INTERNSHIP REPORT

ON
UNITED BANK LIMITED
Dargai Branch

By
MUHAMMAD ILYAS
BBA (Hons) Marketing

DEPARTMENT OF MANAGEMENT STUDIES

UNIVERSITY OF MALAKAND
Session: 2012-2016
 DEDICATION

This report is dedicated to my Parents for their continuous and unconditional

love and praying; to Teachers for their guidance and to Friends for standing
with me in good and bad times and advising me on every path of life.

i
 Preface

Banking is the backbone of the economy of any country. In Pakistan, banks are now
getting the attention and support of the government, to nourish and initiate the
developmental projects in this Country. Banks have also attained a high level of
initiation, productivity, and growth, and development of our country,
One such bank with new policies and strategies pushing forth towards progress is United
Bank Limited, which has since its inception shown remarkable achievements and
discovered new avenues of innovative bank.
I have got the opportunity to have my two month internship in UBL Dargai Branch. I
acquired firsthand information about Consumer Banking of the bank.
Report writing is in fact a crucial exercise because the performance of a student is judged
through this report. I have tried my level best to cover every aspect of this specialized
banking activity, assess the working and performance of the Center and forward solutions
for its further improvements.
First of all I am thankful to Allah Who made me able to complete this report and then my
parents who prayed for my success. A number of persons have offered their help and
guidance in writing this report. I express my thanks to my supervisor Mr. Jawad Husain,
whose support and guidance make’s me able to write this report. I would also like to
thank to the other staff members of UBL, especially Branch Manager, and Operational
Manager who guides me and supports me very well, without whose support it was
impossible for me to do this tedious job.

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 Executive Summary

CHAPTER I: INTRODUCTION TO THE REPORT

Chapter-I consists of part Introduction to the Organization, which includes background,
purpose, scope, limitations, methodology and scheme of the report.
CHAPTER II: HISTORY OF UBL
Chapter-II consists of Organizational review Historical Background, General
Information, and Services of National Bank of Pakistan.
CHAPTER III: ORGANIZATIONAL STRUCTURE OF UBL
Chapter-III consists of organizational structure, services offered by UBL etc
CHAPTER IV: DEPARTMENTATION
Chapter-IV Consist on Deposit department, Cash department, Advances department
CHAPTER V: MARKETING OPERATIONS IN UBL
Chapter-V Consist On structure and function of marketing department,
Customer Service department
CHAPTER VI: SWOT ANALYSIS OF UBL
Consists on Strengths, Weaknesses, Opportunities and Threats.
CHAPTER VII: RECOMMENDATIONS AND ACTION PLAN
Consists on Recommendations and Action Plan

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 Acknowledgement

In completion of this work I am thankful to Almighty ALLAH, as I firmly believe,

without his gracious help; this accomplishment would not have been possible.
First and foremost, my deep appreciation, gratitude and indebtedness to my supervisor
Mr. Jawed Husain, for his continuous encouragement, moral support and generosity in
sharing his time and knowledge during my studies.

I wish to express my sincere gratitude to personnel of UBL, Dargai Branch, for their help
and guidance during my Internship.
Thanks to the constraints of academic protocols, that those who were and are always first
in my mind are being mentioned last. They are my parents and my loved ones. It is, I
believe, their sincere prayers, which were a constant source of strength and inspiration to
me that resulted in the completion of this work. I dedicate this work, blended in my
boundless love and affection, to them.

Muhammad Ilyas

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 Table of Contents
CHAPTER 1 ...................................................................................................................... 1
INTRODUCTION TO THE REPORT........................................................................... 1
1.1 BACKGROUND OF STUDY ................................................................................ 1
1.2 PURPOSE OF THE STUDY .................................................................................. 1
1.3 SCOPE OF WORK ................................................................................................. 2
1.4 LIMITATIONS OF STUDY .................................................................................. 2
1.5 METHODOLOGY OF STUDY/RESEARCH ....................................................... 2
1.6 LIMITATION ......................................................................................................... 3
1.7 SCHEME OF STUDY ............................................................................................ 3
CHAPTER 2 ...................................................................................................................... 4
HISTORY OF UNITED BANK LIMITED .................................................................... 4
2.1 GROWTHS AND HISTORY OF UBL .................................................................. 4
2.2 THE FIRST BOARD OF GOVERNORS OF UBL CONSISTED OF THE
FOLLOWING MEMBERS .................................................................................... 6
2.3 NUMBER OF BRANCHES ................................................................................... 8
2.4 JOINT VENTURE .................................................................................................. 9
2.5 ROLE OF UBL IN K.P.K. ...................................................................................... 9
2.6 Mission Statement of UBL ................................................................................... 10
2.7 Objectives of UBL ................................................................................................ 10
CHAPTER 3 .................................................................................................................... 12
ORGANIZATIONAL STRUCTURE OF UBL ........................................................... 12
3.1 UBL ORGANIZATIONAL STRUCTURE: ........................................................ 12
3.2 CONCEPT OF HUB AND SPOKES BRANCHES: ............................................ 14
3.3 DIVISION OF UBL’S OFFICE ........................................................................... 14
3.4 CONCEPT OF CONSUMER ASSETS CENTERS:............................................ 15
3.5 TOP MANAGEMENT AT THE HEAD OFFICE: .............................................. 16
3.6 SERVICES OFFERED BY UNITED BANK LIMITED ..................................... 17
CHAPTER 04 .................................................................................................................. 23
DEPARTMENTATION ................................................................................................. 23
4.1 Deposits Department ............................................................................................. 23
4.2 REMITTANCES DEPARTMENT ....................................................................... 24
4.3 CASH DEPARTMENT ........................................................................................ 24
4.4 BILLS AND CLEARING DEPARTMENT ......................................................... 25
4.5 ADVANCES DEPARTMENT ............................................................................. 25
CHAPTER 05 .................................................................................................................. 27
MARKETING OPERATIONS IN UBL ....................................................................... 27
5.1 STRUCTURE OF THE MARKETING DEPARTMENT: .................................. 27
5.2 FUNCTIONS OF THE MARKETING DEPARTMENT .................................... 28
5.2.1 Segmentation Strategy: ............................................................................... 28
5.2.2 Target Market Strategy: .............................................................................. 28
5.2.3 Product Planning, Development, Management and Positioning: ............... 28
5.2.4 Pricing, Distribution and Promotions Strategy: .......................................... 29
5.3 STRUCTURE AND FUNCTIONS OF SALES DEPARTMENT: ...................... 30
5.4 CUSTOMER SERVICE DEPARTMENT: .......................................................... 30
5.5 TECHNIQUES OF RETAINING THE CUSTOMERS:...................................... 31

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 5.6 TECHNIQUES OF ATTRACTING NEW CUSTOMERS:................................. 32
5.7 WAYS OF HANDLING DIFFERENT KINDS OF CUSTOMERS: .................. 32
CHAPTER 6 .................................................................................................................... 35
SWOT ANALYSIS OF THE UBL ................................................................................ 35
6.1 STRENGTHS: ...................................................................................................... 35
6.2 WEAKNESSES: ................................................................................................... 36
6.3 OPPORTUNITIES:............................................................................................... 36
6.4 THREATS: ........................................................................................................... 37
CHAPTER 7 .................................................................................................................... 38
RECOMMENDATIONS AND ACTION PLAN ......................................................... 38
7.1 RECOMMENDATIONS ...................................................................................... 38
7.2 ACTION PLAN .................................................................................................... 38
7.2.1 Improvement of Working Condition .......................................................... 38
7.2.2 Relationship between the Employees ......................................................... 39
7.2.3 Communication ........................................................................................... 39
7.2.4 Tension of Employees................................................................................. 40
References ........................................................................................................................ 41

vi
 CHAPTER 1
INTRODUCTION TO THE REPORT

1.1 BACKGROUND OF STUDY

All the students of BBA are required to do their eight week internship in financial
institutions/commercial banks. Being employee of the UBL this internship was arranged
by UBL at Dargai Branch, for 6 weeks. The purpose of this internship is to acquaint the
student with the practical knowledge and to provide an opportunity to understand the
differences of theory and practices.

