An Internship report on
United Bank Limited
Timble Chowk Branch, Gujrat Pakistan.
Submitted by; Sadaf Mehmood Dar Roll no; 220784 Reg. no; 09-PGT-10716
Mohi-ud-Din Islamic University Nerian Sharif Aj&k Business management department in partial fulfillment of the requirement for the Degree of Master in Business Administration (HRM) Specialization June 2012
This report is dedicated to my beloved mother who has loved and taken care of me for all of my life and who taught me is to do my best and to try until succeed.
SADAF MEHMOOD DAR
SADAF (REG.NO 09-PGT-10716)
By the grace of almighty Allah, I have been able to compile my report. Without his help, I cannot accomplish any objectives in my lives. The omnipotent “Allah” bestows this ability, knowledge, strength and competence required for this report to me as boons. Special acknowledgement to my respected teacher Sir Sheraz Anjum in charge internship program and placement that provide this learning opportunity to complete my internship program and have a great practical experience in the one of the most popular bank of Pakistan United Bank Limited. I am really thankful to my teacher for his guidance for the completion of internship program and to make such report. I am greatly thankful to all the staff of UBL for their corporation, guidance, information and the necessary records which they provided me for the training and preparation of this internship report.
SADAF MEHMOOD DAR
SADAF (REG.NO 09-PGT-10716)
Letter of Transmittal
The Management & Administrative Sciences MOHI-UD-DIN ISLAMIC UNIVERSITY
Submission of Project Report
Dear Sir/Madam: It is a great honor for me to present you the internship report as required for the completion of MBA program. 220784 MBA session 2011-2012
SADAF (REG. I have not been able to gather all the facts and figures about UBL Gujrat. The staff of the UBL Gujrat has been very co-operative with me in providing information regarding the procedures and processes in practice. Due to some legal formalities. Yet the report is comprehensive one.NO 09-PGT-10716)
. The practical work during the internship period has been fruitful experience.
Thank you. --------------------Sadaf Mehmood Dar Roll no. Project co ordinate Professor Sheraz Anjum ----------------------------Yours truly.
In order to maintain and improve its services in the competitive market UBL Human Resource Department plays a very important role. 2002 was privatized and bought by two financially sound parties of international repute i.Executive Summary
Banking operations and services are one of the basic needs of an economy.
SADAF (REG. It‟s providing high quality services. Compensations and benefits provided by UBL to its employees and some other HR Functions.
United Bank Limited is one of the banks playing a very important role in the economic development of Pakistan.e. The bank is showing reemerging indications as is evident from its financial statements. The methods used for performance appraisal of its job incumbents. How UBL recruit and select new employees. UBL on October 19. Here is the Vision. have comparative advantage due to its innovative technology and provide high profit to its stakeholder. Mission statement and the methods followed by UBL for analyzing and evaluating its jobs. best way group and Abu Dhabi group holding 51% of the banks share and thus has emerged as the largest private bank surpassing MCB. a commercial bank was established in 1959 as result of reckless efforts made by Agha Hassan Abidi. The methods used by UBL training and developing new skills in their employees. The UBL has shown the fastest growth pattern and in a period of just 27 years became the second largest bank of Pakistan.
UBL. which are directly or indirectly contributory towards economic and social development of countries. manage customer experience efficiently.NO 09-PGT-10716)
. Banks perform various fundamental factions. These include acceptance of deposits and disbursement of advances to individuals and others at higher rates. You will find in this report the complete HR function of UBL. The bank image however adversely destroyed when it suffered heavy losses during its nationalization period due to political and other factors.
2 3 4 5 6_9
.Table of Contents
Dedication Acknowledgement Letter of Transmittal Executive Summary Table of Contents
Page no. Introduction to the Report
Introduction Purpose of study Scope of Study Limitation of Study Methodology of Study
10 10 10 11 11 2. Introduction to UBL
Banking history Banking in Pakistan Banking towards Islamization of economy Birth of UBL Number of branches Subsidiaries Objectives of UBL Role of UBL in banking sector Computerization of UBL Earlier Management of UBL
12 12 12_13 13 14 14 14 15 15 16
UBL Departments Deposit Department Human Resource Department Advance Department Lockers Department Foreign Exchange Department Clearing Department Billing Department Account Department Computer Department
21 22_23 24_27 28 29 29 30 30 30 31 5.NO 09-PGT-10716)
.3. UBL Product & Services
UBL Products UBL Money UBL Chip credit card UBL Business line UBL Address
32 33 33 33 34
SADAF (REG. Company Profile
Vision of UBL Mission of UBL UBL Culture Challenges faced by the organization Functions of UBL Functional Hierarchy
17 17 18 18 19 20 4.
Qualitative Analysis of UBL Organizational 46 46
SADAF (REG. UBL Drive UBL Deposit UBL Services UBL Whiz UBL Netbanking UBL E-statement UBL Hamrah UBL Wallet Remittances UBL ATM Cards UBL Online banking
34 34 35 35 35 36 36 36 36 37 37
6. UBL Branch Analysis
The Group and its Operations Basis of Presentation Branch Hierarchy Significant Accounting Policies Risk Management Concentration of Credits & Deposits Investment Portfolio Financial Analysis 38 38 39 40&41 42 42 43 43_45
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. Suggestions & Recommendations
9. Departmental UBL SWOT Analysis Strengths Weaknesses Opportunities Threats
46_48 49 49&50 51 52 53
ii. To improve report writing skills.e. This report is properly evaluated on the basis of its description and analytical capabilities by internal and external examiners. I did my internship in United Bank Limited. The internship is followed by comprehensive report writing.
SADAF (REG. financial analysis.1. To develop concrete and feasible recommendations. Introduction to the Report
Students of MBA studying courses leading to Master degree in business are required to undergo an internship programme of two months duration.NO 09-PGT-10716)
. This is an essential academic requirement. iii.
b) Purpose of study:
The purpose of the study is to work in real life situation and learn banking practice by doing. operational analysis. To analyze banking operations i. In this context its objectives are: i.
SADAF (REG. Keeping in view the purpose of the study.
d) Limitation of study:
It is to admit that the study attempts only those aspects. Primary Data:
Personal Observations.NO 09-PGT-10716)
. along with all its limitations. this seems a comprehensive effort. which otherwise might be equally important.
ii. Another important limitation of the study is time and space constraint. Journals. Annual Report State Bank Foreign Exchange Manual Bank internship reports on UBL available in library. which is to make an acquaintance with practical doings in the bank. which are closely relevant to the purpose of the study. but not having a direct bearing on the conclusions arrived at this study. Facts and figures. to collect financial data and general statistics of the bank has been made. Methodological tools used were:
i.c) Scope of study:
The study is confined to banking operations. have been ignored. newspapers and books. The most important limitation from which the study suffers is the non-availability of information in a manner required for analysis and the secrecy of the bank. An attempt.
e) Methodology of study:
Both primary and secondary data were used in compilation of the report. Discussion with Bank Personnel. Secondary Data:
Brochures/ Manuals of the bank.
