UBL Internship Report

Internship Report(BC08002)
-1-
INTERNSHIP REPORT
ON
UNITED BANK LIMITED DASKA
PRESENTED TO:
SIR MUDASSAR GHAFOOR
SUPERVISED BY:
SIR HAFIZ IMRAN
PRESENTED BY:
MUHAMMAD USMAN
ROLL NO. :
BC08002 (MORNING)
SESSION:
2008-2012
UNIVERSITY OF THE PUNJAB

GUJRANWALA CAMPUS
-2-
TABLE OF CONTENTS
CONTENTS
SR
No.
1.
EXECTIVE SUMMARY
2.
ACKNOWLEDGMENT
3.
DEDICATION
4.
PREFACE
5.
INTRODUCTION TO REPORT
6.
ORIGION OF BANK
7.
DEFINITION OF BANK
8.
COMMERCIAL BANKING IN PAKISTAN
9.
PHASES OF BANK IN PAKISTAN

i.
FIRST PHASE
ii.
SECOND PHASE
iii.
THIRD PHASE
iv.
FOURTH PHASE
10.
HISTORY OF UBL
11.
VISION
12.
MISSION
13.
FUTURE STRATEGY
PAGE
No.
6
7
8
9
10
12
12
13
13
15
17
18
19
20
21
22
23
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14.
UBL PRESENT POSITION
24
15.
PRESENT MANAGENT (BOD)
25
16.
STRUCTURE OF COMPANY
29
UBL DASKA BRANCH HEIRARCHY
31
DEPARTMENTS IN THE ORGANIZATION
31
17.
18.
i.
ACCOUNT OPENING DEPARTMENT
40
ii.
CLEARING DEPARTMENT
42
iii.
ACCONT OPENING DEPARTMENT
45
iv.
CASH AND DEPOSIT DEPARTMENT
47
v.
CREDIT DEPARTMENT
50
vi.
ACCONT DEPARTMENT
53
19.
20.
WORK DONE BY ME
70
22.
FINANCIAL ANALYSIS
71
23.
RATIO ANALYSIS
91
24.
SWOT ANALYSIS
97
RECOMMENDATION
98
CONCLUSION
99
GLOSSARY
100
21.
25.
26.
BIBLIOGRAPHY
EXECUTIVE SUMMARY
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In November 7, 1959 UBL was established and is one of the major commercial
banks of Pakistan. The Bank is making every effort to meet the future challenges
through strategic planning and making the best use of the resources at its
command. UBL is a Banking Company, which is connected in Commercial &
Retail Banking and related services domestically and overseas.
On 1st January 1974 banking nationalization act was circulate which states that all
the banks working in the territory of the state are owned by Federal Government.
There were 14 banks with 3323 branches within the country and 74 in foreign
country offices. On 1st July 1974 under nationalization act Commerce Bank was
merged United Bank.
United Bank Ltd is the third largest bank in Pakistan. UBL has assets of over Rs.
Rs. 807,204,788,000. In addition to the convenience of over 1,000 branches
serving you throughout the country and also at several overseas locations. Its
total loan Rs. 50,845,877,000 and its deposit Rs. 633,889,416,000. Its paid up
capital Rs.12, 241,798,000 and Reserves Rs. 27,495,959,000 profit Rs.14,
887,113,000.
UBL operates 1375 domestic and 20 overseas branches situated in the UK, USA,
UAE, Yemen, Bahrain and Qatar. It also operates one offshore branch in the
Export Processing Zone, Karachi and it has representative offices in Cairo-Egypt
and Tehran-Iran. It also has a joint venture Oman United Exchange Co., Oman
Muscat and a subsidiary United Bank A.G. Zurich, Switzerland set up in 1968.
UBL is introducing a range of credit cards backed by visa and master card and
establish a strong market position through innovation and provision of superior
value to the customers.
-5-
ACKNOWLEDGEMENT
All praises and thanks for Almighty Allah who is entire source of knowledge and
wisdom to mankind. And whose uniqueness, oneness and wholeness, gave me enough
courage, knowledge and ability to accomplish this report.
Thanks are also due to last Prophet Hazrat Muhammad (Peace Be Upon Him),
through whom almighty Allah communicated knowledge to mankind and who is
forever a torch of guidance and knowledge for whole humanity.
I really praise to the great efforts of my instructor Prof. Hafiz Muhammad Imran His
constant encouragement and supports made the successful accomplishment of this
Report. He provide me all types of guidance to complete may Report.
And also Staff of United Bank Limited, who help me in providing the information. I
again extended my deep gratitude and heartiest thanks to all of them whose inspiration,
experience, wisdom, skill, scholastic approach and valuable suggestions guided me
throughout the preparation of this report.
-6-
DEDICATI
ON
To
Honorable parents and our loving Teachers
Whose,
Love, Affection, Motivation, Patience, Support
&
Spiritual Inspirational, Give us Encouragement,
People To all those who have quenched for Knowledge,
To all those who have dedicated their lives to others,
To all of those who have served and sacrificed for
Sake of Freedom
To all of those people, who may be gone now?
-7-
But they will never be forgotten
PREFACE
Punjab University is one of the leading universities in the World. HCC is the heart
of this University. This institute is rendering invaluable services to the Pakistan
nation by producing outstanding graduates and post graduates who have aims to
change the world. I myself feel proud as being a part of that superlative college
and feel proud of my teachers because of their excellent teaching style and vast
knowledge, as well as their scholastic approach.
Preparing students to face the world confidently and courageously, PUGC
arranges an internship Programs during summer vacations. The purpose of this
program is to give practical exposure about our studies. It is also helpful for
understanding the organizational environment that how to deal with professional
persons. For that purpose, I joined United Bank Limited, which is one of the
largest banks in Pakistan. During my internship span of six weeks I got chance to
work in Different Departments and got information from other departments about
their working and documentation. I tried my level best to include everything,
which I learned and observed there. This report contains the details about the
functions of Departments, of United Bank Limited. This report is prepared in such
a way that reader gets full overview of United Bank Limited.
MUHAMMAD USMAN
-8-
INTRODUCTION TO REPORT
This INTERNSHIP REPORT is my final assignment of B.COM (Hons.) at Punjab
University (Gujranwala Campus). It is my internship experience at UNITED BANK
LIMITED DASKA Branch. This report include of the overall experience of the work
their in all the departments of the organization. The objective of the report is to introduce
the organization, describe the working and my personal experience at work. It shows
what the operations are and how those operations are managed by the people there. It also
includes the analysis of the operations and position of the organization i.e. SWOT
analysis showing the performance and the future prospects for the organization. Also it
describes my work and activities performed at each working area and the difficulties
faced there at.
Finally I have given some recommendations to better the operations of the organization
based on my personal observation during my work there. In Last there is the conclusion
of the good experience that is the essence of my work.
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WHAT IS BANK?
ORIGIN OF THE WORD "BANK":
There are many definitions of the word "Bank" even the standard encyclopedias and law
books find it difficult to state exactly what a Bank is. There have been many attempts by
different writers to explain the exact significance of the term BANK. Here some of the
definitions are quoted as follows:
The Bank Means:

The word Bank has been derived from the words Banco, Bancus all of which means
a bench. The early bankers transected their activities on benches in the marketplace.
Definitions:
Dr. Hart:
"A banker is one who, in the ordinary course of his business honors cheques
drawn upon him by persons from and from whom he receives money on current
accounts."
Holder:
"The modern banker is primarily a dealer in credit."
Samuelson:
"Commercial banks provide certain services for customers and in return receive
payments from them."
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The Encyclopedia Of Banking And Finance Defined Commercial Bank

As:
A name given to one of the classes of non-government banking institutions under bank.
Commercial banks are designed primarily to finance the production, distribution, and sale
of goods, i.e. to lend short-term funds, as distribution, form the services of lending longterm or capital funds. The bulk of deposit of commercial bank consist of demand deposit,
which are invested, in short-term loans
National and state bank is the best example of commercial banks, although in most states
trust companies are also permitted to engage in commercial banking. Private Banks are
usually commercial banks. The term full-service banking has been promoted in recent
years as a more descriptive term because of the diversification of commercial banks into
many operations other than commercial lending ,including consumer banking (direct
financing of consumers, credit cards, personal loans, consumer receivable financing);
mortgage banking; savings backings and commercial sales financing ;international
banking and foreign exchange; trust, safe deposit, custody and investment management
functions travel services, travelers checks, money order etc.
Commercial banking is different from investment banks, securities firms, and commercial
financing service institutions. Government authorities closely of customer deposits and
the soundness of the bank. Government regulators require cash reserve against deposit,
specify maximum interest rate bank can pay on deposit, set minimum capital
requirements and place limits, on the size of loans to borrowers.
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Comprehensive Definition Of The Bank Is:

A bank is a financial institution which deals with money and credit. It accepts
deposits from individuals, firms and companies at a lower rate of interest and gives at
higher rate of interest to those who need them. The difference between the terms at which
it borrows and that at which it lends forms the source of its profit. A bank is a profitearning institute.
Commercial Banking in Pakistan:

At the time of the partition, the total number of commercial banks was 38. Out of these,
the Pakistani banks were 2; Indian Banks 29 and exchange bank 7. The total deposits of
Pakistani bank stood at Rs. 800 million whereas the advances were Rs.198 million.
It was very difficult for Pakistan to build up its own Banking system immediately
after independence without sufficient resources. Following the announcement of the
partition plan in June 1947 there was a haste movement on the parts of banks to transfer
their funds and accounts across the borders. The banks having their registered offices in
Pakistan were transferred to India. In an effort to bring about the collapse of the new state
by the persecuting an international policy of withdrawal, the Indian bank offices closed
quickly. Those banks, which stayed, were considering the winding up of their business.
By 30th June 1948 the number of schedule banks in Pakistan declined from mere scratch.
Today there are more than 7000 branches of commercial banks along with an
established network of supplementary financial institutions. All this development in the
banking sect is the result of untiring efforts of four decades.
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Phases of Banking In Pakistan

Broadly speaking we can divide the development of commercial banking into four
phases:
PHASE-1 1947-1974 Establishment of commercial banking system
PHASE-2 1974-1979 Nationalization of banks
PAHSE-3 1979-1991 Islamisation process
PHASE-4 1991-2011 Privatization process
FIRST PHASE (1947-1974)
Set Up Of Commercial Banking System:

This was the first phase of development of Pakistans commercial banking
system, which consist of the circumstances under which the development of banking was
started in the country.
Initial Position of Banking in Pakistan:

There were 19 non-Indian foreign banks in Pakistan at the time of independence
with the status of small branch network, whose policies and operations were controlled
by their head offices abroad. These banks were engaged solely in export of corps from
Pakistan. There were only two Pakistani banks, the Habib bank, which had transferred its
head office from Bombay to Karachi after the announcement of the partition plan, and
Australian bank which has been working in Pakistani territories prior to June 1947. The
government of Pakistan tried hard to eliminate the banking crises. Banking Companies
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Ordinance 1947 was promulgated to safe guard the interest of both the bankers and the
companys customers. The situation however showed no significant improvements. The
imperial bank of India closed down most of its offices in Pakistan, which had been
working as the agent of the reserve bank of India was not willing to purchase even token
amounts of the government of Pakistan. Securities on the plea that these securities were
not marketable. The reserve bank of India was hardly of any help. It refused to help
government of Pakistan with advance argument adhoc securities to enable them to make
essential disbursements such as salaries and other obligations to add to the difficulties.
The Indian government withheld Pakistans share of Rs. 75 corer in cash balances
held by her at the time of independence. The foregoing developments clearly brought
home the urgency of assuming control and currency in Pakistan and brought to the fore
the need to setup a central banking institution to take the place of reserve bank of India.
Therefore it was agreed between the government of India and Pakistan to authority of
Pakistan from 30th September 1947 to 30th June 1948.
In order to make necessary arrangements of the establishment of the central bank
of Pakistan a committee was appointed to recommend the necessary steps. Consequently
the Governor General of Pakistan and father of the nation Quaid-e-Azam Muhammad Ali
Jinnah Inaugurated the State Bank of Pakistan on 1st July 1948. After the State Bank
order was promulgated on 12th May 1948.
When it assumed full control of banking and currency in Pakistan the first
important task before the SBP was to issue of currency notes and withdrawal of reserve
bank of India, which had been in circulating in Pakistan so far.
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SECOND PHASE (1974-1979)

NATIONALIZATION OF BANKS:
The banking reforms turned out to be a transitional and temporary step and hardly
after 18 months had the government nationalized the banking system. Thus through the
Nationalization Bank Act 1974, SBP and all commercial banks incorporated in Pakistan
and carrying on business in or outside the country were brought under the government
ownership with effect from January 1974. The ownership and management of all Pakistan
banks stood transferred and rested in the federal government. The shareholders were
provided compensation in the form of federal government bonds redeemable at par any
time within a period of fifteen years. The amount of compensation was equal to the break
up value of the shares in case of commercial banks. For the State Bank shares the amount
of compensation was estimated on the basis of average of the clearing quotations during
the six working days preceding nationalization. The chairman, director and chief
executives of various banks were removing from their offices other than those appointed
by the federal government and the state bank. The central board of banks, managing
committees and similar other bodies were dissolved. A Pakistani banking counsel was
established for nationalized commercial banks to co-ordinate their activities.
As a result of merger of banks the following five major banking companies were
formed:
1. National Bank of Pakistan
2. Habib Bank Limited
3. United Bank Limited
4. Muslim commercial Bank Limited
5. Allied Bank of Pakistan
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CAUSES OF NATIONALIZATION:
The nationalization of banks may be justified on the following grounds:

1. Large business and industrial houses dominate the lending policies of the
commercial banks; this brought forward the problem of concentration of wealth.
2. Commercial banking operations were guided by profit motives and as a result the
backward regions and the small entrepreneurs were never been their favorite
customers.
3. The operation of banks, unlike after business, have direct implication on the entire
national economy. For instance if the banks raise the cost of their credit, the cost
of everything may go up.
4. Unhealthy complications among banks can lead to financial and economic
problems.
5. The flow of bank advances towards national priority sector in general is not
forthcoming because private banks are profit oriented.
RESULTS OF NATIONALIZATION:
Although there are doubts about the positive results of the nationalization but we can say
that the nationalization of banks provided efficient professional management to expand
banking services in every nook and corner of the country. Banks laid full emphasis on
their lending policies on priority sector and national building projects, which discouraged
non-productive and unhealthy activities like speculation and hoarding, there was also a
recorded increase in the number of foreign branches of Pakistani banks.
The growth of Pakistani banking system was significant. The banking facilities expanded
in the rural areas. The bank credit increased sharply especially in the public sector. A part
- 16 -
from this expansion the banking systems activity seeking to gain credit targets laid down
by national Credit Consultative Council (N.C.C.C) and to confirm to the priorities over
the year to enlarge the flow of credit for the small banker and agriculturist as well as for
exports. Bank deposits rose very substantially during a period when total monetary assets
also registered a sharp rise. In a remarkable short time banks and their management had
adjusted to the realities and compulsion of the new situation and the system as a whole
was completely geared to government objectives and policies.
THIRD PHASE (1979-1991)
INTRODUCTION OF ISLAMIC BANKING:
In 1977 the Bhutto government was toppled. The martial law government planned to
reform the banking sector in a novel way. The overall policy was to Islamize the
economy and the banking system, being based on interest was an important target of the
new policy. The most preferred form of Islamic bank financing profit and loss sharing
would require banks to receive deposit without guaranteeing any return.
The Islamic bank has to acquire a high degree of confidence of the saver to make
him deposit his money with them. Not even the return of the principle amount if
guaranteed. The Islamic bank cannot finance the project of an investor merely on the
furnishing of collateral. The bank will have to be a partner in the project. This will
require to careful security of the project and the assessment of risk involved because
profits are the function of the amount of risk in the project. Honesty and trust form both
sides of the market are more important to the system of Islamic Banking.
- 17 -
FOURTH PHASE (1991-2011)

PRIVATIZATION AND DE-REGULATION:
The government headed by Prime Minister Nawaz Sharif was not fully satisfied
with the performance of nationalized. The areas, which were severely criticized, were the
falling standard of banking services and common red-tapism. There were complaints
about the services as delay in home remittances, dispatch of cheques, drafts, inefficient
counter services, bad debts of the banks etc. were on the rise. The government decided to
privatize these banks. In order to implement privatization policy a privatization
commission was established on 22nd January 1991. The commission has transferred two
banks MCB and ABL to the private sector. Application for privatization of other banks
namely UBL and HBL were also invited but the bidding response was quite poor. Till
March 1994 there were 20 domestic scheduled banks with 9825 branches and 21 foreign
banks with 66 branches in operation in the country. Overall investment of the domestic
scheduled banks in the current year declined by 80% over the same period last year. In
October, 2002 UBL was sold to Abu Dhabi Group of Industry and Best Way Group of
Industry with 51% shares were given to them.
Bank of Commerce Al Habib Ltd.
Soneri Bank Ltd
Union Bank Ltd.
Indus Banks Ltd.
Mehran Bank Ltd.
Prime Commercial Bank Ltd.
Askari Commercial Bank Ltd.
Bolan Bank Ltd.
Capital Bank Ltd.
Republic Bank Ltd.
Now Mehran bank has been absorbed by National Bank Ltd, due to its poor
performance and ultimate failure. Now the ABN Amro Bank has also been included in
the list of foreign scheduled banks.
- 18 -
HISTORY OF THE UNITED BANK LTD

UBL was established in November 7, 1959 and is one of the major commercial banks of
Pakistan. The Bank is making every effort to meet the up-coming challenges through
strategic planning and making the best use of the resources at its command. UBL is a
Banking Company, which is engaged in Commercial & Retail Banking and related
services domestically and overseas.
On 1st January 1974 banking nationalization act was promulgated which states that all
the banks working in the territory of the state are owned by Federal Government. There
were 14 banks with 3323 branches within the country and 74 in foreign country offices.
On 1st July 1974 under nationalization act Commerce Bank was merged United Bank.
There were complaints about the services as delay in home remittances, dispatch of
cheques, drafts, inefficient counter services, bad debts of the banks etc. were on sector
application for privatization of other banks namely UBL and HBL were also invited but
the bidding response was quite poor. Due to above problems State bank of Pakistan has
take over the United Bank Ltd in 1996.
A professional team was appointed in mid 1997 to restructure the bank and to commence
rightsizing. The management is also in the process of rationalizing the branch network
and identifying and recovering its doubtful and classified portfolio. It has planned to
institute major improvements in customer services and internal systems to improve
efficiency. It also intends to launch innovative products. The bank is increasing resource
mobilization through regular deposit campaigns and accelerating the process of recovery
of outstanding advances and non-performing assets.
In October, 2002 UBL was sold to Abu Dhabi Group of Industry and Best Way
Group of Industry with 51% shares were given to them
- 19 -
VISION STATEMENT
UBL TOGETHER WITH YOU TOWARDS A WORLD CLASS BANK
Our vision is to become a world class bank,

Where you come first.
- 20 -
MISSION STATEMENT
Set the highest industry standard for quality, across all areas of operation, on a
sustained basis
Optimize people, processes and technology to deliver the best possible financial
solution to our customers
Become the most sought after investment, and
Be recognized as the employer of choice
- 21 -
FUTURE STRATEGY
UBL expects its strong customer focus to drive the Banks future business strategy. On
the domestic front the bank is already an established player in consumer banking
business. It has taken an aggressive entry into the consumer assets market with full rage
of product offerings, e.g. car financing, home loans, etc.
UBL plans to increase investment in developing human resources, infrastructure and
internal systems to support the aggressive consumer initiative and exploration of new
avenues of revenue recognition
UBL is introducing a range of credit cards backed by visa and master card and establish a
strong market position through innovation and provision of superior value to the
customers
On the international front ,UBL plans to continue to build the core gulf business with
special focus on trade, With a network presence in Gulf, New York, Zurich and London
UBL has an ideal opportunity to offer correspondent banking services in these key
financial centers to a host of small and middle-tier banks in the sub-continent, middle eat
and Africa
- 22 -
United Bank Limited Present Position

United Bank ltd is the third largest bank in Pakistan. UBL has assets of over Rs. 392
billion and a solid track record of forty seven years - in addition to the convenience of
over 1000 branches serving you throughout the country and also at several overseas
locations. Its total loan Rs.50, 845,877,000 and its deposit Rs.633, 889,416. Its paid up
capital Rs.12,241,789,000 and Reserves Rs.27,495,959,000 profit Rs.14,887,113,000.
Operational Structure
UBL operates 1375 domestic and a subsidiary viz. United Executors and Trustees
Company Ltd. as on 30.06.2000. It has 20 overseas branches situated in the UK, USA,
UAE, Yemen, Bahrain and Qatar. It also operates one offshore branch in the Export
Processing Zone, Karachi and it has representative offices in Cairo-Egypt and TehranIran. It also has a joint venture Oman United Exchange Co., Oman Muscat and a
subsidiary United Bank A.G. Zurich, Switzerland set up in 1968. It has 21 ATMs with 8
in the UAE, 3 in Bahrain, 1 in Doha, 7 in Islamabad and 2 in Karachi.
Registered Office
13 Floor , UBL Building,
Jinnah Avenue, Blue Area Islamabad, Pakistan
Head Office
State Life Insurance Corp. Building #1,
I.I. Chandigarh Road, Karachi, Pakistan
P.O. Box No.: 4306
Phone: (92-21) 111-825-111
Gram: "UNITED"
Fax: (92-21) 2413492
- 23 -
PRESENT MANAGEMENT (BOD)
Chairman
His Highness
Shaikh Nahayan
Mabark Al Nahayan
Deputy
Chairman
President &
CEO
Sir Mohammad
Anwar Pervez OBE
Mr. Atif R.Bokhari
Directors:
Mr. Omar Ziad Jaafar Al Askari
Mr. Zameer Mohammed Choudrey
Mr. Ahmad Waqar
Dr. Ashfaque Hasan Khan
Mr. Abdul Rauf Malik
SEVP/Group
Chief Financial
Officer
Company Secretary
Chief Legal
Mr. Aqeel Ahmed Nasir
Mr. Aameer
Karachiwalla
- 24 -
STRUCTURE OF THE COMPANY
PROCESSING
REGION
Azad Kashmir
BRANCHES
71
AREAS
4
HUBS
5
Gujranwala
66
Islamabad
61
Faisalabad
81
Karachi
95
Mardan
80
Hyderabad
109
Multan
102
Peshawar
71
Jhelum
73
Sargodha
68
- 25 -
Lahore
62
Sahiwal
61
Quetta
39
REGIONS:
There are total 14 regions
BRANCHES:
1375 Domestic
20 Overseas
REPRESENTATIVE OFFICES:
Tehran
SUBSIDIARY:
United Bank AG Zurich
Switzerland
United National Bank limited, UK(Joint venture with NBP)
UBL Fund Managers Limited
ASSOCIATED COMPANY:
Oman United Exchange Company, Muscat
- 26 -
OFFSHORE BANKING UNIT:

Export Processing Zone, EPZ Branch, Karachi, Pakistan
Total number of processing hubs is 67
Total number of areas is 60
- 27 -
BANK STRUCTURE
Board of Directors
President & CEO
H.O. Committees
Groups & Segments
Chairman
Groups
Heads/Segment Heads
Field Operations
H.O. Committees
RCE, s / GM, s
Branches
Core Functions
Support functions
Divisional Heads
Department Heads
- 28 -
RCES ORGANGRAM
Regional Chief
Executive
MIS
Coordinator
Head of Branches
operations
Coordinator
Senior Relationship
Manager (SRM)
Regional Operations
Head (ROH)
Area Manager
(AM)
Relationship
Manager (RM)
Regional Agric.
Manager (RAM)
Coordinato
r
Agriculture Credit
Officer (ACO)
Relationship
Manager (RA)
Unit Head
Unit Head
Officer
Coordination
Officer
Coordination
Driver
- 29 -
Manager
UBL DASKA BRANCH

HIERARCHY
- 30 -
INTEGRATED APPROACH
ASSET BASE
COMMERCIAL
BANKING
OVER200
RROLATIONSHIPS
CORPORATE
BANKING
PRODUCT RANGE
TREASURY
BRAND VALUE
INVESTMENT
BANKING
STRONG
MANAGEMENT
COSUMER
BANKING
INDUSTRY
KNOWLEDGE
INTERNATION
AL BANKING
BRANCH
NETWORK
OVERSEAS
REPRESENTATION
- 31 -
CLIENT
DEPARTMENTS IN THE ORGANIZATION

1. ACCOUNT OPENING DESK (AOD)
2. CLEARING DEPARTMENT
3. ACCOUNT OPENING DEPARTMENT
4. CASH AND DEPOSIT DEPARTMENT:
5. CREDIT DEPARTMENT
6. ACCOUNTS DEPARTMENT
1. ACCOUNT OPENING DESK (AOD)

Initially I started my training by filling the deposit slips, cheques and demand drafts
forms, pay orders forms, online forms, and cheques book requisitions etc. of the
customers. And also provide information about the bank which is in my knowledge to
both customers and walking customers. And then I worked on that.
Definition of the Bank Account:

A bank account is the establishment of a relationship between a customer and a bank
Types of the Accounts:

Following are the types of the account which are performed in the UBL:
Individual accounts
Joint account
Proprietorship account
Private limited company accounts
Public limited companies accounts
- 32 -
Trust accounts
Liquidators accounts
Societies, Associations and Clubs etc
Local bodies accounts
Accounts of Govt. Departments
ACCOUNT OPENING FORM:

Account opening form is the document that carries:
The details of a customer
The terms and conditions applicable to the relationship
Signature /thumb impression of the account holder
General terms and conditions applicable to the operating of an account specified
by the bank
SALIENT FEATURES UBL AOF:

Introduction:
Every account must be introduced by an existing account holder of the bank or an
account holder of another bank provided that the signature of such account holder are
verified by his/ her bank. Staff can also introduce.
Documentation:
Different types of accounts require different documents to be submitted to establish a
relationship. In case of individual accounts only a copy of the CNIC or valid passport are
considered sufficient.
- 33 -
A Multipurpose Account Opening Form is used for:
Current account
PLS saving bank account
PLS Unisaver
PLS SNDR
PLS Certificate of Deposit(COD)
Call Deposits
FC Saving Accounts
FC Current Accounts
Policies:
1. All customer accounts will require proper introduction either from UBL
staff (existing customer of branch/ bank or of another bank). An employee
of the branch/ bank introducing the account must know the account holder
and must possess sufficient information on the new account holder.
2. The signature of introducer, if not holding account at branch, must be
verified from another branch/bank prior to issuance of Cheque book.
3. Account opening form shall be filled in by the account holder in duplicate.
The branch will retain original while the copy returned to the customer
against acknowledgment.
4. Letters of thanks shall be set to both the account holder ad introducer (if
other than banks own staff) for correctness of address and genuineness of
introduction.
5. Name and address of applicant must also be obtained in the case of an
individuals account.
6. Blank columns must be crossed or marked.
7. PLS Savings accounts shall be opened for individuals (Single or Joint),
Charitable institutions. Provident and other Benevolent funds
- 34 -
8. PLS Savings accounts shall not be opened in the names of illiterate Pardah
nashin Ladies. Local Bodies, Autonomous Corporations, Companies
,firms or other institution except their provident fund and Benevolent
Funds Accounts
9. In case of illiterate person, the introducer shall also verify the thumb
impression on the AOF.
10. In case CNIC does not contain photograph, photocopy of ay other
document such as passport /driving license etc containing photograph shall
be obtained.
11. Government accounts shall be opened with approval of competent
authority of concerned Division /department and endorsement of finance
Division.
Documentation Requirements:
Individual/joint and Sole proprietorship:
Declaration Form No. I (Mandate or authority form) for operating of account by a
AOD person.
Illiterate persons account with Thumb Impression shall be discouraged unless
unavoidable, however proper identification duly supported by two attested
passport size photographs must be obtained from the customer and attached to
AOF and SS card besides taking his right and left thumb impression o the SS
card.
Letter of undertaking shall be obtained from illiterate customer to the effect that
he shall to operate the account unless he/she personally comes the bank and puts
his thumb impression on the cheques in the presence of the AM/AOM/BM/OM or
CD//SVB Supervisor.
- 35 -
The sole proprietor of the trading concern shall sign the Declaration Form II
(Provided on the mandate form) through which he /she can also give the account
operation authority to any other person to operate on the account.
Joint account to be operated by either or survivors or Jointly
In case of minor account, the guardian only shall sign the AOF.
Account in the name of minor shall not be opened unless his guardian opens it in
the following form, preferably as savings Deposit account., For example Ahmed
Ali (minor ) Jaffar Hussain (Guardian)
Birth certificate is required in case of minor.
In case, the CINC of pardah nashin lady does not contain photograph , in addition
to CNIC, any other document such as drivers license or passport that contains a
photograph should be obtained
Clubs, Association, Societies, Charitable Organizations:

Certified copies of Certificate of Registration and By- Laws/ Rules &
Regulations
An undertaking signed by all the authorized persons on behalf o the institution on
the account, the banker will be informed immediately
Certified copy of the resolution passed by the Governing body/Executive
Committee/Managing/Working Committee of the Society/Club or Association
authorized person to operate the account
Attested copy of the identity card of the authorized persons shall be obtained
List of Members of the Executive/Managing/Working Committee
- 36 -
No Club, Association , Societies& Charitable Organizations account shall be

opened without prior permission from the Head Office
Partnership Account:
Partnership declaration No IV on the Mandate Form duly signed by each partner
under companys stamp
Attested photocopies of CNIC of all partners
Attested copy Partnership Deed duly signed by all the partners of the firm
Attested copy of Registration Certificate with the registrar of Firms
I case the partnership is unregistered, this fact should be clearly mentioned on the
AOF
Authority letter, in original , in favor of the person authorized to operate on

account of the firm
Partnership deed executed on stamped paper if formal agreement has been drawn
up, which must include the under noted information:
Names of all partners;

Partner powers to instruct bank on financial matters and operation of
account
Dissolution of partnership/Death of partner etc

Joint Stock Companies:
Account Opening form completed in all respect and signed under
company stamp
Certified copies of:
Resolution of board of directors for opening of account
specifying the person authorized to operate the company account
Memorandum and article of Association
Certificate f incorporation
Certificate of commencement of business
Attested photocopy of identity card of all the director s
- 37 -
List of directors corresponding to the one printed in the memorandum and

article and association.
All document to be signed under company stamp
Trust Account:
Attested copy of certificate of registration
Attested copies of CNIC of all the trustees
Certified copies of instrument of Trust
No trust account shall b opened without prior permission from the head office
Executive and Administrators:

Attested photocopy of CNIC of the Executor/Administrators
Certified copy of letter of Administration or probate
Accounts of Executors Administration shall not be opened without t prior
permission from the Head Office
All the Executors/Administrator shall sign the AOF, if more than one to whom
probate has been granted
The probate or letter of administration shall be duly registered at the branch
Clear instructions under the signatures of all the executors and .or Administrators
shall be obtained to determine as to which of the Executors or Administrators
shall operate the account
- 38 -
Bank shall not accept any power of attorney or authority letter given by the
Executors or Administrators to third parties to operate the account
PROCEDURE:
Following are the things/procedure which is performed in the banks that I observed and
also practically done:
The customer visit the bank
the AOD(Account Opening Desk) officer explains the requirements with respect
to account type desired by the customer
The officer also explains the minimum account balance requirement and
documentation required to open the account the customer
The AOD officer hands over the Account Opening From, SS card, Cheque Book
Request form to the Customer.
The AOD officer also offers the ATM/UB online application form to the customer
The customer fills in the Account Opening Form, Cheque Book Request ,ATM&
UB Online Request, SS Card and submits relevant documentation as per banks
Requirement
The AOF and other document should be signed by the customer in the presence
of AOD officer designated to open the account
- 39 -
The customer provides original CINC/Passport along with the photocopy for
attestation / verification to the designated officer. The original documents are
returned to customer after verification/attestation
The AOD officer examine the AOF, other documents and SS CARD, Blank
spaces on AOF and SS card are crossed out or marked VOID
The AOD officer interviews the customer to ensure genuineness of the
information provided
If signature of introducer not holding the account at branch forwards the request
to respective Branch /Bank for verification
The AOD officer ensures that the documents are complete in all respect, otherwise
if any document is missing or incomplete should be referred to the AM/BM for
deferral approval
The AOD officer/supervisor approves the AOF
The missing/incomplete document must be completed by the designated officer at
an early date and submitted to Hub
Due to computerized branch the AOD officer used the following the steps:
Go to the maintenance option then to the Customer Account and then