United Bank Limited is one of the leading and first government recognized bank in
Pakistan.

UBI was the result of the merger in 1950 of four Bengali banks: Comilla Banking
Corporation (founded by Narendra Chandra Dutta in 1914 in what is now Bangladesh),
Bengal Central Bank (founded by Sri J.C. Das in 1918), Comilla Union Bank (founded by
Sri L.B. Dutta in 1922) and Hooghly Bank (founded by Sri D.N. Mukherjeee 1932). The
reason for development was that the UBL in addition to being a commercial bank in the
public sector at a time when all other commercial banks were in private sector also came
to acquire certain characteristics which to this day set it apart from other nationalized
commercial banks of the country.

The establishment of UBL thus signaled the achievement of another milestone in the
development of the banking industry in Pakistan.

1.2 PURPOSE OF THE STUDY

The purpose of this study is to functioning of branch to analyze the overall performance of
United Bank Limited in the finance and banking sector of Pakistan specially marketing
sector. The purpose of this study is to analyze the theoretical application of different fields
of studies i.e. Management, Finance etc. in practical field of banking with reference to
UBL. UBL is one of the oldest and well-established banks in the public sector. So we
prefer UBL in order to set knowledge of this organization (UBL) for the students of
commerce, it is very important to know the all the financial activity.

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1.3 SCOPE OF WORK

The scope of this work is based on the complete observation of UBL bank, but due to
shortage of time, we worked in special department of the branch, first of all deposit
department.

In deposit department, deposits are divided in to two or three types.

i) Current deposits

ii) PLS deposits (PLS saving A/C, PLS term deposit.)

iii) Fixed Deposits.

In the above three types of deposits, we learn the entire necessary requirements and also
know the interest rate.

Secondly advance department is the most important department of the bank. It deals
long-term advance and Short-term advance and also consists of finance i.e. short-term
finance and long term finance.

1.4 LIMITATIONS OF STUDY

The following are most common hurdles which internee felt:

 Secrecy of the bank.

 Non-availability of information

 Lack of Appropriate data

 shortage of time

1.5 METHODOLOGY OF STUDY/RESEARCH

The most important task was to collect more quality information about the organization as
much as possible that is why we used a number of techniques to collect the required
material and conduct the report.

The methodology, which we adopted for this research is based on both the primary data as
well as secondary data regarding the overall operation of UBL.

2
The following three sources are used to collect and present the data:

 Primary data

 Secondary data

 Field Experience

For primary data collection, we had used interview and observation method. Don
interviewed different persons in the branch which include the branch manager and other
staff members and also the customers of the branch. We also used Observation method for
the primary data collection. We observed the condition of the branch, the working
environment, its staff, records and other operations of the bank.

For secondary data collection, we consulted different published material. Also studied
different circulars of UBL. Also studied the annual report of the UBL, some books on
banking and also the financial statements of the bank

1.6 LIMITATION

It is to admit that the study attempts only those aspects, which otherwise might be
equally important, but not having a direct bearing on the conclusions arrived at is this
study, have been ignored.

The most important limitation from which the study suffers is the non-availability
of information in a manner required for analysis and secrecy of the bank. Another
limitation of the study is time constraint. Three months period is too less to study the
operations of the bank thoroughly.

1.7 SCHEME OF STUDY

This report is composition of five Chapters. Each Chapter defines its content
systematically.

3
 CHAPTER 2

HISTORY OF UNITED BANK LIMITED

2.1 GROWTHS AND HISTORY OF UBL

Commercial banks play a role of vital importance in the economic growth of a country.
Banks mobilize idle savings of public and provide finance to various sectors of economy.
In spite of vital importance, there was shortage of branches of commercial banks in the
areas of sub-continents, which now constitute Pakistan. When Pakistan got independence,
there were only 487 branches of commercial banks, which were further reduced to 195 as
at 30/09/47 due to shifting of a number of branches to India or U.K. The Reserve Bank of
India, which was made responsible to exercise control over banking sector in both the
dominions, did not perform its duties properly in Pakistan. The State Bank of Pakistan was
established on 01/07/1948. After the establishment of State Bank of Pakistan, banking
expansion got momentum but real progress was not achieved until 1959, when a dynamic
banker Mr. Agha Hassan Abedi conceived the idea of opening a bank different from
others. His dream was translated into reality on November 07/1959 when first branch of
UBL was opened at McLeod Road Karachi (now known as I.I. Chandigarh Road).

This achievement was secured after passing through many problems and after
completion of a lot of legal formalities. UBL was established on 24-07-59 as a public
limited company with registered office at I.I. Chandigarh road Karachi. The authorized
capital was RS. 20,000,000 issued, subscribed and paid up capital was. RS. 10,000,000
divided into 1,000,000 shares of RS. 10each.

i. LOCATION

WITH an integrated network of over 1000 branches in Pakistan as well as 15

overseas branches, UBL gives you direct access to a comprehensive range of better
banking facilities to help you monitor your business locally as well as internationally.

ii. Treasury

The UBL Treasury & Capital Markets (TCM) has developed a reputation as a
proven market leader in converting innovative ideas into profitable ventures for the bank
and for its customers. Today the UBL TCM is a frontrunner in providing:

4
 The narrowest bid/ask spreads and the fastest quotes

 Dynamic risk-reducing hedging strategies for its customers

The best relationships with institutional, corporate and retail clients Year 2009 was
a highly lucrative year for the bank with net profits in excess of PKR 4 billion. Treasury
and Capital Markets contributed to over 65% of UBL’s total returns. This was due to
Government Bond Trading, Equity Trading, Structured Products/Financial Engineering,
Corporate Debt trading, and double-Count of revenues.

Under the new management, the TCM expedited the launch of Pakistan’s first
derivative money market product-the FRA (forward rate agreement) with Quetta Textile
Mills Ltd. in August 2009, and has further closed several similar transactions thereafter.

UBL TCM is a market maker in both the domestic money market as well as the
foreign exchange market. Being one of 11 primary dealers (PD), UBL has one of the
largest balance sheets amongst banks in Pakistan, and hence our Foreign Exchange
Exposure Limit (FEEL), as imposed by the State Bank of Pakistan, is the highest in the
industry.

UBL was the first local bank to establish a Corporate Treasury team in the
Treasury dealing room. The Global Corporate Treasury Business is globally responsible
for sales of all structured and derivative products for UBL. The bank’s trade volumes and
revenues have grown significantly since the introduction of the corporate treasury
business.

Equities are responsible for managing the bank’s trading and badla portfolio, and
to eventually develop a global equity trading activity for UBL. Structured Products is
responsible for developing and packaging plain vanilla derivatives as well as more exotic
customer specific products, and pipeline products.

The Strategic Planning and Balance Sheet Management responsibilities include:

Liquidity Management for the domestic balance sheet - This unit is the focal point
for all branch-related liquidity issues and will also is responsible for day-to-day
management of liquidity for UBL.

 Overseas Branches Treasury and Capital Markets - we plan to integrate the

5
 treasury activities for all overseas branches, to develop synergies amongst our
various treasuries. As our core business in these markets continues to develop, we
expect significant opportunities to arise in the trading, funding and gapping areas.