Thereafter this sector has witnessed enormous growth. Some author‟s opinion is that this word is derived from the words “Bancus” or “Banque”. However the process is reverse since 1991. In 1974 banks were nationalized. this word was Italianated into “Bank.2.
c) Banking towards Islamization of economy
Interest based transactions/businesses are “Haram” in Islam. Authors quote Babylonians who developed banking system as early as 2000. Introduction to UBL
a) Banking history
Consensus on the origination of word “Bank” is not yet reached at.NO 09-PGT-10716)
. Other authorities state that the word “Bank” is derived form the German word “Back” which means “Joint Stock fund” and later on due to German occupation of Italy. and UBL have been privatized and HBL is in the process of its privatization. which mean a bench and they further relate banking business inception to Jews in Lombardy. B. To achieve this objective various efforts are made with the following outcomes:
1) Deposits PLS (Modarba) Accounts Current Accounts: (with no return paid)
2) Loans Qarz-e-Hasana Lending on the basis of Service charges
SADAF (REG. up till now MCB.C
b) Banking in Pakistan
Banking started in Pakistan after the bold and emergent decision of formulation of SBP on July 30. 1948. ABL. in the hope that new era of growth could be achieved through it. The GOP has shown interest to eliminate “interest” from its economy by developing various alternatives.
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. 10/ each. Amar Zafar Khan being a member of this newly formed set up manage UBL.3) Trade Related Modes of Finances Bai Muajjuai. 1959. Currently BOD and president/ CEO Mr. 10 million divided into 1 million shares of Rs. Chairman His Highness Shaikh Nahayan Mubarak Al Nahayan and Deputy Chairman Sir Mohammed Anwar Pervez are the two supreme controllers of the bank‟s affairs. Ijara: (leasing) Hire purchase. (purchases of goods by banks and their sale to clients at appropriate mark-up in prices) Bai-Salam. Purchase of trade bills. issued and paid up capital of Rs. Equity participation through purchase of shares.
4) Investment Type of Modes of Finances Musharaka: (financing on the basis of profit and loss sharing) Modaraba: (equity sharing of borrower profit and loss on basis of purchase of Modaraba certificates) Rent sharing. Senior management of the bank is shown in the chart given at the end of chapter. to be paid in future) Financing for development of property on the basis of developmental charges. (purchase of goods from clients by banks and their resale to the client at increased prices. UBL was notified and included as a private schedule bank with authorized capital of Rs. Nauman Hussain by the newly privatized bank.
d) Birth of UBL
On November 9. Another development is the appointment of director operation.
Qatar. To adopt modern banking techniques. Switzerland United Executers and trustees Company Limited United Bank Financial Services (Private) Limited
g) Objectives of UBL
The united bank limited sets its goal annually does revision of them and takes monthly feedback. Oman and The United States. Now UBL has branches in Bahrain. Saudi Arabia. there were 1623 branches whereas in 1974 it had only 1238 branches and in October 2003 these figures show total number of 1007 branches. Switzerland. UK United Bank AG (Zurich). To achieve the goals which are in profit terms Make best efforts to win the trust and confidence of its customers.e) Number of branches
UBL has a large network of branches. To provide the online facility in every branch of bank. United Arab Emirates. namely: United National Bank Limited (UNB). To make it leading bank in banking sector. UK. In December 1983. Operations proficiently assigned by the government.NO 09-PGT-10716)
. Yemen Arab Republic. which extends to the remotest areas of the country. Egypt.
UBL has four subsidiaries. To offer the varieties of services to meet the requirement of domestic as well as foreign customers. 14
SADAF (REG. UBL has been very active in increasing its overseas branches network. The first foreign branch was established in London in 1963. Efficient in providing evening time facilities. These branches are playing a significant role in channeling home remittances and foreign trade of Pakistan.
This has also allowed the bank to maintain its leadership within the industry. Credit cards (unicard-1970) Travelers Cheques (Humarah-1971) Diaries and calendars – received prizes too Promotion of sports
i) Computerization of UBL
UBL has taken leading start in the introduction of computers in (1966-1968) in important cities. Every branch has been decorated with microcomputers. Lahore and Karachi are equipped with the modern mainframe computers of various capacities.NO 09-PGT-10716)
SADAF (REG. The major contributions the bank has made are enlisted below: Record setting performance and commitment to serve the customers Professional management and modern banking policy Human resource development Small loans (or) micro credits and utility bills collection Pacesetter in economic research established in 1967. Boost the financial sector all over the world particularly in Pakistan. The use of computers has enabled the bank to save time and efforts raise efficiency and deliver the goods speedily to its customers.
h) Role of UBL in banking sector
The impressive growth and development.
To make sure the provision of home remittance facility to its customers. present it undoubtedly the most dynamic and progressive. which UBL achieve. Its three computers centers Rawalpindi. department for economic research. In a very shorter period of time it became one of the leading banks overtaking several other older and its competitor banks. To get all the branches computerized.
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.Earlier Management of UBL:
Senior Management of UBL
Sheikh Nahayan Mubarak Nahayan chairman Sir Mohammad Anwar Pervez Deputy Chairman Amar Zafar Khan President M. Khan Head Corporate Banking Group Shaharyar Ahmed Head Investment Banking group Shahid Waqar Mehmood Head Commercial bank Aman Aziz Siddique Ali Sameer Chief SAM (domestic) Head International Operations (Dubai) Rukhasana Asghar Global Head Human Resources Ameer Karachiwala Chief financial Office/HCA Risha Moheyuddin Global Treasurer Khalid Munawar-ud-din Head Credit Policy Supervision Muhammad Ejazuddin Audit Chief Mehboob A.A Manna Deputy CEO Nauman Hussain Director Operations & Utilities Mansoor M.
. To cope out the rapidly changing environment To provide fully modern and atomized services to their customers To provide personalized banking system To mobilize the domestic saving
SADAF (REG. COMPANY PROFILE
a) Vision of UBL
“To be the premier organization operating locally & internationality that provides the complete range of financial services to all segments under one roof”
b) Mission of UBL
The mission of United Bank Limited is to provide the financial services to the general public at the most reasonable rate.3.
The core value for UBL is as follow. Culture is comprised of the assumptions.c) UBL Culture
United Bank Limited culture is the personality of the organization. and norms of organization members and their behaviors. High operating costs and facing recession era Lack of huge deposits
SADAF (REG. The organizational culture of UBL is that it always provides profit to its stakeholder and never misrepresents its financial reports and will never do any unethical act which harms its client and competitor. The employees of UBL will always be helping and friendly with its customers. The norms of UBL are it always follows the Laws of country and maintain its goodwill. Honesty and integrity Fairness and meritocracy Commitment and dedication Teamwork and collaborative spirit Caring and socially responsible
d) Challenges faced by the organization
UBL is a step behind in using new technology as compared to other banks Large and increasing competition.NO 09-PGT-10716)
trustee or attorneys for the customer. trustee or attorneys for the customer. documents or securities.NO 09-PGT-10716)
. Collecting interest due.e) Functions of UBL
The main functions of UBL are listed below Collecting cheques & bills exchange from its customers. Acting as an executer. Transfer of money from place to place. Accepting bills of exchange on behalf of customers.