Open Account
The AOD Officer also scans the SS card and files it in the sequential order
in the card box
The AOD officer forwards the AOF, the documents and SS cared to the
HUB for record keeping
- 40 -
The AOD officer fills in the deposit slip for initial deposit and hands it
over to the customer
The customer deposits the cash with the teller
The teller receives the cash from the customer and stamps Received
cash on both portions of the pay in slip and post in active ledger
Initial deposits is noted on AOF
The letter of Thanks is prepared by the AOD officer and mail to customer and
introducer
If the letter of thanks returned then call to customer and verify the customer
address and mailed the letter again
The returned letter of thanks shall be entered in a register and filed with the AOF
2. CLEARING DEPARTMENT
FUNCTIONS:
The major functions of clearing department are to receive the cheques, which are drawn
on some other bank. The customers can get many cheques in his account at BAL from the
cheques drawn on other banks. The bank accepts these cheques and collects the amount
from other bank. Bank charges some commission of these facilities. This department is
controlled by the operation Manager or the Head of the department.
PROCEDURE FOR CLEARING OF CHEQUES:

1. Pay-In-Slip:
- 41 -
The customer fills pay-in slip; this slip is just like deposit slip. The cheque number,
account number and amount must be mentioned in this slip.
2. Stamping and Scrutinizing:

The officer on receipt of cheque will stamp cheque received and give a portion of slip to
the costumer and remaining portion of attached with original cheque. The following
stamps are affixed in the cheque.
3. Clearing House:
This is a facility provided by SPB by acting as clearinghouse. A representative of all bank
gathered daily at evening. Each bank collects the cheque on behalf of their customers and
handed over the cheques, which are not drawn on their bank, to their representatives.
Clearinghouse is present in all major cities and where their branches of SPB the National
Bank of Pakistan provides this facility
Types of Clearing:
1. Inward Clearing
2. Outward Clearing
3. Within Bank Transfer
Inward Clearing:
Inward clearing means the cheques, which are to be honored by bank, which are received
through other bank representative. These cheques are honored by the same process
mentioned in each department.
Outward Clearing:
Outward clearing means the collection of cheques on behalf of draw of customers drawn
of other bank. Outstanding cheques are sent through SMS, courier or registered post to
their original source. All the risk and responsibility for the lost of cheques are born by
customer.
- 42 -
Within Bank Transfer:

If the cheque is drawn on BAL with in of same branch or any other branch, it is called
with in bank transfer. Such cheques are marked with Transfer stamp.
3. ACCOUNT OPENING DEPARTMENT

The primary function of a commercial bank is to receive deposits and advance loans.
Deposits are the lifeblood of a bank. These are also the main source of banks funds.
WORKING OF DEPOSIT DEPARTMENT

The deposit department deals with the following functions:
1. Opening of new accounts
2. Issuance of cheque books
3. Miscellaneous function
ACCOUNT OPENING:
The bank open the account of its customers which includes
An individual
A firm
Company
Corporation or association
- 43 -
ACCOUNT OPENING PROCEDURE:

In order to open the account with the UBL a proper method is followed for this purpose.
For account opening a proper method is followed mainly in following steps
First of all a customer must have his original identity card (in case of residents
customer) and original passport (in case of nonresidents customers).
The client is provided with a set of forms containing account opening form, SS
card and requisition slip to be filled.
The forms are properly verified.
Then the customer is allocated an account no
In order to operate the account a cheque book is issued to the customer.
Now we discuss the particulars of these forms one by one.
ISSUANCE OF NEW CHEQUE BOOK

After an account holder uses his cheque book completely, he can apply for another. The
procedure is as follows;
He takes the requisition from the old cheque book and submits to the bank after
filling it.
The officer will match the signature in the banks record.
If the sign matches, the cheque book according to the account type are issued, as
separate cheque book are maintained for different accounts.
After issuing the entry is made in the register as well as in the computer.
MISCELLANEOUS FUNCTIONS
The deposit department deals with several other miscellaneous functions such as:
Closing of account
Amendments in the account
- 44 -
Letter of thanks
TYPES OF ACCOUNT
Banks opens the following accounts:
Current account (both in foreign and local currency)
Saving account (both in foreign and local currency)
Fixed Account
CURRENT ACCOUNT
Every bank maintains the current account with its customers;
A current account is running account which is continuously in operation by the
customer on all working days of the bank.
The customer withdraws money from current account without prior notice to the bank. In
short, in current account, the banker incurs an obligation to honors all the cheques drawn
by the customer so long as there is enough money to credit of the client.
Interest on current account

The banks dont usually pay any interest on current account in local as well as foreign
currency. The amount can be withdrawn at any time, so the bank cant comply these
funds due to fear of withdrawal.
Advantages of having current account

The customer gets the following advantages on behalf of current account;
The bank collects properly endorsed cheques on behalf of current account holders
The bank may allow the facility of overdraft on prior arrangements to the
trustworthy customers.
- 45 -
Loans and advances may be sanctioned to the creditworthy clients with ease.
On line facility alternative of cash transaction is also provided to customers

having min. balance of Rs.10,000/- in their current account.
SAVING ACCOUNT
Saving deposit account is an ideal account for those who have money to save but cannot
profitably invest it anywhere else, as amount is too small.
Saving deposit is an important source of fund for commercial banks. It is opened to
encourage thrift among the persons of small means. Saving account is opened both in
local and foreign currency.
Withdrawal of Amount
The depositors are normally allowed to draw a limited amount of money only twice a
week. If a customer wants to withdraw a large sum of money, he then has to give a prior
notice of 7 to 15 days in writing to the bank.
The bank can safely invest the deposits of saving account, as it knows that only the
customer withdraws a small percentage of this account.
Remittance (Transfer of Money):

Demand draft (D.D)
Pay Order (PO)
Rupees Traveler Cheque(T.T)
Mail Transfer(M.T)
Modes of Remitting:
Through cheque
Through cash
Through letter of instruction(authority letter)
- 46 -
4. CASH AND DEPOSIT DEPARTMENT

As name implies this is a preliminary deal with the cash, which involves payment of
cheques issued by the customer and receipt of the cash deposited by the customer and
receipt of the cash deposited by the customers in their accounts. The procedure involved
in payment and receipt of cash is given below.
Cash payments:
Payment of cash to customer involves the following procedure:
1. The cheque is presented to the cashier first, who takes care of following
precautions:
a) It should not be out dated.
b) There should not be any crossing on it, if so the signature should be with
cutting.
c) Two signature of the customer receiving the cheque should be in the back of
the cheque.
d) There should not be any difference between the amount and figures
e) It should not be crossed.
2. The cheque is entered in the computer by the cashier and customer account is
debited.
3. If the amount of the cheque exceed the customer balance in that account a note
regarding this will automatically appeared on the computer screen. Such entries
are immediately scratched.
4. Finally the cheque goes to the officer, who first, checks the signatures, whatever it
is according to the specimen signature card, he will also check the conditions
mentioned in no.1. If he has any doubt he will reject the transaction. Otherwise he
authenticated the transaction and sign on the cheque.
5. The cheque is finally returned to the cashier for payment.
6. If the cheque is dishonored due to any reason Rs.200 is deducted from the account
of the customer as a penalty for that return.
- 47 -
7. At the start of next day all the cheques, which are honored by the bank on
previous day, are sent to account department for permanent record.
Debit Cash Vouchers:

When the cash is deducted from a certain account by the instruction of bank, a debit cash
voucher is prepared. Debit cash voucher must be signed by the two responsible bank
officers with the reason for deduction of cash mentioned on it. Usually debit cash voucher
is prepared for the payment of expenses like salary of clearing staff, payment of demand
draft etc.
Cash Paid Register:

When all the cheques are paid then all entries regarding payment of cash is entered if the
cash paid register by the cashier & total payment during the day is computed. This sum is
then subtracted from the opening balance of the cash. The responsible officer then
verifies all these entries.
Receipt of Cash:
Receipt of cash involves the following procedures.
1. All the cash is deposited on a specific deposit slip. The depositor has to mention
specific deposit account number, name of the account holder and the amount
which he wishes to deposit in his account on this slip.
2. This slip is presented to the cashier along with the currency note, he count the
notes and stamp the slip with cash received if he is satisfied, then he enters the
slip in the computer by crediting the account.
3. Finally the Trans action regarding deposit of cash is authenticated by the
responsible officer and put his signature on the slip. Now the transaction is
permanently stored in the computer.
4. At the start of next day all deposit slip of the previous day is sent to accounts
department for permanent record.
5. CREDIT DEPARTMENT
- 48 -
INTRODUCTION:
The credit department plays a key role in a bank it earns considerate income in form of
mark up on its advances.
SECTIONS:
The credit department has been sub-divided into following sections:
1. Credit Marketing
2. Credit administration & Monitoring
3. Mortgage
1. CREDIT MARKETING
The main function of this department is to market a customer for the bank.
Credit Policy of the Bank:

The credit policy of any banking institution is the combination of certain globally and
locally accepted time standards and other dynamic factors dictated by realities in everchallenging market and industry.
The extension of a credit facility should add value to the banks assets should be borne
by the bankers. For this purpose the bank takes special care for judging.
1. Ability to Repay
2. Willingness to Pay
Steps Taken in Advancing Loans:

The following are the steps taken in advancing loans to its borrowers;
When customer is marketed, the officer takes a sort of interview from its
prospective customer.
- 49 -
The request is written form is received and a visit report is prepared.
If viable, the request is given to the credit officer.
Then the bank request is given to the credit officer.
Then the bank requests the SBP to provide him the CIB report of the customer.
If irregularity occurs the proposal is returned to the customer for

regularization/rectification, and if not then CLP (credit line proposal) is prepared.
2. CREDIT ADMINISTRATION & MONITORING

The credit administration & monitoring department performs many functions. Some of
them are:
a) Perfection of securities
b) Perfection of legal documentation
c) Management information system (MIS)
d) Ongoing monitoring of account
e) Facilities provided by the bank
3. MORTGAGE
Its means:
A mortgage is the transfer of interest in a specific immovable property for the purpose of
securing money advanced by the way of loan, an existing of future debt.
Condition:
The main condition for mortgage is that only the immovable property can be secured. The
lending of money on real estate (immovable property) is not very popular with most of
the commercial banks. However in the last few decades the loan on real estate is growing.
Difficulties Faced By the Bank In Case Of Mortgage:
- 50 -
The bank has to lock their funds in the loans having long-term maturity. The loans on real
estate lack liquidity. In case of their default, there are no organized markets where that
property and amount recovered to pay off the loan. Since other for unpopularity are as
under:
Legal hindrances
Heavy expenses of legal mortgage
Lack of liquidity
Difficulty in valuation
Delay in recovery of loans
Finding of tenants and their repairs costs
Preliminary inquiries for advances against mortgage:

To secure its position, the bank takes into account the following inquires in case of real
estate:
Proper valuation of real estate
Inquiry about title to property
Preparation of title deed
Search for prior charges
6. ACCOUNTS DEPARTMENT
INTRODUCTION:
The accounts department deals with various routine activities for the bank. The main
activities performed by it are:
- 51 -
Budgeting
Reporting
Maintenance & depreciation of fixed assets
BUDGETING
Accounts department of a bank, for a year makes budget of every branch. Fiscal year of
bank starts from January and ends on December. The accounts department starts
preparing budget from October the next year.
PROCEDURE:
The budget is based on forecasting through past performance.
First of all, the bank reviews what are its sources of funds and where it can utilize
these funds.
The main sources of the bank are deposits, securities issued by the bank,
borrowing from other banks, borrowing from SBP, banks paid-up capital, its
reserve fund, profit generated by the bank.
The bank may employ these funds in lending to others at a high rate of mark-up.
Investment in securities, placement in inter-bank markets etc.
It also takes into account the income from other sources, cost of funds,
administrative expenses, and utilities expenses.
Then the budget is submitted to the head office for recommendation and
modification.
Monthly budget meeting is held by branch managers to analyze the monthly

performance. Budget and actual performances are employed and variance is
computed for analysis.
Variance can be negative or positive. Variance does not mean that it will have
positive effect on the overall profitability e.g. positive increase in deposits is not
always coupled with positive increase in advances.
The management will then drive the reasons for the variance and take remedial
measures to achieve the targets.
- 52 -

