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The banking sector in Pakistan comprises of the following types: State Bank of Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving Banks, Cooperative Banks, Specialized Credit Institutions. The S.B.P. is the Central Bank if the country and was established on 1st July, 1948. On November 7th 1959 United Bank Limited appeared on the banking horizon in Pakistan and started operations with its first branch namely McLeod Road now I.I Chundrigar Road at Karachi. Today UBL has 1056 Domestic and 15 Overseas Branches. UBL was nationalized in 1973 but it is privatized in 2002 as Govt. handed over the management of UBL, the third largest party of the country, to the successful bidder -Consortium of Abu Dhabi Group (UAE) & Best way Holding Limited (UK) as they have purchased 51% shares and have elected H.H.Shaikh Nahayan al Mubarik as Chairman UBL. On May 18th 2004 Mr. Atif Bokhari was appointed as anew CEO of UBL. To open an account the customer has to meet the manager with an introducer. Individual, Joint, Partnership, Private Limited, Public Limited, Sole proprietorship and Minor accounts are the types of accounts. Different documentation is required for each type of account but the application form is same for all types of accounts. In Deposits department actual relationship is started with the bank, that relationship is in the form of deposits or the accounts that are opened in the bank. At UBL, customers can deposit in the form of current, saving, call, term and fixed deposits. Main difference between current and saving is of the profit that is provided only on saving account to the customer. In Cash department the main activity is of payment and receipt of cash and facility of utility bills collection is also performed at the counter of cash department. A cash book balance is maintained at the end of the day that is been provided in the form of statements that can be got from the computer. Accounts department is responsible for
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all the activities happening inside the branch in the form of any transaction whether it is for the customer or for the employees to provide them with utility services. In Remittance Department like any other bank UBL also have instruments for transferring of money like Pay Order, Demand Draft, Mail Transfer, Telegraphic Transfer. For remittances UBL provided many services namely TezRaftar, Money Gram and Click N Remit. As for as there Foreign Exchange Deportment is concerned its activity is handled at the central branch as they have a department their and they provided the many services to the importers and the exporters in the trading of products. Preparation of LC on behalf of importer for the exporters and its bank is the main activity that is perform in the department. The main activity of the Central Branch, Hussain Agahi Branch is to Advance the money that was collected in the form of deposits. They deposit money at low rate and advance it at high rate to earn the margin of profit. Financing can be made in the form of cash finance, demand finance, bridge finance, consortium finance, agriculture finance etc. Security is of utmost importance in this area and security can be like mortgage, pledge, hypothecation of stock, raw material or the guaranties and banker’s lien. With their step in the field of customer financing like house and car financing and their services of Hamrah Rupee Traveler check, UBL Wallet (ATM card) and their online system of UBL-ONLINE it has been viewed that they will make tremendous achievement in the days to come. In my view UBL has faced some hard time but after its privatization and its response to the changes in sector they will achieve what their ultimate goal is.
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OVERVIEW OF BANKING
History of Banking
“Bank is a pipeline through which currency moves into and out of circulation.” Bank accepts deposits and repays cash to its customers on their demand. The Bank borrows money at a lesser rate of interest and lends it to the borrowers at a higher rate. It is thus a profit-lending concern. Bank cannot lend all the money that has been deposited with it. It has to keep a certain portion of the total deposits in cash with them in order to meet the cash requirements of the individuals and business concern.
Word Bank is said to be derived from the words “Bancus” or “Banque”which means bench Other authorities hold the opinion that the word bank is derived from the German word “Back” which means ‘joint stock fund’. The history of banking is traced to as early as 2000 BC. The priests in Greece used to keep money and valuables of the people in temples. These priests thus acted as financial agents. The origin of banking is also traced to early goldsmiths. They used to keep strong safes for storing the money and valuables of the people. The persons who had surplus money found it safe and convenient to deposit their valuables with them. The FIRST STAGE in the development of modern banking, thus, was the accepting of deposits of cash from those persons who had surplus money with them. The goldsmiths used to issue receipts for the money deposited with them. These receipts began to pass from hand to hand in settlement of transactions because people had confidence in the integrity and solvency of goldsmiths. When it was found that these receipts were drawn in such a way that it entitles any holder to claim the specified amount of money from goldsmiths. A depositor who is to make the payments may now get the money in cash from goldsmiths or pay over the receipt to the creditor. These receipts were the earlier bank notes. The SECOND STAGE in development of banking thus was the issue of bank notes. The goldsmiths soon discovered that all the people who had deposited money
Introduction To Banking
with them did not come to withdraw their funds in cash. They found that only a few persons presented the receipt for encashment during a given period of time. They also found that most of the money deposited with was lying idle. At the same time, they found that they were being constantly requested for loan on good security. They thought it profitable to lend at least some of the money deposited with them too the needy persons. This proved quite a profitable business for the goldsmiths. They instead of charging interest from the depositors began to give them interest on the money deposited with them. This was the THIRD STAGE, in the development of banking. By experience the banks came to know that they could keep a small proportion of the total deposits for meeting the demands of customers for cash and the rest they could easily lend. They allowed the depositors to draw over and above the money actually standing to their credit. In Economics terminology we can say that they allowed the overdraft facilities to their depositors. This was the FOURTH STAGE, in development of banking. When every bank issues receipts and most of them allowed the overdraft facilities, there was then too much confusion in the banking system. The banks in order to earn profits could not keep adequate reserves for meeting the demands of the customers for cash. The failures on the part of the bankers to return money caused widespread distress among the peoples. In order to create confidence among the people, steps were taken to regulate the banking organization. A conference was held in Nuremberg in 1548. It was decided that a bank should be set up by the state, which should streamline the banking organization and technique. The first central bank was formed in Geneva in 1578. Bank of England was established in 1694. The responsibility of issuing of notes is now entrusted to a central bank of each country.
COMMERCIAL BANKING IN PAKISTAN:
At the time of partition total number of Banks were 38 only. Out of these Banks the Pakistani Banks were only 2 , Indian Banks 29 & Exchange Banks were 7. The total of deposits of Pakistani Banks was Rs.880 Million. & advances were Rs: 198 Million.. According to banking companies ordinance Banks are the companies, which 4 Internship Report
transacts the business of Banking in Pakistan. Commercial Banks have constituted the most important [part of the intuitional credit in the economy of Pakistan. Being the largest source of credits, Banking Industry is a pivot of whole the economic activities in Pakistan. Section 37(2A) of State Bank of Pakistan Act 1965 lays down that the Banks must have paid-up capital & reserve of not less then Rs: 5 Lac & fulfilling certain other requirements for declaring as “Scheduled Bank”. At the time of independence Bank services was badly affected. But with the passage of time these are improving. The government of Pakistan nationalized all Banks in early 1974. This act was done to minimize control of few hands over banking. But this step was proved e futile for the Banking in Pakistan. So the Govt. had to revise its decision in1990. Two Banks (Allied Bank Of Pakistan Limited & Muslim commercial Bank Of Pakistan Limited have been denationalized. Since then Banks were working well. Now slogan of the Banks is to serve their customers in the best possible manner. Professor Berton: “Banks are the guardian & distributor of money “. Similarly we can say that it is a pipeline thorough which currency moves into & outside the circle. Banks accept deposited of money and repay it on demand. Bank borrows money at lesser rate of interest & lends it at higher rate of interest. In this way Banks earn money. Bank do not lend all money they collect, they keep certain portion of it as reserve to meet the uncertain demand of the customer.
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FUNCTIONS OF A COMMERCIAL BANK
In general terms the functions of a commercial bank can be classified under the following main heads.
1. ACCEPTING DEPOSITS
Some people have an excess money and they want to deposits it to some honest man or an institution which can give them some profit. So the first function of commercial bank is to receive deposit there are three types of deposits. i. Demand Deposits or Current Deposits Some people deposit their excess money in the current accounts and they can withdraw their money deposited in this account at any time during the banking hours, so bank is not ready to give interest on it. ii. Fixed Deposits These deposits are fixed for a particular period. Commercial banks also pay an interest on these accounts. An important thing related to it is the varying interest rates for the different period deposits. Interest rate increases with the increase in the fixed deposit period. iii. Saving Deposits To create the habit of savings, bank accepts the saving deposits and pays an interest on these deposits. And this rate of interest is greater than the demand deposits.
2. ADVANCING LOANS
Bank also advances the loans to the merchants and charges the interest. It is the major source of its income. It also issues the loan for short term, medium term and for long term. And bank receives the higher interest from the borrower for the long term loans offered.
3. DISCOUNTING OF BILL
Commercial banks also discount the bills and facilitate the business; for example one businessman purchases anything from another person and promises to pay after one month. The seller will write a bill to the buyer and there will be an order that after one 6 Internship Report
. he will take it to the bank and will receive the money by discounting the bills. CUSTODIAN OF PRECIOUS ARTICLES Banks also provide lockers for the safety of precious articles. It collects and pays on the behalf of the customers. 8. So now everyone can secure his precious metals like gold. In other words buyer will accept the responsibility of that amount. Buyer will sign on the bill. 11. INVESTMENT On behalf of the customers all the banks also make an investment in different companies and industries. 4. CHEAP MEDIUM OF EXCHANGE By issuing cheques and drafts bank provides cheap. 5.month the buyer will pay the amount to the seller. AGENCY SERVICES Commercial Banks also perform the duty of an agent. If seller is in need of money. medium of exchange. ACTING AS A TRUSTEE If a client directs his bank to act as a trustee in the administration of a business. This is very popular concept in the modern world and widely used in the business community. and bank charges a very nominal charge for this facility. the 7 Internship Report . TRANSFER OF MONEY The commercial bank is very helpful in transferring the money from one place to another by issuing the drafts. 9. 12. Letter of credits are issued by the commercial banks for the foreign payments. 10. for itself and sometimes on the behalf of the costumes. FACILITATING TRADE ACTIVITIES It also provides the finance to the foreign trade. And banks receive nominal charge from the customers. CREATION OF CREDIT It also creates and extends the volume of credit. etc. 6. silver. The commercial bank also may rediscount it from the central bank. PURCHASE AND SALE OF SECURITIES The commercial bank purchases and sells the securities. 7.
More the limit of credit card. If the customer repays the over drafted amount to the bank within a month then the bank does not charge the mark-up on it except of annual charges. If a customer is a salaried person then the bank issue credit card facility up to three times of his or her salary. The banks are sole agent of American Express. b. Credit Card In this case the customer has not much amount in his or her account but the Bank gives him facility to over draft (OD) up to the maximum limit of 5 lacs depending on bankcustomer relationship and the market value of that person.bank performs this responsibility. Then the bank will give him credit card of Rs. 23. But each bank has different criteria in issuing any facility. Credit Card is the loan facility which is given on only personal guarantee. 75. Credit Card c. The key of the locker remains with the bank that sends its officer every week to collect the amount from the locker. This is a ‘Clean Loan or Clean Facility’ (a loan without any tangible security). Now this facility is no longer in practice.000/-. Suppose a person’s salary is of Rs. more would be the charges on it. Debit Card b. Charge Card a. PLASTIC MONEY The plastic cards that can be utilized as money are called the plastic money. And charges are on the basis of limit of credit card. Debit Card In this card facility the account holder can only utilize his own amount kept in his deposit. HOME SAVING ACCOUNT This type of account offers the facility to the account holder to save money right home and put in the locker provided by bank.000/-. Because here only personal guarantee is involved. 8 Internship Report . a. Annual charges are charged on this facility. Other wise the bank will charge the mark-up on daily basis but annual charges are also have to pay. ATM (Auto Teller Machine) card is the example of debit card. 13. For instance.
Role of the banking sector can be judged by the following facts: SAVING MOBILIZATION: The commercial Banks namely United Bank Limited Pakistan. Habib Bank Ltd. Because the bank gets the property under lien or mortgage against this credit facility. Advances short & medium terms loans for financing of the development projects both in the private & 9 Internship Report . shopping malls and transport offices where there is the facility of Merchant Arrangements. Different banks have the different Merchant Arrangements. IDBP. The State Bank of Pakistan is at the apex and all the commercial Banks have to follow the rules of State Bank of Pakistan. Then you have to give a password to enter in the data base of the bank. In this type of banking first of all you have to open the website of the bank in which you have the account. ROLL OF COMMERCIAL BANK IN THE ECONOMY DEVELOPMENT OF PAKISTAN: Banks play an important role in the economic development of country. But the only difference is that the charge card is not a ‘Clean Facility’. Allied Bank Of Pakistan Ltd. Merchant Arrangements means the shops to which the bank has online contact. If our Banking system is not in accordance to the economic requirement then how it can play a vital role in our developments. and PICIC etc. NOTE All these three cards are used in that hotels. MOBILE BANKING In mobile banking the customers can do all the transactions sitting in their homes by using internet. FINACCING OF DEVELOPMENT PROJECTS: Banks & other financial institutions like ADBP.c. & National Bank has opened Branches in urban areas & rural areas to mobilize savings of people. The shop keeper enters the password into the machine and get the account information of the card holder and debit the amount in card holder account and credit it in the shop’s account. Charge Card it is same to the credit card.