SADAF (REG. Issuing of letter of credit to facilitate imports and export. divided pensions and other sums to customers. Purchasing shares for the customers. Acting as executor. Issuing of travelers cheques to give credit facilities to travel. Undertaking foreign exchange business. Providing safe custody and facilities to keep jewelry.
Organizational Hierarchy of UBL
Deputy Chairman Board of Directors
Executive Committee Managing Director
Non Clerical Staff
Lockers department 5.4. Foreign department 6. UBL DEPARTMENTS
1. Advances department 4. Deposit department 2.NO 09-PGT-10716)
. Account department 9. Computer department
SADAF (REG. Human Resource department 3. Bills department 8. Clearing department 7.
a) Deposit department
UBL receive money in the following accounts: Current deposit PLS Term Deposit Receipt Foreign currency deposit account PLS Saving Account
1. Current deposits:
This type of account allows the client to deposit or withdraw money as and when he likes. In This if he can deposit and withdraw money several times in a day. Usually, this type of account is opened by businessmen. On this type of account not interest is allowed but the bank deducts service charges. A new rule passed if the money is less then Rs. 10000 then after every month 50 rupee will be detect from the respective account. Only zakat and teacher account are secured from that rule.
2. PLS Term Deposit
If you wish to make a secured long-term investment, UBL’s Term Deposit Receipt is the smart choice, just make an investment and see your deposit grow over time. By investing in UBL TDR‟s: You get an attractive rate of return. Your profit is credited to your account every six months. Your investment is secured .
SADAF (REG.NO 09-PGT-10716)
3. Foreign Currency Deposit Account
If you wish to make a secured long-term foreign currency investment, UBL’s Foreign Currency Term Deposit Receipt is a smart choice, just make an investment and see your deposit grow over time. By investing in UBL TDR‟s: You get to choose from different range of currencies i.e. US Dollar, British Pound, and Euro etc. You can avail different attractive rates depending on the currency you choose. You get the pleasure of availing the best rate of return in the market. This is what you call value for money. You can open an account in any of the 174 branches offering foreign currency accounts. You get to take your profit home every six months. You get to make a secured investment
4. PLS Saving Account
For all you saver‟s if you choose to keep a deposit in a secured savings account, which also gives an attractive rate of return then UBL’s PLS, Savings Account will serve all your financial needs.
SADAF (REG.NO 09-PGT-10716)
b) Human Resource Department
The most important asset of UBL is its people. To maximize its work force investment, the Aim of the Human Resource department is to enhance the UBL as the “best place to work”. In the area of Human resources their goal is to maximize the return on the bank‟s annual $4 billion investment in personnel expense by improving efficiency of HR operations. For this purpose and to follow the instructions regarding HR, the department of HR plays an important role. The main functions of this department are to; Assess the need of employees where, ever required. Provide equity opportunities for all the applicants. Select the most appropriate person for the job. For the purpose of selection conduct interviews, tests etc. Provides training opportunities to the employee both on the job and outside job. Motive the employee through the programs adopted by the head office. Evaluate the performance of the employees with the help of their immediate boss. Recommend reward and promotion for the employees. 24
SADAF (REG.NO 09-PGT-10716)
SADAF (REG. They first try to recruit people internally. has the following objectives. A well-managed and well-planned recruitment effort results in quality applicants.NO 09-PGT-10716)
. HR dept. To retain the employees whose performance helps the organization realize its goals and release those. To establish employee recruitment and selection system for hiring the best possible employees consistent with the organization needs. Recruitment & Selection
Human Resource is the most important assets of the organization. If the applicants are not available internally then they go for external recruitment. whose performance is unsatisfactory? To ensure organizational compliance with state and federal laws those are applicable to HR management function.UBL recruitment process begins with the determination of current and anticipated (short-long term) personnel needs.i. UBL has very well planned and well-managed recruitment process . After it.
ii. Objectives of the Human Resource Department:
To accomplish the organization goals and support its strategies. the requirement of the job is determined by combining the job specifications. It is with people that quality performance really begins and ends. To maximize the potential of each employee in order to attain the organization goals and insure individual carrier growth and personal dignity. Recruitment represents first contact that a company has with potential employees.
BY the coaching of manager. For clerical staff. The establishment of the performance plans. The PPC& E have three salient features. It is similar concepts like management by objective. The evaluation of the overall combinations.
iv. Performance Planning Coaching and Evaluation (PPC & E)
The Bank‟s PPC &E process is designed to help the employees to work with the manager to improve its contributions to achieve the goals of the unit.NO 09-PGT-10716) 26
. they are using job description method.iii. Performance Appraisal
Performance appraisal is the process of assessing qualitative and quantitative aspects of an Employee‟s job performance .The UBL performance appraisal process answers the following questions: How well am I doing? How can I do better? How well are our employee doing individually and collectively? The appraisal program of the bank has different methods and different categories for employees. For managers they use performance planning and coaching evaluation (PPC & E) programs. SADAF (REG.
. These evaluations are used in conjunction with other sources of performance appraisal information. Employees Assistance Program
The program provides information and outside referrals to employees and their families may be struggling with personal programs. Subordinates evaluation is one of them. The bank has programs to help employees balance work and family life.
SADAF (REG. The bank and Career Development
UBL wants to create an environment that encourages its employees and provides career development paths. UBL Club
The club offers employee opportunities to develop leadership skills network and socialize with co-workers.v. Family Resource Program
The program can help with personal matters ranging from finding childcare to helping older relative who live out of town.
vii. Subordinate Evaluation
The UBL is using latest performance appraisal techniques.
. It means that the customer can draw the amount. as much he is required as approved by the bank. The bank provides also facility of loan to its own employees against the security of their immovable property. The markup is payable on the outstanding amount only. These funds again have been dividend into two types.c) Advances Department
There are two types of advances. Demand Finance Facility: The bank on demand provides this facility. Fund base Advances
These are those advances in which actual payment of funds is involved. It means that the bank pays the full amount to the client and mark up is also payable on the full amount. which UBL provides: FUND BASE ADVANCES NON. The bank considers the full amount outstanding. which is provided only to the running businesses to meet their working capital requirements. Running Finance or Cash Finance: This is a loan.
