INTERNSHIP REPORT
ON
UNITED BANK LIMITED PAKISTAN
MAIN BRANCH, BANNU (0306)
Submitted To:
The Director (IMS)
Prof. AMAN ULLAH AWAN
Submitted By:
ARSHAD MEHMOOD
BBA-IT (HONS)
Roll No.832
Session 2006-10
INSTITUTE OF MANAGEMENT SCIENCES, UNIVERSITY OF
SCIENCE AND TECHNOLOGY BANNU
INTERNSHIP REPORT
ON
UNITED BANK LIMITED PAKISTAN
MAIN BRANCH, BANNU (0306)
Internship report submitted to the Institute of Management Studies, University
of Bannu, in partial fulfillment of the requirements for the Degree of Master of
BUSINESS ADMINISTRATION IN FINANCE
INSTITUTE OF MANAGEMENT SCIENCES, UNIVERSITY OF
SCIENCE AND TECHNOLOGY BANNU
INSTITUTE OF MANAGEMENT STUDIES
INTERNSHIP REPORT ON
UNITED BANK LIMITED OF PAKISTAN
MAIN BRANCH, BANNU
External Examiner:
Signature
...............................
Signature
……………………
Supervisor:
Name
Designation
MR. AFTAB KHAN
Lecturer
Director:
Signature
………………………
Name
HAJI AMAN ULLAH AWAN
Institute of Management Sciences
University of Science and Technology Bannu
PREFACE
Banking is the backbone of the economy of any country. In Pakistan, banks are now
getting the attention and support of the government, to nourish and initiate the
developmental projects in this Country. Banks have also attained a high level of
initiation, productivity, and growth. One such bank with new policies and strategies
pushing forth towards progress is United Bank Limited, which has since its
inception shown remarkable achievements and discovered new avenues of innovative
banking.
During my two months Internship in UBL, Main Branch Bannu, I acquired first hand
information about Consumer Banking of the bank.
Report writing is infact a crucial exercises because the performance of a student is
judged through this report. I have tried my level best to cover every aspect of this
specialized banking activity, asses the working and performance of the Center and
forward solutions for its further improvements.
A number of persons have offered their help and guidance in writing this report. I
express my thanks to my supervisor MR.AFTAB KHAN, and my manager MR.
JAVID KHAN. I would also like to thank to the other staff members of UBL,
especially MR. HANIF ULLAH KHAN , without whose support it was impossible
for me to do this tedious job.
ARSHAD MEHMOOD
BBA-IT (HONS)
Roll No.832
Session 2006-10
2
ACKNOWLEDGEMENT
In completion of this work I am thankful to Almighty ALLAH, as I firmly believe,
without his gracious help; this accomplishment would not have been possible.
First and foremost, my deep appreciation, gratitude and indebtedness to my supervisor
MR.AFTAB
KHAN, Lecturer, Institute of Management Sciences, University of
Bannu, for his continuous encouragement, moral support and generosity in sharing his
time and knowledge during my studies.
I wish to express my sincere gratitude to personnel of UBL, Main Branch, Bannu, for
their help and guidance during my Internship.
Thanks to the constraints of academic protocols, that those who were and are always
first in my mind are being mentioned last. They are my parents and my loved ones. It
is, I believe, their sincere prayers, which were a constant source of strength and
inspiration to me that resulted in the completion of this work. I dedicate this work,
blended in my boundless love and affection, to them.
ARSHAD MEHMOOD
BBA-IT (HONS)
Roll No.832
Session 2006-10
3
TABLE OF CONTENTS
S.No.
Topic
Page No.
Preface
i
Acknowledgement
ii
List of Tables
vi
List of Graphs and Charts
vii
List of Acronyms
viii
Executive Summary
ix
Chapter – 1
1.
INTRODUCTION
7
1.1
Background of the Study
7
1.2
Objectives of the Study
7
1.3
Scope of the Study
8
1.4
Importance of the Study
8
1.5
Research Methodology (no need of this)
9
1.6
Limitations of The Report
9
1.7
Scheme of the Report
10
Chapter – 2
2.
EVOLUTION OF BANKING
11
2.1
Introduction
11
2.2
Growth and History of UBL
11
2.3
Management of UBL
13
2.4
Subsidiaries
16
2.5
Joint Venture
16
2.6
Role of UBL in NWFP
16
2.7
Mission Statement of UBL
17
2.8
Objectives of UBL
17
Chapter – 3
18
3.
ORGANIZATIONAL STRUCTURE
18
3.1
UBL Organizational Structure
18
3.2
Concept of HUB and Spokes Branches
20
3.3
Division of UBL’s Office
20
3.4
Concept of consumer Assets centers
22
3.5
Top Management at the Head Office
22
3.6
Organization Hierarchiy
23
3.7
Location map work of UBL in PAK
24
4
4.
4.1
4.2
4.3
2.4
4.5
DEPARTMENTATION
Accounts Department
Remittances Department
Deposits Department
Foreign Exchange Department
Advance department
5.
Chapter – 5
SERVICES & PRODUCT OF UBL
5.1
5.2
5.3
5.4
5.5
5.6
6.
6.1
6.2
6.3
6.4
7.
7.1
7.2
7.3
7.4
GENERAL DEPOSIT
CURRENT DEPOSIT
SAVING DEPOSIT
FIXED DEPOSIT
UNI-CASH
UBL WALLET VISA CARD
Chapter – 6
SWOT ANALYSIS
Strengths
Weaknesses
Opportunities
Threats
Chapter – 7
FINDINGS AND RECOMMENDATIONS
Deposits Department
Remittances Department
Cash Department
Bills and Clearing Department
27
27
38
30
32
34
37
37
37
38
39
41
43
43
44
44
47
48
49
49
50
5
7.5
7.
Advace department
Other finding and Recommendation
BIBLIOGRAPHY
52
55
LIST OF ACRONYMS
United Bank Limited
ADPC
ATM’s
AVP
BOD
CBG
Corp. Sec
CRM
D.D
DH
Est.
EVP
HBL
HRM
IBCA
ICP
IDBP
M.D
MT
NBP
NDFC
NWFP
PIFC
RTC
Agricultural Development Finance Corporation
Automated Teller Machines
Assistant Vice President
Board of Directors
Corporate Banking Group
Corporate Secretary
Credit Risk Management
Demand Draft
Divisional Head
Establishment
Executive Vice President
Habib Bank Limited
Human Resource Management
Inter Bank Credit Advice
Investment Corporation of Pakistan
Industrial Development Bank of Pakistan
Managing Director
Mail Transfer
National Bank of Pakistan
National Development Finance Corporation
North West Frontier Province
Pakistan Industrial Finance Corporation
Rupee Traveler Cheque
6
SAMG
SBP
SEVP
UBL
V.P
WHT
Special Assets Management Group
State Bank of Pakistan
Senior Executive Vice President
United Bank Limited.
Vice President
with Holding Tax
7
EXECUTIVE SUMMARY
Now a day’s strong and efficient capital and financial institutions are the basic
requirements of each county. So no country can be considered strong without having
strong enough capital and financial institutions and markets. One of the components
of these financial institutions are the banks. No one can deny the role the banks are
playing in the economic development of a country.
In Pakistan’s banking sector, UBL is one of the leading commercial banks. Very
renowned bankers such as I.I. Chundrigar and Agah Hassan Abidi established UBL in
1959. From the very beginning, UBL was showing very good performance but in
1974 after the nationalization of commercial banks, the bank has received some very
severe financial shocks. The shocks received in 1995 were so severe that SBP had to
assume the control of the bank in order to save it from bankruptcy. But after taking
over the management of the UBL by the new set-up under the leadership of Zubyr
Soomro, the bank was successful in rebuilding its shattered image. The new
management started new schemes and injected new concepts in order to improve its
services to the clients. Now the bank is in very good financial position and also has
gained its lost Goodwill.
My three months internship in UBL Main branch Bannu, gave me a very good deal of
the practical experience about the bank, its personnel and various services it offers to
the clients. Although three months duration for studying organization by no means is
enough but I have tried my ever best to cover all the areas of the bank in my report.
This report highlights the operations and functions of bank. Banks acts as financial
agents to their customer; in return they get reward for their services. Banks play
important role in development of society. A strong economy must have a good
banking system.
United Bank Limited is one of the leading banks in Pakistan. This report explains how
different functions of UBL works and what are their services. During the critical
analysis, it was observed that UBL is one of the leading commercial banks of
Pakistan.UBL has a greater responsibility for safety and prudence. since commercial
banks must make a living by putting the money at their disposal to work, they are
faced with the problem of making a living without jeopardizing the safety of their
institution and UBL is doing all this very efficiently.
8
CHAPTER # 1
INTRODUCTION
1.1
Background of study
United Bank of Pakistan is one of the leading and first government recognized bank in
Pakistan. Aimed to be the pre-eminent financial institution in Pakistan and achieve
market recognition both in the quality and delivery of service as well as the range of
product offering.
The reason of its development was that the UBL in addition to being a commercial
bank in the public sector at a time when all other commercial banks were in the
private sector
also came to acquire certain characteristics which to this day set it part from other
commercial banks of the country.
The establishment of UBL thus signaled the achievement of another milestone in the
development of the banking industry in Pakistan.
1.2
Objective of the study
For getting the Master degree of Business Administration, each student is required to
spend at least two months as an internee in a recognized organization. The students
are required to work in their own field in which they have done their specialization.
Main purpose of this program is to make students familiar with the practical work, as
there is great difference between what they have learnt during their MBA. And how
the job is practically done.
Another important aspect of the internship program is that internee is placed in most
of the departments of the organization through job rotation. It provides a glance of
each department, as the period is too short for learning in detail.
1.3
Scope of the study
1.
It is a compulsory requirement for the award of Master’s Degree of Business
Administration.
9
2.
It will help the present and prospective students of the department in making
assignments and writing reports on the UBL, evolution of banking, importance
of banking and different operations.
3.
It can also provide help to UBL’s management in identifying their Strengths,
Weaknesses, Opportunities and Threats.
4.
It can also provide assistance to students seeking financial data for analysis.
1.4
IMPORTANCE OF STUDY
Banks play a central and very important role in the economic life of a country, that’s
why they are considered as the lifeblood of modern economy. Today no one can deny
the importance of banking in the economy. They facilitate and expedite trade and
commerce and provide a variety of services that one can’t imagine with out banks.
I have chosen the United Bank Limited Pine View Road branch for my
internship because it has all the departments a bank could have.
Besides this, UBL plays an important role in the economic development of
Pakistan.
1.5
Report methodology
The methodology that I adopted for this research project is based on both the
primary as well as secondary data.
The sources of primary data were:
1.
Formally arranged interview/ discussions with Management and staff
members.
2.
Personal observations.
The sources of secondary data were:
1.
Annual reports
2.
Over view of the UBL
3.
Relevant books.
4.
The web sit of UBL
During the research project, I observed that enough written material regarding the