In order to maximize profit they have the incentive from S.So they helping to accelerate the rate of progress (Economic) in the country. CREATING CLIMATE FOR CAPITAL FORMATION: A developed baking system stimulates the growth of economy by creating favorable climate for capital formation in the Country.B. which is since on the experimental basis in Pakistan. HELP OF STATE BANK OF PAKISTAN IN ACHIEVING MONETARY PUBLISHES: Commercial Banks under the supervision & guidance of the S. The profit & loss scheme arrangement is the alternative to interest. An organized Banking system keeps balance between the liquidity * profitability. under an Islamic economic system. The depositors instead of having a fixed return on the deposit will share in the profit & loss of the Bank. thus assists in the planed development of the Country. ASSISST IN PLANNED DEVELOPMENT: Commercial Banks are profit-seeking enterprises.P help in implementing & achieving the objective of monetary policy.public sectors .P to maximize the limit of finance. ENHANCING TRADE ACTIVITIES: The credit institutions collect the savings of people & make them available for facilitating the trade activities both inside & outside the country. which vary from time to time. PROFIT SHARING SCHEME: Commercial Banks receive surplus balance of the households and business & pay interest on the deposit of client. 10 Internship Report .B.
biggest event occurred in the history of UBL. Chundrigar.The head office was at Dhaka. Commerce and private Individuals. In 1969 the Management of Union Bank Ltd. Were merged with UBL. in the large nationalization process in the government of Zulfiqar Ali Bhutto. experience and resources. On October 19th 2002. On 9th November 1959 the Gazette of Pakistan notified and included UBL in its list of scheduled banks operating in Pakistan. The sales agreement for the transfer of 51% shares was signed by Privatization Minister Altaf M. As UBL was privatized. There have been many changes in the structure. A Bank . Most of the branches of Union Bank Ltd.I Chunrigar Road at Karachi. were merged into UBL to work as UBL’s subsidiary . the third largest bank of the country to the successful bidder – Consortium of Abu Dhabi Group (UAE) and Bestway Holding Ltd. which was later emerged with UBL in early seventies. UBL has shown dynamism since its inception. United Bank Limited started the operations on 7 November 1959 with its first branch namely McLeod Road now I. was handed over to UBL. The Bank continued its operations as private banking company until 31 st December 1973 when it was nationalized. The first president of the UBL was Mr. Incorporated in former east Pakistan. These changes reflect the changing requirements of our developing economy as a whole and those of Industry. like the society it serves should be dynamic as banking is about people customers with their needs and opportunities and staff with skills. I. The Government handed over the management of UBL. With its shortest span of time UBL emerged as dynamic and large international organization. I. 1959. along with other banks operating in the country and other two banks namely Pak Bank of former East Pakistan and Commerce Bank Ltd.Chapter 2 INTRODUCTION OF UNITED BANK LIMITED The decision to establish UBL was taken in June 1959 and the company was registered on July 24. functions and the services provided. Sheikh 11 Internship Report . (UK). Saleem and Bestway Holding.
development of personalized relational ship with business community. Infrastructure and internal system support the aggressive consumer initiative and explorations of new avenue generation. to achieve the 12 Internship Report Habib Bank Ltd. with helped the bank. He was also a member of the HBL . Increased investment is targeted in developing Human Resources . Bukhari was previously Senior Executive Vice President (SEVP) and Group Head. On the domestic side bank has already launched its consumer banking business. On May 8th 2004. Various drives for the mobilization of saving and other accounts were initiative. UBL has come to be accepted as one of the most progressive and dynamic components of the banking industry in Pakistan. branded as UBL Wallet.Nahayan Mubarak Al Nahayan at a ceremony. visits to customer at their door steps. Furthermore UBL has plans to introduce a full suite of innovative consumer finance products designed to capture a significant share of the local consumer financing market and tap into the current growth in demand of such financing. delegation of authority to the lowest possible level and encouragement by initiative were the key factors. UBL officially announced the appointment of Atif Bukhari as its CEO. Atif Bukhari took over the charges as new Chief Executive Officer of UBL from Amar Zafar Khan. Personalized Service and Dynamic Approach in order to meet its goals and capture the market share the Bank employed professional and skillful approach to the management. who served UBL for more than seven years. FUTURE STRATEGY UBL expects its strong customer focus to drive the bank’s future business strategy. which took a series of successive measures to educate the people of Pakistan banking and saving minded. The knowledge of customer’s business market research and business planning. In the view of highly impressive growth and development achieved during its 46 years of experience. Corporate and Investment Division of Management Committee. The first step under this initiative is the launch of the bank’s ATM / Debit Card. fixation of seasonal business targets and follow-ups to achieve these goals attained prominence. This event was declared as a “New Journey for UBL”. Flexibility.
objectives. The Bank-Consumer relationship attained a new dimension and courtesy. covering almost all major financial markets of the world. In Oman the share holding in Commercial Bank of Oman was withdrawn however an exchange company namely Oman United Exchange Company a joint venture was formed in 1983. UBL initiated the scene in the office and branches redesigned and modernized. the Bank took a basic decision to make its presence felt Internationally and to cater to the needs of importers and exporters as well as its shares in the international market. is well positioned to act as a correspondent bank for Pakistan and currency transaction. To meet the required international standards of modern banking UBL is the first Pakistan bank to shift its international division from Karachi to Dubai. UBL opened its first branch in 1963 in London (UK). The bank has also withdrawn its share holding the United Saudi Commercial Bank. With its strategy to reach its customers in various diversified markets across the globe. foreign trade. Convenience for the customer remained a core and criterion for this relationship. The UK operations of UBL were closed during the year 2002 and along with the branches of National Bank of Pakistan a new bank namely Pakistan International Bank has been incorporated in UK with 55% share holding of UBL. At present UBL and its subsidiaries are: 13 Internship Report . Saudi Arabia as well as United Bank of Lebanon and Pakistan SAL. INETRNATIONAL OPERATIONS After achieving dynamic progress domestically. CATALYST OF CHANGE UBL emergence proved catalyst and brought changes in the banking sector as a whole. politeness and efficiency gained fundamental importance. the most important center of the international finance and trade. UBL is progressing fast in the arena of cross border ventures with an appetite for commercial and country risks. The UBL global network with its strategically located overseas branches and affiliates.
Ltd.e. The Best Ways Group UK and Abu Dhabi consortium electing H. REORGANIZATION OF DOMESTIC OPERATION In 1986. United Bank Ag-Zurich United Assets Management Co. Azad Kashmir was serrated from NWFP and made separate region. 14 Internship Report . United Bank Financial Services (pvt) Ltd. READY FOR 21ST CENTURY Holding Company Joint Venture Joint Venture Subsidiary Subsidiary Subsidiary Subsidiary UBL has stepped into the 21st century with confidence. Ltd. Peshawar and Quetta in order to meet the needs of sanctioning loans and other facilities to the trade. establishment of a number of new private banks as well as expansion for operations by the foreign trade and banks in major cities. which the customers in modern banking expect from the bank. As a result provincial headquarters were established at Karachi. The bank has also planned to play its dynamic role in the overall development of the country. It is now well equipped with latest technologies and professional experience to face the future with determination and confidence and with its high aims and sense of direction to serve the nation with zeal and devotion. Lahore. Know that the bank has been privatized and 51% share have been purchased by investors i.United Bank Ltd. the organizational structure of domestic operations of the bank was reformed and decentralized on the basis of provinces. Beside above the economic condition of the country also changed due to privatization policy. United Executor and Trustees Co. industry and agriculture of each province.H Sheikh Nahayan Al Mubarak as Chairman UBL. The quantum of work immensely increased due to the growth of economic activities and phase of industrialization and other change in Punjab and Sind. Pakistan International Bank Oman United Exchange Co. UBL has geared itself to provide services. It was also considered necessary to improve the quality of advances and to expedite the recovery process of the loans and advances.
which recommended structural. and Baluchistan are ceased to function and in their place nine regional chief executives started functioning in the nine major cities. NWFP. high power committees constituted by the Govt. The new segmentation of UBL’s branches on the basis of regions can be looked from the following: PROVINCE WISE REGION ALLOCATION Province/Area Sind Do Punjab Do Do Do NWFP Baluchistan Azad Kashmir Region Name Karachi Hyderabad Lahore Faisalabad Multan Islamabad Peshawar Quetta MuzafarAbad Domestic Network of Multan Region 15 Internship Report .For above changes. the details of which are received from Pakistan banking council are follows: FORMATION OF REGIONAL HEADQUARTERS The provincial chiefs of Punjab. and other reforms. Sind..
UBL further fosters the individual welfare and well being of the common man by lending house building finance and loans to set up small businesses. UBL has played a leading role in the dissemination of Computer Technology in Pakistan and is dedicated to the promotion of sports. It lends to farmers for the purchase of tractors. superior quality seed and fertilizers.Multan Region Head Office Multan Bahawalpur Dera Ghazi Khan Rahim Yar Khan Sahiwal Vehari 225Branches 1 48 38 36 32 38 32 COMMUNITY SERVICES UBL is committed to the welfare of Pakistan. ♦ ♦ ♦ ♦ ♦ Agricultural Loans Small Business Scheme UBL Computer Training Institute Staff Colleges of UBL UBL Sports Complex AGRICULTURAL LOANS 16 Internship Report .
This scheme is aimed at spreading prosperity in the country by reducing unemployment. As more and more people start their own industrial units. the bank has already constructed a big sports complex in Karachi. Towards this end. UBL SPORTS COMPLEX In addition to providing professional banking services. Lahore and Rawalpindi. These staff colleges are providing facilities of training to the employees of the bank so as to meeting the growing need of the banking field and coping with the changing environment of the country. 17 Internship Report . UBL enables farmers to buy good quality seeds. pesticides and agricultural implements. STAFF COLLEGES OF UBL The UBL has three staff colleges. and now plays a leading role in the dissemination of Computer Technology in Pakistan and is proud to be a part of the Government’s Computer Literacy Program aimed at preparing the younger generation to meet the challenges of tomorrow. the leading user of Computer Technology in the Banking Sector has set up most modern facilities at Muzaffarabad. where all types of facilities for sports like cricket. These centers are equipped with state of the art hardware and audio-visual aids and are manned by experienced professionals. which are generating banking trained personnel. the country will move steadily towards economic self-reliance. fertilizers. These colleges are at Karachi. UBL is providing loans on easy terms to those who wish to set up their own small-scale business. Azad Kashmir. SMALL BUSINESS SCHEME Under the Small Business Scheme. and Sheikhupura for imparting training to the educated youth under the Government’s Computer Literacy Program. UBL COMPUTER TRAINING INSTITUTE UBL is a pioneer in the computerization of banking in Pakistan. UBL. the bank continued to play an important role in the promotion of sports in the country. established in 1964.UBL’s agricultural loans on easy terms and conditions to small-scale land owning farmers boost the country’s economy and yield greener harvests. hockey and flood light courts for tennis and basketball have been provided. 1978 and 1977 respectively.
Chapter 3 Organizational Structure ORGANIZATIONAL STRUCTURE OF UNITED BANK LIMITED Organization Chart at Branch Level Area Manager (A.M) Internal Audit Branch Manager or Area Operational Manager Credit Committee Customer Deposit Cash & Clearing Bills & Remittances Marketing Advances Accounts I.T Foreign Exchange 18 Internship Report .
Management Hierarchy President Senior Executive Vice President (SEVP) Executive Vice President (EVP) Senior Vice President (SVP) Vice President (VP) Assistant Vice President (AVP) Officer Grade 1 (OG 1) Officer Grade 2 (OG 2) 19 Internship Report .
Officer Grade 3 (OG 3) Operational Staff UBL SETUP BOARD OF DIRECTORS EXECUTIVE COMMITTEE Treasury & Capital Market Corporate Banking Investment Group Consumer Banking Human Resource Mgt. Finance Department Marketing Department IT Department Audit & Inspection Service & Quality Agri Loans Commercial Banking 20 Internship Report .
Al Askari Mr. Tehsin Khan Iqbal DESIGNATION Chairman Deputy Chairman President & CEO Director Director Director Director Director Chairman His Highness Shaikh Nahayan Mabarak Al Deputy Chairman Sir Mohammed Anwar Pervez OBE 21 Internship Report . government relations and to manage the portfolio of business and its functions. OBE. Javed Saqib Malik Mr. Zameer Muhammad Chaudary Mr. HPK Mr. Bukhari Mr. which currently consists of President Chief Executive Officer & seven directors. NAME His Highness Sheikh Nahayan Mubarak Al Nahayan Sir Muhammad Anwar Pervaiz. Atif R. The CEO has an overall responsibility for the strategic direction. Omar Z. Ahmad Waqar Mr.BOARD OF DIRECTORS Board of Directors are the owners of the bank and governs the Bank’s Affairs.
Bokhari Director Mr.Nahayan President & CEO Mr. Atif R. Ahmad Waqar 22 Internship Report . Zameer Mohammed Choudrey Director Mr. Omar Ziad Jaafar Al Askari Director Mr.
Mr.O 23 Internship Report . M. Aly Shah Barrister-at-law. Tahsin Khan Iqbal EXECUTIVE COMMITTEE The Head of the Executive Committee is the President of UBL (Mr. Bokhari). Atif R.Director Mr. Atif R. Bokhari President and C.E. Company Secretary Director Mr. Javed Sadiq Malik Mr.
Mr. Muhammad Ejazuddin Group Audit & Inspection Head 24 Internship Report . Risha Mohyeddin Group Executive Treasury & Capital Markets Mr. Aameer Karachiwalla Group CFO Mr. Shamsi Group Executive Human Resources Mr.A. Nauman Hussain Group Operations & Technology Head Mr. Ayaz H. Mannan Group Executive Consumer/Commercial Bank Mr. M.