2. Non. The rate of mark up on these advances is lesser as compared to the rate of mark up on the other advances. He can deposit and withdraw the amount on his
account.Fund based Advances
There are two types of this loan Issuance of Letter of Credit‟ Issuance of Letter of Guarantee
SADAF (REG. The bank decides limit on continuing bases.FUND BASE ADVANCES
. (and the charges of the lockers respectively are Rs. And withdraw the locker in the presence of custodian and custodians of the locker pay back the security. Rs. And when customers want to release the account then the account holder fill a form of release of locker no.) The bank collect the security when the account holder access the locker which is Rs. which are small. Rs. Rs. This department also deals with foreign currency accounts. Advance charges collected by the customer. In the absence of account holder a next of kin or a person who has the power of attorney to operate account of the accountholder if he/she has the proof by court and he/she will prove in the bank by this or her lawyer can open the locker. which the bank kept at the time of locker opening.
The bank has the locker facility for the convenience of their account holder. Customer completes locker agreement form.3000/-.1500/-. Fill the application Access to Locker. The bank provides the four types of lockers.1000/-. (Charges are taken annually) Registers are maintained annually. Customer‟s signatures are taken on Locker Hire Agreement.500/-. large and extra larger.d) Lockers Facility Department:
First customer should be account holder in bank. Rs. Key account is opened in system.and when the account lost the key due to own negligence then the account holder will pay the breakage fees to the bank and pay the charges to the lock master. Hand over the Key to the customer after key account opened in system. 1500/.
SADAF (REG. Customer„s signatures must be stamped with Admitted stamp.
e) Foreign & Exchange Department
The main functions of foreign exchange department are: To open the letter of credit (LC) facilitates imports and export.2000/-. This department deals with inward & outward remittances.
h) Account Department
The daily working of all the departments is completed and compile in this department for the preparation of cash cum day book for the ultimate preparation of daily statement of affairs of the branch. If there is any mistake in any record it is checked and removed in A/C department. it is registered by state bank of Pakistan.NO 09-PGT-10716)
. General‟s types of statements called by head office are prepared.
This department also performs some general functions relating to foreign exchange e. In A/C department all the subsidiary ledgers are include maintenance of income and expenditure subsidiary ledgers are prepared.
SADAF (REG. A clearing house is place where representatives of all the banks of the city get together and settle the payments & receipts of cheques drawn on each other
g) Billing Department
A BILL is amount of charges from the seller to buyer. A large part of this work is carried out through the bankers clearing house wherever it is established for a bank. It must have account with state bank of Pakistan. 50 cheques per day must be drawn on it for continuously three months. following are the requirement of being a member of clearing house: It must be scheduled bank i. private travel exchange quotas. business travel quotas etc.g. Bills department performs the function of collection of these bills. Income statement and expenditure statement at the end of each month is prepared.e.
f) Clearing Department
Every bank acts as both paying as well as collecting bank. Sufficient balance should be in this account.
The concept of a universal teller was introduced. Going forward. The new product UNIBANK2000 has a multi branch facility and runs in a client/server environment. Full Online/Offline computerization of Hubs and off-line computerization of all PLS and CD accounts was achieved during the year. UNIBANK's front-end systems were vastly enhanced to a GUI version under Oracle D/2000. In preparation of numerous applications including the core online retail banking application. through a strong communication backbone. UBL is also working on a value added Internet service. UNIBANK 2000 will be installed in all Hub branches by the end of that year. More functionality was added like signature verification.
SADAF (REG. which will allow the customers to maintain one account with the bank and operate it from anywhere in the country. printing of remittance instruments.NO 09-PGT-10716)
. which will provide encrypted Internet access to customers as well as employees. etc.i)
The IT vision is to create a central database linked to all the hubs. which has greatly improved the counter services.
UBL Chip Credit Card 3. UBL Product and Services
a) UBL Products
You as an individual can gain and benefit the most through UBL consumer banking. 1. UBL Business line 4. UBL Address 5.NO 09-PGT-10716)
. You can utilize the following products. In UBL you get friendly. UBL Money 2. UBL Deposit
SADAF (REG. UBL Drive 6. efficient and attentive personalized banking services.5. A unique banking relationship experienced by each UBL client.
CHIP based credit cards have proven to be the most secure way of conducting credit card transactions globally. All you do is dip the Chip to win free meals. It assures you global acceptability in more than 22 million establishments worldwide in 130 countries and in more than 12.up to a maximum of Rs.without any collateral.1) UBL Money
UBL Money. convenience and the flexibility to manage your financial requirements and realize your dreams. the more you get. Win your prizes instantly! Visit selected UBL Chip Reward outlets and get exciting gifts on the spot. With UBL business financing facility. 50. free household goods. It gives you access to funds starting from Rs.000/. It is an evergreen credit line that the customer can use for his/her business expansion”
3) UBL business line
UBL Business line… a complete solution to all your business financing needs. the personal installment loan from UBL provides you with power. UBL Money is a fixed installment loan. free electronic items.NO 09-PGT-10716)
. now you will surely say: “It is a „Credit Line/ OD Facility‟ against residential property. which guarantees you both enjoyment and high value. The more you visit. free clothes and a lot more. This unique high tech CHIP guarantees your security while conducting transactions within Pakistan and around the world. With UBL business line. 500. and achieve the level of success that you truly deserve. It is Pakistan‟s 1st chip credit card. 000 outlets within Pakistan.
2) UBL Credit Card
Welcome to the world of UBL Credit Cards.000/. control. UBL business line is a running finance facility that not only provides funds for growth but also enables you to capitalize on profitable opportunities. you can now take your business to greater and newer heights.
you come first. Now you can turn your dreams into reality with UBL Address . floating & adjustable rate options because at UBL.
SADAF (REG. Uni-saver.
6) UBL Deposit
UBL has taken progressive steps and has introduced innovative products and services to provide you a variety of banking and financing services like UBL profit.4) UBL Address
You have always dreamt of having a permanent address. because at UBL.
5) UBL Drive
Drive is a unique auto-financing product. options and flexibility unmatched by any other bank. which offers you feature. UBL Address understands your home financing needs and offers you a variety of fixed.the unique offering that makes you the owner of your home while remaining within your limited income. Business partner. foreign currency savings and foreign currency term deposits receipts. You come first.NO 09-PGT-10716)
without having to visit the bank. print account statements. security and benefits of an ATM and Debit Card. Remittances 7. Using UBL net banking. anytime. You can utilize the following services: 1. More than just an ATM card. you are accessing money directly from your prepaid card. & UBL Wiz Teen.
SADAF (REG. online environment. UBL e-statement 4. the customers have access to their bank accounts 24 hours a day. transfer funds. It is available is three types. track purchases and schedule their recurring payments at the touch of a button and much more. UBL online banking
1) UBL Wiz
UBL Wiz is Pakistan‟s first ever prepaid VISA Debit Card that provides the convenience. pay bills. locally and internationally.b) UBL Services
UBL has taken progressive steps and has introduced innovative products and services to provide you a variety of banking and financing services. Whether you are using it online. anywhere. real-time.
