UBL REPORT For Nomi Correct The Table of Contents

ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD
Submitted To Submitted By
; ; YASIR ABBAS AD 511707 M.B.A FINANCE
I dedicate this work of mine to my Teachers, My Parents and to all My Friends, who truly help and guide me in completing this project.
M.B.A FINANCE is a program in which we studied about business and finance. In Pakistan the banking sector is at the maturity stage and banking sectors are the best institutes in which we are easily understand the practical experience. Master of commerce gives us and opportunity to touch the practical experience about business and finance as the internship. The Internship program in an important part to give students an opportunity to have experience of practical field. Unless and until the students experience the novelty of practical work, their knowledge of what they study in theoretical courses remains incomplete. The most important point in an Internship program is that the student should spend their time in a true manner and with the spirit to learn practical orientation of theoretical study framework. This Internship Report is on my Six weeks practical training at (UBL) UNITED BANK COC BRANCH GUJRANWALA. In this Internship Report I have tried to give details about the United Bank Limited, working and the functions of different departments of the bank.
YASIR ABBAS
First of all, I thank my respected teachers for providing me comprehensive knowledge about Commerce Courses and also for providing me the opportunity to complete my Internship Program in UBL to enhance my practical knowledge about banking sector of Pakistan. I am also indebted to the followings because without their help, I would not be able to achieve this practical knowledge.
TABLE OF CONTENTS
SR. # 0 01 02 03 04 05 06 07 08 09 10 11 12 Title Page
CONTENTS
PAGE #
Copy of Internship Letter Acknowledgement Dedication List of Contents Executive Summary Objective of Studying Organization Introduction of UBL Overview of UBL Services and Products Future Plans of UBL UBL Management structure I II III 01 02 04 06 12 14 15 17 20
14 15 16 17 18 SWOT Analysis Recommendations Conclusion References Annexes YASIR ABBAS M.B.A (Finance)
40 41 46 48 50
EXECUTIVE SUMMARY
YASIR ABBAS M.B.A (Finance)
The aim of an internship was to have the practical knowledge about the organizational working. The organization I selected to me for an internship was UBL Branch. Departments working in this building are Operations department, Credit department, Retail department, Government department an HR department. I accepted this task as a challenge and tried my best to explore & cover each and every aspect of UBL with in my 6 weeks internship. This internship report covers many important aspects which are basically related with the operations and financial aspects of the bank. From all of the departments following departments are covered mainly during my internship: HR department United Bank Limited providing the general banking services. United Bank Limited Pakistan currently has a wide network of branches inside the country and in all commercial centers of the world as well. Through this huge network of branches the Bank is providing all sorts of services that have become part of the modern banking. United Bank Limited Pakistan successfully adopts new innovations and new products, which are rapidly adding up in the product mix of banking industry The Bank is providing deposits facilities to more than five hundred thousand customers in the country and which is increasing day by the time. In the deposits area the bank is providing special accounts such as PLS Term Deposit (Monthly Income account), which provides a monthly withdraw able return on the account And there is a National Income Daily account, carrying hybrid characteristics of saving and current accounts, distributes all profits on daily product basis to the account holders. The bank is trying to revolutionize the services that are provided over the counter and is working for an early change in all the branches of the bank. In the advances side the bank has been successful in deploying its resources in the best way in all commercial, industrial and agricultural sectors of the country. These advances have been increasing with the Increasing trade and commerce, and bank has been able to meet the requirements up to the maximum extent.
The introduction of a new set of services in shape of foreign currency accounts has further given a sharp rise in the banking field. This has made easy for the foreigners residing in Pakistan to be encouraged and make the inflow of foreign exchange. In the country more stable. I do the following work in bank. I observe especially HR activities as well as general activities in bank.
CHAPTER NO.1 INTRODUCTION:
Students of M.B.A studying courses leading to Master degree in Commerce are required to undergo an internship program of Six Weeks duration. This is an essential academic requirement. The internship is followed by comprehensive report writing, required to submit to the Islamia University Bahawalpur Bahawalnagar campus In Department of Commerce. This report is properly evaluated on the basis of its description and analytical capabilities by internal and external examiners. I did my internship in United Bank Limited COC branch GUJRANWALA..
PURPOSE OF STUDY:
The purpose of the study is to work in real life situation and learn banking practice by doing. In this context its objectives are: i. ii. iii. To analyze banking operations i.e. operational analysis, financial analysis. To develop concrete and feasible recommendations. To improve report writing skills.
SCOPE OF STUDY:
The study is confined to banking operations. An attempt, along with all its limitations, to collect financial data and general statistics of the bank has been made. Keeping in view the purpose of the study, which is to make an acquaintance with practical doings in the bank, this seems a comprehensive effort.
LIMITATION OF STUDY:
It is to admit that the study attempts only those aspects, which are closely relevant to the purpose of the study. Facts and figures, which otherwise might be equally YASIR ABBAS M.B.A (Finance)
10
important, but not having a direct bearing on the conclusions arrived at this study, have been ignored.
METHODOLOGY OF STUDY:
Both primary and secondary data were used in compilation of the report. Methodological tools used were: i. Primary Data: ii. Personal Observations. Discussion with Bank Personnel.
Secondary Data: Brochures/ Manuals of the bank. Annual Report State Bank Foreign Exchange Manual Bank internship reports on UBL available in library. Journals, newspapers and books. Internet.
OBJECTIVE OF STUDYING ORGANIZATION:

11
Organizational studies, organizational behavior, and organizational theory is the systematic study and careful application of knowledge about how people - as individuals and as groups act within organizations. Whenever people interact in organizations, many factors come into play. The purpose of the study is to work in real life situation and learn banking practice by doing. In this context its objectives is to analyze banking operations i.e. operational analysis, financial analysis and doing practical work in banking sector by applying theoretical concepts learned during educational period.
OBJECTIVE OF STUDYING UNITED BANK LIMITED

12
My objective is to develop the management skills. I had understood many skills about the (HR) department and some are these: The main objective of studying the organization is to prepare the MBA internship report to be submitted to the Chairman Business Administration. Improve personal skill i.e. organizational analysis, HR analysis. Studying the organizational and HR set up of UBL Conducting a diagnostic study of UBL HRD mechanism and strategy. Evaluating working environment of the HR division. Help develop concrete plans, including long term action plans, along with financial details. Discover what I'm missing in my approach. To define and follow a confident positive career direction using my most desirable skills doing work than excites me and enriches my soul. Find my dream job. To identify my strengths and passions in order to create a fulfilling and successful career.
CHAPTER NO.2
HISTORY OF BANKING
13
Bank is a pipeline through which currency moves into and out of circulation. Bank accepts deposits and repays cash to its customers on their demand. The Bank borrows money at a lesser rate of interest and lends it to the borrowers at a higher rate. It is thus a profit-lending concern. Bank cannot lend all the money that has been deposited with it. It has to keep a certain portion of the total deposits in cash with them in order to meet the cash requirements of the individuals and business concern.
Banking History Word Bank is said to be derived from the words Bancus or Banquewhich means bench other authorities hold the opinion that the word bank is derived from the German word Back which means joint stock fund. The history of banking is traced to as early as 2000 BC. The priests in Greece used to keep money and valuables of the people in temples. These priests thus acted as financial agents. The origin of banking is also traced to early goldsmiths. They used to keep strong safes for storing the money and valuables of the people. The persons who had surplus money found it safe and convenient to deposit their valuables with them. The FIRST STAGE in the development of modern banking, thus, was the accepting of deposits of cash from those persons who had surplus money with them. The goldsmiths used to issue receipts for the money deposited with them. These receipts began to pass from hand to hand in settlement of transactions because people had confidence in the integrity and solvency of goldsmiths. When it was found that these receipts were drawn in such a way that it entitles any holder to claim the specified amount of money from goldsmiths. A depositor who is to make the payments may now get the money in cash from goldsmiths or pay over the receipt to the creditor. These receipts were the earlier bank notes. The SECOND YASIR ABBAS M.B.A (Finance)
14
Introduction To Banking
STAGE in development of banking thus was the issue of bank notes.
The goldsmiths soon discovered that all the people who had deposited money with them did not come to withdraw their funds in cash. They found that only a few persons presented the receipt for encashment during a given period of time. They also found that most of the money deposited with was lying idle. At the same time, they found that they were being constantly requested for loan on good security. They thought it profitable to lend at least some of the money deposited with them too the needy persons. This proved quite a profitable business for the goldsmiths. They instead of charging interest from the depositors began to give them interest on the money deposited with them. This was the THIRD STAGE, in the development of banking. By experience the banks came to know that they could keep a small proportion of the total deposits for meeting the demands of customers for cash and the rest they could easily lend. They allowed the depositors to draw over and above the money actually standing to their credit. In Economics terminology we can say that they allowed the overdraft facilities to their depositors. This was the FOURTH STAGE, in development of banking. When every bank issues receipts and most of them allowed the overdraft facilities, there was then too much confusion in the banking system. The banks in order to earn profits could not keep adequate reserves for meeting the demands of the customers for cash. The failures on the part of the bankers to return money caused widespread distress among the peoples. In order to create confidence among the people, steps were taken to regulate the banking organization. A conference was held in Nuremberg in 1548. It was decided that a bank should be set up by the state, which should streamline the banking organization and technique. The YASIR ABBAS M.B.A (Finance)
15
first central bank was formed in Geneva in 1578. Bank of England was established in 1694. The responsibility of issuing of notes is now entrusted to a central bank of each country.
COMMERCIAL BANKING IN PAKISTAN:

At the time of partition total numbers of Banks were 38 only. Out of these Banks the
Pakistani Banks were only 2 , Indian Banks 29 & Exchange Banks were 7. The total of deposits of Pakistani Banks was Rs.880 Million. & advances were Rs: 198 Million. According to banking companies ordinance Banks are the companies, which transacts the business of YASIR ABBAS M.B.A (Finance)
16
Banking in Pakistan.
Commercial Banks have constituted the most important [part of the intuitional credit in the economy of Pakistan. Being the largest source of credits, Banking Industry is a pivot of whole the economic activities in Pakistan. Section 37(2A) of State Bank of Pakistan Act 1965 lays down that the Banks must have paid-up capital & reserve of not less then Rs: 5 Lac & fulfilling certain other requirements for declaring as Scheduled Bank. At the time of independence Bank services was badly affected. But with the passage of time these are improving. The government of Pakistan nationalized all Banks in early 1974. This act was done to minimize control of few hands over banking. But this step was proved e futile for the Banking in Pakistan. So the Govt. had to revise its decision in1990. Two Banks (Allied Bank Of Pakistan Limited & Muslim commercial Bank Of Pakistan Limited have been denationalized. Since then Banks were working well. Now slogan of the Banks is to serve their customers in the best possible manner. Professor Berton: Banks are the guardian & distributor of money . Similarly we can say that it is a pipeline thorough which currency moves into & outside the circle. Banks accept deposited of money and repay it on demand. Bank borrows money at lesser rate of interest & lends it at higher rate of interest. In this way Banks earn money. Bank do not lend all money they collect, they keep certain portion of it as reserve to meet the uncertain demand of the customer.
17
OVERVIEW OF THE ORGANIZATION:
History of UBL
18
The decision to establish UBL was taken in June 1959 and the company was registered on July 24, 1959. United Bank Limited started the operations on 7 November 1959 with its first branch namely McLeod Road now I.I Chunrigar Road at Karachi. On 9th November 1959 the Gazette of Pakistan notified and included UBL in its list of scheduled banks operating in Pakistan. The first president of the UBL was Mr. I. I. Chundrigar. Most of the branches of Union Bank Ltd. were merged into UBL to work as UBLs subsidiary .The head office was at Dhaka. With its shortest span of time UBL emerged as dynamic and large international organization. In 1969 the Management of Union Bank Ltd. Incorporated in former east Pakistan, was handed over to UBL, which was later emerged with UBL in early seventies. The Bank continued its operations as private banking company until 31st December 1973 when it was nationalized, in the large nationalization process in the government of Zulfiqar Ali Bhutto, along with other banks operating in the country and other two banks namely Pak Bank of former East Pakistan and Commerce Bank Ltd. Were merged with UBL. A Bank, like the society it serves should be dynamic as banking is about people customers with their needs and opportunities and staff with skills, experience and resources. UBL has shown dynamism since its inception. There have been many changes in the structure, functions and the services provided. These changes reflect the changing requirements of our developing economy as a whole and those of Industry, Commerce and private Individuals. On October 19th 2002, biggest event occurred in the history of UBL. As UBL was privatize. The Government handed over the management of UBL, the third largest bank of the country to the successful bidder Consortium of Abu Dhabi Group (UAE) and Bestway YASIR ABBAS M.B.A (Finance)
19
Holding Ltd. (UK). The sales agreement for the transfer of 51% shares was signed by Privatization Minister Altaf M. Saleem and Bestway Holding, Sheikh Nahayan Mubarak Al Nahayan at a ceremony. This event was declared as a New Journey for UBL. On May 8th 2004, Atif Bukhari took over the charges as new Chief Executive Officer of UBL from Amar Zafar Khan, who served UBL for more than seven years. UBL officially announced the appointment of Atif Bukhari as its CEO. Bukhari was previously Senior Executive Vice President (SEVP) and Group Head, Corporate and Investment Division of Habib Bank Ltd. He was also a member of the HBL Management Committee. In the view of highly impressive growth and development achieved during its 46 years of experience, UBL has come to be accepted as one of the most progressive and dynamic components of the banking industry in Pakistan.
Nature of the Organization:

The UBL is under the ownership of two very strong (financially) group (The Abu Dhabi Group & The Best way Group) and The Deputy Chairman of the UBL is Sir Mohammad Anwar Pervaiz who is the leading role of Best way Group. So UBL is acted as a centralized bank. In 1986, the organizational structure of domestic operations of the bank was reformed and decentralized on the basis of provinces. As a result provincial headquarters were established at Karachi, Lahore, Peshawar and Quetta in order to meet the needs of sanctioning loans and other facilities to the trade, industry and agriculture of each province. Azad Kashmir YASIR ABBAS M.B.A (Finance)
20
was serrated from NWFP and made separate region. UBL is a commercial bank. Commercial Banks have constituted the most important [part of the intuitional credit in the economy of Pakistan. Being the largest source of credits, Banking Industry is a pivot of whole the economic activities in Pakistan.
Business Volume:
Number of Branches: UBL has a large network of branches, which extends to the remotest areas of the country. In December 1983, there were 1623 branches whereas in 1974 it had only 1238 branches and in October 2003 these figures show total number of 1007 branches UBL has been very active in increasing its overseas branches network. The first foreign branches were
established in London in 1963. Now UBL has branches in Bahrain, Qatar, Saudi Arabia, United Arab Emirates, Yemen Arab Republic, UK Switzerland, Egypt, Oman and The United States. These branches are playing a significant role in channeling home remittances and foreign trade of Pakistan. Subsidiaries: UBL has four subsidiaries, namely: United National Bank Limited (UNB), UK United Bank AG (Zurich), Switzerland
21
BRANCHES IN PAKISTAN
22
REGION WISE BRANCHES NET WORK OF UBL

23
Lahore East Region Lahore East Lahore West Region Lahore West Faisalabad Region Faisalabd Gujranwala Region Gujranwala Islamabad Region Islamabad Sargodha Region Sargodha Peshawar Region Peshawar Mardan Region Mardan Sahiwal Region Sahiwal
25
Karachi North Region Karachi North Karachi South Region Karachi South Karachi Central Region Karachi Central Hyderabad Region Hyderabad Rawalpindi Region Rawalpindi Quetta Region Quetta Bahawalpur Region Bahawalpur Multan Region Multan Jehlum Region Jehlum
27
24
31
19
18
08
11
21
20
15
08
20
05
13
24
14
16
Number of Employees:
24
The number of employees with their designations working in UBL 284 branch are listed below: Mr. Mukhtar Hussain (Branch Manager) Mr. Abid Farooqi (Customer Service Manager) Mr. Irshad Farooqi (Supervisor Funds Transfer) Mr. Ehtesham Shabir (Customer Service Representative) Mr. Iqbal Khattak (Chief Teller) Ms. Sumaira Naeem (Universal Teller)
Product Line:
UBL, where you come first Consumer Banking UBL Address UBL BusinessLine UBL CashLine UBL Credit Cards UBL Drive UBL Money Commercial Banking Agriculture Products Small Business Schemes Investment and Saving Accounts YASIR ABBAS M.B.A (Finance)
25
UBL Basic Banking Account UBL Business Partner (Current Account) PLS UniSaver PLS UniSaver Plus UBL Rupee Transaction Account (PLS Saving) UBL UniFlex eTransaction (Current Account) Complementary Services Insurance Certificate UBL Net banking UBL e-statement
SWOT Analysis:
SWOT is useful tool for providing a framework for analysis of an organization. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. It is a common approach to make assessments in terms of internal and external environment of the organization, and to formulate strategies analyzing its internal strengths and weaknesses, external opportunities and threats, coming up is the SWOT analysis for the UBL.
Strengths:
It is one of the largest private banks with a deposit base of Rs. 94883/- millions showing constant growth over the period.
26
It has a well-knitted branch networking system that efficiently covers both the domestic and international markets.
It is involved in both corporate and retail banking. Advances investment of the bank shows a constant growth pattern. The current years growth rate is 32%.
The bank is owned by parties of financial repute and credit worthiness like, SBP with 48.69% interest, Best Way group and Abu Dubai group with 25.50% of interest each. Others are GOP, NBP Trustee Department, State Life Insurance Corporation etc.
Weaknesses: Accumulated losses pushed the bank to cut down its promotional activities in order to reduce expenses for last few years. During the nationalization life span of the bank political lords used influence in bank business and selection of employee and thus adversely affected the banks efficiency and effectiveness. Administrative expenses are 51% of the mark up revenue. Promotions are carried out on annual basis ignoring the importance of capabilities and performance outputs. Opportunities:
27
Growing policies of the GOP on business and economic sectors provide UBL an opportunity to efficiently meet with the business people requirements of instant cash facilities e.g. the government intentions of developing housing and agriculture sectors.
Government is taking very bold steps to promote IT in Pakistan UBL has an opportunity to improve in IT stock exchange is very volatile and takes immediate effect so in times of crises conservative investors turns to saving deposits.
UBL is surrounded by many competitors it has an opportunity to aggressive marketing to increase its business.
Increase the product range to meet the broader range of customers needs.
Threats: Threats are also external factors in the environment, which are not in the favor of company, which can seriously hamper the companys ability to serve its customers. Expansion of new commercial banks like ASKARI bank, UNION bank and etc.. And their better performance may cause loss of market shares of UBL. According to World Bank report the Pakistan has become over banked economy with cut throat competition for deposits in the industry the battle is on for the market shares. The customers have emerged as the main Beneficiaries of the competition. Now they are getting more personalized services and innovative product. Along with the growth in size, the banks are now incorporating innovative approaches to their traditional commercial banking operations, keeping in the view the changing demand of the time. UBL face problem. YASIR ABBAS M.B.A (Finance)
28
The political influences affect the performance of bank very badly. Most of the loans become bad dad debits due to political pressure
No stable government in Pakistan, Government policies change with the change of government.
The concept of evening and Saturday banking, telephonic and online banking, ATMs and credit cards are direct result of the intensive competition. But UBL is behind the above-mentioned services.
Freezing of foreign currency account by the government of Pakistan is also a fear for the bank.
PEST Analysis:
WHAT IS PEST ANALYSIS?
It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization's marketing environment is made up of: 1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc. 2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc. YASIR ABBAS M.B.A (Finance)
29
3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors.
POLITICAL FACTORS.
The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as: 1. How stable is the political environment? 2. Will government policy influence laws that regulate or tax your business? 3. What is the government's position on marketing ethics? 4. What is the government's policy on the economy? 5. Does the government have a view on culture and religion? YASIR ABBAS M.B.A (Finance)
30
6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others? t is the government's position on marketing ethics? 4. What is the government's policy on the economy? 5. Does the government have a view on culture and religion? 6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others?
Economic Factors:
Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. You need to look at: 1. Interest rates. 2. The level of inflation Employment level per capita. 3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on.
SOCIOCULTURAL FACTORS.
The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include: 1. What is the dominant religion? 2. What are attitudes to foreign products and services? YASIR ABBAS M.B.A (Finance)
31
3. Does language impact upon the diffusion of products onto markets? 4. How much time do consumers have for leisure? 5. What are the roles of men and women within society? 6. How long are the population living? Are the older generations wealthy? 7. Do the population have a strong/weak opinion on green issues?
TECHNOLOGICAL FACTORS.
Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points: 1. Does technology allow for products and services to be made more cheaply and to a better standard of quality? 2. Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc? 3. How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc? 4. Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc
Business Plans:
32
UBL expects its strong customer focus to drive the banks future business strategy. On the domestic side bank has already launched its consumer banking business. Increased investment is targeted in developing Human Resources; Infrastructure and internal system support the aggressive consumer initiative and explorations of new avenue generation. The first step under this initiative is the launch of the banks ATM / Debit Card.. Furthermore UBL has plans to introduce a full suite of innovative consumer finance products designed to capture a significant share of the local consumer financing market and tap into the current growth in demand of such financing.
Personalized Service and Dynamic Approach

In order to meet its goals and capture the market share the Bank employed professional and skillful approach to the management, which took a series of successive measures to educate the people of Pakistan banking and saving minded. Various drives for the mobilization of saving and other accounts were initiative. The knowledge of customers business market research and business planning, visits to customer at their door steps, development of personalized relational ship with business community, fixation of seasonal business targets and follow-ups to achieve these goals attained prominence. Flexibility, delegation of authority to the lowest possible level and encouragement by initiative were the key factors, with helped the bank, to achieve the objectives.
Ready for 21st Century

UBL has stepped into the 21st century with confidence. Know that the bank has been privatized and 51% share have been purchased by investors i.e. The Best Ways Group UK and YASIR ABBAS M.B.A (Finance)
33
Abu Dhabi consortium electing H.H Sheikh Nahayan Al Mubarak as Chairman UBL. UBL has geared itself to provide services, which the customers in modern banking expect from the bank. The bank has also planned to play its dynamic role in the overall development of the country. It is now well equipped with latest technologies and professional experience to face the future with determination and confidence and with its high aims and sense of direction to serve the nation with zeal and devotion.
DEVELOPMENT FINANCE
Loan provide for tractors agriculture instrument tubewell turbine, land leveling etc Tractor loans are recover within five year, on half yearly basis other agriculture instrument loans repaid within three year 25% borrower contribution the borrower can apply for loan, the borrower worth can be decide on its property If a person have10 acher land Then the patwari make its unit with some specific process these unit multiply 400 and have some value or amount then 80% of this value can obtain by borrower for this process following thing are required Procedure for Loan Apply
1. Khasra-e-girdawari:this the actual record of cultivated land 2. Register haqdaran-e-zameen :ownership of land 3. Agri credit officer (ACO)
34
4. The work of ACO is to visit the site and investigate about the borrower also visit in tehsil for legally documents for land and actual land record 5. Proposal After investigating the ACO submit a report to head office in this report the following thing or requirements are mentioned Term and condition Security support Worth of land loan amount
Recommendation
Bar on agri land:

After approval the proposal the branch entries in PASSBOOK and verify this passbook by patwari and request the patwari pleases transfer this land temporary toward bank
Agreement IB
Bank and customer agreement term and condition specify. Loan amount specify By back price Agreement date of issue and date of end Signature of customer witness signature Pass book Zeerbad certificate Mutated fard
Facility letter
35
Attach these document with form a case make and this case forward to head office If the head office approval this case then bank charge interest 10 to 12 % This mark up or interest is on daily basis
Seasonal financing:
Loan provide on seasonal crops like cotton ice factories, oil mills, agri related industry. Loan provide on different crops Sugar cane: Wheat: Rice: Potatoes: 8000 per acher 4000 to 5000 per acher 4500 to 5000 1000 to 1200
Commercial financing:
Loons provide for shops medicine sere, business etc the following requirement are necessary. Procedure: Property documents NOC: no objection certificate NEC: non encumbrance certificate Small amount estimate by bank Above 1 million CA estimator EM/%RM: property for security
In case of renewal
Application request for renewal loan Balance sheet Profit loss calculation.
36
CHAPTER NO.3 Account Department

In simple word account department performs the following functions. The daily working of all the departments is completed and compile in this department for the preparation of cash cum day book for the ultimate preparation of daily statement of affairs of the branch. In A/C department all the subsidiary ledgers are include maintenance of income and expenditure subsidiary ledgers are prepared. Generals types of statements called by RHQ and head office are prepared. Income statement and expenditure statement at the end of each month is prepared. If there is any mistake in any record it is checked and removed in A/C department.
Generally there are two types of maintaining of account: YASIR ABBAS M.B.A (Finance)
37
Journal System Voucher System
In commercial industrial institution journal system is used. In journal system entries are reported on journal books and then posted to main ledger. In banking voucher system is used and for every transaction voucher has to be prepared. Voucher preparation: Vouchers are prepared in Cash Transfer Clearing
Record books
The books used for record keeping in accounts department are: Payment book Scroll book Cashiers books Transfer book Journal ledger books
Payment book:
At the end of business all the instruments are entered in paying book. Cashier writes grand total of these instruments in words and figures signs in full on it and send it to the officer. Officer check and put initial in front of each and every entry and signed in full on grand total.
38
Scroll books It is designed for credit vouchers i.e. for the amount deposited against the issuance of TTs or DDs etc.
Receiving cashier book

Party goes to cashier and deposit the cash. Cashier takes the cash enters the voucher in receiving cashiers book signs in full on it and send it to the officer. Officer puts his initial in front of each and every entry and affix cash received stamp on it. At the close of the business officer after checking receiving cashiers book will sign in full on it.
Transfer book
Transfer book is used to keep record of that transaction in which there is no cash involvement. the amount of one cheques is transfer from one account to other account in the same bank, the account in the same bank, the account from which the cheques will be drawn is written on right page which is Dr. page and the account in which the cheques is deposited is written on left page of transfer book which is Cr. Page.
Journal ledger:
The daily transactions are entered in this ledger. The ledger has two portions: Dormant section Current section
39
Dormant section contained the accounts in which there is no transaction for a long period. While current section is for running account.
Supplementary preparation:
A/C clerk accumulate the different voucher transaction wise on a sheet and consolidates into one figure called supplementary. There are two types of supplementary. i. ii. Debit supplementary Credit supplementary
Debit supplementary is used for debit voucher expenses and credit supplementary is used for credit voucher expenses. These are of red and green color respectively. From this supplementary cash cum daybook is helpful for the preparation of statement of affairs of the day.
OPENING OF AN ACCOUNT
Requirements for Account Opening (i) Account Opening Form It is a form that contains the account number, date, title of the account introducers name and address, special instruction (if any) information about Zakat deduction and mode of delivery of checkbook etc. Then this filled form is submitted in bank, the bank admits the signatures of the applicant and verifies the introducers signatures (specimen is enclosed in Appendix) (ii) Specimen Signature Card This card contains account number, title of the account and the specimen signatures of the account holder. When this form is submitted in bank the bank officer admits the signatures of the applicant and keeps this specimen card in record (iii) Cheque Requisition Slip
40
This is a request made by the client to the bank to issue him a checkbook containing number of leaves mentioned. When this slip is submitted in bank, the bank as per instruction the account of the person is debited or the client pays the amount in cash. If the account is to be debited then party debit voucher is prepared which is actually intimation to the party that her account has been debited. But if the amount paid is in cash, then cash is debited which is actually cashiers stamp. Regardless whether the account is debited or cash is debited the account heads of Central Excise duty and Sales Tax are credited.
OPENING OF AN INDIVIDUAL ACCOUNT

Following are the requirements for opening of an individual account. 1. A photocopy of National Identity card. 2. Filled Account Opening Form 3. Three photographs if the person is not able to sign.
OPENING OF JOINT ACCOUNT

For this account in addition to above said documents national ID card of all the account opening parties is required. Also in the box of special instruction it should be clearly mentioned that one persons signatures will be enough to get it honored the check or there should be signatures of all the parties.
OPENING OF A PARTNERSHIP ACCOUNT

Along with the other document, partnership deed is also required. A partnership deed is a document that shows the nature of the business that will be carried out by the partners, number of the partners, their share. Who will run the business, what will be the profit and loss sharing ratio, what will be the initial investment of each partner, who will be the limited partner and who will maintain the account with the bank. According to bank point of view the most YASIR ABBAS M.B.A (Finance)
41
important thing is the persons name who will maintain the account with bank. National identity card of the person who will maintain the account is required.
OPENING OF AN ACCOUNT OF A SOLE PROPRIETORSHIP ACCOUNT

Along with the other documents, sole proprietorship declaration is also must. concern. In this declaration the proprietor of the concern will declare that he is the sole proprietor of the
OPENING OF AN ACCOUNT OF A PRIVATE LTD. COMPANY

If someone is interested in opening an account of a private limited company then in addition to above documents following documents are required.
BIRTH OF UBL:
On November 9, 1959, UBL was notified and included as a private schedule bank with authorized capital of Rs. 20 million; issued and paid up capital of Rs. 10 million divided into 1 million shares of Rs. 10/ each. Currently BOD and president/ CEO Mr. Amar Zafar Khan being a member of this newly formed set up manage UBL. Chairman His Highness Shaikh Nahayan Mabarak Al Nahayan and Deputy Chairman Sir Mohammed Anwar Pervez are the two supreme controllers of the banks affairs.
NUMBER OF BRANCHS:
UBL has a large network of branches, which extends to the remotest areas of the country. In December 1983, there were 1623 branches whereas in 1974 it had only 1238 branches and in October 2011 these figures show total number of 1112 branches3.
34
Muhammad Ibrar, (2010) Internship Report On UBL Chuna Wala Branch Hasil Pur
42
UBL has been very active in increasing its overseas branches network. The first foreign branches were established in London in 1963. Now UBL has branches in Bahrain, Qatar, Saudi Arabia, United Arab Emirates, Yemen Arab Republic, UK Switzerland, Egypt, Oman and The United States. These branches are playing a significant role in channeling home remittances and foreign trade of Pakistan.
SUBSIDIARIES:
UBL has four subsidiaries, namely: United National Bank Limited (UNB), UK United Bank AG (Zurich), Switzerland United Executers and trustees Company Limited United Bank Financial Services (Private) Limited
FUNCTIONS OF UBL:
UBL is a commercial bank, which transacts the business of banking in accordance with the provisions of BCO, 1962. Section 7 of the Act authorizes banks to engage in the prescribed form of business. In the light of this section UBLs functions can be categorized as under: Agency services General Utility Services Underwriting of loans raised by the Government or public bodies and trading by corporations etc. Providing specialized services to customers, and Hajj-related services. YASIR ABBAS M.B.A (Finance)
43
PRODUCTS AND SERVICES
UBL BUSINESSLINE UBL CASHLINE UBL CREDIT CARD UBL ADDRESS UBL DRIVE AGRICULTURAL SMALL BUSINESS
SERVICES NRP SERVICES UBL CLICK N BANK UBL CLICK N REMIT UBL TEZRAFTAAR HAMRAH UBL WESTERN UNION UBL CREDIT CARD UBL E-STATEMENT NET BANKING UBL WALLET UBL ONLINE
44
DEPOSITS
Foreign Currency Savings Foreign Currency Term Deposits Receipts Free Insurance Coverage for all UBL Account Holders PLS Saving Account PLS Regular Term Deposits Receipts Special Notice Deposits Receipts UBL Basic Banking Account - BBA UBL Business Partner UBL Profit UBL UniFlex Unclaimed Deposit Unisaver
ROLE OF UBL BANKING SECTOR:

The impressive growth and development, which UBL achieve, present it undoubtedly the most dynamic and progressive. In a very shorter period of time it became one of the leading banks overtaking several other older and its competitor banks4. The major contributions5 the bank ahs made are enlisted below: Record setting performance and commitment to serve the customers
4 5
45
Personalized service and dynamic approach Catalyst of changes Professional management Modern banking policy Human resource development Small loans (or) micro credits Pacesetter in economic research established in 1967, department for economic research. Utility bills collection Credit cards (unicard-1970) Travelers Cheques (Humarah-1971)
COMPUTERIZATION OF UBL:
UBL has taken leading start in the introduction of computers in (1966-1968) in important cities. Its three computers centers Rawalpindi, Lahore and Karachi are equipped with the modern mainframe computers of various capacities. Every branch has been decorated with microcomputers. The use of computers has enabled the bank to save time and efforts raise efficiency and deliver the goods speedily to its customers. This has also allowed the bank to maintain its leadership within the industry. YASIR ABBAS M.B.A (Finance)
46
UBL - On line System7:

Themes of this service is Access any time, anywhere, any device which symbolizes comfort, convince and connectivity. UB-Online a web based service that can be accessed through multiple media link like, (i) PC via internet (00) Mobile phone with WAP or free SMS) (iii) Personal Digital (iv) assistants and (v) Plain telephone o Accounts statement & electronic data interchange o Graphical analysis o Alerts service /facility, search facility and activity long Money Gram facility: The bank has recently employed money gram service system, which can affect money transfers within minutes. Similarly the system used for local transfer of money transactions is called uni-remote. Hajj service: Keeping to its tradition is august 1982 provided electronic facility at its Hajj booth and has installed now modern computers at designated branches (Hajis) and increasing efficiency. This facility has reduced the service time to less than six minutes per Haji compare to about half-an-hour to 45 minutes per Haji earlier.
74
47
Chart 2.1 Senior Management of UBL MANAGEMENT OF UBL: Main Offices:

Main offices of UBL in Pakistan are listed below: Islamabad Karachi Hyderabad Lahore Multan Faisalabad Sargodha Sahiwal Jehlum Gujranwala Peshawar Mardan Quetta Azad Kashmir
48
Sheikh Nahyan Mabarak Nahayan chairman Sir Mohammad Anwar Pervez Deputy Chairman Amar Zafar Khan President M.A Manna Deputy CEO Nauman Hussain Director Operations & Utilities Mansoor M. Khan Head Corporate Banking Group Shaharyar Ahmed Head Investment Banking group Aman Aziz Siddique Shahid Waqar Mehmood Head Commercial bank Risha Moheyuddin Global Treasurer Khalid Munawar-ud-din Head Credit Policy Supervision Muhammad Ejazuddin Audit Chief Mehboob A.Khan Rukhasana Asghar Global Head Human Resources Ameer Karachiwala Chief financial Office/HCA
Head International Operations (Dubai) Ali sameer Chief SAM (domestic)
49
FUNCTION HIERARCHY: Organizational Hierarchy of UBL