REPORTING
The accounts department in the form of reports clubs and details of various departments
together, each and every minute detail is provided in weekly, monthly and annual reports.
The reports are submitted to head office, SBP and to the government.
Kinds of Reports
Following reports are prepared by the accounts department on daily basis:
Statement of affairs
Income & expenditure
New FCY report
Royal profit report
Subsidiary statement
Currency wise deposits report
Following are the reports that are prepared on the basis of reports granted from
mainframe. These are very important for proper analysis and feedback.
Daily advance and deposit position
Daily exchange position
Daily fund management
Closing Reports
Monthly assets & liabilities
Monthly budget review report
Monthly monitory statement
Monthly performance review report
Schedule of maturity distribution
- 53 -
MAINTAINING OF FIXED ASSETS & THEIR DEPRICIATION

Accounts department maintains the record of all the assets and charges depreciation on
them. The bank normally uses the straight-line method to compute the depreciation.
Department prepares asset purchase report and asset sale report after every 6 months that
helps in changing the depreciation. It is calculated on monthly basis and charged yearly.
Bank not only depreciates the existing assets but also the assets but also the assets
transferred in and transferred out. The rate of depreciation for different fixed assets is as
follows:
Equipment
20%
Building
2.5%
Vehicles
25%
Furniture
10%
Carpets & curtains
25%
WORK DONE BY ME
In the United Bank Ltd, I really enjoyed working with the staff of Bank Road Branch
from 2nd august to 13 September 2011. During my six week training, it was
almost impossible to work in all the departments within that limited time.
But on my request, they staff of the branch provided me the opportunity to
work in the different departments for the sake of practical knowledge. I feel
highly grateful to work in the Bank Road Branch on the request of the
manager of that branch Sir Zahid Sahib, because I learnt a lot in that branch.
During my internship training in the United Bank of Pakistan as I early mentioned that I
have worked in different departments & seats and learnt the followings.
First & Second week
- 54 -
RCECIPTION COUNTER / ACCOUNT OPENING DESK (AOD)

Initially I started my training by filling the deposit slips, cheques and demand drafts
forms, pay orders forms, online forms, and cheques book requisitions etc. of the
customers. And also provide information about the bank which is in my knowledge to
both customers and walking customers. And then I worked on the:
ACCOUNT OPENING (Policies and Procedures)

In second step I learned about the policies and procedures of the account opening form
first of all I would like to discuss about the account?
Definition of the Bank Account

A bank account is the establishment of a relationship between a customer and a bank
TYPES OF THE ACCOUNTS
Following are the types of the account which are performed in the UBL;
Individual accounts
Joint account
Proprietorship account
Private limited company accounts
Public limited companies accounts
Trust accounts
Liquidators accounts
Societies, Associations and Clubs etc
Local bodies accounts
Autonomous and Semi Autonomous Institutions
- 55 -
Local /District Zakat/Usher Committees.

Accounts of Govt. Departments
Account Opening Form

Account opening form is the document that carries:
The details of a customer
The terms and conditions applicable to the relationship
Signature /thumb impression of the account holder
General terms and conditions applicable to the operating of an account specified
by the bank
UBL Account Opening Form See Annexure

SALIENT FEATURES OF UBL AOF:
Introduction:
Every account must be introduced by an existing account holder of the bank or an
account holder of another bank provided that the signature of such account holder are
verified by his/ her bank. Staff can also introduce.
Documentation:
Different types of accounts require different documents to be submitted to establish a
relationship. In case of individual accounts only a copy of the CNIC or valid passport are
considered sufficient.
A Multipurpose Account Opening Form is used for:
Current account
- 56 -
PLS saving bank account
PLS Unisaver
PLS SNDR
PLS Certificate of Deposit(COD)
Call Deposits
FC Saving Accounts
FC Current Accounts
Policies:
1. All customer accounts will require proper introduction either from UBL staff (og-3 and
above) existing customer of branch/ bank or of another bank. An employee of the branch/
bank introducing the account must know the account holder and must possess sufficient
information on the new account holder.
2. The signature of introducer, if not holding account at branch, must be verified from
another branch/bank prior to issuance of Cheque book.
3. Initial deposit required for opening of account is Rs. 100/4. Account opening form shall be filled in by the account holder in duplicate. The branch
will retain original while the copy returned to the customer against acknowledgment.
5. Letters of thanks shall be set to both the account holder ad introducer (if other than
banks own staff) for correctness of address and genuineness of introduction.
6. Name and address of nominee (next of kin) must also be obtained in the case of a
individuals account.
7. Blank columns in AOF &SS card must be crossed or marked VOID
- 57 -
8. PLS Savings accounts shall be opened for individuals (Single or Joint), Charitable
institutions. Provident and other Benevolent funds
9. PLS Savings accounts shall not be opened in the names of illiterate Pardah nashin
Ladies. Local Bodies, Autonomous Corporations, Companies, firms or other institution
except their provident fund and Benevolent Funds Accounts.
10. In case of illiterate person, the introducer shall also verify the thumb impression on
the AOF
11. In case CNIC does not contain photograph, photocopy of ay other document such as
passport /driving license etc containing photograph shall be obtained
12. Government accounts shall be opened with approval of competent authority of
concerned Division //department and endorsement of finance Division
Documentation And Requirements:
Individual/joint and Sole proprietorship:

Declaration Form No. I (Mandate or authority form) for operating of account by a
AOD person
Illiterate persons account with Thumb Impression shall be discouraged unless
unavoidable, however proper identification duly supported by two attested
passport size photographs must be obtained from the customer and attached to
AOF and SS card besides taking his right and left thumb impression o the SS
card.
Letter of undertaking shall be obtained from illiterate customer to the effect that
he shall to operate o the account unless he/she personally comes the bank and puts
- 58 -
his thumb impression on the cheques in the presence of the AM/AOM/BM/OM r

CD//SVB Supervisor.
The sole proprietor of the trading concern shall sign the Declaration Form II
(Provided on the mandate form) through which he /she can also delegate the
account operation authority to any other person to operate on the account.
Joint account to be operated by either or survivors or Jointly
In case of minor account, the guardian only shall sign the AOF.
Account in the name of minor shall not be opened unless his guardian opens it in
the following form, preferably as savings Deposit account., For example Ahmed
Ali (minor ) Jaffar Hussain (Guardian)
Birth certificate is required in case of minor
in case, the CINC of pardah nashin lady does not contain photograph , in addition
to CNIC, any other document such as drivers license or passport that contains a
photograph should be obtained
Clubs, Association, Societies, Charitable Organizations

Certified copies of Certificate of Registration and By- Laws/ Rules &
Regulations
An undertaking signed by all the authorized persons on behalf o the institution on
the account, the banker will be informed immediately
Certified copy of the resolution passed by the Governing body/Executive
Committee/Managing/Working Committee of the Society/Club or Association
authorized person to operate the account
Attested copy of the identity card of the authorized persons shall be obtained
List of Members of the Executive/Managing/Working Committee
No Club, Association , Societies& Charitable Organizations account shall be
opened without prior permission from the Head Office
- 59 -
Declaration Form No III shall also be signed on mandate form/
Partnership Account
Partnership declaration No IV on the Mandate Form duly signed by each partner
under companys stamp
Attested photocopies of CNIC of all partners
Attested copy Partnership Deed duly signed by all the partners of the firm
Attested copy of Registration Certificate with the registrar of Firms
I case the partnership is unregistered, this fact should be clearly mentioned on the
AOF
Authority letter, in original , in favor of the person authorized to operate on

account of the firm
Partnership deed executed on stamped paper if formal agreement has been drawn
up, which must include the under noted information:
Names of all partners;

Partner powers to instruct bank on financial maters and operation of
account
Dissolution of partnership/Death of partner etc

Joint Stock Companies
Account Opening form completed in all respect and signed under
company stamp
Certified copies of:
Resolution of board of directors for opening of account
specifying the person authorized to operate the company account
Memorandum and article of Association
Certificate f incorporation
Certificate of commencement of business
- 60 -
Attested photocopy of identity card of all the director s

List of directors corresponding to the one printed in the memorandum and
article and association
All subsequent changes, addition/deletion of directors evidenced by letter
or certificate issued by Registrar of companies
All document to be signed under company stamp
Trust Account
Attested copy of certificate of registration
Attested copies of CNIC of all the trustees
Certified copies of instrument of Trust
No trust account shall b opened without prior permission from the head office
Executive and Administrators

Attested photocopy of CNIC of the Executor/Administrators
Certified copy of letter of Administration or probate
Accounts of Executors Administration shall not be opened without t prior
permission from the Head Office
All the Executors/Administrator shall sign the AOF, if more than one to whom
probate has been granted
- 61 -
The probate or letter of administration shall be duly registered at the branch

Clear instructions under the signatures of all the executors and .or Administrators
shall be obtained to determine as to which of the Executors or Administrators
shall operate the account
Bank shall not accept any power of attorney or authority letter given by the
Executors or Administrators to third parties to operate the account
Procedure;
Following are the things/procedure which is performed in the banks that I observed and
also practically done:
The customer visit the bank
the AOD(Account Opening Desk) officer explains the requirements with respect
to account type desired by the customer
The officer also explains the minimum account balance requirement and
documentation required to open the account the customer
The AOD officer hands over the Account Opening From, SS card, Claque Book
Request form to the Customer.
The AOD officer also offers the ATM/UB online application form to the customer
The customer fills in the Account Opening Form, Cheque Book Request ,ATM&
UB Online Request, SS Card and submits relevant documentation as per banks
Requirement
- 62 -
the AOF and other document should be signed by the customer in the presence of
AOD officer designated to open the account
The customer provides original CINC/Passport along with the photocopy for
attestation / verification to the designated officer. The original documents are
returned to customer after verification/attestation
The AOD officer scrutinizes the AOF ,other documents and SS CARD, Blank
spaces on AOF and SS card are crossed out or marked VOID
Ensure that the account-operating instructions are clearly defined and specified
The AOD officer interviews the customer to ensure genuineness of the
information provided
If signature of introducer not holding the account at branch forwards the request
to respective Branch /Bank for verification
Issue the Cheque book after Verification received from the respective
Branch/.Bank
The AOD officer ensures that the documents are complete in all respect, otherwise
if any document is missing or incomplete should be referred to the AM/BM for
deferral approval
If deferral is approved, it should be recorded in the register maintained with the
AOD officer and monitored by the AOM/BM/OM.
The AOD officer/supervisor approves the AOF
The missing/incomplete document must be completed by the designated officer at
an early date and submitted to Hub
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The Regional Operations Head on monthly bias shall submit repot of all pending
deferral cases at Hubs to Country Operations, Head Office.
Due to computerized branch the AOD officer used the following the steps
Go to the maintenance option then to the Customer Account and then

