SUBMITTED BY

USMAN SAFDAR

ROLL NO
10336

SECTION
BBA-4-C

SUBMITTED TO
AMNA HUMAYUN

SUPERIOR UNIVERSITY LAHORE

Wednesday, April 02, 2014

Acknowledgement
Firstly I would like to thank Sir Arshad Rasool for great support which helped me to complete this report successfully. Would really thank you for providing us the best knowledge during the meeting up till now and for answering all the queries related to the report Secondly I would like to thank the Sheikhupura UBL branch manager Miss Nighat Aslam Virk for giving out the useful information related to UBL which helped to complete the report

Wednesday, April 02, 2014

Table of Contents
1. Introduction: ................................................................................................................................ 5 2. History: ....................................................................................................................................... 5 3. Vision: ......................................................................................................................................... 5 4. Mission:....................................................................................................................................... 6 5. Key People: ................................................................................................................................. 6 5.1 Board of Directors: ................................................................................................................... 6 5.2 Executive Committee: ............................................................................................................... 7 6. Organizational hierarchy:............................................................................................................ 8 7. Branch hierarchy ......................................................................................................................... 9 8. Accounting flow chart............................................................................................................... 10 9. Services: .................................................................................................................................... 10 9.1 UBL Wiz: ................................................................................................................................ 11 9.2. UBL Net banking: .................................................................................................................. 12 9.3. UBL e-statement: ................................................................................................................... 12 9.4. UBL Ham rah:........................................................................................................................ 12 9.5 UBL Wallet: ............................................................................................................................ 12 9.6 Remittances (UBL Tez Raftaar): ............................................................................................ 13 9.7 UBL Online Shopping: ........................................................................................................... 13 9.8 UBL Packages:........................................................................................................................ 14 10. Types Of Accounts Maintained In UBL: ................................................................................ 14 10.1 UBL Business Partner (Current Account): ........................................................................... 15 10.2 UBL Basic Banking Account (BBA):................................................................................... 15 10.3 UBL UniFlex Account: ......................................................................................................... 15 10.4 UBL UniSaver Account: ....................................................................................................... 16 10.5.Foreign Currency Savings Account: ..................................................................................... 17 10.6.Rupee Transactional Account: .............................................................................................. 17

Wednesday, April 02, 2014

11.Types of department in UBL: .................................................................................................. 17 11.1.Account Opening Department: ............................................................................................. 17 11.2 Clearing Department: ............................................................................................................ 18 11.3 Accounts Department: .......................................................................................................... 18 11.3.1. Budgets: ............................................................................................................................ 19 11.3.2 Income & expenditures of bank: ........................................................................................ 19 11.3.3 Reports: .............................................................................................................................. 20 11.3.4 Reconciliation: ................................................................................................................... 20 11.4 Cash department: .................................................................................................................. 20 12. Credits Department: ................................................................................................................ 21 13. Accounting Procedures to Record: ......................................................................................... 21 14. References: .............................................................................................................................. 21

Wednesday, April 02, 2014

1. Introduction:
United Bank Limited is the second largest private commercial bank in Pakistan with over 1121 branches and has an international presence in 10 countries. We are a growing bank with immense potential and prospects for employment in the offering. We are on the path rerouted for attaining excellence; to achieve our goals for more prosperity and to enhance our internal and external equity. We believe in setting the right goals for the right jobs and we strive to identify the right resources. UBL is known for redefining the career paths and growth prospects of all its employees. [2]

2. History:

United Bank Limited is the second largest private commercial bank in Pakistan

The decision to establish UBL was taken in June 1959 and the company was registered on July 24, 1959. United Bank Limited started the operations on November 7, 1959. On 9th November 1959 the Gazette of Pakistan notified and included UBL in its list of scheduled banks operating in Pakistan. The bank continued its operations as private banking company until 31st December 1973 when it was nationalized by the government of Pakistan. (Regime of Bhutto) The bank was working as nationalized bank when the government decided to privatize some banks. So the privatization program started in 1991. [2]

3. Vision:
To provide exceptional products and services based on Islamic doctrine. To cater to all religions & sects, races and colors, Ethnicity and cultures in the true spirit of equality. To be the change agent in the global financial Industry, aiming ethical solutions. [2]

Wednesday, April 02, 2014

4. Mission:
We at UBL Amen will strive to attain the premier position in the Islamic Banking Industry by providing. Our customers with personalized services, exceptional value and a sense of security by catering to all. [2]

