.1 123.47 124.87 283.8 248.47 159 99.26 101.48 102.72

(320.3 241.69 153.71 121 143.32 206.81 125.39 149.54 96.91 116.01 87.36

(472.41 203.46 131.87 105.95 122.507 104.4 67.09 122.04 95.14 94.34 95.55

100 100 100 100 100 100 100 100 100 100 100

Comments
The net mark up interest income of bank is increasing continuously from 2007 to 2009 by comparing it to 2006 net mark up interest income. The non mark up income of UBL Pakistan is increasing from 2007 to 2009 by taking the 2006 non mark up income as base, because bank income level is continuously increasing. Profit before taxation is rapidly increasing from year to year as compared to 2006, because bank over all income level increases.

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78

MBA 2nd

Profit after taxation automatically increases, when the profit before taxation increases as compared to 2006 base.

UBL Cash Flows Statement

2009 2008 (Rupees in '000) CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation Less: Dividend income Less: Loss of associates $14392181 (214727) (689943) 13,487511
79

$14052051 (191376) 128446 13989121

MBA 2nd

Group # 1

Adjustments Depreciation Amortization Worker welfare fund Provision for retirement benefits Provision against loans and advances Provision against lending to financial institutions Reversal of provision for diminution in value of investments Provision in respect of investment disposed off during year Provision against off- balance sheet items Gain on sale of fixed assets Bad debts written-off directly Unrealized loss on revaluation of investments classified as held for trading

1539028 185985 401073 605672 9644927 560852 1187460 (1208711) 20250 (31829) 1485976

1291079 156997 340548 59009 4514548

1871589

42966 (14298) 1367553

2582

10682

Finance charges on leased assets Reversal of provision against other assets

110 622024 15015399 28502910

283 196026 9836982 23826103

Decrease / (increase) in operating assets Lendings to financial institutions Held-for-trading securities Advances Other assets (excluding advance taxation)

(917641) 526935 4734867 2395082 6739244

1976382 (4383394) (75904785) (5620707) (83932504)

(Decrease) / increase in operating liabilities

Group # 1 80 MBA 2nd

Bills payable Borrowings Deposits and other accounts Other liabilities (excluding current taxation)

(44509) (7581413) 11563774 (1902164) 2035687 37277842 (783198) (9719771) 26774872

(876396) (14741563) 80792770 3 ,439069 68613880 8507479 (2 31466) (7250980) 1025033

Staff retirement benefits paid Income taxes paid Net cash flow from operating activities CASH FLOW FROM INVESTING ACTIVITIES Net investment in securities Dividend income received Investment in operating fixed assets Sale proceeds from disposal of property and equipment Net cash flow on investing activities CASH FLOW FROM FINANCING ACTIVITIES Receipt of sub-ordinated loan Repayments of principal of sub-ordinated loans Payments in respect of lease obligations Dividends paid Net cash flow from / (used in) financing activities Exchang adjustment on transalation of net assets attributed to minority shareholder Exchange differences on translation of net investment in foreign branches Increase in cash and cash equivalents

(16446722) 457237 (1595660) 174458 (17410687)

(8264808) 188251 (3185598) 138396 (11123759)

6000000 (4048) (1367) (1094748) (1100163) 351725 2003138 10618885 (2848) (1566) (3945703) (2049883) (160545) 4288728 (3920660)

Group # 1

81

MBA 2nd

Cash and cash equivalents at beginning of the year as previously reported Cash and cash equivalents at end of the year 64683876 75302762 6 8604536 6 4683876

UBL Statement of Owners Equity

Capital reserves Exchange translatio n reserve
2857933

Share capital Balance as at December 31, 2007 Final cash dividend for the year ended December 31, 2007 declared subsequent to year end at Rs.3.00 per share Changes in equity for 2008 Interim cash dividend for the half year ended june 30,2008 declared at Rs. 1.5 per share Transfer to reserves for issue of bonus shares
8093750

Statutory reserve
8716409

Reserve for issue of bonus shares

-

Cash flow hedge reserve

-

Unappro priated profit

16728318

Total
38515054

(2428125)

(2428125)

(1517578)