The treasury department have to manage the buffer stock (in terms of cash) of the bank and they have to maintain the liquidity for giving Advances to their customers. Mohammad Asghar Group Commercial Bank Head Mr.Mr. Same is the case with Banking Industry as well. So it is the responsibility of the treasury department to manage the fund from money market (private financial institutions like Khanani & Kalia). Of any company is to maintain the liquidity for that company. The narrowest bid/ask spreads and the fastest quotes Dynamic risk-reducing hedging strategies for its customers The best relationships with institutional. But the UBL has not that much amount. Suppose a company X want to get the loan from UBL. Tariq Mohar Group Business Support / Collections Head Mr. corporate and retail 25 Internship Report . Ali Sameer Group Head SAM 1-Treasury The main purpose of the treasury department.
and to eventually develop a global equity trading activity for UBL. 2-Corporate Banking The main objective of the Corporate Banking is to look after the special customers who gives very much big amount of deposits or take higher amounts of Advances.clients Year 2003 was a highly lucrative year for the bank with net profits in excess of PKR 4 billion. UBL has one of the largest balance sheets amongst banks in Pakistan.. Structured Products/Financial Engineering. Hussain Agahi Multan and Corporate Branch of UBL cantt. the TCM expedited the launch of Pakistan's first derivative money market product-the FRA (forward rate agreement) with Quetta Textile Mills Ltd. 200 M they have to contact to the Corporate Branch of the UBL. Treasury and Capital Markets (TCM) contributed to over 65% of UBL's total returns. And the party who needs a loan more than Rs. Overseas Branches Treasury and Capital Markets . Being one of 11 primary dealers (PD). Structured Products is responsible for developing and packaging plain vanilla derivatives as well as more exotic customer specific products.This unit is the focal point for all branch-related liquidity issues and will also be responsible for day-to-day management of liquidity for UBL. as imposed by the State Bank of Pakistan. Equity Trading. And these types of customers are called corporate customers. is the highest in the industry. and Double-Count of revenues. to develop synergies amongst their various treasuries. So the cases of Advances more than Rs. and hence our Foreign Exchange Exposure Limit (FEEL). Under the new management. Because a Hub Branch can give the Advances up to Rs.they plan to integrate the treasury activities for all overseas branches. There are 175 to 200 cases of Advances in the Hub Branch. 200 M goes into the Corporate Branches. This was due to Government Bond Trading. in August 2003. Equities is responsible for managing the bank's trading and badla portfolio. and has further closed several similar transactions thereafter. The Strategic Planning and Balance Sheet Management responsibilities include: Liquidity Management for the domestic balance sheet . Because they have 26 Internship Report . Corporate Debt Trading. and pipeline products. Let us take the example of the Hub Branch of UBL. UBL TCM is a market maker in both the domestic money market as well as the foreign exchange market. But in the Corporate Branch there are hardly 15 to 20 cases of Advances due to so much high amount of Advances. 200 Million.
When a company wants to install a new project and require the finance from the bank then it is the responsibility of Investment Deptt. (CAD) of the Regional Head Quarter (RHQ).taken very much big amount of the Advances it means their business operations and turnover is more frequent. 27 Internship Report . UBL outperformed all the other local banks in the corporate banking sector primarily due to CBG's emphasis on establishing and enhancing relationships with foreign/local blue chip and middle market customers thereby capturing significant market share. Other responsibilities are offering IPOs. 3-Investment This department supports the Corporate Deptt. The cases of Advances also approve Credit Administration Deptt. TFCs and following services are performed by this Deptt. This is called the Project Finance. So these types of customers need special care and services as well. If it is feasible to loan that party then they pass the loan otherwise not. that they analyze the targets of the project and success or failure of the project. Despite the sluggish economic growth in recent years. The (Corporate Banking Group) CBG focuses on attracting and servicing large portfolio customers. And as a result drawing and repayment of the loan or from their own account is also more frequent. personalized banking. 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. Now UBL is offering its IPOs (Initial Public Offerings) in June On behalf of the customers all the banks also make an investment in different companies and industries. But mind one thing that the documentation in case of Advances and Deposits is same in Corporate Branches as well as in Hub Branches is same. and top notch service. Our forte is providing exemplary customer service using the "Single Window" concept and product superiority. MISSION OF CORPORATE BANKING Our mission is to serve all your corporate needs and ensure your full satisfaction through product innovation. And banks receive nominal charge from the customers.
Compensation and Protection. Career Planning. Staff leaves and other related staff matters Goals of all Staff 28 Internship Report . Job Redesign. Private Placement Agencies etc. Union-Management Relations etc. Job Description. Retrenchment cases Complaints and its correspondence Fraud & Forgery cases Mandatory Leaves and its observance. It also involves in the following activities: Transfers & Postings Scrutinizing bills (Hospital Bill) Staff Deceased cases & its Correspondence Retired employees Cases & its correspondence All staff legal cases & Court at Multan & Lahore. Employee Referrals. does all the activities related to HR and Personnel Management like Job Analysis. Orientation.). Performance Appraisal (employee performance and accountability). Job Specification. Training. Recruitment (is the process of finding and attracting capable applicants for employment through Advertising. Selection by written tests and interviews.Services UBL (Investment Banking Group) IBG offers full spectrum of services 4-HUMAN RESOURCE DEPARTMENT This Deptt. Job Design.
CONSUMER BANKING 29 Internship Report . I will discuss about the CCD in the branch level functions. 7. deposits. also makes the web site new news to web site. If some employee has the leaves in credit then he or she can avail that leaves at the end of his or her job. And after these leaves he or she will be automatically retired. remittances. 6. But maximum limit of LPR is one year. Monthly Statement of Staff Disciplinary Action Cases The HRM department also gives the facility of LPR to their employees. is related with all computer activities like to manage the Central Data Base (CDB) which is placed in Head Office of UBL Karachi in all the daily transactions in all the branches of the country are up-dated on daily basis. let suppose of nine months. The daily transmission process of data is as following: A spoke branch up-date the daily transactions through computer networking to the its Central Branch. And when the Central Branch receives the data from all the spokes branches under it then that Central Branch up-date the data of all the spokes branches and its own to the Central Data Base (CDB) at Head Office. Corporate Branches and Regional Head Quarters (RHQs) up-date the daily data directly to the Head Office. The CCD (Control and Compliance Department) comes under this department. Suppose all the withdrawing. But if some employee the leaves in credit less than one year. This Deptt. Leaves Prior to Retirement (LPR) These are the leaves at the end of the job period (near to retirement) with pay. then he or she can avail only that credited leaves (nine month) only but with pay in the facility of LPR.AUDIT AND INSPECTION The responsibility of this department is to audit and inspect the operations of the branches. 5-IT DEPARTMENT Information Technology Deptt. collection and clearing data of the day is sent to the Central Branch. Whether the operations are compliance by the branches in a right way or not.
This unique high tech CHIP guarantees your security while conducting transactions within Pakistan and around the world.a unique banking relationship experienced by each UBL client. that guarantees you both enjoyment and high value. It assures you global acceptability in more than 22 million establishments worldwide in 130 countries and in more than 12.Mazay Mein Raho. You can utilize the following services: • • • • • • • • • UBL Credit Card UBL Businessline UBL Cashline UBL Address UBL Drive PLS Term Deposits PLS Savings Accounts Uni-Saver Remittances UBL CREDIT CARD It is the Pakistan’s 1st Chip Credit Card. 000 outlets within Pakistan..You as an individual can gain and benefit the most through UBL Consumer Banking. CHIP based credit cards have proven to be the most secure way of conducting credit card transactions globally. 30 Internship Report . efficient and attentive personalized banking services . In UBL you get friendly. A Choice of Rewards Along with exciting Chip Rewards you have a choice between Free RoadMiles and Free TalkTime. The UBL Credit Card ….
So keep driving. What’s more. If you spend more.5% per month.Spend Rs 5000 anywhere on your UBL Credit Card and get guaranteed 5 litres petrol free from any PSO outlet nationwide. keep smiling. stay connected. -VISA Global Customer Assistance Service and much more…. Your UBL Credit Card offers a low rate for BTF of outstanding balances from other cards at only 1. you get a free Mobilink Postpaid Connection with your UBL Credit Card. Spend Rs 5000 anywhere on your UBL Credit Card and get guaranteed 30 minutes free. So talk freely. Eligibility Criteria* You are eligible to apply for the UBL Credit Card if you are -At least 21 years of age -A resident of Pakistan -Employed or managing your own business Documents Required* -Copy of the Computerized National Identity Card -Any one of the following income documents - Salary slip/ Salary Certificate (in case of the Employed Applicants) 31 Internship Report . Low Balance Transfer Rate – Save big time Now you can really save big time with your UBL Credit Card Balance Transfer Facility!. you get more. and at more than 700. you get more minutes. If you spend more.000 ATMs and financial institutions worldwide displaying the VISA/ PLUS logo. Cash Advance You can now withdraw cash through your UBL Credit Card’s instant cash advance facility from any designated UBL ‘Cards Payments’ Branch nationwide.
You can utilize up to Rs. UBL CASHLINE 32 Internship Report . With UBL Businessline. What is Businessline? “It is a ‘Credit Line/ OD Facility’ against Residential Property.10 million: Now. UBL Businessline promises you a very smooth and fast processing. ELIGIBILITY CRITERION: If you fall in the following criteria. • Self Employed Professional / Self Employed Businessman.10 million with the help of which you can now focus on your business expansion and growth. now you no more need to pay for the entire credit line that you own. Mark up on utilized amount only: With UBL Businessline. then UBL Businessline is just the right choice for you : • Minimum monthly income: Rs. Businessline gives you the facility to pay mark up only on the amount that you utilize. now you will surely say: "Ab Hui … Kamiyaabi Meri Manzill'. UBL Businessline is a running Finance facility that not only provides funds for growth but also enables you to capitalize on profitable opportunities. 25. Faster Processing: After completion of your documentation requirements. hence saving you time and frustration. It is an evergreen credit line that the customer can use for his/her business expansion” Features: Utilize up to Rs.- Personal Bank Statement and / or Company Bank Statement (along with business proof). in case of Self Employed Applicants UBL BUSINESSLINE Introduction: UBL Businessline… a complete solution to all your Business Financing needs.000 and above • Age: 25– 65 • Resident: Pakistani. UBL Businessline is here to solve all your cash flow problems.
000/. CONVENIENT UBL Cashline gives you the convenience of access to cash through multiple options 24 hours a day. providing you up to Rs. and as many times as you wanted? UBL introduces Cashline – the most flexible loan. 500. truly setting you free! With every UBL Cashline account you will get: Cheque Book Use your UBL Cashline cheques at any online branch throughout the UBL network! You can enjoy the convenience of walking into any UBL online branch across Pakistan and use your Cashline account with ease. anytime.The perfect solution! FLEXIBLE Tired of paying bills yourself? UBL Cashline can pay them for you! Wanted to buy appliances for your home? UBL Cashline can buy them for you! Maybe even renovate it? UBL Cashline can provide for your home décor! Tired of looking at the same old furniture? UBL Cashline can get you something you've always dreamt of! Envious for one of those sleek cars on the road? UBL Cashline can transform your wheels into a dream car! Need a vacation? UBL Cashline can fly you off to a dream destination too! Short term business needs? UBL Cashline can send payments to third parties in other cities! Emergencies? With UBL Cashline you can sit back and relax. 33 Internship Report .Have you ever wished for a loan that was flexible enough to be used anywhere.
and your monthly net salary is Rs. UBL address provides an alternative to high monthly rentals by offering a flexible repayment option to suit your cash flows: -Pay only markup for 11 months every year. Fixed Rate for 20 years Fix your repayments for 20 years today. 34 Internship Report . 1. floating & adjustable rate options . you come first. and Or • your monthly net take home income is Rs.000 while you will only pay the markup as monthly installment (as indicated in the grpah below).000.000 A self employed business person/professional between the ages of 21 to 65 years. Wherever you might be. The fixed markup rate gives you peace of mind and allows you to plan your cash flows better.ATM/Debit Card UBL Cashline comes with an ATM/Debit card so that you have instant access to cash – 24 hours a day.Pay 5% of principal along with the markup in 12th month every year. 50. Principal Annually (20 years) For the first time in Pakistan. on the loan of Rs. Simply go to any ATM in Pakistan and experience the convenience of UBL Cashline! How can you get Cashline? If you are: • A salaried person of 21 to 60 years. you are never away from cash.000 your annual principal repayment will be Rs. 10.000 UBL ADDRESS UBL Address understands your home financing needs and offers you a variety of fixed. 25. 7 days a week.because at UBL. Mark-up Monthly. . Example.
000. UBL Address offers you the facility to design your own repayment plan to suit your present and future expected cash flows. 1. 35 Internship Report .270* in year one and will rise to Rs.000 your monthly installment will begin from Rs. 15. For example.Pay As You Select (PAYS) In addition to normal financing. 15 Yrs) PAYS-Up allows you to start with low installments that increase every year.679 in year fifteen. PAYS-Up (10 yrs. on a 15 year loan of Rs. 9.
one of the lowest down payment options in the market! UBL offers a wide range of attractive term deposit schemes to suit your requirements.15. You do not have to provide any income related documents . .Eligibility Criteria -Minimum monthly income: Rs. Deposit period along with projected profit rates of these schemes are given below : Term Deposit Period 7 to 29 Days notice 30 Days and above 1 Month 2 Months Three Months Six Months 36 Internship Report Projected Rate Of profit Please Contact your nearest UBL Branch. you come first. 500. some for the very first time in Pakistan.Minimum loan size: Rs. UBL Drive allows you to drive away in your own car by making a down payment of just 10% . options and flexibility unmatched by any other bank.Age: 23 to 65 years .all that is required is a copy of your NIC and 2 photographs! Low Down payment Just 10% In addition to low installments. Because at UBL.000 UBL DRIVE UBL Drive is a unique car financing product which offers you features.Resident Pakistani .Self-employed businessman/professional or salaried individual .000 . No Documents Required UBL Drive gives you the opportunity to get the car of your choice financed with minimal documentation.
500 Million Please contact your nearest UBL Branch. are also offered special current deposit accounts to cater to their specific requirements at very attractive profit and terms. Projected Rate Of profit (p.000 Up To Rs. 2. besides normal current accounts. business or personal finance. 250 Million upto Rs. 500 Million Over Rs.One Years Two Years Three Years Four Years Five Years Corporate customers.a) 37 Internship Report .000 Your share of profit is credited half-yearly and is calculated on monthly balance You can withdraw your savings through cheque UBL UniSaver Account is an innovative way of serving your banking needs. 50 Million Over Rs. the UBL UniSaver allows you maximum flexibility. 250 Million Over Rs. yet gives you optimum returns. 5 Million Over Rs. 10 Million Over Rs. • • • • Daily Profits on your daily balance Higher returns on higher balances Attractive rate of return Backed by the bank awarded AAA Credit Rating Deposit Category Over Rs. 50 Million upto Rs. 100. 10 Million upto Rs. Be it trade. • • • You can open a PLS Savings Account with an initial deposit of Rs. Special Features are. 5 Million upto Rs. 3 Million Rs. 3 Million upto Rs.
