United Bank Limited[1] | Transaction Account | Banks


UBL has been working energetically to meet the challenges to provide the maximum facilities to its customer in the whole country. A measure of this understanding is progressive measure such as expanding network of UBL branches. UBL has gained a prestige & possess quite good history behind it being a leading bank in Pakistan. This bank has been very good in terms of providing excellent services in Pakistan when need arose. I am willing to get comprehensive update information about an organization. These following information and studies have increased my skills to express business principles and financial system. The objectives can be listed as below: To get knowledge about various departments of UBL.  To get knowledge about daily business activities of UBL.  To understand the role played by a bank in the economy of a country.  Practical study of accounting and financial system in UBL.  To study administration procedures/matters of UBL.  To enhance my practical skills.

UBL has assets of over Rs. 300 billion and a solid track record of forty six years - in addition to the convenience of over 1000 branches serving you throughout the country and also at several overseas locations. Date Established Chairman Deputy Chairman President & CEO Branches Representative Offices November 7, 1959 Shaikh Nahayan Mabarak Al Nahayan Mohammed Anwar Pervez OBE Mr. Atif R. Bokhari 1112 Domestic, 17 Overseas Branches Tehran


United Bank AG Zurich, Switzerland United National Bank Limited, UK (Joint venture with NBP) UBL Fund Managers Limited

Associated Company Head Office

Oman United Exchange Company, Muscat State Life Insurance Corp. Building #1,


I.I. Chundrigar Road, Karachi, Pakistan

Name of major share holding in the bank

Name of Share Holders
His Highness Shaikh Nahayan H.E. Dr. Mana’a Saeed Bestway (Holdings) Limited Sir Mohammad Anwar pervez OBE Bestway cement limited Govt of Pakistan Bank’s up-to-date information DEC 08 1136 894 354 AA+/ A-1+

No. of Shares
65241408 55778837 1289989257 51597656 77396483 199936901

%of Share
6.45 5.51 12.75 5.10 7.65 19.76



DEC07 1095 802 313 AA+/ A-1+

CHANGE +41 +92 +41 Re-affirmed

automated Online branches ATMs Credit Rating (JCR-VIS)


177 billion and the number of branches was 1701. latest managerial practices and customer orientation. improving credit systems. has changed greatly. economic and business research. UBL has had its share of problems. UBL's new management has developed a well-thought-out plan for its growth and profitability. The main reasons for its exemplary growth were the introduction. More recently. The bank continued to grow rapidly even after nationalization. 1974 with other Pakistani banks. computers. the riskiness of financial systems has increased and the lines of demarcation between the various types of financial institutions have become blurred. the lack luster growth of the economy has undermined the banking sector's profitability and competitiveness. focusing on the appropriate market segment.105. UBL has grown rapidly except in the last couple of years when it ran into some problems. New products have been introduced. the number of branches increased. it mobilized deposits of Rs. In the main. assets totaled Rs. UBL remained in the private sector for 15 years until it was nationalized on January 1.20 million and Paid-up capital of Rs. From a practical standpoint. its deposits totaled Rs.68. 4 . reporting and monitoring. operational controls.70 million and earned a profit of Rs. and project and specialized finance will facilitate rapid and sustainable growth.O.10 million.1 BRIEF HISTORY OF THE ORGANIZATION UBL opened up for business on November 7. of professional management.7 million. Its resource base expanded. It continued to grow rapidly and soon became one of the largest banks in the country. In its very first year. the use of better technology. to use the latest jargon. 1959 with authorized capital of Rs. In 1996. surplus asset disposal.6 billion. it focuses on accelerated loan recovery. including 27 overseas branches. in many instances for the first time in Pakistan.9 billion. As an organization.7. most of which were the result of the conglomeration of some unpredictable factors. The world's financial system or. advances amounted to Rs. financial architecture. and overseas operations grew.

training programmers have been accelerated and upgraded and the staffs are encouraged to revamp their skills. to the successful bidder . In the view of highly impressive growth and development achieved during its 48 years of experience. Sheikh Nahayan Mubarak Al Nahayan at a ceremony.Consortium Of Abu Dhabi Group (UAE) & Bestway Holding Limited (UK). who served UBL for more than seven years. All planning is directed and geared to customer service and satisfying the client's diverse needs. UBL has come to be accepted as one of the most progressive and dynamic components of the banking industry in Pakistan. The UBL of the past was renowned for its customer service and the management plans to put new life into it. On May 18th 2004. biggest event occurred in the history of UBL. The government handed over the management of United Bank Limited.Improvement in consumer service and prompt attention to customer needs lie at the heart of UBL's promotional strategy. The sale agreement for the transfer of shares was signed by Privatization Minister and Bestway Holding. Atif Bokhari took over the charge as new Chief Executive Officer of United Bank Ltd from Amar Zafar Khan. the third largest bank of the country. To that end. when it was privatized. This event was declared as a “New Journey For UBL”. 5 . On October 19th 2002.

Bokhari President & CEO 6 . talented. we value our people as our greatest asset and it is this philosophy that forms the basis of our focused. The diversity of and performance our businesses provide a wide spectrum of exciting career opportunities for the right individuals. Atif R. is challenging and one that ensures that our standards of excellence are maintained. our performance driven reward mechanism will drive you to perform beyond your estimation and you will have a lot of fun along the way! We look forward to a bright future and the best among you have a unique opportunity to be part of it. by necessity. Our leading market position and our ambitious vision for the future ensure our long term commitment to providing the highest quality training and workplace practices for all our employees.President’s massage: At UBL. We believe in hiring bright. highly motivated and driven individuals across our businesses and geographies. committed and long term investment in the people that form this great institution. Our vibrant and competitive culture will bring out the best in you. Our selection process.

compared to any other similar institution in the market today. all its business functions and divisions and the entire branch network. and to surpass the highest expectations of our customers and all other stakeholders. as well as in our relationships with customers and other stakeholders. For us excellence has to transcend throughout the entire organization.growing standards Consistent in our growth Best in class in any business we initiate Strive to provide world class service Your expectations.our Goals Wow impact on every encounter. Excellence:       Meeting ever. This would not only allow then to experience unparalleled convenience but also empower then to make better business decisions. UBL we believe in achieving excellence in every aspect of our work. 7 . Excellence to us is not simply a matter of delivering on a few selected parameters.VISION To be a world class bank dedicated to excellence. World class: Innovative Inspirational Consistent Results Product Employees Quality Process Impact Product We are now committed to go well beyond the realm of the ordinary. no is it restricted to basic service and delivery matters. and after our customers a more comprehensive range of banking and financial products and services.

 Optimize people.  Became the most sought after investment.Customers:   Start and end point of everything we do Our customers . Mission: Our mission is to:  Set the highest industry standard for quality across all areas of operation.our existence Our customers both internal and external mean everything to us. our pride and the driving force behind our success. 8 .  Be recognized as the employer of choice. on a sustained basis. They have always been our strength. We look up this relationship in making UBL the bank of our customer’s choice. processes and technology to deliver the best possible financial solutions to our customers.

UBL has come to be accepted as one of the most progressive and dynamic components of the banking industry in Pakistan. functions and the services provided.2 NATURE OF THE ORGANIZATION United Bank Limited is one of the largest commercial bank in the country. A Bank. In the view of highly impressive growth and development achieved during its 50 years of experience. UBL has shown dynamism since its inception. There have been many changes in the structure. The nature of the organization is public service-oriented. like the society it serves should be dynamic as banking is about people customers with their needs and opportunities and staff with skills. 9 . Commerce and private Individuals.7. These changes reflect the changing requirements of our developing economy as a whole and those of Industry. experience and resources.

BUSINESS ACTIVITIES Three specialist business areas: • • • Project & Structured Finance Syndications & Debt Capital Market Equity & Advisory 10 .

A multi-faceted customized approach focused towards client satisfaction Offers a full spectrum of Investment Banking services under one roof 11 .

Arranger and/or Trustee of the loan facility 12 .Further are the details of different products that UBL offer DEBT AND CAPITAL MARKETS • • • • • • Loan Syndications Term Finance Certificates (TFC) Listed TFC Privately Placed TFC Securitization Commercial Paper (CP) LOAN SYNDICATION • • • • • • Raising term financing from financial institutions Can be used to raise large financing amount Results in the use of bank lines by the corporation Plain vanilla product Advantage of bilateral-type operation as primary interface is with the Agent Bank only. IBG acts as an Advisor.

1984 Capital market alternative to traditional bank debt Replicates the cash flows of a coupon-bearing bond First TFC in Pakistan issued by Packages Limited in 1995 IBG acts as an Arranger and Structuring Agent and Trustee LISTED TFC • • • • • • Listed TFCs are made available to the general public in addition to institutional investors through listing on the stock exchange Facilitate trading in the secondary market Offered through both Private Placement (Pre-IPO) and Initial Public Offer (IPO) Listing creates liquidity through bid and offer quotes in the secondary market Increasingly growing with 14 companies offering TFCs worth PKR 16.8 billion at the Karachi Stock Exchange alone in 2005. This trend also continued in the year 2006 and UBL IBG had significant market share of listed TFC issues in 2006 PRIVATELY PLACED TFC • Privately-Placed TFCs are not offered to the public 13 .TFC • • • • • Redeemable capital issued under section 120 of the Companies Ordinance.

• Offered to a single principal investor or to a group of institutional Investors. SECP) and the credit-rating of the entity and instrument need not be obtained SECURITIZATION 14 . allowed under Section 120 of the Companies Ordinance. Can be achieved in a matter of 4-8 weeks Approvals are not required from regulatory authorities (stock exchanges. 1984 • • Arranging a Privately-Placed TFC issue takes considerably less time.

• • • • • • Securitization designed to improve the risk profile of the facility for the Issuer IBG acts as Structuring Agent and Arranger Asset Backed Securitization (ABS) Bonds or notes backed by financial assets Pools of financial assets are sold to SPV SPV converts these pools to marketable securities in the form of Asset Backed Securities COMMERCIAL PAPER • • • • • An unsecured promissory note with a maturity period ranging from thirty days to one year A money market instrument which can be issued by rated companies to diversify their short term sources of financing Transferable by endorsement and delivery Commercial Paper is issued at a discount calculated on the basis of the mark-up which is determined by the Issuer The Issuer to maintain a minimum current ratio of 1:1 and maintain a minimum Debt/Equity ratio of 60:40 to PROJECT & STRUCTURES FINANCE 15 .

e. cross-border 16 . Allows borrowing against the value of a specific asset.PROJECT FINANCE FEATURES      Assets have a high degree of ‘specificity’ Clear source of cash flows with high degree of certainty Transparency of information Claimants don’t want commingling with other assets and ‘projects’ Often.  In general a structured finance solution seeks to isolate the risk of the loan facility from the overall risks of the borrower’s business. i. project or income stream rather than on the basis of the borrower’s own credit rating.g.  Where the financing risks are too large for the borrower and/or lenders to cope with. e. who cant borrow any further on the strength of their existing balance sheets. technology and telecom.  Service entities with little or no tangible assets of worth.g. e.  Companies with capitalization issues. guarantees of government or of partners/customers STRUCTURED FINANCE   A non-traditional lending method tailored to specific client needs.


 Special focus on the Project Finance with a solid portfolio of Project Finance executed deals and mandates. oil pipelines. refineries. power generation and distribution amongst others.550 million   DEAL TEAM EQUITY CAPITAL MARKETS • Equity Listing 18 . Project Finance transaction successfully completed during 2005 amounted to PKR 6. Advised/financed a broad range of Project Finance transactions including LPG container terminal.

cash flows accrue to the Company Listing can be of Ordinary Shares or Preference Shares MERGERS & ACQUISITION ADVISORY  Provide financial advice to the buyer / seller of an asset.• • • • Ordinary Shares Preference Shares Pre-IPO – Private Placement Private Equity ADVISORY • • • Mergers & Acquisitions Advisory Privatization Advisory/Transition Management Advisory Restructuring Advisory EQUITY LISTING • • • • Listing can be through offer for sale by existing sponsors or through issue of new shares In offer for sale. cannot advise both buyer and seller at the same time   Sell-side Advisory encompasses Marketing of opportunity Valuation Formulation of sale strategy  Buy-Side Advisory includes Due diligence Valuation 19 . proceeds go to sponsors In issue of new shares.