(1517578)

2023438

(2023438)

Issue of Bonus shares Profit after taxation for the year ended December 31, 2008 Transfer from surplus on revaluation of fixed assets to unappropriated profit - net of tax

2023438

(2023438)

8355757

8445251

255017

255017

Group # 1

82

MBA 2nd

Other comprehensive income net of tax Preferred dividend relating to minority shareholders Transfer to statutory reserve Balance as at December 31, 2008 Final cash dividend for the year ended December 31, 2008 declared subsequent to year end at Rs.1.00 per share Changes in equity for 2009 Transfer of reserves for issue of bonus shares

4288728

(276633)

3906770

10117188

1666624 10383033

7146661

(276633)

(1666624) 17703327

55224 47121165

(1011719)

(1011719)

1011719

(1011719)

(1011719)

Issue of bonus shares Profit after taxation for the year ended Dec 31,2009 Transfer from surplus on revaluation of fixed assets to unappropriated profit Other comprehensive income Ordinary dividend related to minority share holders Preferred dividend relating to minority Stock Transfer to Statuary reserve Balance as at December 31, 2009

1011719

(1011719)

9521654

9487952

1838537 2003138 -

70218 -

254977

254977 2425081 (27510) (55519)

(1838537) 9149799 (206415) 23617875 58194427

11128907

12221570

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Ratios Analysis:
Ratio analysis involves methods of calculating and interpreting financial ratios to analyze and monitor the firms performance. Financial ratios can be classified into five groups: 1. liquidity ratios 2. Activity ratios 3. Leverage ratios 4. Profitability ratios 5. Market value ratios

1. Liquidity ratios:
The liquidity of a firm is measured by its ability to satisfy its short term obligations as they come due. Liquidity refers to the solvency of the firms over all financial position the ease with which it can pay its bills. a) Net Working Capital: The formula for Net Working Capital is: Net Working Capital = Current Assets Current Liabilities It is a safety cushion to creditors. A large balance is required when the entity has difficulty on short notice. b) Current ratio: Group # 1 84 MBA 2nd

This ratio, which is subject to seasonal fluctuations, is used to measure the ability of a firm to meet its current liabilities out of current assets. Generally, the higher the current ratio, the more liquid the firm is considered to be. The formula for Current Ratio is: Current Ratio = Current Assets /Current Liabilities

2. Activity Ratios :
Activity Ratios are used to determine how quickly various accounts are converted into sales or cash. a) Account Receivable Turnover:

This ratio gives the number of times account receivable is collected during the year. In general, the higher the account receivable turnover the better since the company is collecting quickly from customers and these funds can then be invested. The formula for Accounts Receivable Turnover is: Accounts Receivable Turnover = Net credit sale / Average account receivable b) Inventory Ratio: If a company is holding a access inventory it means that funds which could be invested else where are being tied up in inventory. In addition, there will be high carrying cost for storing the goods, as well as the risk of obsolescence on the other hand, if inventory is too low the company may loose customers because it has run out of merchandise. The formula for inventory turnover is: Inventory turnover = Cost of goods sold / Average Inventory c) Total Asset turnover:

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It is helpful in evaluating a companys ability to use its asset base efficiently to generate revenue. The formula for total asset turnover is: Total Asset turnover = Sales / Total Assets = $61495472 / $640449529 = 0.096 Note: As Banking is a servicing business so it Mark-Up/return/interest earned is treated as Sales.

3. Leverage Ratios:
a) Debt ratios: It can be defined as how much sufficient our assets are in retrieving the total debts. It indicates the firms long run debt paying ability. The formula for debt ratio is Debt ratio=Total liabilities/total assets = ($573131166 / $640449529)*100 = 89.49%

4. Profitability Ratios:
An indication of good financial health and how effectively the firm is being managed is the companys ability to earn a satisfactory profit and return on investment. a) Gross profit margin: The gross profit margin measures the percentage of each sales rupee remaining after the firm has paid for its goods. The higher the gross profit margin, the better position of company would be. The formula for gross Profit Margin is: Gross Profit Margin = Gross Profit / Sales