The seller will write a bill to the buyer and there will be an order that after one month the buyer will pay the amount to the seller. Sending money from US to Pakistan is just a click away. Currently.K(UNB) NBPAGBZL U. 38 Internship Report . For US residents.A. The commercial bank also may rediscount it from the central bank.E UNILAEAD Bahrain UNILBHBM Qatar UNILQAQA DISCOUNTING OF BILL Commercial banks also discount the bills and facilitate the business. UBL offers added flexibility through UBL Click N Remit-. This enables the Bank to provide secure transmission of foreign exchange payments for trade.an innovative online remittance service . In other words buyer will accept the responsibility of that amount.Our remittance products are designed to give you maximum flexibility. If seller is in need of money. UBL is also a member of SWIFT (Society for Worldwide Interbank Financial Telecommunications). Buyer will sign on the bill. Our SWIFT Bank Identifier Code is UNILPKKA Newyork UNILUS33 U. for example one businessman purchases anything from another person and promises to pay after one month. you can send money to almost ANYWHERE in Pakistan by using our popular TezRaftaar remittance service. home remittances and other transfers in a fully automated manner. he will take it to the bank and will receive the money by discounting the bills.
2. Basic Functions Agency Services Functions General Utility Functions 39 Internship Report These are classified as following. draft. which a commercial bank performs. . order or otherwise.Chapter 4 Commercial Banking COMMERCIAL DEPARTMENT As far as the law is concerned. 3. can be divided into following categories. The functions. It is a service-oriented organization. Banking Companies Ordinance 1962 defines the term banking as following: “Accepting for the purpose of lending or investment of deposits of money from the public repayable on demand or otherwise and withdrawals by cheque.” The commercial banking has been developed into an important sector economy. which performs numerous functions. 1.
b. a. c. b. 2. c. Agency Services These include: Collection of Cheques Collection of Dividends Purchase and Sales of Securities Execution of Standing Instructions Collection of Bills Acting as trustees or Executors Transfer of Funds These include: Supplying Trade Information Issue of Travelers Cheques Issue of Credit Cards Foreign Exchange Business Accepting of deposits Making advances and loans Accepting of Deposits Current/Demand Deposit Saving Deposits Fixed Deposit Making Advances and Loans Running Finance Term Finance Project Finance General Utility Services 40 Internship Report . a.Basic Functions These include: 1) 2) 1.
No excise duty on purchase.to-day business. 41 Internship Report .RUPEE TRAVELLER CHEQUE UBL offers the facility of the Rupees Traveler Cheque. Easy to obtain and encash from all designated 350 branches of UBL. UBL Rupee Travelers Cheques are the ideal and safest way of carrying cash when traveling anywhere in Pakistan. • • • • • • • Used for conducting day. Good until used and have unlimited life. Acceptable all over Pakistan. No commission is charged from the purchaser. Easily transferable like an order cheque.
because of the fear of withdrawal. UBL also provides this facility to the general public against a certain rate of interest. because customer 42 Internship Report . Actually this deposit is for the business purpose. schoolboys and employees of the organizations use the saving account facility. The primary economic function of the commercial bank is to receive the surplus saving money from the general public. The bank accepts the deposits at a low rate of interest and lends it at higher rate of interest. public houses and companies and to pay the cheques drawn upon the bank. whenever he feels need. Normally workers. saving and fixed accounts is mainly on the basis of duration and purpose for which the account is maintained at a bank CURRENT DEPOSIT Current deposit is running deposit because. he will have to give a notice of 7 to 14 days in writing to the bank. The purpose of this account is to attract the small saving of the general public. SAVING DEPOSIT Saving Account is an important source of funds for the bank. individuals.DEPOSIT DEPARTMENT Deposits act as a backbone of bank. firm. The main thing is that bank does not pay any kind of interest on current account. The new name of this account is now a day is PLS-Saving Account. Bank has to keep with it a higher reserve ratio to meet the needs of the current account holders. institutions. the difference between the lending and accepting rate is the Source of income for the bank. The bank cannot invest the deposited amount under current account heading. It is the lifeblood of every bank. Keeping in view the above factors UBL offers the following types of deposits: 1) 2) 3) Current Deposit Saving Deposit Fixed Deposit The classification of the deposits in to current. Saving account deposits provide a chance to the bank to invest safely. If a customer wants to withdraw a large sum of money (above 15000). customer can withdraw deposited amount at any time. The customer can withdraw without any prior notice to the bank. The bank has to pay the cheque provided within the limits of the account balance. The supply of money in circulation is also affected by the amount of loans and advances issued by the bank. These deposits are source of generating incomes for the bank and for the general public to meet the financial needs.
00% rate of interest instead of 6.50%. For example you have deposited Rs.000/. Then it doesn’t mean that you will not get any profit on it at all or you should be charged a fine. In Pakistan this account is subject to Zakat deduction.00% then it means now you will get the 6. FIXED OR TERM DEPOSITS Fixed or Time deposits accounts are the major source of the capital for investment for the bank and cannot be withdrawn as in case of the current account. The period of fixed deposit account ranges from three months to ten years. 100.can withdraw small amount of balance. The rate of interest also varies due to time period. salaried persons etc.50% per month. to get the regular (monthly) rate of interest. Only and only your profit ratio would be reduced because according to the bank policy more the period of fixed deposit more the interest would be paid to the customer by the bank. After the expiry of the period the customer presents the receipt to bank and received the amount in cash or bank added in the customer accounts as agreed between bank and customer. Accidentally after six month you need your amount back and want to withdraw it. Q: if the customer withdraw the amount before its maturity period in fixed deposit account then what would happen? ANS: Suppose you are the customer of the bank and have fixed deposit in that bank. It is usually operated by widows. OPENING OF THE NEW ACCOUNT A customer can open the following three types of accounts: 1) 2) 3) PLS-Saving Account Current Account Fixed Account 43 Internship Report .for the one year at the interest rate of 6. More the maturity period of the account more the interest is paid by the bank. The rate of interest paid on fixed Deposits is normally higher than saving Deposits. Suppose that six months fixed deposit rate of interest is 6. retired pensioners. The amount deposited can be received back after a certain specified period of time.
occupation. the bank to get authorized signature of the customer as specimen for avoiding any future discrepancy gives Customer. so that in future the new account holder may not fraud with the bank. Rules and Conditions for Saving Account: The account opening person knows the rules and conditions. card number. UBL has defined the following procedures for the opening of individual saving account: Signature specimen card. address. to avoid future discrepancy. Account opening form consists of full name. when the new account holder fulfills all the requirements then he is asked to give some existing account holder guarantee. I. II. II. joint saving opening from has same information more than one time because more than one person fills this form to open the account. 44 Internship Report PLS. Account opening form.1) Opening of saving Account Saving account is also divided into two types further. 100 not less than this amount. to be filled by him. and date of birth. or by charitable institutions or provident funds or other funds. Just the difference is in the account opening form.D. when a customer comes to open the new account in the branch he is given a printed form. societies and For opening of this account application has to submit on the prescribed form by the firms or clubs.Saving account may be opened by/in the name of individual or jointly. . Briefly is that no one/single person can open this account. as a result it is called joint saving account. Guaranteed by the existing account holder. Signature specimen card is also used for the same purpose as for the individual saving account.I. Individual saving account Joint Saving Account I. Opening of Individual Saving Account An individual person can open this type of account. telephone number. Account opening form. associations. Opening of Joint Saving Account: Opening procedure for the joint saving is same as in case of individual saving account. and N. This account can be opened only with initially Rs. 1) 2) 3) bank.
if any must be withdrawn. Account opening form. nationality. name. instructions from the drawer countermanding payment. if any mistake is by the depositor/withdrawer than bank will not responsible for the loss. Withdrawal. I. occupation. Opening Of Current account A person. which has been paid prior to receipt of written The bank will take care to see that credit and debit entries are correctly adjusted. the bank have a right to amend. Minimum balance of this account is Rs. Joint Current Account Individual Current Accounts Sole proprietorship Current Account Partnership Current Account Joint Current Account More than one person can open joint current account. businessman and organization can open the following types of current account. business address. cancellation and the balance amount. 12) The bank to the account holders will supply statement of account every quarter. IV. Etc. B). II. 2). If a joint holder dies then bank holds the account and refers case to the court. depositor can’t withdraw more than his balance or one quarter.4) 5) 6) 7) 8) 9) Customers can deposit money in his account by using pay-in-slip. At least 7 Bank can’t responsible for a cheque. I. III. place and date of birth. 10) The profit or loss on the balance due at the time of death will be paid when bank will declare its profit/loss for the half year. employer no. Customer must check the signature of two officer of the bank on the deposit slip. 000 approx. national identity card number. but If the account is closed the unused cheques must be returned to the bank for the days notice must be given to bank for withdrawal purposes. 13) Amendments of rules. 11) Death of account holder. alter or add to any of these rules with or without notice to the account holders. 45 Internship Report . in absence of any instructions the credit balance outstanding in any joint account in the name of two or more persons will be payable to the survivors.l0. this application form is divided into two sides and both sides have same information which are details of signatory (A.
nature of business. The account opening form of this account is different than others because this form is filled in the name of the organization. Minimum balance that required in this account is Rs.II. required by the bank. the difference is in the account opening form. Procedure for opening this account is also same as in PLS-Saving account just the difference is in opening form information. Account opening form shows the name in full. have to mention on this form. Place and Date of birth. Minimum balance in this case is 2500. III. location. The procedure is same for opening such account.B. The name of proprietor. 46 Internship Report .C. Partnership Current Account Partnership current account can be opened with the name of Partnership Company.D. checkbook is issued and used no other instrument is used or accepted by the bank. if the balance in the account is less than this limit than bank sends a statement to account holder to maintain the minimum balance. 1000. After that this form is divided into four sides with the name of A. telex number. Sole proprietor opens this account. Nationality. Sole Proprietorship Current Account In sole proprietorship organization a person invests his capital and devotes full time to his business. Most recent set of Account Current Municipal Licensee Commercial Registration Certificate. principal place of business. and telephone number. and showing the same information mentioned earlier. Documents Required Following documents certified copies are required with the application: a) b) c) IV. All the profit paid on balance will go to the sole proprietor only. Individual Current Account Only one person can open individual current account. For withdrawal. Before opening of partnership account shareholders has to decide that how many partners have right to sign on cheque. address. Passport number and National Identity Card number.
Bank can close /down any account at any time upon 48 hours write notice.Rules and Conditions 1. Any person opening a current account is deemed to have read. Area Operational Manager is responsible that the table work of the Central Branch and the Spokes Branches should be done in a right way. 2. 6. Account holder who is unable to sign. The account number should be mentioned on all correspondence with the bank when deposits or withdrawals are made. 5. 7. 8. DIFFERENCE BETWEEN MANAGER & MANAGER OPERATIONS The manager of the bank is responsible for the SALES in terms of both Deposits as well as Advances. 3. Bank will not make payment if cheque is made unauthorized. The account holder must maintain the minimum balance requirement that is Rs: 1000. understood and bound by the bank rules and conditions of current account. 47 Internship Report . he will affix his left-hand thumb. AM is under the Regional Head and is responsible to achieve the targets of Advances as well as Deposits of the Central Branch with the Spokes Branches under it. After six-month bank refuse the payment of the cheques (post dated cheques). after the opening of the account. On the other hand Operational Manager (manager operations) is responsible for the table work being done within that branch. 4. And same is the difference between Area Manager (AM) & Area Manager Operations on the area level. The cheque amount should not exceed to balance of account.
the final place is accounts department for recording these vouchers.ACCOUNTS DEPARTMENT ACCOUNTS DEPARTMENT It is said that accounts department is the backbone of the bank. With the help of these books of accounts. A sheet is prepared on which all the vouchers. FUNCTIONS OF ACCOUNTS DEPARTMENT The accounts department performs the following functions: (a) (b) (c) (d) To prepare and maintain the vouchers. III. semi-annually and yearly financial statements. Different books of accounts relating with other departments are maintained here. quarterly. Cash Voucher Clearing Voucher Transfer Voucher All the daily transaction in cash. Credit Vouchers These two vouchers are again classified into three following types of vouchers: I. It plays a vital role in performing different banking functions. Debit Vouchers 2. transfer and clearing is done through these vouchers. II. The accounts department at UBL Hussain Agahi branch is performing its function manually. The working in accounts department mainly depends upon voucher system. passed during any one working day are 48 Internship Report . To prepare different periods statements. Officer in the accounts departments arranges these vouchers according to heads of accounts. accountant prepares monthly. Vouchers Each and every transaction in the bank is made through vouchers. To maintain and update the ledgers for term deposits. These vouchers are of two types: 1. For each and every transaction-taking place in the bank vouchers are prepared and through these voucher contra entries are passed under different heads. To update general ledger.
This sheet is called supplementary sheet. V. Clearing Voucher. Accounts department Maintains and prepares the following ledgers and books of accounts: I. Separate ledger register is maintained for every head of account.consolidated and summarized. Daily General Ledger Expenses Daily General Ledger Incomes/Receipts Monthly General Ledger Assets Daily General Ledger Zonal Expenses 49 Internship Report IV. All the accounts fall under one of these two main heads. The profit after every six-month will be the expense of the branch. advances are performed through these daily ledgers. In UBL all the daily transactions in deposits. Accountant has to prepare different ledger for all schemes of term deposit. 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. Term deposit receipt or TDR ledger is updated after every month for estimation of profit on customer accounts. II. Transfer Voucher are included. Clearing Voucher. Cashbook is consisted on the opening balance and the closing balance of the day. Income account & Expenditure account. cash. III. It provides help in preparing Cash Book. Transfer Voucher are included. Ledger For Term Deposits One of the functions of accounts department is to maintain and update the term deposit ledgers and books manually. transfer remittance. There are two types of supplementary sheets: Debit Supplementary Sheet: In which all debit Cash Voucher. Updating General Ledger When vouchers are recorded in cashbook then the balance of each head of account is posted to its ledger account. foreign exchange. There are two main heads of the general ledgers. clearing. Monthly General Ledger Liability . Cash Book It is maintained to keep the record of daily receipts and daily paid vouchers. Credit Supplementary Sheet: In which all credit Cash Voucher.