Chairman
Deputy Chairman Board of Directors Executive Committee Managing Director SEVP EVP VP
Officer Grade-I
Non Clerical Staff Clerical Staff Officer Grade-II Officer Grade-III
BOARD OF DIRECTORS
50
Board of Directors are the owners of the bank and governs the Banks Affairs, which currently consists of President Chief Executive Officer & seven directors. The CEO has an overall responsibility for the strategic direction, government relations and to manage the portfolio of business and its functions.
EXECUTIVE COMMITTEE The Head of the Executive Committee is the President of UBL (Mr. Atif R. Bokhari).
Treasury
The main purpose of the treasury department of any company is to maintain the liquidity for that company. Same is the case with Banking Industry as well. The treasury department has to manage the buffer stock (in terms of cash) of the bank and they have to maintain the liquidity for giving Advances to their customers.
Corporate Banking
The main objective of the Corporate Banking is to look after the special customers who give very much big amount of deposits or take higher amounts of Advances. Because a Hub Branch can give the Advances up to Rs. 200 Million. And the party who needs a loan more than Rs. 200 M they have to contact to the Corporate Branch of the UBL. So the cases of Advances more than Rs. 200 M goes into the Corporate Branches.
51
MISSION OF CORPORATE BANKING

Our mission is to serve all your corporate needs and ensure your full satisfaction through product innovation, personalized banking, and top notch service.
The (Corporate Banking Group) CBG focuses on attracting and servicing large portfolio customers. UBL forte is providing exemplary customer service using the "Single Window" concept and product superiority. The Relationship Management team manned by highly qualified individuals from the industry has steadily expanded our customer base and continues to enhance banks cordial relations with its esteemed clients. Despite the sluggish economic growth in recent years, UBL outperformed all the other local banks in the corporate banking sector primarily due to CBG's emphasis on establishing and enhancing relationships with foreign/local blue chip and middle market customers thereby capturing significant market share.
Investment
This department supports the Corporate Deptt. When a company wants to install a new project and require the finance from the bank then it is the responsibility of Investment Deptt. That they analyze the targets of the project and success or failure of the project. If it is feasible to loan that party then they pass the loan otherwise not. This is called the Project Finance. Other responsibilities are offering IPOs, TFCs and following services are performed by this Deptt. Now UBL is offering its IPOs (Initial Public Offerings) in June On behalf of the customers all the banks also make an investment in different companies and industries. And banks receive nominal charge from the customers. YASIR ABBAS M.B.A (Finance)
52
Services
UBL (Investment Banking Group) IBG offers full spectrum of services
4-HUMAN RESOURCE DPARTMENT
Human Resource Department:

This Deptt. does all the activities related to HR and Personnel Management like Job Analysis, Job Design, Job Description, Job Redesign, Job Specification, Recruitment (is the process of finding and attracting capable applicants for employment through Advertising, Employee Referrals, Private Placement Agencies etc.), Selection by written tests and interviews, Orientation, Training, Career Planning, Performance Appraisal (employee performance and accountability), Compensation and Protection, Union-Management Relations etc. It also involves in the following activities: Transfers & Postings Scrutinizing bills (Hospital Bill) Staff Deceased cases & its Correspondence Retired employees Cases & its correspondence YASIR ABBAS M.B.A (Finance)
53
All staff legal cases & Court at Multan & Lahore. Retrenchment cases Complaints and its correspondence Fraud & Forgery cases Mandatory Leaves and its observance. Staff leaves and other related staff matters Goals of all Staff Monthly Statement of Staff Disciplinary Action Cases
The HRM department also gives the facility of LPR to their employees.
Leaves Prior to Retirement (LPR)

These are the leaves at the end of the job period (near to retirement) with pay. If some employee has the leaves in credit then he or she can avail that leaves at the end of his or her job. But maximum limit of LPR is one year. And after these leaves he or she will be automatically retired. But if some employee the leaves in credit less than one year, let suppose of nine months, then he or she can avail only that credited leaves (nine month) only but with pay in the facility of LPR.
54
IT Department
Information Technology Deptt. is related with all computer activities like to manage the Central Data Base (CDB) which is placed in Head Office of UBL Karachi in all the daily transactions in all the branches of the country are up-dated on daily basis. This Deptt. also makes the web site new news to web site. The daily transmission process of data is as following: A spoke branch up-date the daily transactions through computer networking to its Central Branch. Suppose all the withdrawing, deposits, remittances, collection and clearing data of the day is sent to the Central Branch. And when the Central Branch receives the data from all the spokes branches under it then that Central Branch up-date the data of all the spokes branches and its own to the Central Data Base (CDB) at Head Office. Corporate Branches and Regional Head Quarters (RHQs) up-date the daily data directly to the Head Office.
Audit and Inspection

The responsibility of this department is to audit and inspect the operations of the branches. Whether the operations are compliance by the branches in a right way or not. The CCD (Control and Compliance Department) comes under this department. I will discuss about the CCD in the branch level functions.
Consumer Banking
55
You as an individual can gain and benefit the most through UBL Consumer Banking. In UBL you get friendly, efficient and attentive personalized banking services - a unique banking relationship experienced by each UBL client. You can utilize the following services:

UBL Credit Card UBL Businessline UBL Cashline UBL Address UBL Drive PLS Term Deposits PLS Savings Accounts Uni-Saver Remittances
Learning as an Internee from the Management Side:
Customer Service Banking:

You as an individual can gain and benefit the most through UBL Consumer Banking. In UBL you get friendly, efficient and attentive personalized banking services - a unique banking relationship experienced by each UBL client. You can utilize the following services:
UBL Credit Card
56
UBL Businessline UBL Cashline UBL Address PLS Term Deposits PLS Savings Accounts Uni-Saver
Funds Transfer:
Transfer of money or equivalent to money from one branch to another branch of the same bank is called remittance. Now it has become an easier and safer method both for the client and banker to transfer their money from one branch to another within the city or Outside City. MODE OF REMITTANCES United bank limited, uses following types for transfers of money: 1) Demand Draft (DD) 2) Pay Order (PO) 3) Mail Transfer (MT) 4) Telegraphic Transfer (TT)
Cash Department:
This is sensitive department of the branch. No other person is allowed to enter in the premises of cash department. As obvious from name that this department deals in cash deposits and payments. Cash department is performing its functions/duties manually. For payments and receipts, it has to maintain certain sheets, books of accounts and various ledgers, which are as under: YASIR ABBAS M.B.A (Finance)
57
1) Cash received voucher sheet 2) Cash paid voucher sheet 3) Token register 4) Transaction ledger 5) Pay-In-Slip record 6) Cheque book record 7) Cash balance book
58
Structure of the Department/s
Employees working in Departments:

Employees working in different departments of UBL Attock City Branch are listed below according to their departments:
Cash Department:
Mr. Iqbal Khattak Ms. Sumaira Naeem
Funds Transfer Department:

Mr. Irshad Farooqi
Customer Service Department:

Mr. Abid Farooqi Mr. Ehtesham Shabir
Product Lines:
Consumer Banking
59
You as an individual can gain and benefit the most through UBL Consumer Banking. In UBL you get friendly, efficient and attentive personalized banking services - a unique banking relationship experienced by each UBL client. You can utilize the following services.
UBL Credit Card Welcome to the world of UBL Credit Cards the most exciting and vibrant credit card brand in Pakistan. UBL offers you a range of innovative and exciting cards that is not only powered by the security of chip but also enable you to personalize it any way you want
Other Services:
UBL Net Banking UBL e-statement
UBL Net Banking: UBL Net Banking is an internet banking portal offering a simple, convenient and secure method of accessing bank accounts on the internet. Its never being so easy to access and manage your finances in a secure real-time, online environment
UBL e-statement: YASIR ABBAS M.B.A (Finance)
60
UBL is pleased to announce the launch of the UBL e-statement facility which it easier for you to get your statement of accounts and automated transactional debit/credit alerts right into you inbox.
Commercial Banking
To stand tall among the worlds leading banks, UBL has developed a YOU attitude to understand its customers well. For small and middle size investors, UBL has so much to offer, so much to deliver. Walk in to any nearest branch of UBL, enter the world class bank and let us serve you with what you need.
Investment and Saving Accounts: UBL offers you the most beneficial and secured financial investment and saving options. You can choose from the following list of accounts anything that serve your needs best.
CHAPTER NO.5
DEPOSITE DEPARTEMNT
As per the definition of Banking under see 5(b) of BCO 1992 one of the main functions of a bank is to accept deposit. Deposits are the backbone of any bank; other functions of the bank primarily depend upon the type and size of deposits.
Function perfumed by cash and deposit department in UBLChuna Wala Branch Chuna Wala Branch accepts deposits under the following three accounts. i. Current account YASIR ABBAS M.B.A (Finance)
61
ii. iii.
PLS Saving account Terms Deposits
Opening of Account: To open an account in UBL the customer will have to fill an account opening form in front of bank officer. He has to sign in all required places in front of the officer. Documents Required in Account Opening: i. ii. iii. iv. v. vi. N.I.C Copy. Account opening form (provided by bank) Two photograph (in case of illiterate person) Specimen Signature card (Provided By Bank) Cheque Requisition Form Introduction of Account.
Types of Account:
a. Individual Account In this account a single customer operates the account. The banker will run the account according to the rules, but if the customer gives special instructions the Bank will have to follow it. b. Joint account: In this type of account two or more than two persons will open the account. The account will be operated by one account holder in case of (either of the survival). If the instructions are not given, all the account holders will have to sign the check.
NATURE OF ACCOUNTS IN UBL NOWSHEREA

A) Current Account: These are non-profitable demand accounts. The account can be opened with minimum amount of rupees 1000/-. These account are usually maintained for business purpose. Due to enormous YASIR ABBAS M.B.A (Finance)
62
competition UBL has introduced daily profit current account for corporate clients called (UNISEVER) minimum balance required is Rs. 100,000/-. If minimum balance requirement is not met, bank is authorized to recover predetermined charges. B) PLS Saving Account These accounts were intended with the aim of encouraging thrift among people. These accounts can be opened either in Pakistani rupees or in few major currencies of the world. Bank offers (4%- 6%) return on these accounts. The basic feature is the profit and loss sharing as according to non-interest based banking system. These accounts can be opened in the name of; individuals, joint names, trust accounts, charitable organizations. Unlike current accounts, Zakat is applicable on local currency saving accounts. Minors accounts can be opened on the condition that their guardians shall operate these accounts.
C) Term Deposits: Term deposits are also called fixed deposits. These can be with drawn after a specified period of time. Interest is paid to the depositor on all fixed or term deposits. The rate of return varies with the duration for which the amount is kept with bank There are two types of term deposits.
STDRS Special Term Deposit Receipt (local currency): Special Term Deposit Receipts are issued for different periods of maturity ranging from one month to 5 years, having attractive returns. There is no limit on denominations. 3.2.3.2 NTDRs Notice Term Deposit Receipt (local currency): These are term deposit with special features that these can be withdrawn any time but after giving a predetermined and pre agreed early notice.
REMITANCES DEPARTEMNT:
63
Current business trends demand fast movement from one geo-graphic end to another. Latest technology and telecom data transmission has made it possible to make such transactions with in minutes. UBL Chuna Wala Remittances Department performs following functions. Demand draft (D.D) D.D is a negotiable instrument issued by branch of the bank drawn on other branch of the same bank.
A) Procedure For D.D.:
Purchaser is asked to fill in an application form duly singed by applicant. Three things should be maintained in the form. Name of Payee Place of payment Amount of D.D Commission is charged on D.D as bank income. The applicant is asked to deposit the cash specified on the application form to the teller. After depositing cash the remittances incharge prepare a D.D. That is singed by two officers must having power of attorney. Bank also provides this facility to general public who dont have account in UBL. They will have to submit a N.I.C copy along with D.D application form. Telegraphic transfer (T.T): Transfer of funds to another branch of the same bank with the help of test numbers. If the test number agrees the bank make payment to the party. A) Procedure for T.T: The procedure for T.T is same as D.D. But in D.D it is given on a printed-paper and singed by two officers but, in T.T, only test number is given to the customer. Mail Transfer (MT) When the money is not required immediately, the remittances can also be made by MT. Here the selling officer of the bank sends instructions in writing by mail to the paying bank for the YASIR ABBAS M.B.A (Finance)
64
payment of a specified amount of money. The payment under transfer is made by debiting the buyers account at the sending office and crediting it the recipients account at the paying bank. UBL takes mail charges from the applicant where no excise duty is charged. Pay Orders: Pay order is banker cheque issued favoring a named beneficiary. The issuance bank is discharged by payment in due course. Application for the PO stamped and the customers account balance is checked or cash received for the amount PO and other charges. Pay Order leaf is typed and crossed if required and signed by two authorized persons. Thereafter it is delivered to the customer. PO can be cancelled at original purchasers request in writing and surrender the instrument, which then marked canceled along with other documents and prior entries. Supper Traveler Cheques: UBL has launched R.T.C Brand named Hamrah in November 1996. These are issued to applicants with varied denominations without excise duty and commission. When issued HO account is credited and on encashment the same account is debited. RTCs lost cases are communicated to HO and client is either repaid or new RTCs are issued to him/her.
CREDIT DEPARTMENT OF UBL UBL Credit Policy:

Credits operations are undertaken in accordance to banks credit policy. The policy strictly prohibits violation of SBP/Local central banks rules and suggest financing of self liquidating, cash flow supported and well collateralized transactions, which equate the principle of lending (safety, liquidity, dispersal, remunerations and suitability).
65
CREDIT DEPARTMENT OF UBL Chuna Wala

Facilities offered by UBL Chuna Wala Running Finance (for one year) Demand Finance (3to 5 years) Procedure for Financing from UBL When a party comes for financing, banker will ask the following questions. Purpose: In this the party mentions the purpose; they want to apply for the finances. No lending is done with out purpose. Business The party must have some specific running business i.e. general merchandise, construction business etc. The second question arises of the cash flow that how much flow is generated by the party from the current business. Security: The bank will secure itself against the lending. There can be two type of security. Commercial Residential The bank prefers commercial security. Relationship Manager (RM) is mainly responsible for the relationship between the bank and party. He acts like a bridge between the two. In the first instance the party would prepare the following property documents. AKS Shajarah Naqsha Tasveeri Approved Building Plan Tresh fard Intaqal Naqal
66
The party is asked to contact any valuator on the panel of UBL. ICM&L and Tajak Builder are on the panel of UBL Chuna Wala. The valuator will visit the site and set market value and FSV of the said property. He prepare report of at least three pages. These document sent for one page legal opinion to any layer on the panel of UBL. Having clear legal opinion RM start preparing credit Approval (CA). The documents are singed by the RM & AM and then forwarded to UBL RHQ in Peshawar. Here SRM examines the CA if he found some exception he will send it back to the respective Rm. RM rectifies the acceptation and send it back to SRM. SRM studied and pass it to credit officer. He has three hours of time to study the CA and if found correct then he pass it to another credit officer. After his examination the CA is passed on to the credit risk manager. He checks the CA and after signing it sent to CAD. He forwards the CA to SCO. Whose office is at UBL RUCO at Lahore, after his signature the C.A is sent back to RCAD. RCAD make a check less list and asked the RM to contact the party to complete the said documents they are. Letter of continuity Personal Guarantee Letter of hypothecation of stock D.P Note Mortgage Deed NIC of executants and witness Stock report Insurance policy Party profile After completion of charge document RM send it to RCAD when they found it correct, they issues DAC. A copy of DAC is sent to RM and NICF account is opened and debit transaction starts.
67
CLEARING OF BILLS:
General: Bank can make payments of only open Cheques on the counter payment. Payment of cross Cheques cannot be made on counter its payment is possible through collecting bankers. The functions of clearing department are divided into two main classes. Inter Branch Transaction Inter Bank Transaction Procedure of Clearance of Cross (Cheques): Whenever bank receives a Cheque of other bank from the client he cannot make payment on the counter. The first job banker has to perform is to put a special crossing across the face of cheque. By special crossing cheque is secured. If it is stolen the paying banker would not suffer because of non-endorsement. On the back of the cheque the stamp is made of payee account will by credited on realization. It is signed by authorized person. Along with the cross cheque the customer has to fill the deposit slip. The half part of slip is given back to the customer. after the special crossing and is necessary endorsement the banker write the amount along with cheque number on paper and attach with each slip. Then again on he smile paper the amount of all the Cheques along with the bank names are added and attached to cheque presented for clearing, and advice is also attached with the cheque presented for clearing. The following entry is passed on sending the cheque for clearing. Bill lodged for clearing . Dr Bill for collection . Cr The Cheques are sent on the same day for clearing. The bank receives it on other day. The paying bank receives the receipt and the amount is credited in the respective account. The paying banker passed the following. Bill for realization. . Dr Bill lodged. . Cr YASIR ABBAS M.B.A (Finance)
68
The other entry passed its Dr. HQ account and Cr Party account. I B C: It means Inter Branch Transaction when UBL received a Cheque a drawn on the customers of his branch; first they will Cheque the amount in the account on which Cheque is drawn. Of the required amount is available in the account they will match the signature on the Cheque along with their SS card. If all the requirement are completed the bank will send an IBCA to the bank from which Cheque is sent
L B C: LBC means local branch Cheques received for collection. UBL Chuna Wala, received Cheques from their spoke braches as well as from other UBL branches of the country, drawn of any other bank in Chuna Wala. They send the Cheque to responding bank and after clearing the Cheque through clearing houses (which is NBP) in Chuna Wala. They send LBC advised to the bank from which the Cheque was received. The following entry is passed after sending LBCA. NBP a/c . Dr Ho a/c. Cr OBC When the bank receives the Cheque from its customer or from any other spoke branch drawn on any other bank of any other city. They sent the Cheque to the UBL main branch of that city, after receiving OBCA the bank will passed the following entry. In case of his own customers. Ho a/c. Dr Customer a/c. Cr In case of spoke branch YASIR ABBAS M.B.A (Finance)
69
Ho a/c. Dr Spoke Branch a/c. Cr
CHAPTER NO.6 INTRODUCTION

These section efforts have been made to cover all relevant aspects of the financial performance of UBL. Overtime comparison and Common Size analysis are carried out with the view to extract concrete conclusion to describe financial standing and performance of the bank.
SIGNIFICANT ACCOUNTING POLICIES

Revenue Recognition Returns on advances and investments are recorded on accrual basis. Debts securities purchased at premium or discount are amortized over their maturity periods. Dividend income is recognized on accrual basis of declaration of dividend up to the year-end. Returns on classified assets are recorded on receipt basis. ccrual basis.
Advances
These items are stated net of provisions against non-performing loans as per SBP PR IIIV.
70
Investments:
UBL classify its investments as stated below; a) Held for trading b) Held to maturity c) Available for sale-other than the above two types In the light SBP regulations quoted securities are shown at market values and any changes arising are taken to profit and loss account only upon actual realization. Unquoted securities are valued at the lower of cost and break up value and difference is charged to income. Provisions for diminution in the values are made after permanent impairment, if any.
Fixed Assets and Depreciation

a. Owned Such assets are showed at their cost or revalued amount less accumulated depreciation and impairment loss, if any. No depreciation is charged on freehold land. During the year, amendment related to section 235 of the Companies Ordinance 1984, surplus on revaluation can now be reversed to the extent of incremental depreciation charged. As a result such differentials are now transferred to retained earnings/accumulated losses as per the Securities and Exchange Commission of Pakistans (SECP) clarifications. Gains and losses on sale of fixed assets are included in income currently, except that the related surplus on revaluation of fixed assets is transferred directly to retained earnings/accumulated losses. b. Leased Assets under financial leases are stated at cost. The outstanding obligations are shown as a liability. The finance charges are allocated to accounting periods in a manner so as to provide a constant periodic rate of charge on the outstanding liability.
Taxation
71
Current Provision is based on the taxable income for the year or minimum tax computed on the basis of turnover, whichever is higher.
Deferred
The bank accounts for deferred taxation on major timing differences, using the liability method in respect of those timing differences, which may reverse in the foreseeable future. Deferred tax debits are, however, recognized only if there is reasonable expectation of realization of the amount. c. Foreign Currencies: Balances are translated into rupees at the applicable rate of exchange prevailing at the balance sheet date or where applicable at contractual rates. During year transactions are converted into Pak rupees applying the exchange rate at the date of respective transactions. Gains and losses are included in income currently. d. Deferred Cost and Lease Payments These are amortized over a period of five years. Rental obligations under operating leases are charged to profit and loss account as incurred.
RISK MANAGEMENT
The bank is primarily subject to interest rate, credit and currency risks. The bank has designated and implemented a frame work of controls to identify, monitor and manage these risks are as follow;
Currency Risk Management

For the purpose of efficient management of this risk, the group enters into ready, spot, forward and swap transactions in the inter bank market and with the State Bank of Pakistan in order to kedge its assets and liabilities and cover its foreign exchange position.
72
Credit Risk Management

Out of the total assets of Rs.183, 139.879M assets subject to credit risk amounted to Rs.178; 958.323M. The banks major credit risk is concentrated in textile sector. To manage it the bank applies credit limits to its customers and obtains collaterals. Credit risk in the portfolio is monitored by the CRM who formulate appropriated policies and procedures to ensure building and maintaining quality credits and efficient credit process. The banks financial institution risk management unit assesses, recommends financial institutions and also controls cross border/country risk.
Interest rate Risk Management

The group is mainly exposed to mark up interest rate risk on its deposit liabilities and its loans and advances and investment portfolios. The asset liability committee of the bank reviews the portfolio of the bank to ensure that risk is managed within acceptable limits. Most of the loans and advances portfolio comprises of working capital, which are reprised on a periodical basis. The groups interest is limited since the majority of customers deposits are retrospectively reprised on a six monthly basis due to the profit and loss sharing principles.
INVESTMENT PORTFOLIO
UBL employs diversified investment portfolio. The bank invests its funds both in risk free assets as well as in risky assets. This enables it to minimize its unsystematic risk to a great extent. UBL values its security holding on market value, in accordance with the guidelines given in SBP circular. Any unrealized surplus/deficit arising on such revaluation is taken directly to Surplus/Deficit on revaluation of securities in the balance sheet. Where an active market is
73
not available, securities continue to be stated at cost. Provision for diminution in the value of these securities is made after considering permanent impairment, if any, in their value. Where securities are sold subject to commitment to repurchase them at a predetermined price, they remain on the balance sheet and a liability is recorded in respect of the consideration received in Borrowing from Bank or Deposits as appropriate. Conversely, securities purchased under analogous commitments to resell are not recognized on the balance sheet and consideration paid is record in lending to financial institutions or loans and advances as appropriate.
PROFITABILITY
The operating profit before provisions and write offs increased by 80%, where as the profit before tax and extraordinary items increased by 62% as compared to last year. The increase is mainly attributed to 14% increase in the net revenue from funds (NRFF), 10% increase in fee and brokerage income and 75% reduction inn write offs/provisions for non-performing assets as compared to year 2010. Performing advances increased by Rs. 2 billion as compared to 2010 while NPAs decreased by 53%. Presently NPA constitutes 7.4% as compared to 14.6% in 2010 of the total loan portfolio. The branches reduced to 1077 from 1112. The bank handled over Rs. 96 billion of import and export business during the year, an increase of 24.7% as compared to last year.
FINANCIAL ANALYSIS
Financial statements are the principal means of reporting the financial condition and results of operations of a business entity. These statements are meant to assist various parties in decision making who are interested in the activities of the business. These statements are means to an end of helping stakeholders in decision-making. To improve the quality of decision making proper analysis of these statements helps a lot. Financial statements analysis helps in YASIR ABBAS M.B.A (Finance)
74
determining the financial conditions at any particular points in time and effectiveness of operations of a firm during a specific period. The various stakeholders of business are interested in the analysis of financials statements. But the focus of interest of all is not the same. For example, creditors and credit reporting agencies are interested in finding out the credit worthiness of the firm to which they have extended credit or intend to extend credit. Short term creditors are interested in short term liquidity of the business and long term creditors are interested in the long term cash flow which the firm can generate over the long period of time. Investors are interested in the firms ability to sustain profitability over a period of time. Government agencies analyze financial data for tax purposes. The internal users of financial statements like management also analyze financial data for planning and control.
COMMON SIZE ANALYSIS OF BALANCE SHEET