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= ($33172200 / $61495472)*100 = 53.94% d) Profit Margin: The Profit Margin measures the percentage of each sale dollar remaining after all cost and expenses including interest, taxes and preferred stock dividend have been deducted. It also provides information about companys pricing, cost structure and production efficiency. The formula for Profit Margin is: Net Profit Margin = Net Profit / Sales = ($9487952 / $61495472)*100 =15.43% e) Return on Assets: The return on total assets (ROA) indicates the efficiency with which management has used its available resources to generate income. It is also called Return on Investment. If ROA ratio decreases over the year, it indicates inefficient use of assets. The formula for ROA is: ROA = Net Income / Average Total Assets = ($9487952 / $640449529)*100 = 1.48% b) Return on Equity: ROE measures the return on common stockholders investment in the firm. Generally, the higher this return, the better off is the owners. The formula for ROE is: ROE = Earnings available for common stockholders / common stock equity = ($9487952 / $55914736)*100 Group # 1 87 MBA 2nd

= 16.97%

6. Market Value Ratios:

Market ratios relate to the firms market value as measured by its current share price, to certain accounting values. a) Earning Per Share: It indicates how much amount bank is earning on its one share. Earning per share is useful indicator of the operating performance of the company as well as of the dividends that may be expected. The formula for EPS is: EPS = (Net income Preferred Dividends) / Common stock outstanding b) Price/Earning Ratio: It measures the amount that investors are willing to pay for each dollar of a firms earning; the higher the price earning ratio, the greater the investors confidence. The formula for Price Earning Ratio is: Price Earning Ratio = Market Price per share / Earning per share

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Ratios Current Ratio Debt Raito Gross Profit Margin Net Profit Margin

2006

2007

2008

2009

92.39% 63.54% 28.75%

91.24% 59.099% 22.01% 1.69% 25.38% 0.077 $8.87

92.04% 54.23% 15.91% 1.36% 18.74% 0.086 $8.26

89.49% 53.94% 15.43% 1.48% 16.97% 0.096 $8.56

Return On Assets 2.22% Return On Equity Total Asset Turnover Ratio Earning Per Share 33.64% 0.077 $14.72

Graphical representation of ratio analysis

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Group # 1

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MBA 2nd

SWOT ANALYSIS & PEST ANALYSIS

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SWOT ANALYSIS OF BANKING INDUSTRY:

STRENGTHS:
Large market size attractive location for exports to South Asia, Central Asia and Middle East. Per capita income of PPP $2000 and 40 years record of 6% GDP growth annually. Abundance of water resources, natural gas. Easy sea port, airport connections with Europe, Asia, and Middle East. A large emerging middle class with growing demand for consumer durables auto services. English speaking educated and trainable manpower with aptitude for fast learning. Self sufficiency in food production and a buoyant agriculture. A liberal foreign exchange regime which allows un-restricted repatriation of profits , dividends and remittances. Quantitative restrictions on imports have largely been removed and tariff rates being brought down to maximum rate of 25% with average indication of 14-15%. Financial sector is open to foreign investors is diversified and has been strengthened in the last three years. Capital markets offer arrange of instruments raising domestic finance. A fiber optic backbone infrastructure up and running for information technology enabled services.

WEAKNESSES:

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 Poor governance record in the nineties with serious adverse consequences for efficiency and equitable distribution of growth. Failed democratic regimes with frequent changes in government in the last decade have natured political uncertainty, discontinuity and inconsistency in implementation. Lingering dispute with Hubco and freezing of foreign currency accounts in May 1998 has shaken foreign investor confidence. Key economic institutions have been in a state of financial and management disarray creating strains on public finance as well as banking system. Bureaucratic procedures and enforcement of contracts are slow, time consuming and cumbersome encouraging lobbying and rent seeking opportunities. Public service delivery of essential services is poor and insufficient and under investment has led to congestion, shortages and access limited to the privileged far. Non governmental organization (NGOs) has not so far played a major role in social development.

OPPORTUNITIES:
Oil and gas resources: To be further explored, developed and distributed. Investment in physical infrastructure development: open to private sector to meet the growing demand in the areas of power, highways, ports and airports. Information technology: Relatively low cost man power available with ample scope for investing in information technology education. Agriculture: Productivity still behind production possibility frontier and requires technical and financial inputs.