Their financial needs through Shariah compliant products and services

5. Key People:
Key People of United Bank Limited includes: His Highness Sheikh Nahyan Mubarak Al Nahyan Chairman Sir Muhammad Anwar Pervez Deputy Chairman Agha Hassan Abidi Founder [2]

5.1 Board of Directors:

His Highness Sheikh Nahyan Mubarak Al Nahyan Chairman Sir Muhammad Anwar Parvez OBE Deputy Chairman Atif R.Bukhari President & CEO Mr. Omain Zaid Jafar Al Askari Director Mr. Zameer Muhammad Chaudrey Director Mr. Ahmed Waqar Director Dr. Asfhaque Hassan Khan Director Mr. Aqeel Ahmed Nasir Company secretary & Chief Mr. Abdul Rauf Malik Director Mr. Ameer Karachiwala SEVP/Group Chief Financial Officer Mr. Ejazuddin Group Executive/Audit & Inspection Group [2]

Wednesday, April 02, 2014

5.2 Executive Committee:

Atif R.Bokhari President& CEO Mr. M.A. Manan Group Executive Consumer/Commercial Banking Mr. Numan Hussain Group Operations & Technology Head Miss. Risha Mohyeddin Group Executive Treasury & Capital Markets Mr. Ameer Karachiwala - Group CFO [2]

Wednesday, April 02, 2014

6. Organizational hierarchy:

Chairman

board of directors

cheif executive officer

executive commitee

executive incharges
[5]

Wednesday, April 02, 2014

7. Branch hierarchy

Cheif manager

manager operations

manager international banking

manager credits

Internal audit department

marketing department

accounts department

imports department

leasing department

cash department

exports department

home finance department

account opening department

foreign exchange department

car finance department

remittences department

credit card department

clearing department

[5]

Wednesday, April 02, 2014

8. Accounting flow chart

Accounts receivable Pay roll Inventory control Fixed assets accounting

General ledger

Accounts payable Cost accounting [5]

Order entry

9. Services:
UBL has taken progressive steps and has introduced innovative products and services to provide you a variety of banking and financing services. As an individual or a group you can get much through UBL Services. You can utilize the following services: UBL WIZ UBL Net banking UBL E-statement UBL Ham rah UBL Wallet Remittances UBL Online Shopping (for corporate customers only) Packages [1]

10

Wednesday, April 02, 2014

9.1 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 dining, you are accessing money directly from your prepaid card, without having to visit the bank. It is available is three types. I.e. UBL Wiz

Max balance per card Rs.200,000/Loading / Reloading per instance Rs.100,000/ATM withdrawal per day Rs.40,000/POS usage per day Rs. 100,000/Internet usage per day Rs. 100,000/- [1]

UBL Wiz Ladies VISA:

Max balance per card Rs.50,000/Loading / Reloading per instance Rs.25,000/ATM withdrawal per day Rs.20,000/POS usage per day Rs. 50,000/Internet usage per day Rs. 25,000/- [1]

UBL Wiz Teen VISA:

Max balance per card Rs.20,000/Loading/Reloading per instance Rs.10,000/ATM withdrawal per day Rs. 20,000/POS usage per day Rs. 20,000/Internet usage per day Rs. 10,000/- [1]

11

Wednesday, April 02, 2014

9.2. UBL Net banking:

UBL net banking is an Internet Banking portal offering a simple, convenient and secure method of accessing bank accounts on the Internet. It's never been so easy to access and manage your finances in a secure, real-time, online environment; Anywhere, Anytime. Using UBL net banking, the customers have access to their bank accounts 24 hours a day, 7 days a week and can keep a close eye on their account balances, print account statements, pay bills, transfer funds, track purchases and schedule their recurring payments at the touch of a button and much more. [1]

9.3. UBL e-statement:

UBL e-statement gives you the flexibility to choose how frequently you want to receive your estatements i.e. daily, weekly, monthly, quarterly or semi-annually. This facility is available absolutely free of cost for Wiz card holders. [1]

9.4. UBL Ham rah:

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 Travelers Cheque facility in Pakistan, as early as 1971. In continuation of the same tradition, UBL in the shape of "Ham rah" Rupee Travelers Cheque enhances this facility for the convenience of its valued customers by offering denominations up to Rs. 10,000. [1]

9.5 UBL Wallet:

Introducing the new UBL wallet card, now with the international power of VISA. UBL Wallet, now with the power and international acceptance of VISA! Your Wallet VISA ATM & Debit Card has all the convenience and the quality you deserve. This Wallet holds all the cash in your bank account. [1]