General ledger tells about A/C No. This statement provides assistance in budgeting about branch. first of all master 50 Internship Report . and the other by the customer. Specimen signature card is also filled in signed by the applicant. Locker Operating Procedure: Bank provides an application form to the applicant who needs to operate a locker in the branch. consisting on the details about assets and liabilities of the branch. amount. Preparation of Different Statements Accounts department prepares these statements. VII. The account department also maintains the record about lockers. amount and running balance. Daily General Ledger Inspection expenses. In case of opening any locker. previous Balance. customer has to open his account in the same branch/bank. Each locker has duplicate keys.. Daily General Ledger Regional Expenses VIII. Statement of account and balance confirmation is sent to accounts holders.VI. For availing this opportunity. Almost in all branches. jewelry or documents. Statement of provisional Income and expense is prepared monthly. This application form contains all rules and regulation regarding to obtain a locker. Bank assigns a password to their customer for secrecy. LOCKERS UBL is also providing lockers facilities to its customers. Dr. The basic purpose of locker is to provide safe custody to client’s valuable ornaments. description. Cr. a) b) c) d) e) Statement of Affairs Statement of provisional Income Statement of provisional Expenses Statement of Head office A/C Balance confirmation Book/Report f)Transfer Book Statement of affairs is prepared yearly. Daily General Ledger Audit Expenses The format of the entire above ledger is approximately same. One (master) key is kept by the bank. Lockers are available in different sizes at different rates.
key is applied and then the customer key. the bank will not allow to operate the locker. half-year or quarterly. Bank officer has to maintain the following register for record keeping purposes of locker. If the locker has been obtained jointly then at the time of the opening. 1200 Rs. Locker Register Operation Register Key Deposit Register Safe deposit locker fee is recovered in advance or at the start of the year. Per locker and it is refundable at the time of closing an account the breaking charges are Rs. 600. the person signed the application form. 51 Internship Report . should be presented there otherwise. 500 per locker and it is also refundable at the time of closing of account. provided there is no breaking. I. III. Types of Locker There are basically three types of locker at UBL that are as under: TYPES OF LOCKERS Small Medium Large RATES OF LOCKERS Per Annum Rs. 1800 Rs. II. 3000 The key deposit fee is Rs.
• • Outward Bills For Collection (OBC) Inward Bill For Collection (IBC) Outward Bills for Collection Bills department receives cheques or other kinds of bills from its clients. drafts and pay order. Outward Bills for Collection Register Outward bills for collection register is maintained in order to deep the records of all bills for outward collections. This department provides services to customers at low charges to get their amounts from the nearest branch.e. The party account must be opened in that branch which sends it to paying branch . which is income for the bank. The bills are cheques. This register is updated two times. and should send the bank advice to the originating branch. confirmation advice is transferred to the sender branch. After confirmation of the amount and bills. 52 Internship Report . which come in bank for collection. the account of the customer is credited against reasonable charges. pay orders. either the cheque will be paid or not by the other bank branch. The checking officer of bills department will cross the cheque with special bank stamp before forwarding the cheque to the other branch. HEADS OF BILLS There are two main heads of the bills i. first at time of receiving the OBCs and secondly at the time when confirmation advice is received from the other branch. This branch forwards the cheque with schedule or covering letter to that branch on which bill is drawn.BILLS COLLECTION BILLS DEPARTMENT This department basically deals in bills. After confirmation of the amount. drafts and call deposits etc. call deposit.The responsibility under IBCs of the branch is to verify all the bills within three days. The condition under Outward Bills for Collection is that the customer must have his account in the branch. These bills are from outstation branches of UBL or of other banks. Inwards Bill for Collection These bills come to branch for payments so branch has to verify these cheques.
to receive and forward the cheques. The clerk of forwarding branch prepares the schedule and vouchers of all the clearing cheque. through which branches forward and receive clearing cheques. State Bank of Pakistan has a clearinghouse. Representative of all local banks are in clearing house of SBP. The clearinghouse of SBP. Care is made while posting the amount of bills in the register. endorsement stamp and branch special crossing stamp. CLEARING DEPARTMENT This department welcomes the cheques and other negotiable instruments drawn upon local branches of other banks. The SBP will send a consolidated debit/credit advice to the branches in respect of clearing cheques delivered or received from the branches. Each bill is assigned a number according to the register series. The other branches will not send any advice to head office. 53 Internship Report .Inward Bills for Collection Register Inward bills for collection register are maintained for future record purposes. with a schedule. Clearing system is helpful for both the customers and bank in saving of time. Copies of all advice will be sent to head office. Clerk posts the contra entries of these vouchers in the clearing register. it will be essential for the branches to advise head office account about every transaction. which he received on that day and sends these cheques to the checking officer. PROCELURE FOR ADVISING H/O ACCOUNT All the inter-bank adjustments will be effected through HO account. conducts clearing. At every day at about 9:05 a. The amount of the advice will agree with total amount appearing in the schedule of cheques delivered/received.m. Every year the number starts from one and continues for the whole year and next year again from one and so on. labor and currency involvement. PROCEDURE FOR CLEARING CHEQUES AND INSTRUMENTS UBL is a member of SBP and has an account with SBP. 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. Checking officer passes these cheques and vouchers by his initials.
In case of cheque drawn on one branch and collected by another branch for the credit of its constituents the branch delivering the cheques will send a consolidated debit advice to the drawee branch. Main branch of the UBL handles the transfer deliveries of cheques. Saqlain A/c 3-cheque 6-Credit Advice For Collection SBP Multan Clearing House 5-Credit Advice 4-cheque MCB Multan Mr. Clerk maintains the ledger for transfer deliveries. The same clearing cheque procedure will be adopted in the transfer delivery case except both availing the facility of SBP.TRANSFER DELIVERY Branch receives the cheques and other negotiable instruments drawn on other branches of the same bank. Ali A/c 1-cheque 54 Internship Report . copies of all the advice will endorse to head office as usual. COLLECTION & CLEARING PROCESS 7-Proceed Fate UBL Multan 2-cheque UBL Lahore Mr.
Ali has to pay the amount in Lahore to Mr. Then main branch of UBL Multan will send this cheque to the SBP clearing house Multan. Ali will make the cheque of his own account and say to his bank (MCB) to pay it in UBL Lahore branch in Saqlain’s A/c. Mr. At the end. And then SBP clearing House will send this cheque to the MCB branch in which the cheque is made. He purchases some products from Mr. The bank sends its own employee to the clearing house with all the cheques of other banks. Ali’s A/c is in any MCB Multan branch and Mr.If both banks are in the same city then only clearing process would be performed. Then this cheque will go to the main branch of UBL Multan. Ali’s A/c (account) is in any MCB Multan Branch. Suppose Mr. 2.Suppose Mr. COLLECTION In the above example. And the clearing process is happening in Multan between UBL main branch and MCB. So. the UBL Kent branch Lahore will send this cheque to the main (hub) branch of UBL (its own bank branch) in Multan for the clearing process. Saqlain who is the party of Lahore. Saqlain’s A/c is in UBL Lahore Kent branch. Then the MCB Multan branch will send this cheque to UBL Kent branch Lahore where there is Saqlain’s A/c. Then SBP will credit this amount in A/c of UBL because the liability of UBL is increased and debit this amount in the A/c of MCB because their liability has decreased. It means Mr. UBL Kent branch Lahore is the collection agent on the behalf of its customer (Saqlain). the main branch of UBL Multan will send proceed fate to the UBL Kent branch Lahore where is the Saqlain’s A/c and the amount will be credited in the A/c of Saqlain. Seller’s A/c UBL Multan 2 5 1 4 Buyer’s A/c SBP Multan Clearing House MCB Multan 3 55 Internship Report . If the Ali’s A/c has sufficient amount for the payment then this MCB branch will send the Credit Advice to the SBP Clearing House. Saqlain.
There will only be the confirmation process. CROSS CHEQUE Cross cheque is a cheque through which the amount is transferred from one account to another account. In above example UBL is performing outward clearing. No body can withdraw the amount directly by this cross cheque even the favoree himself until this amount is credited in the his A/c. Because the bank is inspecting about a person who has an account in another bank. MCB is doing inward clearing. He has to scrutiny (Check) that is the cheque issuer has the sufficient amount or not? In the above example. Then he can withdraw that amount from his own A/c. OUTWARD CLEARING The bank that receives the cheque of another bank it goes in the process of outward clearing. 56 Internship Report .If the cheque has to go in different branches of the same bank then there will not be a clearing process.3. 2 UBL Multan Proceed Fate 3 1-Cheque UBL Lahore INWARD CLEARING The bank that has to pay the amount it goes in the process of Inward (internal) Clearing.
Responding Bank Branch The branch that receives the instruments for remittances. Multan PLS ACCOUNT NO. PARTIES INVOLVED In case of remittances normally two banks are involved.SPECIMEN (Sample) OF A CROSS CHEQUE United Bank Limited Hussain Agahi Branch. _______________ DATE ____________ PAY ________________________________________________________ OR BEARER RUPEES ________________________________________________________________ REMITTANCES DEPARTMENT RS. _______________________ Transfer of money or equivalent to money from one branch to another branch of the same bank is called remittance. also known as drawee’s branch: TYPES OF REMITTANCE Remittances are classified into the following two types: 1) 2) 1) Inland Remittance Foreign Remittance Inland remittances It is a transfer of money from one branch to another branch of the same bank within the same country. In this case both the parties will be of the same country and same bank. which issued the instrument for remittance. are as under: Originating Bank Branch It is the branch. Now it has become an easier and safer method both for the client and banker to transfer their money from one branch to another within the city or Outside City. 57 Internship Report .
Applicant’s Name Applicant’s Address Signature of Applicant In Favor of (Payee’s or beneficiary’s Name) Drawn on (Name of Drawee Branch) Amount in words and figures. 4. in case of making a DD against cheque DD No. Amount of commission charged by the bank on providing this facility Cheque No. There are two types of demand draft. The DD Application Form contains: 1. There are three parties involved: Drawer: Issuing Bank. 6.MODE OF REMITTANCES United bank limited. 9. 7. 8. Stamp of the issuing branch 58 Internship Report DD Issued DD Payable . which are as follows a) b) a) DD Issued UBL has a standard application form that must be filled in by the customer for issuance of Demand Draft. 3. 10. uses following types for transfers of money: 1) 2) 3) 4) 1. It is to transfer the funds from one city to another. Payee: The name of person to whom the payment is to be made. 5. Drawee: The bank on which the draft is drawn. Demand Draft (DD) Pay Order (PO) Mail Transfer (MT) Telegraphic Transfer (TT) Demand Draft (DD) A bank draft is an order instrument issued for payment of a certain sum of money to a certain person. 2.
This account is credited by the drawer branch on receipt of the cover in the form of IBCA. payment of a draft should be made after receipt of a corresponding credit advice. Signatures should be verified on all drafts drawn on a branch. 4. a sum of the amount payable must be written in red ink preceded by the words “UNDER” or “NOT OVER”. The clerk prepares the demand draft when all the requirements are fulfilled. 3. In the case protect graph is not available. On receipt of advice from the drawee’s branch. 2.The Second Officer. payment should be executed through the approval of the Manager at the drawee’s branch who should satisfy himself with regard to the authenticity of the draft in terms of signatures and otherwise. All drafts drawn on a branch should be routed through the General Ledger Accounts “Draft Payable” of the Bills Payable Account. Bank’s Charges The bank recovers different types of charges from the applicant on issuance of DD. In case the advice has not been received. including: I. Demand draft is then recorded in the DD issued register and credit advice is sent to the drawer branch. III. Practical procedure regarding to the payment of demand draft. As a precaution. Normally. II. in the United Bank Limited may be summarized as follows: 1. Cash Officer and another authorized officer must duly sign this form. Postage Charges b) DD Payable When the bank branch receives a credit advice issued by another branch and the title of the advice is demand draft then this is called the Demand Draft Payable or the DD Payable. It is known as “Protective Crossing” or security notation.5000/5. 59 Internship Report . The cheque of the showing the amount of the DD is attached with the application form. Central Excise Duty Commission Tax IV. The draft when paid should be marked in the DD payable register. signatures should be verified if the amount of a draft exceeds Rs. the draft should be protecting graphed.
The instrument should be scrutinized properly with regard to name. Drawee branch. 3. The payment orders are generally issued for anyone of the following practical purposes: 1. For the sake of inland and foreign remittances in case where the beneficiaries do not For all local payments under instructions of the customers for sundry purposes like maintain account with the bank. a certain sum of money. The following contains stepwise procedural prescriptions pertaining to the issuance and payment of payment order: Issuance I. in such cases. a letter in this respect. For the issuance of payment orders. The payment should not be effected unless the payee has been identified to the satisfaction of concerned officials at drawee branch.Essential Precautions at the Time of Payment I.as commission plus excise duty will be paid on the counter. payment of insurance premium. club bills. 2. payments to third parties. on the presentation of the instrument.5/. III. It would be better if an account holder verifies the identity of the payee. II. The cost of the payment order along with an amount of Rs. To facilitate all locally payable expenses on account of a bank for the reason that such payments are not executed through cheques. an application will be tendered on bank’s standard form (F-34) by the purchaser giving his name and address thereof In case of request from the bank’s customer for the issuance of the payment orders. Payment Order / Pay Order (PO) A banker’s Payment Order is an instrument drawn by a banker on himself Implicit in a payment order is an undertaking on the part of the banker to pay. Extra care should be exercised if the payee falls in the category of non-customers. amount in words and figures protect graphic and signatures of officers. will be obtained giving full particulars of the payee authorizing the bank to debit the account. 60 Internship Report . rent and taxes etc. 2. II.