 Research - providing market research for internal and external clients in order to
support the sales and trading effort.

2.2 THE FIRST BOARD OF GOVERNORS OF UBL CONSISTED OF THE

FOLLOWING MEMBERS
Table – 2.1
1 Chairman
Mr. Ismail Ibrahim Chandigarh

2 Managing Director
Mr. Muhammad Shaffiq Saigol

3 Director
Mr. Muhammad Rafiq Saigol

4 Director
Mr. Bashir saigol

5 Director
Mr. A. Razaq Dada

6 Director
Mr. Mian M.Yahya

7 Director
Mr. M. Saeed Saigol

8 Director and General Manager

Mr. Agha Hassan Abidi

Source: Rahmanullah, Internship Report on UBL, (2007-2009).

Presently UBL is managed by a board of directors including one president, 4

directors from UBL, 1 from Pakistan Banking Council and one from ministry of finance.

The names and designations of present top management include;

6
Table – 2.2
1 Chairman
Mr. Shaikh Nahayan Mubarak Al Nahayan

2 Deputy Chairman
Mr. Mohammed Anwar Pervez OBE

3 President & CEO

Mr. Atif R. Bokhari

4 Director
Mr. Omar ZiadJaafar Al Askari

5 Director
Mr. Zameer Mohammed Choudrey

6 Director
Mr. Ahmad Waqar

7 Director
Mr. Abdul Rauf Malik

8 Director
Dr. Ashfaque Hasan Khan

Source: www.ubl.com.pk
Since inception, UBL provides personalized, efficient and courteous services to its
customers and has achieved dynamic progress in a short span of time. UBL has achieved
the distinction of earning profit in very first year of its operation. UBL also introduced
many remunerative schemes for its depositors and introduced computer services for the
first time in the banking history of Pakistan. UBL gives advance finances to small,
medium and large industries, commercial establishments, agriculturists, construction
companies and other needy persons. UBL offers computerized services to intending Hajis
free of cost. UBL collects Electricity, Gas and Telephone bills from public and issues TV
licenses on behalf of Pakistan Television Corporation. It also offers evening banking and
lockers facilities at its selected branches. Over 100 branches deal in foreign exchange
where facilities to importers, exporters, travelers and other persons are being given.

UBL arranges prompt payment of inward remittances. Similarly for issues of

outward remittances minimum time is taken. Other auxiliary services such as unicorn,
inland traveler’s checks, school banking and collection of checks and other documentary
bills drawn on its station drawers are offered.

“The names and tenure of various presidents of UBL after nationalization are given
here under.”

7
Table – 2.3
S.No. Name of President From To

1 01/01/74 31/12/76
Mr. Mushtaq Ahmad Khan Yousafi
2 01/01/77 31/12/79
Mr. Kh. ZaiUd Din
3 01/01/80 01/02/82
Mr. Sami
4 04/02/82 31/12/82
Mr. M. Sadiq Dar (Acting president)
5 01/01/83 15/07/88
Mr. Tajammal Husain
6 16/07/88 04/02/89
Mr. Amjad Ali
7 7/02/89 18/07/89
Mr. Maqbool A Soomro
8 19/07/89 01/08/90
Mr. Salim Malik
9 01/08/90 15/05/93
Mr. Maqbool A Soomro
10 15/05/93 4/08/96
Mr. Aziz ullah Mamon
11 4/08/96 14/07/97
Mr. ShafiArshad
12 14/07/97 15/01/00
Mr. Zubayr A Soomro
13 15/01/00
Mr. Amar Zafar Khan

2.3 NUMBER OF BRANCHES

UBL has a large network of branches, which extends to the remotest areas of the
country. In December 1983, there were 1417 branches whereas in 1974 it had only 1238
branches and in December 1999 there were 1623 branches and in December 2009 there
were 1821 branches. Presently there are 1056 domestic branches and 15 overseas
branches.

I. Overseas Branches

UBL, with an integrated network of over 1000 branches globally, with 15 overseas
locations, gives their customers direct access to a comprehensive range of better
banking facilities to help them monitor their business internationally.

They have branches in:

8
United States of America

Qatar

UAE

United Kingdom

Bahrain

Republic of Yemen

Zurich

Off Shore banking Unit

II. Subsidiaries

UBL has two subsidiaries, namely,

 United Bank of Lebanon & Pakistan

 United bank A. G. Zurich.

United bank of Lebanon and Pakistan was established in 1968, 1st had a paid up
capital of dollars 379,000, deposits of dollars 125,978, advances of dollars
1983,313 and six branches as on December 31, 1983.

United Bank A.G. Zurich also was established in 1968 and had a paid –up capital
of dollars 2722 thousand, deposits of dollars 5827 thousand and advances of
dollars 5538 thousand as on December 31, 1962.

2.4 JOINT VENTURE

UBL has two ventures, Commercial Bank of Oman limited, established in 1975. It
had a paid up capital of dollars 8,700 million, deposits of dollars 7,333 million, advances
of dollars 73.993 million and 11 branches as on December 31, 1962. And United Saudi
Commercial Bank Limited (Saudi Arabia), established in 1982.

2.5 ROLE OF UBL IN K.P.K.

The role of UBL has developed largely; throughout the country in very short

9
period of forty seven years. The bank is operating in the entire country and has branches
all over the country and overseas. In K.P.k., UBL is operating successfully. The number of
branches of UBL in Peshawar region is 156 up to dec.2001 i.e. there are total 14 Hub
Branches in Peshawar region and under these Hub branches, there are 142 spokes
branches. These 156 branches come under the Peshawar Region, for which there is a
Regional head Quarter (RHQ) in Peshawar.

The list of hub branches come under the Peshawar Region is as under.

1. Peshawar 6. Haripur 11. Mardan

2. Bannu 7. D.I. Khan 12. Swabi

3. Mansehra 8. Mingora 13. Kohat

4. Timergara 9. Nowshera 14. Abbotabad

5. Hangu 10. Bathela

2.6 Mission Statement of UBL

“We shall dominate Pakistan’s financial markets and be the leading bank of
Pakistan in term of quality of customer services, assets, profits and reserves. We shall
consistently try to be among banks in the Pakistan. Comparing over selves to international
standards. We shall be a modern universal bank. Our employees will be efficient,
motivated and have corporate pride”

2.7 Objectives of UBL

Objectives mean the end towards which an activity is aimed. An organization

without objective is like a person who is wandering with no purpose. All the activities of
an organization are due to its objectives and goals. And for the attainment of those
objectives, various types of financial products and plans are developed. UBL has also
some objectives, which are as under.

 To ensure growth and development of the bank.

 To use resources of the bank efficiently.

 To get more deposits.

10
 To participate in development of the country.

 Paying special attention to the areas, which are under developed.

 To develop SME’S.

 To increase industrialization in the country.

 To provide financial help to the farmers.

 To provide employment opportunities.

 To make people more of mind to have saving habits.

11
 CHAPTER 3

ORGANIZATIONAL STRUCTURE OF UBL

Organizational structure of a firm provides boundaries for authority of persons and

clarifies individual responsibility and authority. It shows who is responsible to whom, and
who has the authority to give orders to someone. An organization having dual authority or
vague structure would not have clear direction and will face hurdles in getting its goals
and objectives. Therefore, it is very important for any organization to have a
well-established structure of responsibility and authority. An organization structure should
be so designated to clarify the environment so that everyone knows his duty and who is
responsible for what. It results to remove obstacle to performance caused by confusion and
uncertainty of tasks and to furnish a decision making communication network reflecting
and supporting enterprise objectives.