Bank is not available, so I had count on my personal observation and interviews with
manager. I spent eight weeks in the local branch and collected information about
10
different departments of the bank from discussion and interview with manager, so
most of the data of this report is primary .I also availed assistance from few relevant
books.
1.6
Limitation of the Report
There were however some limitations and that is the two months durations of
internship are nothing to gain entire knowledge of banking. Moreover the bank does
not want to provide data particularly about the rightsizing of employees and stuck-up
loans due to various reasons, so the reader must also keep this in mind.
1.7
SCHEME OF THE REPORT
The report has been divided into ten chapters.
Chapter 1: is about the introduction of the report. In this chapter it is discussed that
how the internship is important and what a student can learn from it. Light is also
thrown on the way in which the research has been conducted.
Chapter 2: of the report is about evolution of banking. This chapter contains detailed
information that what role the banks play in the economic development of a country.
In this chapter the bank is defined. Growth of the banking globally as well as in
Pakistan is pointed here. As well as it is about the historical background of UBL. The
circumstances in which UBL was established and its growth is discussed here.
Chapter 3: of the report is about the organizational structure of UBL. Hierarchy of
staff and various positions of seniority are shown and discussed through a Chart.
Chapter 4: covers various departments of UBL. Each department is separately given
due consideration. Various functions performed by different departments are
highlighted.
Chapter 5: this chapter is about services & product of UBL, throws light on various
financial products UBL offers to its customers.
Chapter 6: of the report consists of SWOT analysis.
Chapter 7: is consists of Findings and Recommendation of UBL
11
CHAPTER # 2
EVOLUTION OF BANKING
The word bank is derived from Latin word “Bancs” or “Banque”, which
means a bench. The explanation of this origin is attributed to the fact that
the Jews in Lombardy transected the business of money exchange on
benches in the market place. When the business failed, the people destroy
the bench.
Incidentally the word bankrupt is said to have been evolved from this
practice.
The opponents of this opinion argue that if it was so, then how is it that
the Italian money changers were never called Banchierei in the middle
ages
Other authorities hold the opinion that Bank is derived from German
word back which mean joint stock fund. Later on, when the German
occupied major part of Italy, the Back was italicized into Bank
Historical Background and Growth of UBL:
“The reserve Bank of India which was given the responsibilities of
exercising control over banking sector did not perform its duties properly
in Pakistan.”
The real momentum was given to banking system when the State Bank of
Pakistan, was established on 1st July 1948. But a real turn took place in
the banking section when a renowned banker Agha Hassan Abdi took
initiative of opening a bank, which he announced to the different mode
from the others. His dream became true when the first branch of United
Bank Limited (UBL) was opened at Macleod Road (now 1.1. Chandrigar
Road Karachi) on 7th November 1959.
12
This achievement was recurred after passing through many problems and
after completion of a lot of legal formalities. UBL was established on 24th
July 1959 as a public limited company with registered office at 1.1
Chandrigar Road, Karachi. The authorized capital was Rs. 2, 00,00,000
issued, subscribed and paid up capital was a Rs 1,00,00,000 share of Rs.
101 each. . The bank currently operating through 1300, branches in all the
major cities of the Pakistan and its registered office are situated at state
life insurance corp. Building # 1, 11. Chundrigar road, Karachi.
United bank limited is one of the most famous bank working in different
area of Pakistan, UBL is now officially the second largest private sector
bank in Pakistan with its 25 percent growth in deposits to RS 237 billion
in 2004.
Progressive Banking was a vision that came true in 1959 with the birth of
UBL. It brought in an era of modern banking and customer care beyond
the ordinary.
The Bank launched a variety of consumer banking products and services
– UBL Drive, UBL Cash line, UBL Address, UBL Business Line, UBL
Wallet ATM card and UBL Business Partner.
UBL is one of the largest commercial banks in Pakistan with assets of
over RS. 190 billion, Net Assets of over RS. 13 billion and a solid track
record of 47 years. UBL offers its services through a nationwide network
of over 1300, branches spread all over Pakistan and 15 overseas branches.
The Bank earned RS 4.3 billion pre-tax profits in 2003, a 59 percent
increase over the previous year, and announced a dividend of 22.5 per
cent. This remarkable performance was based on a record growth of 38
percent in advances, which grew from RS 72.8 billion in 2002 to RS
100.2 billion in 2003 driven by growth in deposits from RS 158.3 billion
in 2002 to RS 185.1 billion in 2003.
13
The Bank was privatized in 2002, through the sale of 51 percent stake to
a consortium of the Abu Dhabi Group led by His Highness Shaikh
Nahayan Mabarak al Nahayan and the Bestway Group led by Sir
Mohammed Anwr Pervez,. The issue is unsecured and subordinated to
payment of principal and profit to all other indebtedness of the Bank
including deposits.
United Bank Limited is one of the largest commercial bank in the
country. With almost 47 years of good standing to its valued clients, it
has stood the test of time, producing assets of over RS. 282 billion.
It offers its services through a wide network of over 1300, domestic
branches all over Pakistan and 25 overseas branches as part of global
network.
Management of UBL.
Essential Staff (1959).
UBL consisted of the following staff after establishment.
1
Mr.Ismail Ibrahim Chundrigar
Chairman
2
Mr.Muhammad Shafiq Saigol
Manager Director
3
Mr.Muhammad Rafiq Saigol
Director
4
Mr.M.Bashir Saigol
Director
5
Mr. A. Razaq Dada
Director
6
Mr. Mian M. Yahya
Director
7
Mr. Saeed Saigol
Director
8
Mr. Agha Hasan Abdi
Director
14
Mr. Ismail Ibrahim Chandrigar died in 1960 and was replaced by Mr.
Habib Ibraheem Rahmatullah while Mr.Shafiq Saigol retired in 1962 and
Agha Hassan Abdi took charge as managing director.
After Nationalization (1974).
On 1st January 1974 all commercial banks were nationalized and the
boards of directors of these banks were dissolved. Mr. Mushtaq Ahmad
Youdafi took charge as president of UBL. After nationalization 14 units
of commercial banks were merged in order to form 5 units. On 1977
commercial bank limited and Union Bank were merged with UBL.The
names and tenure of various presidents of UBL after nationalization are
as under.
15
Present dataThe name and designations of present top management
include;
UBL Opperations.
From the very start of its operations UBL is providing very efficient and
courteous services to its clients, and as a result of these it has achieved
progress in a very limited span of time. UBL has also the honors of
earring profit in the very first year after the commencement of business in
1959.
UBL introduced computer services and also offered many
remunerative schemes for its depositors and clients. UBL givens
advances to small,
S.No Name of President
From
To
1.
Mr. Mushtaq Ahmad Yousafi
01-01-1974 31-12-1976
2.
Mr. Kh. Zaiuddin
01-01-1977 31-12-1979
3
Mr. Sami
01-01-1980 03-02-1982
4
Mr. M. Sadiq Dar (Acting President) 04-02-1982 31-12-1982
5
Mr. Tajamul Hussain
01-01-1983 15-07-1988
6
Mr. Amjad Ali
16-07-1988 04-02-1989
7
Mr. Maqbook A. Soomro
05-02-1989 18-07-1989
8
Mr. Saleem Malik
19-07-1989 01-08-1990
9
Mr. Maqbool A. Soomro
01-08-1990
10
Saeed Butt
11
Aziz Ullah Mamon
12
M. R. Khan
13
Zubair Soomro
14
Amir Zafar Khan
16
1
Highness
mabarak
shaikhnayan Chairman
2
Sir Mohammad anwar pervez DeputyChairman
OBE
3.
Mr. Atif R. Bohari
President &CEO
4
omar ziad jaafar al askari
Director
5
Mr.zamer
choudry
6
Dr.ashfaque Husain khan
Director
7
Mr. Mohammad sami saeed
Director
8
Mr.aqil ahemad nasir
9
Mr.amir Karachi wala
Company
sectary&chief
legal
SEVP/Group
chief
financial
officer
Mohammad Director
17
medium
and
big
industries,
commercial
establishments,
agriculturists and other needy persons. UBL collects electricity, gas and
telephone bills from public on behalf of various departments and issues
T.V licenses on behalf of Pakistan Television Corporation.
UBL has established and organized branches both inside and out side
Pakistan. These are two subsidiaries and joint ventures of UBL as under.
1.
Subsidiaries:
UBL A G. Zurich (Switzerland) established in 1968.
Its paid up capital of dollars 2722 thousand, deposits
of dollars 5827 thousand and advances of dollars 5538 thousand as
on Dec 31, 1962.
UBL of Lebanon and Pakistan established in 1968.
Its paid up capital of dollars 379000 deposit of dollars
125978 advances of dollars 1983313.
2.
Joint Ventures:
a. Commercial bank of Oman Limited (Mascot) established in
1982.
b. United Saudi Commercial Bank Limited (Saudi Arabia)
established in 1982.
c. UBL has been presenting a very good track record since its
inception into banking business.
3. Branches
UBL has a large network of branches, which extends to the
remotest areas of the country. In December 1983 there were 1623
branches where in 1974 it had only 1238 branches. At present UBL have
1096 domestic branches. and present 15 overseas branches. some names
18
are
.bahrain,Qatar,Saudi
Arabia,united
Arab
emirates,yemenarab
republic,uk,Switzerland,Egypt,oman and the united states.
6
Role of UBL in KPK.
The role of UBL has developed largely; through out the country in very
short period of forty seven years. The bank is operating in the entire
country and has branches all over the country and overseas. In N.W.F.P,
UBL is operating successfully. The number of branches of UBL in
Peshawar region is 156 up to dec.2001 i.e. there are total 14 Hub
Branches in Peshawar region and under these Hub branches, there are 142
spokes branches. These 156 branches come under the Peshawar Region,
for which there is a Regional head Quarter (RHQ) in Peshawar.
The list of hub branches come under the Peshawar Region is as under.
1.
Peshawar
6.
Haripur
2.
3.
4.
5.
Bannu
Mansehra
Timergara
Hangu
2.7
Mission Statement of UBL
11.
8.
9.
7.
D.I. Khan
Mingora
13.
Nowshera 14.
10. Bathela
Mardan
12. Swabi
Kohat
Abbotabad
“We shall dominate Pakistan’s financial markets and be the leading bank
of Pakistan in term of quality of customer services, assets, profits and
reserves. We shall consistently try to be among banks in the Pakistan.
Comparing over selves to international standards. We shall be a modern
universal bank. Our employees will be efficient, motivated and have
corporate pride”
2.8
Objectives of UBL
Objectives mean the end towards which an activity is aimed. An
organization without objective is like a person who is wandering with no
19
purpose. All the activities of an organization are due to its objectives and
goals. And for the attainment of those objectives, various types of
financial products and plans are developed. UBL has also some
objectives, which are as under.

To ensure growth and development of the bank.

To use resources of the bank efficiently.

To get more deposits.

To participate in development of the country.

Paying special attention to the areas, which are under developed.

To develop SME’S.

To increase industrialization in the country.

To provide financial help to the farmers.

To provide employment opportunities.

To make people more of mind to have saving habits
CHAPTER#3
ORGANIZATIONAL STRUCTURE
Organizational structure of a firm provides boundaries for authority of
persons and clarifies individual responsibility and authority. It shows who
is responsible to whom, and who has the authority to give orders to
someone. An organization having dual authority or vague structure would
not have clear direction and will face hurdles in getting its goals and
objectives. Therefore, it is very important for any organization to have a
well-established structure of responsibility and authority. An organization
structure should be so designated to clarify the environment so that
20
everyone knows his duty and who is responsible for what. It results to
remove obstacle to performance caused by confusion and uncertainty of
tasks and to furnish a decision making communication network reflecting
and supporting enterprise objectives.
4.1
UBL ORGANIZATIONAL STRUCTURE:
UBL also has a well defined formal organizational structure.
UBL is a
very vast organization. In the organization set up of UBL, the highest
authority rests with Board of Directors which consists of Chairman,
Deputy Chairman, President & CEO and the directors. In which four
directors are from UBL, one from Pakistan Banking Council, one from
Ministry of Finance and one who is also the secretary of the board. So the
Board of Directors is an eight member team, and is responsible for policy
formulation and making important strategic decisions.
Paste Chart
The names of the Board of Directors are as follows:

CHAIRMAN
H.H Sheikh Nahayan Mabarak Al Nahayan
21

DEPUTY CHAIRMAN
Mr. Muhammad Anwar Pervez, OBE, HPK

PRESIDENT & CEO
Atif R. Bokhari

DIRECTOR
Zameer M. Choudrey

DIRECTOR
Omar Z. Al Askari

DIRECTOR
Muhammad Tehsin Khan Iqbal

DIRECTOR
Ahmad Waqar

Director
Javed Sadiq Malik
The authority, which is second highest, lies with executive committee. It
consists of seven members, including the president and secretaries are in
charge of divisions. The members are Senior Executive Vice President
(SEVP) of UBL. There are twenty divisions, which have their own Senior
Executive Vice President (SEVT). Executive Vice President (EVP), or
Senior Vice President (SVP), the
SEVP to international divisions manages the operations of foreign
countries branches.The rest of the divisions work along their functional
lines as shown in the organizational chart.
At the National level, UBL has a network of branches spread
allover the country and its field operations are one of the most extensive
among the leading banks in Pakistan. At provincial level the bank is
managed by SEVP, who is assisted by General Manager (OM), who is
EVP or SEVP. The OM is responsible for either a number of regional
areas or in charge of various provincial departments such as
Administration, General
Recovery, Loans, Inspection, etc. The
complexity and extensiveness of the operations in a given province
22
determine the number of OMs. OMs are assisted by circles executives
who are of the rank of SEVP or VP.
The entire country is divided into Circles which are further divided into
Zones.
The circles are administered by circle executive. Each zone is comprised
of a number of branches, which are managed by branch managers who
are mostly Grade I or Grade II officers. Some large sized branches are
also managed by AVPs.
4.2
CONCEPT OF HUB AND SPOKES BRANCHES:
The concept of HUB and Spoke branches was introduced by ANZ Grind
lays Bank (now renamed Standard Chattered Bank). The bank couldn’t
get the deMr.ed benefits and withdrew form it. Another bank which
adopted the concept was National Bank of Pakistan (NBP), which also
couldn’t get the deMr.ed results so both the banks disbanded it. Recently
UBL has implemented this scheme with high hopes. Under the concept
big branches of a zone are given the status of Hub branches. The Hub
branches monitor the activities of spokes branches. The number of
branches under a Hub branch depends upon the resources of Hub branch
and the location of the spokes branches e.g. in Peshawar there are two
hub branches one is Peshawar Cantt branch and the other one is Khyber
Bazaar branch. All the spoke and Hub branches work under the
concerned area manager. He is responsible for the performance of these
branches. He sits in the Hub branch and is assisted by a Vice President. In
UBL this new concept of banking has shown tremendous results and is
quite successful here. Unlike ANZ and NBP, UBL is getting benefits
from it, and has improved its performance quite well.
23
4.3
DIVISION OF UBL’S OFFICE
Basically there are two types of offices in UBL
1.
Head Office
2.
Regional Head quarters
1.
Head Office
Head office of UBL is in Karachi. It exercises overall control over
the bank. The head office (HQ) has various functions.

It formulates polices and ensures its implementation.

To supervise and control the operations of the regional offices.

To formulate policies and ensure its implementation by the field
offices.

To deal/liaison with foreign donors like IBRD (World Bank),
Asian

Development Bank, Islamic Development Bank, KFW (German
Bank),

FMO Netherlands etc.

To deal with Ministry of Finance.

To supervise RHQs.

To sanction loan applications received from the branches.

To deal with ministry of finance.
2.
Regional Head Quarters
There are Eleven Regional Offices of UBL which fully cooperate
with the Head Office. UBL Regional Offices performance with
reference to sanctions, disbursement, recoveries, and deposit
mobilization is of vital importance to the bank operations. The
functions are as follows:
24

To implement the policies formulated by the Head Office.

To extend the credit facilities by keeping in view all the prescribed
conditions.

To recover/collect the existing long-term credits extended by the
bank as per schedule.

To assist customers in the process of development by advancing
loans for viable financial projects.
All the 1056 UBL branches are the representatives of the bank.
These branches provide commercial as well as non-commercial banking
facilities. Various structures involved in the organization of UBL are
given below.
4.4
CONCEPT OF CONSUMER ASSETS CENTERS:
As the UBL was privatized the management started thinking about the
consumer products as well the commercial products. For this purpose the
management started hiring from all over the world in order to collect the
cream, and make a world class team without any doubt.
The management took the consumer head from the bank which is
consider as the pioneer in the consumer sector “City Bank”, and then he
joined hands management and made all the possible ways to make UBL a
World Class Bank on the Consumer Side as well in the Commercial
Sector. They made collectively the plans to make Consumer Assets
Centers in all over the country which was introduced first time in
Pakistan.
The UBL’s Consumer Assets Centers are the state-of-the-art in the main
cities like Karachi, Lahore, Islamabad and Peshawar. The Consumer
Assets Centers are divided in main Head Office, Regional Centers and
25
New Cities. At the time of launch the regions were 10 in the country but
now it has been increased to 14.
In Consumer Assets centers the products are divided in to two types: The
Secured, and Un-secured Products. The Secured include UBL Autos,
UBL Address, and Credit Card while the UBL Money and UBL Cashline
comes under the canopy of Un-secured Products.
There is a Group Executive, a Global Sales Head, Head Secured
Financing, Head Un-secured Financing, National Sales Managers,
Regional Sales Managers, Relationship Managers and the Relationship
Officers.
4.5
I.
TOP MANAGEMENT AT THE HEAD OFFICE:
BOARD OF DIRECTORS
The executive authority for the general direction and supervision of
the Bank operations or the conduct of business of UBL vests in
Board of Directors. The board consists of a Chairman and seven
other Directors.
The chairman of the Board of Directors is the “Managing
Director”. All the members of the Board of Directors, as well as
the Managing Directors are appointed by the government of
Pakistan.
II.
EXECUTIVE COMMITTEE
Executive committee of UBL consists of seven members. With the
expectation of the president, and secretary all other members
serves as In charge of many divisions. These members are Senior
Executive Vice President (SEVP), or consultants hired on contract
basis. The Division Heads that work under SEVP or consultants are
either Senior Vice President (SVP), Executive Vice President
(EVP) or Vice President (VP). The members of the executive
26
committee other than the M.D. shall hold office for such period as
may be determined by the Board. The decisions of the executive
committee, other than those, which relate to matters specified by
the board in this behalf, shall be laid before the board
FUNCTIONS OF EXECUTIVE COMMITTEE

The members of the executive committee other than the M.D. shall
hold office for such period as may be determined by the Board of
Directors.

The decisions of the executive committee, other than those, which
relate to matters specified by the board in this behalf, shall be laid
before the board for approval.

Subject to the general or special direction of the board, The
Executive Committee may deal with any matter within the
competence of the board.
MANAGING DIRECTOR

The Managing Director is responsible for the efficient working of
the organization. He performs his duty according to the policies
formulated by the Board of Directors and is directly answerable to
it.

The Federal Government on such salary and on terms and
conditions shall appoint the MD as it might deem fit.

The MD shall hold office for term of three years, which the
government may extend from time to time.

The MD shall be the Chief Executive of the organization and shall
perform such functions as required by the Ordinance and the rules
and regulations made for the past.
27
Organizational Hierarchy C
Board of Directors
Executive Committee
President/CEO
SEVP
EVP
SVP
VP
AVP
Office Grade 1
Non Clerical Staff
Clerical Staff
Officer Grade III
Officer Grade
II
28
Organizational Hierarchy Chart of consumer sector in UBL
Board of Directors
Executive Committee
President/CEO
Group Executive
Global Sales Head
Head Secured Financing
Head Un-secured
Financing
National Sales Manager
Senior Sales Manager
Regional Sales Manager
Relationship
Manager
Non-Clerical Staff
Processors
Relationship
officers
29
Location map
WITH an integrated network of over 1000 branches in Pakistan as
well as Overseas, UBL gives you direct access to a comprehensive range
of better banking facilities to help you monitor your business locally as
well as internationally.
www.ubl.com.pk
30
CHAPTER # 4
DEPARTMENTATION
UBL like other commercial banks established various departments for the
performance of various functions. Some of the departments of UBL are
Foreign
Exchange
department,
Advance
Department,
Accounts
Department, Deposit Department and Remittance department etc.
Now we will highlight the various function performed by the
different departments in the UBL.
1.
ACCOUNTS DEPARTMENT:
The Accounts department of UBL mainly deals in the accounts of
customer maintained at the bank. The accounting book maintained for
this services is known as cashbook. The summary book and ledger are
maintained through computer.
The cashbook is used for balancing the cash received and cash paid at the
end of the day.
Kinds of Accounts:
i.
Current Account
ii.
Saving Account
iii.
Fixed Account
i.
Current Account:
There is no restriction on the deposit and withdrawals of money in this
account..
31
ii.
Saving Account:
In Pakistan saving deposit account can be opened with a very small
amount of money, and the depositor is issued a chequebook for
withdrawals. Return is paid at a flexible rate.Calculated on by yearly
basis. However, withdrawals of limited accounts are generally allowed
only one or twice a week. The consumers have to give a notice of about
two weeks before the withdrawals of large amount” the minimum amount
of money required for opening the saving Account is Rs. 500/- while to
remain the A/c is running position the account holder has to maintain a
balance of Rs. 100/- for the withdrawals are concerned there is no
restriction but the bank discourages very regular withdrawals of small
amounts.
iii.
Fixed Account:
“The deposits that can be withdrawn after a specified period of time are
referred to as fixed or term deposits.” The account holder keeps a
specified amount of money for a definite period of time. The amount
deposited is not withdrawal by cheques, And after the maturity of the
previously agreed rate of return.
A single individual, partners and companies, too can maintain such
accounts as well. The period of which these deposits are help by the bank
ordinarily varies from three months to 60 months with the agreement
made between the customer and the banker.
iii. Business Bank Account.(BBA A/C):
This is the special type of Account (A/c) offered by UBL. This type of
A/c is opened for the students and salary holders. In this A/c there are
some facilities offered for the A/c holder such as……..
I. No restriction of minimum balance.
32
II. ATM facility.
III. No restriction on drawing.
IV. Transfer facility.
V. Receiving from others Banks with minimum commission.
VI. Receiving of salary from others Banks before 1st of the month.
2.
REMITTANCES DEPARTMENT:
This department is concerned with the transfer of money from one place
to another. In this, various modes of transferring money are available
which are discussed below.
A.
Mail Transfer (MT):
In this the money is transfer from one place to another by mail. If the
person is account holder of the bank, then the banker debit his account
with the amount of money he wants to transfer. The concerned bank
officer will prepare the necessary vouchers to make the mail transfer
complete. It contains on;
1)
Debit Voucher: Debiting the account holder for the amount to be
sent plus the commission and postage charged.
2)
Credit Voucher: credit the drawer branch
3)
Mail Transfer Register: The remittance is entered in the mail
transfer issue register.
But if the person is not an account holder in the initiating branch,
then he has first to deposit the stated money with the same bank and then
the above process starts.
33
B.
Telegraphic Transfer (TT):
People who want to transfer money quickly and without delay use this
type of transferring money. This type of transfer is also very simple. The
person who wants to transfer money fills the TT application form. The
applicant asked to deposit money to be remitted plus the amount of
commission and telegraph charges. After the amount is deposited with
cashier, the officer incharge remittances will prepare the TT message.
The TT message also carried a test number which is a sum of values
derived from number items like date, amount, and the drawer branch
consecutive number etc. then this telegram is sent to the bank where the
money is to be transferred. After receiving the telegram the drawer bank
makes payment after the test number is correctly decoded according to
the procedure prescribed.
C.
Demand Draft (DD)
In this way the person who wants to remit money goes to the bank and
fills the application form by filling the name of the drawer branch,
amount and the payee’s name. The amount to be remitted is deposited
with the cashier along with the commission on DD and the in charge of
remittances department will prepare the instrument. It is signed by two
officers of the branch and is then handed over to the applicant. The
amount can be received by presenting DD to the drawer branch
personally or through a bank.
D. Uniremote (ON LINE TRANSFER).
It is the most faster transfer of money from one bank to another with in
the country.
34
Thorough on line facility you can transfer the amount from one city to
another city in no time without commission (if you are account holder of
the Bank).
In this method the transferor A/c are Debited by the Bank and the
transferee A/c are Credited (to whom the amount is transferred) by his
Bank where he has A/c.
The amount is transferred in no time. Online transfer bring great
revaluation in the business world and make business more secure and
fast.
The trader transfer money to the seller through bank, and the seller sent
goods to the buyer as soon as possible, and thus buyer save his traveling
charges , as well as he also not close his business of the buying of goods
for the business.
3.
DEPOSIT DEPARTMENT:
One of the important functions of the bank is to receive surplus money
from the individuals, firms and institutions etc. It can be said about the
deposit that it is the lifeblood of any bank. A bank cab not runs its
business without the deposits.
The bank usually receives deposits in the following type of accounts,
which are as under.
1)
Current Account
2)
Saving Deposit Account
3)
Fixed Deposit or Time Deposit
4)
Call Deposit
`The classification of deposit chiefly on the basis of time and the purpose
for which the account is opened with the bank.
35
Now we will study the various types of deposits in detail:
1.
Current Account:
This type of deposit is withdrawal by crepes whenever the customer
draws crepes on this account. As such deposit is also termed demand
deposit. In Pakistan, bonds do not allowed any interest on such deposit.
And the bond treat these deposit as current liabilities. The banker also
requires the customer to maintain a minimum amount of balance. If the
customer fails to do so, then bank makes deduction from such
accounts/deposits under the heading on incidental chargers.
“Until a few decades bank, the proportion of current deposits in relation
to fixed deposits was very small. In recent years, however, the position
has changed remarkably”.
2.
Savings Deposit Account:
In Pakistan a saving deposit A/c can open with a very small
amount of money and the depositor is issued a chequebook for
withdrawals. Return is paid at a flexible rate calculated on six months
basis. However, withdrawals of limited amount are generally allowed
only twice a week. The customer has to give a notice of about two weeks
before the withdrawals of large amounts.
Such account may be maintain and run by an individual, partners and
companies as well. The most important character of this type of deposit
is issued with a chequebook for withdrawals. The account holder is
returned with profit rate, calculated on six months basis.
3.
Fixed or term Deposit:
It is payable to the customer after the expiry of a certain duration. The
duration of fixed deposit are various from three months to sixty months.
The bankers offer different rate of return on the fixed deposits depending
36
upon the duration of the deposit. The amount deposited in fixed account
is not withdrawn able. The amount is received back after the expiry of
fixed period.
One of the most important aspects of term deposit for the banks is that the
money of this deposit can be invested in various what the bank consider
profitable.
This type of deposit is also known as single transaction account. It is
because the account holder cannot operate upon the account like other
deposit accounts. The banker usually gives a receipt of the fixed deposit
mentioning the amount of money and date of maturity of the deposit. No
pay in slip book, passbook or chequebook is issued to the customer.
4.
FOREIGN EXCHAGE DEPARTMENT:
In today’s world no one country can keep itself self-sufficient in every
area of life. So they have to trade with other countries for the things,
which she does not have. But such Business required a medium of
Exchange, which is acceptable to the countries concerned.
So they
usually do business through the medium of stable currencies of the world.
For such International Business transaction the bank utilize the service of
its Foreign Exchange Department. The department plays very crucial and
important role in international trade.
The service, which Foreign
Exchange Department of the banks offers, is the parallel banking with
general banking and additional function of import and Export Business
controlled by State Bank of Pakistan. The rules and regulations are
framed by the SBP.
In UBL its foreign exchange department as per SBP regulations carries
out the international banking. The SBP exercises full control over the
Foreign Exchange Business.
No transaction is considered effective
37
without permission from the SBP under Foreign Exchange control Act
1947. Foreign Exchange regulations are issued though the Exchange
control Department of the SBP.
Any transaction in the international Banking shall be carried out at rates
determined by the SBP. For this purpose the SBP fix the rate of US
dollar with other currencies.
Foreign Exchange rate committee in
Karachi Head Office does this by the formula approved by SBP and as
published daily. It also makes sure the rates approved are conveyed to
the braches on the same day.
Foreign Exchange Department provides the following services to the
customer.

Foreign Exchange Currency Accounts

Foreign Exchange Remittance Facility
a.
Foreign Currency Account:
“Government of Pakistan has introduced many important reforms in
foreign exchange control in the county in February, 1990, for the purpose
of strengthening foreign exchange reserve.” UBL as an authorized
commercial bank offer the facility of foreign currency account in four
currencies, which are US Dollar, Japanese Yen, German Mark, and UK
Pound sterling.
The foreign currency account facility by UBL is available both for
Pakistani citizen currency account is similar to opening of local currency
account. The account may be an individual or joint account. There are
two types of foreign currency account.

Current Account

Saving Account
38
i.
Current Account:
Just like local currency current account holder no interest is given
to the foreign currency account holder. Foreign Currency A/C are also
exempted from Zakat, Income Tax, Wealth Tax, the Account holder can
shift his money abroad through Foreign Exchange remittance services
ii.
Saving Account:
UBL offers a very handsome rate of return foreign currency saving
accounts. The profit is paid in currency in which is opened. This account
too is exempted form. Zakat, Income Tax and Wealth Tax. The facility
of inward outward remittances is granted to the customer.
Purchase and Sale Of Foreign Currencies:
Foreign currency department of UBL also has a very extensive
system for the purchase and sale of foreign currencies.
UBL is an
authorized dealer in the touring currency, given the authority by SBP.
UBL deals in the sale and purchase of the following foreign currencies.

US DOLLARS

UK POUND STRELING

JAPANES YEN

GERMAN MARK

SAUDI RIYAL

UAE DARHAM
5.
ADVANCES DEPARTMENT:
39
Besides deposits the other major function of the bank is to advance
money to the clients. This function of the bank contributes a great deal to
the revenues to the bank. Due to its utmost importance to the bankers’
success, this area is given special importance and attention.
Bank normally makes advances of the types:

Commercial Finance

Agriculture Finance

Industrial Finance

Export Finance

Import Finance
The banks also advance to small size businesses and construction
companies etc. Many UBL Branches are having departments for granting
advances to the borrowers. Normally, it is responsible for performing the
following functions.
a. To handle all the cases of short or long term loans.
b. To process all the cases concerned.
c. To forward the cases for approval and consideration to the higher
authorities.
d. Direct dealing with the borrowers.
e. To insure the disbursement of loan.
f. To inform the high authorities about various loans.
UBL make advances in the following ways.
(a)
BY CASH CREDIT:
Through this credit facility, the banker advances loan to the
borrower after having tangible asset as a security. Main characteristics of
40
this facility are that the total amount is not given to the borrower at once
rather it is given in installments, or when over required. The borrower
has to the interest only on the amount outstanding against him.
The cash credit facility is given either through by hypothecation or
pledging of goods. Some requirements are as under.
i.
Custody of stock remains with the borrower.
ii.
Bank lien on the stock.
iii.
Stock hypothecated must be insured against fire etc.
iv.
Customer must submit the stock report on monthly basis.
v.
Frequent stock verification to be done by UBL.
vi.
Bank may send officers or staff in order to supervise verification
Some characteristics of pledging asset against loan. Stocks are
pledged with under banks lock and key.

Stock must be duly insured against for and burglary.

On monthly basis stock reports has to be prepared by the borrower
duly incorporating delivery of goods, if any during the months.