Account of______________ Date VIII. The amount is rounded off on top of the instrument either through protect graph machine or neatly by hand-writing. Date of issue. will be debited to the customer’s account as per bank instructions and contra credit will be passed to Bills Payable — Payment Orders Account. then. The payee shall be duly identified by a bank customer or by Manager / Second 61 Internship Report . A stamp containing the following stipulation shall be affixed on the back of each payment order at the time of issue: Received payment from United Bank Limited as over leaf on. commission. VI. Amount in words and figures. if any. shall be delivered to the purchaser or to the department concerned against acknowledgment on the reverse side of F-34 as well as on the counter foil of the payment order. payment order amount. V.III. IV. the total amount i. Name of the payee. In case of letter of authority.e. Subsequently. the particulars of each payment order shall be recorded in payment orders issued register. Payment I. commission. The payment order shall be signed by two authorized officers of the bank simultaneously authenticating entry in payment order issued register and after verifying the following: a) b) c) d) Name. The particulars of the payment order shall be inserted on the blank payment order leaf either through a typing machine or shall be neatly hand written using indelible ink. code & address of the issuing branch. The application for the issuance of payment order the Manager/Second Officer as the case shall sign (F-34) may be if it is to be issued on bank account. The payment order. excise duty and postage. VII. The account shall also be rounded off through a protect graph machine or by hand on top of the instrument. excise duty and postage account.
62 Internship Report .MT Payable Customer’s Account. The procedure as given above will be adopted in case of all payment orders received for payment. The payment order will then be entered in payment orders issued register after marking the date of payment against the date of issue in the contra columns under authentication. Mail Transfer (MT) Some times a constituent of a bank wants to transfer funds from one account to another or a non-constituent wishes to remit funds in a particular account maintained at some place with a branch of the bank or when the accounts are transferred from one branch to another branch. The particulars of MT should duly be entered in MT payable register. the test should be verified if amount exceeds Rs. discharged from the payment in due course. The procedure for issuance of a mail transfer is the same as discussed for drafts except that the applicant is provided with a memorandum for money received from him for the issuance of a mail transfer on a particular branch of the bank. II. III.Officer in case the payment order is presented for cash payment on the counter and it will be ensured that the payment order is properly receipted on its reverse on appropriate value or revenue stamps. 5. The payment order will then be passed for payment as per bank instructions. II. except that usual precautions shall be observed to ensure that the bank stands V. Cr. 3. Dr. PAYMENT OF MT The procedure for payment is as follows. When the customer’s account is to be credited. Dr. such amounts / balances are remitted by means of mail transfer. On receipt of advice from drawer branch. III. The payee must be an account holder (customer) of the drawee branch. Bills Payable Account MT payable. IV.000. Cr. I. the following entries are passed: Bills Payable Account. IV. Following vouchers should be passed after the test has been verified Head Office Account Drawer Branch.
100 from the customer. demands that his funds should be transferred from one place to another through the quickest means.MT payable Cash. Besides normal charges as those recovered on issuance of demand draft. when courier arrangements exist. But sometimes an individual whether customer or not. 3. Payee is properly identified. it usually takes 2 to 3 days to reach its destination.V. Payee has signed the revenue stamps of adequate amount. In case the payment is immediately required by the payee. The particular of the TT should duly be entered in the TT payable register. Telephone Charges of amount Rs. ordinary or express. to the drawee branch of the bank. If the payment is to be effected in cash. or through telegram. Telegraphic Transfer (TT) Generally a mail transfer advice reaches the drawee branch the next day. A stepwise procedure relating to the payment of TT at the drawee branch is as under: 1. The drawee branch receives message either on telephone. In case where the customers account is to be credited. following entries be passed: Dr.e. Before making the payment of MT. However. In such cases. the drawee branch must ascertain the following: It is drawn on the same branch. Payment of TT A TT facilitates urgent transfer of funds either by a telegram or through telephone. the bank charges one additional expense i. Whereas the message should be decoded in case of telegram. the tested message is given on the telephone. Cr. when it is sent through post offices. Bills payable Account. 2. Cr. In case of a telegraphic conversation. the concerned official at drawee branch should ask for the proper identification of the official at the drawer branch. TT Account Drawer Branch Bills Payable A/C _ TT Payable 63 Internship Report . transfer of funds message is passed on through a telegram. A tested message is sent to the drawee branch followed by the confirmation copy. 4. the entries are: Dr.
4. 5. MONEY GRAM Money gram service is a person-to-person international money transfer service that allows consumers to send/receive money around the world in minutes. with no bank account required. It is now the privatized commercial bank to link up with three international points. London and New York. SAFE The money gram service is used around the world because it is a reliable and trusted way to send/receive money worldwide. 64 Internship Report . Bills Payable A/C TT Payable Cr. home remittances and other transfers in a fully automated manner. Cr. With its large network of branches. passed: Bills Payable A/C _ TT payable Customer’ s Account. UBL is a member of SWIFT (Society for Worldwide Interbank Financial Telecommunications). This enables the Bank to provide secure transmission of foreign exchange payments for trade. FEATURES OF MONEY GRAM FAST With money gram your money can be transferred from almost any country in the world because it is a reliable and trusted way to send/receive money worldwide. computer networked to ensure that your money is transferred within minutes. In case where the payment is to be effected in cash. CONVENIENT More than 50. the following vouchers shall be Dr. UBL offers the most efficient and price competitive services. With-in the country or from abroad.000 MoneyGram agent locations in more than 150 countries. it is poised to offer service almost at doorstep of the customers. Cash TT should be paid after proper identification.Dr. Dubai.
65 Internship Report . fills out a simple form mentioning sender’s name and amount expected. 4. 5. NOTE: “Currency exchange rate set by MoneyGram or its representatives will be applied”. and shows an I. 3.D. fills out a form. 2. Receiving agent hands over the money to receiver. show an I. Receiver can go to any MoneyGram representative.Easy: (How to Receive your transfer) 1. Sender calls the receiver and informs him of the transaction reference number and the amount of money sent. sender will be given a transaction reference number. hands in the amount he wishes to send and the send (service) fee**.D. Upon completing the transaction. Sender abroad goes to nearest MoneyGram representative.
No payment is made against any other monetary instruments.CASH DEPARTMENT This is sensitive department of the branch. cheques received at counter for payment and other cheques are Clearing or Transfer Cheque. In token register a note is written that cheque returned unpaid. If signature are similar with the specimen card than cheque amount is posted in Ledger Card/Transaction Ledger. If signature are not according to specimen card then the cheque is returned to customer and token is taken back. No other person is allowed to enter in the premises of cash department. If any thing is found wrong then cheque is dishonored and is given to customer for rectification. date. The same Token is given to the customer as a proof. As obvious from name that this department deals in cash deposits and payments. Cash department is performing its functions/duties manually. it has to maintain certain sheets. For payments and receipts. The next step is forwarding cheque to the accountant for the verification of the signature with specimen card signature. Special Considerations When cheque is received for payment special care is taken about the signature of the account holder. signature at the back of the cheque presented for payment. Normally the cheques come for payment in the branch are. no cross or cutting in figures. If the cheque is found valid in all respect then Token Clerk assigns token to the cheque at the back. 66 Internship Report . which are as under: 1) 2) 3) 4) 5) 6) 7) Cash received voucher sheet Cash paid voucher sheet Token register Transaction ledger Pay-In-Slip record Cheque book record Cash balance book PROCEDURE FOR CASH PAYMENTS The instrument against which payment is made that is the cheque. books of accounts and various ledgers. Special care is given to the balance of the account either favorable or unfavorable.
than accountant authenticates the two by signing on the two documents posting stamps on the slip. Closing Balance = Opening Balance + Receipt . made in pay-in-slip. The Cashier. then payment is made to holder of the cheque. One part of the slip is given to depositor.. and other part is given to clerk for further posting in Ledgers. than he has to get approved from his superiors.Overdraft Facility If the balance in the account is less than the cheque drawn. Withdraw Limits If the cheque is up to or less than 10. The cashier checks necessary details provided in the pay-in-slip and count the cash to be deposited and tally with the figures written in pay in slip and in his hand/counter. then bank may extend O/D facility to its customer but now-a-days this facility is not provided. If any mistake is found then first that mistake/error is removed. The Manager of the bank signs the consolidated figures and written in cashbook as closing balance. To both the transactions made in the sheet and to pay-in-slip. The cashier performs all these duties manually. The pay-in-slip is consisted on date. which are retained by the bank to show acceptance about the entries. and particular about the amount to be deposited in the account. after all verifications of the cheque it is given to the cashier. At the same time cashier maintains the Cash Receive Voucher Sheet. This voucher sheet starts with one and continues for the whole day and next day again started from one. 67 Internship Report . details of payments and receipts. Finally. which will the opening next day. such deferred acceptance can extend the maturity date. at the end of the day has to maintain and balance the cashbook. The depositor signs the part of the paying slips.000 then officer can sanction and in case of greater. than cashier fill in Cash Voucher Received Record Sheet and assigns a voucher no. If there is no one. A/c No.Payments draft until the goods have arrived. If all is done well. PROCEDURE FOR CASH RECEIVED For depositing any amount in the account Pay-In-slip is used that is filled by the customer. The pay-inslip serves as a voucher to Card/Transaction Ledger is only updated with pay in slip. The cashbook contains the opening balance.
Profitability ratios are gauges of the company's operating success for a given period of time. Since ratios adjust for size. Liquidity ratios are measures of the short-term ability of the company to pay its debts when they come due and to meet unexpected needs for cash. After calculating ratios for each year's financial data. liquidity ratios. Solvency ratios indicate the ability of the company to meet its long-term obligations on a continuing basis and thus to survive over a long period of time. Ratios are often classified using the following terms: profitability ratios (also known as operating ratios). using this analytical tool facilitates intercompany as well as intercompany comparisons. and solvency ratios.Ratio Analysis Ratio analysis enables the analyst to compare items on a single financial statement or to examine the relationships between items on two financial statements. the analyst can then examine trends for the company across years. Financial ratios allow for comparison: • • • • Between companies Between industries Between different time periods for one company Between a single company and its industry average 68 Internship Report .
90 % Chart no.96% Year 2008 Amount in ---000---rupees =14052051/52763249 =26. This is because the economic conditions for Pakistan changed very fastly.63% Interpretation: The Net Profit Margin for 2010 is higher as compare to the years 2009 and 2008. The NPM for 2009 is slightly low as compare to the year 2008. Net Profit Margin= Net income/Revenue *100 Year 2010 Amount in ---000---rupees =17742218/59331761 =29.1.1 Year 2009 Amount in ---000---rupees =14034501/61107025 =22. 69 Internship Report .
Gross Spread Ratio= Net Mark up income/ Gross Income. This is because the company is growing at a rapid at. and receiving more mark up ratio as compare to gross income.2 Year 2009 Amount in ---000---rupees =20327864/32943238 =61% Year 2008 Amount in ---000---rupees =20762280/28515968 =72% Interpretation: The Net Mark up income for the year 2010 is greater from the last couple of years. Year 2010 Amount in ---000---rupees =26103808/34108508 =76% Chart No.2. 70 Internship Report .
04% Chart No. Non interest income to income ratio= Non Interest income/income Year 2010 Amount in ---000---rupees =10120632/17742218 = 57. Spread Ratio= Interest Earned/ Interest Expense.6% Interpretation: The non interest income for the year 2010 is lower as compare to the years 2009 and 2008.36% Year 2008 Amount in ---000---rupees =11199152/14052051 =79. 4. 71 Internship Report .3 Year 2009 Amount in ---000---rupees = 11419571/14034501 =81.3.
4 Year 2009 Amount in ---000---rupees =61107025/28163787 =2. This shows that the bank is strivivng towards success and controlling their expenses very well. 5.17 times Interpretation: The interest earned is 2.5 times greater as compare to the interest expenses. The ratio is als higher for the year 2010 as compare to the recent years.17 Times Year 2008 Amount in ---000---rupees =52763249/24247281 2.53 Times Chart No. 72 Internship Report . Return on Assets= Net Income/Total Assets.Year 2010 Amount in ---000---rupees =59331761/25223253 =2.
So The Bank would not Able to cover back the ROA ratio.Year 2010 Amount in ---000---rupees =11647044/694784989 =1. this is because of Flood in Pakistan faced by our country. 6. The 30% area of the country is swearly affected by flood.5 Year 2009 Amount in ---000---rupees =10812174/619719433 =1.74% Year 2008 Amount in ---000---rupees =12352021/620707389 =1.99% Interpretation: The ROA for the year 2010 is lower as compare to the year 2009. DuPont Return on Asset Ratio = (Net income /Sales)*(Sales/Total Assets) Year 2010 Amount in ---000---rupees Internship Report Year 2009 Amount in ---000---rupees Year 2008 Amount in ---000---rupees 73 .67% Chart No.
=(11159930/59331761)* ( 59331761/698784979) =1.59 % Chart No. Return on Equity=Net Income (after tax)/ Shareholder’s Equity.48% =(8445251/52763249)* (52763249/620707389) =1.36% Interpretation: this Ratio is also increased during the calendar year of 2010. Year 2010 mount in ---000---rupees =11159930/60180924 Year 2009 Amount in ---000---rupees =9192687/52276246 Year 2008 Amount in ---000---rupees = 8445251/47121165 74 Internship Report . 7.6 =(9192687/61107025)* (61107025/619716433) =1.
=18. 8.2% Year 2009 Amount in ---000---rupees =(558779710/619716433) =90. Debt ratio= (Total Liabilities/Total Assets) Year 2010 Amount in ---000---rupees =(630369914/698784979) =90.7 Interpretation: The ROE for the year 2010 is greater as compare to the recent years.04 % 75 Internship Report .58% =17.92% Chart No.16 % Year 2008 Amount in ---000---rupees =571311725/620707389 = 92.54% =17.