3.1 UBL ORGANIZATIONAL STRUCTURE:

UBL also has a well-defined formal organizational structure.

UBL is a very vast organization. In the organization set up of UBL, the highest
authority rests with Board of Directors which consists of Chairman, Deputy Chairman,
President & CEO and the directors. In which four directors are from UBL, one from
Pakistan Banking Council, one from Ministry of Finance and one who is also the secretary
of the board. So the Board of Directors is an eight member team, and is responsible for
policy formulation and making important strategic decisions.

The names of the Board of Directors are as follows:

 Chairman

H.H Sheikh NahayanMabarak Al Nahayan

 Deputy Chairman

Mr. Muhammad Anwar Pervez, OBE, HPK

 President & CEO

o Atif R. Bokhari

12
  Director

Zameer M. Choudrey

 Director

Omar Z. Al Askari

 Director

Muhammad Tehsin Khan Iqbal

 Director

Ahmad Waqar

 Director

JavedSadiq Malik

The authority, which is second highest, lies with executive committee. It consists
of seven members, including the president and secretaries are in charge of divisions. The
members are Senior Executive Vice President (SEVP) of UBL. There are twenty
divisions, which have their own Senior Executive Vice President (SEVT). Executive Vice
President (EVP), or Senior Vice President (SVP), the

SEVP to international divisions manages the operations of foreign countries

branches. The rest of the divisions work along their functional lines as shown in the
organizational chart.

At the National level, UBL has a network of branches spread all over the country
and its field operations are one of the most extensive among the leading banks in Pakistan.
At provincial level the bank is managed by SEVP, who is assisted by General Manager
(OM), who is EVP or SEVP. The OM is responsible for either a number of regional areas
or in charge of various provincial departments such as Administration, General Recovery,
Loans, Inspection, etc. The complexity and extensiveness of the operations in a given
province determine the number of OMs. OMs are assisted by circles executives who are of
the rank of SEVP or VP.

The entire country is divided into Circles which are further divided into Zones.

13
 The circles are administered by circle executive. Each zone is comprised of a
number of branches, which are managed by branch managers who are mostly Grade I or
Grade II officers. Some large sized branches are also managed by AVPs.

3.2 CONCEPT OF HUB AND SPOKES BRANCHES:

The concept of HUB and Spoke branches was introduced by ANZ Grind lays Bank
(now renamed Standard Chartered Bank). The bank couldn’t get the deMr.ed benefits and
withdrew from it. Another bank which adopted the concept was National Bank of Pakistan
(NBP), which also couldn’t get the deMr.ed results so both the banks disbanded it.
Recently UBL has implemented this scheme with high hopes. Under the concept big
branches of a zone are given the status of Hub branches. The Hub branches monitor the
activities of spokes branches. The number of branches under a Hub branch depends upon
the resources of Hub branch and the location of the spokes branches e.g. in Peshawar there
are two hub branches one is Peshawar Cantt branch and the other one is Khyber Bazaar
branch. All the spoke and Hub branches work under the concerned area manager. He is
responsible for the performance of these branches. He sits in the Hub branch and is
assisted by a Vice President. In UBL this new concept of banking has shown tremendous
results and is quite successful here. Unlike ANZ and NBP, UBL is getting benefits from it,
and has improved its performance quite well.

3.3 DIVISION OF UBL’S OFFICE

Basically there are two types of offices in UBL

1. Head Office

2. Regional Head quarters

1. Head Office

Head office of UBL is in Karachi. It exercises overall control over the bank. The
head office (HQ) has various functions.

 It formulates polices and ensures its implementation.

 To supervise and control the operations of the regional offices.

 To formulate policies and ensure its implementation by the field offices.

14
 To deal/liaison with foreign donors like IBRD (World Bank), Asian

 Development Bank, Islamic Development Bank, KFW (German Bank),

 FMO Netherlands etc.

 To deal with Ministry of Finance.

 To supervise RHQs.

 To sanction loan applications received from the branches.

 To deal with ministry of finance.

2. Regional Head Quarters

There are Eleven Regional Offices of UBL which fully cooperate with the Head
Office. UBL Regional Offices performance with reference to sanctions,
disbursement, recoveries, and deposit mobilization is of vital importance to the
bank operations. The functions are as follows:

 To implement the policies formulated by the Head Office.

 To extend the credit facilities by keeping in view all the prescribed conditions.

 To recover/collect the existing long-term credits extended by the bank as per

schedule.

 To assist customers in the process of development by advancing loans for viable

financial projects.

All the 1056 UBL branches are the representatives of the bank. These branches
provide commercial as well as non-commercial banking facilities. Various structures
involved in the organization of UBL are given below.

3.4 CONCEPT OF CONSUMER ASSETS CENTERS:

As the UBL was privatized the management started thinking about the consumer
products as well the commercial products. For this purpose the management started hiring
from all over the world in order to collect the cream, and make a world class team without
any doubt.

15
 The management took the consumer head from the bank which is consider as the
pioneer in the consumer sector “City Bank”, and then he joined hands management and
made all the possible ways to make UBL a World Class Bank on the Consumer Side as
well in the Commercial Sector. They made collectively the plans to make Consumer
Assets Centers in all over the country which was introduced first time in Pakistan.

The UBL’s Consumer Assets Centers are the state-of-the-art in the main cities like
Karachi, Lahore, Islamabad and Peshawar. The Consumer Assets Centers are divided in
main Head Office, Regional Centers and New Cities. At the time of launch the regions
were 10 in the country but now it has been increased to 14.

In Consumer Assets centers the products are divided in to two types: The Secured,
and Un-secured Products. The Secured include UBL Autos, UBL Address, and Credit
Card while the UBL Money and UBL Cashline comes under the canopy of Un-secured
Products.

There is a Group Executive, a Global Sales Head, Head Secured Financing, Head
Un-secured Financing, National Sales Managers, Regional Sales Managers, Relationship
Managers and the Relationship Officers.

3.5 TOP MANAGEMENT AT THE HEAD OFFICE:

I. Board of Directors

The executive authority for the general direction and supervision of the Bank
operations or the conduct of business of UBL vests in Board of Directors. The
board consists of a Chairman and seven other Directors.

The chairman of the Board of Directors is the “Managing Director”. All the
members of the Board of Directors, as well as the Managing Directors are
appointed by the government of Pakistan.

II. Executive Committee

Executive committee of UBL consists of seven members. With the expectation of

the president, and secretary all other members serves as In charge of many
divisions. These members are Senior Executive Vice President (SEVP), or
consultants hired on contract basis. The Division Heads that work under SEVP or

16
 consultants are either Senior Vice President (SVP), Executive Vice President
(EVP) or Vice President (VP). The members of the executive committee other than
the M.D. shall hold office for such period as may be determined by the Board. The
decisions of the executive committee, other than those, which relate to matters
specified by the board in this behalf, shall be laid before the board

Functions of Executive Committee

 The members of the executive committee other than the M.D. shall hold office for
such period as may be determined by the Board of Directors.

 The decisions of the executive committee, other than those, which relate to matters
specified by the board in this behalf, shall be laid before the board for approval.

 Subject to the general or special direction of the board, The Executive Committee
may deal with any matter within the competence of the board.

Managing Director

 The Managing Director is responsible for the efficient working of the organization.
He performs his duty according to the policies formulated by the Board of
Directors and is directly answerable to it.

 The Federal Government on such salary and on terms and conditions shall appoint
the MD as it might deem fit.