12

Wednesday, April 02, 2014

9.6 Remittances (UBL Tez Raftaar):

Free Doorstep Remittances With-in the country or from abroad, UBL offers the most efficient and price competitive service. With our large network of branches, we are poised to offer you service almost at your door step. UBL's new 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 branches along the Bank's Network in the Middle East, UK and US. [3]

9.7 UBL Online Shopping:

UBL Wiz provides you convenience and security to shop online. In order to activate your card for online transactions, you will need to sign up for the facility and enable your card. [4]

13

Wednesday, April 02, 2014

9.8 UBL Packages:

E Transaction accounts come in Gold & Silver packages that have all the features of the regular current account PLUS amazing Waivers & Benefits: [1]

Power Pack Basic

Account-Type
Package Qualification: Maintain following Minimum Average Monthly Balance in an eTransaction Account in previous month E-Transaction Account/Current account/ PLS account Rs.10,000

Silver
E-Transaction Account Rs.15,000

Gold
E-Transaction Account Rs.30,000

[1]

Net Banking monthly Fee

Last 3 Month Average Balance

Bronze Rs. 25/Free Free

Silver Rs.45/Free Free

Gold Rs.75/Free Free

Platinum Rs.150/Rs.75/Free

E T Account Less than 15,000 15,000-29,999 More than 30,000

[1]

Omni Monthly Fee

If monthly transaction limit chosen is below Rs.1,000 If monthly transaction limit chosen is between Rs.1,000-30,000 If monthly transaction limit chosen is between Rs.30,001-Rs.50,000 No Monthly Fee Rs.50 Rs. 100 No Monthly Fee No Monthly Fee Rs.50 No Monthly Fee No Monthly Fee No Monthly Fee

[1]

10. Types Of Accounts Maintained In UBL:

These are many types of account UBL Business Partner (Current Account) Rupee Transactional Account (RTA) UBL Basic Banking Account (BBA) UBL UniFlex Account Wednesday, April 02, 2014

14

 UBL UniSaver Account Foreign Currency Savings [1]

10.1 UBL Business Partner (Current Account):

Its a current Account offered by UBL. So your account moves with you wherever you go. Access your account from over 700 online branches in over 400 cities all across Pakistan for unlimited online transactions. Enjoy total convenience at any online branch with:

Instant Cash Deposits & Withdrawals. Country Wide Instant Funds Transfer. Issuance of Pay Order, Demand Draft & Telegraphic Transfer. Instant Cheque Clearance for all UBL Cheques. Speedy clearing and collection of any non UBL cheque in any Online UBL branch. Statement of Account Issuance / Bass lances Inquiry / Stop Payment of Cheques. [1]

UBL has 700 online branches in 400 cities

10.2 UBL 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 February 25, 2006 across its 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: The minimum initial deposit at the time of account opening is to be Rs. 1000. [1]

10.3 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. By having a UBL UniFlex Account, you can avail the following: Amazing rate of return. Convenience of a cheque book. Power of Wallet VISA ATM / Debit Card. Online Banking Facility. [1]

15

Wednesday, April 02, 2014

Terms & Conditions:

1) All individual and account or sole joint account holders proprietor. and sole 3) The Bank shall proprietorships are determine from time eligible for the UBL UniFlex Account UBL UniSaver Account is (scheme); an innovative way of Corporations serving your banking needs and partnerships are ineligible to time the rate of for the scheme. interest/return/profit 2) Only one UBL payable on the UniFlex account per account/deposit in Computerized accordance with the National Identity Card prevailing profit and (CNIC) shall be loss sharing rules and allowed to be opened regulations of the in UBL, regardless of State Bank of Pakistan the branch; no and the policies of the doubling shall be Bank which are allowed even as joint 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. 4) If the minimum balance touched during any calendar month exceeds Rs.200,000/-, interest/return/profit shall only be paid on Rs.200,000/- and no interest/return/profit will be paid on the amount exceeding this limits. [1]

10.4 UBL UniSaver Account:

UBL UniSaver Account is an innovative way of serving your banking needs. Be it Innovative and flexible checking account Attractive rates of return trade, business or personal finance, the UBL UniSaver allows you maximum Profit is calculated on monthly average balance flexibility, yet gives you optimum return.

Profit payment is on six monthly basis Higher returns on higher balances [1]

16

Wednesday, April 02, 2014

10.5.Foreign Currency Savings Account:

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 you can have the following benefits. [1]

10.6.Rupee Transactional 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 will serve all your financial needs. By keeping your deposits in UBLs PLS Savings Account you can also avail the following services.