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 Agro-based processing industries: Highly competitive and oriented towards exports but still in state of infancy and need to be upscaled. Value added exports in textile sector: Has plans to modernize its textile industry for capturing word market share and positioning in post MFA period through technology, marketing and design improvements and investment in machinery. Financial sector: Deepening to improve the mobilization and allocation of financial resources. Exports in non-traditional commodities: Fisheries, Gems and jewellery fruits and vegetables, information technology are still underutilized. Privatization: Public sector assets worth $3-4 billion are available for sale to strategic investors including foreign investors. Non resident Pakistanis: Offer a large and rich reservation of talent, skills and capital for joint venture partnership.

THREATS:
External and domestic debt burden is quite high relative to the capacity to receive and needed to be reduced to manageable levels. Tax GDP ratio is one of the lowest among the developing countries and resource mobilization effort to be stepped up. Fiscal deficits have been traditionally high and need to be gradually narrowed down. Public sector opportunities riddled with excess manpower, poor management weak financial base have to be restructured and strengthened. Incidence of poverty has risen during the last decade and poverty targeted interventions need to be accelerated.

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 Stagnation in domestic and foreign investment during the last several years has increased and given rise to educated unemployment.

SWOT ANALYSIS OF UBL:

STRENGTHS:
UBL has always looked upon the customers demand and preference while introducing new products. That is why it has some strong points that others dont have as follows:

2nd largest bank of Pakistan in term of deposits after State Bank Of Pakistan. UBL product positioning is very effective .UBL targets the segments salaried persons, business people and self employed person with the age limit of 21-65.UBL product positioning affects the life style of people. UBL s existing infrastructure and a wide network of branches throughout the country give it a competitive edge over its market competitors. Most profitable bank in Pakistan. Overseas branches. Largest number of corporate deals by any bank in Pakistan. Employees are very happy in terms of salary and incentives. The bank has highly qualified middle and lower management personnel to create a team of professionals at all levels. UBL s website and phone banking services up-to-date product information. UBL offer its customers a wide variety of services including ATMs, online banking , internet banking and electronic remittances.

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 Corporate, effective and supportive working environment in banking.

WEAKNESSES:
The bank is making continuous efforts towards minimizing its weaknesses. There are still some areas that have to be improved to be able to compete in this industry .The major weaknesses are as follows: There is no standardization in terms of branches. The services of UBL in some urban areas of Pakistan is not that effective. It is a step behind in introducing new and innovative technology in the bank. Most of employees are overloaded with the work. No separate training center to train new employees. No promotional activities. Centralized decision making. Customers and visitors face to find out person for stamps and signature on their receipts. Due to shortage of branches all over the Pakistan even some potential areas dont have ATMs. Online services are not free as compared to other banks like ALFALAH. Low motivational level ,non aggressive marketing.

OPPORTUNITIES:

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At present the bank faced with a large avenue of opportunities as it has proved by launching new products and exploring various options in the market .The major opportunities are:

Islamic Trading Based Banking can enhance the business of the bank. UBL can remove all the complaints of its customers. UBL can give its staff attractive fresh as well as old attractive packages, in order to get them satisfied. Technology in banking sector is also changing so it is necessary to update technology according to the changes taking place in market for future growth. UBL has an opportunity to do aggressive marketing to increase its business. It can establish advisory service division in order to facilitate the customers in investing in the securities. The bank by establishing the new branches in foreign countries can expand its business and can enjoy with profit. To enjoy with large amount the UBL can introduce a comprehensive range of bonds. Formation of regional offices.

THREATS:
UBL face many threats as competitive pressures have escalated in this particular industry. There are also some threats that UBL faces. All these are as follows: All other banks are giving more salaries in order to make it attractive for the talented people to come and serve the bank.