 The MD shall hold office for term of three years, which the government may
extend from time to time.

 The MD shall be the Chief Executive of the organization and shall perform such
functions as required by the Ordinance and the rules and regulations made for the
past.

3.6 SERVICES OFFERED BY UNITED BANK LIMITED

Consumer Banking

United Bank limited aspires to be the leading provider of consumer baking services
in the country besides the fact that UBL was the Last entrant in the consumer products of

17
the new age but Not The Least. The bank’s operating strategy in this regard has been
aligned with the core customer needs of highest value and expert services. The bankers in
general are facing challenging time today as bankers; as they should be more than just
custodians of client’s funds. Rather they should devise safe and prudent methods of
maximizing the returns on hard earned savings and investments of their customers. These
corporate values are evident in United Bank’s diversified product portfolio which includes
Current a/c, Pls saving, Business Partner a/c, Term Finance Certificate, UBL Profit
certificate of deposit, Monthly income, Foreign currency a/c, Rupee travelers’ check,
Money gram, Safe deposits, Car finance, Credit card, Personal loans, Housing finance,
Business Loans and Running Finance.

In the arena of consumer banking the bank has carved a niche in the market place,
with products like car finance, rupee travelers’ checks homes and car loans for U.A.E
based non-resident Pakistanis. It has set up strong internal control mechanisms to monitor
and measure risks arising out of consumer banking products. The bank is developing
electronic, automated and computerized environment to give impetus to their efforts in
consumer banking area.

Corporate Banking

Systems and operations have to be aligned so that they support the performance of
the Organization’s product offering. Consequently, business process re-engineering and
quality control are on the main maxims of corporate philosophy. United Bank Limited has
the Corporate Banking Group (CBG) which enhanced the image of UBL in the corporate
world and also increased the advances, revenues and profit of the bank to the new heights.

United Bank’s product line-up fulfills and satisfies the banking requirements of not
just the conventional consumer, but the demanding financial needs of the corporate sector
as well. Corporate product includes current deposits, foreign deposits, over draft, term
loans, project financing etc. The bank is continuously setting new standards of services in
the industry and is becoming reliable financial ally of all the customers.

 Investment Banking

Investment Banking Group of UBL (IBG) continues its leadership position in

providing innovative and unique financial solution to its clients by anticipating their
changing requirements and developing new products & services.

18
 IBG concludes more transactions, both number and volume than any other local
and foreign financial institution, including banks, investment banks, and brokerage houses.

More specifically, while IBG maintained its leading status in the traditional
business of loan syndication and debt capital markets, major strides were achieved in the
newer value-added business areas of projects and structured finance, equity & advisory
services and private equity solutions.

Nowadays IBG is focusing on the fast emerging Technology, Media and Telecom
sector where it concluded several unique high-profile transactions. Most significantly UBL
is the only major financial institution based in Pakistan to be engaged by a reputable local
group to act as financial advisor for the cellular license auction bidding in April 2010.

 Automated Banking

Technology and automation play a pivotal role in the progressive development of

any organization. It has become impossible to control the operations of a bank effectively
in real time situation without the latest technology. The bank continues to invest heavily
into the progressive automation and computerization of all banking activities. Its aim is to
achieve total connectivity between branches. The objectives are to achieve efficiency in
services and to control costs. UBL has recently installed the New-state-of-the-art ATM
machines in UAE.

United Bank Ltd provides:

 ATM/ UBL Wallet Debit Card

 Online Banking/ Uni Remote

 Telephone banking

 UBL Business Partner ( In 500 branches and 250 cities)

 Islamic Banking

UBL has played an important role in Islamic banking and successful operation of
Non- interest based system of banking.

The interest free banking system was introduced on January I, 1981. Since then,
UBL has played an important role in the successful operation of this system. For this

19
purpose, it has established a special division, “The Islamic Banking Cell”.

The sincere efforts of UBL as making Islamic Banking successful is proved by the
fact that it declared the highest rates of profit for PLS deposits for the first half year of
1983. This has been due to a sound planning of all its Islamic Banking efforts.

The bank has provided capital to businessmen and industrialists on the basis of
“Mudaraba and Musharika”. Additionally the bank has started interest- free hire purchase
and lease schemes for financing purchase of buses, trucks and industrial machinery on
installments. The bank also provides “Qarz-e-Hasna” to needy and deserving students.

 AGRICULTURE

UBL has contributed in full measures to the development of agriculture. It has

always exceeded, by a considerable margin, the targets given by the State Bank of
Pakistan. UBL has also provided loans for a variety of agricultural activities including
tractors, tube-wells, fertilizers, insecticides, poultry farming, bio-gas plants etc. The bank
officers who are qualified agricultural graduates not only provide loans at the doorsteps of
the farmers, but also render technical assistance to them. To maintain constant liaison with
the farmers, the bank officers have been provided with motorcycles.

Financing of Small Business to meet the goals of social justice, the bank has
zealously participated in the small loans scheme. It has always tried to exceed the targets
fixed by the state Bank. A full- fledged department catering to the needs of small
businessmen is functioning. To improve its operations, the bank has made arrangements
for overseas training of its staff.

The bank is also participating in the dollars 30 million IDA credit, which will be
provided to small industrialists.

For training its staff, a staff collage was established at Karachi in 1994. Now there
are three such colleges at Karachi, Lahore and Rawalpindi, where the officers and staff are
provided extensive training. Furthermore for training senior officers, a UBL school of
Banking has been set up at Karachi. Senior bankers and management experts provide
training to the executives and senior officers of the bank.

20
 RESEARCH DEPARTMENT

UBL was the first commercial bank in the private sector to establish a full- fledged
Research Department. Prominent economists of the country have been acclaimed both at
home and abroad. Not only does this research provides useful and cogent studies of
economic development in Pakistan and abroad, it also assists in the managerial decision
making process.

The Research Department is publishing “Economic Matters” every month since

1967. It was recently upgraded to “UBL Economic Journal”. In addition, the department
also brings out the “UBL Home Journal”.

 COMPUTER SERVICES

UBL was the first bank to introduce computers. The Computer Division was
established in 1968. Presently, UBL has Computer Department at Karachi, Lahore and
Rawalpindi. Many branches have been fully equipped with computers. The Computer
Division prepares weekly, monthly, quarterly, bi- annual and annual reports for top
services to many Government, Semi Government and private institutions.

 SERVICE TO HAJJIS

For providing prompt and efficient services to the intending Hajjis who come to
UBL every year, the bank has introduced the most modern system of electronic banking
which permits all formalities to be completed within a short time. This year 2009, UBL
received the greatest number of applications from customers for Hajj, which shows the
customers faith in UBL.

 AUXILIARY BANKING SERVICE

Bank provides a number of auxiliary services such as credit cards, traveler’s

checks and school banking.

 COLLECTION OF UTILITY BILLS

UBL also collects electricity, gas, and telephone bills from the public on behalf of
the respective organizations. The bank also introduced the bills collection facilities in
selected branches in the evening hours for the convenience of general public. And now
selected UBL branches are collecting the utility bills through online banking.

21
 ISSUANCE OF TV LICENSE

UBL also collects TV License fee on behalf of Pakistan Television Corporation

and issues TV Licenses to the general public.

22
 CHAPTER 04

DEPARTMENTATION

4.1 Deposits Department

The comparative analyses reveal that UBL has the lowest share of Deposits out of
the total in the market. Since deposits are the lifeblood of a bank, it should attract more
customers and expand its deposit base in the following manner

I. Simplification of Procedures

The procedure of opening an account should be simplified. The account opening

form should be self-explanatory and include translations in Urdu for those customers who
are not well read, since the fact cannot be ignored that many people do not have a good
understanding of English.

II. No Duplication of Activities

Once the account opening form is filled there should be no reason to submit a
written application for opening an account, since it not only is a wasteful and time
consuming exercise on the part of the customer but also makes filing lengthy.

III. Incentives for Depositors

Those who deposit large amounts of money or are old customers of the bank
should be given free credit lines up to a certain limit. Besides, financial advice should be
provided to customers in case there is a change in the market trend before they seek for it.

IV. Integrated Marketing Approach

All the officers in Deposits Department should be involved in marketing and not
just opening accounts and maintaining their records. This can be done through improving
their personnel relations’ skills and applying the Uni-Service concept of visiting the
potential customers at their offices and homes.

V. Performance Appraisal

UBL should follow the performance evaluation policy strictly and award those
who bring in deposits and help it increase its market share. Unfortunately, this has been

23
stated in the bank’s policy but is not being implemented.

4.2 REMITTANCES DEPARTMENT

The Remittances Department at the Branch is divided into Inland Remittances and
Foreign Remittances.

Both these are dealt by separate officers and involve using specific stationary and
procedures. The following recommendations are made for this very important Department
of the bank

I. Organizing the Department

The Department is spread over the entire bank with no specific person or desk for
the purpose. Usually drafts and telegraphic transfers are made in the cash counter that
results in hassle for the other customers. A senior officer detached from the other officers
performing inland remittance transactions handles the foreign remittances. It would be
better for them to sit together so that they can benefit from his experience and know how.

II. Centralized Money gram Services

The customers receiving funds from abroad have to wait quite long in order to get
their money as the branch sends the application form through fax to the City Branch from
where it is confirmed whether the amount has been credited to the Branch or not. This
confirmation takes long at times and there is always a fear of the bank losing its goodwill
in case of lengthy delays. The service should thus be decentralized and the Hub Branch
having the authority of directly confirming the amount.

4.3 CASH DEPARTMENT

The following recommendations are made for the Cash Department.

I. Expansion of the Cash Counter

The Cash Department at the Branch needs special attention in the sense that the
cash counter is small and becomes crowded when there are more than five to six
customers to attend. Customers purchase drafts and other instruments from the very same
counter where utility bills are collected and cash is deposited and withdrawn. Hence, if a
new counter cannot be built due to certain limitations the utility bills should be collected

24
through a window so that the regular customers do not face any problems.

II. Extended timings for Cash

In order for the bank to progress and compete with the others in the market, it
should extend the time for accepting and withdrawing cash. The customers face great
hardship especially when they come from far off places and find that the cash counter is
closed for the daily transactions.

4.4 BILLS AND CLEARING DEPARTMENT

The following suggestions are made for this Department keeping in view the
problems noted in it.

I. Career Development

It has been noted that the officers taking bills for clearing do not involve
themselves much with the other operations of the bank and thus remain on the very same
post and seat throughout their banking career. This is against the modern day policies of
organizations giving their employees conducive, rewarding and equal opportunities of
prospering and growing with it. Thus, the Human Resource Department at the Head Office
should prepare a plan that shows the future growth potential of the employees based on
their job performance and evaluation and make it known to all.

II. Job Rotation

There should be job rotation of employees especially in this department as it was

felt that the employees here know quite less as compared to the others. This will enhance
their capabilities and help them break the monotony making them find their work more
interesting.

4.5 ADVANCES DEPARTMENT

There were certain drawbacks in the application and processing for the loan
requests that were observed at the branch. The findings and the recommendations are as
under

I. Proper Documentation

If valid documents are not obtained before sanctioning the loan limit, it becomes

25
irrecoverable in case of default by the borrower. It has been noted that at times the related
officers oblige the customer by letting him submit the documents later and approving the
limit by getting the Disbursement Authorization Certificate from the Credit Committee. It
proves to be very time and resource consuming afterwards tracing the borrower to bring in
the documents. Therefore, correct and complete documents should be attained before the
amount is sanctioned and no leniency shown in any case.

II. Computerized Record

All the sanctioned cases should have record on the computer as it is easy to access
and does not involve the hassles of maintaining and retrieving large and old files. For this
purpose, training programs should be organized for the Relationship Managers to enable
them to have a basic computer know how. Through this, they would also be able to assess
the financial position of the prospective borrower in minutes by using related financial
software.

III. Verification of Security

Physical verification of the security tendered is a must rather than to merely rely on
the documents. It had been noted that where the property to be hypothecated/ mortgaged
lay in remote areas such as the regular physical visits are avoided by the officers. This and
the above factors result in an increase in the non-performing loans of the bank and as
result UBL had more debts turned bad as compared to the other banks. For this purpose,
regular physical verification must be conducted of securities pledged and hypothecated.

26
 CHAPTER 05

MARKETING OPERATIONS IN UBL

5.1 STRUCTURE OF THE MARKETING DEPARTMENT:

In the branch where I have performed my internship only Branch Manager and AMO
performs the operation of marketing.

Hierarchy

Branch Manager

Agriculture & Marketing Office

(A) Marketing Operations

In this organization Branch Manager basically performs the role of the marketing. He is
mostly preferred to direct marketing mean without any intermediary. Directly touched
with the customer via telephonically, or direct meeting with the client. Describe the
various features of their products verbally and also through pamphlets. Sometimes he
also uses the in direct marketing channel for attracting and approaching towards clients.
Branch Manager normally used direct mailer and telemarketing for contacting with the
customers. Branch Manager is in opinion that the direct marketing is a most powerful
tool to attract customers and maintains long term and everlasting relations with them.
Branch Manager uses direct marketing because it is very much convent and cost effective.
Advertising is also a tool which is used for the marketing but it is basically used in the
head office level and not in the branch level. At branch level BM mostly uses paper
material like pamphlets and broachers etc.

On the other hand Agricultural marketing officer also performs the function of marketing.
He markets the clients for the purpose of recovery of loans as well as attracting new
clients. AMO also uses direct marketing as a tool to attract and maintaining long term
relation with them. In this department I have learnt various ways how to deals with the
customers for maintaining long term relations with the customers because customers are
the assets.

27
5.2 FUNCTIONS OF THE MARKETING DEPARTMENT

At the branch level there is not separate marketing department, however Branch Manager
is responsible for the marketing process. Some marketing functions are being performing
at the Head office level and some at the Branch Level. Details of which is as under.

5.2.1 Segmentation Strategy:

Segmentations means divided the large market into small units to overcome on the market.
Segmentation strategy is applying in the United Bank Limited. Single Head Office cannot
manage the entire market of the Pakistan so United Bank Limited spreads a wide network
of more than 1000 branches in the Pakistan to overcome on the market. These branches
than further divided into various forms according to their functionality. This is conducted
at Head Office level.

5.2.2 Target Market Strategy:

After the segmentation we have to evaluate the market and selecting one or more segment
to enter. At our branch level we target almost all kinds of customers like salaried persons,
business man, mill owner, factory owner, individuals, and agriculturist etc. Than this
have to decide the Branch Manager that which category of customers will be market at
which time. For e.g. at the time of harvesting of wheat the Branch Manager markets the
agriculturist because at this time the agriculturist has deposit with him. This is also for
the other crops when these are at their top. In the same way Branch Manager decides
when the market the factories owner and mill owners. Selection of right market segment
is also very necessary for the success of any business.

5.2.3 Product Planning, Development, Management and Positioning:

After selection of the target market the next step is product. When your market the client
you have to offer him your various products. The product planning, development and
management is conducted at Head Office level. Product are not planned or prepared at
Branch Level. When a product is planned and develops at the upper level than it is
further transfers to branches so it reaches to the customers and branch staff markets that
specific product to gain the share from the market.

28
5.2.4 Pricing, Distribution and Promotions Strategy:

Price is the return of your service or product. In United Bank Limited prices are not set at
the branch level these are set at the Head Office level and usually of the fixed nature. The
branch has to charge almost same price to all the customers with some exceptions. The
branch may waive his prices to some very valued customers with the prior approval of the
competent authority. At the head office level there is also some exemption grid the
customer who falls in that grid can enjoy the waivers. For example the customers who
maintain average Monthly Balance of Rs 0.500M in their Current Account and Rs 1.000M
in their saving accounts can enjoy the following.

10 time free remittances

Free cheque book.

While setting the prices, prices of competitors should be kept in mind. Distribution of the
products is conducted through branches in United Bank Limited. Products and services
are designed in the Head Office level and then branches take the responsibility for its
further distribution to customers. Branches are performing the role of distribution
channel. Promotions comprise four sub categories like.

 Advertising

 Personal selling

 Sales promotion

 Publicity and public relations

Advertising consist of any paid form of non-personal presentation and promotions of idea,
goods and services. In UBL advertising is mostly done at upper level and not at the
branch level for the promotions of their product and services. Personal selling is
considered as the personal presentation of products and services for the sale and building
customer’s relationship. This is done at the branch level and in UBL Branch Manager
takes the responsibility of personal selling. Sales promotion is considered as the short
term incentive to encourage the sales of product or services. Public relations are
considered as building good relation by the company’s various publics by obtaining
favorable publicity. This is done at both branch and head office level.

29
5.3 STRUCTURE AND FUNCTIONS OF SALES DEPARTMENT:

Selling of products and services is a very important function for the organization and the
basic way to generate revenue for the organization. In this branch there is not a separate
department of the sales but the Branch Manager takes the responsibility of the sales of
products and services. Sales functions are occurring in most departments just like in the
remittance department, credit department etc. But it overall controls by the Branch
Manager.

In the branch level there are basically two types of sales techniques are used which are
direct sales and personal selling.

Direct Sales and personal selling

Direct sales include face to face contact with the customers. This may be of any kind like
door to door and shop to shop sales or market of your product or offering your products or
services to the walk in customer coming for just visit your branch or for some specific
purpose having no relations with your branch. This may also be through telephone. You
can describe the features of your products and services and convince him to use your
products. Branch Manager is used these techniques for the sales of his products and
services.

Personal selling is considered as the personal presentation of goods and services for the
sale and building long term relationships. Personal selling results in the actual sales
whereas the other selling modes bring the customer closer to sale.

5.4 CUSTOMER SERVICE DEPARTMENT:

This is very much important department in any organization. Customers can be

considered as the blood for the every organization because they are directly involved in
generation of the profit of any organization and this department has a direct relation with
the customers. This is the prime responsibility of this department to maintain long term
profitable relations with the customer through superior type of customer services. We
discuss the functions of this department in detail.

Process of Developing Relations with the Customers:

Developing relations with the customer is very necessary because customers are the real

30
assets of any organization. Once you have attracted a new customer and started business
with him than your next duty is to maintain long and profitable relations with him.
Following may be the some pin points for the developing long term relations with the
customers which I have learnt during my internship program.

 Greeting customers in a professional manner.

 Adherence to service protocol and service management program.

 Immediate resolution of the complaints pertaining to branch because

Customers are the real assets for your organization.

 Clean, comfortable and friendly atmosphere should be provided to the

customers.

 High standards of service protocols are very necessary for the development of
long term relations with the customers.

5.5 TECHNIQUES OF RETAINING THE CUSTOMERS:

The basic thing for the organization is to maintain long term profitable relations with the
customers. Basic thing is not to just develop the relations with the customers; actual thing
is to retain the customers. It cost five times as much to attract a new customer as to
maintain and keep relations with the and existing client. Following are may be the same
techniques which can be used to retain the customers for the long time.

 Provide better customer service.

 Makes call center more efficient.

 Reduce the rate of customer defection.

 Reduce the rate of customer complaints

 If complaint occurs immediate resolution should be immediately taken.

 Monthly or weekly meetings should be conducted for improving

customer’s service standards.

 Special attention and services should be given to valued clients.

31
  Increase the loyalty of the customer by providing trust and better services.

 Provide product knowledge to the customers

 Helps to your customers if they feel some problem.

 Create friendly relations with the customers

 Increase the satisfaction level of the customers because a satisfied customer

is a more loyal customer with your branch or organization.

5.6 TECHNIQUES OF ATTRACTING NEW CUSTOMERS:

For attracting the new customer you should have the knowledge of the following things to
effective market to that client.

 Having a complete knowledge of the customer.

 Having knowledge which that customers’ demands

 You should also have a complete knowledge of the your competitors.

 Than you should market that client by applying your product.

You should also have the idea what is customers actually wants. Basically the customer
besides of the products wants the following.

 Customer wants satisfaction.

 Customer wants recognition

 Customer wants safety and security

 Customer wants belongings

By fulfilling the customer the above mentioned you can create relationship with the
customers. During the training session I have observed that the Branch Manager market
the client of another bank by using the approximately same techniques.

5.7 WAYS OF HANDLING DIFFERENT KINDS OF CUSTOMERS:

Customers like problem creating, and furious should be handled tactfully. One thing

32
should always be kept in mind that the customers are the key for the success of any
organization. Customers are the real assets for any organizations. In this branch
customers got annoyed due to rush and due to delay in their work which occurs due to the
rush of work. And this handled by the Branch Manager and customer service officer
tactfully. A problem creating or furious customer usually demands the following things.

 He will be very demanding

 Demands variety of services and will not pay

 He normally has EGO problem

 Having high status and standards

 Is fearful and doubt full

 Lacks decision power

 Is resistant to change

 Is usually hesitant

 Is nervous and confused

 Usually not well educated

 Is ill mannered by the nature

Complaint is the first reaction of the difficult and annoyed customer. My supervisor
gives me some tips how to handle the complaints tactfully. When any customer
complaints you first of all you should

“Let him say what he has to say or wants to say” my supervisor advised me that
this is the very important and first step to handle any complaint. This will help in
discharging his worry, his trouble and his agony. After he has described his feeling
thinks out that his complaint is genuine, he may be in trouble, or he really has a reason for
the complaint or there is some sort of miss-understanding. While he describing his
feelings the employee should be ignore his language, tone and facial expression etc.

The complaint if found genuine immediate action should be taken for the removal of

33
complaint, restore his loss and confidence. If the removal of complaint will take time
than give him time and give him full assurance and authenticity that his complaint will be
handled effectively.

My supervisor and Branch Operation Manager advised me follow up the following things
to avoid any misunderstanding and complaints. They give more stress on courtesy due to
the following.

 Courtesy is the key to all locked doors.

 Courtesy brings not only rich rewards in terms of tangible things; it also brings
a lot of happiness and satisfactions.

 Through courtesy you can bring everlasting relations with your clients.

 Courtesy is the part of our religion

 Understanding the problems of other peoples is godliness

34
 CHAPTER 6
SWOT ANALYSIS OF THE UBL
SWOT ANALYSIS:

SWOT is useful tool for providing a framework for analysis of an organization. SWOT
stands for Strengths, Weaknesses, Opportunities and Threats. It is common approach to
make assessments in terms of internal and external environment of the organization, and to
formulate strategies analyzing its internal strengths and weaknesses, external opportunities
and threats, coming up is the SWOT analysis for the UBL.

6.1 STRENGTHS:
It is one of the largest private banks with a deposit base of Rs. 94883/-millions showing
constant growth over the period from 1999 till the day.

It has a well-knitted and adequately equipped branch networking system that efficiently
covers both the domestic and international markets.

It is involved in both corporate and retail banking.

The bank is actively emerging and is engaged in international trade and foreign exchange
transactions. Foreign trade volume showed an increase of 17% over the previous year.

Advances investment of the bank shows a constant growth pattern. The current year’s
growth rate is 32%.

The overall efficiency of the bank operations and management ability can be noticed by
looking at to its income pattern and provisions/write off practices.

Net revenue from funds increased by 18% for the current period.

Provisions decreased by 14%.

Total income increased by 16%.

UBL is actively participating in international markets and has recently introduced credit
cards in UAE, Bahrain, and Qatar, being backed up by 24 hours call center out of UAE.

The bank is owned by parties of financial repute and credit worthiness like, SBP with
48.69% interest, Best Way group and Abu Dubai group with 25.50% of interest each.

35
Others are GOP, NBP Trustee Department, State Life Insurance Corporation etc.

The bank is run by highly professional recruited from and trained by foreign banks like
City Bank.
6.2 WEAKNESSES:
Due to risks such as political, economic and legal etc. the bank has suffered losses the
main reason was that of piling up of large amount of unrecoverable loans and debts which
have adversely affected the image of the UBL.

Accumulated losses pushed the bank to cut down its promotional activities in order to
reduce expenses for last few years.

During the nationalization life span of the bank political lords used influence in bank
business and selection of employee at each level and thus adversely affected the bank’s
efficiency and effectiveness.

Administrative expenses are 51% of the mark up revenue.

Promotions are carried out on annual basis ignoring the importance of capabilities and
performance outputs.

The bank has large number of employees who are simple graduates with no banking
knowledge.

Ineffective system of recruiting and selection.

Lengthy credit processing and documentation procedures.

Unsatisfactory working conditions.

6.3 OPPORTUNITIES:
Growing policies of the GOP on business and economic sectors provide UBL an
opportunity to efficiently meet with the business people requirements of instant cash
facilities e.g. the government intentions of developing housing and agriculture sectors.

The efficiency of stock market and sound exchange reserve level is providing a good
opportunity for effective investment decisions.

Foreign remittances are another area as present worldwide control systems over transfer of
currencies through illegal channels has facilitated the area for the banks.

36
Reconstruction of Afghanistan is a golden opportunity where the bank can effectively
participate.

Expansion of IT platform and internet based banking system.

Interest of businesses in leasing facilities provides a healthy opportunity for banks.

There is a large pool of unemployed MBAs who can be hired to achieve professionalism
on its organizational culture.

Outsourcing of promotional companies or use of available excellent promotional facilities.

Entering new market segments.

Increase the product range to meet the broader range of customers’ needs.

6.4 THREATS:
Increase in competition due to increasing number of foreign and domestic private banks
offering highly specialized and attractive services.

Growing global technological advancements and adaptation of modern style of

management in banking sectors.

Extensive promotion campaigns run by competitors.

Unemployment, lower level of income and prices like problems in the motherland coupled
with low rate of industrialization, geo political adverse conditions, religious factor, lack of
consistency in policies due to political instability are some of the other major threats.

This SWOT analysis is a mirror image of the bank’s present conditions. Some efforts are
made and others are still required to be made in order to improve the situation. The
management can develop elaborate strategic plans for capitalizing the available
opportunities. The bank should maintain principal of professional management and adhere
to sound and sophisticated banking rules and regulations so that confidence and trust of
the public in the institutions could be re earned.

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 CHAPTER 7
RECOMMENDATIONS AND ACTION PLAN
7.1 RECOMMENDATIONS

 UBL should take care while conducting marketing research and adopting new
policies and procedures for getting its marketing share regarding advances.
 The existing policies should be reviewed and there should be permanent revision
of these policies from time to time.
 UBL should adopt once again aggressive strategy because the number of its
competitors is increasing day by day.
 There should be clear-cut delegation of authority and responsibility.
 All the departmental head should be given full authority and responsibility.
 Since in UBL there is overlapping of functions, therefore each department should
be functionally defined, and all those departments should be amalgamated whose
functions are similar, to reduce cost.

7.2 ACTION PLAN

Based on my research I would strongly recommend specifically to the UBL Dargai Branch
some practical solution to the problems which are present in their system.
Recommendation along with the action plan is given below:

1) Improvement of working condition

2) Improvement of interrelationship b/w employees

3) Improvement of communication

4) Reduce the tension of the employees how to implement these recommendation can be
like as given below.

7.2.1 Improvement of Working Condition

The working conditions of UBL Dargai Branch are not up to the standards; the building is
furnished and decorated. Anybody when enters to bank not feel comfortable because
physical outlook of the bank is worth pity and so conjusted.to eliminate this problem they
can take the following steps. The bank should purchase land for the construction of their

38
office, where they can build building according to their requirements and modern
standards.

The land is available not very far from their existing office. They can have enough land as
per their requirements the estimated cost is Rs3 lacks for the area of 5 Marlas.

After purchasing the land they can hire the services of a construction consultant to design
building according to their requirements. To have information about their requirements
they need to conduct a proper research. The data for the research should be collected not
only from the employees of the bank but also from the customers of the bank. The
employees should be asked what sort of working conditions they would like to have which
they think would facilitate their function. And the customer should be asked about their
expectations from the bank.

7.2.2 Relationship between the Employees

Relation b/w the employees are not satisfied. They are just the staff members and treat one
another formally and colleagues. They don’t have any relation of as such friendship, which
I think, is essential for the daily operations of any organization.

To solve this problem the bank chief manager can play a vital role. only what he needs to
do to arrange get together parties amongst them on regular bases not only in the free
timings of the bank but also outside the bank which will provide them an opportunity to sit
with one another and discuss the problems of bank but also of one another, by this they
will come close to one another and hence become friends.

In bank timings they are so busy in their bank activities that they don’t find even a single
minute to sit with one another and relax, even some time they are so exhausted that they
don’t want to talk to one another and a kind of cold war stars b/w them and instead of
giving attention to their bank job they try to embarrass their colleagues which is going to
adversely affect the performance of the bank.

7.2.3 Communication

Being the leading bank the UBL should give attention to the improvement of
communication amongst the employees. For this purpose they can establish their own little
telephone exchange in their own branch. This will cost them not more than Rs150, 000 for

39
installation and Rs10000 per month for maintenance and operation. Viewing the financial
position of the UBL it is too little amount for them. But this well benefits them more
through improved services.

7.2.4 Tension of Employees

What I have felt while being there with them, that the employees are under unnecessary
tension. They are always afraid that they might commit some mistake and will be scolded
by the chief manager if not punished in terms of transfer or even suspended. In order to
remove this problem the chief manager should keep friendly relations with the employees
of the bank and should be more democratize than authoritative; this will require him to go
their seats regularly and discuss not only their routine problems but also their personal
problems and cooperate, them in the best manner.

40
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Edwin B Fillip (1998) Principles of Personnel Management, McGraw Hill Inc.

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Memorial C.B. (1987). Personnel Management. New Delhi, Himalayand

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Philip Kotler. (1991). Marketing Management. New Jersey, Ninth Edition, Prentice Hall
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Reece, Barry L. (1987). Business. Houghton Mifflin Company.

Siddiqui Asrar H. (1993). Practice and Law of Banking in Pakistan. Karachi, Royal Book
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New Jersey: Prentice Hall.

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