333.3 BUSINESS VOLUME As for as business volume of the firm is concerned.805.070 24.139.723 22.974.591 8. indicating business growth expansion every year.354.768 Profit 3.341 Deposits 185.552 29.698.502 230.062 Advances 144.136 25.633 17.949. 20 .402.309.071.675 Interest Income 11.781.679.496.560.439.701.660.120 The business volume of the firm since 2004 can be analyzed by the “graphically view” which shows that the Total income & profit after taxation for the last five years.055 204.539 483.544 5.151.662 30.627 289.810.256.226.232 8.299 400. the financial analysis of Balance Sheet and Profit & Loss Statement of last five years (attached as Annexes) reflects a progressive business volume given under: Years / Particulars 2004 2005 2006 2007 2008 Lending to Financial Institution 18.736 371.360.073 17.Formulation of bid strategy 7.468.893 299.572.867.324 26. It highlights that the Income & Profit of the firm is increasing gradually.032 9.470 247.

000 601.000 6.000 1.000 Interest Income 801.000.000 2004 2005 2006 2007 2008 YEARS Advances Deposits Lending to Financial Institution Profit 10.000.000.BUSINESS VOLUME 1.000.000 201.000.000 0 2004 2005 2006 2007 2008 Profit 21 .000.000 401.000 8.

043 2007 9373 09 9382 5522 14.904 The numbers of employees with their designation at the Airport branch of UBL are as under:Branch Manager Branch Operation Manager Foreign Exchange – Remittances – Clearing Customer Relations Officers Guards (Contractual Employees) BM – CSM OG-II CSR CSR 1 1 2 4 1 1 2 22 . The staff is quite efficient and qualified in its respective field. In few past years bank conducted new and fresh blood qualified and having professional education. they are proving a good worth for the banking business with the help of their professional degree and knowledge by implementation in practical concerned field.7.4 NUMBER OF EMPLOYEES The total number of employees1 working in UBL are Eight Thousand Eight Hundred Fifty-one 8851 as on 2008. The detail of total number of employees2 of UBL is as under:- STAFF STRENGTH Permanent Contractual Basis Bank’s own staff Strength at the end Out sourced Total number of employees 2008 8838 13 8851 6192 15.

UBL offer the following products and Services: DEPOSITS 1. to cater their need of investments and other social or business requirements. Agricultural & nbsp Loan 8. UBL eTransaction 8. UBL Drive 5. FCY Terms Deposits (Foreign Currency Terms Deposits)  LOANS & CARDS 1.5 PRODUCT LINES The bank provides its customer various product lines. Rupee Trans A/C 3. Term Deposits Reciepts 9. UBL Cashline 4. UBL UniSaver 6. Basic Banking Account 4. FCY Savings (Foreign Currency Sagings) 10. UBL Businessline 3. UBL Better life Bancassurance 2. UBL Credit Card 6. UBL Profit COD 7. Business Partners 2. UBL Address 2. UBL Small Business – SME Loan  SERVICES 1. UBL UniFlex 5. UBL Net banking 3.7. UBL Money 7. UBL e-statement 23 .

UBL Click n Bank 2. Now individuals and sole proprietorships can become our preferred Business Partner by maintaining Rs. UBL TeZRaftaar DEPOSTIS UBL Business Partner UBL Business Partner is your banking companion at all UBL branches across Pakistan. Demand Draft & Telegraphic Transfer Locker Access Foreign Currency Cash Deposits & Withdrawals Foreign Currency Traveler’s Cheque/Demand Draft Utility Bills Payment Consumer Loans / Credit Card Payment Statement of Account Issuance & Balance Inquiry Issuance of Hamrah Rupee Traveler’s Cheques UBL Business Partner comes with unmatched free* offers. Walk-in anytime at any UBL branch and have the convenience of 9 to 5 non-stop banking:          Rupee Deposits & Withdrawals (both cheque & cash) Issuance of Pay Order. 25. Charity & Donations  MISCELLANEOUS 1. UBL Wallet 5.000/.4. Demand Draft & Telegraphic Transfer 24 .   Unlimited Real Time Online Transactions Issuance of Pay Order.or above in their current account and get the following services absolutely free. UBL Click n Remit 3. We truly value your partnership and believe in offering you the preference you deserve.

then UBL’s PLS Savings Account will serve all your financial needs. in addition to the regular charges of services. 50/-. United Bank Limited is pleased to launch the UBL Basic Banking Account Scheme (UBL BBA) from February 25. once the customer exhausts his free transaction limits. The minimum initial deposit at the time of account opening is to be Rs. Maximum of two deposit and two withdrawals (cash or clearing) per month are allowed free of charge. This charge will be system generated end of day. any transaction (cash or clearing) after those mentioned above will be charged a flat fee of Rs. There is no minimum balance penalty on UBL BBA accounts. Collection / Clearing of Cheques 50% discount on UBL Credit Card Annual Fee No Cheque Return Charges. 2006 across its branch network all over Pakistan.    UBL Wallet ATM/Debit Card Cheque Book. This is primarily aimed toward helping the low income group to benefit from the banking services without having the pressure to maintain specific balance amount with the banks. The statement of account will be issued once a year for UBL BBA 25 . By keeping your deposits in UBL’s PLS Savings Account you can also avail the following services:     No limitation on withdrawals Share of profit is credited on half-yearly basis Profit is calculated on monthly balance UBL offers free accidental and permanent disability insurance to individual and joint account holders UBL Basic Banking Account – BBA To accommodate the banking needs of low income groups. However. 1000/Basic Banking Account will be a current account. UBL net banking Rupee Transactional Account If you choose to keep a deposit in a secured savings account which also gives an attractive rate of return. however all accounts having nil balance for a continuous six month period shall be closed.

and disbursed six monthly directly into the UniFlex account.  If the minimum balance touched during any calendar month exceeds Rs.customers in June. based on minimum balance touched during the month.  The Bank shall determine from time to time the rate of interest/return/profit payable on the account/deposit in accordance with the prevailing profit and loss sharing rules and regulations of the State Bank of Pakistan and the policies of the Bank which are subject to change from time to time and the account holder/depositor agrees to accept such rate of interests/return/profit at the time such change was made. 50/-.200. interest/return/profit shall only be paid on Rs. Corporations and partnerships are ineligible for the scheme. They can now afford an amazing rate of return plus value added benefits only available from the UBL UniFlex PLS Savings Account. traders.  Interest/return/profit shall be accrued monthly. 26 . There are following terms and conditions for UBL Uniflex Account: All individual and joint account holders and sole proprietorships are eligible for the UBL UniFlex Account (scheme).and no interest/return/profit will be paid on the amount exceeding this limit.000/-. Issuance of duplicate statement will entail a charge of Rs.  Only one UBL UniFlex account per Computerized National Identity Card (CNIC) shall be allowed to be opened in UBL. regardless of the branch. UBL BBA will also be Zakat Exempt accounts UBL Uniflex Account UBL has introduced a new checking account ideal for small investors. no doubling shall be allowed even as joint account or sole proprietor.200. businessmen and customers from middle income group.000/.

000/. 10.000/.during each calendar month.  Wallet VISA card is optional.shall be applied as per the Schedule of Bank Charges (SOC).  All transactions. the UBL UniSaver allows you maximum flexibility. UBL Unisaver Account UBL UniSaver Account is an innovative way of serving your banking needs. business or personal finance. yet gives you optimum returns. Be it trade.  The UBL UniFlex account cannot be overdrawn. charges as per Schedule of Bank Charges (SOC).  The UniFlex Account Holder shall be required to maintain the minimum balance requirement of Rs. including the two withdrawals allowed will be charged as per the Schedule of Bank Charges (SOC). There are the following features offered by bank on this product:     Innovative and flexible checking account Attractive rates of return Profit is calculated on monthly average balance Profit payment is on six monthly basis Higher returns on higher balances 27 . Withholding Tax and Zakat deductions.  All single debit incidents to an account will be considered as separate transactions except deductions by the bank for charging service fee.10. Service charges where the average balance during the month is less than Rs. Accounts that are closed in the middle of a month will not be eligible for any interest/return/profit for the broken period of that month.

28 .5 non stop full service banking in all UBL branches across the country. Two Types of Profit Payment Options:   Profit Payment at Maturity Monthly Profit Payment UBL eTransation When it comes to electronic financial services www. just make an investment and see your deposit grow over time. By investing in UBL Term Deposit Receipts:        You get an attractive rate of return. Avail different attractive rates depending on the tenor you choose.ubl.UBL Profit COD Now you can earn a higher income on your surplus cash by investing it in UBL Profit Certificate of Deposit. You can avail the Rollover or Renewed option at any time before encashment You can get your TDR en-cashed at any time before maturity period. With years of experience in innovation United Bank offers a wide spectrum of world-class of electronic services and banking products for trailblazers like you.com. Your profit is credited to your account every six months. UBL Profit helps you earn extra income with your hard earned money. Regular Term Deposits Receipts If you wish to make a secured long term investment. Avail the services and facility of 9 . while providing absolute trust and security. UBL’s Term Deposit Receipt is the smart choice. You have the flexibility to choose from a wide range of tenors.pk is Pakistan’s favorite Internet destination and why not!.

and Euros etc. UBL offers the widest reach across the country with an increasing number of more than 228 foreign currency dealing branches.e. Unlimited withdrawals and deposits. Avail different attractive rates depending on the currency you choose.5 non stop full service banking in all foreign currency handling branches such as foreign currency traveler cheque and demand draft issuance against cash and foreign currency cash deposits and withdrawals. Special features are:  Choose from different range of currencies i. There are no cash handling (Cash Deposit & Cash Withdrawals) charges from the customers. You can withdraw funds in either foreign currency or in Pakistan Rupees. making it easier for you to fulfill your routine business needs. US Dollars. Avail the services and facility of 9 . British Pounds.       29 . whatever your requirement may be. UBL offers free accidental and permanent disability insurance to individual and joint account holders FCY Savings UBL has taken progressive steps and has introduced innovative products and services to provide you a variety of banking and financing services.

British Pounds. and Euros etc. Zakat exempted UBL offers free accidental and permanent disability insurance to individual and joint account holders UBL’s Foreign Currency Term Deposit Receipt If you wish to make a secured long term foreign currency investment.5 non stop full service banking in all foreign currency handling branches. UBL’s Foreign Currency Term Deposit Receipt is a smart choice. Get the pleasure of availing the best rates of return in the market.e.  Choose from different range of currencies i. UBL offers the widest reach across the country with an increasing number of more than 228 foreign currency dealing branches.            30 . Term deposits in foreign currency are offered for the following periods of maturity with variable rates of return: There are no cash handling (Cash Deposit & Cash Withdrawals) charges from the customers. US Dollars. You can withdraw funds in either foreign currency or in Pakistan Rupees. Avail different attractive rates depending on the currency you choose.   You get to take your profit home every six months. Three Months Six Months Twelve Months Flexible options of rollover or renew the TDR at the time of encashment. whatever your requirement may be. just make an investment and see your deposit grow over time. Avail the services and facility of 9 .

500. “It is a ‘Credit Line/ OD Facility’ against Residential Property.000 and above or equivalent. Special Rates available from for USD 500. at UBL we aim to make your decision easier.20 years. Eligibility Criteria      Minimum monthly income: Rs. UBL offers free accidental and permanent disability insurance to individual and joint account holders LOANS & CARDS UBL ADDRESS Owning a house of your very own is a cherished dream.15. UBL Address empowers you to become the proud owner of a home by offering a variety of product and pricing options that are flexible yet affordable.000 Age: 23 to 65 years Resident Pakistani Self-employed businessman/professional or salaried individual Minimum loan size: Rs. That is why. A lot of planning and hard work is involved in making this dream come true. All product options are amortized and range over a tenor of 3 . So choose the best product option and pricing to suit your needs. fixed rate of return on booking month's rate.000 UBL Businessline UBL Businessline is a running Finance facility that not only provides funds for growth but also enables you to capitalize on profitable opportunities. by offering you the right ingredients that can help you realize your dream with absolute convenience.    Zakat exempted For all FCY Term Deposits. It is an evergreen credit 31 .

UBL Businessline credit line is here to solve all your cash flow problems. No prepayment penalty. You can utilize up to Rs. Markup only on utilized amount. In addition financing is offered to customers that are already availing a similar facility from any other bank. Whether you are a salaried individual or a businessman.     32 .000 Age: 23 – 65 and a Pakistani Resident Self Employed Professional / Self Employed Businessman.000 without any security requirements. Businessline gives you the facility to pay mark up only on the amount that you utilize. UBL Cashline is aimed to make your life easier…ZINADGEE ASAAN. It empowers you to take control of your finances. you can plan your growth and expansion exactly the way you want to. 25. Now that you can avail a higher amount against your assets.line that the customer can use for his/her business expansion”. now you no more need to pay for the entire credit line that you own.10 million with the help of which you can now focus on your business expansion and growth. Businessline gives you the facility to pay mark up only on the amount that you utilize. now you no more need to pay for the entire credit line that you own. UBL Cashline UBL Cashline is a flexible loan that provides you cash up to Rs. Principal repayment at your convenience. UBL Cashline takes care of your cash requirements. With UBL Businessline. With UBL Businessline.500. then UBL Businessline is just the right choice for you :    Minimum monthly income: Rs. If you fall in the following criteria. Flexibility No fixed monthly installment. UBL Businessline offers you the facility of availing a financing of up to 70 % of your property value.

because at UBL. you can get up to 75% of your car value. options and flexibility unmatched by any other bank. Drive in with your car and drive out with cash. No Down Payment and processing charges till your application is approved. UBL Drive is the quick and hassle free route to the car of your choice. 100.000 or more. UBL Drive UBL Drive is a unique auto financing product which offers you features. Insurance financing for the first year and Discounted rates with take a car security device installed at customers' cost. child’s education. UBL Drive is not just a car loan. convenience and the flexibility to manage your financial requirements A salaried person of 21 to 60 years and your monthly net salary is Rs. short-term business needs or just about any thing you can think of! How can you get Cashline? If you are:  or  A self employed business person/professional of 21 to 65 years and your monthly net take home income is Rs. UBL Drive offers you the Comprehensive insurance. However With UBL Drive you can buy your favorite used car (up to 5 years old) at the most affordable rates. you can take your Purchase Order to any of our authorized dealers. You come first. 100. pay the Total Cash Outlay amount and simply drive away with your preferred car.000 or more. Worry free payment of bills. it’s a financing facility that gives you Cash on your car. After approval. UBL Drive allows you for New Car Financing to drive away in your own car by making a down payment of just 15% and to top that with low monthly installments. shopping. control. Offering you for the first time in Pakistan. the Personal Installment Loan from UBL provides you with power. 33 . UBL Money UBL Money.

It gives you access to funds starting from Rs. The eligibility Criteria for this product is:You are within the age bracket of: For salaried individuals For the self employed or Businessmen Your monthly gross income is For salaried individuals For the self employed or Businessmen Rs. SERVICESES UBL Netbanking UBL netbanking is an Internet Banking portal offering a simple.000/. UBL Money provides you the flexibility to manage your monthly installments according to your income stream.and realize your dreams. 500. convenient and secure method of accessing bank accounts on the Internet. UBL Money is a fixed installment loan. It's never been so easy 34 .000/without any collateral.000/Rs. You can select any tenor from 1 to 5 years in a multiple of 6 months. You can select any tenor from 1 to 5 years in a multiple of 6 months.000/21-60 years 21-65 years You have been Employed for the last 6 months or have been in business for the last 2 years. 50.up to a maximum of Rs. The features for UBL Money are as under:   Zero-prepayment penalty option Complimentary Credit Insurance Competitive mark up You can pay your installments through any UBL designated branch and drop box and UBL net banking. 10. 25. UBL Money provides you the flexibility to manage your monthly installments according to your income stream.

Whenever there is an activity in your account. All you need to do is tell us the frequency of statements you require and we will ensure that it reaches your inbox.to access and manage your finances in a secure. UBL in the shape of "Hamrah" Rupee Travellers Cheque enhances this facility for the convenience of its valued customers by offering 35 . In continuation of the same tradition. Anytime. you don’t need to pay any additional cost in order to get benefit from this facility. an email shall be sent to you with the complete transaction details. Daily. the customers have access to their bank accounts 24 hours a day. UBL E-Statement UBL is pleased to announce the launch of the UBL e-statement facility which makes it easier for you to get your statement of accounts and automated transactional debit/ credit alerts right into your inbox. UBL believes in providing value-added service to customers and all you need to get started is your email address! As an alternative to printed statements. you now do not have to wait for six months to receive a paper based statement of your account any more. 7 days a week and can keep a close eye on their account balances. pay bills. Monthly. Quarterly. track purchases and schedule their recurring payments at the touch of a button and much more. UBL e-statements eradicate the hassle of paperwork. box filling and the chance of having your unattended documentation read by others. UBL was the pioneer in introducing Rupee Travellers Cheque facility in Pakistan. You UBL e-statement shall be sent to you in an easy to read Adobe Acrobat format. real-time. Using UBL netbanking . print account statements. UBL estatement can be delivered to you in the following frequencies. as early as 1971. Available for all Rupee and Foreign Currency Account holders. online environment. UBL "Hamrah" UBL has always been at the forefront in identifying and meeting the financial needs of its valued customers. transfer funds. Weekly. Semi-Annually. Anywhere.

providing its customers with round the clock verification of "HAMRAH" travelers cheques.denominations up to Rs. you can shop all you want.000. local and international. etc and of course at all our UBL branches. With UBL Wallet VISA as your debit card. "Hamrah" Rupee Traveller Cheques are the ideal and safest way of carrying cash when travelling anywhere in Pakistan. Hamrah RTC's are now accepted at more than 2000 places such as hotels. 36 . car dealers. most commonly through bank branches. now with the power and international acceptance of VISA! Your Wallet VISA ATM & Debit Card has all the convenience and security you desire and the quality you deserve. which means that you can use your UBL Wallet VISA to conduct a debit transaction at any outlet in Pakistan that displays the ORIX or VISA logos. property. real estate agents. whereas your UBL Wallet VISA card is also acceptable at 22 million VISA merchant locations. trade or personal needs.000 outlets across the country. UBL has a 24Hours customer help-line. eat all you can or fill up your car tank without carrying any cash. both convenience and security .be it business. UBL Wallet :UBL Wallet. Simply use your UBL Wallet VISA for direct debit from your bank account. UBL "Hamrah" has been designed keeping in mind. The debit card facility is being offered in association with the Orix andVISA networks. The Orix network offers connectivity at more than 5. jewllers. UBL BetterLife-Bancassurance We are pleased to announce the launch of UBL BetterLife Plans under the umbrella of Bancassurance. 10. shops. This Wallet holds all the cash in your bank account. in partnership with EFU LIFE Assurance Company in selected 100 Branches. What is Bancassurance? Bancassurance is the selling of insurance and banking products through the same channel. along with the convenience of using signature based verification instead of a PIN (Personal Identification Number).

who guides customers in conducting their ATM 37 . For more details. UBL BetterLife Savings Plan Flexible open ended savings product with life insurance protection to your family and loved ones. Orion ATM ATM is the abbreviation of automated teller machine. ATMs feature a Virtual Human Assistant. UBL BetterLife Marriage Plan Endowment funds for your children in an organized and disciplined manner for use in later life. UBL BetterLife Retirement Plan Accumulating retirement funds for your regular retirement income. ATM is the modern technology screen touch system. For more details. For more details.Product Offering UBL BetterLife plans are advanced insurance products specifically designed to benefit the customers. Tezraftaar UBL Click N Bank UBL Funds Manager UBL netbanking. providing the better and secured future to your family and loved ones. ATM functions on a PIN (Personal Identification Number) based system. NRP SERVICES UBL has taken progressive steps and has introduced innovative products and services to provide you a variety of banking and financing services. Remittance Accounts Investments Electronic Access UBL Click N Remit. ensuring complete security of customer transactions. Description UBL BetterLife Child Education Plan Accumulation of target funds for education of your children and ensuring that goal is achieved even if the parent dies earlier.

transactions. It allows customers to get a printed statement of their account that shows all recent transactions. Customer can swiftly withdraw the desired amount by selecting from one of the options of listed denominations. United bank limited is having the ATM facility. UBL has its own network of 214 ATMs in 60 cities, which continues to expand by the day.

The organizational structure of the organization is conventional. In 1986, the organizational structure of domestic operations of the bank was reformed and decentralized on the basis of provinces.

As a result provincial headquarters were established at Karachi, Lahore, Peshawar and Quetta in order to meet the needs of sanctioning loans and other facilities to the trade, industry and agriculture of each province. Azad Kashmir was serrated from NWFP and made separate region.

Board of Directors governs the Bank’s Affairs, which currently consists of President, Deputy Chairman, Chief Executive Officer and seven Directors. The CEO has an overall responsibility for the strategic direction, government relations and to manage the portfolio of business and its functions. The Head of the Executive Committee is the President & C.E.O. The other members of the executive committee are designated as follow. 1. 2. 3. 4. 5. Group Executive Consumer/Commercial Bank Group Operations & Technology Head Group Executive Treasury & Capital Markets Group CFO Group Executive Human Resources


6. 7. 8. 9.

Group Audit & Inspection Head Group Business Support / Collections Head Group Commercial Bank Head Company Secretary Chief Legal

UBL is the largest Commercial Bank in Pakistan. IBG provides innovative and unique solutions to its clients enabling them to meet the challenges of an ever- changing market. Organogram is attached in the last of the report Annexure 1-7.

In 2007 the bank re structured its network all over the country, by sub divided the branch into retail banking and sales. Up to now each branch has two (2) managers,   Branch Manager Customer services manager ( CSM )

The branch manager’s function is to increase the deposits for the bank, where as customer service manager is look after the operation of the branch. So both manager has different task and duties which no doubt increase the efficiency of branch. The key concept of this Re structuring is to minimize the burden of operational task on Branch Manager and put him/her aggressively pursuing the deposits for the Bank. This re structuring also change the reporting cycle of branch which now look like this, FOR BRANCH MANAGERS GM RBH DM BM

FOR CUSTOMER SERVICE MANAGER R.H. R.O.H. KEY HIGHLIGHTS:    Launch of clusters (South, Centre and North). Regions grow from 14 to 21. Areas to be renamed as districts and the number to increase from 60 to 81. D.C.S.M. C.S.M.


Each district has a range of six to 25 branches.

OBJECTIVES OF RESTRUCTURING NETWORK:  Empowering the clusters, regions districts and branches by delegation of sales and therefore revenue ownership.  Allowing the regions a manageable span of control, leading to higher productivity and motivation from staff and branch network. BRANCH NETWORK UP-GRADE BUSINESS PROCESS RE-ENGINEERING PROXIMA: • • • Transform branches from Deposit focus to Sales and Customer Service oriented. Leverage branches networks as a distribution channel to increase cross selling opportunities. Synergize with core banking application GENESIS: • • • Implication of new core banking system. Provide and negotiate real-time customer and product date to all branches. Robust, intelligent control and risk management.


41 . the branch is situated at the airport which is highly busy location and due to the security reason other cooperative customers prefers the airport branch for there daily transaction . This officer is also collect other account information from the other 15 branches which working under the Airport branch.8.2 ORGANIZATION STRUCTURE OF UBL AIR PORT BRANCH The structure of UBL AIRPORT branch is same as all branches of UBL have. Account opening and ATM officer. There are two side of organization structure of airport branch one is Sales and other is Operation. The airport branch is the Hub Branch in Karachi so the working load is almost double as compare to the other branches and the other reason of increased work load is due to the branch location . The Branch Manager NAYYARSULTANA deal in sales side of the branch and look after other customer related issues. Following staff is working under him. Clearing officer. This person is also perform some IT related matter in the branch. The branch is also have a senior accountant who’s responsibility is to look after the all account related transaction. who’s responsibility is to look after those matter which relate to clearing the cheque and other cross cheque deposit issue. IFTIKHAR ALI who is CUSTOMER SERVICE MANAGER. who responsibility is to look after all the account and ATM related issues. The Operation side of the branch is look after by Mr. watching all CD and PLS accounts and this person also provide feed back and produced all reports which time to time head office needs.

bank draft. I. Auto Loans and other product and the 2nd officer is look after the insurance product which bank newly offer for their customers. Chundrigar Road. Other all this staff branch has two other officers Consumer product officer is look after consumer product like Personal Loans. Building # 1. receive cash from customers. Branch have 1 senior taller and 2 junior female taller this staff look after the all cash related issues. other cash deposits and also perform online transition and issue pay orders. Pakistan.I..The branch is also have foreign exchange department who’s officer duty is to look after the all 5 foreign currencies related matter and this person is also look after the Import activity and LC related issues. Branch also have Utility Bill Department and this lady officer is receive utility bills and Airport school fees vouchers. 42 . The organogram is attached at the end of report Main Offices Head Office State Life Insurance Corp. There are two guards available in the branch to look after the security related issues. Karachi.

Of CLUSTERS REGIONS Hyderabad Karachi central Karachi north Karachi south Quetta Sukkur Bahawalpur Faisalabad Gujranwala Lahore east Lahore west Multan Sahiwal Sargodha Sialkot Azad Kashmir Islamabad Jhelum Mardan Peshawar Rawalpindi DISTRICTS 4 3 3 3 5 4 4 6 4 3 3 4 4 4 3 4 3 4 5 5 3 BRANCHES 56 40 32 32 39 56 47 71 59 33 34 61 55 50 32 71 38 71 74 72 42 South Central North TOTAL 21 81 1065 Total network of 1065 branches by Dec 31st. 2007 43 .Foreign branches: Bahrain Qatar Republic of Yemen UAE USA 3 2 3 8 1 RETAIL BANK STRUCTURE NO.

which 44 . UBL’s visa credit card which has the distinction of being the first EMV chip-enabled card in South Asia. The (Corporate Banking Group) CBG focuses on attracting and servicing large portfolio customers. UBL Address & UBL drive the home and auto loan products respectively. And these types of customers are called corporate customers. the marketing team who has set a new trend in the banking industry through catchy taglines in Urdu and the sales teams which have broken all sales records. The Corporate Banking Group focuses on attracting and servicing large portfolio customers. The mission is to serve all corporate clients needs by providing total solution and ensuring full satisfaction through product innovation. These types of customers need special care and services as well. The Relationship Management team manned by highly qualified individuals from the industry has steadily expanded our customer base and continues to enhance our cordial relations with our esteemed clients. Our forte is providing exemplary customer service using the "Single Window" concept and product superiority.8. and quality services. Consumer Banking The consumer bank is divided on business lines based on product offerings. The consumer bank’s portfolio includes. These are led by the product teams who encapsulate the futuristic features. collections and finance. Our forte is providing exemplary customer service using the "Single Window" concept and product superiority. operations. personalized banking.3 REVIEW OF VARIOUS DEPARTMENT Corporate Banking The main objective of the Corporate Banking is to look after the special customers who gives huge amount of deposits or take higher amounts of Advances. Business is further supported by dedicated cross-functional teams comprising of credit.

Recruitment (is the process of finding and attracting capable applicants for employment through Advertising. 2. Job Specification. Investment Group This department supports the Corporate Department. 4. 45 . Job Redesign. A healthy mixture of Debt. The bank has been declared :1. Job Design. UBL cashline (running finance) and UBL businessline (business finance) are the flexible credit line facilities with competitive mark ups. Private Placement Agencies etc. When a company wants to install a new project and require the finance from the bank then it is the responsibility of Investment Department to analyze the targets of the project and success or failure of the project. If it is feasible to loan that party then they pass the loan otherwise not. 3. This is called the Project Finance. Employee Referrals. Human Resource Department This Department does all the activities related to Human Resources (HR) and Personnel Management like Job Analysis.captured the bulk of the market share within the first few months of their launch. Equity & Advisory transactions 1 5. UBL’s Investment Banking Group continues its leadership position in providing innovative and unique financial solution to its clients by anticipating their changing requirements and developing new products and services. Current mandates add up to over PKR59 billion (US$967million). UBL (Investment Banking Group) IBG offers full spectrum of services.). Job Description. The Largest Investment Bank in Pakistan Well established execution experience Rich international and domestic investment banking product knowledge Awarded the “Largest Investment Bank” award by The CFA Association of Pakistan for three consecutive years (2003-2005).

Staff leaves and other related staff matters Goals of all Staff Monthly Statement of Staff Disciplinary Action Cases Cases Retired employees & its correspondence All Staff Deceased cases & its Correspondence Complaints and its correspondence Finance Department The primary responsibility of Finance department is to provide reliable. consistent and timely information to management. It also involves in the following activities:          Transfers& Postings Mandatory Leaves and its observance. 46 . Performance Appraisal (employee performance and accountability). Information Technology Department Information Technology (IT) Department is related with all computer activities like it manage the Central Data Base (CDB) which is placed in Karachi Head Office of UBL. which have supported the launch of feature rich consumer banking products. Career Planning. Orientation. The area of major focus for IT Department is the building of infrastructure for the launch of the consumer business. Training. Compensation and Protection. Union-Management Relations etc. shareholders.Selection by written tests and interviews. where all the daily transactions in all the branches of the country are up-dated on daily basis. regulators and internal business groups to help them take appropriate decisions for improved performance of the bank. UBL made significant investments in consumer related best in class computer systems.

BS testing. E-Mail user setup. Application. and Administrative control. Audit group is committed to meet its objective that is to act as an independent appraiser that reviews systems. Audit has a support role to play by helping line management in achieving their business goals by ensuring that the operational risks are properly controlled and kept at minimum acceptable level. Anti-Virus Installation and Up-Date.e Banking System. BS release update.          Audit and Inspection The responsibility of this department is to audit and inspect the operations of the branches. The software being used by UBL is termed as BS i. BS user setup. If we get a detailed overview of the functional responsibilities of the IT department the following areas are covered: General. The software used by the UBL is “SPARC”. End of day/Month/Half year/Year reports.The IT department is responsible for the smooth functioning of the Software system used by the Bank. 47 . Program Update. This department checks whether the operations are compliance by the branches in a right way or not. User PC backup. The network used by the UBL is LAN (Local area network) while other branches are also using WAN (wide area network). The Control and Compliance Department (CCD) comes under this department. controls and quality of performance with the vision to protect the interest of stakeholders and to safeguard the assets of the organization besides the implementation of an effective and efficient internal control systems.

This department provides services to customers at low charges to get their amounts from the nearest branch. Cash department is performing its functions/duties manually. No other person is allowed to enter in the premises of cash department. Bills Department This department basically deals in bills. labor and currency involvement. drafts and pay order. which are as under:  Cash received voucher sheet  Cash paid voucher sheet  Token register  Transaction ledger  Pay-In-Slip record  Cheque book record  Cash balance book Clearing Department This department welcomes the cheques and other negotiable instruments drawn upon local branches of other banks. call deposit. it has to maintain certain sheets. Clearing system is helpful for both the customers and bank in saving of time. books of accounts and various ledgers. For payments and receipts. As obvious from name that this department deals in cash deposits and payments.Cash Department This is sensitive department of the UBL branch. in which the bank representative brings cheques and other Institutions and mutual claims of each bank on other are off set and a settlement is made by the payments. The bills are cheques. State Bank of Pakistan has a clearinghouse. Head Of Bills 48 . These bills are from outstation branches of UBL or of other banks. which come in bank for collection.

Exchange Department of the Bank accepts under noted Foreign Currency from account holders.There are two main heads of the bills i.e. And daily transactions are recorded at their current exchange rates. 49 .  US Dollar  British Pound Sterling  Japanese Yen  UK Euro  Saudi Rial.  Outward Bills For Collection (OBC)  Inward Bill For Collection (IBC) Foreign Exchange Department Foreign. etc. State Bank of Pakistan provides exchange rates on daily basis.

9. To enable the administrators of these funds to monitor and report on the activity of the funds. consistent and timely information to management. There are the following key persons of UBL whose are performing these responsibilities of Finance Department for bank. Head Syndications & Debt Capital Market) 50 . Project & Structured Finance)  Saeed iqbal (executive Vice President. The UBL’s funding from various sources. The organogram of the department is attached at the end of the report. CFA (Senior Vice President. and the expenditures from each source. Project & Structured Finance)  Shazad Amjad (Assistant Manager. Group Head Investment Banking)  Rizwan Hammed Chapra. CFA (Assistant Vice President. This is accomplished by establishing separate accounts in the system. Equity & Advisory)  Ali Asad (Manager.  Hamza Hasan (Assistant Vice President. Project & Structured Finance)  Sarah Shaikh (Assistant Manager. Project & Structured Finance)  Nadia Ishtiaq (Manager. much as a bank establishes separate accounts for each depositor. regulators and internal business groups to help them take appropriate decisions for improved performance of the bank. The primary responsibility of Finance department is to provide reliable. Equity & Advisory)  Qasim Ali Karamat (Assistant Manager. most of which is specified for certain types of expenditures. the accounting system must maintain separate records of each source of funds. STRUCTURE & FUNCTIONS OF THE FINANCE DEPARTMENT The finance and accounting system is a tool for accumulating the financial activity at any Organization. Project & Structured Finance)  Mehvish Virani. shareholders.

The department performs a function that is similar to the Financial Supervision Department.F. This department can delve into every aspect of the Bank’s work with the aim of providing independent advice to the Bank’s senior management in the conduct of their work as well as ensure that the Bank is taking appropriate levels of risk. The responsibility of this department is to audit and inspect the operations of the branches. This is currently a small part of the Gambian financial system but has been growing rapidly. The final audit is of the bank is being done by the A.The Bank’s Internal Audit Department provides an independent appraisal of the adequacy and effectiveness of the Bank's internal control systems and quality of performance as well as test compliance with laid down procedures. This department checks whether the operations are compliance by the branches in a right way or not. The head of department reports directly to the Governor. Audit has a support role to play by helping line management in achieving their business goals by ensuring that the operational risks are properly controlled and kept at minimum acceptable level. However. All the final audit operations been performed by this firm. controls and quality of performance with the vision to protect the interest of stakeholders and to safeguard the assets of the organization besides the implementation of an effective and efficient internal control systems. it focuses on the micro finance sector which is concerned about the Credit and financing needs of that section of the population that does not have access to the banking system. 51 . The CCD (Control and Compliance Department) comes under this department. This is a well reputed audit firm in Pakistan and overseas as well. Ferguson & Co. Audit group is committed to meet its objective that is to act as an independent appraiser that reviews systems. (Chartered Accounts).

that is customer centric and capable of meeting all external and internal customer expectations.a highly automated and fully integrated Bank. which would help to achieve the business objective and to conduct smooth and efficient banking business operations. The vision of Finance Department -. Finance & Accounting Operations Finance is the art and science of managing money. The primary responsibility of finance division is to provide reliable. It is said that accounts department is the backbone of the bank. which are :o o Petty voucher Adjustment voucher FUNCTIONS OF THE FINANCE DEPARTMENT An overview of the functions and activities of Finance department of UBL are as under The Department has an overall responsibility to establish and maintain standard accounting procedures in order to ensure consistency and uniformity in the Financial Management of the bank. There are two types of vouchers prepared for this purpose. For each and every transaction-taking place in the bank vouchers are prepared and through these voucher contra entries are passed under different heads. consistent and timely information to management. It plays a vital role in performing different banking functions. add value to the accounting system as well as compliance with internal control procedures. The working in accounts department mainly depends upon voucher system. Accounts department controls the expenses and their right allocation of such expenses to the right and appropriate accounts. regulators and internal business groups to help them take appropriate decisions for improved performance of the bank.9. 52 . shareholders.2. The accounts department of UBL is performing its function computerized.

 Keep up to date record to help management in taking the adequate course of action in any instance. Role of Financial Managers The financial manager of a firm plays an important role in the company’s goals.  Maintain accounting records and to prepare Financial Statements in accordance with the Bank Policy.  Facilitating the Customers by providing efficient accurate position of their deposits. 9. Investment Decisions :Financial Manager must be efficient in allocation of funds to specific assets.  Establish and maintain standardized accounting procedures for power plant to utilize the available financial resources in the most effective and efficient manner. International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) and best practices. policies and financial success.  Provide management reports when required by the management.3. designating the size of the organization and its rate of growth and have to monitor the firm’s financial position. 53 . A financial manager makes the long term capital budget and expenditure decisions. Forecasting and Planning :Financial Manager has to determine the proper amount of funds to employ in the organization.There are the following core functions and responsibilities of Finance Department in United Bank Limited : To be primary source of financial information and to ensure the integrity of financial management information. Financial Analysis. The Financial Manager’s role or responsibilities can be classified into following categories.

In a small company. evaluate the way in which employees work to determine the way to most efficiently get work done for the least amount of money. the primary duties of the CFO may be to oversee and manage a large accounting department. Again. while executives at larger corporations typically review 54 . Management of Financial Resources:Finance Manger manages working capital and maintains optimal level of investments in each of the current assets. In large corporations. The role of the CFO as financial manager The CFO wears many hats. a chief financial officer may directly perform many accounting tasks. these responsibilities could be shared with other corporate heads or with general managers or lower level supervisors.Financing and Capital Structure Decisions :Finance Manger has to determines both the mix of short term and long term financing and equity/debt finance and raises funds on the most favorable terms possible. He is also the financial risk manager for his company. protecting the company against adverse changes in the financial market and the financial conditions of his customers and vendors. He is • • • • A member of the senior executive team who decides upon both the strategic and tactical direction of the operations of his firm He face the company’s financial community. A chief financial officer is a top executive in a company who manages all aspects of financial matters and decisions. A CFO might. for example. Responsible for managing the firm’s financial decisions. while coming up with ways to maximize profit to the company. responsible for the preparation and integrity of the firm’s financial results.