Common size analysis is an analysis of financial statements where the total assets divide all balance sheet items of asset side and all credit side balances divided by all liability items, and all income statement items are divided by net sales/revenues. Common size analyses are extremely helpful to highlight changes over the time in financial performance and financial conditions of the company. The table shows common size analysis of the balance sheets for the years 2011, 2010 & 2011. The common size analysis given in the table shows that there have been improvements in the current assets in 2011 as compared to 2010, about 17%. But there has been decrease in fixed assets of about 16%. The main reason for this change is increase in short term investment showing a constant increase as a percentage to total assets. This implies that the bank is concentrating now more on non-interest income and the interest rates are constantly falling. Short-term advances have shown a significant change of 15% whereas total advances show a total change of only 6.3%. This is very significant to note that major decrease has occurred in long-term performing and non-performing advances. YASIR ABBAS M.B.A (Finance)
75
There is decrease in long term assets of about 17% which mainly cause the decrease in long term advances which are about 13% and 6% decrease in long term investment. On the liability side the total current liability has shown change of about 4%. The main reason for which is increase in current deposits, which are about 6%. The long-term liability of the organization is also decreased by 4%.
Common size analysis of consolidated Balance Sheet

assets Cash/Bal. With Banks lending to F.Is Investment (ST) Advances-Performing (ST) Other Assets Total Current Assets Investment (LT) Advances-Performing (LT) Advances-Non performing (LT) Operating fixed Assets Deferred Tax Assets Total L.T Assets Total Assets Liabilities B/Payables Borrowings ST Deposits - Current Lease and Others Total Current Liabilities Fixed Deposits Other Long term Liabilities Total LT Liabilities Total Liability Shareholder's Equity Share Capital Reserves Accumulated Losses/Profits Minority Interest Surplus on revaluation Total 2011 3609108 4370006 9190430 39489369 8641263 97782157 19388131 28477494 11813855 2864018 8297500 70840998 168623155 1540592 4004130 102568752 8838842 116952316 38747422 21264831 49219400 166171716 Rs in '000 2010 70463707 3627557 33883311 43632117 2641471 118177074 33623058 26423058 5739798 2831534 5026459 73643958 191821032 1847025 174533 118167469 9986608 130175635 43998916 5212755 49211671 179387306 2011 35591280 19050791 29580252 89292490 3509351 177024164 25007413 10312297 3671991 3884990 5486357 48363048 225387212 2991269 174533 152580240 5933743 161679785 37252204 10883720 48135924 209815709 Common size (%) 2011 2010 21.5 17.93 2.6 1.89 5.5 17.66 23.4 22.75 5.1 1.38 58 61.61 11.5 17.53 16.89 13.77 7.01 2.99 1.7 1.48 4.92 2.62 42 38.39 100 100 0.91 2.37 60.83 5.24 69.36 22.98 6.21 29.19 98.55 13.33 2.35 -16.18 0.69 1.26 1.45 0.96 0.09 61.6 5.2 67.86 22.94 2.72 25.65 93.52 2.7 2.22 -0.38 0.66 1.27 6.48 2011 15.79 8.45 13.12 39.61 1.55 78.54 11.09 4.57 1.62 1.72 2.43 21.45 100 1.32 0.07 67.69 2.63 71.73 16.52 4.82 21.35 93.09 2.3 2.09 0.2 0.62 1.69 6.9
22481680 5180000 5180000 3960453 4258947 4712569 -27282709 -722387 454403 1168264 1271700 1412932 2123751 2445466 3811599 24541439 12433726 15571503
76
COMMON SIZE ANALYSIS OF INCOME STATEMENT

The common size analysis of income statement is given in the table. Which shows that the UBL has been able to control its interest or mark up expense? As a result of decrease in mark up expense as a percentage of total revenues the gross profit margin has shown a trend of continuous increase. The increasing G/P Margin shows efficiency of the bank in controlling cost of sales (Markup expense) and better strategy of pricing, products and services. The provision for non-performing loans has a decreasing trend making no provision for nonperforming loans and diminution in value of investment, which increases the profit of current year. The reduction in provision is a good sign, which shows that the bank is recovering its disbursed advances. It shows the good credit management of the bank. There is a great increase in non-markup income, which is about 23%. Among its individual components investment income has shown a large increase as a percentage of sales. Non markup expenses also show a rising trend in absolute amount though the common size in percentages has shown a mixed trend due to the changes in revenue figures. The nonperforming expanses also increased to about 25%, which is a very high percentage, but the other aspect of this is that it increased the efficiency and credit management of the staff. Like gross profit the net profit margin before tax has also increased with 24% rate. The extraordinary item expanse has not occurred in 2011 that caused a slight increase in the net income. The tax expanse is increased about 7% because of the increase in profit. Loss brought forward from previous year is reduced by 14%. The common size analysis of the UBL is clearly showing that the bank has shown a lot of improvement in its performance. The organization shows profit for the first time in the last 5
77
years which is a positive sign and it will build up the moral of the employees by which they can work more effectively and efficiently increasing the performance of the bank.
Common size analysis of consolidated Income Statement

Rs in Millions ITEMS Mark up revenue mark up expense gross profit provisions and B/Debts Net Mark up Income Non Mark up Return Commission & Brokerage Dividends/Exchange and Others Total Non Mark up Income Total Income Non Mark Up Expense Administrative Other Provision and Charges Total non mark up Expenses Profit Before Extraordinary Items Extraordinary Items Profits before tax Taxation Profit/Loss after tax Share of Minority Interest Accumulated Loss Brought Frd. Adjustment against sh. Capital Appropriation and Transfers Surplus on revaluation of Assets Transfer to Statutory Reserve Accumulated Loss Brought Frd. 0 2 27283 238 332 722 527 454 0 0.02 237.9 2.1 2.91 16.34 0 5.68 4.9 4669 632 5301 1472 -7200 -5728 1739 -7467 6 19821 0 5879 51 5930 2756 25 2781 1319 1462 10 27283 25202 6639 556 7197 4521 0 4521 1704 2818 21 722 40.71 5.15 46.22 12.84 62.78 49.95 15.16 65.11 0.06 172.2 0 51.64 0.44 52.08 24.2 0.21 24.44 11.59 12.84 0.09 210.64 221.36 48.77 18.38 30.39 0.22 7.78 0 71.62 6 77.64 48.77 1097 1818 2915 6773 2010 1514 3522 8686 2142 2803 4945 11718 9.57 15.85 25.42 59 17.63 13.3 30.94 76.2 23.1 30.24 53.34 126.42 2011 11468 6347 5121 1263 3858 2010 11385 5476 5909 746 5163 2011 9269 1931 7338 564 6773 Common size (%) 2011 100 55.35 44.65 11.02 33.64 2010 100 48.09 51.9 6.55 45.34 2011 100 20.83 79.89 6.08 73.07
FINANCIAL RATIO ANALYSIS

78
The user of financial statements finds it helpful to calculate ratios when they interpret companys financial statements. A financial ratio is simply one quantity divided by another. Ratios focus on special relationship between two items of balance sheet, income statement or one from each. Ratios make it easier to understand a specific relationship between various items of financial statements then looking simply at the raw numbers themselves. The number of financial ratios that might be created is virtually limitless, but there are certain basic ratios that are frequently used, these ratios can be placed into six different classes. Liquidity Ratio Asset Turnover Ratio Leverage Ratios Coverage Ratios Profitability Ratios Market Value Ratios The calculation and interpretation of these ratios of financial statements of UBL are as follows.
Financial Ratio analysis

YEARS Current Ratio Asset Turnover Debt to Asset Debt to Equity Coverage Ratio Gross Profit Margin Net Profit Margin Return On Investment Return On Equity Advances to Deposit Investment to Deposit Cash Ratio 2011 0.84 0.07 0.99 14.54 0.1 44.65% -65.12% -4.43% -887.99% 56.46% 20.22% 9.59% 2010 0.91 0.06 0.94 14.4 1.15 52.50% 12.69% 0.76% 16.78% 46.74% 41.63% 9.23% 2011FORMULA 1.15Current Assets / Current Liabilities 0.04Markup Revenue / Total Assets 0.93Total Debt / Total Assets 13.47Total Equity / Total Assets 3.34EBIT / Interest Expense 79%Gross Profit / Revenue * 100 30%Net Profit / Revenue * 100 1.24%Net Profit / Total Assets * 100 18%Net Profit / Total Equity * 100 45%Advances / Deposits * 100 28%Investment / Deposits * 100 28%Cash / Current Liabilities * 100
CURRENT RATIO:
79
UBLs current ratio is increasing over the time. Higher the current ratio higher the ability to meet the short-term obligations as they come due. The UBLs current ratio is increased by 0.18% as compared to 2010. this in turn decreases the risk of insolvency. The change is occurring due to increase in short term investment and decrease in short term borrowings.
ASSETS TURNOVER:
This shows revenue generated per rupee investment in total assets. UBLs assets turnover ratio has shown a little decrease. This is because of increase in total assets with proportionate increase in revenue. Banks have relatively low ATR capital, as they are selective in advancing loans and generating smaller sales.
DEBT TO ASSET RATIO:

The analysis of total debt to assets ratio, there has been decrease of one percent as compared to 2010 and 6% to 2011. In 2011 every rupee one of assets was being financed by rupees 0.098 or debt and in 2010 it is 0.94 while in 2011 it is reduced to 0.93 worth of debt per rupee of asset. Although the decrease is not large enough but it is a good sign for banks creditors. The decrease may be attributed to the substantial decrease in borrowings from financial institutions but the affect was weakened by an increase in bills payable and other liabilities.
DEBT TO EQUITY:
This ratio measures how the company is leveraging its debt against the capital employed by its shareholders. Analysis of debt to equity ratio indicates that the current position for the debt to equity is that for every one rupee in equity provided by the shareholders the bank has Rs. 13.5 as a debt. This shows that the bank is heavily relying on debt financing. The reason for huge difference stated in the table is because of losses occurred in 2011 and 2010. YASIR ABBAS M.B.A (Finance)
80
COVERAGE RATIO:
This ratio shows the number of times a company can cover or meet its financial charges or obligations. One of the most commonly used ratios is the interest coverage ratio that measures the number of times the income is available to pay interest charges. The UBL interest coverage ratio has shown significant improvement in these three years. The ratio is increased from 0.10 to 3.34.
GROSS PROFIT MARGIN:

Gross profit margin is the difference between the revenue and cost of goods sold. Gross profit is critical because it represents the amount of money remaining to pay operating expanses financing cost and taxes. UBLs gross profit margin per rupee has shown rising trend in last three years. There is an increase of 27% in 2011 as compared to 2010. this shows efficiency of the bank to control the cost of sales.
NET PROFIT MARGIN:

This ratio shows the profit that is available from each rupee of the sale. After all expanses have been paid. Net profit margin is also showing an increasing trend. UBL has improved net profit margin in the current years. The net profit margin has reached to 30% as compared to 2010 in which it was only 12.69%. While in 2011 it was in negative figure. It shows a good impact on the UBLs Balance Sheet.
RETURN ON INVESTMENT:
This ratio measures the profitability per rupee of investment in assets. UBLs return on investment has shown an improvement more than 100%. In 2011 the ratio is 1.24% while in YASIR ABBAS M.B.A (Finance)
81
2010 it was 0.76% and in 2011 it was in ive figures. Although the assets have increased but the operational recovery of the bank is main cause of increasing this ratio.
RETURN ON EQUITY:
This ratio shows the profit as a proportion of the book value of the common shareholders. The return on equity is also shown a great deal of positive change. In 2011 the ratio is 45% while in 2010 it was only 16% and in 2011it was in negative figures.
ADVANCES TO DEPOSIT RATIO:

This ratio shows the companies advances employed per unit of deposit. This ratio of UBL over the recent three years shows a decreasing trend. In 2011 it was 56% while in 2010 it was 46% and in 2011 it is 45%.
INVESTS TO DEPOSIT:
This ratio shows the companys investment employed per unit of deposit. This ratio increased in 2010 as compared to 2011 but in 2011 it again decreased. It is because of industrial development factors in the country by which lending has been increased and investment is slightly decreased.
CHAPTER NO.7
82
QUALITATIVE ANALYSIS OF UBL

During my two months of internship period I have tried to fully commit myself in the learning process. I kept critically observing the things that I could analyze and the result of the exercise is presented as below. A) Organizational: Existing organizational hierarchy hinders vertical communication and blocks flow of information among the levels of management. The workload is not equally distributed. Coordination level among divisions/departments and employees are poor, particularly speaking of between the top and lower levels of management. There is centralization of authority and branch managers are bound and restricted to take initiative. Due to overlapping nature of duties and jobs there exists chaos and confusion in branches. B) Departmental:
During my internship period in UBL, in various departments, I noticed following departmental problems. Cash Department: i. Not very frequently but there are instances of fake currency notes, being identified. At times notes received from other branches were found to have certain fake currency notes. ii. Counting mistakes occur due to overcrowding particularly during the collection of utility bills. Manual counting system also affects efficiency of the bank. iii. iv. Code of conduct of cashiers is found unsatisfactory. There is generally the lacking in observing and practicing banks relevant procedures and SOPs. Remittances Department:
83
i.
Application of tests for authentication of TTs is not known to al concerned individuals that reduces the efficiency and further the wrong application of tests prevent payments and the delay could dissatisfy customers.
ii.
Telegraphic messages require specific skills and training. The employees are partially equipped of such knowledge.
iii.
Preparation, execution and management of TTs and MTs and particularly DDs ask for mastering applicable rules and regulations and most of the staff was found ignorant of those.
i. ii.
Deposit Department: Newly designed AOF has an inbuilt deficiency of restricted space and cannot accommodate more than two names. Identification of customers signature is very important particularly when cash is to be withdrawn by him. Manual practices pose problems in those branches where automation has not been done yet.
iii.
In cases where the presence of customer himself is must, is sometime compromised due to influences of\r fear of loss of customer.
i. ii. iii.
Clearing Department: Wrong endorsement and stamping causes loss to the customers and extra efforts for the bank to repeat the procedures. Reasons for the return of the cheques at times are not mentioned on the return memos. At times due to lack of training wrong stamps are applied on instruments.
Credit Department: i. ii. Timelines in cash disbursement is very important which is compromised due to lengthy processing and documentation requirements. Relationship Managers need to be fully equipped with the requisite knowledge and skills as presently plain BA/B.Sc qualified individuals are performing jobs of MBAs. YASIR ABBAS M.B.A (Finance)
84
iii.
Lack of infrastructure for carrying out computerized financial analysis of borrowers business.
iv.
Large pool of potential borrowers cannot apply for loans due to lack of collaterals. Heavy collateral requirements restrict credit business of the bank.
v.
The credit proposal and other documents at times are not properly and sufficiently prepared before taking approval.
vi. i. ii.
Filing and record maintenance of credit related documents are not done efficiently. Bills Department: Bills are sent to other cities; therefore, extra care should be exercised in making entries and stamp affixing. Proper scrutiny at times is not carried out and it causes loss to the bank or increase procedural timings.
iii. i.
Employees at times mismanage their time and fail to forward bills promptly. Foreign Exchange Department: Problems of bills and remittances departments equally apply to foreign exchange department. There is overlapping of functions and complete separation of function has not been achieved thus leading to a state of confusion and conflict among employees.
ii. iii.
Employees of this department are lacking computer-operating skills. Knowledge and educational background of employees working in this department do not match with the job they are doing.
iv.
Most of the employees of this department lack the ability to handle the Letters of Credit.
85
CHAPTER NO.9 ACTION PLAN FOR MARKETING DEPARTMENT:

This will help the bank to take long-term perspective for its marketing activities, with consideration on strategic approach of the bank. There are various steps involved in the given implementation plan, which will come in order, according to their importance and subjection on one another. Moreover, to bring order and efficiency to the difficult task of implementation plan. It has been broken down into the steps, which believed to be needed, when developing a disciplined action/implementation plan for launching financial products.
Step 1: Business Review

As we early discussed that this implementation plan will focus on marketing activities of UBL and as a part of the marketing background component, the business review is must. It includes the marketing database not only of UBL but also of other banks. To develop marketing database, we first need to understand the scope of banking followed by a comprehensive situational analysis of the financial product, and market place, which is relevant to the target market and competition situation. This will be accomplished through secondary research in YASIR ABBAS M.B.A (Finance)
86
Pakistan. UBLs own record of financial products and very often-primary research surveys of potential customers and focus group information. The business review provides a qualitative and quantitative decision activities and a rational for all the strategic marketing decisions with in the plan.
Step 2: Problems and Opportunities

The problems and opportunities step of UBL is a summary of the challenges that will emerge from the marketing database. In this step the data collected from the business review is shaped into meaningful summary points that form the basis of the implementation plan.
Step 3: Target Markets and Marketing

The target market and marketing objective both are inducted in one step due to their critical link to one another. Target Market: Once the deposits collection being developed as quantifiable objective, the staff of marketing department at the Hub branches and Head Office of bank must determine to whom they will be selling their new financial packages. In response to which bank will raise deposits, making this determination is really defining a target market. Which is a group of people with common characteristics. This part of implementation plan is concerning on marketing efforts towards the portion of population wit similar banking needs and saving habits.
Step 4: Plan Structure

To compete with other banks, UBL needs to set strategies for its new product by including the postings strategy, it will help in image building of the financial package to be launched. Posting: Once the bank has defined its potential market and has established marketing objectives, it must need to develop posting of its financial product. Position is the desired perception of the product within the market target of the bank for example, if the product is launched. Its position should be done in such a way, that customer is fully aware of its major characteristics the bank has stained to build the image of its products as highly profitable package. This positioning strategy is supported by the strategic consideration on various marketing mix tools e.g. advertisement, publicity etc,
Step 5: Informational Goals:

87
All steps of this implementation plan are highly dependent, but step 5, 6 & 7 are much more. Informational goals means to set the target the market awareness and attitudes package and fulfill the marketing objective of the bank. Another purpose is to provide direction for what is to be accomplished by each strategic tool in term of informational context.
Step 6: Strategic Marketing Mix:

This step is highly concerned with getting attention of the customers towards the service of the UBL offering. Here we are concerned with a new package launched by the bank. Focus will be on that financial product. This step of disciplined implementation plan provides some strategic plans for marketing of the product. These strategic and tactical plans incorporate marketing executed. When implemented, will allow the bank to meet its marketing objectives and fulfill the overall marketing strategies and information and communication
CHAPTER NO.10 RECOMMENDATIONS & SUGGESTIONS

Recommendations and suggestions are considered to be the most important part of an internship report, without which no report is considered complete and meaningful. This part of the report is based on the previous sections i.e. review and analysis. Moreover, for bringing suggestions, discussions have been conducted with the staff of UBL officers, who not only provided the basis for recommendations and suggestions but also pointed out some areas, where the change for the development is utmost important. Realizing the importance of this section, efforts have been made to give feasible recommendations, which are categorized under the following headings. During my internship at the UBL I find out week areas that require improvements for longterm benefit of the organization. These suggestions and recommendation are as follows. The behavior with the customers should be improved.
88
There is a great need of proper training of employees. Because when ever they were asked about the latest banking the answer was sorry we dont know. Like the other reputed commercial banks UBL should recruited some officers especially from the fresh MBAs and M.Com students. Doing so, the more talented persons would enter in the management and they will try to make the National Bank compatible with the other banks. All the branches must be fully equipped. The behavior with the customer should be improved. Try to establish effective communication between top-level management and executive. Also do marketing through internet Effective training and qualified, dutiful and vigilant inspection teams are inducted per force in all the banks. . This branch is not doing many functions to open the L/C and to deal in export and import facilities. So bank should hire export staff for such type of activities and start them in the branch.
CHAPTER NO.11 PERSONAL LEARNING

Personal learning is a moral and ethical obligation set by a person to move in a mellow way to excel in present and future. During the internship I realized following duties. Cohesiveness Ever Ready For Challenges Board Vision Learning From Cradle To Grave Always Create Opportunities Open Communication With The Boss appearance
Cohesiveness
89
A team player can achieve more than an individual. Good coordination and cooperation with peers and other staff members can impulse a person to perform better in difficult situations. During my internship I noticed that the degree of cohesiveness among the UBL employees is high that is why UBL is achieving its target quite efficiently.
EVER READY FOR CHALLENGES

If a person can handle problems and challenge adequately, he can grow especially in Finance field where every thing is well estimated.
BROAD VISION
THINK GIG Think positively to avoid any kind of discrepancy and hurdle in your task. Positively thinking and broad vision helps you to achieve some thing different and new.
LEARNING FORM CRADLE TO GRAVE

Latest researches and journals can be very helpful in order to generate new ideas. UBL offers many new courses to the employees to upgrade their knowledge.
ALWAYS CREATE OPPORTUNITIES

Dont wait for opportunities always create opportunities Time & Tide Waite for None If you are able to create opportunities, success is yours. Now the question is how? The answer is very simple, by generating new and useful ideas for the organization.
OPEN COMMUNICATION WITH YOUR BOOSS

To avoid any kind of misunderstanding with your boss, communicate freely with him. During my internship I analyzed that; People dont leave the organizations they leave their bosses So be friendly with your staff and boss and communicate freely to avoid organizational switching. YASIR ABBAS M.B.A (Finance)
90
APPEARANCE
Treat your self as a product Attractive appearance can be very useful to impress others. A professional should be dressed up properly to influence others.
BIBLIOGRAPHY
Web sites
www.ubl.com.pk www.google.com www.sbp.com.pk News papers BANKING JOURNAL YASIR ABBAS M.B.A (Finance)
91
www.dawn.com www.nation.com.pk Books Principals of Banking Marketing
Annexes
Board of Directors:
Chairman His Highness Shaikh Nahayan Mabarak Al Nahayan YASIR ABBAS M.B.A (Finance)
Deputy Chairman Sir Mohammed Anwar Pervez OBE
92
President & CEO Mr. Atif R. Bokhari
Director Mr. Omar Ziad Jaafar Al Askari
Director Mr. Zameer Mohammed Choudrey
Director Mr. Ahmad Waqar
93
Director Mr. Javed Sadiq Malik Mr. Aly Shah Barrister-at-law, Company Secretary
Director Mr. M. Tahsin Khan Iqbal
Executive Committee:
94
Mr. Atif R. Bokhari President and C.E.O
Mr. M.A. Mannan Group Executive Consumer/Commercial Bank
Mr. Nauman Hussain Group Operations & Technology Head
Mr. Risha Mohyeddin Group Executive Treasury & Capital Markets YASIR ABBAS M.B.A (Finance)
Mr. Aameer Karachiwalla Group CFO
95
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
Mr. Ali Sameer Group Head SAM YASIR ABBAS M.B.A (Finance)
96
Common size analysis of consolidated Balance Sheet

assets Cash/Bal. With Banks lending to F.Is Investment (ST) Advances-Performing (ST) Other Assets Total Current Assets Investment (LT) Advances-Performing (LT) Advances-Non performing (LT) Operating fixed Assets Deferred Tax Assets Total L.T Assets Total Assets Liabilities B/Payables Borrowings ST Deposits - Current Lease and Others Total Current Liabilities Fixed Deposits Other Long term Liabilities Total LT Liabilities Total Liability Shareholder's Equity Share Capital Reserves Accumulated Losses/Profits Minority Interest Surplus on revaluation Rs in '000 2011 2010 2011 3609108 70463707 35591280 4370006 3627557 19050791 9190430 33883311 29580252 39489369 43632117 89292490 8641263 2641471 3509351 97782157 118177074 177024164 19388131 33623058 25007413 28477494 26423058 10312297 11813855 5739798 3671991 2864018 2831534 3884990 8297500 5026459 5486357 70840998 73643958 48363048 168623155 191821032 225387212 1540592 1847025 2991269 4004130 174533 174533 102568752 118167469 152580240 8838842 9986608 5933743 116952316 130175635 161679785 38747422 43998916 37252204 21264831 5212755 10883720 49219400 49211671 48135924 166171716 179387306 209815709 22481680 3960453 -27282709 1168264 2123751 5180000 4258947 -722387 1271700 2445466 5180000 4712569 454403 1412932 3811599 Common size (%) 2011 2010 21.5 17.93 2.6 1.89 5.5 17.66 23.4 22.75 5.1 1.38 58 61.61 11.5 17.53 16.89 13.77 7.01 2.99 1.7 1.48 4.92 2.62 42 38.39 100 100 0.91 2.37 60.83 5.24 69.36 22.98 6.21 29.19 98.55 13.33 2.35 -16.18 0.69 1.26 0.96 0.09 61.6 5.2 67.86 22.94 2.72 25.65 93.52 2.7 2.22 -0.38 0.66 1.27 2011 15.79 8.45 13.12 39.61 1.55 78.54 11.09 4.57 1.62 1.72 2.43 21.45 100 1.32 0.07 67.69 2.63 71.73 16.52 4.82 21.35 93.09 2.3 2.09 0.2 0.62 1.69
97
Total
24541439
12433726
15571503
1.45
6.48
6.9
Common size analysis of consolidated Income Statement

Rs in Millions ITEMS Mark up revenue mark up expense gross profit provisions and B/Debts Net Mark up Income Non Mark up Return Commission & Brokerage Dividends/Exchange and Others Total Non Mark up Income Total Income Non Mark Up Expense Administrative Other Provision and Charges Total non mark up Expenses Profit Before Extraordinary Items Extraordinary Items Profits before tax Taxation Profit/Loss after tax Share of Minority Interest Accumulated Loss Brought Frd. Adjustment against sh. Capital Appropriation and Transfers Surplus on revaluation of Assets Transfer to Statutory Reserve Accumulated Loss Brought Frd. 0 2 27283 238 332 722 527 454 0 0.02 237.9 2.1 2.91 16.34 0 5.68 4.9 4669 632 5301 1472 -7200 -5728 1739 -7467 6 19821 0 5879 51 5930 2756 25 2781 1319 1462 10 27283 25202 6639 556 7197 4521 0 4521 1704 2818 21 722 40.71 5.15 46.22 12.84 62.78 49.95 15.16 65.11 0.06 172.2 0 51.64 0.44 52.08 24.2 0.21 24.44 11.59 12.84 0.09 210.64 221.36 48.77 18.38 30.39 0.22 7.78 0 71.62 6 77.64 48.77 1097 1818 2915 6773 2010 1514 3522 8686 2142 2803 4945 11718 9.57 15.85 25.42 59 17.63 13.3 30.94 76.2 23.1 30.24 53.34 126.42 2011 11468 6347 5121 1263 3858 2010 11385 5476 5909 746 5163 2011 9269 1931 7338 564 6773 Common size (%) 2011 100 55.35 44.65 11.02 33.64 2010 100 48.09 51.9 6.55 45.34 2011 100 20.83 79.89 6.08 73.07
98
RATIO ANALYSIS
YEARS Current Ratio Asset Turnover Debt to Asset Debt to Equity Coverage Ratio Gross Profit Margin Net Profit Margin Return On Investment Return On Equity Advances to Deposit Investment to Deposit Cash Ratio 2011 0.84 0.07 0.99 14.54 0.1 44.65% -65.12% -4.43% -887.99% 56.46% 20.22% 9.59% 2010 0.91 0.06 0.94 14.4 1.15 52.50% 12.69% 0.76% 16.78% 46.74% 41.63% 9.23% 2011FORMULA 1.15Current Assets / Current Liabilities 0.04Markup Revenue / Total Assets 0.93Total Debt / Total Assets 13.47Total Equity / Total Assets 3.34EBIT / Interest Expense 79%Gross Profit / Revenue * 100 30%Net Profit / Revenue * 100 1.24%Net Profit / Total Assets * 100 18%Net Profit / Total Equity * 100 45%Advances / Deposits * 100 28%Investment / Deposits * 100 28%Cash / Current Liabilities * 100
GRAPHICAL REPRESENTATION OF RATIOS:

CURRENT, ASEET TURNOVER, DEBT TO ASSET RATIO:
99
1.4 1.2 1 0.8 0.6 0.4 0.2 0 2009 2010 CR 2011 AT D/A
DEBT TO EQUITY RATIO

15 14.5 14 13.5 13 12.5 2009 2009 2010 2010 2011 2011
COVERAGE RATIO
4 3 2 1 0 2009 2009 2010 2010 2011 2011
Gross Profit Margin & Net Profit Margin
100
100 50 0 -50 -100 GPM NPM 2009 2010 2011
RETURN ON INVESTMENT, RETURN ON EQUITY
200 0 -200 -400 -600 -800 -1000 ROI ROE 2009 2010 2011
ADVANCES TO DEPOSITS, INVESTMENT TO DEPOSITS, CASH RATIO:
101
60 50 40 30 20 10 0 2009 2010 A/D I/D 2011 CASH
SOME IMPORTANT ABBREVIATIONS RHQ TFCs CDR CEO COD CDR MICs PLS A/c DD MT TT IBC IBCA OBC OBCA YASIR ABBAS M.B.A (Finance) Regional Head Quarter Term Finance Certificates Call Deposit Receipts Chief Executive Officer Certificate Of Deposit Call Deposit Receipt Monthly Income Certificates Profit & Loss Sharing account Demand Draft Mail Transfer Telegraphic Transfer Inward Bills Collection Inward Bills Collection Advice Outward Bills Collection Outward Bills Collection Advice
102
OD ATM DA DP LC SLC ULC B/L FOB B/E E-Form T-Bills PIB SME CIB LPR TC CRM SEVP GDP CRM CBG IPO CDB CCD PO CSO NTN NAB SDR CC ATR
Over Draft Auto Teller Machine Delivery against Advance Delivery against Payment Letter of Credit Sight Letter of Credit Usance Letter of Credit Bill of Lading Free On Board Bill of Exchange Export Form Treasury Bills Pakistan Investment bonds (common bonds) Small & Medium Enterprises Central Information Bureau (of SBP) Leaves Prior to Retirement Trade Checking Credit Risk Management Senior Executive Vice President Gross Domestic Product Customer Relationship Management Corporate Banking Group Initial Public Offerings Central Data Base Control and Compliance Department Pay Order Customer Service Officer National Tax Number National Accountability Beauru Security Deposit Receipt Cashiers Cheque Asset Turnover Ratio
103
104

UBL REPORT For Nomi Correct The Table of Contents

Încărcat de

Informații document

Descriere originală:

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

UBL REPORT For Nomi Correct The Table of Contents

Încărcat de

Drepturi de autor:

Formate disponibile

ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD

; ; YASIR ABBAS AD 511707 M.B.A FINANCE

SR. # 0 01 02 03 04 05 06 07 08 09 10 11 12 Title Page

YASIR ABBAS M.B.A (Finance)

YASIR ABBAS M.B.A (Finance)

CHAPTER NO.1 INTRODUCTION:

YASIR ABBAS M.B.A (Finance)

OBJECTIVE OF STUDYING ORGANIZATION:

OBJECTIVE OF STUDYING UNITED BANK LIMITED

STAGE in development of banking thus was the issue of bank notes.

COMMERCIAL BANKING IN PAKISTAN:

YASIR ABBAS M.B.A (Finance)

OVERVIEW OF THE ORGANIZATION:

YASIR ABBAS M.B.A (Finance)

Nature of the Organization:

YASIR ABBAS M.B.A (Finance)

YASIR ABBAS M.B.A (Finance)

REGION WISE BRANCHES NET WORK OF UBL

YASIR ABBAS M.B.A (Finance)

YASIR ABBAS M.B.A (Finance)

Personalized Service and Dynamic Approach

Ready for 21st Century

YASIR ABBAS M.B.A (Finance)

Bar on agri land:

YASIR ABBAS M.B.A (Finance)

YASIR ABBAS M.B.A (Finance)

CHAPTER NO.3 Account Department

Journal System Voucher System

YASIR ABBAS M.B.A (Finance)

Receiving cashier book

YASIR ABBAS M.B.A (Finance)

YASIR ABBAS M.B.A (Finance)

OPENING OF AN INDIVIDUAL ACCOUNT

OPENING OF JOINT ACCOUNT

OPENING OF A PARTNERSHIP ACCOUNT

OPENING OF AN ACCOUNT OF A SOLE PROPRIETORSHIP ACCOUNT

OPENING OF AN ACCOUNT OF A PRIVATE LTD. COMPANY

YASIR ABBAS M.B.A (Finance)

PRODUCTS AND SERVICES

YASIR ABBAS M.B.A (Finance)

ROLE OF UBL BANKING SECTOR:

YASIR ABBAS M.B.A (Finance)

UBL - On line System7:

YASIR ABBAS M.B.A (Finance)

Chart 2.1 Senior Management of UBL MANAGEMENT OF UBL: Main Offices:

YASIR ABBAS M.B.A (Finance)

Head International Operations (Dubai) Ali sameer Chief SAM (domestic)

YASIR ABBAS M.B.A (Finance)

FUNCTION HIERARCHY: Organizational Hierarchy of UBL

YASIR ABBAS M.B.A (Finance)

YASIR ABBAS M.B.A (Finance)

MISSION OF CORPORATE BANKING

4-HUMAN RESOURCE DPARTMENT

Human Resource Department:

Leaves Prior to Retirement (LPR)

YASIR ABBAS M.B.A (Finance)

Audit and Inspection

Learning as an Internee from the Management Side:

Customer Service Banking:

UBL Credit Card

YASIR ABBAS M.B.A (Finance)

YASIR ABBAS M.B.A (Finance)