Open Account
The AOD Officer also scans the SS card and files it in the sequential order
in the card box
The AOD officer forwards the AOF, the documents and SS cared to the
HUB for record keeping
The AOD officer fills in the deposit slip for initial deposit and hands it
over to the customer
The customer deposits the cash with the teller
The teller receives the cash from the customer and stamps Received
cash on both portions of the pay in slip and post in active ledger
Initial deposits is noted on AOF
The letter of Thanks is prepared by the AOD officer and mail to customer and
introducer
If the letter of thanks returned then call to customer and verify the customer
address and mailed the letter again
The returned letter of thanks shall be entered in a register and filed with the AOF
ISSUANCE OF CHEQUE BOOK

Introduction:
To facilitate the customers to withdraw cash from their accounts or to settle their financial
obligations, Cheque book is provided to account holders. Cheques drawn by customers
- 64 -
have legal implications under Negotiable Instruments Act; therefore all the best
precautions must be exercised in the safe custody of the Cheque books
POLICY:
1. Cheque books against new account should be issued against instruction on
account opening form/authority letter signed by the customer and after the
account opening form is completed in all respect and approved by the designated
officer the Cheque book request should be processed
2. Cheque book against an already existing account would be issued only against the
Cheque book requisition extracted from the previous Cheque book else upon
receipt of customer written request incase If the prior is lost
3. The designated officer/ Teller on receipt of Cheque book requisition/request letter
shall writes date of receipt and time and checks the cheque book disposal
instructions, whether cheque book shall be collected:
Personally
Through Authorized agent
Should be dispatched through courier
If no instruction is given it shall be deemed that the cheque book shall be
collected personally or through an authorized agent
4.
Separate folio in the cheque book register shall be allotted for current /saving
account cheque books of different leaves i.e. of 25,50,100 etc.
Third & Fourth Week
PROCEDURE FOR ACCOUNT TO ACCOUNT TRANSFER (Against cheque)
- 65 -
Transfer involves transaction to be settled between the customers of the same branch or
customer of remote branch in case of authorized UniRemote system user (online) branch
The Teller receives cheque from depositor along with the deposit slip
The Teller scrutinizes cheque and deposit slip for any discrepancy and confirms :
Cheque is signed and in favor of account holder ,endorsed or bearer
Cheque and deposit slip amount agrees
Details and amount on both parts of deposit slip tally
Cheque is not stale /post dated or mutilated
Alteration / cutting addition on cheque, if any is authenticated by the

drawer and on deposit slip by depositor
Cheque is drown on t he same branch or remote branch .in case cheque is

drawn on remote branch ,confirms drawee branch is online
Deposit slip is signed by the depositor
The Teller verifies signature , title of account (if mentioned on cheque and
number and posts debit transaction against balance available in unibank system
using any of the following two options:
Teller confirms beneficiary account name and number and posts credit in
the customer ;s account using Unibank system
The teller affixes Transfer and branch stamp, signs and delivers receipt to
the depositor
the Teller affixes bank crossing stamp on the face of the cheque and
endorsement is signed by the supervisor
Fifth Week
REMITTANCE DEPARTMENT:
- 66 -
Remittance (transfer of money)

Demand draft (D.D)
Pay Order (PO)
Rupees Traveler Cheque(T.T)
Mail Transfer(M.T)
Modes of Remitting
Through cheque
Through cash
Through letter of instruction(authority letter)
ISSUANCE OF PAY ORDER:

1. Request for issuance of pay order shall be received on our standard
application remittance form. Customers written request shall fill in the
following details:
Name of beneficiary
Amount of Pay Order
His address and telephone number
Shall attach photo copy of CNIC which shall be compared with

original before attestation
2. If our bonafide account holder, his signature on the prescribed place with
account number shall be obtained.
3. the cash officer / teller shall check remittance form ensuring that all
required information is provided and it is signed
4. charges as per effective SOC(schedule of charges) shall be applied
5.
if pay order is to be issued against cash , amount of pay order and charges
shall be received in cash after proper counting
Cash officer /teller shall affix Received cash stamp (preferably red ink pad
should be used) & sign (preferably in red ink) in acknowledgement of having
- 67 -
received amount of pay order and, Amount of pay order shall e written in figure
and amount of chares shall be circled
6.
in case cheque is tendered along with remittance form, debit voucher for the
charges shall be prepared and both cheque and debit voucher shall be posted in
the ledger /system , subject t the availability of clear / effective credit balance and
transfer stamp shall be affixed on both vouchers
ISSUANCE OF DEMAND DRAFT:

Request for issuance of Demand Draft shall be received on our standard
application remittance form. Customers written request shall fill in the following
details:
Name of beneficiary
City where it is to be drawn
Amount of Pay Order
Mode of payment
His address and telephone number
Shall attach photo copy of CNIC which shall be compared with original
before attestation
Signature of the applicant
If our bonafide account holder, his signature on the prescribed place with account
number shall be obtained
The cash officer / teller shall check remittance form ensuring that all required
information is provided and it is signed
Charges as per effective SOC(schedule of charges) shall be applied
- 68 -
If Demand Draft is to be issued against cash , amount of Demand Draft and

charges shall be received in cash after proper counting
Cash officer /teller shall affix Received cash stamp (preferably red ink pad
should be used ) & sign (preferably in red ink )in acknowledgement of having
received amount of Demand Draft and ,Amount of Demand Draft shall e written
in figure and amount of chares shall be circled
In case cheque is tendered along with remittance form, debit voucher for the
charges shall be prepared and both cheque and debit voucher shall be posted in
the ledger /system , subject t the availability of clear / effective credit balance and
transfer stamp shall be affixed on both vouchers
Last Week
CLEARING DEPARTMENT:
Clearing is a system available in banks to collect the proceeds of cheques / others
instruments (PO, DD etc,) on behalf of customers from the drawee (paying) banks
situated in the same city. Collecting bank acts as an agent of the customer,
maintained with collecting banks
OUTWARD CLEARING:
o Instruments /cheques drawn on other banks are deposited at UBL counters
o UBL account holders are the payees/ beneficiaries of the instruments
/cheques
o UBL is the Collecting Bank and other banks are paying banks
o UBL customer accounts are credit as a result of outward clearing
INWARD CLEARING:
- 69 -
o Instruments /cheques drawn on UBL are deposited at other banks

counters
o UBL account holders are the drawers of the instruments /cheques
o UBL is the paying banks k and other banks are Collecting banks
o UBL customer accounts are debited as a result of inward clearing
BENEFITS OF CLEARING:
No physical transfer of money
Saves time and effort
Minimizes the use of cash
Security to the banking system/customer
Promotes trade and commerce
Encourage acceptability of cheques and other instruments
PROCEDURE FOR OUTWARD CLEARING
The Teller receive deposit slip and cheques drawn on any other bank /UBL
branch in the city and scrutinizes deposit slip /cheques for the following:
1. Amount of cheques agrees with amount on deposit slip
2. Amount in words /figures on cheque /deposit slip agree
3. Cheque is bearer, in favor of account holder or endorsed
4. Crossing and clearing stamps if preciously affixed are cancelled
5. Cheque is not stale /post dated / out dated
6. Cutting /alteration /addition on cheque , if any are authenticated by drawer
7. Details on both part of deposit slip tally and bear depositors signature
8. Deposit slip bears same days date otherwise date should be corrected and
authenticated by the depositor
- 70 -
The teller affixes bank crossing and (next working days) clearing stamp on
the face of the cheque, and endorsement stamp on the reverse
The Clearing /Transfer delivery cheques are entered in Unibank system under
single entry option or batch entry option
The unibank system requires posting and value date entered beside the
following Customer a/c number, drawee bank /branch code, cheque
number and amount
Endorsement on reverse of instruments is signed by the supervisor /officer
The funds against the cheque deposited are made available to the customer the
same day or on next day depending upon the nature of clearing that is
special or normal
A detailed clearing register , schedule and summary will be generated from
the Unibank system which contains all the details of each and every
instruments /cheque such as:
Cheque number, amount of each cheque, drawee bank name, branch name.
National Institutional Facilitation Technologies (Private) Limited (NIFT)

The clearing schedule summary , schedule after balancing and
preparing bundles of cheques and attaching add listing is to NIFT , in
satchel, against acknowledgement as per NIFT requirement
The NIFT after clearing provides IBCA for net amount i.e. precede of
cheques delivered less cheques dishonored (if any )
- 71 -
Financial Analysis
Financial statements like an income statement and balance sheet provide the more
significant information about the position of business and the result of its operations. The
parties that are more interested to know the result and financial position of the company
are:
Stockholder of the Company
Management of the Company
Creditors such as Banks and Other Financial Institutions from those
Companies have borrowed short, medium and long term funds.
Government agencies such as income tax department.
Employees of the Companies.
General Public including students and researcher.
Generally, above mentioned parties are interested to know
Solvency position of the Company
Stability of the Company
Profitability
- 72 -
Comparisons and analysis can be made on a number of different bases. I have analyzed
the financial statement of the United Bank Limited by using the following methods:
Financial Analysis (Ratio Analysis)

General Analysis
Specialized Analysis
- 73 -
United Bank Limited

Balance Sheet
As on 31st December, 2011
- 74 -
United Bank Limited

Profit & Loss Accounts
For the Year ended on 31st December, 2011
- 75 -
- 76 -
Ratio Analysis
Ratio means one number expressed in term of another a ratio is statistical yardstick by
mean of which relationship between two or various figures can be compared or measured.
Here we are going to explain the ratio analysis of UBL (bank) which is little bit different
from other organizations.
Bank ratio analysis is little bit different from other organizations and if we want to see the
real picture of a bank we have to focus on given special ratios.
1. Specialized Analysis
2. General Analysis
Solvency Ratio
Profitability Ratio
1. Specialized analysis:
Earning Assets To Total Assets
Return On Earning Assets
Net Margin To Earning Assets

Loan Loss Coverage Ratio
Deposit Time Capital
- 77 -
Deposit To Total Asset
2. General analysis:
Solvency Ratio
Profitability Ratio
Market ratio
Solvency Ratio
Debt Ratio
Equity to total assets
Debt to Equity Ratio
Profitability Ratio
Return on Assets
Return on Equity
Market ratio
Dividend Yield Ratio
Dividend Payout Ratio
Retention Ratio
Earnings Per Share
- 78 -
Book Value Per Share
- 79 -
SPECIALIZED ANALYSIS
1. Earning Assets to Total Assets
EARNING ASSETS
* 100
TOTAL ASSETS
Earning assets
2010 (in thousands)
2011(in thousands)
Cash and balance with treasury banks
67667226
86502444
Balance with other banks
26430928
19225488
Financing
11934778
9536211
Investment
231717214
301106877
Performing
326441450
329962911
Non-performing
15068962
11176608
Total earning assets
679260558
757510539
Total Assets
726422551
807204788
Advances
2010
679260558 /726422551 *100 = 93.5%
2011
757510539 /807204788 *100 = 93.8%
- 80 -
Year
2010 (000)
2011 (000)
Earning Assets
679260558
Total Assets
726422551
807204788
Ratio
93.5%
93.8%
757510539
Interpretation:
Earning assets to total assets is the activity ratio of the bank. It shows how effectively
bank puts its assets into work. Increasing trend is favorable. The efficiency of the banking
firm is measured by its ability to utilize its assets in a manner that they could be
profitable for the firm. Bank earning assets are increasing as compare to last year but it is
just a little bit increase. This ratio is acceptable as its shows increasing trend from
previous year (0.3% higher than previous year). Means bank works more effectively this
year. But still need to put more efforts because of though competition in respect of
Islamic banking
- 81 -
2. Return on Earning Assets :