Although the nature and extent of their role varies. and manages pay scales and benefits for employees. it often falls to the chief financial officer to play the central executive role. But to build and maintain an effective risk-management approach. and marketing. prepared by the management of company. • • • The financial statement. present fairly its states of affairs. Proper books of accounts of the company have been maintained Appropriate accounting policies have been consistently applied in preparation in financial statements and accounting estimates are based on reasonable and prudent judgment. and are compensated very well for their services. 9. Responsibilities towards Shareholders The Chief Financial Officer is required to provide all the necessary data to be presented in the “Director’s Report”. This type of professional oversees accounting departments. A company's CEO may be the person who sets broad risk guidelines and approves an overall strategic risk plan. Financial officers usually hold advanced degrees in finance or business management. cash flows and changes in equities.reports and numbers from various divisions within their companies. For this purpose Chief Financial Officer must ensure the following.4. the results of its operation. and build a strong risk culture. Use of Electronic Data in Decision Making Today is time of Computer Technology and UBL has the distinction of being ahead of all of its local and foreign competitors in this regard. creates budgets for new product research. This was made possible 55 . optimize business decisions. development. CFOs are uniquely situated to build and communicate an integrated risk view.

however further plans for improving operational efficiency are under-way. The management launched a transformation program in 2006 which aims to accomplish bank-wide business and technology reengineering. Critical information from these offices is physically delivered to a nearby located main branch. This system is helpful in maintaining the proper books of accounts according to prudential accounting system. This software is utilizing Oracle Financials at the back end.056 branches (including 15 over seas branches) of which 640 branches have on-line connectivity with the head-office through an ISDN or satellite connection while the remaining are still to be brought on-line. consolidation at the head office takes place at day end. The accounts 56 . Currently the bank is using an internally developed distributed database software called unibank. Out of the total off-line branches there are at least 211 branches in the far-flung areas of the country (FATA. In order to make the existing field staff abreast of changes in procedural working due to changes in procedural working due to introduction of IT based system. parts of Kashmir) which are not automated. Accounting System of the Organization UBL is following the “double entry system” of accounting.due to a comprehensive effort on part of Bank management to effect shift from traditional Manual Banking system to Biggest Online Banking setup in the country. It segregates the entries according to their proper allocated account heads. Operations of UBL have been significantly streamlined post-privatization. As all daily banking transactions are stored at the respective branches. UBL has a total of 1. intensive training facilities are provided in this technology at all the two Staff Training Centers. The bank has specialized software to support its various functions and the focus for some time has now been on enterprise application integration (middleware).

different deposits. accountant prepares daily. semi-annually and yearly financial statements. As the banks have to keep liquid cash with the SBP so this report list any increase/decrease of the balance with the SBP. 57 . Some of the reports are as follows: Daily Reports: ⇒ Daily Position: This report summarizes the daily position of all the main heads of the bank i. With the help of these books of accounts. cash etc ⇒ Balance Sheet: This report also summarizes the balance sheet heads of the bank up to the last working day.e. quarterly.department of UBL is performing its function computerized. monthly. weekly. For this reason there are many different types of reports prepared by the accounts department. ⇒ SBP Reconciliation Statement: This report is used in order to report the balance of the UBL with the SBP in the current account with SBP. ⇒ Summary Sheet: This report is sent to the reconciliation unit. ⇒ Reconciliation Reports: This is prepared in order to reconcile any outstanding and exceptional entry reported by the other branches through the reconciliation unit made by any of the functional department of the bank. It is prepared on branch wise basis. ⇒ Advances: This report summarizes the figures of the deposit accounts as well as the loan accounts of the customer with the bank. It summarize the all the head that have been credited to the Central Branch Control (CBC) Account. These reports vary from each other depending upon the information reported and the period for which these reports are prepared. TDR/NDR. Report Preparation The accounts department has to prepare the report for the internal control as well as for the financial reporting purpose. These reports are prepared by using the general Ledger that is updated by the system during the EOD (end of day) process. Different books of accounts relating with other departments are maintained here through computer software.

net financing amount. TDR/NDR. margin account. deposits. cash in hand in both local and foreign currency. ⇒ Detailed trial balance: This report summarizes all the balances in the different heads in the income. Monthly statements ⇒ Profit and loss statement: This statement is the income statement prepared for the month summarizing the revenue generated and the expenses incurred during the month. ⇒ Trial Balance: This is same as of the daily trial balance but is prepared with the span of one week by using the General Ledger of the weekend. ⇒ Daily expense vouchers: This report summarizes the daily expenses. TDR/NDR. financing. and foreign currency accounts. foreign deposits). ⇒ Deposit Comparative Position: This report summarizes the comparative position of the different deposit accounts category. ⇒ General Ledger: This ledger has the detailed information of all the heads in deposit. Weekly Reports: ⇒ Balance sheet: The balance sheet is prepared on the basis of the whole week activity by using the General Ledger of the weekend.⇒ Statement of Financing: This report summarizes the amount of financing extended to the customers. expenses. status of risk assets ( short term and long term). 58 . ⇒ Daily Statement of Deposits: It states the retail deposits ( current account . net deposit. hot deposits ( deposits of security on loaning in big amount in current account). financing and other related heads. status of risk assets ( consumer finance) like net lease value. ⇒ Risk Assets Liabilities Statement: This statement summarizes the status of liabilities of the bank. This is a very extensive report prepared by the system. income and other related accounts. financing against FE 25 and SBP refinance position. expenses.

When an entry is properly matched. ⇒ Month wise analysis of expenses. the final place is accounts department for recording these vouchers. investigation. ⇒ Quarterly Statements: ⇒ Tax Statements: These statements include staff tax statement. the date under which it is appearing in the ledger is noted against the entry in the statement and ledger vice versa. ⇒ Variance analysis: Comparison of balance sheet. These vouchers are of two types: • • Debit Vouchers Credit Vouchers These two vouchers are again classified into three following types of vouchers: • • Cash Voucher Clearing Voucher 59 . Reconciliations Reconciliation of Inter Branch is done by matching ledger entries to the statement entries. ⇒ Liabilities and Assets Statement. Vouchers Each and every transaction in the bank is made through vouchers. ⇒ Crucial Expense Statement. Officer in the accounts departments arranges these vouchers according to heads of accounts. The matching. and reconcilement of all accounts entries are done as frequently as the statement is received. services tax statement and supplier’s tax statement.⇒ Cost of Funds Statement. ⇒ Actual Budget Analysis.

There are two types of supplementary sheets: 1. Ledger for Term Deposits One of the functions of accounts department is to maintain and update the term deposit ledgers and books manually. Transfer Voucher are included. Cash Book It is maintained to keep the record of daily receipts and daily paid vouchers. Transfer Voucher are included. A sheet is prepared on which all the vouchers. passed during any one working day are consolidated and summarized. Term deposit receipt or TDR ledger is updated after every month for estimation of profit on customer accounts. It provides help in preparing Cash Book. Debit Supplementary Sheet: In which all debit Cash Voucher. Cashbook is consisted on the opening balance and the closing balance of the day. Credit Supplementary Sheet: In which all credit Cash Voucher. All the accounts fall under one of these two 60 . transfer and clearing is done through these vouchers. 2. Income account & Expenditure account. With the help of TDR the accountant prepares provisional ledger/Summary ledger and also statement of provisional expenses. For correct balance of the cash book there is a need to arrange all the vouchers. Accountant has to prepare different ledger for all schemes of term deposit. There are two main heads of the general ledgers. Clearing Voucher. Updating General Ledger When vouchers are recorded in cashbook then the balance of each head of account is posted to its ledger account. This sheet is called supplementary sheet. Clearing Voucher.• Transfer Voucher All the daily transaction in cash. The profit after every six-month will be the expense of the branch.

amount and running balance.main heads. The primary focus of UBL financial system is on automating processes within the bank and to develop robust databases that will provide a ‘single source of truth’ for all internal and external exporting reporting. transfer remittance. cash. amount. description.. Separate ledger is maintained for every head of account. ⇒ Daily General Ledger Regional Expenses ⇒ Daily General Ledger Audit Expenses The format of the entire above ledger is approximately same. advances are performed through these daily computerized ledgers. Dr. previous Balance. General ledger tells about A/C No. These databases will form the foundation on which other applications will be built. foreign exchange. party has to submit the last two to five years Balance Sheet and Profit & Loss Statement (Income Statement) duly attested to authorized auditors. It is preferred that the statements should be properly prepared and audited by Chartered Accountants that give the true picture of the business. Report of Financial Statements For obtaining credit. 61 . But in some cases as I observed in UBL most of the clients who lie in the category of Consumer Banking Client don’t have their Financial Statements. clearing. Finance System of the Organization Financial system of UBL includes from how to generate finance & where to utilize it. Cr. In UBL all the daily transactions in deposits. Accounts department Maintains and prepares the following ledgers and books of accounts: ⇒ Daily General Ledger Expenses ⇒ Daily General Ledger Incomes/Receipts ⇒ Monthly General Ledger Assets ⇒ Monthly General Ledger Liability ⇒ Daily General Ledger Zonal Expenses ⇒ Daily General Ledger Inspection expenses.

585. Investments and Profitability of UBL 62 .338 2007 2008 8.288 6 9.180.87 3 247.000 289. '000.260.53 483. 2006 6.256.180. Its importance remains evident in the banking sector as well.05 5 54.062 9 299. It runs its business activities well as the blood in a human body in other words we can say that the fund generating activities are backbone for any banking organization.675 6 115. There is a high percentage of risk involved in it. Deposits are main source of generating funds for any banking organization and for the general public to meet the financial needs.560.309.000 335. Sources of Funds Funds are the main element for carrying out the operations in any business concern.47 0 63.226. Deposits. As on 31st December Rs.475.In Such case UBL has to prepare the financial statement on the behalf of customer and it is mentioned in other relative documents that the financials submitted are self / un-audited.00 Particular/Years Share Capital Deposits Advances Investments 2004 5. lending to other financial institutions.354.117. The difference between the lending and accepting rate is the source of income for the bank.029.750 10.000 230. Deposits and fund generating activities are life blood for any banking organization.093.62 7 144.974.077.73 371.728 2005 5.64 116.953.29 9 204. For this purpose bank lends the amount to at a high rate and accepts the deposits from the general public at a low return. Generation of Funds The bank generate its funds through different kind of activities like offering new and attractive kind of deposits to its all kind of customers.810. The following are the main sources of funds for UBL.328.89 3 67. 9.6.188 400. Lending to Financial Institutions.

