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United Bank Limited

United Bank Limited

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Published by Asad Mazhar

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Published by: Asad Mazhar on Oct 08, 2011
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04/22/2012

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United Bank Limited Take Over

• VIRTUAL BANKING

• INTRODUCTION TO INFORMATION TECHONOLOGY

Presented By:
XXXXXXXXXXXXXX XXXXXXXXXXXXX

“Nobody can go back and start a new beginning, but anyone can start today and make a new ending.”

Agenda
           Change UBL – An Established Player… The Shareholders… UBL Perspective Privatization a Need Privatization a Process UBL Management Reconstruction of UBL Services of UBL Problems Conclusion

Change
A set of processes that is employed to ensure that significant changes are implemented in an orderly, controlled and systematic fashion to effect organizational change.

UBL – An EstAblishEd plAyEr…
 Second largest private sector bank in Pakistan
1,071 branches Full-service bank serving all market segments History of over 46 years Presence in 10 countries through 22 offices in the Middle East, USA, UK, and Switzerland.”

 Shareholding:
The Bestway Group (25.5%), Abu Dhabi Group (25.5%), the Government of Pakistan (44.8%) General Public (4.2%)

thE shArEholdErs…
The Bestway Group
– Large diversified UK based group with interests in whole sale/retailing, cement, food, banking and real estate.

The Abu Dhabi Group
– Strong group of investors led by HH Shaikh Nahayan Mabarak Al Nahayan, Federal Minister for Higher Education(Govt. of UAE) with interests in hospitality, banking and telecom.

UBL Perspective
 Set up in 1959 – by Mr. Agha Hassan Abedi. First 10 years were challenging Habib Bank, the largest in the country  Nationalized in 1973 along with 4 other locally owned banks  Privatization program started in 1991 51% of the smaller Muslim Commercial Bank successfully sold Thereafter, the smallest – Allied Bank – sold Privatization of the larger but more problematic UBL unsuccessfully attempted 3 times between 1991 & 1996.

Privatization a Need
The privatization of United Bank Limited is a cumbersome task, its position was not as bad as it appeared but, the bank was suffering a surplus staff of nearly eight thousand in its total strength of 22,500.

Privatization a Process
21 Expression of Interest Bidders from Pakistan Bidders from world Main Interest bidders Bids & process

The Consortium
Abu Dhabi & Bestway Group The increased bid The final bid

UBL Management
Board of Governors Experienced banking professionals Senior bankers Qualified middle and lower management personnel Team of professionals

Reconstruction of UBL
 The Perspective  Objectives of Reforms
Phase 1: Stem the bleeding Phase 2: Create Key Building Blocks Phase 3: Consolidate for growth

 Staff Downsizing  Network Rationalization  Non Performing Loans

Non Performing Loans
 Overall, the most difficult area to manage  Declared at 60% of loans – actually higher. 25% of these at overseas branches  Used dedicated units with direct CEO reporting  Domestic Profile  Overseas Profile  Actions Taken  Reducing the flow

Services of UBL
• Deposits
– – – – – – UBL Business Partner (Current Account) Rupee Transactional Account (RTA) UBL Basic Banking Account - BBA Regular Term Deposits Receipts Foreign Currency Savings Foreign Currency Term Deposits

• Loans
– Home Loans – Business Loans – Zarai Loan

nEw initiAtivEs…
In 2006
– – – – UBL Islamic Banking UBL Insurers Venture Capital UBL Securities

In 2007
– Private Banking

Near future
– Regional Alliances

Problems
 Central Bank  Change in laws  Consultants  Downsizing  Existing staff  New hires  NPLs  On Reform  On Privatizations

Conclusion
Can be transformed from dying dinosaurs to vibrant, lean, competitive entities that can be privatized

Temptation to retain once fixed but privatization is critical Set realistic targets – start with more doable ones!

THANK YOU
QUESTIONS?

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