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Yusha

Cell: 0301-3335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
THE
ISLAMIA UNIVERSITY
OF BAHAWALPUR

Submitted To ; Miss. Sunds S!!een
Submitted B" ;
Mu!mmd Ib##
M.com (Finance) 41
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com

I dedicate this work of mine to my
Teachers, My Parents and to all My
Friends, who truly help and guide me in
completing this project.
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com

Master of commerce (M.COM) is a program in which we studied about business and
finance. In Pakistan the banking sector is at the maturit stage and banking sectors are the
best institutes in which we are easi! understand the practica! e"perience. Master of
commerce gi#es us and opportunit to touch the practica! e"perience about business and
finance as the internship. $he Internship program in an important part to gi#e students an
opportunit to ha#e e"perience of practica! fie!d. %n!ess and unti! the students e"perience
the no#e!t of practica! work& their know!edge of what the stud in theoretica! courses
remains incomp!ete. $he most important point in an Internship program is that the student
shou!d spend their time in a true manner and with the spirit to !earn practica! orientation of
theoretica! stud framework.
$his Internship 'eport is on m (i" weeks practica! training at $UBL% UNITE& BAN'
LIMITE& (HUNA WALA HASIL PUR. In this Internship 'eport I ha#e tried to gi#e
detai!s about the %nited )ank *imited& working and the functions of different departments
of the bank.
MUHAMMA& IBRAR
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
First of a!!& I thank m respected teachers for pro#iding me
comprehensi#e know!edge about Commerce Courses and a!so for
pro#iding me the opportunit to comp!ete m Internship Program in
%)* to enhance m practica! know!edge about banking sector of
Pakistan. I am a!so indebted to the fo!!owings because without their
he!p& I wou!d not be ab!e to achie#e this practica! know!edge.
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
TABLE OF (ONTENTS
(!)te# No.*
Purposes of (tud++++++++++++++++++++++++++++++++++++++++++++++++++ 1,
(cope of (tud++++++++++++++++++++++++++++++++++++++++++++++++++++++ 1,
*imitations of (tud++++++++++++++++++++++++++++++++++++++++++++++++ 1,
Methodo!og of 'eport+++++++++++++++++++++++++++++++++++++++++++++ 1-
(cheme of 'eport++++++++++++++++++++++++++++++++++++++++++++++++++++ 1-
(!)te# No. +
.e#e!opment Finance++++++++++++++++++++++++++++++++++++++++++++++++ 14
(easona! Finance++++++++++++++++++++++++++++++++++++++++++++++++ 1/
Commercia! Finance+++++++++++++++++++++++++++++++++++++++++ 10
(!)te# No.,
1ccount .epartment+++++++++++++++++++++++++++++++++++++++++++++ 12
(!)te# No.-
)irth of %)*++++++++++++++++++++++++++++++++++++++++++++++++++++ 13
(ubsidiaries++++++++++++++++++++++++++++++++++++++++++++++ 13
Functions of %)*++++++++++++++++++++++++++++++++++++++++ ,4
Management of %)*+++++++++++++++++++++++++++++++++ ,-
Function of 5ierarch+++++++++++++++++++++++++++++++++ ,4
(HAPTER NO..
.eposit .epartment++++++++++++++++++++++++++++++++++++++++ ,/
'emittances .epartment+++++++++++++++++++++++++++++++++++++++++++++++++,2
Muhammad Ibrar
M.Com (Finance)
0
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Credit .epartment of %)*+++++++++++++++++++++++++++++++++++++ ,3
C!earing .epartment+++++++++++++++++++++++++++++++++++++++++++++++++++ -1
(HAPTER NO./
Introduction++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Introduction++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ -4 -4
Financia! 1na!sis+++++++++++++++++++++++++++++++++++++++++++++++++++++ -6
Common si7e ana!sis of )a!ance (heet+++++++++++++++++++++++++++ 44
Common si7e ana!sis of Income (tatement++++++++++++++++++++++++++++41
(HAPTER NO.0
8ua!itati#e 1na!sis of %)*+++++++++++++++++++++++++++++++++++++++++++++++42
(HAPTER NO.1
(9O$ 1na!sis+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++/4
P:($ 1na!sis++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++/-
(HAPTER NO.2
Marketing .epartments %)*++++++++++++++++++++++++++++++++++++++++++++/0
(HAPTER NO.*3
'ecommendations ; (uggestions+++++++++++++++++++++++++++++++++++++/6
(HAPTER NO.**
Persona! *earning++++++++++++++++++++++++++++++++++++++++++++++++++ +++++/3
BIBLO4RAPHY
Anne5u#e
Muhammad Ibrar
M.Com (Finance)
2
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
E6E(UTIVE SUMMARY
$his is an internship report regarding the different products of UBL. It starts with an
introduction about )anking fo!!owed b the introduction of UBL. It gi#es a briefing about a!!
the financia! products of UBL.
$his report a!so inc!udes the different features of these products. 1!! the (er#ices
pro#ided b UBL has a!so been discussed and e"p!ained a!ong with the strength and
weaknesses of the organi7ation.
$his report shows and interna! architecture of the working of the UBL<s
)usiness. It gi#es a detai! about the supporting department that has he!ped the business in
their dai! working.
1!so it discusses the ob=ecti#es& po!icies of the organi7ation. $here are a!so some
suggestions>recommendations for UBL.
(HAPTER NO.*
Muhammad Ibrar
M.Com (Finance)
6
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
INTRO&U(TION7
(tudents of M.Com studing courses !eading to Master degree in Commerce are
re?uired to undergo an internship programme of (i" 9eaks duration. $his is an
essentia! academic re?uirement. $he internship is fo!!owed b comprehensi#e report
writing& re?uired to submit to the Is!amia %ni#ersit )ahawa!pur )ahawa!nagar
campus In .epartment of Commerce. $his report is proper! e#a!uated on the basis of
its description and ana!tica! capabi!ities b interna! and e"terna! e"aminers. I did m
internship in %nited )ank *imited Chuna 9a!a )ranch.
PURPOSE OF STU&Y7
$he purpose of the stud is to work in rea! !ife situation and !earn banking practice b
doing. In this conte"t its ob=ecti#es are@
i. $o ana!7e banking operations i.e. operationa! ana!sis& financia! ana!sis.
ii. $o de#e!op concrete and feasib!e recommendations.
iii. $o impro#e report writing ski!!s.

S(OPE OF STU&Y7
$he stud is confined to banking operations. 1n attempt& a!ong with a!! its !imitations&
to co!!ect financia! data and genera! statistics of the bank has been made. Aeeping in
#iew the purpose of the stud& which is to make an ac?uaintance with practica! doings
in the bank& this seems a comprehensi#e effort.
LIMITATION OF STU&Y7
Muhammad Ibrar
M.Com (Finance)
3
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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Email: yusha143@gmail.com
It is to admit that the stud attempts on! those aspects& which are c!ose! re!e#ant to
the purpose of the stud. Facts and figures& which otherwise might be e?ua!!
important& but not ha#ing a direct bearing on the conc!usions arri#ed at this stud&
ha#e been ignored.
METHO&OLO4Y OF STU&Y7
)oth primar and secondar data were used in compi!ation of the report.
Methodo!ogica! too!s used were@
i. P#im#" &t7
Persona! Obser#ations.
.iscussion with )ank Personne!.
ii. Se8ond#" &t7
)rochures> Manua!s of the bank.
1nnua! 'eport
(tate )ank Foreign :"change Manua!
)ank internship reports on %)* a#ai!ab!e in !ibrar.
Bourna!s& newspapers and books.
Internet.
(HAPTER NO.+
Muhammad Ibrar
M.Com (Finance)
14
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
&e9e:o)ment ;inn8e
*oan pro#ide for tractors agricu!ture instrument tubewe!! turbine& !and !e#e!ing etc
$ractor !oans are reco#er within fi#e ear& on ha!f ear! basis other agricu!ture instrument
!oans repaid within three ear ,/C borrower contribution the borrower can app! for !oan&
the borrower worth can be decide on its propert
If a person ha#e14 acher !and
$hen the patwari make its unit with some specific process these unit mu!tip! 444 and ha#e
some #a!ue or amount then 64C of this #a!ue can obtain b borrower for this process
fo!!owing thing are re?uired
Procedure for *oan 1pp!
1. Ahasra+e+girdawari@this the actua! record of cu!ti#ated !and
,. 'egister ha?daran+e+7ameen @ownership of !and
-. 1gri credit officer (1CO)
4. $he work of 1CO is to #isit the site and in#estigate about the borrower a!so #isit in
tehsi! for !ega!! documents for !and and actua! !and record
/. Proposa!
1fter in#estigating the 1CO submit a report to head office in this report the fo!!owing thing
or re?uirements are mentioned
$erm and condition
(ecurit support
Recommendation
9orth of !and !oan amount
B# on <#i :nd7
Muhammad Ibrar
M.Com (Finance)
11
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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1fter appro#a! the proposa! the branch entries in DP1(()OOAE and #erif this passbook b
patwari and re?uest the patwari p!eases transfer this !and temporar toward bank
A<#eement IB
)ank and customer agreement term and condition specif.
*oan amount specif
) back price
1greement date of issue and date of end
(ignature of customer
witness signature
Facility letter
Pass book
Feerbad certificate
Mutated fard
1ttach these document with form a case make and this case forward to head office
If the head office appro#a! this case then bank charge interest 14 to 1, C
$his mark up or interest is on dai! basis
Seson: ;inn8in<7
*oan pro#ide on seasona! crops !ike cotton ice factories& oi! mi!!s& agri re!ated industr.
*oan pro#ide on different crops
(ugar cane@ 6444 per acher
9heat@ 4444 to /444 per acher
'ice@ 4/44 to /444
Potatoes@ 1444 to 1,44
(omme#8i: ;inn8in<7
Muhammad Ibrar
M.Com (Finance)
1,
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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Email: yusha143@gmail.com
*oons pro#ide for shops medicine sere& business etc the fo!!owing re?uirement are necessar.
Procedure@
Propert documents
GOC@ no ob=ection certificate
G:C@ non encumbrance certificate
(ma!! amount estimate b bank
1bo#e 1 mi!!ion C1 estimator
:M>C'M@ propert for securit
In 8se o; #ene=:
1pp!ication re?uest for renewa! !oan
)a!ance sheet
Profit !oss ca!cu!ation.