=
NP BEFORE TAX
2010
100
EARNING ASSET
AASAAAAASSETS
17688623 / 679260558 *100 = 2.604%
2011
23633636 / 757510539 *100 = 2.928%
Year
2010 (000)
2011(000)
Earning Assets
679260558
757510539
Net Profit before tax
17688623
Return
2.604%
23633636
2.928%
Interpretation:
It shows the quality of earning assets. Increasing trend is favorable. This ratio is favorable
as it shows increasing trend. Its shows earning assets performing so well as compare to
the last year (as it shows 0.324% increase).Return on earning assets is increased as
compare to previous year because there is increased in net profit in 2010 as compare to
2011. The increasing trend in this ratio is beneficial for business and investors because
this ratio shows real profitability position of business.
- 82 -
3. Net Margin To Earning Assets :

=
NET MARGIN
100
EARNING ASSETS
2010
34838226 / 679260558*100 = 5.129%
2011
40034742 / 757510539 *100 = 5.0%
Year
Earning Assets
Net Margin
Ratio
2010(000)
2011 (000)
679260558
757510539
34838226
40034742
5.129%
5.0%
Interpretation:
Spread is difference between interest income and interest expense. This ratio shows the
spread position of a bank. Net margin to earning assets shows how effectively bank
control the spread mark up revenue over mark up expenses. In our case the ratio is not
good as it shows a decreasing trend (.129%). It means mark up revenue decrease against
mark up expenses.
4. Loan Loss Coverage Ratio:

PRE TAX INCOME + PFNPL
=
NET CHARGES OFF + PFNPL
- 83 -
2010
(17688623+304026) / (1007896+304026) = 13.715
2011
(23633636+412115) / (340416+412115) = 31.952
Year
2010 (000)
2011 (000)
Pre Tax Income
17688623
23633636
304026
412115
1007896
340416
Provision for non performing

loan
Net Charges Off
Ratio
13.715
31.952
Interpretation:
Loan loss coverage ratio shows how much protection available to depositor against their
amount invested in the bank. Increasing trend is favorable. Ratio is higher than the
previous year. This shows a positive sign. It may be a cause of customer switching from
other banks to UBL.
5. Deposit Time Capital:

DEPOSIT
=
2010
EQUITY
567611258 / 75134180 = 7.555 times
- 84 -
2011
633889416 / 85920646 = 7.378 times
Year
Total Deposit
Equity
2010 (000)
2011 (000)
567611258
633889416
75134180
Ratio
7.555
85920646
7.378
Interpretation:
Deposit time capital is two folded ratio. Both increasing and decreasing trend are
favorable. Increasing trend shows efficiency of the bank where decreasing trends shows
good solvency of the bank. In our case it shows a decreasing trend means bank increase
its equity 0.177 times as compare to its previous year.
6. Deposit To Total Asset:

DEPOSIT
=
TOTAL ASSET
2010
567611258 / 726422551 = 0.781
2011
633889416 / 807204788 = 0.785
- 85 -
Year
Total Deposit
Total Asset
Ratio
2010 (000)
2011 (000)
567611258
633889416
726422551
807204788
0.781
0.785
Interpretation:
Deposit to total assets shows how much assets are financed through deposit. It also a two
folded ratio. Both trends are favorable. Increasing trend shows increment in deposits
where decreasing trend (.004) shows more assets are financed through deposits.
General Analysis
Solvency Ratio
TOTAL DEBT
1. Debt Ratio
TOTAL ASSET
- 86 -
2010
651288371 / 726422551 = 0.897
2011
721284142 / 807204788 = 0.894
Year
2010 (000)
2011 (000)
Total Debt
651288371
721284142
Total Asset
726422551
807204788
0.897:1
0.894:1
Ratio
Interpretation:
The Debt Ratio is a financial ratio that indicates the percentage of a company's assets
that are provided via debt. It is the ratio of total debt (the sum of current liabilities and
long-term liabilities) and total assets (the sum of current assets, fixed assets, and other
assets such as 'goodwill'). In this Assets like balance with other banks, advances, lending
to financial institution decrease by 0.003.
2. Equity Ratio:
TOTAL EQUITY
=
TOTAL ASSET
2010
75,134,180 / 726422551 = 0.103
2011
85,920,646 / 807204788 = 0.106
Year
2010 (000)
- 87 -
2011 (000)
Total Equity
75,134,180
85,920,646
Total Asset
726422551
807204788
0.103:1
0.106:1
Ratio
Interpretation:
The Equity ratio is a financial ratio indicating the relative proportion of equity
used to finance a company's assets. The two components are often taken from the
firm's balance sheet or statement of financial position (so-called book value), but
the ratio may also be calculated using market values for both, if the company's
equities are publicly traded. In this year Total equity increase by 10786466 and in
percentage Increase by 0.003.
3. Debt To Equity Ratio:

TOTAL DEBT
=
TOTAL EQUITY
2010
651288371 / 75134180 = 0.897
2011
721284142 / 85920646 = 0.894
Year
2010 (000)
2011 (000)
Total Debt
651288371
721284142
- 88 -
Total Equity
Ratio
75,134,180
85,920,646
8.668:1
8.395:1
Interpretation:
The debt to equity ratio (D/E) is a financial ratio indicating the relative
proportion of shareholders' equity and debt used to finance a company's assets.
Closely related to leveraging, the ratio is also known as Risk, Gearing or
Leverage. In this ratio Debt decrease as compare to last year which decreases by
0.273.
Summary:
Name of ratio
Debt ratio
2010
0.897:1
2011
0.894:1
Result
decrease by
Reason for changes

Assets like balance
0.003
with other banks,

advances, lending to
financial institution
Equity ratio
Debt to equity
0.103:1
8.668:1
0.106:1
Increase by
decrease
Total equity increase
8.395:1
0.003
decrease by
by 10786466
Debt decrease as
0.273
compare to last year
ratio
- 89 -
Interpretation:
Solvency ratios show favorable result. As debt ratio decrease from previous year (which
is good). Equity ratio increase and debt to equity ratio is also favorable. So over its entire
solvency ratio show a positive sign and deposits increase.
Profitability Ratio
1. Return on Assets :
NET INCOME
=
TOTAL ASSETS
100
Year
2010 (000)
2011 (000)
Net income
11,020,925
14,887,113
807204788
Total Assets
726422551
Return
0.015:1
- 90 -
0.018:1
Interpretation:
1. The return on assets (ROA) percentage shows how profitable a company's
assets are in generating revenue.
This number tells you what the company can do with what it has, i.e. how many dollars
of earnings they derive from each dollar of assets they control. It's a useful number for
comparing competing companies in the same industry. The number will vary widely
across different industries. Return on assets gives an indication of the capital intensity of
the company, which will depend on the industry; companies that require large initial
investments will generally have lower return on assets. In this ratio net income increase
(11020925 to 14887113) 0.003:1.
2. Return on Equity :
NET INCOME
=
SHARE HOLDER EQUITY
Year
2010 (000)
2011 (000)
Net Income
11,020,925
14,887,113
Equity
75,134,180
85,920,646
Return
0.147:1
0.173:1
Interpretation:
Return on equity (ROE) measures the rate of return on the ownership interest
(shareholders' equity) of the common stock owners. It measures a firm's efficiency at
generating profits from every unit of shareholders' equity (also known as net assets or
assets minus liabilities). ROE shows how well a company uses investment funds to
- 91 -
generate earnings growth. ROEs between 15% and 20% are considered desirable. In this
ratio Net income rises up by 0.026.
Summary:
Name of ratio
Return on
2010
0.015:1
2011
0.018:1
assets
Return on
0.147:1
0.173:1
equity
Result
increase by
Reason for changes

net income
0.003
increase (11020925
increase by
to 14887113 )
Net income rise up.
0.026
Profitability ratios show a positive result because both return on assets and equity
increase as compare to previous year. It actually shows increasing trend in returns. Bank
is focusing on its operation to meet the requirement / expectation of owners.
Market ratio
1. Dividend Yield Ratio:
Dividend per share
=
Price per share
The dividend yield or the dividend-price ratio on a company stock is the company's
total annual dividend payments divided by its market capitalization, or the dividend per
share, divided by the price per share. It is often expressed as a percentage. Its reciprocal
is the Price/Dividend ratio.
2. Dividend Payout Ratio:
It is the fraction of net income a firm pays to its stockholders in dividends.
Dividend
=
Net Income
3. Retention Ratio:
- 92 -
It indicates the percentage of a company's earnings that are not paid out in dividends but
credited to retained earnings. It is the opposite of the dividend payout ratio, so that also
called the retention rate.
Net Income - Dividend
=
Net Income
4. Earnings per Share:

(EPS) is the amount of earnings per each outstanding share of a company's stock.
In the United States, the Financial Accounting Standards Board (FASB) requires
companies' income statements to report EPS for each of the major categories of the
income statement: continuing operations, discontinued operations, extraordinary items,
and net income.
Net income
=
Average common share
5. Book Value per Share:

A measure used by owners of common shares in a firm to determine the level of safety
associated with each individual share after all debts are paid accordingly.
Shareholder Equity-Preferred Equity
=
2010
Total Shares Outstanding

2011
Result
Reason for
changes
Name of ratio
Dividend yield
0.54
0.67
Increase by
ratio
Dividend
40%
48%
0.13
increase
Increase by 4 % Increase due to
payout ratio
Retention ratio
0.318:1
0.423:1
Increase by
new products
UBL increase
12.161
0.105
Increase by
retain earning
Increase earning
2.258
from last year
Earnings per
9.903:1
share
- 93 -
Dividend
Book value per
67.513
70.1856
share
Increase by
Book value of
2.673
the share
increasing from
last year
SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It
involves specifying the objective of the business venture or project and identifying the
internal and external factors that are favorable and unfavorable to achieve that objective.
During six weeks of my stay at United Bank Limited Bank Road Branch Dasks I have
come across the following SWOT analysis of the bank.
STRENGTHS:
1. Online Software:
UBL has its own online software which is very useful for the bank.
2. Larger Networks:
It has larger network with over 1375 domestic and 20 overseas branches most of them are
online.
3. Credit Rating:
- 94 -
UBL has good credit rating from JCR-VIS with A-+, in short-term and AA in longterm.
4. ATM:
The bank has the largest ATM Network across the country. The customers of UBL
withdraw access their funds any time at all the ATM Sites with UBL Wallet all the time
Cash you need.
Help line is available with the ATM. This is 24 hours to contact with head office at any
problem regarding ATM.
5. Business Risk Review Department:

UBL has Business Risk Review Department to monitor risk management processes
within the bank.
6. Banking Software:
UBL acquired a new consumer banking software FAIRIZER comprising 3
separate systems, 1 system each for consumer banking, 2 &3 credit initiation & recovery.
7. Automatic Operations:
The operations which are performed by the bank are automated. The customers are
completed reliably, efficiently and securely from their transactions.
8. Quick Funds Transfer:

UBL management is quite prepared to adopt the latest advancements in technology
resulting in revolution in the banking operations such as check clearing process,
computer based teller equipment, automatic teller machines, and electronic funds
transfers among the others.
WEAKNESSES:
In my opinions these are the points that might be harmful to the efficiency and
profitability of the bank.
1. Simple Graduates:
- 95 -
Employees are not well educated as compare to other banks. In UBL DASKA employees
are simple graduates which have no more knowledge of Banking.
2. Recruiting and Selection:

In UBL DASKA, no system of recruiting and selection. There is no HR department. Only
reference base jobs provided.
3. Credit Process:
In UBL DASKA the credit process and documentation procedure is very lengthy.
4. Promotions:
Promotions are at annual base and ignore the capabilities and performance output.
5. Unions:
In UBL DASKA I saw the unions. Employees make union and leg pull to each other.
6. Hr Department:
In UBL DASKA there is no HR Department for training and selecting employees.
OPORTUNITIES:
Apart from the ones discussed in External Factors Evaluation Matrix, the bank is facing
the following threats and opportunities currently:
These are positive external environmental factors effecting the organization.
1. MBAS Hires:
UBL has mostly simple graduates as in the market a lot of MBAs are unemployed. It is
very good chance to hire them as compare to simple graduates.
2. Own ATM Network:

UBL have well experienced IT programmer they can make their own ATM network like
one link and M.net.
- 96 -
3. Foreign Investment:
A large amount of foreign investment is attracted because of the rapid growth in business.
Foreign investors due to a steady growth in the business of UBL have started some
projects with the UBL.
4. Online Branches:
UBL has larger network but not all branches are online, if all branches become online
then its business will grow.
5. Expansion in Set Up:

UBL has a potential for growth because of vast expansion in its set up which is definitely
due to its increasing business and customer focus approach. It has helped the UBL to
expand its setup in country as well as abroad.
6. Increase in Customers:
There is a steady increase in customer deposits of UBL because of its better provision
of services and customer satisfaction approach. In the modern era, due to increasing
competition, it is necessary for every organization to retain its customers which is
only due to the better provision of services.
7. Overseas Operations
Due to reputed and well setup in local as well as abroad UBL has a well organized
overseas operation which shows that UBL is progressing by leaps and bound. It can
easily capture some part of foreign market share due to its better services to its
customer.
8. Branches in Rural Areas

UBL is providing its services not only in cities of the country but also in rural areas.
This thing has enabled UBL to increase its market share as well as customer.
9. Islamic Banking
- 97 -
Due to increase in market of Islamic Banking, UBL has opportunity to capture the
market share in Islamic Banking. In the modern era, it is important for every
organization to keep in view the Islamic rules and regulations while providing
services to its customers and UBL is definitely fulfilling this standards.
10. Import and Exports

Besides of its normal operations in local market, UBL has opportunity to build its
worth in financing for import and export.
11. Innovative Products

Due to competition, UBL has opportunity to come with new products to survive in
market. In this changing environment, to win the heart of the customers it is necessary
to introduce variety of products to retain the customers as well as capturing the
market.
THREAT:
1. Threat of Technology:
This is the era of competition; expansion with all good SFIs and banks with new
technology. It is threat for losing its market share. Promotion campaigns run by
competitors in TV, bill boards and news papers etc.
2. Competition:
Increase in competition due to increasing number of foreign and domestic private banks
offering highly specialized and attractive services.
3. ATM Network:
The ATM network has not its own thats why huge amount transfer into the ABN ambro
account.
4. Employees:
Well-experienced employees leaved UBL because they receive good offer from other
banks.
5. Political Environment:
Pakistani political environment is not stable which leave bad effect on all sectors.
- 98 -
6. High Employees Turnover:

As discussed above, the job satisfaction level of the employee is very low resulting in
high turnover, which is bad for any organization as there are huge monetary and nonmonetary costs involved in the fresh recruitments.
7. Less Attractive Rate of Return:

Commercial banks face considerable competition in attracting deposits from individuals
or small investors. In contrast, the Govt. of Pakistan national saving scheme offers
attractive rates of return.
8. Less Experienced Staff:

Due to huge turnover of the employees, the no. of experienced and well trained staff is
very low. Majority of the staff working in the UBL branches is quite young and
inexperienced. If the bank failed to bring down its high employees turnover, then it would
be lacking the most important resources of any organization i.e. the experienced staff.
Recommendation:
On the basis of SWOT analysis we see that the Banks strengths are more than its
weaknesses but still there is room for a lot of improvement and innovation.
I hope that these humble suggestions may be appreciated. These are as follows:
HR Department should be in UBL for recruiting and selecting, training to
employees because manpower is a big asset for an organization.
Management should be at merit and experience base.
The recruitment policy which is in UBL DASKA should be change.
Decentralization strategy should be. Some power also gives to the branches.
Should be customer oriented.
All branches should be online.
Branches should be rural areas.
- 99 -
Training session should be held for learning new technology and how to deal with
customers.
UBL should develop their own ATM network because ATM machine remain
disturbed in some cities.
Before allow issuing any loans the credit worthiness of the client is assured seeing
that they are past dealing with other banks in the area. This would certainly help
in deducing risk of default.
Should be given value and due importance to the customers who have continuous
interaction with the bank and have sound deposits in their accounts.
The attitude with the customer should be courteous and friendly manner.
All the branches should be equipped with modern facilities like tax consultancy,
interest and computers.
A qualified and skilled staff should be introduced and strategies should be
developed to divert to quality banking rather than quantity.
In order to improve the image of bank and create public awareness, bank
should establish separate Marketing department.
Should be separate counter with well-mannered trained employees for providing
guidance and every kind of information to customers.
Customer should be facilitated at the time of payment of utility bills to avoid rush
and mismanagement.
The management should work free from political pressure.
A plan should be developed to use professionally qualified new blood, relating to
finance and marketing.
All the unions should be removed from the branches.
Should be given incentives to employees for motivation.
- 100 -
Conclusion:
The conclusion of the report is that if we see the financial statements of UBL, we shall
come to know that is making progress by leaps and bounds. The profits of UBL and its
market share increased considerably during the last few years and this trend is expected
to continue into the future.
I conclude that UBL has a very prosperous presents and future, which assures the
maximization of shareholders wealth. Besides it, if the bank keeps in view the above
mentioned recommendations then it would be in such a situation that will really help it
towards the road of success and development.
- 101 -
With the above mentioned things, I think that there is also a drawback on the part of the
employees & customers and in order to make the proper working of the bank. The
customers should also cooperate with the bank which will help it to satisfy its customers
easily. It will also help the bank to compete with its competitors in the country as well as
on international level.
In the modern era of Globalization, it is necessary for every organization to keep in view
the element of Globalization because the ignorance of it will enable an organization to
move away from its journey of success. The role of government also plays a major role in
the success of a business when policies and procedures are made by it regarding every
sector.
GLOSSARY
Buying TT (Telegraphic transfer): This rate is used when someones relative has sent
any remittances from abroad to his family in Pakistan. It is also used in case of making
payment to foreign bank.
Clearing Agent: He is responsible to clear the goods shipped to the importer for the
import. These agents are required to be registered in customs. They are issued a license
which has a particular fee.
Collateral securities: are of secondary importance and will be kept under consideration
after prime ones.
- 102 -
Export Forwards: It is used when exporter has fear of rate of $ coming down in future.
And it is fixed in advance before shipment.
Import Forwards: It is used when importer has fear of rate of $ coming down in future.
And it is fixed in advance before shipment.
Letter of Credit (L/C): L/C is a commitment on the part of the buyers bank to pay or
accept draft drawn upon it provided such draft does not exceed a specified amount.
Payments against Document (PAD): It means when our bank open an L/C on the
request of importer in favor of exporter and our bank (importers bank/issuing bank) has
to make payment to the foreign bank (Exporters bank/Advising bank) against documents
which should fulfill the necessary requirements
Prime Securities: Those securities that have primary importance and will be sold by the
bank first in case of bankruptcy of the business.
Selling TT & OD (On Demand): This rate is used when someones relative is living.
BIBLIOGRAPHY
Websites Reference:
www.wikipedia.com
www.google.com.pk
www.ubl.com.pk
Live Interview:
UBL DASKA BRANCH (0666)
- 103 -

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UNITED BANK LIMITED DASKA

UNIVERSITY OF THE PUNJAB

COMMERCIAL BANKING IN PAKISTAN

PHASES OF BANK IN PAKISTAN

UBL PRESENT POSITION

PRESENT MANAGENT (BOD)

UBL DASKA BRANCH HEIRARCHY

DEPARTMENTS IN THE ORGANIZATION

ACCOUNT OPENING DEPARTMENT

ACCONT OPENING DEPARTMENT

CASH AND DEPOSIT DEPARTMENT

But they will never be forgotten

The Bank Means:

The Encyclopedia Of Banking And Finance Defined Commercial Bank

Comprehensive Definition Of The Bank Is:

Commercial Banking in Pakistan:

Phases of Banking In Pakistan

PHASE-1 1947-1974 Establishment of commercial banking system

PHASE-2 1974-1979 Nationalization of banks

PAHSE-3 1979-1991 Islamisation process

PHASE-4 1991-2011 Privatization process

FIRST PHASE (1947-1974)

Set Up Of Commercial Banking System:

Initial Position of Banking in Pakistan:

SECOND PHASE (1974-1979)

The nationalization of banks may be justified on the following grounds:

THIRD PHASE (1979-1991)

INTRODUCTION OF ISLAMIC BANKING:

FOURTH PHASE (1991-2011)

HISTORY OF THE UNITED BANK LTD

UBL TOGETHER WITH YOU TOWARDS A WORLD CLASS BANK

Our vision is to become a world class bank,

Become the most sought after investment, and

Be recognized as the employer of choice

United Bank Limited Present Position

PRESENT MANAGEMENT (BOD)

Mr. Atif R.Bokhari

STRUCTURE OF THE COMPANY

OFFSHORE BANKING UNIT:

President & CEO

Groups & Segments

UBL DASKA BRANCH

DEPARTMENTS IN THE ORGANIZATION

1. ACCOUNT OPENING DESK (AOD)

Definition of the Bank Account:

Types of the Accounts:

Private limited company accounts

Public limited companies accounts

Societies, Associations and Clubs etc

Local bodies accounts

Accounts of Govt. Departments

ACCOUNT OPENING FORM:

SALIENT FEATURES UBL AOF:

A Multipurpose Account Opening Form is used for:

PLS saving bank account

PLS Certificate of Deposit(COD)

Clubs, Association, Societies, Charitable Organizations:

No Club, Association , Societies& Charitable Organizations account shall be

Authority letter, in original , in favor of the person authorized to operate on

Names of all partners;

Dissolution of partnership/Death of partner etc

List of directors corresponding to the one printed in the memorandum and

Executive and Administrators: