EXECUTIVE SUMMARY

The internship requirement in the degree of Master in Business Administration led me to experience an
exciting and professional exposure to Union Bank Limited as an intern.

Union Bank is rapidly gaining ground in the global financial market and considering this rapid growth;
Standard Charter, which is one of the leaders in Banking, decided to adopt it after the issuance of orders
from State Bank of Pakistan that every bank in Pakistan must have more than 200 running branches and
one half billion of reserves. So in July 2006, Union Bank officially merged with Standard Charter, which is
the leading international bank in Pakistan, and Union Bank will materially enhance its market position.

Given the identical positioning of both the banks in the market, the combined entity of Standard Chartered
and Union Bank will deliver economies of scale, a more complete product set, a stronger operating
platform and a wider distribution network. This acquisition will make Standard Chartered the 6th largest
bank (in terms of assets) and will also significantly increase its presence in Pakistan

Though, now Union Bank is officially operating as Standard Charter but the management takeover still
remains, which will completely change the internal business processes and policies. But during my period
of internship, I essentially learned the business processes and policies of Union Bank Limited so from
now onwards in this repot, I will refer the Bank as Union Bank and will focus on its details and policies.

This report accentuates the details of business operations and my learning and observation at Union
Bank Limited as an intern from 17 Aug 2006 to 29 Aug 2006. It also includes the actual forms that are
used in this organization to carry out basic business processes.

1
 BACKGROUND

Union Bank is a private bank and institution that was licensed in the early 1990´s and has demonstrated
an impressive period of growth since the new management team took over the bank in 1999.
Union Bank is now the eighth largest bank in Pakistan by market share. Mr. Shaukat Tarin is the President
and Group CEO of Union Bank. Over the last five years, Union Bank has come a long way through its
strategy of being a universal bank that provides banking solutions to a variety of customers as well as
small and medium sized enterprises (SMEs). It has successfully established international operations in Sri
Lanka.

Union Bank today is the preferred choice of thousands of satisfied customers throughout Pakistan. With
42 branches in 19 cities and a correspondent banking network of over 300 banks in 85 countries, Union
Bank is rapidly gaining ground in the global financial market.

The management at Union Bank comprises of seasoned professionals in the fields of banking and finance
thereby encouraging a culture of innovation, and total customer satisfaction. Union Bank's vision is to
provide its clients with complete banking solutions.

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 VISION, MISSION AND CORE VALUES

Our Vision…
To be the premier financial institution in the Emerging Markets

Our Mission…
To be the premiere bank, responsive to the needs of our target market customers, recognized for
consistently superior service quality and innovative products, thereby delivering superior value to our
stakeholders

Core Values…

 Customer Focus

Relentless focus on understanding and fulfilling customer needs through superior service.

 Innovation

Continually generate, validate and implement creative solutions to business challenges

 Meritocracy

Ensure a fair recruitment process and closely link recognition and reward to performance against
goals, irrespective of personal relationships, gender, religion or ethnicity.

 Integrity

Uncompromising financial and intellectual honesty to the organization and oneself with
relationships based on mutual trust and openness.

 Team-work

Willingness to share the glory of achievements as well as responsibility for failure

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 BUSINESS OPERATION

Organizational Structure of Branch Banking

PBs are
Mr. Iftikhar Hussain
BM Mr. Sajjad Hussain
Khaqan Manzoor Mr. Rab Nawaz &
Mr. Kamar Saddique
as Sales Executive

OM PBs (Personal
Aisha Riffat Bankers) and Sales
Executives

CSM CSM CRM

Sumaya Rafi Zubair Khan Saima Iqbal

CSO CSO CSO CSO CSO CRO CRO

Saima Abid Naseer Tariq Murtaza Aisha Aamir
Khan Hussain Akhter Mahmood Waseem Sarfraz Cheema

Central Office
Lahore or DBRG BM Branch Manager
PB Personal Banker
OM Operations Manager
SE Sales Executive
CSM Customer Relationship Manager
OCO CRM Customer Services Manager
Saeed Ather
CSO Customer Services Officer
CRO Customer Relationship Officer
OCO Operations Control Officer
BAO Branch Accounts Officer
BAO
Zeeshan Zufiqar

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 SWOT ANALYSIS

A SWOT analysis is used as a framework to help the firm develop its overall corporate, marketing or
product strategies. Strengths and Weaknesses are internal factors, which are controllable by the
organization. Opportunities and threats are external factors, which are uncontrollable by the organization.
During My internship period, I closely studied the SWOT of Union Bank Limited and is described below

STRENGHTS

Market Share
Union Bank is the eighth largest bank in Pakistan by market share of assets (having total assets of $2
billion) for cash consideration of $431 million. It serves approximately 400,000 retail customers through its
extensive network of 65 branches in 22 of Pakistan’s major cities, and operates a small but growing
wholesale banking business. Union Bank has successfully gained the market share and profitability via
focusing on innovative consumer banking products and services.

Excellent Customer Services

Union Bank provides excellent customer services and constantly makes the improvements through its
state of the art programs CMP (Complaint Management Program), ISM (Internal Service Measurement)
MSP (Mystery shopping Program) and CSS (Customer Satisfaction Survey).

Union Bank stood top in the Mystery Shopping Program competition for the period January-June 2006.
The target competition consisted of ABN Amro, Citibank, Standard Charter and Bank Al-Falah. Union
Bank stood at 87% whereas the competition closed the first half of the year with an aggregate of 76%.

Real Time Online Services

Union Bank offers real time online services to its customers. Its branches are connected and supported
by a sophisticated Computerized Network that makes use of real time online softwares. No matter where
the customer holds his/her account, to him, any branch is like his/her own branch moreover, Union Bank
has 24 hours state of the art call center that helps out customers.

It has also introduced Internet banking and has launched a unique debit card, which is called the
"shopping card". It is an internationally accepted debit card and is linked to all of customer’s current
account, savings account, and personal loan account and can accessed overseas through the Visa
network. Union Bank was the first only bank to offer this service in Pakistan to their customers.

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Innovative IT Technology
To increase employees work efficiency, Union Bank makes use of high-end distributed softwares such as
Autos Tracking System, OSMS and CTL, Lotus Notes. Such softwares immensely increase work
efficiency of employees as well as business processes and reduce the chance of error.

Seasoned Employees
Union Bank benefits from a strong independent local management team with a wealth of experience from
leading international banks. Union Bank keeps most qualified and experienced staff. Most employees are
rendering their services in the banking sector for more than a decade. Yet they encourage the young
talent for they are well aware of their long-term investment.

Increased Employee Productivity Through Training And New Techniques

Union Bank always seeks to increase employee productivity through a combination of training and
implementation of modern human resource techniques. Frequent in-house and external training
programs, seminars are carried out to help the Bank in maintaining and developing an efficient work
force.

Culture of Working Towards Cooperate Goals

Union Bank’s organizational members are its strongest asset who together work towards the attainment
of cooperation goals through dedication and devotion.

Well-Diversified Consumer Portfolio

Union Bank’s has well-diversified consumer portfolio. This diversification is giving it immense profitability
and respect within society. It can be judged from following.

Country's First Agriculture Credit Card

Agriculture generates 25% of Pakistan’s GDP. It is really only the public sector banks that have been
lending in this area in the past. Union Bank is the first private Bank to hit the nail at the right position at
the right time by launching "Kissan Card" which offers exclusive benefits for farmers purchasing crop
inputs or fuel. Currently the trial is between 5,000 to 8,000 credit cards in the first year, which is going on
quite well, and hopefully by the end of next year, it will have a mass launch of this product throughout
Pakistan.

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Country’s First VISA Debit Card
The total loan portfolio on the banking side is 1.35 trillion rupees ($30 billion) of which only 10% is in
consumer banking. So mortgages, auto finance, credit cards, personal loans are less than 10% of the
total balance sheets of the banks. The rest is in corporate, agricultural, or some SME banking.

Union Bank scratched the surface of this huge market knowing that anyone who has the first mover
advantage will go and capture a higher market share and be in a good position to defend it later on. This
is exactly what it did by introducing first debit card.

Shifting the Paradigm in SME (Small and Medium Enterprises) Banking

Union Bank is the first bank that is shifting the paradigm in SME Banking by treating each SME industry
as a business segment having its own research and its distinct credit criteria. Tana Bana product in textile
is just one illustration of this strategy. Union Bank is going after vendor financing and electronic finance
facilities for retailers and wholesalers of electronic products. This is being done on a programmed basis
and is going to change the way SME banking is being done in Pakistan.

American Express Credit Card

Union Bank had to have either a premier name that they did not have, or a premier brand to lift it. So
Union Bank bought the American Express franchise for the credit cards. The strategy was to go into the
top end with American Express to boost the bank’s brand name. Express card acquisition succeeded in
lifting the name of Union Bank by issuing in the space of one year 120,000 cards. With this launch Union
Bank became a force in the highly competitive Cards business in Pakistan. After wards, Union Bank
launched the Visa line whose success is more pronounced because people know that it is from the same
Union Bank that issued American Express cards.

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WEAKNESSES

Low Market Share

Union Bank needs to do a lot in order to increase its market share that currently gives it the standing as
eighth largest bank in Pakistan. Banking is still a growing sector in Pakistan and the market has not come
to the saturation point as it has in some developed countries.
Though the competition is tough in this sector but an emerging bank can still gets an edge in the market
through its tactful and customer focusing strategies.

Lack of Sophisticated Performance Related Incentive Systems

Union Bank provides worthy allowances to its permanent staff in Branch Banking. However most staff in
Consumer Banking is not completely satisfied with the inducements. This dissatisfaction sometimes leads
to less motivated employees in consumer banking which in turn can effect its business efficiency.
Moreover, permanent staff is not given any performance related incentives. As a result of this, an
inefficient manager or employee is earning the same as an efficient employee who is the real asset for the
organization.

Low Brand Loyalty

Union Bank has still not got the edge where the consumers become loyal to its products and services.
Mostly customers become its customers out of no reason than request from a personal banker. And
talking about consumer banking, though credit cards awareness in our middle class society has gradually
improved but not up to the point where they can compare the perks that one Bank is offering and other is
not. Truth must be said, most customers do not even know the intricacies behind the term “interest free
days”. The point is, consumers do not know of the product being offered so how can they become brand
loyal?

We can say that Autos is a business where consumers can become for consumers are associated with it
for more than a decade unlike credit cards but UBL and many other banks are leading the market and
hence consumers are more loyal to them and will continue unless Union Bank upgrades its Autos
Financing System by focusing consumers.

Lack of Promotional Activities

Union Banks Services and products are excellent but I feel that there is a lack of appropriate promotion of
these innovative products and services e.g. being an American Express card holder, I did not know that
Ufone and Union Bank has special alliance that facilitates to avail free Ufone connections and Ufone

8
special packages with International Roaming, GPRS, and MMS including security deposit waivers to the
American Express card holders till now when I had to do a little research for my report.

Union Bank mostly targets its existing customers and relies on its sales executives and personal bankers
to make new customers. With a little spending in promotional activities such as advertisement, through TV
media and Radio, which are rapidly gaining new grounds in Pakistan, it can attract a large number of
consumers who are unaware of such existence of services.

Conflicts Among Employees

Conflicts among employees are bad for any organization. They not only affect the work efficiency of
employees involved but of other colleagues as well and certainly the organization. Though employees
work together towards cooperation goal but being an intern, I felt the tension in the environment and
disliked it. Conflicts must be resolved, reported and investigated to enhance a peaceful and friendly
environment.

High Staff Turnover in the Banking Sector

Turnover rate in the banking sector is a little higher than other sectors. Union Bank spends much on its
human resources and when a trained employee leaves the organization, it is as if the Bank has got
deprived from its valuable asset. Union Bank needs to put more concentration on its human resources by
providing more attractive incentives.

9
OPPORTUNITIES

Growing Credit Cards Market

The current level of information technology and its application, though on the increase, is rather limited in
Pakistan’s financial services industry. Credit cards as well as ATMs are relatively new concepts in the
local market and have recently been recognized as profitable business lines by the local banking sector.
Acceptability of credit card transactions in Pakistan is growing. Over the last two years, credit cards have
been able to penetrate the middle and upper income salaried class primarily. These markets still have far
greater potential for growth and no doubt, in coming days, this business will flourish a lot and Union Bank
is already on its way in gaining an edge in this business.

International Emerging Markets of Africa, Asia, the Middle East, and Eastern Europe
Though Union Bank has successfully established international operations in Sri Lanka where it was
warmly welcomed. Union Bank’s strategy is to diversify into emerging markets and this strategy can work
wonders in the International emerging markets in Banking Sector. As Mr. Shaukat Tarin, President and
CEO of Union Bank said,

“We are going to go mostly to emerging markets because that is where

opportunity lies. I don't think we should go and compete with the best banks
in the U.S. and in Europe because our strength will be in the emerging
markets of Africa, Asia, the Middle East, or Eastern Europe. So first we will
go to these emerging markets and will try to replicate what we are doing here
in Pakistan”

Changes in Society Beneficial to Banking Sector

A drastic change in Pakistani society is its awareness to computer technology and its perks especially in
middle and upper class. Pakistan still has limited net penetration but it promises to increase in the next
few years as IT education becomes more common and use of computers at home and workplace
increases. This all leads to significant impact on banks when people would soon prefer internet banking
access in there homes which is right now in embryonic stage. Union Bank has already taken the first step
towards this Internet Banking that will proof useful in future competition. However it still needs to do a lot
more and should plan of providing easier to use and sophisticated online platforms to its customers.

10
THREATS

Dominance of Large Local Banks

The dominance of the five large banks (NBP, HBL, UBL, ABL and MCB) in the domestic banking industry
is obvious given the size of their branch networks from where they are able to generate large amounts of
cheap and stable deposits.

They are also able to attract the most profitable clientele - the middle class businessmen - who require
services, which demand the banks to maintain widespread presence in Pakistan. When we compare,
Union Bank that is a private sector bank, its operations are too small to justify such a large presence. The
strength of these banks in terms of deposit generation may only be challenged in the event of a
substantial consolidation in the private sector.

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 MARKETING STRATEGIES

Union Bank strongly believes in “winning the customer by winning his heart” through complete satisfaction
of his/her needs. Union bank’s marketing strategies are more towards making their existing customers
loyal because they believe that it is their customers who provide them with new customers. Union Bank
uses KYC (Know your customer forms) to have complete association with their new customers.

DEPOSITS

Target Market
Personal Bankers target markets include businessmen, salaried individuals, housewives, retired
individuals and anyone who has the potential of providing legal deposits to the bank.

Promotional Strategies
Promotional marketing has various types; from what I can recall there is direct marketing and indirect
marketing. Direct marketing is a discipline within marketing that involves the planned recording, analysis
and tracking of individual customers’ response and transactions for the purpose of developing and
prolonging mutually profitable customer relationship.

Direct marketing is a form of marketing that attempts to send its messages directly to consumers using
“addressable” media, such as mail and (increasingly email), telephone and personal meeting with
customers. Therefore, direct marketing differs from regular advertising in that it does not place its
messages in a third party medium, or in the public market, such as billboard to a radio commercial would.
Instead, the marketing of the service or commodity is addressed directly to the target customer

On the other hand indirect marketing includes such types of advertising tools like billboards, TV
commercials where no immediate response can be seen neither can be measured. No matter what the
promotional strategy, as Mr. Kashif, Team Manager of Credit Cards Department in Consumer Banking
said

“A successful product or service means nothing unless the benefit of such a

service can be communicated clearly to the target market”

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Union Banks promotional strategies consist of

Public Relations
Union Bank strongly aims to develop positive relationship with public. Union Bank donated Rs.18 Million
to the President’s Relief Fund for Earthquake Victims in 2005.

Direct Mail
There has been a massive growth in direct mail campaigns over the last few years. Union Bank has
complete databases, which contain names and addresses of potential customers.

Direct mail allows Union Bank to use their resources more effectively by allowing them to send publicity
material to a named person within their target segment. By personalizing advertising, response rates
increase thus increasing the chance of improving business.

Internet Promotion
Owning a website is a now a crucial ingredient to the marketing mix strategy of any organization. Union
Bank’s customers can now obtain instant information on products or services to aid them in their crucial
decision. Further Union Bank also facilitates its customers through I-Banking. Customer can register on
the web site and can enjoy a host of services.

Personal Selling (Push Strategy)

The foremost Promotional Strategy of Union Bank is Personal Selling i.e. Selling a products one to one.

Direct Marketing
Personal Bankers at Union Bank, whose primary job is to bring more and more deposits to the
bank, make use of Direct Marketing techniques. First of all these PBs identify their sources from
the reference groups and track down their likely to be customers. According to a PB Mr. Rab
Nawaz at Union Bank,

“It is all a matter of keeping your eyes and ears open. While meeting with a
potential customer, it is most likely that you can get a new reference for a
new customer”

Once they get a reference from their existing customer or relative or colleague, they try to get as
much information as possible about their potential customer. Then they give a call to the
customer and try to convince him/her over the phone. Customers with greater potential are asked
for appointments for a face-to-face meeting.

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 Customers who provide the bank with heavy deposits are given special treatment. It is common
for the Branch Manage Mr. Khaqaan Manzoor to give formal meals in restaurants to such
customers.

Product Strategies

Augmented Product
With every new account opened, Union Bank provides a free chequebook and a free debit/shopping card.
Other than that, if a customer maintains an average balance of one lac, he/she has the facility of making
two DDs free of any charge.

Augmented Personalized Services

Personal bankers are dedicated to provide with the best possible attention, advice and services to their
customers aside from regular.

CREDIT CARDS

Push Promotional Strategy

Union Bank makes use of push promotional strategy to promote the credit cards business. Through this
promotional strategy, Union Bank makes use of its sales force and trade promotion activities to create
consumer demand for credit cards.

Mission Statement
“To create superior value for our customers through exceptional service
delivery and innovative payment product concepts while leveraging our
partners’ global expertise and infrastructure, meeting the life-stage needs of
our target market”

Positioning
The Credit Card meets the everyday usage needs of financially responsible consumers who desire the
flexibility offered by the credit cards. It provides the high level of quality customer service.

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Target Market
The Credit Cards are targeted towards customers who are financially responsible, middle and upper
income consumers who seek greater financial flexibility, a mix of local and global services and support
and demand a high level of quality and service

Target Market Profile

Aspirant
Financially responsible
Need for financial flexibility
Price and image conscious
High everyday retail use, as well as local travel and entertainment use

Approved Cities
Karachi
Lahore
Islamabad
Others (All Cities where Union Bank Branches exist along with Collection and Verification
infrastructure)

Risky Categories
Property Dealers/ Real Estate Investors
Agriculturists/ Politicians/ Landlords (can consider if exporters/business)
Manpower Suppliers / Overseas Employment Agencies
Expatriates
Non-Resident Pakistani’s
Lawyers/ Journalists (exceptional approval only by Credit Manager/ Business Head)
IT Schools (exceptions include multinational collaborations like NCR, Microsoft and schools operating
for more than 2 years.)

15
 BUSINESS PROCESS ANALYSIS

Auto Financing Process

Union bank finances only new car models of 2002 or higher models. When a consumer leases a car, he
has to make the payment or installment on the 1st of every month. If the customer does not makes
payment then .1% additional interest is charged. If the customer desires to get rid of the installments then
he has to make a one-time payment plus 5% penalty. Markup rates can increase and the customer is
liable to pay it. The process of leasing a car is as follows

Step 1 - The chooses a car to be financed or leased

Step 2 - An application attached at the end of report is filled out and signed by the consumer
Step 3 - KYC form (Know you customer form) is filled out
Step 4 - The Sales Processor rechecks the documents and enters the whole information in the ATS (Auto
Tracking System).
Step 5 - This soft copy and the original file are sent to the CIU department who tries to find out objections
and reject that application.
Step 6 - If no objection is found with the provided documents and evidences, then the copy of record is
forwarded to Verification Department whereas
Step 7 - The original documents are sent to credit analysts at Lahore.
Step 8 - When credit analysts pass the case then the application and forms are sent to Karachi to COPS
department where the case is filed as pending at operation.

Step 9 - The COPS ask for legal documents. Upon receiving legal documents, the Head Office issues the
purchase order.

Step 10 - This purchase order and a dealership acceptance form are given to the customer.

The Bank makes the purchase of the car; the dealers give away two keys one goes to customer and the
other to HO (Head Office). The financed car is always insured to an insurance company for which
customer has to pay.

The whole process is lengthy and complex and customer must get carefully as much information as
possible so as to avoid any trouble in future.

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Weaknesses of this process

The process is complex and time consuming

Strict policies in Autos make the whole process very complex and unpleasant for customers. This
can result in the customer diverting to UBL (United Bank Limited) Auto Financing, which is a
major competitor of Union Bank in Autos department.

Down payment before getting the vehicle

UBL has such policies that straightly go into consumers benefit e.g. UBL receives down payment
from consumer after he takes the car home unlike Union Bank’s. Besides, if the application
rejects then the customer is refunded the down payment with Rs. 2000 deduction and customers
sometimes get frustrated on that.

Strict verification department

The VU department is adamant to reject the application. Even small grammar and spelling
mistakes or any cutting on the documents attached at the end of report could lead to sending
back the documents for correction.

Consumers Prefer Dox rather than No Dox

Nowadays, a large population of consumer prefers car financing through No Dox (No Documents)
also known as BAC (Branch Acquisition Channel). Through BAC, a consumer comes to know just
within a day whether he/she can finance a car or not. The No Dox process requires merely the
following

Last six months bank statement showing average balance as 1 lac Business proof in the form of

 Partnership deed
 Rental Agreement
 Salary Slips
 4 to 5 lac rupees deposited in Union Bank for just one week
 ID Card Copy
 Two Snaps

Then I read an article in newspaper that I would like to share. The outlines are as follows

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 UBL Auto Financing
UBL finances over 2000 cars per month. Its car financing features are as follows

Zero Pre Payment Penalty

UBL does not charge down payment and processing charges till application is approved

PAYS (Up/Down)
PAYS is a revolutionary feature and heart of UBL’s Drive Philosophy. It provides
 Consumer driven facility where customer can distribute the quantum of payments over
period of seven years on his/her own will.
 Consumer gets free car tracking device
 Consumer can take payment holidays

Car Replacement Plan

This plan provides value added financing solutions to their customers this plan facilitates life
Insurance, maneuver the loan tenure and Opt for financial payment

Recommendation
Clearly, in the presence of such major leading competitor, Union Bank does not seem to get a competitive
market share in near future. Union Bank should pay more attention to its Branch Acquisition Channel with
new competing strategies and should continue the Dox Car Financing as well for there are still consumer
markets that cannot afford to arrange five lac rupees for a week.

18
Autos Collection Process

Collection is defined as obtaining payments from delinquent accounts or from customers who are close to
availing the maximum of the facility allowed. Collection process continues for six months, after six months
the process becomes recovery of funds. Payers could be

Prompt payers
Good but slow payers
Willing but unable
Able but Unwilling

Delinquent Accounts
Union Bank classifies an account as delinquent when the monthly amount due is not settled on the due
date. After an account is stated as delinquent, special efforts are needed to be carried out for collection.

1-29 DPD is equal to 1 payment due (Front Range)

30-59 is equal to 2 payments due (Mid Range)
60-89 is equal to 3 payments due
90-119 is equal to 4 payments due
120 onwards is equal to 5 payments due

Collection could be In-house or external as follows

In-house Collection
In-house collection can be made through
Telephone calls
Letter Dunning (Delinquent payment letters are generated according to the type of delinquency)
Visits; Customer walks in (Customer may wish to visit and meet with RCM Regional Collection Manager)

External Collection
When In-house fails, legitimate process is carried out which follows repossession in which physical
confiscation of the asset is carried out after legal notice has been sent.

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Collection department performs the following

 They enforce customers to make payments

 If more than three payments are over due, the vehicle is captured in possession.
 If customer agrees to pay then amount charged is outstanding payments plus extra charges.
Otherwise auction is carried out.
 If after auction, dues still remain to be paid by the unwilling customer then court case can be
registered against consumer.
 If a customer does not pays on due date he/she can becomes a defaulter at CIB.

CIB (Credit investigation beaureu)

If a customer does not make due payments for three months, he/she becomes a defaulter and his name
is sent to CIB. Afterwards if the customer pays then his name can be removed from defaulter list. Every
bank to identify its new customer as good or bad refers the defaulter list.

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Voucher Audit Process

Verification of Transactions Made By Cashiers

Every morning, the voucher audit process start from the submission of debit and credit vouchers of the
previous day by cashiers at the back office. The head office sends the printout of TRL to all Union Bank
Branches. This TRL contains the transactions made by cashiers. The order of the transactions listed is by
the account numbers. So upon receiving the vouchers, the following steps are carried out.

 Separation of vouchers of this branch and other branches

 Arranging both vouchers in ascending order according to account numbers.
 Matching the vouchers one by one with the related transaction in the transaction list.

The following things must match for credit vouchers.

 The account title on the credit voucher must match with the title on the TRL.
 The amount written on the credit voucher must match with the one written on TRL.
 If deposit is through cheque of Union Bank then the cheque number written on credit voucher
must match with the one written on TRL.

If all these things match this means that the entry made by the cashier was correct. While carrying out this
process, the credit vouchers are examined carefully for any errors. The following things are examined

 The date entered on the credit voucher must be correct

 Account number is entered correctly
 If the payment is through cheque, cheque number must be mentioned
 The amount written in numbers must match with the amount written in words
 There must be no cutting or over writing

Other than this, stamps are checked

 Every credit voucher must contain the uploaded stamp

 If payment was made through cash then cash received stamp must be there
 All credit vouchers must contain the signature verification stamp
 If credit voucher is for transfer, then transfer stamp must be there

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  Credit voucher must contain the clearing stamp if the instrument presented for funds deposit is of
some other bank
 Related signatures of cashiers must be there

The following are needed to be matched for debit vouchers.

 The account title on the debit voucher must match with the title on the JRC.
 The cheque number on JRC must match with the one on debit voucher.
 The amount written on debit voucher must be the same as on JRC

While carrying out this process, the debit vouchers are checked carefully for any errors. The following are
checked carefully.

 Cheques must not be post dated

 Cheques must not be staled
 All required stamps must be there
 The amount written in numbers must match with the amount written in words
 There must be no cutting or over writing
 If there is any sort of over writing, customers’ signature must be taken near that area

Other than this, the following stamps are checked

 If the cheque is crossed, this means that the amount specified on the cheque can only be
transferred to another account and cash cannot be paid. If there is crossing stamp on the cheque
then there must be payees account credited stamp at the back.
 If the cheque is not crossed and was presented at Union Bank then cash paid stamp must be
there.
 If the cheque carries some other banks stamp then it must also have clearing stamp on it for that
cheque had come to union bank after passing through clearing process.

 If the cheque contains a clearing stamp then it must also contain Received for final realization
stamp
 Signature verification stamp must be there
 If the account title written on the cheque is of some company then it must also carry the company
stamp.

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 LEARNING AS A STUDENT INTERN

I started my internship at Union Bank on 17th July 2006. I reported at the University Road Branch promptly
at 9:00 am in the morning where I had an orientation and then I was placed at the Customer services
Department .I was to report to OM, Ms. Riffat Aisha, and during my working tenure she supervised me as
well.

DUTIES

During my internship period at Union Bank, initially I was assigned no particular duties. It was if I had
found some modern archeological plot equipped with knowledge. It was completely up to me how much I
could dig out according to my strength and capabilities. But still there were some regular duties that I was
needed to accomplish efficiently and with great responsibility as follows.

Vouchers Audit

One of my regular duties was to carry out the audit of debit and credit vouchers. This department comes
under Mr. Saeed Ather who is Operations Control Officer at Union Bank and I worked under his
supervision. Audit of vouchers is a lengthy and tedious and hence wearisome process. It requires
constant attention and any negligence can lead to fanatic situation.

Firstly we have to sort all the vouchers in the same order as it appears on the TRL (Transaction List) so
that it could become easier to match the vouchers with their corresponding entry on the list. Once sorted,
each and every voucher is carefully examined for stamps and signatures and also that none are post
dated or stale. After satisfying ones self, the transaction on the TRL is underlined.

Any objection in the vouchers is reported and is taken care of accordingly. The purpose of matching is to
make sure the cashier did not miss anything and all the transactions were made correctly.

In the end, the transaction list is revised to make sure that no transactions were overlooked and that
every transaction that appears on the TRL is underlined, a transaction that is not underlined suggests that
the related voucher is missing.

23
My job as CRO (Customer Relationship Officer)

My job as CRO was a completely new and exciting experience. CRO is a person who interacts with every
customer who steps into the bank and guides him/her according to his need and business. I do not think I
have interacted with such large number of people as CRO in these six weeks than in my whole life.

As CRO, I learnt a lot of things, not only work related or career related but things, which are good for
one’s character as well. For instance in my experience I learnt how to be patient when dealing with
customers, it became so irritating at times. But then looking around, and seeing how the other colleagues
worked with customers everyday and observing their tactics made me realize the art.

Every customer who arrives at the Bank needs a different treatment because different customers belong
to diverse backgrounds and set of values and beliefs. Some are educated, others uneducated and cannot
even write, some are rude, other are cooperative and polite, some are in urgent need while others are
more trivial, some need an outstanding treatment and are fully aware of their rights as customers whereas
others are afraid of asking even for their rights. I had to interact with all and guide them.

I also guided customers who interacted through phone and this requires immediate feedback, good
communication, quick thinking and fast decision-making skills. This interaction with so many people built
huge confidence in me.

I also maintained the record of outward and inward mails, which included OBC as well, that are received
on daily basis. The gain of such record is that we could always trace back whether a mail was dispatched
or not in times of uncertainty.

Maintaining CBR, CBI and Debit Cards Record

During my internship, I worked in CRD (Customer Relationship Department) under the direct supervision
of Ms. Saima Iqbal who serves as Customer Relationship Manager at Union Bank. I was also assigned
the duty of maintaining the record of chequebooks and shopping cards. Chequebooks arrive from Head
Office at Karachi on daily basis upon receiving chequebook requests. The request is received on CBR
(chequebook request form) from customer. All the requests at the end of the day are sent to head office

24
through Union Bank’s special online system OSMS. The next day, chequebooks arrive through courier
service. An entry is made in OSMS confirming that chequebooks have arrived.

The record of these received chequebooks is maintained manually in a register to take customers
signature upon receiving. The customers are informed through telephone to come and collect their
chequebooks. Upon customer arrival, CBI (chequebook issuance) that is in the chequebook is signed by
the customer and is kept safely for record whereas the CBR initially given by customer is returned
because CRD does not need it any more. Another signature of customer is taken on chequebook register.

A customer can also authorize a person to collect his/her chequebook if he/she cannot come in person.
The account holder fills out an authorization form and authorized person ID card is submitted and
signatures of both are taken. The authority holder can be one time or full time.

Rests of the chequebooks that are not delivered on that day are kept safely in the locker room. If a
customer does not come to collect his chequebook within 90 days, they must be destroyed. Ten days
before destruction, the customers are again informed to receive their chequebooks. The process of
destruction is carried out on 1st and 16th of every month.

I was also to maintain the record of VISA shopping debit cards. Debit cards requests are received on
Shopping Card request form attached at the end of report. These request are handled just like
chequebooks requests difference is that debit cards must be destroyed within 40 days from the date of
issue.

25
ACCOMPLISHMENTS

New knowledge acquired

The core of my internship was the knowledge I acquired. Being Computer Science graduate and
completely supported and helped by my family, I never felt the need to even step into a bank and open an
account. I was entirely ignorant of a bank’s business processes. But this internship program has made me
aware of most of bank’s business processes and hence it has built in me, immense confidence to step
into bank and carry out the routine banking tasks.

New exposure

My internship experience has given me a completely new industry exposure in the banking sector, which
includes both the consumer banking and branch banking. After graduation, I strived to have some
professional experience so that I could overcome my weakness of hesitation from social circle. I can say
that for me the best thing about MBA was this social and professional exposure that I longed to have.

People Diversity

Being an introvert personality, I never had the precious experience in people diversity. During this
internship period, I interacted with so many people both customers and employees with diverse
personalities and behaviors, different age groups, some far too senior and experienced that it has given
me confidence to interact efficiently with people.

Tactful communication; A MUST

From this internship program, I have realized that the skill to communicate tactfully is the thing we should
learn and polish, especially in dealing with customers. It is not the most important if you don’t have the
required skills at this moment. Rather, being creative in problem solving and being a quick learner are the
keys to success in the fast growing banking sector.

Another important thing regarding communication that I have learnt is; no matter how far we go in
adopting English language; practically and within organizations, staff prefer to communicate in their
mother language i.e. Urdu, because their priority is to efficiently complete the work to attain the corporate
goal of the organization in minimum time and they simply do not let formalities come in their way because
actions speak louder than words.

26
Working towards corporation goal

During my internship, in the last weeks, I started to feel part of that organization. I actually felt working for
that organization though I was merely an intern. Techniques like how to work towards the corporation
goal, tackle a problem, are not something that can be taught in classrooms and this internship has
definitely trained me in it.

Larger social circle

I have come to know and be respected by a number of professionals who are lending their services to the
banking sector for more than a decade. I feel honored that I have worked with such seasoned
professionals and have experienced broader social awareness.

Self-discoveries

During my internship period, I self discovered that I could interact well with difficult people and that I have
the tendency of being liked by other people, which is because I believe that to earn respect, one should
give respect. Moreover people find me their secret holder and trust me and that is perhaps because of my
simple rule, which is “no backbiting”.

Career Awareness

This program was a career awareness program as well in the sense that it helped me in identifying my
interests. What I have identified is that I want to do some thing dynamic and not an assembly line kind of
job. Moreover, I have found that in Pakistan, it doesn’t matter what is your field of education meaning that
as long as you have the slightest idea of job in hand and you are an active learner, you can work
wonders.

Opening up new horizons

I must admit that such interaction in that respectable professional community will help me in seeking out
job opportunities. All this experience has transformed me into a mature person with multiple perspectives
and has put me one step forward to a better career, and also broadened my horizon.

Confidence building

27
One thing I lacked and strived for was the lack of confidence in interacting in a professional environment.
Union Bank’s supportive culture made me feel comfortable talking to my superiors regarding problems
encountered at work. I learnt to always be responsible and have the sense of ownership when problems
appear. This all has definitely helped me build up confidence and had made me well equipped for my
career.

28
PROBLEMS ENCOUNTERED

Difficult time in getting used to new environment

Initially I had difficult time in mixing with organization members and felt uncomfortable in that new place
with new people. However, after some time, I became a part of it just like everyone else and felt
completely comfortable.

Working Ladies Still Not Respected

Second problem that I encountered is very common in our society and that is women are assaulted
emotionally; though trend of working women has immensely increased in our society and people have
started to accept a lady working on a descent job outside her home but unfortunately, we know too well
that our society, culture, and citizens live and function far from ideal.

I must briefly quote here the actual incident that took place; an officer simply refused to guide an intern
because apparently she was a female and her presence was not welcomed in his office. It does not
matter whether he actually meant it or not, his statement hurt the intern emotionally and for the time being
she was ready to leave internship. Then another intern was remarked on having her hair lose.

29
NEW KNOWLEDGE ACQUIRED

During my internship, I came across with an attention-grabbing issue of money laundering. I studied it and
it is briefly described as follows

Money Laundering

Money laundry covers activities and procedures to change the identity of illegally obtained money so that
it appears to have originated from legitimate source. Money laundering encompasses moving the money
back and forth in financial institutions to hide the money's

Origin
Ownership
Character, which is tried to be changed from illegal to legal

Generation of Illegal Wealth

Illegal wealth can be generated from

Drug Trafficking
Robbery to Theft
Tax Evasion
Smuggling
Terrorism
Profits derived from environmental violations

Three Basic Stages in Money Laundering

Placement
Placement is carried out by splitting of large sums into smaller amounts known as smurfing and
 Deposited into bank accounts.
 Used to buy financial instruments e.g. cheques, securities in the name of front man
 Collected through accounts in other banks

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 Layering
Complex financial transactions are carried out that separate the money from its source. Each
transaction on its own appears innocent such as
 Purchasing assets Gold/Fine Arts
 Purchase of Traveler cheques or Stocks or Bonds

Integration
Money is brought back into legal economy to benefit criminals who created this wealth in the first
place.

How to Control It

 By monitoring card transactions

 Reliability of staff handling cash
 Transactions that do not make any economic sense
 Customers with large number of accounts with the same bank
 Transactions in which assets are withdrawn immediately after depositing
 Account shows virtually no normal, personal or business related activity but is used to
receive or withdraw large sums
 Through KYC (Know Your Customer)
 Trust Worthy Third Party
 Purchasing or selling of foreign currencies or substantial amounts by cash
 Purchase of large number of cheques by an interim customer

Who are Customers and Non Customers?

Union Bank keeps the distinction between customers and non-customers. According to Union Bank,
individuals who possess account with Union Bank are their customers and those who do not are non-
customers. To become a customer, an individual opens an account with Union Bank as follows.

How an Account opens?

Account opening is the first step towards establishing banker-customer relationship. A written contract in
the form of Account Opening Form (AOF) attached at the end of report must be completed and signed by

31
the customer who desires to open an account with the bank. The customer submits the required
information and submits the required documents.
Once all the required information is completed, the personal banker rechecks the information, gets the
required signatures from OM or BM and enters the mandatory information in the MOCHA information
system. MOCHA system provides a unique account number that is provided to the account holder. Then
an initial deposit slip is prepared so that the customer can make the first deposit.

How to make a deposit?

To make a deposit, customer needs to fill out a deposit slip attached at the end of report. Deposit can be
made through cash, cheque or draft. When the customer’s desired account is actually debited, depends
on the nature of instrument presented. For example if the cheque presented needs to be launched in
clearing then the transaction cannot take place immediately as in the case of cash deposit or Union Bank
crossed cheque deposit. Deposit voucher is marked with a number of stamps and can be signed by a
number of employees. A deposit voucher must not contain any over writing or extra markings. During
audit of deposit vouchers, a number of things must be carefully checked.

During my duty as CRO, I was surprised to the fact that a number of customers do not know how to fill
their deposit slips. Though it is not the duty of CRO to fill the deposit slips for customers but there is no
other option. Besides, deposit works as blood in the veins of Bank. I used to make sure that the account
number in which deposit is to be made is correctly written as told by the customer and used to urge them
to verify it before presenting it on the cash counter.

What is MOCHA Information System?

MOCHA information System is software designed specifically keeping in view the needs of Union Bank
Limited. This SW acts as the vertebral column of this organization. The sensitivity of this SW can be
judges by the fact that I was not allowed to capture a screen shot of this sophisticated SW. The
employees are well aware of the fact that this SW plays a vital role in the competition in banking sector.
This SW is used to open an account electronically. Once all the information is entered in the system, it
allots a distinctive number, which is to be quoted in all correspondence with the Bank relating to the
account.

MOCHA SW keeps history of all the transactions performed on an account. It maintains and manages all
the functions related to an account such as the balance remained in an account, time and amount of
transactions carried out, average balance of an account, customer details, customer contact details, the
serial number of cheques utilized by a customer.

32
Each and every computer terminal in the organization is installed with this SW with some limited access
according to the department. Each and every input in the system made; can be seen at any Union Bank
branch all over the Pakistan. Through this SW, Union Bank is competing in the war of real time online
baking systems.

This system is efficiently maintained and secured by the IT department. Customers’ inquiries about their
accounts are answered by getting the desired information from this system. This system not only
manages customer accounts information rather it is a complete accounting information system and is
used to maintain and manage all the accounts of the organization as well.

Only the authorized employees have access to this system. Entering a valid combination of user name
and password can access MOCHA system.

How inquires about account balances are handled?

Customers can inquire about their account related information by providing the account number on phone
or by coming in person. Customer satisfaction is priority of Union Bank. The culture of Union Bank is to
receive the phone call in maximum three rings. This culture helps Union Bank to maintain its position as a
leader in providing best customer services in banking sector.

Debit Card / Shopping Card

When a customer opens an account with Union Bank, he/she can request for a shopping card free of
charge for the first time. This shopping card can be used 24 hours to withdraw cash through ATM
machine. The request for shopping card is sent to the head office Karachi, where they are produced and
delivered to different branches. The maximum cash of 25000 can be withdrawal in a day through ATM or
debit card. The maximum limit of cash withdrawal depends on how much customer deposits in his/her
account.

What is a Bank Statement?

A bank statement is a statement that contains past transactions carried out on an account in a specific
time period.

How Bank Statement Requests are fulfilled?

Union Bank issues bank statements to all account holders after six months time period. Other than that, a
customer can get a bank statement any time upon request by filling out a bank statement issuance
request attached at the end of report, the presence of account holder or an authorized person is

33
mandatory. After the request is verified, the statement is printed out on the spot. The whole procedure
takes less than five minutes on average at Union Bank.
What is intimation regarding change of address of A/C numbers?
When a customer opens an account, his/her mailing address is fed into system for contact purposes. If
the customer needs to change his/her contact address, he/she is to fill the request regarding change of
address. The request is sent to he Head Office where the address is changed in the system.

What is CTL Program?

CTL program is used to track credit cards payments. The credit cards department has this program
installed in computers. Through CTL, collection department can inform the customer of each and every
transaction he made and where it was made or can check the amounts deposited on specific dates by the
customer. All the merchant machines around the globe are interconnected. That is how the customer
transactions can be traced out.

Lockers
There are three types of lockers small, medium and large, to rent a locker, customer has to fill a request
form, locker can be a joint locker of up to four individuals or it can be individual. In case of joint, signatures
and IDs and presence of all locker candidates is compulsory.

For every locker, customer has to submit a key deposit amount of Rs. 1500 for once which is non
refundable and also lien; Lien is an advance amount of 3xLockerRent that is refundable upon locker
surrender. Then there is annual fee of amount according to the type of locker. If customer does not submit
this fee, a monthly fee of Rs.100 is charged unless customer does not pay.

Lien against locker rent

Lien is an advance amount of 3xLockerRent that is refundable upon locker surrender.

Locker Keys
Inserting two keys can open every locker. One of the keys is kept with locker holder, whereas the CRM
keeps other one in custody.

Locker Breaking Charges

If a customer loses his/her locker key, that locker's lock has to be replaced by a new one with new keys.
Locker breaking charges are charged to the customer.

34
Locker Surrender
When a customer no longer wants to keep the locker, he/she has to surrender it. After surrender, the key
is put into pending which means that this locker cannot be rented to any customer unless a new lock of
the locker is placed with new keys.

Lockers with lost locker holders

If the annual fee is not submitted for 10 years, in that case the belongings are handed over to the State
bank of Pakistan.

Free Locker
If a customer is an account holder and he maintains an average minimum balance of 1 million, then a free
locker is granted.

OSMS (Operations and Services Management System)

Stop Payment
Stop payment instructions are accepted subject to the condition that item has not been paid. To stop
payment through an instrument, customer fills out a stop payment request attached at the end of report.
The instrument numbers are entered in the MOCHA system as soon as possible.

Vernacular Form (Letter of Authority)

If customer signatures differ a bit every time he signs then a vernacular form is signed by the customer
which states that the customer takes the responsibility if something goes wrong due to signature
mismatch.

Drop Box
A drop box is used so that customer does not have to wait to make monthly payments credit cards.
Instead the customer can make payment of the AMX or Visa card or leasing installments by dropping the
cheque and attached deposit slip in the drop box and can leave immediately.

Types of accounts

To open any account, a different set of documents and proofs are required

35
  Individual Account

An individual account is the property of only a single individual and hence only that individual’s
signature or presence is required to carry out certain activities.

 Joint Account
Two or maximum four individuals possess joint account. In this case, it is possible that one of the
two individuals can carry out the transactions with his authority alone.

 Sole Proprietor Account

This account requires Rubber Stamp, CNIC, request for opening sole proprietor account on firm's
letterhead and NTN certificate.

 Partnership account
This account requires Rubber stamp, List of partners, Partnership deed, Registration of
Partnership, request for opening sole proprietor account on firm's letterhead and NTN certificate

 Company Account
This account requires Memorandum of Association, Article of Association, List of Directors,
Certificate of Commencement of Business (only for Public limited companies), NTN certificate,
Rubber Stamp, Board Resolution, NIC of all Directors and Registration of Company.

 Association/Trust/Club/Society Account
This type of account requires NIC, Rubber Stamp, List of Members, Resolution, Copy of Rules,
and Copy of By-Laws.

Types of Cheques

 Self or Bearer
A self or bearer cheque is a type of cheque that can be cashed. The person who presents the
cheque is paid the amount written on the cheque.

 Crossed Cheques

36
 Crossed cheques can only be transferred into an account. They cannot be cashed. There are two
types of crossed cheques.

Simple Crossing
These instruments can be used by anyone, however the bearer of cheque will not be paid
cash instead the amount will be transferred in the account mentioned by the bearer.

Special Crossing
In Special Crossing, account title and account number are mentioned and the cheque
can be deposited only in the payees account.

 Order cheque
In order cheques, the name of person is mentioned who is eligible to get cash, the person has to
show NIC to get the cash.

Stale Cheque
A cheque is stale if it has completed its six months limit and it sort of expires and cannot be presented for
withdrawal.

Post-Dated Cheque
A cheque is post dated if it is presented but it face date is some future date.

Clearing Process
Clearing is a process that is carried out in order to verify that the cheque presented is collectable and the
account holder of that cheque maintains the balance that is written on the cheque. This process involves

 Presentation of cheque on cash counter

 Stamping
 Posting of shadow entries
 Printing of JRC of shadow entries
 Sorting of cheques according to banks
 Verification by comparing actual cheques received and that on the JRC and
 Making of outward/inward clearing sheet
 Verification of balance by matching manual and computer generated figures

All Banks representatives meet at National Bank in Sargodha where the clearing process continues.

37
OBC (Outward Billing Collection)
Outward billing collection is the same as clearing except that the cheques are received from other union
bank's branches located in different cities so that they can be launched in clearing locally.
IBC or Inward Clearing
When union bank's cheques are launched in clearing by other banks in the same city, they are received
by union bank as IBC at National Bank Limited.

Cheque Returned Memo

If a transaction cannot be carried out for a cheque presented, because of any reason, the cheque is
returned along with an attached memo attached at the end of report. The memo contains the reason for
return of that cheque.

Dishonored cheque
If account holder gives a person a cheque, such that the person cannot draw it due to insufficient balance
and the cheque returns with memo, it is the right of that person to register FIR against that account
holder. However, to register FIR, he/she must provide at least three consecutive memos.

Funds can be transferred through following security leaves

Pay order
To transfer funds within the city, an account holder can make use pay order. The advantage of
pay order against cheques is that the bank gets involve at two points. At first the pay order has to
be made from bank and the second point where the pay order will be presented for withdrawal.
Pay order is used to transfer funds in the account of the beneficiary however, if the account does
not exist then the signatures of two bank officers are required to cancel the effect of payee's
account only.

Demand Draft (DD)

The difference between pay order and DD is that, DD is used to transfer funds between cities.

Telegraphic Transfer (TT)

Telegraphic transfer is a fast way to complete transaction. To make TT, .1 % of the amount
transferred or 200, which ever is higher, is charged to the customer. The customer fills out funds

38
 transfer request form and pays cash. Suppose a person who has to receive the cash (TT) resides
in Islamabad, the Union Bank Sargodha will make a call to Union Bank Islamabad to give a
specified amount on funds transfer form to the person whose name was mentioned on the funds
transfer request form. The Union Bank Islamabad gives away the amount to that person by
keeping a copy of his ID card.

Traveler’s cheque
If a person needs to travel and he does not want to carry a heavy cash amount, he/she can make
a traveler cheque from a bank. This cheque can then be cashed from any branch in another city
of the same bank

Stamp Paper
Proprietorship deed is taken on stamp paper. There are different worth of stamp papers. Before 1999 the
deed was taken on stamp paper worth Rs. 150. After 1999 it is taken on Rs. 500 worth paper. This is so
because of government act.