(b)
Delivery of goods/stock is made against cash payments.
BY DISCOUNTING BILL OF EXCHANGE:
This credit facility is a very advanced form of advancing
money/credit to the borrower. It is also termed as factoring. In this
facility, the bank purchases the bills of beaching from the borrower. The
bank gives face value of the bill to the borrower after deducting interest
on the remaining period required for the bill to mature.
(c)
BY OVER DRAFT
41
Some time it happens that a reliable, regular customer may ask for
a very short period credit. The bank accommodates such customers
through the facility of over-drafting. In this facility the bank charges
interest on the outstanding amount only. This facility may be given
without any security or is provided against some collateral. It might be a
temporary facility or an over-draft-limit may be sanctioned to the
customer, which may be used again and again during a certain period of
time.
6.
CLEARANCE HOUSE:
It is an association of banks; usually set up in a given locality for the
Purpose of inters changing credit claims. Nearly, everywhere this
function is performed by the central bank of a country. But in cities where
there is a no branch of central bank, other authorized banks perform this
fiction. In Pakistan, the areas where there is no central bank branch the
function of clearing house is performed by National Bank of Pakistan
(NPB).
In undertaking the process of inter changing credit the following
procedure is adopted. In banking business when creditor asks for some
payment, it is always the chouse through which the payment is asked for.
But there arises to situations when the payee for payment through
cheques. The payee may be account holder in the same bank i.e. of
drawer or he may not be the account holder in the same bank.
When the payee is an account holder in the same bank, then the cheque is
directly transferred from one to the other. And the total assets and
liabilities of the bank remains the same. Then in such cases the payee
deposits cheque in this bank drawn on some other
bank. The bank with
the cheque is deposited becomes the creditor of the drawers bank. The
42
debtor bank will pay this amount of the cheque by transferring it from
cash reserves if there is on off setting transaction.
In daily business of the bank, there are a number of chepues deposited
with one bank, which are drawn by other banks.
The drawer bank
becomes indebted to the bank in which the chques are deposited for
collection. In the same way the creditor banks also receive cheques
drawn on other banking giving blooms of payment by them. Now it will
be very inconvenient, uneconomical for the bank to transfer cash for
fulfilling reciprocal obligations. The best, easiest and safest way will be
to off set the reciprocal claims of each other and transferring only the net
amount due by any on the Clearing House provides this facility.
The clearance house is the branch of central bank of Pakistan or in case of
area where on central bank is available. The representative of each bank
meets at fixed time on all business day of week. This meeting is held in
the bank performing duties of clearing house. The messenger of the
various commercial banks gathered at the clearance house and
transferring cheques payable by other banks while collecting drawn on
their banks. A summary sheet is prepared describing the number of
cheques received and delivered by a bank at the clearance house.
Normally, the banks maintain two books for clearing house.

Inward clearing book.

Outward clearing

book.
CHAPTER # 5
SERVUCES &PRODUCT OF UBL
In banking services UBL provides a number of services. These services
include customer banking, merchant banking and corporate banking. The
43
following is the brief description of various services offered by the UBL
to its customers.
1.
General Deposits:
Due to the ever-increasing need for capital there are now a few business
enterprises, which are carried, put totally with the owner’s equity/capital.
So borrowing is becoming an essential feature of today’s enterprise. But
in case of banking business borrowing from outside sources is all the
most vital. And this is very common observation in the banking business
that in a given bank’s found treassures the borrowed capital is much
greater than its own capital. Bank borrows mostly in the form of various
deposits the greater the difference between the rate of borrowing and
lending; the greater will be the profit margin, for the bank. But the bank
look forward for more deposits, as this will create more funds available
for employment. So greater deposits will result in greater return for the
bank and as a result greater profit. In banking business these deposits are
the lifeblood of a bank. In deposit being the main advantage for the
customer is as debts.
When bank receive a deposits from a customer a relationship of debtor
and creditor is established. Customer becomes creditor while bank takes
the responsibilities of debtor. On receiving of deposits the acquired
liability for that much amount while becoming of the deposit, it can
invest anywhere it deems right with out consulting the creditor of the
deposit. But it does not mean that the bank becomes the sole owner of
this amount, rather through an implicit agreement the bank will be liable
to pay the depositor money as and when the depositor demand.
2.
Current Deposits:
44
UBL offers the facility of current a/c both in Pakistan rupees and foreign
currencies. On maintaining such accounts these is no restriction on the
customer residence. These accounts are usually maintained by
businessman and business concerns. It is become that they can take and
deposit money as money times as they deem right during the banking
hours. As such these accounts are payable on demand. In Pakistan on
offer any interest. Some of the solvent features of this a/c are as.
i.
No restriction on number of with drawls from a/c’s and on prior
notice is required for with drawl.
ii.
These a/c’s are regulated under the rules and regulation of SBP
especially deposits of $1000 is free from all exchange control.
iii.
Conversion of these funds into any currency and transfer for of
these finds into any country is not restricted.
iv.
The foreign currency a/c’s are acceptable as a collateral against
rupee loans.
v.
In case of payment to third party standing instruction by customer
is required.
vi.
By debiting these a/c’s a TC can be obtained.
vii.
For obtaining lockers facility preference is given to foreign
currency a/c’s holders.
3.
Saving Deposits:
The main objective of maintaining saving deposits in running
status by the bank is to develop saving habits in the people of our
country. Such people may include young people, married or household
woman. These people can start their a/c by depositing only a small
amount at a time. These accounts can also be opened in foreign
currencies. Some year ago it was not possible to withdraw money from
45
saving a/c more than two times in a weak and prior notice was to given
the bank for drawing money above a certain level. This restriction is now
removed by SBP and the customer can deposit and withdraw money as
and when required by the client during the banking hour.
Some of the silent features are as under:

Interest is payable by the bank in accordance with the rates
announced by SBP.

No restriction on the number of withdrawals and the amount of
withdrawals during a week.

The funds of this a/c can be utilized for purchasing Government
and other securities such as foreign exchange leader certificates,
special saving certificates and foreign currency bearer certificate.

Principal and interest earned there is on exempt from income tax
and Zakat.

In accordance with Govt. of Pakistan regulation, customer’s
deposits are free from all exchange controls.

If payment of a certain amount is to be made to a third party at
regular intervals i.e. monthly, quarterly, standing instruction to this
effect can be issued to the banker.

TC can be issued to the customer by debiting the customer’s a/c for
the amount.

Preferences given to foreign currency saving account holder in
providing locker facility.

Conversion and transfer of the currency into any other currency or
country is not restricted.
46
The rate of return on these a/c’s are not fixed and are computed and
announced at the end of the half year after half yearly and yearly closing
in June and December respectively.
4.
Fixed Deposits:
These deposits are created by a single as such there are two transaction
involved. One is when some body deposits the money and the other when
the customers withdraw the money after or before the due date. In case of
withdrawing the deposit before maturity no interest is paid to the deposit
holder. The rate of return on time deposits various with the duration for
when the deposit is created. The duration various from a day as long as
five years.
5.
Uni cash:
Now days carrying cash while going out of your place is very risky.
Every body wants maximum security while keeping is money in his
pocket. People make use of TC and other various credits cards for this
purpose.
UBL provides such facility through UNI-CASH the
management of UNI-CASH is carried out in following ways.
a.
PIN (Personal Identification Number)
Personal identification number (PIN) is very important number allotted
when a UNI-CASH card is issued to the customer. This number is made
unique by giving four-digit can financial number and when it is used in
conjunction with the UNI-CASH card is enable the customer to avail the
cash point facilities. The allotted PIN number is kept event confidential
form the bank staff by printing it in a special number buy the computer on
47
a pre-sealed, tamper proof PIN millers. These PIN-MILLERS can only be
seen when the customer opens the envelope.
b.
Pin Change:
When a customer after availing the facility first time with the UNI-CASH
card, he/she will be required to change PIN (Personal Identification)
number is sought from security point of view. The change number
selected by the customer should be such that the customer can easily
remember it and can not be easily guessed by other.
c.
Card Serial Number:
Card serial number is given to a particular UNI-CASH card which the
customer can know by looking at the card. The first line contains the
UNI-CASH card serial number with the customer’s name, a/c number
and card expiry date is followed in the subsequent lines.
d.
Withdrawal Limit:
This limit is determined at the time of depositing money for availing the
facility of UNI-CASH card. The limit depends upon money deposited.
e.
Cash Points:
To facilitate the process of getting money through UNI-CASH card a
number of cash points are available in the country. The machines may be
used round the clock. UNI-CASH card are used in these machines for
drawing money from the account and for availing a number of other
facilities such as the following.
i.
Balance Inquiry
ii.
Mini Statement
iii.
PIN Change
48
6. UBL WALLET VISA CARD:
UBL WALLET VISA is a secure innovative card providing the customers
the benefits of both an ATM (automatic tailor machine) and a debit card
locally and internationally.
With UBLVISA WELLET , the customers have the power of using your
card at more than 925 ATMs across the countory and over 900,000 VISA
ATM locations world wide in 150 countories and over 5,000 ORIX
locations across the nations and 22 millions VISA merchant locations
world wide. It can be used 24hour day,
7
days a week at all UBL ATMs as well as others ATMs in 1Link &
MNET network.
ATM CARD USAGE :
1. Insert the card in to the slot labeled “insert card”.
2. Select the Language.
3. Use the keypad to enter the personal Identification number(PIN).
MAIN MENUE:
In the main menue, select an icon to conduct a transact
CASH WITHDRAWAL:
1. Select “cash” withdrawal” from the main menue.
2. Select the account type.
3. Enter the required amount in multiples of Rs.500* and press OK.
MINI STATEMENT:
1. Select mini statement from the main menu.
2. Select the account type.
49
3. Collect the mini statement.
PIN CHANGE:
1. Select “pin change” from the menu.
2. Use the keypad to enter your new PIN.
3. Reenter your new PIN to confirm.
FUNDS TRANSFER. (from UBL to UBL to others banks):
1. Select “funds transfer” from the menu.
2. Select the type of funds transfer you to wish to conduct.
3. Select the account from which you wish to transfer funds.
4. Select the account to which you wish to transfer funds, or type in the
account number according to the given layout.
5. Type in the amount of funds that you wish to transfer.
6.
Confirm the account name and number and amount of funds to
execute
The Funds transfer.
DEBIT CARD USAGE:
1.
After shopping, present theUBL Wallet to the cashier the UBL
Wallet
is accepted at all outlets exhibiting the VISA logo as well as ORIX
logo displaying machines.
2.
The cashier will swipe your UBL Wallet through the point of
sale(POS) Terminal and enter the purchase amount.
3.
It is as simple as buy, swipe & sign. Simply purchase the item,
swipe the card
50
At the POS terminal and sign on the receipt generated. For
transactions on the ORIX network simply enter the PIN to complete the
transactions.
CHAPTER # 6
SWOT ANALYSIS
The word “SWOT” consists of four words, which are stands for
Strengths, weaknesses, opportunities and threats, respectively.
Through the “SWOT” Analysis technique one can analyze the present
condition and performance of a given organization and can prepares plans
for the future.
In the SWOT Analysis of UBL the following points can be discussed in
brief.
1.
STRENGTHS:
Its Strengths are as follows.
51

Having reputation for high customer banking services.

3rd largest Bank of Pakistan

Easy asses to branch locality.

Large network.

Professional and skilled management.

Well co-coordinated branch office system.

Experienced personnel.

Strong loyal customer group.

Excellent competitive skills.

Sound level of deposits.

Excellent promotional and marketing campaigns.
2.
WEAKNESSES:
Weaknesses is something an organization lakes at doing that.for UBL
these are.

Customer having accounts with small amounts are not given the
same attention given to those with large amounts.

Security system of UBL main branch bannu very careless

Most of employees are overloaded with the work and promotion is
also not timely.

Low salaries to staff.

Political inter presence.

Low market value of the bank’s stock.
52

Bad recovery of over due advances.

Un-satisfactory working condition of branches.

No availability of sophisticated equipments in branches.

In efficient system of recruiting and selecting of personnel.
4.
OPPORTUNITIES:
An external situation, which an organization can benefit from,is called
opportunity.

Increase the serving customer group.

Due to efficient and experienced management group,UBL can
improve and expend its foreign operations successfully.

Enter new markets.

Increase product line to serve large range of customers needs.

Hiring of well-qualified personnel in the work force.

Deployment of sophisticated technology in offices and branches.
4.
THREATS:

Increase the number of new local and foreign banks.

Low moral of employees.

Political interference in the affairs of the bank.

Lake of consistence in policies due to Political instability.

Low saving rated in the country.

Economic recession in the country.
This “SWOT” Analysis is a mirror to the bank o its present condition.
From this analysis we can conclude that the bank has done some
professional changes in its banking system. The management can develop
53
elaborated strategy planes for capitalization the available opportunities.
One area where the bank has done some work is the improvement in
customer services.
The bank should maintain principle of professional management and
adhere the sound and sophisticated banking rules and regulations in order
to build confidence of people in the institution
CONCLUSION:
After the establishment of UBL in the year of 1959, the bank was
successful in achieving some of its objectives. In the very first the bank
earned a handsome profit.
After the exhaustive era of nationalization, the bank is now transforming
to private ownership again. The decade of 60’s was dominated by on
exceptional increase in economic activities. This result in bringing
various changes in the management and structure of the commercial
banks. In area of management more professional were brought in and the
same was done with the structure.
UBL was not an exception to these changes. In the last decade of the
century the bank had witnessed very bad banking business. To rebuild the
bank new professional people were inducted under the leadership of
Mr.Zahoor Soomro. Under this leadership the bank introduced incentive
schemes and products such as CARAMMAD, ZARAMMAD and UNIMAHANA, etc, schemes were introduced. The bank also reshaped the
product of Rupee Traveler’s Cheque (RTC) with a new name of
HAMRAH.
All these schemes were very successful in stopping the capital flight from
the country, which was the result of the foreign currency a/cs in May
1998 after the nuclear detonation. Now the bank is focusing on improving
54
the standard of its services facilities, specially improving its corporate
banking and more customer satisfactory culture. All these new and
potential improvements are signs of bright future for the UBL.
After the conclusion I would like to recommend some points which I
think if given due consideration by the UBL management will definitely
result in improving the bank’s image, goodwill and position as well. Like
other companies, for expansion of its business the bank should focus its
activities on increasing its stockholders equity. And also the hank should
be obliged and fulfill its obligations to its customer, stockholders and
public. Some suggestions may be given in order to give right
back/objectives.

Development and maintenance of congenial work environment for
the bank employees.

Achieving more customer satisfaction through quality services.

Increasing
assets
and
decreasing
expenses
through
letter
management.