(HAPTER NO.,
Muhammad Ibrar
M.Com (Finance)
1-
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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Email: yusha143@gmail.com
A88ount &e)#tment
In simp!e word account department performs the fo!!owing functions.
$he dai! working of a!! the departments is comp!eted and compi!e in this department for the
preparation of cash cum da book for the u!timate preparation of dai! statement of affairs of
the branch.
In 1>C department a!! the subsidiar !edgers are inc!ude maintenance of income and
e"penditure subsidiar !edgers are prepared.
Henera!<s tpes of statements ca!!ed b '58 and head office are prepared.
Income statement and e"penditure statement at the end of each month is prepared.
If there is an mistake in an record it is checked and remo#ed in 1>C department.
Henera!! there are two tpes of maintaining of account@
Bourna! (stem
Ioucher (stem
In commercia! industria! institution =ourna! sstem is used. In =ourna! sstem entries are
reported on =ourna! books and then posted to main !edger.
In banking #oucher sstem is used and for e#er transaction #oucher has to be prepared.
Vou8!e# )#e)#tion7
Iouchers are prepared in
Cash
$ransfer
C!earing
Re8o#d boo>s
Muhammad Ibrar
M.Com (Finance)
14
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
$he books used for record keeping in accounts department are@
P"ment boo>
S8#o:: boo>
(s!ie#?s boo>s
T#ns;e# boo>
@ou#n: :ed<e# boo>s
P"ment boo>7
1t the end of business a!! the instruments are entered in paing book. Cashier writes grand
tota! of these instruments in words and figures signs in fu!! on it and send it to the officer.
Officer check and put initia! in front of each and e#er entr and signed in fu!! on grand tota!.
S8#o:: boo>s
It is designed for credit #ouchers i.e. for the amount deposited against the issuance of $$s or
..s etc.
Re8ei9in< 8s!ie# boo>
Part goes to cashier and deposit the cash. Cashier takes the cash enters the #oucher in
recei#ing cashier<s book signs in fu!! on it and send it to the officer. Officer puts his initia! in
front of each and e#er entr and affi" cash recei#ed stamp on it.
1t the c!ose of the business officer after checking recei#ing cashier<s book wi!! sign in fu!! on
it.
T#ns;e# boo>
Muhammad Ibrar
M.Com (Finance)
1/
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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Email: yusha143@gmail.com
Yusha
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$ransfer book is used to keep record of that transaction in which there is no cash
in#o!#ement. the amount of one che?ues is transfer from one account to other account in the
same bank& the account in the same bank& the account from which the che?ues wi!! be drawn
is written on right page which is .r. page and the account in which the che?ues is deposited
is written on !eft page of transfer book which is Cr. Page.
@ou#n: :ed<e#7
$he dai! transactions are entered in this !edger. $he !edger has two portions@
.ormant section
Current section
.ormant section contained the accounts in which there is no transaction for a !ong period.
9hi!e current section is for running account.
Su)):ement#" )#e)#tion7
1>C c!erk accumu!ate the different #oucher transaction wise on a sheet and conso!idates into
one figure ca!!ed supp!ementar.
$here are two tpes of supp!ementar.
i. .ebit supp!ementar
ii. Credit supp!ementar
.ebit supp!ementar is used for debit #oucher e"penses and credit supp!ementar is used for
credit #oucher e"penses. $hese are of red and green co!or respecti#e!. From this
supp!ementar cash cum dabook is he!pfu! for the preparation of statement of affairs of the
da.
OPENIN4 OF AN A((OUNT
Muhammad Ibrar
M.Com (Finance)
10
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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Email: yusha143@gmail.com
Yusha
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'e?uirements for 1ccount Opening
$i% A88ount O)enin< Fo#m
It is a form that contains the account number& date& tit!e of the account introducer<s name and
address& specia! instruction (if an) information about Fakat deduction and mode of de!i#er
of checkbook etc. $hen this fi!!ed form is submitted in bank& the bank admits the signatures
of the app!icant and #erifies the introducer<s signatures (specimen is enc!osed in 1ppendi")
(ii) S)e8imen Si<ntu#e (#d $his card contains account number& tit!e of the account
and the specimen signatures of the account ho!der. 9hen this form is submitted in
bank the bank officer admits the signatures of the app!icant and keeps this specimen
card in record
$iii% (!eAue ReAuisition S:i)
$his is a re?uest made b the c!ient to the bank to issue him a checkbook containing
number of !ea#es mentioned. 9hen this s!ip is submitted in bank& the bank as per instruction
the account of the person is debited or the c!ient pas the amount in cash. If the account is to
be debited then part debit #oucher is prepared which is actua!! intimation to the part that
her account has been debited. )ut if the amount paid is in cash& then cash is debited which is
actua!! cashier<s stamp. 'egard!ess whether the account is debited or cash is debited the
account heads of Centra! :"cise dut and (a!es $a" are credited.
OPENIN4 OF AN IN&IVI&UAL A((OUNT
Fo!!owing are the re?uirements for opening of an indi#idua! account.
1. 1 photocop of Gationa! Identit card.
,. Fi!!ed 1ccount Opening Form
-. $hree photographs if the person is not ab!e to sign.
OPENIN4 OF @OINT A((OUNT
Muhammad Ibrar
M.Com (Finance)
12
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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Email: yusha143@gmail.com
For this account in addition to abo#e said documents nationa! I. card of a!! the
account opening parties is re?uired. 1!so in the bo" of specia! instruction it shou!d be c!ear!
mentioned that one person<s signatures wi!! be enough to get it honored the check or there
shou!d be signatures of a!! the parties.
OPENIN4 OF A PARTNERSHIP A((OUNT
1!ong with the other document& Dpartnership deedE is a!so re?uired. 1 partnership deed is a
document that shows the nature of the business that wi!! be carried out b the partners&
number of the partners& their share. 9ho wi!! run the business& what wi!! be the profit and
!oss sharing ratio& what wi!! be the initia! in#estment of each partner& who wi!! be the !imited
partner and who wi!! maintain the account with the bank. 1ccording to bank point of #iew
the most important thing is the person<s name who wi!! maintain the account with bank.
Gationa! identit card of the person who wi!! maintain the account is re?uired.
OPENIN4 OF AN A((OUNT OF A SOLE PROPRIETORSHIP
A((OUNT
1!ong with the other documents& so!e proprietorship dec!aration is a!so must. In this
dec!aration the proprietor of the concern wi!! dec!are that he is the so!e proprietor of the
concern.
OPENIN4 OF AN A((OUNT OF A PRIVATE LT&. (OMPANY
If someone is interested in opening an account of a pri#ate !imited compan then in addition
to abo#e documents fo!!owing documents are re?uired.
BIRTH OF UBL7
Muhammad Ibrar
M.Com (Finance)
16
Yusha
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Email: yusha143@gmail.com
Yusha
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Yusha
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On Go#ember 3& 13/3& %)* was notified and inc!uded as a pri#ate schedu!e bank with
authori7ed capita! of 's. ,4 mi!!ionJ issued and paid up capita! of 's. 14 mi!!ion di#ided into
1 mi!!ion shares of 's. 14> each. Current! )O. and president> C:O Mr. 1mar Fafar Ahan
being a member of this new! formed set up manage %)*. Chairman 5is 5ighness (haikh
Gahaan Mabarak 1! Gahaan and .eput Chairman (ir Mohammed 1nwar Per#e7 are the
two supreme contro!!ers of the bank<s affairs.
NUMBER OF BRAN(HS7
%)* has a !arge network of branches& which e"tends to the remotest areas of the
countr. In .ecember 136-& there were 10,- branches whereas in 1324 it had on! 1,-6
branches and in October ,443 these figures show tota! number of 111, branches
-
.
%)* has been #er acti#e in increasing its o#erseas branches network. $he first
foreign branches were estab!ished in *ondon in 130-. Gow %)* has branches in )ahrain&
8atar& (audi 1rabia& %nited 1rab :mirates& Kemen 1rab 'epub!ic& %A (wit7er!and& :gpt&
Oman and $he %nited (tates. $hese branches are p!aing a significant ro!e in channe!ing
home remittances and foreign trade of Pakistan.
SUBSI&IARIES7
%)* has four subsidiaries& name!@
%nited Gationa! )ank *imited (%G))& %A
%nited )ank 1H (Furich)& (wit7er!and
%nited :"ecuters and trustees Compan *imited
%nited )ank Financia! (er#ices (Pri#ate) *imited
FUN(TIONS OF UBL7
-4
Muhammad Ibrar& (,414) Internship 'eport On %)* Chuna 9a!a )ranch 5asi! Pur
Muhammad Ibrar
M.Com (Finance)
13
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
%)* is a commercia! bank& which transacts the business of banking in accordance with the
pro#isions of )CO& 130,. (ection 2 of the 1ct authori7es banks to engage in the prescribed
form of business. In the !ight of this section %)*<s functions can be categori7ed as under@
1genc ser#ices
Henera! %ti!it (er#ices
%nderwriting of !oans raised b the Ho#ernment or pub!ic bodies and trading b
corporations etc.
Pro#iding specia!i7ed ser#ices to customers& and
5a==+re!ated ser#ices.
ROLE OF UBL BAN'IN4 SE(TOR7
$he impressi#e growth and de#e!opment& which %)* achie#e& present it undoubted! the
most dnamic and progressi#e. In a #er shorter period of time it became one of the !eading
banks o#ertaking se#era! other o!der and its competitor banks
4
. $he ma=or contributions
/
the
bank ahs made are en!isted be!ow@
'ecord setting performance and commitment to ser#e the customers
Persona!i7ed ser#ice and dnamic approach
Cata!st of changes
Professiona! management
Modern banking po!ic
5uman resource de#e!opment
(ma!! !oans (or) micro credits
4
Muhammad Ibrar& (,414) Internship 'eport On %)* Chuna 9a!a )ranch 5asi! Pur
/
Muhammad Ibrar
M.Com (Finance)
,4
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Pacesetter in economic research estab!ished in 1302& department for economic
research.
%ti!it bi!!s co!!ection
Credit cards (unicard+1324)
$ra#e!ers Che?ues (5umarah+1321)
(OMPUTERIBATION OF UBL7
%)* has taken !eading start in the introduction of computers in (1300+1306) in important
cities. Its three computers centers 'awa!pindi& *ahore and Aarachi are e?uipped with the
modern mainframe computers of #arious capacities. :#er branch has been decorated with
microcomputers.
$he use of computers has enab!ed the bank to sa#e time and efforts raise efficienc
and de!i#er the goods speedi! to its customers. $his has a!so a!!owed the bank to maintain its
!eadership within the industr.
UBL C On :ine S"stem
7
7
$hemes of this ser#ice is D1ccess an time& anwhere& an de#iceE which smbo!i7es
comfort& con#ince and connecti#it. %)+On!ine a web based ser#ice that can be accessed
through mu!tip!e media !ink !ike& (i) PC #ia internet (44) Mobi!e phone with 91P or free
(M() (iii) Persona! .igita! (i#) assistants and (#) P!ain te!ephone
o 1ccounts statement ; e!ectronic data interchange
o Hraphica! ana!sis
o 1!erts ser#ice >faci!it& search faci!it and acti#it !ong
Mone" 4#m ;8i:it"7
24
Muhammad Ibrar& (,414) Internship 'eport On %)* Chuna 9a!a )ranch 5asi! Pur
Muhammad Ibrar
M.Com (Finance)
,1
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
$he bank has recent! emp!oed mone gram ser#ice sstem& which can affect mone
transfers within minutes. (imi!ar! the sstem used for !oca! transfer of mone transactions is
ca!!ed uni+remote.
HDD se#9i8e7
Aeeping to its tradition is august 136, pro#ided e!ectronic faci!it at its 5a== booth
and has insta!!ed now modern computers at designated branches (5a=is) and increasing
efficienc. $his faci!it has reduced the ser#ice time to !ess than si" minutes per 5a=i
compare to about ha!f+an+hour to 4/ minutes per 5a=i ear!ier.
Muhammad Ibrar
M.Com (Finance)
,,
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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Email: yusha143@gmail.com
MANA4EMENT OF UBL7
(!#t +.* Senio# Mn<ement o; UBL
Muhammad Ibrar
M.Com (Finance)
,-
(heikh Gahan Mabarak
Gahaan chairman
(ir Mohammad 1nwar
Per#e7 .eput Chairman
1mar Fafar Ahan
President
M.1 Manna
.eput C:O
Gauman 5ussain
.irector Operations ;
%ti!ities
Mansoor M. Ahan
5ead Corporate )anking
Hroup
(haharar 1hmed
5ead In#estment )anking
group
(hahid 9a?ar Mehmood
5ead Commercia! bank
'isha Moheuddin
H!oba! $reasurer
Aha!id Munawar+ud+din
5ead Credit Po!ic
(uper#ision
Muhammad :=a7uddin
1udit Chief
Mehboob 1.Ahan
1man 17i7 (iddi?ue

5ead Internationa!
Operations (.ubai)
'ukhasana 1sghar
H!oba! 5ead 5uman
'esources
1!i sameer
Chief (1M (domestic)
1meer Aarachiwa!a
Chief financia! Office>5C1
Yusha
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Yusha
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Yusha
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FUN(TION HIERAR(HY7
O#<niEtion: Hie##8!" o; UBL
(HAPTER NO..
Muhammad Ibrar
M.Com (Finance)
,4
Chairman
.eput Chairman
)oard of .irectors
:"ecuti#e Committee
Managing .irector
(:IP
:IP
IP
Officer Hrade+I
Gon C!erica!
(taff
C!erica! (taff
Officer
Hrade+II
Officer
Hrade+III
Yusha
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Yusha
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Yusha
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&EPOSITE &EPARTEMNT
1s per the definition of D)ankingE under see /(b) of )CO 133, one of the main functions of
a bank is to accept deposit. .eposits are the backbone of an bankJ other functions of the
bank primari! depend upon the tpe and si7e of deposits.
Fun8tion )e#;umed b" 8s! nd de)osit de)#tment in UBL(!un W: B#n8!
Chuna 9a!a )ranch accepts deposits under the fo!!owing three accounts.
i. Current account
ii. P*( (a#ing account
iii. $erms .eposits
O)enin< o; A88ount7
$o open an account in %)* the customer wi!! ha#e to fi!! an account opening form in front of
bank officer. 5e has to sign in a!! re?uired p!aces in front of the officer.
&o8uments ReAui#ed in A88ount O)enin<7
i. G.I.C Cop.
ii. 1ccount opening form (pro#ided b bank)
iii. $wo photograph (in case of i!!iterate person)
i#. (pecimen (ignature card (Pro#ided ) )ank)
#. Che?ue 'e?uisition Form
#i. Introduction of 1ccount.
T")es o; A88ount7
. Indi9idu: A88ount
In this account a sing!e customer operates the account. $he banker wi!! run the
account according to the ru!es& but if the customer gi#es specia! instructions the )ank wi!!
ha#e to fo!!ow it.
Muhammad Ibrar
M.Com (Finance)
,/
Yusha
Cell: 03013335005
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Yusha
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Yusha
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b. @oint 88ount7
In this tpe of account two or more than two persons wi!! open the account. $he
account wi!! be operated b one account ho!der in case of (either of the sur#i#a!). If the
instructions are not gi#en& a!! the account ho!ders wi!! ha#e to sign the check.
NATURE OF A((OUNTS IN UBL NOWSHEREA
A% (u##ent A88ount7
$hese are non+profitab!e demand accounts. $he account can be opened with minimum
amount of rupees 1444>+. $hese account are usua!! maintained for business purpose. .ue to
enormous competition %)* has introduced dai! profit current account for corporate c!ients
ca!!ed (%GI(:I:') minimum ba!ance re?uired is 's. 144&444>+. If minimum ba!ance
re?uirement is not met& bank is authori7ed to reco#er predetermined charges.
B% PLS S9in< A88ount
$hese accounts were intended with the aim of encouraging thrift among peop!e. $hese
accounts can be opened either in Pakistani rupees or in few ma=or currencies of the wor!d.
)ank offers (4C+ 0C) return on these accounts. $he basic feature is the profit and !oss
sharing as according to non+interest based banking sstem. $hese accounts can be opened in
the name ofJ indi#idua!s& =oint names& trust accounts& charitab!e organi7ations.
%n!ike current accounts& Fakat is app!icab!e on !oca! currenc sa#ing accounts. Minor<s
accounts can be opened on the condition that their guardians sha!! operate these accounts.
(% Te#m &e)osits7
$erm deposits are a!so ca!!ed fi"ed deposits. $hese can be with drawn after a specified period
of time. Interest is paid to the depositor on a!! fi"ed or term deposits. $he rate of return #aries
with the duration for which the amount is kept with bank
$here are two tpes of term deposits.
Muhammad Ibrar
M.Com (Finance)
,0
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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Yusha
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ST&R?S F S)e8i: Te#m &e)osit Re8ei)t $:o8: 8u##en8"%7
(pecia! $erm .eposit 'eceipts are issued for different periods of maturit ranging from
one month to / ears& ha#ing attracti#e returns. $here is no !imit on denominations.
,.+.,.+ NT&R?s F Noti8e Te#m &e)osit Re8ei)t $:o8: 8u##en8"%7
$hese are term deposit with specia! features that these can be withdrawn an time but
after gi#ing a predetermined and pre agreed ear! notice.

REMITAN(ES &EPARTEMNT7
Current business trends demand fast mo#ement from one geo+graphic end to another. *atest
techno!og and te!ecom data transmission has made it possib!e to make such transactions
with in minutes. %)* Chuna 9a!a 'emittances .epartment performs fo!!owing functions.
&emnd d#;t $&.&%
... is a negotiab!e instrument issued b branch of the bank drawn on other branch of the
same bank.
A% P#o8edu#e Fo# &.&.7
Purchaser is asked to fi!! in an app!ication form du! singed b app!icant. $hree things shou!d
be maintained in the form.
Game of Paee
P!ace of pament
1mount of ...
Commission is charged on ... as bank income. $he app!icant is asked to deposit the cash
specified on the app!ication form to the te!!er. 1fter depositing cash the remittances incharge
prepare a .... $hat is singed b two officers must ha#ing power of attorne.
)ank a!so pro#ides this faci!it to genera! pub!ic who don<t ha#e account in %)*. $he wi!!
ha#e to submit a G.I.C cop a!ong with ... app!ication form.
Muhammad Ibrar
M.Com (Finance)
,2
Yusha
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Yusha
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Yusha
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Te:e<#)!i8 t#ns;e# $T.T%7
$ransfer of funds to another branch of the same bank with the he!p of test numbers. If the test
number agrees the bank make pament to the part.
A% P#o8edu#e ;o# T.T7
$he procedure for $.$ is same as .... )ut in ... it is gi#en on a printed+paper and singed
b two officers but& in $.$& on! test number is gi#en to the customer.
Mi: T#ns;e# $MT%
9hen the mone is not re?uired immediate!& the remittances can a!so be made b M$. 5ere
the se!!ing officer of the bank sends instructions in writing b mai! to the paing bank for the
pament of a specified amount of mone. $he pament under transfer is made b debiting
the buer<s account at the sending office and crediting it the recipient<s account at the paing
bank. %)* takes mai! charges from the app!icant where no e"cise dut is charged.
P" O#de#s7
Pa order is banker che?ue issued fa#oring a named beneficiar. $he issuance bank is
discharged b pament in due course. 1pp!ication for the PO stamped and the customer<s
account ba!ance is checked or cash recei#ed for the amount PO and other charges. Pa Order
!eaf is tped and crossed if re?uired and signed b two authori7ed persons. $hereafter it is
de!i#ered to the customer. PO can be cance!!ed at origina! purchaser<s re?uest in writing and
surrender the instrument& which then marked cance!ed a!ong with other documents and prior
entries.
Su))e# T#9e:e# (!eAues7
%)* has !aunched '.$.C )rand named D5amrahE in Go#ember 1330. $hese are issued to
app!icants with #aried denominations without e"cise dut and commission. 9hen issued 5O
account is credited and on encashment the same account is debited. '$C<s !ost cases are
communicated to 5O and c!ient is either repaid or new '$C<s are issued to him>her.
Muhammad Ibrar
M.Com (Finance)
,6
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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Email: yusha143@gmail.com
Yusha
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(RE&IT &EPARTMENT OF UBL
UBL (#edit Po:i8"7
Credits operations are undertaken in accordance to bank<s credit po!ic. $he po!ic strict!
prohibits #io!ation of ()P>*oca! centra! bank<s ru!es and suggest financing of se!f
!i?uidating& cash f!ow supported and we!! co!!atera!i7ed transactions& which e?uate the
princip!e of !ending (safet& !i?uidit& dispersa!& remunerations and suitabi!it).
(RE&IT &EPARTMENT OF UBL (!un W:
Faci!ities offered b %)* Chuna 9a!a
'unning Finance (for one ear)
.emand Finance (-to / ears)
P#o8edu#e ;o# Finn8in< ;#om UBL
9hen a part comes for financing& banker wi!! ask the fo!!owing ?uestions.
Pu#)ose7
In this the part mentions the purposeJ the want to app! for the finances. Go !ending is
done with out purpose.
Business
$he part must ha#e some specific running business i.e. genera! merchandise& construction
business etc.
$he second ?uestion arises of the cash f!ow that how much f!ow is generated b the part
from the current business.
Se8u#it"7
$he bank wi!! secure itse!f against the !ending. $here can be two tpe of securit.
Commercia!
'esidentia!
Muhammad Ibrar
M.Com (Finance)
,3
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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$he bank prefers commercia! securit. 'e!ationship Manager ('M) is main! responsib!e for
the re!ationship between the bank and part. 5e acts !ike a bridge between the two.
In the first instance the part wou!d prepare the fo!!owing propert documents.
1A( (ha=arah
Ga?sha $as#eeri
1ppro#ed )ui!ding P!an
$resh fard
Inta?a! Ga?a!
$he part is asked to contact an #a!uator on the pane! of %)*. ICM;* and $a=ak )ui!der
are on the pane! of %)* Chuna 9a!a. $he #a!uator wi!! #isit the site and set market #a!ue
and F(I of the said propert. 5e prepare report of at !east three pages. $hese document sent
for one page !ega! opinion to an !aer on the pane! of %)*. 5a#ing c!ear !ega! opinion 'M
start preparing credit 1ppro#a! (C1). $he documents are singed b the 'M ; 1M and then
forwarded to %)* '58 in Peshawar. 5ere ('M e"amines the C1 if he found some
e"ception he wi!! send it back to the respecti#e 'm.
'M rectifies the acceptation and send it back to ('M. ('M studied and pass it to credit
officer. 5e has three hours of time to stud the C1 and if found correct then he pass it to
another credit officer. 1fter his e"amination the C1 is passed on to the credit risk manager.
5e checks the C1 and after signing it sent to C1.. 5e forwards the C1 to (CO. 9hose
office is at %)* '%CO at *ahore& after his signature the C.1 is sent back to 'C1..
'C1. make a check !ess !ist and asked the 'M to contact the part to comp!ete the said
documents the are.
*etter of continuit
Persona! Huarantee
*etter of hpothecation of stock
..P Gote
Mortgage .eed
GIC of e"ecutants and witness
Muhammad Ibrar
M.Com (Finance)
-4
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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Yusha
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(tock report
Insurance po!ic
Part profi!e
1fter comp!etion of charge document 'M send it to 'C1. when the found it correct& the
issues .1C. 1 cop of .1C is sent to 'M and GICF account is opened and debit transaction
starts.
(LEARIN4 OF BILLS7
4ene#:7
)ank can make paments of on! open Che?ues on the counter pament. Pament of cross
Che?ues cannot be made on counter its pament is possib!e through co!!ecting bankers. $he
functions of c!earing department are di#ided into two main c!asses.
Inter )ranch $ransaction
Inter )ank $ransaction
P#o8edu#e o; (:e#n8e o; (#oss $(!eAues%7
9hene#er bank recei#es a Che?ue of other bank from the c!ient he cannot make pament on
the counter. $he first =ob banker has to perform is to put a specia! crossing across the face of
che?ue. ) specia! crossing che?ue is secured. If it is sto!en the paing banker wou!d not
suffer because of non+endorsement. On the back of the che?ue the stamp is made of paee
account wi!! b credited on rea!i7ation. It is signed b authori7ed person. 1!ong with the
cross che?ue the customer has to fi!! the deposit s!ip. $he ha!f part of s!ip is gi#en back to the
customer. after the specia! crossing and is necessar endorsement the banker write the
amount a!ong with che?ue number on paper and attach with each s!ip. $hen again on he
smi!e paper the amount of a!! the Che?ues a!ong with the bank names are added and attached
to che?ue presented for c!earing& and ad#ice is a!so attached with the che?ue presented for
c!earing. $he fo!!owing entr is passed on sending the che?ue for c!earing.
)i!! !odged for c!earing LL. .r
Muhammad Ibrar
M.Com (Finance)
-1
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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Yusha
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)i!! for co!!ection LLL. Cr
$he Che?ues are sent on the same da for c!earing. $he bank recei#es it on other da. $he
paing bank recei#es the receipt and the amount is credited in the respecti#e account. $he
paing banker passed the fo!!owing.
)i!! for rea!i7ation. LL. .r
)i!! !odged. LLL. Cr
$he other entr passed its .r. 58 account and Cr Part account.
I B (7
It means DInter )ranch $ransactionE when %)* recei#ed a Che?ue a drawn on the customers
of his branchJ first the wi!! Che?ue the amount in the account on which Che?ue is drawn. Of
the re?uired amount is a#ai!ab!e in the account the wi!! match the signature on the Che?ue
a!ong with their (( card. If a!! the re?uirement are comp!eted the bank wi!! send an I)C1 to
the bank from which Che?ue is sent
L B (7
*)C means !oca! branch Che?ues recei#ed for co!!ection. %)* Chuna 9a!a& recei#ed
Che?ues from their spoke braches as we!! as from other %)* branches of the countr& drawn
of an other bank in Chuna 9a!a. $he send the Che?ue to responding bank and after
c!earing the Che?ue through c!earing houses (which is G)P) in Chuna 9a!a. $he send *)C
ad#ised to the bank from which the Che?ue was recei#ed. $he fo!!owing entr is passed after
sending *)C1.
G)P a>c LLL. .r
5o a>cLLL. Cr
Muhammad Ibrar
M.Com (Finance)
-,
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
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OB(
9hen the bank recei#es the Che?ue from its customer or from an other spoke branch drawn
on an other bank of an other cit. $he sent the Che?ue to the %)* main branch of that
cit& after recei#ing O)C1 the bank wi!! passed the fo!!owing entr. In case of his own
customers.
5o a>cLLL. .r
Customer a>cLLL. Cr
In case of spoke branch
5o a>cLLL. .r
(poke )ranch a>cLLL. Cr
(HAPTER NO./
INTRO&U(TION
$hese section efforts ha#e been made to co#er a!! re!e#ant aspects of the financia!
performance of %)*. O#ertime comparison and Common (i7e ana!sis are carried out with
Muhammad Ibrar
M.Com (Finance)
--
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
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Yusha
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the #iew to e"tract concrete conc!usion to describe financia! standing and performance of the
bank.
SI4NIFI(ANT A((OUNTIN4 POLI(IES
Re9enue Re8o<nition
'eturns on ad#ances and in#estments are recorded on accrua! basis. .ebts securities
purchased at premium or discount are amorti7ed o#er their maturit periods.
.i#idend income is recogni7ed on accrua! basis of dec!aration of di#idend up to the ear+end.
'eturns on c!assified assets are recorded on receipt basis. ccrua! basis.
Ad9n8es
$hese items are stated net of pro#isions against non+performing !oans as per ()P P' M IIII.
In9estments7
%)* c!assif its in#estments as stated be!owJ
a) 5e!d for trading
b) 5e!d to maturit
c) 1#ai!ab!e for sa!e+other than the abo#e two tpes
In the !ight ()P regu!ations ?uoted securities are shown at market #a!ues and an changes
arising are taken to profit and !oss account on! upon actua! rea!i7ation.
%n?uoted securities are #a!ued at the !ower of cost and break up #a!ue and difference is
charged to income. Pro#isions for diminution in the #a!ues are made after permanent
impairment& if an.
Fi5ed Assets nd &e)#e8ition
. O=ned
(uch assets are showed at their cost or re#a!ued amount !ess accumu!ated
depreciation and impairment !oss& if an. Go depreciation is charged on freeho!d !and.
.uring the ear& amendment re!ated to section ,-/ of the Companies Ordinance 1364&
Muhammad Ibrar
M.Com (Finance)
-4
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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Yusha
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surp!us on re#a!uation can now be re#ersed to the e"tent of incrementa! depreciation
charged. 1s a resu!t such differentia!s are now transferred to retained
earnings>accumu!ated !osses as per the (ecurities and :"change Commission of
Pakistan<s ((:CP) c!arifications.
Hains and !osses on sa!e of fi"ed assets are inc!uded in income current!& e"cept that
the re!ated surp!us on re#a!uation of fi"ed assets is transferred direct! to retained
earnings>accumu!ated !osses.
b. Lesed
1ssets under financia! !eases are stated at cost. $he outstanding ob!igations are shown as
a !iabi!it. $he finance charges are a!!ocated to accounting periods in a manner so as to
pro#ide a constant periodic rate of charge on the outstanding !iabi!it.
T5tion
(u##ent
Pro#ision is based on the ta"ab!e income for the ear or minimum ta" computed on the basis
of turno#er& whiche#er is higher.
&e;e##ed
$he bank accounts for deferred ta"ation on ma=or timing differences& using the !iabi!it
method in respect of those timing differences& which ma re#erse in the foreseeab!e future.
.eferred ta" debits are& howe#er& recogni7ed on! if there is reasonab!e e"pectation of
rea!i7ation of the amount.
8. Fo#ei<n (u##en8ies7
)a!ances are trans!ated into rupees at the app!icab!e rate of e"change pre#ai!ing at the
ba!ance sheet date or where app!icab!e at contractua! rates. .uring ear transactions are
con#erted into Pak rupees app!ing the e"change rate at the date of respecti#e transactions.
Hains and !osses are inc!uded in income current!.
d. &e;e##ed (ost nd Lese P"ments
$hese are amorti7ed o#er a period of fi#e ears. 'enta! ob!igations under operating !eases are
charged to profit and !oss account as incurred.
Muhammad Ibrar
M.Com (Finance)
-/
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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RIS' MANA4EMENT
$he bank is primari! sub=ect to interest rate& credit and currenc risks. $he bank has
designated and imp!emented a frame work of contro!s to identif& monitor and manage these
risks are as fo!!owJ
(u##en8" Ris> Mn<ement
For the purpose of efficient management of this risk& the group enters into read& spot&
forward and swap transactions in the inter bank market and with the (tate )ank of Pakistan
in order to kedge its assets and !iabi!ities and co#er its foreign e"change position.
(#edit Ris> Mn<ement
Out of the tota! assets of 's.16-& 1-3.623M assets sub=ect to credit risk amounted to 's.126J
3/6.-,-M. $he bank<s ma=or credit risk is concentrated in te"ti!e sector. $o manage it the
bank app!ies credit !imits to its customers and obtains co!!atera!s. Credit risk in the portfo!io
is monitored b the C'M who formu!ate appropriated po!icies and procedures to ensure
bui!ding and maintaining ?ua!it credits and efficient credit process.
$he bank<s financia! institution risk management unit assesses& recommends financia!
institutions and a!so contro!s cross border>countr risk.
Inte#est #te Ris> Mn<ement
$he group is main! e"posed to mark up interest rate risk on its deposit !iabi!ities and its
!oans and ad#ances and in#estment portfo!ios. $he asset !iabi!it committee of the bank
re#iews the portfo!io of the bank to ensure that risk is managed within acceptab!e !imits.
Most of the !oans and ad#ances portfo!io comprises of working capita!& which are reprised on
Muhammad Ibrar
M.Com (Finance)
-0
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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Yusha
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a periodica! basis. $he group<s interest is !imited since the ma=orit of customer<s deposits
are retrospecti#e! reprised on a si" month! basis due to the profit and !oss sharing
princip!es.
INVESTMENT PORTFOLIO
%)* emp!os di#ersified in#estment portfo!io. $he bank in#ests its funds both in risk free
assets as we!! as in risk assets. $his enab!es it to minimi7e its unsstematic risk to a great
e"tent.
%)* #a!ues its securit ho!ding on market #a!ue& in accordance with the guide!ines gi#en in
()P circu!ar. 1n unrea!i7ed surp!us>deficit arising on such re#a!uation is taken direct! to
D(urp!us>.eficit on re#a!uation of securitiesE in the ba!ance sheet. 9here an acti#e market is
not a#ai!ab!e& securities continue to be stated at cost. Pro#ision for diminution in the #a!ue of
these securities is made after considering permanent impairment& if an& in their #a!ue.
9here securities are so!d sub=ect to commitment to repurchase them at a predetermined
price& the remain on the ba!ance sheet and a !iabi!it is recorded in respect of the
consideration recei#ed in D)orrowing from )ankE or D.epositsE as appropriate. Con#erse!&
securities purchased under ana!ogous commitments to rese!! are not recogni7ed on the
ba!ance sheet and consideration paid is record in D!ending to financia! institutionsE or D!oans
and ad#ancesE as appropriate.
PROFITABILITY
$he operating profit before pro#isions and write offs increased b 64C& where as the profit
before ta" and e"traordinar items increased b 0,C as compared to !ast ear. $he increase
is main! attributed to 14C increase in the net re#enue from funds (G'FF)& 14C increase in
fee and brokerage income and 2/C reduction inn write offs>pro#isions for non+performing
assets as compared to ear ,446.
Muhammad Ibrar
M.Com (Finance)
-2
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Performing ad#ances increased b 's. , bi!!ion as compared to ,446 whi!e GP1s decreased
b /-C. Present! GP1 constitutes 2.4C as compared to 14.0C in ,446 of the tota! !oan
portfo!io. $he branches reduced to 1422 from 111,. $he bank hand!ed o#er 's. 30 bi!!ion of
import and e"port business during the ear& an increase of ,4.2C as compared to !ast ear.
FINAN(IAL ANALYSIS
Financia! statements are the principa! means of reporting the financia! condition and resu!ts
of operations of a business entit. $hese statements are meant to assist #arious parties in
decision making who are interested in the acti#ities of the business. $hese statements are
means to an end of he!ping stakeho!ders in decision+making. $o impro#e the ?ua!it of
decision making proper ana!sis of these statements he!ps a !ot. Financia! statements ana!sis
he!ps in determining the financia! conditions at an particu!ar points in time and
effecti#eness of operations of a firm during a specific period.
$he #arious stakeho!ders of business are interested in the ana!sis of financia!s statements.
)ut the focus of interest of a!! is not the same. For e"amp!e& creditors and credit reporting
agencies are interested in finding out the credit worthiness of the firm to which the ha#e
e"tended credit or intend to e"tend credit. (hort term creditors are interested in short term
!i?uidit of the business and !ong term creditors are interested in the !ong term cash f!ow
which the firm can generate o#er the !ong period of time. In#estors are interested in the
firm<s abi!it to sustain profitabi!it o#er a period of time. Ho#ernment agencies ana!7e
financia! data for ta" purposes. $he interna! users of financia! statements !ike management
a!so ana!7e financia! data for p!anning and contro!.
(OMMON SIBE ANALYSIS OF BALAN(E SHEET
Common si7e ana!sis is an ana!sis of financia! statements where the tota! assets di#ide a!!
ba!ance sheet items of asset side and a!! credit side ba!ances di#ided b a!! !iabi!it items& and
a!! income statement items are di#ided b net sa!es>re#enues. Common si7e ana!ses are
Muhammad Ibrar
M.Com (Finance)
-6
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
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e"treme! he!pfu! to high!ight changes o#er the time in financia! performance and financia!
conditions of the compan. $he tab!e shows common si7e ana!sis of the ba!ance sheets for
the ears ,442& ,446 ; ,443.
$he common si7e ana!sis gi#en in the tab!e shows that there ha#e been impro#ements in the
current assets in ,443 as compared to ,446& about 12C. )ut there has been decrease in fi"ed
assets of about 10C. $he main reason for this change is increase in short term in#estment
showing a constant increase as a percentage to tota! assets. $his imp!ies that the bank is
concentrating now more on non+interest income and the interest rates are constant! fa!!ing.
(hort+term ad#ances ha#e shown a significant change of 1/C whereas tota! ad#ances show a
tota! change of on! 0.-C. $his is #er significant to note that ma=or decrease has occurred in
!ong+term performing and non+performing ad#ances.
$here is decrease in !ong term assets of about 12C which main! cause the decrease in !ong
term ad#ances which are about 1-C and 0C decrease in !ong term in#estment.
On the !iabi!it side the tota! current !iabi!it has shown change of about 4C. $he main
reason for which is increase in current deposits& which are about 0C. $he !ong+term !iabi!it
of the organi7ation is a!so decreased b 4C.
(ommon siEe n:"sis o; 8onso:idted B:n8e S!eet
Rs in '000 Common size (%)
assets 2007 2008 2009 2007 2008 2009
Cash/Bal. With Banks 3609108 70463707 35591280 21.5 17.93 15.79
lending to F.Is 4370006 3627557 19050791 2.6 1.89 8.45
Investent !"#$ 9190430 33883311 29580252 5.5 17.66 13.12
%dvan&es'(e)*o)ing !"#$ 39489369 43632117 89292490 23.4 22.75 39.61
+the) %ssets 8641263 2641471 3509351 5.1 1.38 1.55
#otal C,))ent %ssets 97782157 118177074 177024164 58 61.61 78.54
Investent !-#$ 19388131 33623058 25007413 11.5 17.53 11.09
%dvan&es'(e)*o)ing !-#$ 28477494 26423058 10312297 16.89 13.77 4.57
%dvan&es'.on /e)*o)ing !-#$ 11813855 5739798 3671991 7.01 2.99 1.62
+/e)ating *i0ed %ssets 2864018 2831534 3884990 1.7 1.48 1.72
1e*e))ed #a0 %ssets 8297500 5026459 5486357 4.92 2.62 2.43
#otal -.# %ssets 70840998 73643958 48363048 42 38.39 21.45
Total Assets 168623155 191821032 225387212 100 100 100
Liabilities
B/(a2a3les 1540592 1847025 2991269 0.91 0.96 1.32
Muhammad Ibrar
M.Com (Finance)
-3
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Bo))o4ings "# 4004130 174533 174533 2.37 0.09 0.07
1e/osits ' C,))ent 102568752 118167469 152580240 60.83 61.6 67.69
-ease and +the)s 8838842 9986608 5933743 5.24 5.2 2.63
#otal C,))ent -ia3ilities 116952316 130175635 161679785 69.36 67.86 71.73
Fi0ed 1e/osits 38747422 43998916 37252204 22.98 22.94 16.52
+the) -ong te) -ia3ilities 21264831 5212755 10883720 6.21 2.72 4.82
#otal -# -ia3ilities 49219400 49211671 48135924 29.19 25.65 21.35
Total Liability 166171716 179387306 209815709 98.55 93.52 93.09
Shareholder's !"ity
"ha)e Ca/ital 22481680 5180000 5180000 13.33 2.7 2.3
5ese)ves 3960453 4258947 4712569 2.35 2.22 2.09
%&&,,lated -osses/()o*its '27282709 '722387 454403 '16.18 '0.38 0.2
6ino)it2 Inte)est 1168264 1271700 1412932 0.69 0.66 0.62
",)/l,s on )eval,ation 2123751 2445466 3811599 1.26 1.27 1.69
Total 24541439 12433726 15571503 1.45 6.48 6.9

(OMMON SIBE ANALYSIS OF IN(OME STATEMENT
$he common si7e ana!sis of income statement is gi#en in the tab!e. 9hich shows that the
%)* has been ab!e to contro! its interest or mark up e"penseN 1s a resu!t of decrease in mark
up e"pense as a percentage of tota! re#enues the gross profit margin has shown a trend of
continuous increase. $he increasing H>P Margin shows efficienc of the bank in contro!!ing
cost of sa!es (Markup e"pense) and better strateg of pricing& products and ser#ices.
$he pro#ision for non+performing !oans has a decreasing trend making no pro#ision for non+
performing !oans and diminution in #a!ue of in#estment& which increases the profit of current
ear. $he reduction in pro#ision is a good sign& which shows that the bank is reco#ering its
disbursed ad#ances. It shows the good credit management of the bank.
Muhammad Ibrar
M.Com (Finance)
44
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
$here is a great increase in non+markup income& which is about ,-C. 1mong its indi#idua!
components in#estment income has shown a !arge increase as a percentage of sa!es.
Gon markup e"penses a!so show a rising trend in abso!ute amount though the common si7e
in percentages has shown a mi"ed trend due to the changes in re#enue figures. $he non+
performing e"panses a!so increased to about ,/C& which is a #er high percentage& but the
other aspect of this is that it increased the efficienc and credit management of the staff.
*ike gross profit the net profit margin before ta" has a!so increased with ,4C rate. $he
e"traordinar item e"panse has not occurred in ,443 that caused a s!ight increase in the net
income. $he ta" e"panse is increased about 2C because of the increase in profit. *oss
brought forward from pre#ious ear is reduced b 14C.
$he common si7e ana!sis of the %)* is c!ear! showing that the bank has shown a !ot of
impro#ement in its performance. $he organi7ation shows profit for the first time in the !ast /
ears which is a positi#e sign and it wi!! bui!d up the mora! of the emp!oees b which the
can work more effecti#e! and efficient! increasing the performance of the bank.
(ommon siEe n:"sis o; 8onso:idted In8ome Sttement
Rs in #illions Common size (%)
$T#S 2007 2008 2009 2007 2008 2009
6a)k ,/ )even,e 11468 11385 9269 100 100 100
a)k ,/ e0/ense 6347 5476 1931 55.35 48.09 20.83
g)oss /)o*it 5121 5909 7338 44.65 51.9 79.89
/)ovisions and B/1e3ts 1263 746 564 11.02 6.55 6.08
.et 6a)k ,/ In&oe 3858 5163 6773 33.64 45.34 73.07
.on 6a)k ,/ 5et,)n
Coission 7 B)oke)age 1097 2008 2142 9.57 17.63 23.1
1ividends/80&hange and +the)s 1818 1514 2803 15.85 13.3 30.24
#otal .on 6a)k ,/ In&oe 2915 3522 4945 25.42 30.94 53.34
#otal In&oe 6773 8686 11718 59 76.2 126.42
.on 6a)k 9/ 80/ense
%dinist)ative 4669 5879 6639 40.71 51.64 71.62
+the) ()ovision and Cha)ges 632 51 556 5.15 0.44 6
Muhammad Ibrar
M.Com (Finance)
41
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
#otal non a)k ,/ 80/enses 5301 5930 7197 46.22 52.08 77.64
()o*it Be*o)e 80t)ao)dina)2 Ites 1472 2756 4521 12.84 24.2 48.77
80t)ao)dina)2 Ites '7200 25 0 62.78 0.21
()o*its 3e*o)e ta0 '5728 2781 4521 49.95 24.44 48.77
#a0ation 1739 1319 1704 15.16 11.59 18.38
()o*it/-oss a*te) ta0 '7467 1462 2818 65.11 12.84 30.39
"ha)e o* 6ino)it2 Inte)est 6 10 21 0.06 0.09 0.22
%&&,,lated -oss B)o,ght F)d. 19821 27283 722 172.2 210.64 7.78
%d:,stent against sh. Ca/ital 0 25202 0 221.36 0
%//)o/)iation and #)ans*e)s
",)/l,s on )eval,ation o* %ssets 0 238 0 2.1 0
#)ans*e) to "tat,to)2 5ese)ve 2 332 527 0.02 2.91 5.68
%&&,,lated -oss B)o,ght F)d. 27283 722 454 237.9 16.34 4.9
FINAN(IAL RATIO ANALYSIS
$he user of financia! statements finds it he!pfu! to ca!cu!ate ratios when the interpret
compan<s financia! statements. 1 financia! ratio is simp! one ?uantit di#ided b another.
'atios focus on specia! re!ationship between two items of ba!ance sheet& income statement or
one from each. 'atios make it easier to understand a specific re!ationship between #arious
items of financia! statements then !ooking simp! at the raw numbers themse!#es. $he
number of financia! ratios that might be created is #irtua!! !imit!ess& but there are certain
basic ratios that are fre?uent! used& these ratios can be p!aced into si" different c!asses.
*i?uidit 'atio
1sset $urno#er 'atio
*e#erage 'atios
Co#erage 'atios
Profitabi!it 'atios
Market Ia!ue 'atios
$he ca!cu!ation and interpretation of these ratios of financia! statements of %)* are as
fo!!ows.
Muhammad Ibrar
M.Com (Finance)
4,
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Finn8i: Rtio n:"sis
%ARS 2007 2008 2009&'R#(LA
C,))ent 5atio 0.84 0.91 1.15C,))ent %ssets / C,))ent -ia3ilities
%sset #,)nove) 0.07 0.06 0.046a)k,/ 5even,e / #otal %ssets
1e3t to %sset 0.99 0.94 0.93#otal 1e3t / #otal %ssets
1e3t to 8;,it2 14.54 14.4 13.47#otal 8;,it2 / #otal %ssets
Cove)age 5atio 0.1 1.15 3.348BI# / Inte)est 80/ense
<)oss ()o*it 6a)gin 44.65= 52.50= 79=<)oss ()o*it / 5even,e > 100
.et ()o*it 6a)gin '65.12= 12.69= 30=.et ()o*it / 5even,e > 100
5et,)n +n Investent '4.43= 0.76= 1.24=.et ()o*it / #otal %ssets > 100
5et,)n +n 8;,it2 '887.99= 16.78= 18=.et ()o*it / #otal 8;,it2 > 100
%dvan&es to 1e/osit 56.46= 46.74= 45=%dvan&es / 1e/osits > 100
Investent to 1e/osit 20.22= 41.63= 28=Investent / 1e/osits > 100
Cash 5atio 9.59= 9.23= 28=Cash / C,))ent -ia3ilities > 100
(URRENT RATIO7
%)*<s current ratio is increasing o#er the time. 5igher the current ratio higher the abi!it to
meet the short+term ob!igations as the come due. $he %)*<s current ratio is increased b
4.16C as compared to ,446. this in turn decreases the risk of inso!#enc. $he change is
occurring due to increase in short term in#estment and decrease in short term borrowings.
ASSETS TURNOVER @
$his shows re#enue generated per rupee in#estment in tota! assets. %)*<s assets turno#er
ratio has shown a !itt!e decrease. $his is because of increase in tota! assets with proportionate
increase in re#enue. )anks ha#e re!ati#e! !ow 1$' capita!& as the are se!ecti#e in
ad#ancing !oans and generating sma!!er sa!es.
&EBT TO ASSET RATIO7
$he ana!sis of tota! debt to assets ratio& there has been decrease of one percent as compared
to ,446 and 0C to ,442. In ,442 e#er rupee one of assets was being financed b rupees
4.436 or debt and in ,446 it is 4.34 whi!e in ,443 it is reduced to 4.3- worth of debt per
Muhammad Ibrar
M.Com (Finance)
4-
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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rupee of asset. 1!though the decrease is not !arge enough but it is a good sign for bank<s
creditors. $he decrease ma be attributed to the substantia! decrease in borrowings from
financia! institutions but the affect was weakened b an increase in bi!!s paab!e and other
!iabi!ities.
&EBT TO EGUITY7
$his ratio measures how the compan is !e#eraging its debt against the capita! emp!oed b
its shareho!ders. 1na!sis of debt to e?uit ratio indicates that the current position for the
debt to e?uit is that for e#er one rupee in e?uit pro#ided b the shareho!ders the bank has
's. 1-./ as a debt. $his shows that the bank is hea#i! re!ing on debt financing. $he reason
for huge difference stated in the tab!e is because of !osses occurred in ,442 and ,446.
(OVERA4E RATIO7
$his ratio shows the number of times a compan can co#er or meet its financia! charges or
ob!igations. One of the most common! used ratios is the interest co#erage ratio that
measures the number of times the income is a#ai!ab!e to pa interest charges. $he %)*
interest co#erage ratio has shown significant impro#ement in these three ears. $he ratio is
increased from 4.14 to -.-4.
4ROSS PROFIT MAR4IN7
Hross profit margin is the difference between the re#enue and cost of goods so!d. Hross
profit is critica! because it represents the amount of mone remaining to pa operating
e"panses financing cost and ta"es. %)*<s gross profit margin per rupee has shown rising
Muhammad Ibrar
M.Com (Finance)
44
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
trend in !ast three ears. $here is an increase of ,2C in ,443 as compared to ,446. this shows
efficienc of the bank to contro! the cost of sa!es.
NET PROFIT MAR4IN7
$his ratio shows the profit that is a#ai!ab!e from each rupee of the sa!e. 1fter a!! e"panses
ha#e been paid. Get profit margin is a!so showing an increasing trend. %)* has impro#ed net
profit margin in the current ears. $he net profit margin has reached to -4C as compared to
,446 in which it was on! 1,.03C. 9hi!e in ,442 it was in negati#e figure. It shows a good
impact on the %)*<s )a!ance (heet.
RETURN ON INVESTMENT7
$his ratio measures the profitabi!it per rupee of in#estment in assets. %)*<s return on
in#estment has shown an impro#ement more than 144C. In ,443 the ratio is 1.,4C whi!e in
,446 it was 4.20C and in ,442 it was in Mi#e figures. 1!though the assets ha#e increased but
the operationa! reco#er of the bank is main cause of increasing this ratio.
RETURN ON EGUITY7
$his ratio shows the profit as a proportion of the book #a!ue of the common shareho!ders.
$he return on e?uit is a!so shown a great dea! of positi#e change. In ,443 the ratio is 4/C
whi!e in ,446 it was on! 10C and in ,442it was in negati#e figures.
A&VAN(ES TO &EPOSIT RATIO7
$his ratio shows the companies ad#ances emp!oed per unit of deposit. $his ratio of %)*
o#er the recent three ears shows a decreasing trend. In ,442 it was /0C whi!e in ,446 it was
40C and in ,443 it is 4/C.
INVESTS TO &EPOSIT7
Muhammad Ibrar
M.Com (Finance)
4/
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
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$his ratio shows the compan<s in#estment emp!oed per unit of deposit. $his ratio increased
in ,446 as compared to ,442 but in ,443 it again decreased. It is because of industria!
de#e!opment factors in the countr b which !ending has been increased and in#estment is
s!ight! decreased.
(HAPTER NO.0
GUALITATIVE ANALYSIS OF UBL
.uring m two months of internship period I ha#e tried to fu!! commit mse!f in the
!earning process. I kept critica!! obser#ing the things that I cou!d ana!7e and the resu!t of
the e"ercise is presented as be!ow.
A% O#<niEtion:@
:"isting organi7ationa! hierarch hinders #ertica! communication and b!ocks f!ow of
information among the !e#e!s of management.
$he work!oad is not e?ua!! distributed.
Coordination !e#e! among di#isions>departments and emp!oees are poor& particu!ar!
speaking of between the top and !ower !e#e!s of management.
$here is centra!i7ation of authorit and branch managers are bound and restricted to
take initiati#e.
Muhammad Ibrar
M.Com (Finance)
40
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
.ue to o#er!apping nature of duties and =obs there e"ists chaos and confusion in
branches.
B% &e)#tment:@
.uring m internship period in %)*& in #arious departments& I noticed fo!!owing
departmenta! prob!ems.
(s! &e)#tment7
i. Got #er fre?uent! but there are instances of fake currenc notes& being
identified. 1t times notes recei#ed from other branches were found to ha#e certain
fake currenc notes.
ii. Counting mistakes occur due to o#ercrowding particu!ar! during the co!!ection of
uti!it bi!!s. Manua! counting sstem a!so affects efficienc of the bank.
iii. Code of conduct of cashiers is found unsatisfactor.
i#. $here is genera!! the !acking in obser#ing and practicing bank<s re!e#ant
procedures and (OP<s.
Remittn8es &e)#tment@
i. 1pp!ication of tests for authentication of $$s is not known to a! concerned
indi#idua!s that reduces the efficienc and further the wrong app!ication of tests
pre#ent paments and the de!a cou!d dissatisf customers.
ii. $e!egraphic messages re?uire specific ski!!s and training. $he emp!oees are partia!!
e?uipped of such know!edge.
iii. Preparation& e"ecution and management of $$s and M$s and particu!ar! ..s ask for
mastering app!icab!e ru!es and regu!ations and most of the staff was found ignorant of
those.
&e)osit &e)#tment7
i. Gew! designed 1OF has an inbui!t deficienc of restricted space and cannot
accommodate more than two names.
Muhammad Ibrar
M.Com (Finance)
42
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
ii. Identification of customer<s signature is #er important particu!ar! when cash is to
be withdrawn b him. Manua! practices pose prob!ems in those branches where
automation has not been done et.
iii. In cases where the presence of customer himse!f is must& is sometime compromised
due to inf!uences ofOr fear of !oss of customer.
(:e#in< &e)#tment7
i. 9rong endorsement and stamping causes !oss to the customers and e"tra efforts for
the bank to repeat the procedures.
ii. 'easons for the return of the che?ues at times are not mentioned on the return memos.
iii. 1t times due to !ack of training wrong stamps are app!ied on instruments.
(#edit &e)#tment7
i. $ime!ines in cash disbursement is #er important which is compromised due to
!ength processing and documentation re?uirements.
ii. 'e!ationship Managers need to be fu!! e?uipped with the re?uisite know!edge and
ski!!s as present! p!ain )1>).(c ?ua!ified indi#idua!s are performing =obs of M)1s.
iii. *ack of infrastructure for carring out computeri7ed financia! ana!sis of borrower<s
business.
i#. *arge poo! of potentia! borrowers cannot app! for !oans due to !ack of co!!atera!s.
5ea# co!!atera! re?uirements restrict credit business of the bank.
#. $he credit proposa! and other documents at times are not proper! and sufficient!
prepared before taking appro#a!.
#i. Fi!ing and record maintenance of credit re!ated documents are not done efficient!.
Bi::s &e)#tment7
i. )i!!s are sent to other citiesJ therefore& e"tra care shou!d be e"ercised in making
entries and stamp affi"ing.
Muhammad Ibrar
M.Com (Finance)
46
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
ii. Proper scrutin at times is not carried out and it causes !oss to the bank or increase
procedura! timings.
iii. :mp!oees at times mismanage their time and fai! to forward bi!!s prompt!.
Fo#ei<n E58!n<e &e)#tment7
i. Prob!ems of bi!!s and remittances departments e?ua!! app! to foreign e"change
department. $here is o#er!apping of functions and comp!ete separation of function
has not been achie#ed thus !eading to a state of confusion and conf!ict among
emp!oees.
ii. :mp!oees of this department are !acking computer+operating ski!!s.
iii. Anow!edge and educationa! background of emp!oees working in this department do
not match with the =ob the are doing.
i#. Most of the emp!oees of this department !ack the abi!it to hand!e the *etters of
Credit.
(HAPTER NO.1
SWOT ANALYSIS7
(9O$ is usefu! too! for pro#iding a framework for ana!sis of an organi7ation. (9O$
stands for (trengths& 9eaknesses& Opportunities and $hreats. It is a common approach to
make assessments in terms of interna! and e"terna! en#ironment of the organi7ation& and to
formu!ate strategies ana!7ing its interna! strengths and weaknesses& e"terna! opportunities
and threats& coming up is the (9O$ ana!sis for the %)*.
STREN4THS7
It is one of the !argest pri#ate banks with a deposit base of 's. 3466->+ mi!!ions
showing constant growth o#er the period from 1333 ti!! the da.
Muhammad Ibrar
M.Com (Finance)
43
Yusha
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It has a we!!+knitted and ade?uate! e?uipped branch networking sstem that
efficient! co#ers both the domestic and internationa! markets.
It is in#o!#ed in both corporate and retai! banking.
$he bank is acti#e! emerging and is engaged in internationa! trade and foreign
e"change transactions. Foreign trade #o!ume showed an increase of 12C o#er the
pre#ious ear.
1d#ances in#estment of the bank shows a constant growth pattern. $he current ear<s
growth rate is -,C.
$he bank is owned b parties of financia! repute and credit worthiness !ike& ()P with
46.03C interest& )est 9a group and 1bu .ubai group with ,/./4C of interest each.
Others are HOP& G)P $rustee .epartment& (tate *ife Insurance Corporation etc.
WEA'NESSES7
.ue to risks such as po!itica!& economic and !ega! etc the bank has suffered !osses the
main reason was that of pi!ing up of !arge amount of unreco#erab!e !oans and debts
which has ad#erse! affected the image of the %)*.
1ccumu!ated !osses pushed the bank to cut down its promotiona! acti#ities in order to
reduce e"penses for !ast few ears.
.uring the nationa!i7ation !ife span of the bank po!itica! !ords used inf!uence in bank
business and se!ection of emp!oee at each !e#e! and thus ad#erse! affected the
bank<s efficienc and effecti#eness.
1dministrati#e e"penses are /1C of the mark up re#enue.
Muhammad Ibrar
M.Com (Finance)
/4
Yusha
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Promotions are carried out on annua! basis ignoring the importance of capabi!ities and
performance outputs.
OPPERTUNITIES7
Hrowing po!icies of the HOP on business and economic sectors pro#ide %)* an
opportunit to efficient! meet with the business peop!e re?uirements of instant cash
faci!ities e.g. the go#ernment intentions of de#e!oping housing and agricu!ture
sectors.
Ho#ernment is taking #er bo!d steps to promote I$ in Pakistan %)* has an
opportunit to impro#e in I$ stock e"change is #er #o!ati!e and takes immediate
effect so in times of crises conser#ati#e in#estors turns to sa#ing deposits.
%)* is surrounded b man competitors it has an opportunit to aggressi#e
marketing to increase its business.
Increase the product range to meet the broader range of customers< needs.
THREATS7
$hreats are a!so e"terna! factors in the en#ironment& which are not in the fa#or of
compan& which can serious! hamper the compan<s abi!it to ser#e its customers.
:"pansion of new commercia! banks !ike 1(A1'I bank& %GIOG bank and etc.. 1nd
their better performance ma cause !oss of market shares of %)*.
1ccording to 9or!d )ank report the Pakistan has become Do#er bankedE econom
with cut throat competition for deposits in the industr the batt!e is on for the market
shares. $he customers ha#e emerged as the main )eneficiaries of the competition.
Gow the are getting more persona!i7ed ser#ices and inno#ati#e product.
1!! banks are facing a stiff competition to attract new customers. 9ith pri#ati7ation
program began in Pakistan in 1331& three of fi#e GC)s and three .FIs were
pri#ati7ed& and e!e#en new pri#ate banks were set up.
Muhammad Ibrar
M.Com (Finance)
/1
Yusha
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1!ong with the growth in si7e& the banks are now incorporating inno#ati#e
approaches to their traditiona! commercia! banking operations& keeping in the #iew
the changing demand of the time. %)* face prob!em.
$he po!itica! inf!uences affect the performance of bank #er bad!. Most of the !oans
become bad dad debits due to po!itica! pressure
Go stab!e go#ernment in Pakistan& Ho#ernment po!icies change with the change of
go#ernment.
$he concept of e#ening and (aturda banking& te!ephonic and on!ine banking& 1$M<s
and credit cards are direct resu!t of the intensi#e competition. )ut %)* is behind the
abo#e+mentioned ser#ices.
Free7ing of foreign currenc account b the go#ernment of Pakistan is a!so a fear for
the bank.
951$ I( P:($ 1G1*K(I(N
It is #er important that an organi7ation considers its en#ironment before beginning the
marketing process. In fact& en#ironmenta! ana!sis shou!d be continuous and feed a!! aspects
of p!anning.
$he organi7ationPs marketing en#ironment is made up of@
1. $he interna! en#ironment e.g. staff (or interna! customers)& office techno!og& wages and
finance& etc.
,. $he micro+en#ironment e.g. our e"terna! customers& agents and distributors& supp!iers& our
competitors& etc.
-. $he macro+en#ironment e.g. Po!itica! (and !ega!) forces& :conomic forces& (ociocu!tura!
forces& and $echno!ogica! forces. $hese are known as PEST factors.
Muhammad Ibrar
M.Com (Finance)
/,
Yusha
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Yusha
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POLITI(AL FA(TORS.
$he po!itica! arena has a huge inf!uence upon the regu!ation of businesses& and the spending
power of consumers and other businesses. Kou must consider issues such as@
1. 5ow stab!e is the po!itica! en#ironmentN
,. 9i!! go#ernment po!ic inf!uence !aws that regu!ate or ta" our businessN
-. 9hat is the go#ernmentPs position on marketing ethicsN
4. 9hat is the go#ernmentPs po!ic on the economN
/. .oes the go#ernment ha#e a #iew on cu!ture and re!igionN
0. Is the go#ernment in#o!#ed in trading agreements such as :%& G1F$1& 1(:1G& or
othersN
E8onomi8 F8to#s.
Marketers need to consider the state of a trading econom in the short and !ong+terms. $his is
especia!! true when p!anning for internationa! marketing. Kou need to !ook at@
1. Interest rates.
,. $he !e#e! of inf!ation :mp!oment !e#e! per capita.
Muhammad Ibrar
M.Com (Finance)
/-
Yusha
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-. *ong+term prospects for the econom Hross .omestic Product (H.P) per capita& and so
on.
SO(IO(ULTURAL FA(TORS.
$he socia! and cu!tura! inf!uences on business #ar from countr to countr. It is #er
important that such factors are considered. Factors inc!ude@
1. 9hat is the dominant re!igionN
,. 9hat are attitudes to foreign products and ser#icesN
-. .oes !anguage impact upon the diffusion of products onto marketsN
4. 5ow much time do consumers ha#e for !eisureN
/. 9hat are the ro!es of men and women within societN
0. 5ow !ong are the popu!ation !i#ingN 1re the o!der generations wea!thN
2. .o the popu!ation ha#e a strong>weak opinion on green issuesN
TE(HNOLO4I(AL FA(TORS.
$echno!og is #ita! for competiti#e ad#antage& and is a ma=or dri#er of g!oba!i7ation.
Consider the fo!!owing points@
1. .oes techno!og a!!ow for products and ser#ices to be made more cheap! and to a better
standard of ?ua!itN
,. .o the techno!ogies offer consumers and businesses more inno#ati#e products and
ser#ices such as Internet banking& new generation mobi!e te!ephones& etcN
-. 5ow is distribution changed b new techno!ogies e.g. books #ia the Internet& f!ight tickets&
auctions& etcN
4. .oes techno!og offer companies a new wa to communicate with consumers e.g.
banners& Customer 'e!ationship Management (C'M)& etc
Muhammad Ibrar
M.Com (Finance)
/4
Yusha
Cell: 03013335005
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(HAPTER NO.2
A(TION PLAN FOR MAR'ETIN4 &EPARTMENT7
$his wi!! he!p the bank to take !ong+term perspecti#e for its marketing acti#ities& with
consideration on strategic approach of the bank. $here are #arious steps in#o!#ed in the gi#en
imp!ementation p!an& which wi!! come in order& according to their importance and sub=ection
on one another. Moreo#er& to bring order and efficienc to the difficu!t task of
imp!ementation p!an. It has been broken down into the steps& which be!ie#ed to be needed&
when de#e!oping a discip!ined action>imp!ementation p!an for !aunching financia! products.
Ste) *7 Business Re9ie=
1s we ear! discussed that this imp!ementation p!an wi!! focus on marketing acti#ities of
%)* and as a part of the marketing background component& the business re#iew is must. It
inc!udes the marketing database not on! of %)* but a!so of other banks. $o de#e!op
marketing database& we first need to understand the scope of banking fo!!owed b a
comprehensi#e situationa! ana!sis of the financia! product& and market p!ace& which is
Muhammad Ibrar
M.Com (Finance)
//
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re!e#ant to the target market and competition situation. $his wi!! be accomp!ished through
secondar research in Pakistan. %)*<s own record of financia! products and #er often+
primar research sur#es of potentia! customers and focus group information. $he business
re#iew pro#ides a ?ua!itati#e and ?uantitati#e decision acti#ities and a rationa! for a!! the
strategic marketing decisions with in the p!an.
Ste) +7 P#ob:ems nd O))o#tunities
$he prob!ems and opportunities step of %)* is a summar of the cha!!enges that wi!! emerge
from the marketing database. In this step the data co!!ected from the business re#iew is
shaped into meaningfu! summar points that form the basis of the imp!ementation p!an.
Ste) ,7 T#<et M#>ets nd M#>etin<
$he target market and marketing ob=ecti#e both are inducted in one step due to their critica!
!ink to one another.
T#<et M#>et7 Once the deposits co!!ection being de#e!oped as ?uantifiab!e
ob=ecti#e& the staff of marketing department at the 5ub branches and 5ead Office of bank
must determine to whom the wi!! be se!!ing their new financia! packages. In response to
which bank wi!! raise deposits& making this determination is rea!! defining a target market.
9hich is a group of peop!e with common characteristics. $his part of imp!ementation p!an is
concerning on marketing efforts towards the portion of popu!ation wit simi!ar banking needs
and sa#ing habits.
Ste) -7 P:n St#u8tu#e
$o compete with other banks& %)* needs to set strategies for its new product b inc!uding
the postings strateg& it wi!! he!p in image bui!ding of the financia! package to be !aunched.
Postin<7 Once the bank has defined its potentia! market and has estab!ished
marketing ob=ecti#es& it must need to de#e!op posting of its financia! product. Position is the
desired perception of the product within the market target of the bank for e"amp!e& if the
product is !aunched. Its position shou!d be done in such a wa& that customer is fu!! aware
of its ma=or characteristics the bank has stained to bui!d the image of its products as high!
profitab!e package. $his positioning strateg is supported b the strategic consideration on
#arious marketing mi" too!s e.g. ad#ertisement& pub!icit etc&
Muhammad Ibrar
M.Com (Finance)
/0
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
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Ste) .7 In;o#mtion: 4o:s7
1!! steps of this imp!ementation p!an are high! dependent& but step /& 0 ; 2 are much more.
Informationa! goa!s means to set the target the market awareness and attitudes package and
fu!fi!! the marketing ob=ecti#e of the bank. 1nother purpose is to pro#ide direction for what is
to be accomp!ished b each strategic too! in term of informationa! conte"t.
Ste) /7 St#te<i8 M#>etin< Mi57
$his step is high! concerned with getting attention of the customers towards the ser#ice of
the %)* offering. 5ere we are concerned with a new package !aunched b the bank. Focus
wi!! be on that financia! product. $his step of discip!ined imp!ementation p!an pro#ides some
strategic p!ans for marketing of the product. $hese strategic and tactica! p!ans incorporate
marketing e"ecuted. 9hen imp!emented& wi!! a!!ow the bank to meet it<s marketing
ob=ecti#es and fu!fi!! the o#era!! marketing strategies and information and communication
(HAPTER NO.*3
RE(OMMEN&ATIONS H SU44ESTIONS
'ecommendations and suggestions are considered to be the most important part of an
internship report& without which no report is considered comp!ete and meaningfu!. $his part
of the report is based on the pre#ious sections i.e. re#iew and ana!sis. Moreo#er& for
bringing suggestions& discussions ha#e been conducted with the staff of %)* officers& who
not on! pro#ided the basis for recommendations and suggestions but a!so pointed out some
areas& where the change for the de#e!opment is utmost important. 'ea!i7ing the importance
of this section& efforts ha#e been made to gi#e feasib!e recommendations& which are
categori7ed under the fo!!owing headings.
.uring m internship at the UBL I find out week areas that re?uire impro#ements for
!ong+term benefit of the organi7ation. $hese suggestions and recommendation are as fo!!ows.
$he beha#ior with the customers shou!d be impro#ed.
Muhammad Ibrar
M.Com (Finance)
/2
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$here is a great need of proper training of emp!oees. )ecause when e#er the were
asked about the !atest banking the answer was sorr we don<t know.
*ike the other reputed commercia! banks %)* shou!d recruited some officers
especia!! from the fresh M)1<s and M.Com students. .oing so& the more ta!ented
persons wou!d enter in the management and the wi!! tr to make the Gationa! )ank
compatib!e with the other banks.
1!! the branches must be fu!! e?uipped.
$he beha#ior with the customer shou!d be impro#ed.
$r to estab!ish effecti#e communication between top+!e#e! management and
e"ecuti#e.
1!so do marketing through internet
:ffecti#e training and ?ua!ified& dutifu! and #igi!ant inspection teams are inducted per
force in a!! the banks. .
$his branch is not doing man functions to open the *>C and to dea! in e"port and
import faci!ities. (o bank shou!d hire e"port staff for such tpe of acti#ities and start
them in the branch.
(HAPTER NO.**
PERSONAL LEARNIN4
Persona! !earning is a mora! and ethica! ob!igation set b a person to mo#e in a
me!!ow wa to e"ce! in present and future.
.uring the internship I rea!i7ed fo!!owing duties.
(o!esi9eness
E9e# Red" Fo# (!::en<es
Bo#d Vision
Le#nin< F#om (#d:e To 4#9e
A:="s (#ete O))o#tunities
O)en (ommuni8tion Wit! T!e Boss
))e#n8e

(o!esi9eness
Muhammad Ibrar
M.Com (Finance)
/6
Yusha
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1 team p!aer can achie#e more than an indi#idua!. Hood coordination and
cooperation with peers and other staff members can impu!se a person to perform better in
difficu!t situations. .uring m internship I noticed that the degree of cohesi#eness among the
%)* emp!oees is high that is wh %)* is achie#ing its target ?uite efficient!.
EVER REA&Y FOR (HALLEN4ES
If a person can hand!e prob!ems and cha!!enge ade?uate!& he can grow especia!! in
Finance fie!d where e#er thing is we!! estimated.
BROA& VISION
ITHIN' 4I4J
$hink positi#e! to a#oid an kind of discrepanc and hurd!e in our task. Positi#e!
thinking and broad #ision he!ps ou to achie#e some thing different and new.
LEARNIN4 FORM (RA&LE TO 4RAVE
*atest researches and =ourna!s can be #er he!pfu! in order to generate new ideas.
%)* offers man new courses to the emp!oees to upgrade their know!edge.
ALWAYS (REATE OPPORTUNITIES
I&on?t =it ;o# o))o#tunities :="s 8#ete o))o#tunitiesJ
ITime H Tide Wite ;o# NoneJ
If ou are ab!e to create opportunities& success is ours. Gow the ?uestion is howN
$he answer is #er simp!e& b generating new and usefu! ideas for the organi7ation.
OPEN (OMMUNI(ATION WITH YOUR BOOSS
$o a#oid an kind of misunderstanding with our boss& communicate free! with him.
.uring m internship I ana!7ed thatJ
IPeo):e don?t :e9e t!e o#<niEtions t!e" :e9e t!ei# bossesJ
(o be friend! with our staff and boss and communicate free! to a#oid
organi7ationa! switching.
Muhammad Ibrar
M.Com (Finance)
/3
Yusha
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APPEARAN(E
IT#et "ou# se:; s )#odu8tJ
1ttracti#e appearance can be #er usefu! to impress others. 1 professiona! shou!d be dressed
up proper! to inf!uence others.
BIBLIO4RAPHY
Web sites
www.ub!.com.pk
www.goog!e.com
www.sbp.com.pk
News papers
)1GAIGH BO%'G1*
Muhammad Ibrar
M.Com (Finance)
04
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
www.dawn.com
www.nation.com.pk
Boo>s
Principa!s of )anking
Marketing
Muhammad Ibrar
M.Com (Finance)
01
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com
Yusha
Cell: 03013335005
Email: yusha143@gmail.com