Advice
In some banks, to make payments against demand draft to the beneficiary, advice is required. Advice is a
sort of code that is posted by the bank who issues the DD in first place. Any one does not know this code.
The receiver matches the advice and if matched, makes the payment to the customer. Unless advice is
not received, payment cannot be made.

Service Quality Programs

Three activities are carried out in service quality program at Union Bank

1- ISM (Internal Service Measurement)

2- MSP (Mystery shopping Program)
3- CSS (Customer Satisfaction Survey)

Through ISM, different activities are recorded whether they are performed within specified time e.g. Turn
Around time of customers at cash counter is recorded. Similarly, CRM keeps an eye that no phone should
ring more than thrice as a result of this, customers get fast response.

In MSP, a Union Bank agent arrives at bank and pretends to be a customer and checks out how he/she
was treated at the bank. Moreover, he/she also gives phone call to check the services on phone. The
shopper is equipped with hidden camera that can be used later for proving.

39
The employees at the bank deal with him like their regular customer and mystery shopper reports back to
head office of his experience at the Bank.

CSS is carried out by asking different questions related to Union Bank’s services from customers.

For every quality program, there are accuracy percentages that must be maintained in order to get the
highest performance scores.

CMS (Complaint Management System)

CRM at Union Bank receives the complaints through CMS. Any complaint that is resolved must be
entered into the system so as to keep a record.

A customer complained that his balance was showing greater number of deductions than it should. CRM
produced and reviewed his bank statement. Upon reviewing, it was found that he made three transactions
of 25000. Two of them were charged .2% of the amount withdrew which was informed to the customer
and was entered into the CMS.

Service Quality Department

The service quality department checks whether the services quality is maintained for example has the
customer been served within ten minutes after getting the token? Similarly has the phone been picked up
before three rings? These checks enable Union Bank to maintain and improve their services.

Host of the Day

Every day, there is a host of the day; the duty of HOD is to check the status of things such as Branch
entrance cleanliness, Security alarm system, Mobile Jamming equipment, water dispensers, Notice
Board, Brochures Availability, Plants and Planters, All indoor lights, Trash bins and a number of other
things. The status could be satisfactory or needs improvement. If it needed improvement then what action
the host took has to be mentioned.

Video Cameras
All the activities in bank are recorded on videotapes. The videos of last twelve months are maintained and
are placed in the locker room.

40
UNION BANK’S PRODUCTS

Every now and then, Union Bank offers new products to its customers. During my internship period, I
came across the following products.

Types of Accounts

Union Bank offers its customers to open different types of accounts, these include

Current Account

Current account is a deposit account subject to withdrawal on demand. This account does not bear any
interest. A maintenance fee of 200 is charged to accounts that do not maintain a minimum average
balance of 100000. Further types of current accounts are

BBA (Basic Banking Account) Account:

Basic Banking Account is a type of current account offered by keeping in view the needs of
salaried employees. There are no restrictions of maintaining the average balance amount.
However customer is restricted to that he/she can carry out only three maximum transactions on
that account in a month.

Business Account

It is a flexible current account that gives the freedom to transact wherever a business takes.
Customer can transfer his/her funds anywhere in Pakistan without the hassles of carrying Cash or
Travelers Cheques. Business accounts have the following features.

 The account that moves with you

Through Business Account customer can deposit and withdraw funds from any of 53
branches across 20 cities. And Online/Real time technology allows conducting a host of
banking services in any of branches. Through Business Account customer can

 Get Pay Orders/Demand Drafts anywhere in Pakistan

41
  Can immediately access account information
 Faster cheque clearing

 Bank at your convenience

Business Account allows customers to initiate inquiries and conduct transactions at
his/her convenience, 24 hours a day by calling at the customer contact center.

 A complete banking solution

Only Business Account offers the unique flexibility of availing Trade Finance, Overdraft
and Borrowing Facilities so that customer have greater control and better access to
complete banking solutions.

UNB Saving Account

Saving account is an interest bearing account. The minimum average balance requirement of saving
account is Rs. 100,000. It is the latest addition to Union Bank's ever-increasing portfolio of products. This
product offers a good rate of return and profit is paid out on a six-monthly basis.

Profit Rates

Tier Rate
Up to Rs. 100,000 0.10%

Over Rs. 100,000 1.00%

Mahana Izaafa

Mahana Izaafa is a saving account, which gives the best combination of both saving and current account.
It is a unique rupee saving account, which combines a high rate of monthly profit and flexibility of
withdrawal and convenience. The special tier structure ensures a higher profit on higher deposits. Profit is
calculated on daily basis, the higher the balance in account on a given day, the higher is the profit earned.
The profit is added to the account every month.
On opening an account, a free ATM/Debit card and a free chequebook are issued to the customer.

42
Profit Rates

Tier Rate
Up to Rs. 100,000 0.10%
Above Rs. 100,000 to Rs. 500,000 1.50%
Above Rs. 500,000 to Rs. 1 Million 3.50%
Above Rs. 1 Million to Rs. 5 Million 4.25%
Above Rs. 5 Million to Rs. 10 Million 4.50%
Above Rs. 10 Million to Rs. 20 Million 6.00%
Above Rs. 20 Million to Rs. 50 Million 7.00%
Above Rs. 500 Million 10.00%

Munafa Max

Munafa Max is a fixed deposit account with profit paid at maturity. The available tenures are 3 months, 6
months and 1 year. Munafa Max offers the highest rates of return.

Profit Rates

Tenor Rate
3 Months 8.00%
6 Months 9.00%
1 Year 10.00%
Max Up to One Year.

Ready Cash

Union Bank's Ready Cash is an evergreen personal line of credit that gives its
customers financial power with unmatched freedom and flexibility. Through ready
cash, customer can withdraw cash from his/her credit line using a cheque or VISA
Debit / ATM card. It offers lowest markup and no restrictions on where and how to
spend Ready Cash. Ready cash has the following features

 Instant credit up to Rs. 1 million

43
 An instant credit line of Rs. 75,000 to Rs. 500,000 can be received upon meeting the
criteria. Credit is automatically transferred into customers Ready Cash account.
 Lowest Markup
One of the distinguishing features of Ready Cash is its lowest markup.

 Pay as you utilize

Ready Cash offers to pay markup only on the amount utilized for the number of days by
the customer.

 Easy Settlement of the principal

Ready Cash gives the flexibility to revolve the credit line by only repaying 1.5% principal
in addition to the 1.58% mark up payment every month. The repaid principal will be
available in customer’s credit line for him/her to use again.

 No penalties on early repayment

Customer is free to repay as and when he/she feels like. There are no penalties
whatsoever on early repayment.

 Universal availability, Universal acceptability

Unlike a balance transfer facility, which is available only to those individuals that own a
credit card, Union bank's Ready Cash is available to all individuals that meet simple
eligibility criteria.

Autos Business

Uni Car

UNICAR is yet another product offered by Union Bank. Its greatest

flexibility is that the customer can choose from anywhere between 1 - 5
years leasing / financing period, with an additional option for an extended
6-7 years lease / finance period. Other than that, it has the following
features.

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Down Payment as low as 10%
With the UNICAR advantage, customer can make a Down Payment as low as 10% of the value of his/her
vehicle.

Cards Business

Union Bank’s Visa Shopping Card

Union Bank's Shopping Card is the Pakistan's first Visa Debit Card that is linked to
customers Union Bank Account. It combines the key elements of ATM cards, credit
cards, cheques and gives instant access to cash through local and worldwide
acceptance. With Union Bank's Shopping Card, account holders can now have
round the clock access to their Mahana Izaafa, Business Account, Savings Account, Ready Cash or
Business Power account from anywhere across Pakistan and around the world.

Union Bank's Shopping Card is the most convenient & useful way of replacing cash for everyday
purchases. Union Bank's Shopping Card is accepted at over 8,000 VISA merchants in Pakistan and over
13 million worldwide. It also functions as an ATM card and allows to withdraw cash 24 hours a day from
over 800 Union Bank, 1-Link and M-Net ATMs across Pakistan and over 864,000 VISA ATMs worldwide.