Playing more responsible role in the social environment of the
society meaning
full filling the social obligations as well.
55
CHAPTER#7
RECOMMENDATIONS FOR IMPROVEMENT:
Recommendations are based on the previous sections of a report and are
suggestions that the analyst feels are required to be implemented in order
to improve further the standing and position of the firm in the financial
world. These are thus based on the findings and shortcomings noted in an
organization while working with it and then writing on it. Opinions of
various capable individuals are sought who through their real life
experiences and deep insight are better able to judge whether the course
of action adopted by the organization is going to prove fruitful or does it
require further improvement in the form of changes in its strategies.
56
Following are the findings and recommendations for various Departments
that were felt are required while consulting the staff members of UBL,
Main Branch Bannu.
7.1
Deposits Department
The comparative analyses reveal that UBL has the lowest share of
Deposits out of the total in the market. Since deposits are the
lifeblood of a bank, it should attract more customers and expand its
deposit base in the following manner
7.1.1 Simplification of Procedures
The procedure of opening an account should be simplified. The
account opening form should be self-explanatory and include
translations in Urdu for those customers who are not well read,
since the fact cannot be ignored that many people do not have a
good understanding of English.
7.1.2 No Duplication of Activities
Once the account opening form is filled there should be no reason
to submit a written application for opening an account, since it not
only is a wasteful and time consuming exercise on the part of the
customer but also makes filing lengthy.
7.1.3 Incentives for Depositors
Those who deposit large amounts of money or are old customers of
the bank should be given free credit lines up to a certain limit.
Besides, financial advice should be provided to customers in case
there is a change in the market trend before they seek for it.
7.1.4 Integrated Marketing Approach
57
All the officers in Deposits Department should be involved in
marketing and not just opening accounts and maintaining their
records. This can be done through improving their personnel
relations’ skills and applying the Uni-Service concept of visiting
the potential customers at their offices and homes.
7.1.5 Performance Appraisal
UBL should follow the performance evaluation policy strictly and
award those who bring in deposits and help it increase its market
share. Unfortunately, this has been stated in the bank’s policy but is
not being implemented.
7.2
REMITTANCES DEPARTMENT
The Remittances Department at the Branch is divided into Inland
Remittances and Foreign Remittances.
Both these are dealt by separate officers and involve using specific
stationary and procedures. The following recommendations are
made for this very important Department of the bank
7.2.1 Organizing the Department
The Department is spread over the entire bank with no specific
person or desk for the purpose. Usually drafts and telegraphic
transfers are made in the cash counter that results in hassle for the
other customers. A senior officer detached from the other officers
performing inland remittance transactions handles the foreign
remittances. It would be better for them to sit together so that they
can benefit from his experience and know how.
7.2.2 Centralized Money gram Services
The customers receiving funds from abroad have to wait quite long
in order to get their money as the branch sends the application form
58
through fax to the City Branch from where it is confirmed whether
the amount has been credited to the Swabi. Branch or not. This
confirmation takes long at times and there is always a fear of the
bank losing its goodwill in case of lengthy delays. The service
should thus be decentralized and the Hub Branch having the
authority of directly confirming the amount.
7.3
CASH DEPARTMENT
The following recommendations are made for the Cash
Department.
7.3.1 Expansion of the Cash Counter
The Cash Department at the Branch needs special attention in the
sense that the cash counter is small and becomes crowded when
there are more than five to six customers to attend. Customers
purchase drafts and other instruments from the very same counter
where utility bills are collected and cash is deposited and
withdrawn. Hence, if a new counter cannot be built due to certain
limitations the utility bills should be collected through a window so
that the regular customers do not face any problems.
7.3.2 Extended timings for Cash
In order for the bank to progress and compete with the others in the
market, it should extend the time for accepting and withdrawing
cash. The customers face great hardship especially when they come
from far off places and find that the cash counter is closed for the
daily transactions.
7.4
BILLS AND CLEARING DEPARTMENT
The following suggestions are made for this Department keeping in
view the problems noted in it.
7.4.1 Career Development
59
It has been noted that the officers taking bills for clearing do not
involve themselves much with the other operations of the bank and
thus remain on the very same post and seat throughout their
banking career. This is against the modern day policies of
organizations giving their employees conducive, rewarding and
equal opportunities of prospering and growing with it. Thus, the
Human Resource Department at the Head Office should prepare a
plan that shows the future growth potential of the employees based
on their job performance and evaluation and make it known to all.
7.4.2 Job Rotation
There should be job rotation of employees especially in this
department as it was felt that the employees here know quite less as
compared to the others. This will enhance their capabilities and
help them break the monotony making them find their work more
interesting.
7.5
ADVANCES DEPARTMENT
There were certain drawbacks in the application and processing for
the loan requests that were observed at the branch. The findings and the
recommendations are as under
7.5.1 Proper Documentation
If valid documents are not obtained before sanctioning the loan
limit, it becomes irrecoverable in case of default by the borrower. It
has been noted that at times the related officers oblige the customer
by letting him submit the documents later and approving the limit
by getting the Disbursement Authorization Certificate from the
60
Credit Committee. It proves to be very time and resource
consuming afterwards tracing the borrower to bring in the
documents. Therefore, correct and complete documents should be
attained before the amount is sanctioned and no leniency shown in
any case.
7.5.2 Computerized Record
All the sanctioned cases should have record on the computer as it is
easy to access and does not involve the hassles of maintaining and
retrieving large and old files. For this purpose, training programs
should be organized for the Relationship Managers to enable them
to have a basic computer know how. Through this, they would also
be able to assess the financial position of the prospective borrower
in minutes by using related financial software.
7.5.3 Verification of Security
Physical verification of the security tendered is a must rather than
to merely rely on the documents. It had been noted that where the
property to be hypothecated/ mortgaged lay in remote areas such as
the Gadoon Industrial Estate regular physical visits are avoided by
the officers. This and the above factors result in an increase in the
non-performing loans of the bank and as result UBL had more
debts turned bad as compared to the other banks. For this purpose,
regular physical verification must be conducted of securities
pledged and hypothecated.
7.6
OTHER FINDINGS AND RECOMMENDATIONS
The following recommendations are for the bank as a whole
7.6.1 Development of Managerial Leadership
61
Good managerial skills make positive contribution towards higher
effective results. UBL should focus on the effective utilization of
its human resource by applying the modern style of management.
This can only be possible if political interferences are discouraged
especially when hiring and placing personnel and the recruitment
policies are changed to give preference to M.B.A. and M. Com.
students.
7.6.2 Tests for Promotions
A sizeable portion of the officers at UBL is promoted without
conducting any tests and interviews. This results in undeserving
people sitting on the managerial posts and steering the organization
away from its goals and objectives in the long run.
7.6.3 Training for Credit Management
Special trainings on credit management should be imparted to the
staff dealing in financing activities of the bank. This is very
important in light of current loan default scenario in the economy.
7.6.4 Delegation of Powers
Delegating powers to the Department in-charges up to the greater
possible extent will most certainly reduce the workload on the
managers and they would be able to perform well by taking quick
remedial actions where necessary. Besides, the spare time will be
spent dealing with matters of more important nature.
7.6.5 Research and Development Department
A Research and Development Department in UBL will help it to
adopt new procedures and modern techniques that will help the
bank to compete with the others. An R&DD should be maintained
62
at all the Hub Branches that would define the target market for the
bank in that particular area and through its findings suggest
measures to improve the performance of branches
x.
Introduction of Improved Technologies:
Technology plays an important role in this regard. No body can
stop the process of innovations. This process is not limited to any
particular branch or area. This is also happening in the field of
science and technology. Computer is the output of such activities.
Application of computer in the field of banking is not a novelty any
more. For this purpose if a separate research wing is established, it
will greatly benefit for the bank. Because this wing will Asses new
technologies that can be adopted by the bank.
xii.
Communication:
Swift communication in any organization is the inevitable need.
But reliable, swift and workable communication is of utmost
importance to the bank. All the operation of the bank is very much
depending on inward and outward communication. And any
disturbance in the free flow of information will bring drastic
consequences. So to avoid such situation a more swift flow of
information is to be maintained. As this will aid management in
taking action in due time, and will also positively affect customer
service. So for the written or oral communication are concerned
that 7C’s are desired to be considered in bank.
PROBLEMS AND SUGGESTIONS
PROBLEMS:
In every business institution, of closely observed, there are a
number of internal and external problems which are faced by the
63
employees on the one hand and particular public on the other. During my
two months internship stay in United Bank Limited (Choke Bazaar
branch), which is small period by all means to know every thing about a
big organization like UBL, I realized that generally the employees face
two types of problems.
1)
Internal Problems (Administrative Problems)
2)
External Problems (Public Problems)
1.
Internal Problems (Administrative Problems):
Administrative problems directly relates to the employees. I personally
feel and also heard the employees discussing about the timing of the
bank. These timings were not very convenient of the employees coming
from ruler and sub-urban areas. It was very difficult for them to attend the
office as early. The under development of the country also cannot help
peoples to overcome this problem because the mean of transportation and
communication are not up to standard. The employees often don’t have
their own conveyance and if they missed the buss they cannot enter their
names in the good book of in charge.
The second problem related to the time factor was the duration of the
working, which is very 1ong and boring for the employees regarding the
type of work they are bound to do. Account works if continued the
daylong irritates the person who had no time for refreshment/lunch,
which is in a normal routine of the banks that an employ remains busy
rottenly till late at night.
Often the employees of the bank work above the scheduled time and they
are not paid over time they just sit to obey the orders of the higher
management.
64
Another thing, which I observe that they were not, granted leaves as
desired because of shortage of stuff and the nature of duty.
After the application of golden hand Shake scheme the problems of
shortage of stuff are increased very much because the most of the
experience stuff is now retired through GHS Schemes and new stuff is
not recruited. Now the same amount of work is done by lesser number of
employees and the burden per employee is increased.
Although the computer facilities are available with every branch but they
are not utilized properly because of the unavailability of the computer
programmers.
2.
External Problems (Public Problems):
The problems, which relate to the public or say clients, who visit bank in
connection with their business, are as external problems. In Pakistan
literacy rate quite low in backward areas. Nearly 80% of the people are
illiterate businessmen. They do not know the real procedure of cash
transaction and creates various problems for the bank employees. Some
times they ask very false question for nothing during the busy hours.
It is a normal routine for them to bring their friends also having a hope
that they will be offered a cup of tea with some sweet. The main problem
faced by the managers of the bank for which he has no solution is that
these illiterate visitors come to the office and the managers from out side
places for example Lahore and Karachi etc for their clients receive use
telephones.
It becomes very difficult to send a special messenger to the concerned
person for telephone calls and hence disturbs the office routine. Visitors
use stationary and envelops frequently. Illiterate clients entered the bank
65
in their routine work badly and produce irritation even they also use the
pen of the employees and kept them waiting for some time.
SUGGESTIONS:
Regardless of it that a problem is of the external nature or that of the
internal nature, it is necessary for the bank administration to solve them
properly so that the bank can run better towards the achievement of its
predetermine objectives. Using the proper way of administration could
solve both the problems internal and external.
All the employees working in the bank may be granted motorcycle
advance, which may be recovered into easy installments with out interest,
while sanctioning the advance, period of the services should not be taken
into accounts it closes the way for a newly recruited employee. Also there
should be one or two tea breaks for the relaxation of the employees
during the work hours.
Approximately one or two clerks may be appointed other then the
sanctioned strength, so that on the time when one takes leave could be
replaced by the person in extra. This may cause some financial problems
to the bank for which an institution always tries to get side off. But it will
help the bank in negotiating the public properly, which will increase the
good will result in business and profit of bank.
The workers should given leave at any emergent time. This will increase
the desire of the workers for work. Proper remuneration to a worker
brings positive results for an institution. It is therefore suggested that if
anemployee works more than four hours as over time should be given full
daily.
BIBLIOGRAPHY
i.
Annual Report of United Bank Limited (UBL), 2010-10
66
ii.
Mr. Riaz saheb lecturar in IMS UST Bannu.
iii.
Sir Rahman ullah lecturar in IMS UST Bannu.
iv.
Mr. Javed khan branch manager of UBL (Parety gate bannu).
v.
Hanif ullah khan customer servecies manager in UBL (Parety gate
bannu).
vi.
Strategic management by fred R David 10th Edition.
67