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UBL Introduction:-

United Bank Limited was established on November 7, 1959 and incorporated as a

Public Limited Company under Companies Act 1913 with authorized capital of Rs.20
million and Paid-up capital of Rs.10 million. In its very first year, it mobilized deposits of
Rs.70 million and earned a profit of Rs.O.7 million. It continued to grow rapidly and
soon became one of the largest banks in the country. The main reasons for its exemplary
growth were the introduction, in many instances for the first time in Pakistan, of
professional management, computers, economic and business research, latest managerial
practices and customer orientation.

The Bank is currently operating 1056 Branches Domestically and 15 Branches Overseas
USA, Qatar, UAE, Bahrain and Republic of Yemen). UBL hold 51% of its total shares
other 49% shares are owned by Government. After the privatization of banking sector in
Pakistan UBL implemented its strategies to achieve the comparative advantage in the
Market place. UBL due to its innovative corporate culture wins their customer trust.

In SWOT analysis each word depicts a broad sense which describes the overall
position of the organization in the current market scenario.

S stands for Strength which an organization have over the other who are performing the
business of the same nature.

W stands for Weakness in an organization which should be cover the Organization to

compete with competitors,

O stands for opportunity which are persisting in the market and organization have a
ability to avail them.

T stands for threats which are faced by the organization to grow in the market.

Each of these described below in detail.


• 3rd largest Bank of Pakistan in term of deposit so the bank has core strength that
it will not be affected by the changing Government regulation.

• UBL have 1056 branches all over the country and able to deliver his services all
over the country even in the Rural, Semi Rural and Urban area of the Pakistan.

• UBL have a large number of ATM and online banking facilities for his customers
and able to deliver efficient services to his customer.

• UBL continuously improved its product and introduce new product for his
customer according to their requirement and need.

• UBL have corporate financer in Pakistan and have a secured investment in large
scale industries of Pakistan like Airline Industry, Cement Industry.

• UBL provide wealth management services and offer short term, medium term and
long term deposit for his customer with the help of UBL Assets management and
UBL fund Management Company.

• UBL is the schedule Bank of Pakistan and have marvelous image and confidence
in the eyes of the customer.

• UBL have the best talent and most experienced employees of the market who are
able to handle any type of situation.


• No standardization in terms of branches some of the branches are very attractive

and most of the branches are not very good like other branches.

• UBL is not persisting in the financing of SME the major sector of Pakistan due to
its bad experience in past which have significant impact over the profitability of
the Bank.

• UBL is a step behind in using the new technology as compared to its competitors.

• Most of the employees are overload with the work and promotion is also not

• Most of the employees of the UBL are not following the dress code explained by
the Bank in his procedure.
• Customer Services desk of the UBL is not present in all the branches and
customer facing delays in deposit and obtaining information regarding the other
product of the Bank.

• Employees of the Bank do not have the complete knowledge of his product and
they are unable to offer right to product customer to avail maximum benefits.

• Security System of the bank is not upto date and volition of government rules is
persisting in the bank


• Branches of the bank exist in all over the country and Bank can attract foreign
deposit which is mainly in rural areas of the country by offering attractive

• Proper orientation of employees in all branches can help them to cope up with
foreign banks

• By bringing new technology and modern business processes will bring the change
and increase their profitability

• Bank can increase his market share by improving the call centre services and
educating the customer to use the same for fast deliver of services.


• Increasing un-healthy competition in financial sector of country increase the cost

of the bank to retain the customer because other private sector bank continuously
offering product at the cheaper prices and manipulating their advertisement.

• UBL hold high cost deposit which increases operational cost of the bank and he is
unable to offer product in financing in competition with other financial institution.

• Rapid change is Technology increases the bank cost in investment in technology

and training of the employees to perform work on the same.

• Non availability of Customer Relationship Data so that bank can advertise right
product to right customer at lowest cost.
Pest Analysis:-
Pest analysis shows over all macro economic factors which can affect any organization in
near future.

P stands for Political situation of the country and its potentional impact on the business of
the Organization.

E stands for economic factors and their relationship with the organization current and
perspective position.

S stands for social value of the country and their potential impact on the organization

T stands for Technology used by the organization and his ability to grow and potential
change in Technology and its effect of the organization.

These factor affecting the industry as whole and may have a particular impact on the
organization. Each of these factors are described below.


• Political instability in Pakistan can lead to changes in laws and policies which can
be in favor or against the banking sector.

• Most of the banks have to finance under the political pressure which becomes bad
later on.

• Corruption also impact on the financial institutions as many Government officials

of State Bank demanding bribes for approval of the new product and opening of
new braches.


• Economy of the Pakistan shows a general slow down and most of the business
showing a negative growth which have potential impact on the growth of the
financial sector.

• General rise in inflation leads to decrease in the value of the money over the years
and customer demanding high profit rate to meet the inflation and banks unable to
give them such rates.

• Literacy rate of the country in lowest in the world and people of the country
unable to use new product of the bank like online banking, call centre, Debit and
Credit cards etc.

• 98% people of the country are Muslim and interest is prohibited in their religion
and they are reluctant to use the services of the financial institution and UBL have
not entered in Islamic Banking.

• Most of the people of the country are not using the banking channel to route their
business transaction mainly non availability of knowledge of product of the bank.

• New Government regulations regarding deduction of With Holding Tax keep in

the people away from the financial institution because they don’t want to pay Tax
to Government.


• Technology changes so rapidly that financial institution has to invest a lot in

buying the new technology and training their employees to use them.

• UBL purchase new System for interpretation of quantitative and qualitative data
to make financial decision.

• UBL is also upgrading its existing in-house developed branch banking software
with Core Banking System (CBS), a product of SunGard. Being a centralized and
customer based system, it will provide 360 view of customers and integrated retail
and corporate banking modules, thus ensuring better control for the bank and
refined services for customers.

• UBL introduce Viz card which is mainly a Debit Card and work like Credit Card.