2) UBL Net banking
UBL net banking is an internet banking portal offering a simple. UBL WIZ 2. It's never been so easy to access and manage your finances in a secure. you can use your UBL Wiz everywhere VISA cards are accepted. convenient and secure method of accessing bank accounts on the internet. 7 days a week and can keep a close eye on their account balances.NO 09-PGT-10716)
. UBL Hamrah 5. UBL ATM cards 8.e. UBL Wiz Ladies. i. UBL wallet 6. paying for petrol. As an individual or a group you can get much through UBL services. shopping or dining. UBL Netbanking 3. UBL Wiz Travelers.
Tez Raftaar is completely cost free and is available at all UBL branches along the bank's network in the Middle East. Tez Raftaar offers all overseas Pakistanis the fastest and the most convenient delivery of their money to their beneficiaries in Pakistan.
4) UBL Hamrah
In continuation of the same tradition. Best of all.
5) UBL Wallet
Introducing the new UBL wallet card is now with the international power of VISA. With our large network of branches. 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 offers the most efficient and price competitive service. you now do not have to wait for six months to receive a paper based statement of your account any more. 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. 10.be it business. All you need to do is tell UBL the frequency of statements you require and UBL will ensure that it reaches your inbox. "Hamrah" rupee traveler cheques are the ideal and safest way of carrying cash when travelling anywhere in Pakistan.
6) Remittances (UBL Tez Raftaar)
Free doorstep remittances within the country or from abroad. UK and US. UBL wallet. UBL in the shape of "Hamrah" rupee traveler‟s cheque enhances this facility for the convenience of its valued customers by offering denominations up to Rs.000. UBL "Hamrah" has been designed keeping in mind. property.3) UBL e-statement
UBL brings a simple solution to all your problems by introducing the UBL e-statements facility. Available for all rupee and foreign currency account holders. we are poised to offer you service almost at your door step. UBL's new remittance service. trade or personal needs. This Wallet holds all the cash in your bank account.
SADAF (REG.NO 09-PGT-10716)
. both convenience and security .
000 Funds Transfer 500.000 20.000 50.) ATM Withdrawal 40.) Card Type Gold Silver Daily Limits (Rs. Your account gets to travel with you and can be accessed throughout Pakistan. Salient features of online banking are: Cash Deposit and account statement Cheque Encashment Stop Payment
SADAF (REG.7) UBL ATM Cards
Annual Fee (Rs.000 Debit Card 100.NO 09-PGT-10716)
. Nalka Kohala or Mandara.000 300. be it Karachi. Kotli Main.000
Karachi Lahore Islamabad Gujrat Quetta Wahcant Rawalpindi Faisalabad Gujranwala Peshawar Sargodha Hyderabad Sukkar Sialkot Abbotabad Muree Multan Raheem Yar Khan Bahawalpur Wazirabad
8) UBL Online Banking
With UBL‟s state of the art online banking. you can access your account from more than 350 branches located in 71 cities across Pakistan. Now UBL enables you to do all the following transactions in minutes through designated online branches.
They strictly observe the rules and regulations as applicable and promulgated by the GOP and or SBP. UBL Branch Analysis
These section efforts have been made to cover all relevant aspects of the financial performance of UBL.
b) The Group and its Operations
The group consists of. Switzerland United Executers and Trustees Company Limited United Bank Financial Services (Pvt) Limited
c) Basis of Presentation
The purchase and sales of UBL are restricted to the amount of facility actually utilized and the appropriate portion of mark up there on. Holding Company United Bank Limited. UK United Bank AG (Zurich). Overtime comparison and common size analysis are carried out with the view to extract concrete conclusion to describe financial standing and performance of the bank.6. Pakistan ii. i.NO 09-PGT-10716) 38
. Subsidiary Companies United National Bank Limited.
manager international banking
Internal audit department
home finance department
account opening department
foreign exchange department
car finance department
credit card department
d) Significant Accounting Policies
Following are the significant accounting policies of UBL.
SADAF (REG.NO 09-PGT-10716)
a) Held for trading b) Held to maturity c) Available for sale-other than the above two types In the light state bank Pakistan regulations quoted securities are shown at market values and any changes arising are taken to profit and loss account only upon actual realization. rescheduled and restructured loans are treated in accordance to SBP regulations.
4) Fixed Assets and Depreciation
a.1) Revenue Recognition
Returns on advances and investments are recorded on accrual basis. Provisions for diminution in the values are made after permanent impairment. Unquoted securities are valued at the lower of cost and break up value and difference is charged to income.
3) Lending/Borrowing from Financial Institutions
Sales under Purchase Obligation: These are reflected as liabilities and the charges against these are recorded as an expense on pro rata basis. Fees/commissions etc. Purchase under Resale Obligation: The differential of the contracted price and resale price is amortized over the period of their contract and recorded as income. Returns on classified assets are recorded on receipt basis. on letter of credit and others are recorded on accrual basis.NO 09-PGT-10716)
. Debts securities purchased at premium or discount are amortized over their maturity periods.
UBL classify its investments as stated below. Dividend income is recognized on accrual basis of declaration of dividend up to the year-end. if any. Owned
The bank accounts for deferred taxation on major timing differences. Foreign Currencies Balances are translated into rupees at the applicable rate of exchange prevailing at the balance sheet date or where applicable at contractual rates. using the liability method in respect of those timing differences.Such assets are showed at their cost or revalued amount less accumulated depreciation and impairment loss. Gains and losses are included in income currently. monitor and manage these risks are as follow. Rental obligations under operating leases are charged to profit and loss account as incurred. which may reverse in the foreseeable future.
Provision is based on the taxable income for the year or minimum tax computed on the basis of turnover. Gains and losses on sale of fixed assets are included in income currently.NO 09-PGT-10716)
. The outstanding obligations are shown as a liability. credit and currency risks.
e) Risk Management:
The bank is primarily subject to interest rate. whichever is higher. During year transactions are converted into Pak rupees applying the exchange rate at the date of respective transactions. Leased Assets under financial leases are stated at cost. recognized only if there is reasonable expectation of realization of the amount. if any. c. Deferred Cost and Lease Payments These are amortized over a period of five years. b. except that the related surplus on revaluation of fixed assets is transferred directly to retained earnings/accumulated losses. however. No depreciation is charged on freehold land. Deferred tax debts are. d. The bank has designated and implemented a frame work of controls to identify. The finance charges are allocated to accounting periods in a manner so as to provide a constant periodic rate of charge on the outstanding liability.
recommends financial institutions and also controls cross border/country risk.1. UBL is advancing 27.2% to textile and 74. This enables it to minimize its unsystematic risk to a great extent. contributing 65% of the total deposits.
3. Interest Rate Risk Management
The group is mainly exposed to mark up interest rate risk on its deposit liabilities and its loans and advances and investment portfolios. which are reprised on a periodical basis.5% to private sector. forward and swap transactions in the inter bank market and with the state bank of Pakistan in order to kedge its assets and liabilities and cover its foreign exchange position. the group enters into ready. The asset liability committee of the bank reviews the portfolio of the bank to ensure that risk is managed within acceptable limits.