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MBA 2nd

 Continuous turnover of the highly skilled employees to it competitors can be detrimental in the long run as well as in the short run. Technology in banking sector is also changing so it is necessary to update technology according to the changes taking place in market for future growth. Branch network of other competitors bank is spread not only over the country but also in foreign countries. Terrorism is also a threat for the bank because it reduce the investment in the country. New entrants. Economic stability. Tough competition. Political situation of the country. Day by day changing Govt. policies. Number of banks in Pakistan increasingly rapidly which is a biggest threat for all banks in Pakistan. Lack of customization.

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PEST ANALYSIS
PEST analysis stands for Political, Economic, Social and Technological analysis and describes a framework of macro level environmental factors used in the environmental scanning components of strategic management. It is the part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro environmental factors that the company has to take into consideration. It is useful strategic tool for understanding market growth or decline, business position, potential and direction of operations. Political Factors As UBL Bank, Pakistan is listed in SBP schedule so it has to follow the policies implemented by the SBP. In Pakistan there is no government stability or political stability this also disturbs the working of UBL because every coming government comes with its own agenda of taxation policies and etc. SBPs monetary policy also affects the working of UBL as SBP revises its interest rates on monthly, quarterly, semiannually and on annual basis. Import and Export policies are changing rapidly in Pakistan this also affects the working of UBL Pakistan because it is providing Trade Finance Services to all major Pakistani Businesses. Group # 1 100 MBA 2nd

Economic Factors Economic factors such as interest rates, exchange rates and inflation rates are also affecting the working of UBL, Pakistan. SBP has issued a new policy regarding discount rates that is -7 policy due to which banks are bound to give loans 7% below on the normal interest rates.

Interest Rates are at the highest peak now a days as KIBOR is in between 12% to 13%. UBL, Pakistan gives corporate loans 1% to 2% plus KIBOR rate. As KIBOR is controlled by SBP so it also affects the banks profits.

Exchange rates are changing on daily basis which also causes a major factor for the increase in banks profits or expenses.

Inflation is also a major economic problem of Pakistan. Inflation also affecting UBL, Pakistan because it is a foreign bank and it takes money in PKR and sends its final accounts in its head office Germany in foreign currency.

Social Factors Social factors like cultural aspects, health consciousness, population growth rate, career attitudes and emphasis on safety also affect the working of an organization. UBL, Pakistan also affects from these factors. UBL, Pakistan has a complete green environment. It is conducting health programs for its employees. It is helping the victims of Swat, Balakot and other destroyed areas by giving them food, clothing and such other things with the name of UBL Foundation, Pakistan.

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As its trade finance products are famous among corporate clients so it keeps good relations with its customers.

It is also recruiting its older workers in its different projects in Pakistan after they are retired from UBL, Pakistan.

Technological Factors UBL, Pakistan is adopting the latest technologies to complete its operations. Its offices are equipped with the latest hardwares and softwares to connect UBL worldwide and to its customers. It has a separate IT department with the name of IES which is responsible to keep UBL, Pakistan up to date in technology. It is spending a huge amount in research & development department. Rate of technological change is very fast.

Legal Factors Legal factors include discrimination laws, consumer laws, antitrust laws, employment laws and health and safety laws. All these factors also can affect how a company operates, its costs and the demand for its products. United Bank, Pakistan is completely following the all Pakistani Laws in this context.

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Suggestions
Training programs can be started to update knowledge of employees. Entertainment at work place can be provided to decrease overload of work. Promotions can be given to permute hard working employees. ATM network is not very wide so new ATMs can be installed. New technology and software can be purchased to increase efficiency. Background music can be played to entertain those clients who are waiting for their turn.

Recommendations.

Training institutions should be established Attractive salary package should be given to talented persons. ATMs should be installed in potential areas Free helplilne should be launched so that if clients have any complaint then they can communicate it to higher authorities. More over complaint drop box should

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also be available in every branch to check that weather clients are satisfied or not with services provided by the bank. Bad debts of the bank are increasing as years pass so we strongly recommend that the procedure of sanctioning loans should be revised and those procedures should be used which helps to identify the true solvency position of the loan applicant. Profit of the bank is sharply decreasing from 2006. In 2006 it was 28.6% of interest revenue earned but after year by year decrease it is 15.43% in 2009 which is an alarming situation so the bank should seriously take steps to attract new customers and also should take steps to reduce its cost.

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