Savings Account will serve all your financial needs

No limitation on withdrawals Share of profit is credited on half-yearly basis Profit is calculated on monthly balance UBL offers free accidental and permanent disability insurance to individual and joint account holders [1]

11. Types of department in UBL:

These are many types of department Account opening department Clearing department Accounts department Cash department [6]

11.1 Account Opening Department:

"An account opening department in UBL consists of: Account Opening Procedure The persons who are eligible to open an account

17

Wednesday, April 02, 2014

Kinds of Accounts offered by Bank Alfalah Limited Information about Royal Profit Account Documents required by different categories of persons Issuance of Cheque Book Preparation of Debit and Credit Vouchers Procedure of closing an account Information about Zakat Exemption

An account opening is an initial step of building contractual relationship with customer. [6]

11.2 Clearing Department:

Clearing department consists of: Procedure of clearing a cheque Checking of cheques Inward and outward clearing Within bank transfer Different reason of returning a cheque Types of clearing stamps

The basic function of the clearing department is to facilitate the customer

It provides them the services in collection of their cheque in other banks. [6]

11.3 Accounts Department:

Accounting opening department consists of or these are the following activities carried out in this department. Budgets Income & expenditures Reports Budget review form Reconciliation Foreign Exchange [6] Wednesday, April 02, 2014

18

11.3.1 Budgets:
Annual budgets are prepared three months earlier before the start of New Year. One-year budget are further splits in semi-annually, and monthly basis. During three months, budgets are reviewed by head office. At times changes are asked to make in accordance with changing rates, excess funds and due to other reasons. [5]

Major Heads Include In Budgets

Deposits Advances Car finance Exports Imports Guarantees Income/ expenditure

The revenue target is fixed keeping in view the past performance. The cost of generating these revenues is also estimated. [6]

11.3.2 Income & expenditures of bank:

Income
Mark up on advances Mark up on h/o balances/ demand a/c Mark up on placements Mark up on investments [6]

Expenditures
Total interest expenditures Total administrative expenditures Personal cost Training & subscription Rent, taxes, instrument [6]

19

Wednesday, April 02, 2014

11.3.3 Reports:
Each and every activity with their particular is reported daily by MIS. Besides daily reports, these are weekly, monthly, semiannual, and annual reports. These are generated from the main frame and are used or proper analysis. Account and Audit departments further authenticate these activities on daily basis. [6]

MIS compiles every activity of each department

11.3.4 Reconciliation:
United bank limited prepares its reconciliation statements with Head Office State Bank of Pakistan [6]

Head Office Reconciliation

All the debit and credit entries of the main office account are recorded in the statement. Then it is checked with physical vouchers and if there is any problem, they reconcile it. Head Office check the outstanding entries, if there is any entry posted by branch but not by head office they will send their query to the branch and then branch will respond to that query by sending the required document. Head office reconciliation is carried out in the head office; accounts department handles inquiries. [6]

State Bank of Pakistan Reconciliation

State Bank of Pakistan maintains the account of every scheduled bank including united bank limited. The statement of account reconciliation shows the entries that are passed during the month in both banks. United bank limited compares the statement with the ledger card of State Bank of Pakistan in which all entries are recorded done with SBP. It is added in the balance of the reconcile statement provided by the State Bank of Pakistan to united Bank limited. [6]

11.4 Cash department:

The department is responsible for the handling of cash deposits and encashment of cheque issued by the depositors. Receipt of Cash Receiving of Cheques

20

Wednesday, April 02, 2014

 Verification of Signatures Payment of Cash [6]

12. Credits Department:

Consists of Credit facilities for customers Long term & short term loans Employees loan Securities for credit [6]

13. Accounting Procedures to Record:

Fixed assets Current assets Current liabilities Long term liabilities Reserves [5]

14. References:
[1] https://www.ubl.com.pk/ [2] Annual Report on UBL 2010 [3] https://www.ubldirect.com/en_AE/events/TezRaftaarCash.aspx [4] http://propakistani.pk/2008/08/27/ubl-now-offers-online-shopping-for-its-debit-card-holders/ [5] http://www.scribd.com/doc/18061782/UBL-Internship-Report [6] http://www.scribd.com/doc/52168396/5/Account-opening-department

X
Usman Safdar BBA-4-C

21

Wednesday, April 02, 2014