SADAF (REG. Currency Risk Management
For the purpose of efficient management of this risk. To manage it the bank applies credit limits to its customers and obtains collaterals. spot.NO 09-PGT-10716)
. Credit Risk Management
The bank‟s major credit risk is concentrated in textile sector.
g) Investment Portfolio
UBL employs diversified investment portfolio. Most of the loans and advances portfolio comprises of working capital. The bank invests its funds both in risk free assets as well as in risky assets.
f) Concentration of Credit and Deposits
The major class of business for UBL related to advances is the textile and private sectors. Credit risk in the portfolio is monitored by the credit risk management who formulate appropriated policies and procedures to ensure building and maintaining quality credits and efficient credit process. Majority of the depositors fails in the category of individuals. The bank‟s financial institution risk management unit assesses.
Government agencies analyze financial data for tax purposes. For example. creditors and credit reporting agencies are interested in finding out the credit worthiness of the firm to which they have extended credit or intend to extend credit. To improve the quality of decision making proper analysis of these statements helps a lot. Short term creditors are interested in short term liquidity of the business and long term creditors are interested in the long term cash flow which the firm can generate over the long period of time. The internal users of financial statements like management also analyze financial data for planning and control. Financial statements analysis helps in determining the financial conditions at any particular points in time and effectiveness of operations of a firm during a specific period. These statements are means to an end of helping stakeholders in decision-making. These statements are meant to assist various parties in decision making who are interested in the activities of the business. Investors are interested in the firm‟s ability to sustain profitability over a period of time. The various stakeholders of business are interested in the analysis of financials statements.
UNITED BANK LIMITED
Summarized Balance Sheet of Three Years
Rs in '000
Common size (%)
SADAF (REG.h) Financial Analysis
Financial statements are the principal means of reporting the financial condition and results of operations of a business entity.NO 09-PGT-10716)
. But the focus of interest of all is not the same.
24 69.4 5.1 58 11.07 67.92 42 100
17.72 25.99 1.39 100
15.66 22.83 5.Is Investment (ST) Advances-Performing (ST) Other Assets Total Current Assets Investment (LT) Advances-Performing (LT)
3609108 4370006 9190430 39489369 8641263 97782157 19388131 28477494
70463707 3627557 33883311 43632117 2641471 118177074 33623058 26423058 5739798 2831534 5026459 73643958
35591280 19050791 29580252 89292490 3509351 177024164 25007413 10312297 3671991 3884990 5486357 48363048 225387212
21.75 1.5 2.37 60.7 4.89 17.5 16.86 22.82 21.52 4.61 1.73 16.36 22.77 2.NO 09-PGT-10716)
.09 4.45 13.38 61.5 23.62 38.72 2.91 2.96 0.62 1.61 17.32 0.98 6.19 98.Assets
Cash/Bal.54 11.T Assets Total Assets 2864018 8297500 70840998
B/Payables Borrowings ST Deposits – Current Lease and Others Total Current Liabilities Fixed Deposits Other Long term Liabilities Total LT Liabilities 1540592 4004130 1847025 174533 2991269 174533 152580240 5933743 161679785 37252204 10883720 48135924 209815709 0.57 1.6 5.48 2.45 100
Advances-Non performing (LT) 11813855 Operating fixed Assets Deferred Tax Assets Total L.94 2.09 61.09
102568752 118167469 8838842 9986608
116952316 130175635 38747422 21264831 43998916 5212755
49219400 49211671 166171716 179387306
SADAF (REG.01 1.12 39.79 8.63 71.53 13.6 5. With Banks lending to F.21 29.55 0.93 1.55 78.89 7.69 2.43 21.65 93.2 67.52 1.35 93.
2 0.45 0.48
-27282709 -722387 1168264 2123751 24541439 1271700 2445466 12433726
.33 2.09 0.18 -0.38 0.Total Liability
Share Capital Reserves Accumulated Losses/Profits Minority Interest Surplus on revaluation 22481680 3960453 5180000 4258947 5180000 4712569 454403 1412932 3811599 15571503 13.7 2.62 1.66 1. Qualitative Analysis
a) Qualitative Analysis of UBL
SADAF (REG.27 6.69 1.22 2.26 1.3 2.69 6.35 2.
ii. The workload is not equally distributed.During my two months of internship period I have tried to fully commit myself in the learning process.NO 09-PGT-10716)
. particularly speaking of between the top and lower levels of management. I noticed following departmental problems. being identified. Remittances Department i.
During my internship period in UBL. Application of tests for authentication of TTs is not known to al concerned individuals that reduces the efficiency and further the wrong application of tests prevent payments and the delay could dissatisfy customers. iii. Code of conduct of cashiers is found unsatisfactory. There is centralization of authority and branch managers are bound and restricted to take initiative. Coordination level among divisions/departments and employees are poor. I kept critically observing the things that I could analyze and the result of the exercise is presented as below.
SADAF (REG. Due to overlapping nature of duties and jobs there exists confusion in branches. At times notes received from other branches were found to have certain fake currency notes.
Existing organizational hierarchy hinders vertical communication and blocks flow of information among the levels of management. Not very frequently but there are instances of fake currency notes. in various departments. Manual counting system also affects efficiency of the bank. Counting mistakes occur due to overcrowding particularly during the collection of utility bills. Cash Department i.
ii.Sc qualified individuals are performing jobs of MBAs. Large pool of potential borrowers cannot apply for loans due to lack of collaterals. Reasons for the return of the cheques at times are not mentioned on the return memos. ii. is sometime compromised due to influences of\r fear of loss of customer.ii. Telegraphic messages require specific skills and training.
Deposit Department i. Manual practices pose problems in the branch where automation has not been done yet. ii.
Clearing Department i. iii. iii. The credit proposal and other documents at times are not properly and sufficiently prepared before taking approval. Employees at times mismanage their time and fail to forward bills promptly. At times due to lack of training wrong stamps are applied on instruments. SADAF (REG. The employees are partially equipped of such knowledge. In cases where the presence of customer himself is must.NO 09-PGT-10716) 47
Credit Department i. Relationship Managers need to be fully equipped with the requisite knowledge and skills as presently plain BA/B. Heavy collateral requirements restrict credit business of the bank. Wrong endorsement and stamping causes loss to the customers and extra efforts for the bank to repeat the procedures.
Bills Department i. Identification of customer‟s signature is very important particularly when cash is to be withdrawn by him.
ii. It is a common approach to make assessments in terms of internal and external environment of the organization. Opportunities and Threats. SADAF (REG. Foreign Exchange Department i. iii. SWOT stands for Strengths. Lack of promotional activities. Lack of marketing at desk due to lack of training and awareness among employees. There is overlapping of functions and complete separation of function has not been achieved thus leading to a state of confusion and conflict among employees. Weaknesses. Problems of bills and remittances departments equally apply to foreign exchange department. interior layouts and design of furniture in the branch.