Debt/Equity Ratio= (Liabilities/ Equity) Year 2010 Amount in ---000---rupees =(630369914/60180924) =10. and year 2010.Chart No. 9.68 Times Year 2008 Amount in ---000---rupees =571311725/47121165 =12.47 Times Year 2009 Amount in ---000---rupees =(558779710/52276246) =10. Which are increased during year as compare to the year 2009.8 Interpretation: The Debt Ratio is almost same from year 2009. but lower from the year 2008.12 times 76 Internship Report . The total liabilities are above 90 percent of total Assets.
Advances/Deposits Ratio Year 2010 Amount in ---000---rupees =333732172/550645767 =60.60% Chart No.Chart No.9% Year 2008 Amount in ---000---rupees =377945366/492267898 =76. 11. but is higher in 2008. The ratio is slightly lower from 2009.66% 77 Internship Report .11 Year 2009 Amount in ---000---rupees =354091713/492036105 = 71.9 Interpretation: The liabilities are above 10 percent as compare to the equity.
12 78 Internship Report Year 2009 Amount in ---000---rupees =23099432/5147259 =4.487% Year 2008 Amount in ---000---rupees =1025033/5210870 =0.19% .Interpretation: The Advances to the deposits Ratio is above 60percent for the year 2010 but is lower from the years 2009 and 2008.83 % Chart No. Operating Cash Flow Ratio= Cash Flow from operation/Current Liabilities Year 2010 Amount in ---000---rupees =100070348/5045815 =19. 12. This is because The bank did not give too much advances.
4 /Chart No.Interpretation: The Cash Flow From Operating Activities to current liabilities is greater in year 2010 and much lesser in 2009 and 2008. Dividend Per Share= Dividend over Period /Number of Outstanding Shares Year 2010 Amount in ---000---rupees =4896718/1224179 =Rs.5 /Year 2008 Amount in ---000---rupees =2 79 Internship Report .13 Year 2009 Amount in ---000---rupees =2782225/1112890 =2. 13.
12 /Chart No.14 Year 2009 Amount in ---000---rupees =9192687//1112890 =8. 14.26 Year 2008 Amount in ---000---rupees =8333120/1011718 =8.236 80 Internship Report . Earning Per Share (EPS)= Net Income /Number of Outstanding Shares Year 2010 Amount in ---000---rupees =11159930/1224179 =Rs. 9.Interpretation: The Dividend per Share is significantly increased in year 2010 Due to the overall Good business activities of the bank.
. Its profit is also increased more that 25 percent from recent calendar years.48 /- 81 Internship Report .12 =Rs.26 =Rs.45/8.e.91/8.4. 2009.7.23/9. 15. Price Earning Ratio = Market value of Share/EPS Year 2010 Amount in ---000---rupees =68. This interpretation and increase in earning per share shows that bank is growing towards success are a rapid rate.48 /Chart No.15 Year 2009 Amount in ---000---rupees =58. i.07 /Year 2008 Amount in ---000---rupees =36. 7.23 =Rs.Interpretation: The EPS for the year 2010 is greater from previous years.
Interpretation: The Price Earning Ratio for the year 2010 is increases significantly from past years.
This technique is also known as comparative analysis. It is conducted by setting consecutive balance sheet, income statement or statement of cash flow side-by-side and reviewing changes in individual categories on a year-to-year or multiyear basis. The most important item revealed by comparative financial statement analysis is trend. A comparison of statements over several years reveals direction, speed and extent of a trend(s). The horizontal financial statements analysis is done by restating amount of each item or group of items as a 82 Internship Report
percentage. 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. Thereafter, 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. The resulting figures are called index numbers or trend ratios. Formula = Current Year amount / Base Year amount * 100 Horizontal analysis, whilst simple to execute and useful to a certain extent, has its limitations. These limitations include: • • • Being highly dependent on the selection of base year and the period under examination in the financial model. Horizontal analysis provides little insight into why the trend occurred in a financial model. Horizontal analysis does not provide insight into whether the trend in the financial model results was superior/inferior to some benchmark. Horizontal analysis does not address the challenge of negative numbers.
Horizontal Analysis of Balance Sheet
Horizontal Analysis (%) ASSETS Cash Balances with other banks Lending’s to fin. institutions Investments 2006 100 100 100 100 2007 75 62 155 105 2008 83 82 219 94 2009 100 75 204 141 83 Internship Report 2010 113 77 163 114
Advances Operating fixed assets Other assets Total Assets LIABILITIES Share Capital Reserves Unappropriated profit Surplus On Reval. of assets Bills payable Borrowings Deposits and other accounts Liabilities against assets subject to finance lease Deferred tax liabilities net Other liabilities Total Liabilities
100 100 100 100 2006 100 100 100 100 100 100 100 100 100 100 100
122 103 125 104 2007 120 125 182 179 24 79 100 97 15291 108 104
143 105 194 117 2008 144 128 350 135 147 106 108 78 8179 115 117
154 282 162 138 2009 166 146 495 221 98 98 127 197 17467 134 138
187 263 233 148 2010 182 184 573 99 142 365 134 148 Nil 172 133
Horizontal Analysis of Income Statement
Markup/return/interest earned Markup/return/interest expensed Net markup/interest income Provisions against non-performing advances provision for/(reversal of) diminution in the value of investments provision against off balance sheet obligations bad debts written off directly Net markup/interest income after provisions NON MARKUP/ INTEREST INCOME Fee, Commission & brokerage income Dividend income Income form dealing in foreign currencies 2006 100 100 100 100 2007 161 157 162 161 2008 211 213 210 203 2009 241 258 234 312 2010 291 364 258 699
100 -132 -382 -22 201 100 Nil Nil Nil 28 100 70 16 122 Nil 100 127 136 270 628 100 167 220 229 206
100 100 100
97 135 119
121 227 132
133 256 103
155 226 393 84
872 2.318 7. The term vertical analysis applies because each year's figures are listed vertically on a financial statement.831 156 130 307 544 86 422 250 769 287 502 PROFIT AFTER TAXATION Unappropriated Profit brought forward Transfer from surplus on revaluation of fixed assets on account of incremental depreciation Profit available for appropriation Vertical Analysis When using vertical analysis.459 4.058 26.042 219 192 168 238 46 Nil -2.Gain on sale & redemption of securities-net Investments classified as held for trading Other income Total non-markup/ Interest income Total income ( Interest + nonInterest) NON MARKUP/ INTERSET EXPENSES Administration expenses Other provisions written off Other charges Total non markup/ Interest expenses PROFIT BEFORE TAXATION Taxatio n Current Prior years Deferred 100 Nil 2.924 831 Nil Nil Nil Nil 100 20 72 17 142 100 113 146 163 198 100 146 191 203 203 100 100 100 100 100 100 100 100 100 100 100 100 100 126 615 763 129 159 145 -130 -1. The total used by the analyst on the income statement is net sales revenue. Vertical analysis is a technique for identifying relationship between items in the same financial statement by expressing all amounts as the percentage of the total amount taken as 100.515 153 220 176 63 -394 161 275 329 90 300 160 521 207 161 234 205 2.852 110 205 155 95 181 151 -54 2. In a balance sheet. cash and other assets are shown as a percentage of the 85 Internship Report . while on the balance sheet it is total assets. also known as component percentages. whether across the years for a single company or across different companies. produces common-size financial statements. the analyst calculates each item on a single financial statement as a percentage of a total. for example. This approach to financial statement analysis. Common-size balance sheets and income statements can be more easily compared.
00 84.02 2.09 2.92 3.82 27.66 49.19 12.45 100 2010 1.43 6.45 6.69 27.02 4.41 2.93 1.17 100 2007 12.40 5.10 1.37 2.57 2.07 4.85 100 86 Internship Report .00 1.30 4.89 1.88 50.00 44.96 5.94 76.52 80.of assets Bills payable Borrowings Deposits and other accounts Liabilities against assets subject to finance lease Deferred tax liabilities net Other liabilities Total 2006 17.14 100 2007 1.77 4.07 9.32 5.43 77.12 100 0.64 4.30 2.89 6.75 4.66 3. various components of the financial statements are standardized by expressing them as a percentage of some bases.15 0. In Vertical analysis.30 1.53 1.0044 0.total assets and.91 1. each expense is shown as a percentage of the sales revenue.50 3.07 2.34 2.18 1. institutions Investments Advances Operating fixed assets Other assets Total LIABILITIES Share Capital Reserves Unappropriated profit Surplus On Reval.95 1. in an income statement.79 77.86 1.25 4. Examples of common-sized statements include: • • Components of the balance sheet expressed as a percentage of total assets Components of the income statement expressed as a percentage of sales or revenue Vertical Analysis of Balance Sheet ASSETS Cash Balances with other banks Lending’s to fin.95 4.09 20.0030 Nil 4.17 46.50 2.05 100 2010 13.97 5.48 6.00 39.82 21.32 100 Vertical Analysis (%) 2008 2009 12.64 0.46 100 2006 0.0021 0.42 0.0029 0.57 1.15 2.37 4.0031 0.66 3.66 0.67 4.61 0.81 1.70 1.01 4.22 0.69 2.07 100 100 2008 2009 1.90 27.
Commission & brokerage income Dividend income Income form dealing in foreign currencies Gain on sale & redemption of securities-net Investments classified as held for trading Other income Total non-markup/ Interest income Total income ( Interest + nonInterest) NON MARKUP/ INTERSET EXPENSES Administration expenses Other provisions written off Other charges Total non markup/ Interest expenses PROFIT BEFORE TAXATION Taxatio n Current Prior years Deferred 2006 100 31 69 7 2007 110 34 77 8 2008 110 35 75 8 2009 119 40 79 11 2010 143 56 87 25 1 -1 -2 0 1 0 Nil Nil Nil 0 0 0 0 0 Nil 8 7 6 11 26 60 69 70 68 61 24 6 5 0 Nil 4 40 100 16 6 4 4 0 1 31 100 15 7 3 3 0 2 30 100 16 8 2 6 0 0 32 100 19 7 9 1 0 3 39 100 42 0 0 43 57 24 4 0 28 30 28 37 2 0 38 62 23 -4 1 21 42 30 34 0 1 34 66 22 1 0 23 43 48 33 1 0 34 66 43 5 1 46 54 20 28 1 Nil 1 -10 21 18 45 76 36 107 87 PROFIT AFTER TAXATION Unappropriated Profit brought forward Internship Report .Vertical Analysis of Income Statement Markup/return/interest earned Markup/return/interest expensed Net markup/interest income Provisions against non-performing advances provision for/(reversal of) diminution in the value of investments provision against off balance sheet obligations bad debts written off directly Net markup/interest income after provisions NON MARKUP/ INTEREST INCOME Fee.
08 0.3 85.4 287.83 114. Bn) 7.81 8.02 27.42 168.88 12.3 4.85 45.28 10.02 4.Falah Saudi Pak Faysal Bank KASB Bank Meezan Bank NIB Bank Mybank Atlas Bank Standard Chartered JS Bank AA+ AAA AA AA+ AA+ BBB+ AAAAAA AA BBB+ AA AAA A A+ AAA A- 1. Bn) 23.72 5.25 11.34 -0.43 333.31 53.22 7.95 276. Bn) Tax (Rs.55 3.01 24.1 2.Habib Bank of Khyber Bank Al.61 194.52 735.7 450.Transfer from surplus on revaluation of fixed assets on account of incremental depreciation Profit available for appropriation 0 58 0 72 0 91 0 120 0 143 Bank Analysis with reference to commercial Banks listed on stock exchange Financial Position of Commercial Banks Registered in Pakistan Name of Commercial Bank Paid up Reserves Assets (Rs.48 35.53 293.61 44.61 32.8 1.03 17.03 3.46 0.36 34.85 621.16 176 AA+ 11 A88 Internship Report .32 136.24 5.65 38.68 5. Bn) Bn) As of June 2010 Deposits Advances Profit After (Rs.97 350.54 1.12 31.59 0.05 1.59 8.04 217.47 30.35 99.82 0.02 -0.6 18.43 1.83 137.01 38.41 0.84 112.72 465.5 126.12 -1.16 Earnings Branch Per share (Rs) 9.22 5.45 228.57 0.34 2. Bn) (Rs.97 6.39 0.67 -4.75 24.21 167.98 0.11 4.63 0.34 576.54 5.46 6.09 142.28 5.38 0.11 1.51 7.02 8.17 0.39 0.14 180. Capital (Rs.85 81.7 584.13 1.61 0.66 71.57 7.06 4.31 Credit Network Rating (Nos) 1400 1249 757 1038 1100 38 272 90 155 203 34 231 55 111 41 111 240 69 31 Habib Bank UBL Allied Bank MCB United Bank First Women Bank of Punjab Soneri Bank Askari Bank Bank Al.88 7.02 50.5 8.73 0.31 0.59 2.44 -0.82 64.71 788.73 153.44 4.12 344.22 3.33 57.11 (Rs.29 4.62 87.95 0.69 -0.43 -0.05 -2.75 9.12 0.98 45.41 0.43 23.27 9.23 1.47 0.96 22.54 28.08 411.36 173.2 1.81 14.27 2.74 177.79 4 8 5 5.01 2.53 1.04 93.54 6.4 180.18 173.97 1.88 12.77 42.75 0.98 328.81 0.25 0.
57 2.6 100 AA+ A stock exchange is a corporation or mutual organization which provides "trading" facilities for stock brokers and traders. JCR. The JCRVIS Credit rating Co. to trade stocks and other securities.Habib Metropolitan 6. The financial position of commercial banks registered on stock exchanges in Pakistan.02 6. Lahore stock exchange and Islamabad stock exchange.97 101. are shown in preceding page in terms of their: • • • • • • • • Paid-up Capital Reserves Assets Deposits Advances Profit after tax Earnings per share Credit rating The best way to analyze these commercial banks is to analyze their credit ratings. In Pakistan securities are traded on three stock exchanges which are Karachi stock exchange.7 192. and strong liquidity and capitalization levels” 89 Internship Report . unit trusts and other pooled investment products and bonds. The United Bank of Pakistan enjoys the highest credit rating amongst Pakistani banks. The securities traded on a stock exchange include: shares issued by companies. To be able to trade a security on a certain stock exchange. a substantial balance sheet of sound asset quality.45 128. Limited awarded highest standalone credit rating of AAA to UBL. comments about UBL say a lot about the bank: “The organization has been able to strategically manage and build on its competitive advantages which has translated into the strong and well managed improvement in profitability trend observed over the last few years.22 1.VIS Credit rating Co. it has to be listed there. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market.