64 116.288 6 63 .360.701. Allocation of funds for UBL can be analyzed by the following table.728 63. '000 Particular/years Deposits Lending Financial Institutions Investments Borrowings from Financial Institutions Profit 2004 2005 2006 2007 2008 230.572.350 8.586 9.64 116.572.338 115.585.468.62 7 18.790.070 2007 24.029. Allocation of Funds Funds are allocated on “need to do” basis.886 8. For this purpose bank can make capital mix and offer outstanding shares.032 38.781.062 9 24.805.7.953.360.633 2005 17.for the last five years is under :- As on 31st December Rs.260.29 9 17. Surplus funds are invested in different other schemes to earn more by investing in risk free opportunities.975.944 67.552 2006 29.480 5.974. By this banking organization has to collect a handsome amount that can be allocated further to earn more.684 3.585.723 2008 22.338 115.944 67.120 11.226.552 335.328.029.867.195.781.288 6 59. landing to financial institutions and borrowing from financial institution are major sources by which we can analyze the bank allocation of fund.544 21.232 9.103.341 54.490. Description /Years Lending to Financial Institution Investment 2004 18.560.805.867.53 483.077.328.402.728 63.87 3 29.070 400.723 22.633 289.953.949.260.256.591 44.341 54. Banks offering the attractive deposits to its customers is the major activity of any banking organization.333.

that was my objective of specially studying the Finance Department of UBL and it is also because my specialization is in Finance.87 3 38.684 289. Theory is based on practical experiences and observation s of the writer.  Atleast 24 hours login transaction detail update in uni-bank.062 9 59.256. Financial Analysis (Ratios.Deposits and other accounts Borrowings from Financial Institution 230.790. Theoretical concepts which vary from my practical experiences are following.195.103. It is because sometimes.62 7 11.  Issuing of instruments / honoring of instruments beyond time / office hours.560. Horizontal & Vertical Analysis) Financial Analysis: is a process which involves reclassification and summarization of information through the establishment of ratios and trends.226.350 44.974.886 10.g Acceptance of cash beyond banking hours.29 9 21.975. So I think that if there is really a difference between bookish theories and the practices in an organization it may be because there are some deficiencies in that particular organization.53 483.480 335.  Critical failures in electronic transaction system. it is heard that there is a difference between theory and practice.077.490. violaty basic banking practices e. But I personally believe that it cannot be true. Financial analysis involves the use of various financial statements 64 . Critical Analysis of the Theoretical Concept Relating to Practical Experiences To observe that whether the techniques that we read in the books are being used practically or not.586 400.  To maintain clients.

to be sniffed but not swallowed” These statements do several things. again usually a year or a quarter ending with net income or loss for the period. 65 . This must be done with a view to forecasting the firm’s future prospective. For the purpose of understanding. A comparison of statements over several years reveals direction. It summarizes the assets. The Objectives of Financial Statement Analysis: The overall objective of financial statement analysis is the examination of a firm’s financial position and returns in relation to risk. Total assets = Total liabilities + Owner equity Income Statement: Income statement (Profit & Loss Statement) depicts a summary of the firm’s profitability over time. usually the end of a year or a quarter. the financial statements like balance sheet &Income statement will be used.” This technique is also known as comparative analysis. speed and extent of a trends. liabilities and owner equity of a business at a moment in time. Balance Sheet: Balance sheet represents a snapshot of the firm’s financial position at moment in time.Financial Statements: “Financial statements are like a perfume. It summarizes the revenues and expenses of the firm over a particular period of time. Horizontal Analysis “An analysis of percentage financial statements where all balance sheet or income statement figures for a base year equal 100% and subsequent financial statement items are expressed as percentage of their values in the base year. The most important item revealed by Comparative financial statement analysis is trend. income statement or statement of cash flow side-by-side and reviewing changes in individual categories on a year-to-year or multiyear basis. It is conducted by setting consecutive balance sheet.

950 18.449.844.552 63.893 3.969.008.526.341 115.11.470 247.697 2055609 17.810.100 17.006 4.463 299.439.070 67.580 2273005 7.840 2007 57.953.572.074.234. FINANCIAL ANALYSIS 11.476 29.736 371.055 204.867.069.451 2008 116.309.699.029.139.324 5.360.445 Deferred tax asset-net 5194892 Other Assets 4.154.174 22.000 Assets 2004 2005 34.728 12.585.191.288 Advances Operating Fixed Assets 144.943.021.944 14.965 Cash balances with other 23.723 7.829.770 906661 10.985 66 .786 2006 48.633 Institutions Investments 54.781.334 Bank Lending to Financial 18.338 4.675 16.328.128 24.740.497.354.805.717.435 treasury banks Balances With Other 17.132 11.151.939.1 BALANCE SHEET UNITED BANK LIMITED TABLE FORM ASSETS Rs.

341 59.982 67 .886 230.461 CAPITAL Rs.873 2007 8.746 9.000 6.661 8.077.664 12.915.411.911.256.000 LIABILITIES 2004 Bills payable Borrowing From Financial Institution Deposits Other liabilities 3.560.265.298.627 289.639.790.923 2005 5.490.103.079.188 10.034 13.159.316.LIABILITIES Rs.062 5.974.958 15.975.274.501.811.749 6.586 2007 6.429.475.750 2008 10.076 2.560.853 15.000 5.439 Surplus 2.684 2005 4.539 483.093.993 1.480 2006 4.873 400.261.964 21.659.604.649 38.449 44.703 16.195.996 2006 6.813 2.513 Un Appropriated Profit 3.653.000 REPRESENTED BY Share capital Reserves 2004 5.350.194.284 11.180.657 16.275.000 335.993.350 2008 5.

873 400.077.350.284 2005 4.000 LIABILITIES 2004 Bills Payable Borrowings From Financial Institution Deposits 3.103.664 2.539 Other liabilities Share Capital Un Appropriated Profit Reserves Surplus on Revaluation of Assets 5.886 230.439 6.180.649 2007 16.180.062 16.657 8.461 7.703 483.350 10.265.076 2.750 10.586 59.627 289.341 2008 5.316.480 38.000 5.993.000 8.993 12.853 13.746 5.911.653.204.661 8.659.475.915.964 2006 4.975.604.560.501.982 68 .079.749 5.274.958 15.000 6.639.490.449 11.974.996 2.790.704.429.195.UNITED BANK LIMITED BALANCE SHEET (LIABILITIES) Rs.813 9.188 15.194.034 6.225.923 3.411.684 21.299 335.811.

233.659 20.912 11.402.104 5.158.826 6.000 ITEMS Mark up/Interest earned Mark up/Interest expenses Net Mark up Interest Income Provisions Non Mark up Interest Income Non Mark up interest Expenses Profit Before Tax Profit After Tax Profit Available For Appropriation 2004 9.013.948.860.004.204.356 2008 52.674.619 8.568 14.310 8.687.936 6.565.499 17.291.543 16.126.648 5.345 4.394 13.317.702 28.949.488 9.121 2005 2006 2007 41.216.344 13.685.352 16.895.841 69 .809 20.2 INCOME STATEMENT ACCOUNT UNITED BANK LIMITED TABLE FORM Rs.794 7.187 24.497.481.881 1.591 20.375 10.688 13.544 - 12.424 8.333.864.701.936.117.045.948 14.112.361 24.760 7.913.991.501.732.603 6.547.468.045.472 20.728 3.247 4.232 16.120 24.992.756 9.974 8. 32.401.032 9.770.253.239.889.





ITEMS Profit After tax Total Assets Return On Total Assets

2004 3,701,544 272,612,663 21.32%

2005 5,949,032 347,048,951 27.45%

2006 9,468,232

2007 8,402,591

2008 8,333,120 605,072,482 19.0%

423,265,873 530,124,331 31.70% 19.80%


35 30 25 %AGE 20 15 10 5 0 2004 2005 2006 YEARS 2007 2008 return on total assets

COMMENTS: Return on total Assets shows increase from 2004 to 2006 and in 2006 its higher side in studied 5 years which shows the UBL is effectively uses its all available assets to generate revenue. But in 2007 its decline due to the economic shocks faces country, but UBL shows stability in 2008 which is good sign.

ITEMS PROFIT After tax Share holder Equity Return on Equity 2004 3,701,544 14,089,592 26.271% 2005 5,949,032 14,317,457 41.550% 2006 9,468,232 14,433,534 54.310% 2007 8,402,591 25,767,701 31.390% 2008 8,333,120 27,258,613 30.570%

Share holder Equity = share capital+ Reserves + Surplus


RETURN ON EQUITY 60 50 40 %AGE 30 20 10 0 2004 2005 2006 YEARS 2007 2008 RETURN ON EQUITY

COMMENTS: ROE measures the over all firm performance. ROE compares net profit after tax to the equity that share holders invested in the bank. For the UBL, this ratio also shows the constant increase till 2006. A high return on equity often reflects the firm’s acceptance of strong investment opportunities and effective expense management. And higher the return on equity might simply be the result of assuming excessive financial risk.

ITEMS NET PROFIT Total Deposits Return On Deposit 2004 3,701,544 230,256,627 1.607% 2005 5,949,032 289,226,299 2.056% 2006 9,468,232 335,077,873 2.825% 2007 8,402,591 400,974,539, 2.095% 2008 8,333,120 483,560,062 1.723%


5 0 2004 2005 2006 YEARS 2007 2008 RETURN ON DEPOSITS COMMENTS: This ratio indicates to what extent deposits which represent funds mobilization on the part of the bank contribute towards income generation. 73 .5 1 0.RETURN ON DEPOSITS 3 2.5 2 %AGE 1. Although the other ratios regarding the profitability are showing satisfactory position of the bank but still bank need to increase its utilization of resources in order to increase its profitability because the banks have to pay heavy taxes on their profit.

74 .95% MARGIN OF PROFIT 45 40 35 30 25 20 15 10 5 0 2004 2005 2006 YEARS 2007 2008 %AGE MARGIN OF PROFIT COMMENTS: Profit margin for UBL is on decreasing side and it is because of the increasing of mark up interest earned.701.253.333.603 28.468.51% 2006 9.045.991.860.543 20.949.233.120 52.361 15.47% 2008 8.881 40.MARGIN OF PROFIT: ITEMS Profit after Tax Mark up.032 20.70% 2007 8. Interest Net profit Margin 2004 3. The whole banking sector faces the same declining trend.158.544 9.232 32.1% 2005 5.402.591 41. 29.

31 2008 8.718.468.24 EARNING PER SHARE 14 12 10 %AGE 8 6 4 2 0 2004 2005 2006 YEARS 2007 2008 EARNING PER SHARE COMMENTS: Earning per share indicate the amount of earnings for each common share held.000 7.750 8.) 2004 3.70.718.544 518.70 2007 8. 11.701.375. UBL earning per share is on higher side in 2006 which is Rs.000. 75 .500.591 1.750 8.032 647.011.000 11.15 2005 5. Of Shares Earning Per Share (Rs.232 809.19 2006 9.949.402.000 9.EARNING PER SHARE ITEMS Profit After tax Total No.120 1.333. Earning per share is useful indicator of the operating performance of the bank.011.

684 144.151.It shows that bank loans have decreased as compared to its advances.103.490.886 371.908% LOAN TO ADVANCE RATIO 25 20 %AGE 15 10 5 0 2004 2005 2006 YEARS 2007 2008 LOAN TO ADVANCE RATIO COMMENTS: Lower the ratio is better for lending institutions.564% 2007 59.308% 2005 21.7%.354.810.893 15.055 8.975.9% from 19.736 19. In this case ratio is decreased to 11.675 11.350 299. Which is better for bank . 76 .139.309.586 247.LIQUIDITY OR SOLVENCY RATIOS LOAN TO ADVANCE RATIO ITEMS Total Loans Total Advances Loan to Advance Ratio 2004 11.480 204.195.470 10.743% 2008 44.790.639% 2006 38.

951 6.612.1% 2007 59.482 7.14% 2008 LOAN TO TOTAL ASSETS 12 10 8 %AGE 6 4 2 0 2004 2005 2006 YEARS 2007 2008 LOAN TO TOTAL ASSETS COMMENTS: It shows the empirical relation between loan and assets of bank.350 530. which shows better performance of bank. 77 .4% 2005 21.3% 2006 38.331 11.873 9.103.LOAN TO TOTAL ASSETS ITEMS Total Loans Total Assets Loan to Total Assets 2004 11.195.684 272.586 423.480 347. Here this ratio has increasing trend till 2007 but in 2008 it again on decline.790.886 605.975.124.490.048.663 4.

4 0. 78 .8 0.873 0.63 2005 204.139.2 0.675 483.736 400.810.74 2007 299.077.75 2008 371.6 0.055 230.309.77 ADVANCE TO TOTAL DEPOSITS 0.226.9 0.1 0 2004 2005 2006 YEARS 2007 2008 %AGE ADVANCE TO TOTAL DEPOSITS COMMENTS: As deposits show an increase.299 0.627 0.ADVANCES TO TOTAL DEPOSITS ITEMS Advances Total Deposit 2004 144.354. This shows an increase in area of activity of bank.470 289. the advances also increased.539.893 335.7 0.256. 0.3 0.062 0.974. Bank is now providing the advances and loans to more customers as compared to previous year.560.5 0.151.71 2006 247.

939.560.451 400.873 14.61% and then to next year it stabilize but it decline in 2008 which shows banks cash position is disturb and UBL management is to improve it in future.299 11.78% 2006 48. 14.35% 2008 50.35% CASH TO DEPOSIT 16 14 12 %AGE 10 8 6 4 2 0 2004 2005 2006 YEARS 2007 2008 CASH TO DEPOSIT COMMENTS: This ratio shows that how much cash is available to meet the demand liabilities of depositors.35% 2005 10.435 230.526.062 10.61% 2007 57.840 335.786 289.CASH TO DEPOSIT: ITEMS Cash Deposits Cash to Deposits 2004 23. 79 .077.069. The graph shows its higher position in 2006 which is 14.844.974.965 483.539.256.

PROPRIETRY RATIO: ITEMS Share Holder Fund Total Assets Proprietary Ratio 2004 14.072.592 2005 14.701 2008 27.433.612.124.767.613 605.317.258.663 347.51% 272.048. 80 .951 423.534 2007 25.265.17% 4.457 2006 14.13% 4.05% PROPRIETARY RATIO 6 5 4 %AGE 3 2 1 0 2004 2005 2006 YEARS 2007 2008 PROPRIETARY RATIO COMMENTS: It is the ratio of funds belonging to shareholders to the total assets of the company. In this case this ratio has increased till 2007 and in 2008 it slightly down.873 530.089.331 5.12% 5.482 4.

663 93.5 91 2004 2005 2006 YEARS 2007 2008 DEBT RATIO COMMENTS: The decreasing debt ratio shows the decreased share of debt in total assets as compared to owner’s equity.8% DEBT RATIO 94 93.402.486 423.482 92.5 93 %AGE 92.248.331 92% 2008 561.048.209.DEBT RATIO ITEMS Total Liabilities Total Asset Debt Ratio 2004 2006 393.380.702.927 530.612.5 92 91.265.63% 2005 325.873 93% 2007 487. The lower the share of the debt more will be the secure financial position. 81 .632 272.723 605.681 347.951 93.

126.62% 2007 16.732.077.045.809 335. the lower the mark up paid is better for institution.948 289.760 230.22% 2008 24.226.GENERAL RATIOS COST OF BORROWINGS ITEMS Mark up Paid Deposits Cost of Borrowing 2004 1.117.187 400.936. 82 .974.10% 2006 12.560.75% 2005 6.873 3.627 0.539 4.062 4.256.98% COST OF BORROWING 6 5 4 %AGE 3 2 1 0 2004 2005 2006 YEARS 2007 2008 COST OF BORROWING COMMENTS: It is a comparison between mark-up paid and deposits.299 2.702 483.

634 483.256. EXPENSE TO DEPOSIT COMMENTS: It shows the cost incurred to manage and collect the deposits.5 2 1.26% 2007 13.275 335. EXPENSE TO DEPOSIT ITEMS Admin.20% ADMIN.974.560.013 289.5 0 2004 2005 2006 YEARS 2007 2008 ADMIN.062 3.539 3.5 1 0. And UBL case this ratio shows stability.952.977 400. EXPENSE TO DEPOSIT 4 3.420.627 2.299 2.794.72% 2006 10.077.34% 2008 15.ADMIN. Deposit Ratio 2004 6. Exp. 83 .226.874.95% 2005 7.519.311 230.5 3 %AGE 2.873 3.

But in drive. cash line and business lie the % shows improvement which prove the positive performance of UBL management towards there customers. 84 .COMMENTS: In consumer product the UBL shows mix trend.

Horizontal Analysis of UBL Particulars/Years Assets Cash & Balances with Treasury Banks Balances with Other Banks Landings to Financial Institutions Investment Advances Fixed Assets Deferred Tax Assets – Net Other Assets TOTAL 2004 % 100 100 100 100 100 100 100 100 100 2005 % 143 72 97 115 142 112 44 176 127 2006 % 205 79 161 122 172 132 17 225 155 2007 % 241 24 135 210 208 427 264 194 2008 % 210 42 124 212 257 454 40 386 222 Analysis of UBL Assets In horizontal analysis all calculations are calculated on the basis of base year 2004. Thereafter. Cash and balance with treasury banks in 85 . The Assets of the United Bank Limited balance sheet show the constant growth in every year. The resulting figures are called index numbers and this analysis is also called Index Analysis.4. the standardization of balance sheet and income statement items as percentages of totals and indexes to a base year often gives us insights additional to those obtained from the analysis of financial ratios. Here are the Horizontal Analysis balance sheets of UBL and the actual balance sheets from where the data been take are attached as “Annexes” at the end of this report. Such percentages are calculated by selecting a base year and assign a weight of 100 to the amount of each item in the base year statement. the amounts of similar items or groups of items in prior or subsequent financial statements are expressed as a percentage of the base year amount. In short.11. Horizontal Analysis of Balance Sheet The horizontal financial statements analysis is done by restating amount of each item or group of items as a percentage. In Balance Sheet Cash and balance with treasury banks & Operating fixed asset show the constant growth in every year.

454% that shows the gradual increase in every year.2005 is 143. Investments. In 2008 that is 210% which was 31% decrease from 2007. in 2006 that is decreased and reached at 17% and in 2008 that is 40% which is 23% increase from 2006. but decline in 2007 that is 24% which is 55% less than 2006 due to deteriorating performance. Fixed Asset in 2005 is 112%. These changes are minor and overall show the stability & development of the organization. Lending to financial institutions is 97% in 2005. In 2006 that is 161% that is 64% increased from 2004. In 2007 that is 241% that is increased 36% from the previous year . That’s all show the efficient working & effective implementation of United Bank Limited management policies. 2007. But in 2007 that is 135% which is 26. In 2008 it is 42% which increase slightly from the previous year. Deferred tax asset-net in 2005 that is 44%. And the economic condition of the country and the whole world. 2008 that is 132%. in 2006. 86 . advances and other assets also show the constant growth. the reason of this decline is due to new rule and regulation of State bank of Pakistan. Balances with other banks shows increase in 2006. 427%.% less than 2006 due to some problems in the implementation of management policies.% and in 2006 that is 205% which is increased. in few years that is shows increase. Constant increase in Operating fixed asset show the growth and development of United Bank Limited. In 2008 it is still decline from the last year just because of non performing loan increase in the country.

and show that the UBL growing to overcome on borrowing from financial institution. UBL working on several policies and trying to adopt and implement the policies through which they can reduce their liabilities. In the case of Borrowing from financial institutions. and at 2007 its reached to its highest point but in 2008 it is decline 124% from 2007 which is good sign. In 2007 it reached to 159% and in 2008 it is 136% that is 23% decreased from 2007. Bills Payable in 2005 is 109% and in 2006 that is 120% which is 11% greater. liabilities at the same time also increasing.Net TOTAL 2004 % 100 100 100 100 100 100 100 100 100 2005 % 109 182 127 109 100 105 224 97 125 2006 % 120 321 146 163 125 140 380 89 172 2007 % 159 493 174 233 156 173 478 281 244 2008 % 136 369 210 285 195 262 507 55 253 As the asset of the United Bank Limited is growing every year. 87 .Analysis of UBL Liabilities Horizontal Analysis of UBL Particulars/Years Liabilities Bills Payable Borrowings Deposits & Other Accounts Other Liabilities Share Capital Reserves Un-appropriated Profit Surplus on Revaluation of Assets . It is increasing from 2004 to 2007. No doubt that the liabilities is on increasing side the basic reason of this is the economic condition in the 2007-08.

Share capital of the United Bank Limited remain same in 2004.2005 years that is 5. 88 . 89% in 2006 which show decreasing trend in 2007 it’s again on higher side which 281% and in 2008 UBL overcome and the ratio is decrease from 2007 and shows 226% decrease. In 2004 UBL shows profit. un-appropriated profit which was huge increased. In 2005 reserves are 105%.And from 2006 the share capital in increasing.180. and in 2007 is 173% and 262% in 2008 which is 89% more than the 2007. In 2005 United Bank Limited had 224% which is increased from the previous year and in 2008 it is 507%. Surplus on revaluation of fixed asset is 97% in 2005. however its increased in 2006 by 6. Reserves of the United Bank Limited are constantly increasing every year.000.000. in 2006 is 140%. It is just because the successful implementation of policies of United Bank Limited.475.

It summarizes the revenues and expenses of the firm over a particular period of time. Description / Years Mark up /Interest Earned Mark up/Interest Expensed Net Mark up /Income Provisions against loans and advances total Net Markup/Income After Provisions 2004 100 100 100 100 100 2005 218 349 188 421 177 2006 357 700 278 683 259 2007 444 977 321 1895 247 2008 566 1392 375 2389 280 Non Mark up / Interest income Fee comm.5. again usually a year or a quarter ending with net income or loss for the period. Horizontal Analysis of Income Statement of United Bank Limited:Income statement (Profit & Loss Statement) depicts a summary of the firm’s profitability over time.11. & Brokerage Income Dividend Income Income From dealing in Foreign Currency Other Income Total non-markup/Income Non Mark up / Interest expenses Administrative Expense Other Provisions/(Reversal) Other Charges Total non-mark-up / Interest Expense Profit Before Taxation Taxation Profit After Taxation Inappropriate Profit brought forward Profit available for appropriation 100 100 100 100 100 154 18 101 123 111 268 76 99 69 154 312 50 124 151 200 381 53 272 136 231 100 100 100 100 100 100 100 - 116 100 67 121 194 297 161 236 100 161 67 248 165 292 406 256 531 181 197 70 167 245 266 387 227 898 224 228 134 2470 2002 284 466 225 1130 260 89 .

its expenses are showing also increasing trend. however its showing increasing trend for further three years which is showing that the bank is earning well because of well control efforts of the management of the UBL Bank Limited. after that from the year 2005 it shows the gradual increase which is showing that bank is earning a better rate of interest income rather than its expanses. The management of the UBL Bank Limited is managing its business activities very well on yearly basis.Comments on Horizontal Analysis of Income Statement:Net Markup/Income can be obtained by subtraction of Markup Interest Expense from Markup/Interest Earned. Profit Before Taxation can be obtained by subtracting the expenses from total income. other provision and charges. after deducting the due taxes on total income earned during the year the balance amount can be said profit after taxation that also showing an increasing trend which show that the health of business for UBL Bank Limited is good and competing well in the banking sector of the country. Non-markup/Income included the fee commission and brokerage income. The profit before taxation is the amount which is due for the tax levied by the government. It shows that bank is doing its business well. For the purpose of horizontal analysis we have taken the year 2004 as base year. accounts maintaining fee. During the year 2005 net interest income is 188%. Non-markup/Interest Expense can be obtained by taking the administrative expenses. The total nonmarkup income is been 111% as compared to the base year which shows a little bit increase. Profit after Taxation. which is showing that the expenses are on higher side due to implementing new polices by management of the UBL. In the analysis table the profit before taxation is showing also increasing trend respectively. The UBL Bank Limited is offering well reputed services to its customers so they are attracting to the bank and the rate of earning for the bank is getting well year by year. dividend. 90 . gain on sale of securities or other income. attracting and offering services to its customer upto their satisfaction level so that its earning ratio is good and showing increasing trend.

24 2007 % 10.67 2. liabilities and equities) in a balance sheet is represented as a proportion of the total account. The main advantage of analyzing a balance sheet in this manner is that the balance sheets of businesses of all sizes can easily be compared.63 100 0.66 5.42 1.28 11. It also makes it easy to see relative annual changes in one business Particulars/Years Assets Cash and Balances with Treasury Banks Balances with Other Banks Lending’s to Financial Institutions Investment Advances Fixed Assets Taxation Recoverable Deferred Tax Assets .22 61.15 18.32 6.34 2.77 19. Vertical Analysis of Income Statement A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets.98 91 .98 15.50 6.45 9.82 3.16 59.89 58.74 20.83 100 Vertical Analysis of UBL 2004 2005 2006 % % % 8.36 100 2.25 100 0.85 0.34 2.91 1.67 21.56 3.23 2.47 3.27 1.19 2008 % 8.21 100 0.Net Other Assets TOTAL 1.79 4.80 56.90 1.15 52.24 3.75 1.

86 7.20 1.11 79.51 0.63 100 2007 % 1.79 1.53 1.19 1.94 0.98 2.20 6.42 2.39 84.30 79.67 2.49 1. the various components of balance sheet express as the percentages of the total asset of the organization.84 100 2006 % 1.60 100 2008 % 0.46 1. In the balance sheet.15 75.42 1.79 2.96 2.09 1.13 2.28 0.15 1. 92 .92 1.12 0.90 1.17 1.95 1.15 1.08 9.34 1.27 100 Vertical Analysis of UBL Data In vertical financial statement analysis.15 11.10 100 2005 % 1.53 1.94 2.Particulars/Years Liabilities Bills Payable Borrowings Deposits & Other Accounts Sub-Ordinate Loans Liabilities against Assets Finance Lease Other Liabilities Deferred Tax Liabilities Share Capital Reserves Un-appropriated Profit Surplus on Revaluation of Assets – Net TOTAL 2004 % 1.40 4.28 83.00 2.56 2. The analyst may observe the trend of the increase in the assets and liabilities.90 2.74 0. The expression of individual financial statement items as percentages of totals helps the analyst to spot trends with respect to the relative importance of these items over time. for example the assets as well as the liabilities and equity are each expressed as 100% and each item in these categories is expressed s a percentage of the respective totals. The strategies may include increase/decrease the holding of certain assets. Vertical/Crosssectional/common size statements came from the problem in comparing the financial statements of the organization that differs in size.64 1.

During the year 2004 this is increased because by keeping this bank can earn a better mark up on the amount or balances kept with other banks. 11. Balances with Other Bank. the vertical ratio are 6. 3.50. For the 2004 bank has increased the deposits with treasury to comply with the statutory requirements issued from time to time.27 for the years 2004 to 2008 respectively.56. cash reserves and capital requirements and also represents the US $ settlement account being maintained with State Bank of Pakistan. 3.66. Cash & Balances with Treasury showing the ratios 8.85 and 8.43 percent is increase in deposits accounts as per previous years. However during the year there is a big change in balances with treasury that is being kept to meet the day to statutory requirements. For the year 2005 2006 both deposits been decreased because mark up rates. Lending to Financial Institutions are showing the mix trend in balance sheet.32.24 for the years 2004-2008 respectively which are also showing a gradual increase in first year and showing decrease in last four years. 9.79 and 1. Fixed Assets are showing overall a positive trend for the bank. 0. 20-25% to electrical.82. 10. office equipment and computer equipment and 93 . The fixed been depreciated by the auditors on the rates as 5% charged to buildings. 10% charged to furniture and fixture. During the year 2004 there was 90 percent increase in banks current deposits by last year and 26.75.The trends and ratios for vertical analysis shown in the table some of the important reasons for this change in assets and liabilities can be discussed as under. in the year 2004 and 2005 deposits with SBP increased to meet the statutory requirement and to meet the maximum cash reserves and capital requirements pertaining to the foreign branches. For the year 2004 the mark up rates were better so lending to financial institutes is showing a better position in the balance sheet however during the year mark rates been increase so there is declining in lending to financial institution up to the year 2005 however during the year 2006 there is increase in lending because mark up rates increased and bank soled the collateral also.

Assets like building. During the year 2004 2005 and 2006 the fix asset show decline trend but in 2007 and 2008 in fixed assets shows increasing trend because of the purchase of electrical.20% charged vehicles. equipments and vehicles by purchasing new assets and also there is deletion in amount by selling the old assets and also by giving the retirement benefits to employees and there is deletion in amount due to depreciation charged on these assets too at specified rate. property and equipments also for the betterment environment for employees to enhance their ability to work and for customers as well. so that the deposits are increasing every year and also helpful for the business volume of the bank. equipments and vehicles revalued and depreciated at the specified rates as previous practice of the bank. and addition in vehicles and furniture and fixture is also the cause behind this on the other hand the bank has sold out the old one also. furniture and fixture. Similarly for the year 2006 there is an addition fixed like building. For the year 2006 fixed assets increased because of increase in capital work in progress comprises on civil works and advances to suppliers and contractors. intangible assets and capital work in progress also increased during this year. During the year 2005 there is a major change showing in the balance sheet due to increase in the property and equipments of the bank. office and computer equipment to enhance the capability of the bank. borrowing has been made by local currency. Deposits and other Accounts shows an increasing trend in its percentages for that shows the bank management trying to continuously to compete with their competitors well by offering the new attractions to the general public customers and corporate sectors customers. foreign currency. 94 . as for as concerned to bills payable and borrowings from financial institutions these are showing the increasing trends as shown in the above table which is showing the increasing trend in liabilities of the bank. secured loans from financial institutions and borrowed from State Bank of Pakistan to run its day to day need and requirement of the business. Bills Payable and borrowing from Financial institutions. furniture and fixture.

95 . and improving the business and trying to compete well in the market.000 million Profit as for as concerned to the profit for the bank.In the case of other liabilities there is increasing trend too because of interest payable on local currency and foreign currency. there is loss during the year 2003.1. proposed cash dividend.6. Share Capital shows the increasing change form the year 2004 to 2005 but during the year 2006 and 2007 the bank issued bonus shares for Rs.295.475. after that there is positive increase in the profit rate which shows that bank management is doing well and trying to cop up on the deficiencies. forward foreign exchange contacts etc and also there is an increase in deferred liabilities too during the year 2004 because the management has increased the entitlement of employees in respect of leaves prior to their retirement from 180 days to 365 days.000 million which results the change in total share capital to Rs.

5 0.6 15 56 24 0.03 23 22 8 14 21 36 31 37 11 26 8 0.46 0.05 25 32 11 21 16 37 2007 2008 100.5 35 2006 100.77 2.62 1.31) 0.0 0 73 27 46 5.3 0.00 0 71 68 29 41 11 30 9 0.33 1.09 62 44 11 34 13 47 2005 100.41 0.0 0 84 16 68 3.6 19 67 30 1.1 10 41 106 62 (0.02 31 36 14 23 12.1 65 15 10 6.0 100.4 48.4 10 0.0 0 77 23 54 5.6 1.78 15 46 23 0.11.85 1.4 0.9 14 40 20 0.7. Vertical Analysis of Income Statement Description / Years Total Markup & Non Markup Income Mark up/Interest Earned Mark up/Interest Expensed Net Mark up/Income Provisions against loans and advances total Net Mark up/Income After Provisions Non-mark-up/Interest Income Fee commission and Brokerage Income Dividend Income Income From dealing in Foreign Currency Gain on sale of Securities Other Net Income Total non-mark-up/Income Total Income Non-mark-up/Interest Expense Administrative Expense Other Provisions / (Reversal) Other Charges Total non-mark-up/Interest Expense Profit Before Taxation Taxation Profit After Taxation Unappropriated Profit brought forward Profit available for appropriation 2004 100.4 1.46 2.33 22 18 7 11 20 32 96 .4 4.95 1.58 0.1 41 10 1.76 2.

So that the banks earning ration is getting better as showing the profit before taxation in the above table. Which are showing that the management done the good efforts to control the administrative expenses. The bank management is not emphasizing on the non markup earning 97 . While analyzing the total non markup income is showing decrease in 2005 but after that UBL management is stabilize it which shows the good sign for the bank. In UBL case the declining trend is minimize by the active decision making regarding all activity. Profit before taxation is showing decreasing trend due to the market condition and the over all world wide economic condition. The over all banking sector in Pakistan showing declining trend in making profit. activities. In the first three years it is little bit in control by the management but after 2007 its shows decreasing trend which shows that UBL facing problem in implementing some polices. As shown in the above table net markup income after provisions is showing a gradual decrease which shows the negative sign for the bank. It shows that the earning on non markup activities is going well so that the non markup income is also increasing. provisions and other charges. Non-mark-up/Interest Expense the above table is showing overall decreasing trend for the last five years.Comments on Vertical Analysis of Income Statement:The vertical analysis of the income statement is showing the following trends by comparing the last year ark up interest earned is on increasing side which show good performance of UBL in last year it decline slightly which show the impact of economic condition of the country. The same condition is showing in Profit after taxation.

8% from Rs.8 billion. 5.063. The major increase was witnessed in NBP Rs. 4.122. COMPETITORS IN BANKING SECTOR  NATIONAL BANK OF PAKISTAN  MUSLIM COMMERCIAL BANK LIMITED  HABIB BANK LIMITED  ALLIED BANK LIMITED MARKET SHARE IN TERM OF ASSETS During the year total assets for banks under review have increased by 22.4 billion at December 2007.5 billion at December 2006 to Rs.7 billion.8. Banking Survey 2007 98 .. 607. The major growth in terms of amount was in Large Size Banks which registered an increase of Rs. 126.11.

2.4% in 2006 (Rs.7% between 31 December 2005 and 31 December 2006 (Rs.3 billion in 2007 (from December 2006) compared to an increase of 20.302 billion).5 billion).733.3% to Rs.145.846. Banking Survey 2007 99 . 3.5 billion) as compared to 16.8% in 2007 (Rs. Large Size Banks registered a growth of 18. 2.MARKET SHARE IN TERM OF DEPOSITS Deposits for banks under review increased by 22. 3.

The ratio of provision against NPL to total advances also improved due to provisions made during the year as a result of withdrawal of the benefit of FSV for the computation of provision against NPL for most type of advances.5% from Rs. 2.298. 2.1 billion at December 2007. 100 .2 billion as at December 2006 to Rs.1% in 2007 as compared to 24. Advances of Medium Size Banks increased by 14.7%. Advances of Large Size Banks increased by 12.6% in 2006.632.6% and Small Size Banks grew by 43.MARKET SHARE IN TERM OF LOAN AND ADVANCES Total advance of banks under review increased by 14.

3 billion in 2005. Banking Survey 2007 101 . 25 billion. The additional provision made due to withdrawal of FSV benefit against most types of advances amounted to approximately Rs.3% to Rs.1%. 28. MCB 19% and NBP 7.5 billion which is approximately 28.5% in profit before tax. under review profit before tax decreased by 8. 120. In terms of amount NBP posted the highest profit figure of Rs. 22.1 billion respectively. BAF registered an increase of 162.91.5 billion and Rs.7 billion in 2006 and Rs.110. 15. The main reasons for reduction in the profitability was additional provision against NPL due to the elimination of benefit of FSV and downturn in consumer and individual banking.7 billion in 2007 compared to Rs.5% of total profit before tax of the Large Size Banks followed by MCB and HBL with Rs. Among Large Size Banks.Banking Survey 2007 MARKET SHARE IN TERM OF PROFITABILITY For banks.

Short-Falls/Weaknesses SWOT ANALYSIS: STRENGTH  strong and trusted name  one of the largest branch network  ability to develop and launch new product  international presence WEAKNESSES  lack of motivated employee  high turnover rate  over employment 102 . infrastructure and internal system. role of SBP Political and economic condition 12. Future Prospects of the Organization      Customer focus Developing human resources. Improvement in solvency Improvement in non performing loans.11.9.

The internship of UBL given me as exposure to the 103 . employees reluctant to change  change difficult to achieve OPPERTUNITIES  increase service delivering channels  launch SME products  focus on consumer banking  investment in human resources  penetration in regional markets THREATS  intense credit risk  increased competition  destabilization of macroeconomic condition  interest/ markup risk  liquidity risk 13. Conclusion The analysis of shortfalls/weaknesses narrated above tells us about the present vital concern.

PLS. Non-productive activities needed to be stopped which are not fruitful for the banking business of UBL.  The branches of UBL.  The bank may have to draw a comprehensive and uniformed recruitment policy in order to induct the competent and professional employees to meet the deficiency of staff. facing losses need to pay special attention to improve the performance of these branches by conducting or posting the efficient staff having good personal relations. These suggestions and recommendation are as follows:  UBL may have to improve its inside and outside decorum of the bank to attract its customer. They can be helpful to improve the performance and can also increase the funds for such branches. in my opinion all banking operations need to be computerized to improve the working efficiency of the employees and banking business as well.  The bank may have to start new attractive promotional activities to enhance the banking business in the region by offering new products and services for existing and new customers. The experience I got during the internship will help me in understanding the decision-making and how to solve daily problems encountered during the practical working environment. 104 . and advances are computerized but. such political involvement can effect all the departments of any organization.accounting atmosphere.  Though CD. The political involvement need to be minimized on all the operations of UBL. Specific Recommendations During my internship at the UBL I find out week areas that require improvements for long-term benefit of the organization. It helped me greatly in understanding the financial system. 14.

kpmg.com.org. d. The equality in policies and implementation of rules and regulations will bring more mental satisfaction and will increase the working efficiency of their employees. SIEGEL. JOEL G. Chapter “Financial Analysis”. a.com http://www. c.com.google.pk www. References & Sources In order to collect data. Internet :During the preparation of this report I also got the benefit of internet and for this purpose I used the following sites :www. I used the following modes of research. The bank may have to make it possible thorough implementation of all policies and specially rules and regulations. Annual reports of the organization Previous reports on UBL Books JAE K.sbp. b. 15.pk 105 . Managerial Finance. Personal Observations Existing documents. SHIM.ubl.pk www.

Annexure A 106 .

Annexure B 107 .

Annexure C 108 .

Annexure D 109 .

Annexure E 110 .

Annexure F 111 .

Annexure G 112 .

Annexure H 113 .

Annexure I 114 .

Annexure J 115 .

116 .

Organogram Of Finance Department 117 .

OG-III. Contractual 118 .Organization Chart of Airport Branch UBL Branch’s organizational chart of account is as under :- Branch Manager Branch Operational Manager Foreign Exchange Remittance Collection Compliance OG-I & OG-II OG-I & OG.III CROs OG-I.

119 .

Sign up to vote on this title
UsefulNot useful