Marketing Department i. ii. external opportunities and threats. coming up is the SWOT analysis for the UBL. and to formulate strategies analyzing its internal strengths and weaknesses.
b) UBL SWOT Analysis
SWOT is useful tool for providing a framework for analysis of an organization.NO 09-PGT-10716) 48
. Most of the employees of this department lack the ability to handle the Letters of Credit. Knowledge and educational background of employees working in this department do not match with the job they are doing. iii. Little attention to the apparent conditions of the bank exterior.
Strengths are the internal competencies possessed by UBL in comparison with its competitors.NO 09-PGT-10716)
. o Provisions decreased by 14%. The current year‟s growth rate is 32%. It is one of the largest private banks with a deposit base of Rs. o Net revenue from funds increased by 18% for the current period. Foreign trade volume showed an increase of 17% over the previous year. 94883/. UBL with an integrated network gives you direct access to a comprehensive range of better banking facilities to help you monitor your business internationally. The overall efficiency of the bank operations and management ability can be noticed by looking at to its income pattern and provisions/write off practices.millions showing constant growth over the period from 2009 till the day. It has a well-knitted and adequately equipped branch networking system that efficiently covers both the domestic and international markets. It is involved in both corporate and retail banking. Advances investment of the bank shows a constant growth pattern. The bank is actively emerging and is engaged in international trade and foreign exchange transactions.
2. UBL is actively participating in international markets and has recently introduced credit cards in UAE. State Life Insurance Corporation etc.50% of interest each. being backed up by 24 hours call center out of UAE. and Qatar. The bank is owned by parties of financial repute and credit worthiness like. Others are GOP. state bank of Pakistan with 48.NO 09-PGT-10716)
.o Total income increased by 16%.
SADAF (REG. Behrain. The bank is run by highly professional recruited from and trained by foreign banks like City Bank. NBP Trustee Department.69% interest. Best Way group and Abu Dubai group with 25.
economic and legal etc the bank has suffered losses the main reason was that of piling up of large amount of unrecoverable loans and debts which has adversely affected the image of the UBL. Ineffective system of recruiting and selection. Accumulated losses pushed the bank to cut down its promotional activities in order to reduce expenses for last few years. Promotions are carried out on annual basis ignoring the importance of capabilities and performance outputs.NO 09-PGT-10716) 51
. Unsatisfactory working conditions. Administrative expenses are 51% of the mark up revenue. Due to risks such as political. Lengthy credit processing and documentation procedures. During the nationalization life span of the bank political lords used influence in bank business and selection of employee at each level and thus adversely affected the bank‟s efficiency and effectiveness. Opportunities
SADAF (REG. The bank has large number of employees who are simple graduates with no banking knowledge.Weaknesses are the internal attributes of the bank to decrease in comparison with competing bank.
SADAF (REG. There is a large pool of unemployed MBAs who can be hired to achieve professionalism on its organizational culture. Reconstruction of Afghanistan is a golden opportunity where the bank can effectively participate. Increase the product range to meet the broader range of customers‟ needs.An opportunity is an external component lies in outside the organization. The efficiency of stock market and sound exchange reserve level is providing a good opportunity for effective investment decisions. They would be beneficial for the company. Expansion of IT platform and internet based banking system. Entering new market segments. Foreign remittances are another area as present world wide control systems over transfer of currencies through illegal channels has facilitated the area for the banks. Interest of businesses in leasing facilities provides a healthy opportunity for banks. An opportunity is any chance to follow a new or revised strategy or business. which would be of benefit to the UBL. Outsourcing of promotional companies or use of available excellent promotional facilities.NO 09-PGT-10716) 52
The management can develop elaborate strategic plans for capitalizing the available opportunities. Extensive promotion campaigns run by competitors. An Increase in competition due to increasing number of foreign and domestic private banks offering highly specialized and attractive services. This SWOT analysis is a mirror image of the bank‟s present conditions. lower level of income and prices like problems in the motherland coupled with low rate of industrialization.
SADAF (REG.NO 09-PGT-10716)
. religious factor. geo political adverse conditions. and lack of consistency in policies due to political instability are some of the other major threats. which are not in the favor of company. Some efforts are made and others are still required to be made in order to improve the situation. Unemployment. The bank should maintain principal of professional management and adhere to sound and sophisticated banking rules and regulations so that confidence and trust of the public in the institutions could be re earned.Threats are also external factors in the environment. which can seriously hamper the company‟s ability to serve its customers. Growing global technological advancements and adaptation of modern style of management in banking sectors.
Try to establish effective communication between top-level management and executive. the more talented persons would enter in the management and they will try to make the UBL compatible with the other banks. This part of the report is based on the previous sections i. Because when ever they were asked about the latest banking the answer was sorry we don‟t know.e. Moreover. which are categorized under the following headings. Suggestions & Recommendations
Recommendations are considered to be the most important part of an internship report. Like the other reputed commercial banks UBL should recruited some officers especially from the fresh MBA‟s and M. discussions have been conducted with the staff of UBL officers. for bringing suggestions.8.
SADAF (REG. The following are the suggestions that I have recommend for the united bank limited. where the change for the development is utmost important. There is a great need of proper training of employees. Realizing the importance of this section.NO 09-PGT-10716)
. who not only provided the basis for recommendations but also pointed out some areas.Com students. efforts have been made to give feasible recommendations. without which no report is considered complete and meaningful. Doing so. The behavior with the customers should be improved. analysis.
Critical analysis of UBL necessities recommending suggestions that would increase bank‟s efficiency and effectiveness. by applying the modern styles of management. So bank should hire export staff for such type of activities and start them in the branch. This branch is not doing many functions to open the L/C and to deal in export and import facilities.
3. Development of Managerial Leadership: In service industries like banks the need of managerial skill is much more important. It will enable the management to formulate long term strategies and their proper implementation because the long term policies. because the bank is very sensitive organization and to be in harmony with this sensitivity. Also do marketing through internet. Without development of managerial leadership. Basis for Promotion: SADAF (REG. It makes positive contribution towards higher effective results.
1. like other banks are doing such as City Bank and in the Pakistan. The bank must have to apply the marketing strategies to attract the customers which are depositors. need for proper human resource is felt badly. UBL should also focus on this area and should avoid deficiencies in managerial leadership. Political interference: The political intervention in the bank needs to be stopped so that the top hierarchy as well as the personnel placed at other important levels of the institution is not changed Just on political grounds and the on going developmental work is not obstructed. accurately based on calculated risk. have proved the pivotal role players for organizational sustainable development.NO 09-PGT-10716) 55
. the effective utilization of the human resource will be impossible. In case of banks it is the most valuable asset.
a) Human Resource Department
The importance of manpower cannot be denied in any organization.
a cultural change right from the top management down to the front line. experience and performance. Management Changes on Merit: In UBL. Com etc.