Upon opening of an account, customer can request for VISA shopping card free of charge. Additional
cards for joint account holders can be requested as well free of charge. However annual fee of Rs. 200 is
charged. Local transaction fee is NIL whereas international transaction fee is 2% of transaction amount.
VISA shopping card is sent to the customer inactive. To activate the card, customer calls 24-hour toll free
customer contact center at 0800-44-444 and gets a PIN code.

Through debit card, customer can shop up to 50,000 per day or his/her remaining account balance
whichever is less. However it also offers the option of enhancing the merchant transaction limit per day.
Besides drawing cash, customers can

 Inquire about the balance in their accounts

 Transfer funds between accounts maintained with Union Bank

 Change PIN code

 Obtain a mini account statement for the last nine transactions

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  Get an E-Statement every month that contains the summary of the retail and ATM transactions on
the shopping card by calling customer contact center and giving his/her Email address so that it
could be easier to track down the expenses.

 Receive global assistance while traveling overseas through Global Customer Assistance Service.

 Report lost /stolen card by calling customer contact center

Union Bank’s Visa Credit Card

Union Bank’s Credit Visa Card offers a host of features as follows

Cash Back
Cash-Back Program, allows consumers to earn while they spend. Visa
cardholders are reimbursed 1% on any and all retail transactions that are
made on Union Bank VISA Credit Card. This means that they are rewarded
not through points like other credit cards in the market, but through hard
cash. Cash-Back points are redeemable at the end of each year.

3% Minimum Payment
After receiving the monthly statement, cardholder has the convenience of paying only 3% of monthly
outstanding balance by the payment due date. While other credit cards in the market require to pay at
least 5% of outstanding amount.

BTF Balance Transfer Facility

Union Bank Gold offers it customers the opportunity to pay off the outstanding amount they owe on their
other credit cards at a rate lower than what they are paying on them. The balance on other credit cards
will be transferred on their Union Gold within 24 hours. It takes three working days for the clearing of the
cheque. Customer can choose any tenure and pay just 1.67% per month.

Free Credit for 51 Days

Service charges are not accumulated up to 51 days on Union Bank Visa Card hence giving the customers
ample amount of time to make minimum or full payment due. Above all if customer chooses to pay in full
each month, then they will not be charged a service fee on the monthly outstanding amount.

Supplementary Cards

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Union Bank offers up to six supplementary cards. Supplementary card transactions are clearly itemized in
monthly statements to know at a glance where the spending took place and who spent how much.

75% Cash Advance Limit

Visa cardholders can access cash up to as much as 75% of their available credit limit at all Union Bank
ATMs and through out the world at over 864000 ATMs carrying the VISA sign.

Complimentary Travel Accident Insurance

Each time a cardholder uses VISA card to purchase airline, bus or railway tickets, he/she, spouse and
any dependent children under 23 years of age are automatically covered under Travel Accident Insurance
against any sort of accident that may befall the card holder during traveling. The coverage amount is upto
Rs. 10 Million.

O2 Assurance
O2 assurance covers loss or damage to cardholder’s home contents caused by fire, lighting, explosion,
earthquake, burglary and armed holdups, cash and jewelry (at home or on person) against burglary and
snatching, financial loss re-imbursement (wherein cardholders are entitled to claim against the fraudulent
transactions on his/her credit card), and personal accident insurance, providing cover for accidental death
and disability and loss of identification documents.

Union Bank offers two plans for insurance coverage, cardholder can avail Plan A by paying Rs. 160 per
month and Plan B by paying Rs. 215 per month.

American Express Credit Card

Instant Recognition
The American Express Credit Card is warmly welcomed at
thousands of merchant establishments in Pakistan and millions
worldwide.

Revolving Facility
American Express Credit Card offers the option of paying monthly outstanding balance in full or
over a period of time. A service charge of only 2.25% per month gives an added comfort in
managing finances every month

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Balance Transfer
Card member can conveniently transfer the balances from their other credit or charge cards to the
American Express Credit Card with a balance transfer rate of 1.25% per month.

Express Cash
Card members can use The American Express Credit Card to avail instant cash advance facility
from all branches of Union Bank in Pakistan and over 550,000 ATMs worldwide.

Travel Service Locations

American Express Credit Card has the power to redefine traveling, whether within the country or across
the globe. The dedicated staff in more than 1700 American Express Travel Service Offices in over 130
countries is readily available to assist Card members with their travel-related needs. Invaluable
assistance can be provided for travel arrangements, car rentals, local area/culture information and hotel
bookings etc.

Union Bank Online

It is a state-of-the-art customer contact center, which offers real time advantage. With Union Bank Online
customers no longer have to take time out to visit any Union Bank branch for their routine banking needs.
With just a single phone call customers can now have instant access to a wide range of Tele-banking
solutions and personalized banking services from anywhere at anytime which in turn saves money and
time.

Key Features of Union Bank Online

By using Union Bank Online, customer can:

 Check his/her card and account balances

 Instruct issuance of pay orders and demand drafts

 Transfer funds between his/her own accounts and to a third party account

 Order issuance of chequebook

 Make his/her card or loan account payments

 Check transaction history of his/her accounts

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  Get his/her account statements through fax

 Receive information on various Union Bank products and services

 Obtain status of his/her issued cheques

 Find out status of his/her card or loan application

 Request balance or reference certificate

 Get currency exchange rates

 Find emergency and important numbers

 Issue stop payment instructions

 Register his/her comments and suggestions regarding Union Bank products and services

 Report loss of his/her chequebook

HOW EXPERIENCE IMPACTS MY CAREER

My internship experience has given me a realistic preview of my field of education. Now I feel that I am
better prepared to enter the world of professional work. I have come to know and been appreciated by a
number of professionals who are lending their services to the banking sector for more than a decade. I
feel honored that I have worked with such experienced professionals. I must admit that such interaction in
this respectable professional community will help me in seeking out job opportunities in the near future.

Each task I performed was a different experience in itself. By the end of it, I must say I realize my
potentials, I have realized that earning money is not so easy after all, it takes a lot of hard work and
devotion, and not to forget time. And I now know that if I want I can make things possible, and I also know
how good it feels to having accomplished something and being appreciated for it. I definitely have learnt
things, which will impact my career and my character.

The overall experience of my internship was very good; I have learnt the sense of responsibility in its
literal meaning. I am now capable of dealing with different sort of customers, and how to be patient while
doing so. Besides this I also gained knowledge about banking which I previously lacked and many more
products being offered by the bank. So in a nutshell, this internship gave me the experience, which would
no doubt boost my confidence to work in future.

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ACRONYMS

BM - Branch Manager
OM - Operations Manager
CSD - Customers Services Department
CSM - Customer Services Manager
CSO - Customer Services Officer
CRD - Customer Relationship Department
CRM - Customer Relationship Manager
CRO - Customer Relationship Officer
PB - Personal Banker
OCO - Operations Control Officer
BAO - Branch Accounts Officer
SE - Sales Executive
SP - Sales Processor
AOF - Account Opening Form
SQD - Service Quality Department
PKR - Pakistani Currency
DPD - Days Payment Due
FKR - Foreign Currency
A/C - Account
SW - Software
ATM - Automatic Teller Machine

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PIN - Personal Identification Number
CNIC - Computerized National Identity Card Number
NTN - National Tax Number
HD - Host of the Day
SPP - Simple Payment Plan
BTF - Balance Transfer Facility
TRL - Transaction List
OBC - Outward Billing Collection
CBR - Chequebook Request
CBI - Chequebook issuance
OSMS - Operations and Services Management System
SQD - Service Quality Department
TT - Telegraphic Transfer
DD - Demand Draft
KYC - Know Your Customer
ISM - Internal Service Measurement
MSP - Mystery shopping Program
CSS - Customer Satisfaction Survey
CMS - Complaint Management System
VU - Verification Unit
UBL - United Bank Limited
CIU - Customer Inquiry Unit
BAC - Branch Acquisition Channel
ATS - Auto Tracking System
RCM - Regional Collection Manager
CIB - Credit investigation beaureu

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