Conducts pre due diligence meeting analysis 7. Submits preliminary information materials 3. Sub Committee recommends preliminary/initial rating 11. Conducts post due diligence analysis 9. Provides detailed information in response to detailed questionnaire 6. deliberates on appeals by client.UBL’s key strength remains its extensive outreach and a low cost. Notifies issuer of the preliminary/initial rating. Releases the preliminary/initial rating to the press 90 Internship Report . the second half of 2008 and 2009 are likely to be challenging for the banking sector as a whole. The JCR-VIS Rating Process include following steps: 1. Discusses the rating rationales and rating issues with client 13. Deposits are also guaranteed by the Government of Pakistan under the Banking Unitedization Act. stable deposit base. In this regard the management has entered into an agreement for the acquisition of a core banking software which is likely to be implemented over the next few years. There have also been significant improvements in the management practices of the bank and a focus on enhancement of systems and controls. Signs agreement for an initial rating 2. Conducts a preliminary study 4. Submits a detailed questionnaire to the issuer/client 5. in terms of maintaining growth. if any 14. Brief for internal rating committee meetings is prepared 10. Consents to release of preliminary/initial rating to the public in case of nonmandatory ratings 15. Therefore. asset quality and profitability. Conducts due diligence meetings 8. Rating Committee decides the preliminary/initial rating 12. JCR-VIS believes that the current economic situation puts certain leading industrial sectors and the general consumer under financial stress. 1974.
Abu Dhabi Group has also the ownership of Al-Falah Bank. The Chairman of the bank is His Highness Sheikh Nahayan Mubarak Nahayan who is leading role of Abu Dhabi Group. 91 Internship Report .Chapter 4 SWOT Analysis Internal Strengths Ownership of Strong Group The UBL is under the ownership of two very strong (financially) group (The Abu Dhabi Group & The Best way Group). and recently launched a GSM Mobile Network company named WARID TELECOM. In Pakistan the largest FDI (Foreign Direct Investment) is of the Abu Dhabi Group.
With their strategy there are very less chances of non-recovery from the debtor. This group has started its business in England and emerges in the top ten large business entities of England. This group recently installed the Cement Plant of Pakistan in Tehsil Chowk Saidan Shah District Chakwal. Advances on Sound Basis The loan facility provided by the bank is on sound basis. Sir Mohammad Anwar Pervaiz got the following Awards in the owner of his business achievements: 1) Order Of British Empire (OBE) 2) Knight 3) Hilal-e-Pakistan 5) Best Businessman Of the Year 6) Life Time Achievement Award (1992) (1999) (2000) (2001) (2003) Pakistan British Award From British Queen Elizabeth 4) Mir Khalil ur Rehman Husn-e-Karkardgi Award (2000) Huge Deposits The bank has stable growth in deposits since its emergence.The Deputy Chairman of the UBL is Sir Mohammad Anwar Pervaiz (OBE) who is the leading role of Best way Group. They have many checks and documentation that secure their money after advancing. The UBL is the second largest bank in Pakistan and because of its 45 years long existence it is the trustworthy bank in Pakistan and outside Pakistan. Infrastructure 92 Internship Report .
TezRaftar (remittance service) etc. Click N Remit. UBL continually looks for ways to become more efficient and to increase their profit margins. UBL Drive (car financing). If you are looking for a loan. TezRaftar is an other remittance service. Brands UBL has launched their products and varied services with particular brand names that is now-a-days a competitive strategy in its own. Services UBL is providing lot of services to its customers like incase of remittances they have services like Click N Remit online service. UBL Address (house loan). Financial UBL has financial strength as they are gaining profit from the advances that they provide to the organizations. Money Gram is their service for foreign currency remittance from outside Pakistan and Hamrah is their service regarding rupee Traveler Cheque. Like other banks customers do not have to wait for the long time. or you want to deposit money or you want to pay your bills their services are so fast that they respond the customers very quickly. They are launching same schemes that are already existent in the banking sector but because of giving them brand names they are creating unique identity. Everything goes very quickly. UBONLINE (online banking services). UBONLINE is their online service. 93 Internship Report . Their popular brands are UBL Wallet (ATM Card). Fast Service Another very important aspect of UBL is its fast service.Because of its 1000 Domestic and 15 Overseas Branches they have very good infrastructure and are prevailing now outside Pakistan also. HAMRAH (traveler Cheque).
It is due to their very low services of promotional activity. marketing. EXTERNAL OPPERTUNITIES Mobile Banking 94 Internship Report . Low Motivation Level There is low level of motivation in the employees of the bank Reactive Approach UBL Management has opted reactive approach they respond to the market very slow and are reluctant to take initiative before the problem arise. It means authority is not delegated to branch level. Good Reputation Because of its quality management. Manager cannot take initiative regarding different decisions such that for giving finance. Low Promotional Activity The majority of people are not well aware about the products of UBL. innovation in products and services they have established a good reputation in the banking sector.Promotion Criteria The promotion criterion of employees is made up of passing the Diploma Examination of Pakistan Institute of Bankers (IBP). INTERNAL WEAKNESSES Centralization UBL is centralized.
So keeping in view these perspectives there is great opportunity for UBL to be stronger. 95 Internship Report . in particular in Germany and Europe. Sociocultural An external opportunity exists in efforts to improve the social environment of local communities and society in general by offering innovative. With the liberalization many industries are expected to be open in Pakistan and with free trading lot of trade activity is expected. community – involvement programs. Trade Shows UBL should organize trade shows for the promotion of export for that they should finance the companies those who wanted to internationalize and wanted to introduce their product and services outside Pakistan. Liberalization Liberalization is a concept that in under discussion around the world as this is going to be implemented by WTO in a few years to come.Mobile banking is a concept that has started to find its roots in the banking sector. Particular Invention must be given to the individual country’s customs and cultural practices to be successful. EXTERNAL THREATS Rapid Changes The rapidly changing environment in the banking sector and the quick response of the other banks to these changes can be a threat for UBL. International Expansion Opportunities exist for expansion of UBL chains in the International Arena. So it is a big opportunity for UBL to avail this chance at big level.
Increased investment is targeted in developing human resources. infrastructure and internal systems to support the aggressive consumer initiative and exploration of new avenues of revenue generation. Furthermore. On the domestic front. As old banks have started changes and many new banks are emerging as a strong entity so UBL will face a strong threat from this competition unless the adopt pro – active approach to handle these threats. the Bank has already launched its consumer banking business. So the changing needs of the customer can be a threat for the banks. UBL has introduced a full suite of innovative 96 Internship Report . Chapter 5 Conclusions and Recommendations Future Prospects of United Bank Limited UBL expects its strong customer focus to drive the Bank’s future business strategy.Customer Behavior What customer really wants is a difficult thing to identify as to identify the customer perception and its behavior is complex procedure. Governmental Policies Changing Governmental Policies an instability in Politics can be seen as a threat for the banking sector. The first step under this initiative is the launch of the Bank’s ATM / Debit Card. Competition Competition can be the greatest threat for the UBL. branded as UBL Wallet.
All the Staff members give Great respect and honor.consumer finance products designed to capture a significant share of the local consumer financing market and tap into the current growth in demand for such financing. If there is proper checking of work of the employees then they would be very efficient in their work. And know when I made my internship. Recommendations The overall organization is very good and results oriented. the UBL also going step by step with all the organizations. take the employees mind to their private and they will not be able to perform well. There is not an equal distribution of work. according to the designation of the Employee.iconcluded that it is the good banking for rural customers as well as urban customers. he always take interests in others work. My Experience during internship was great and full of learning. Conclusions The UBL is growing rapidly in the banking sector in Pakistan. but I feel there is a need of improvement in some areas. I learned A lot from the GMAbad branch. there are need of areas to be established and worked. Lack of facilities to the employees. It has currently largest Online branches in urban areas . and also developing its structure in rural areas too. and very fast and effective network. 97 Internship Report . then they would be able to work efficiently. There is not so much strictness about works the employee’s performed. As the technology Advances the UBL also making it self fast and accurate in coming years the UBL is looking for the better infrastructure in banking in Pakistan. If proper facilities are providing to them and they have no tension of child feed. It has a good banking Structure.. my mind cleared all the duobts which I left during my internship. Every one not want to do his work properly. and every person want to teach me whatever he knows. As the World is going forward towards technology and advancements.
IF UBL make policies according to the customer needs and customer affordability then. SWIFT MECHANISM SWIFT mechanism is gaining importance for the treatment of LC and it has been found that UBL has only provided SWIFT facility at its head office not to all the authorized dealers dealing with foreign exchange in their branches. To save the precious time of the prestigious for LC in their Central branches inside the country. There is a Need of improvement in the attitude of the staff. The attitude of Staff is not good with the customers. UBL boosting from its privatization. but the competing organization from UBL is running towards success. The interest margin is also increased. because the customers are receiving more mark up with less installments that why UBL’s credit section is not. The online System of the bank should improved. as it was expected.All the members of Staff are not motivated by the seniors. but after that there is not so much care is taken. The service charges are too high as compare to other Commercial banks. profiting effectively. The Organization is creeping towards success. it is much better in urban areas. but very poorly operate in rural areas. To avoid their 98 Internship Report . TO AVOID CUSTOMER DEFECTION During my time period that I spent in foreign exchange department I found in their registers that many firms were defecting means those who were first loyal to UBL for the operations of opening LC were not viewed in the list for a longer period of time. the bank will successively run in towards new age.
Lot of documentation get not only employee confuse but even customer avoid that.defection whether it is partial or full relationship should be created by giving a phone call. REDUCE COMPLEXITY IN ADVANCES While providing advances the mechanism that is opted by UBL is to provide facility and renew it after a year. But UBL has internationalized to few countries. You can perform various activities of bank through your mobile phones or through your computers. In the form of European countries and markets like CHINA where there is lot of activity related to banks they can expand their chains. This can be the reason for UBL having low ratio of advances as compared to their deposits.g. UBL should try 99 Internship Report . ADOPT PRO-ACTIVE APPROACH UBL management should adopt proactive to survive in this sector. With just a call you can transfer money from an account to another and similarly other activities. They have big markets ahead of them and with their working activity will get simpler with that. UBL should start working on this concept to maintain their existence in the changing banking sector. It is a concept that is gaining importance throughout World Pakistan is no exception. In case of consumer financing UBL has respond by having same schemes that have been already launched by their competitive e. What I have observed is that UBL management is having reactive approach means that they react to the situation that their competitors have created. In the renewal whole procedure is followed again that was opted at the start. MOBILE BANKING Mobile banking is actually a banking that you can do yourself. It will make betterment in UBL ‘s goodwill and their profits. INTERNATIONAL EXPANSION UBL has internationalized already and is performing very well in its abroad branches. car financing and housing schemes are responded but very late by the UBL. So UBL should finish the method of renewal but keep checking the performance of the organization by having relationship.
) and including leaflets in statement of accounts sent to existing customers in the hope that they will tell potential customers about the services provided by our bank. It will be beneficial for the bank in a way that lot of time could be saved afterwards with that approach. Rather than looking for small parties whose purpose is just to deposit in the morning and have withdrawal in the evening should be discouraged. This is done by advertising on Television and obtaining Press coverage. pamphlet in branches and in appropriate other locations (such as hostels. RELATIONSHIP The bank should keep on filling the gap between customer and the bank through consumer friendly attitude and efficient services. window displays. BUSINESS PARTIES UBL should start thinking about relationship with the parties that are willing to do the business with the bank. They should work on building relationship with the customers. EDUCATE ACCOUNT HOLDERS Whether the account holders are new or existing bank should provide them with the initial information about how to deposit and withdraw money from the bank. PROMOTIONAL ACTIVITY Bank must let potential customers know that all attractions for banking exist. Business in the form of deposits for a longer period of time.for new innovative ideas rather than moving on the same track that their competitive are doing. in conjunction with direct mail. shops etc. Lot of time in work activity can be saved by having few but good parties rather than having huge accounts of small amount and specially those are not for the purpose of long term deposits. CHANGE ATTITUDE 100 Internship Report .
They should start thinking about changing their attitude from now. In Unite Bank Limited there is no appraisal system exists. postings. And UBL has not any proper compensation plan when ever management decide to give bonus or extra salary to employees it is followed. Compensation is a necessary thing for employees satisfaction. needs of the customers and make comprehensive plans to capitalize those opportunities. Due to this competition the marketing department plays a vital role in the success of the organization. etc. No relationship has so far been established between appraisal and staff motivation. Product Marketing This is age of competition and every organization is facing hard competition from not only domestic organization but also from the international organizations due to globalization. 101 Internship Report . It consist of systematic evaluation of an individual with respect to his personal traits and characteristics. So there should be proper compensation plan. It has been observed that customer do not get the same warm welcome and importance that he wants and he is been provided by other emerging banks like ALFALAH and UNION BANK. Performance Appraisal & Compensation Employee appraisal is an major part good and effective HRM. UBL should have a strong marketing department like many other private banks have. No weight is assigned to appraisal in making decisions on promotions. for the publicity of their products and make well inform the customers all the services provided by the bank and to conduct detailed market researches to find out new opportunities.Employees inside the branches should change their attitude toward the customer. his on job performance and his potential for development.
Recovery Facility It should also provide the facility of recovering notes payable and accounts payable. Charge Card UBL should provide the facility of charge card as well. Some branches of UBL are very attractive but all the branches should be well dressed. 102 Internship Report .Appearance Physical appearance of the location and inside the building also matters. It helps a lot to attract the customer.
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