SADAF (REG. Refresher Courses: The Human of the bank should frequently conduct meaningful refresher courses. and the bank faces saturation in personnel. those who do not found up to the required criteria may be given GHS etc. that better suits to the present day needs of banking environment could be included through proper discipline and training.A sizeable portion of the officers of UBL. The promotion policy must be too tight and transparent that no one may have the chance to be promoted on criteria other than the required qualification.
6. the banking business is experiencing rapid changes therefore the HRD should have arrangements for staff trainings to cope with the new changes that may become threats for the interest of the bank. This downsizing will leave the bank with the staff. seminars and workshops with a view to improve the knowledge of the staff. though very rare fresh recruitments are made. Due to severe competition and technological developments.
5. Therefore the recruitment qualification to the officer‟s framework should be enhanced for simple graduation. Now in this remaining workforce. are promoted in without test and interviews to officers cadre. to be retained on the basis of ultimate meritocracy with zero tolerance of incompetence.
4. to professionally qualify preferably masters in their respective fields. But on the country only graduation with simple subjects is still the requisite qualification for officer‟s cadre.NO 09-PGT-10716)
. now clipping will be more helpful. which has already worked amply in the devastation of UBL. M. Needs of change in Recruitment Policy: It is important to say that the external level market is full of the required talent like MBA. As for the present excess staff.
. need to rooted out and the culture of ultimate meritocracy in appraising needs be inculcated.
9. Training with Clear Objectives: Training needs assessment is necessary so that only the relevant staff is sent for the training courses. However. In my opinion the above two programs marketing excellence and corporate culture. The drawbacks that are obvious like nepotism and favoritism etc.
11. Financing is main fountain bank‟s income. Change in Appraisal System: The present performance appraisal system is good.
SADAF (REG. marketing excellence.
8. Training for Credit Management: Special trainings on credit management should be imparted to the finance dealing staff. it needs to be implemented in true sense. Introduction of New Courses: The human recourses division of the bank should focus on the restoration of the corporate image of the bank by floating programs such as. Sound finance is extremely necessary for opening of springs of the smooth inflow of the income. Computer Trainings: The present conventional training programs need to be made more comprehensive and reinforced with inclusion of computer training courses. It works as profit maximization devise. courses on corporate culture and others.7. added with the best counter service and outdoor informal relationship with the potential customers by the line managers will save the sum of money spent on various media of advertisement.
employees should be given opportunities to show their performances. i. In this regard. profit maximization.
SADAF (REG. the bank should take critical view of the financial and should assess changes occurred during the favorable and slack reason for the company. recognize. UBL needs to be provided the deserved respect. quality and in time service and to be politely dealt with. The bank should have expert to examine various changes and developments for years in areas of the borrowing corporation like. carefully and appropriately that his customer is “The King” of the business system and the original spring of the business revenue. Customers Orientation: Every entrepreneur if concerned about the success of his business has to understand. iv. 13. ii. which would help in their career development. Career Development: As a matter of personnel policy HRD of UBL should prepare a plan showing the future growth potential of employees on the job performance and evaluation and it should be made known to the employees. Financial condition Cash generation Ability to pay back Operational performance
The focus should be on identifying and explaining significant changes and developments in payback of loans.NO 09-PGT-10716)
. iii. capital flow and operating expenses etc.12.
b) Fake financial presentation
The bank should confirm that the provided figures by the borrowing organization are fairly audited and that the auditors are on the approved list of the bank and they have clear opinion about the affairs of company and nothing has been made secret.
complete and correspond with the approved facilities. arrangement for vetting of the legal counsel. i.NO 09-PGT-10716)
. Reputation of managerial skills and style of management being used iv. if the bank assesses the management of the borrower party by taking care of i. Span of authority and responsibility vii. and as a result such loans become bad debts. documents are dated. ii. signed and stamped. Qualification and integrity iii.
SADAF (REG. it has taken. When a business becomes sick or fails it is unable to return the loans. This can only be confirmed. Length and type of experience ii. Bank should ensure that the documentation are correct. to ensure that the company to which loan is sanctioned enjoys good management skills and reputation.c)
A large number of industrial units and projects become sick because of poor management. If the documents required are different from the bank‟s standard approved format. Risk management of employees
d) Proper Documentation
Loans become irrecoverable through court of law in case of default when the bank fails to prove their claims against the delinquent borrower. SWOT analysis v. the signer is authorized to execute such documents and signatures are verified. it is the responsibility of UBL. To avoid this. For proper and valid documentation the following aspects must be kept in mind. If documents are obtained properly as per terms of the loan it is not difficult for the counsel of the bank to get decree against the defaulter. Financial procedures and documentation followed by employees vi. Decision making skills of employees viii. Also to ensure that blank spaces are filled. The bank should confirm that standard loan documentation is in place for each credit facility prior to disbursement.
shares. as per frequency specified in the credit approval. Keep track of expiry of borrowing documents. iii. ii. vi. iv. v.NO 09-PGT-10716)
. adequately covering the bank‟s amount. Bank should also do the periodic physical checking and evaluation of pledged inventories as per terms of the approvals. Maintaining computerized record of documentation. to which loan is given. v. vi. property title deeds. Physical verification of the property offered as a security is must rather to rely on the documents. Bank officials must ensure that the goods hypothecated or pledged are covered through a valid insurance policy with appropriate risk coverage. i. Division of documentation on the basis of sector. securities. vii. govt. Maintain in safe custody all collateral i. iv. Concerned bank staff should ensure compliance with the institutional credit policies and procedures as lay down in the policy book or credit manual and advised from time to time by the credit committee or top management.e. insurance policies etc and follow up for regulation of any approved documentation deferrals. updating it properly each time new
documentation received. Investigation should also be conducted if the property is of ancestral nature or joint property. Bank must ensure receipt of periodical statements of stock and receivables from customers.iii. such that the drawing power adequately covers out standings amount at all times. Ensure compliance with local regulatory requirements. Maintain documentation checklist.
i. viii.e. using applicable margins. Confirm timely submission of correct information in the prescribed format as may be required by the central bank.
SADAF (REG. mortgage documents etc.
Gujrat. (2010 – 2011). Financial Statement Analysis. Gujrat. Charles H. (2002).
UBL (2008). K.9.
Meenai. (2003) Human Resource and Personnel Management: New Delhi: Tata McGraw Hill Gibson. 7th. (1999) Money & Banking in Pakistan. Karachi. Practice and law of banking in Pakistan. A. Ed.NO 09-PGT-10716)
. Gujrat.H. S A. Prentice Hall International Corporation. Credit Manual. 6th Edition. Annual Report. Bibliography
Aswathpa. Royal Book Company. Deposit Manual.
UBL. (1998). Karachi: the Elahi’s Book Corporation.
Fundamentals of Financial Management.wikipedia.com. C & J.pk http://www. J.com
SADAF (REG. (1998).com http://www. New York. Van Horne. 10th Edition.M Wachowicz.com. Prentice Hall International Corporation.
http://www.pk http://www.scribd.NO 09-PGT-10716)