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To be the premier organizations operating locally &

internationally that provides the complete range of financial
services to all segments under one roof.

Mission Statement of UBL

To develop and deliver the most innovative product, manage

customer experience, deliver quality service that contributes to
brand strength, establish a comparative advantage and enhance
profitability, providing value to the stakeholders of bank.

Introduction of UBL

1.0 Introduction of study

1.1 Background of Studies

As part of the academic requirement for completing degree the students are required to undergo
six weeks of internship with an organization. The internship is to serve the purpose of
acquainting the students with the practice of knowledge of the discipline of banking
administration. This report is about United Bank limited Pakistan. UBL was established in 1959
and since then, it has expended its network, becoming the largest commercial Bank of the
country. It offers different products of services to its customers.

1.2 Purpose of the Studies

The main purpose of the study in hand is together relevant information to compile internship
report on United bank limited of Pakistan.

To observe, analyze and interpret the relevant data competently and in a useful manner.

• To work practically in an organization.

• To develop interpersonal communication.

1.2.1 Scope of Studies

As an internee in United Bank limited Pakistan the main focus of my study research was on
general banking procedures in one of the branches of UBL. These operations mainly include
Human Recourse Management system .Similarly different aspects of overall of UBL are also
covered in this report.

1.2.2 Limitation of the Study

Something is better than nothing. No matter how efficiently a study is conducted, it cannot be
perfect in all respects. This study was conducted in accordance with the objectives of learning.
The study may not include broad explanations of facts and figures due to the nature of the study.

Secondly, the limitation that affects the study is the restriction on mentioning every fact of the
bank due to the problem of secrecy of the bank. In addition, the availability of required data was
problem as all the documents and files are kept strictly under lock and key due to their
confidential nature. Thirdly, the problem of short time period also makes analysis restricted as
one cannot properly understand and thus analyze all the operations of a bank just a very short
time of 6 weeks.

1.2.3 Research Methodology

The report is based on my two months internship program in United Bank of Pakistan. The
methodology reported for collection of data is primary as well as secondary data. The biggest
source of information is my personal observation while working with staff and having discussion
with them. Formally arranged interviews and discussions also helped me in this regards. Primary data

• Personal observation

• Interviews of staff Secondary data

• Manuals

• Annual reports

• Internet

1.3 Definition of banking

The word “Bank” is of a European origin and is derived from the Italian word “BANCO”, which

means a table or a counter. In the opinion of the eminent scholars of banking, the reason why

this word was given to the banking business was the then prevailing traditions of Lombardi a

money changers.

1.3.1 Modern Banking

The banking which was known in various forms and guises in the ancient civilization in various

parts of the world did not coincide with the emergence of the modern Banks. The banking which

had its roots in the flourished culture and had lost its required effectiveness regained the strength

with the development of the modern banking.

1.3.2 Brief History of Banking in Pakistan

Prior to partition in 1947, banking in Pakistan was dominated by branches of British banks. The

State Bank of Pakistan, the central bank, was formed after partition in 1948. It assumed the

supervisory and monetary policy powers of the State Bank of India. In the period of 60s to 70s

the emergence of a number of specialized developments finances institutions (DFIs) such as

Industrial Development Bank of Pakistan (IDBP) and the Agricultural Development Bank

(ADB). These DFIs were either controlled directly by the state or through the SBP, and were

intended to concentrate on specific priority sector lending. In 1974 all domestic commercial

banks were nationalized by the Government. The Pakistan Banking Council was established,

which assumed the role of a banking holding company but with limited supervisory powers.

However, PBC was dissolved in 1997, leaving the SBP as the sole regulatory authority for banks

and financial institutions in Pakistan. Nationalization of the banking sector led to pet projects.

The branch network of UBL also proliferated in an effort to provide banking services to all

regions/territories of the country, often with disregard to the viability or feasibility of such


1.4 History of United Bank Limited

United Bank Limited was established in November 1959. The bank was sponsored by the
saigol Group of Companies, which were the mainstay of the textile industry in Pakistan at that
time. Within a short period of time, the bank emerged as the third largest in the country after

HBL and NBP. The bank was nationalized in 1974. Later on another bank the commerce bank
limited was merged into UBL.

UBL was the third bank to be offered for privatization. Initially, a Saudi based financial
institution; Bashrahil Group came up with the highest bid for the bank, and deposited the first
tranche for its consideration. However, due to flaws in the transaction, the SBP cancelled the
privatization and took over the bank in 1995.

The Bank’s total income including interest and non-interest income amounted to RS.4935
million in 1995, its deposits were RS. 109 billion and investments were RS.25 billion in 1995.
UBL incurred a loss of RS.724 million in 1995.

In 1996 the management of the bank was changed and by mid 1997 the financial and
administrative discipline was restored. The interference of the government was eliminated and
the non-performing loans recovery was increased and the liquidity position was brought up to
the required level. About RS.6.3 billion were recovered out of which about RS.5 billion were
domestic and of this about Rs. 4.5 billion was recovered in cash.

A right sizing program was initiated as well as an aggressive branch rationalization strategy
by which 203 loss making branches were shut down and profitable ones were opened in other
areas. Surplus staff was removed which amounted to 5416 employees. The entire audit system
was revamped.

1.5 Introduction of UBL

United Bank Limited was established on November 7, 1959 and incorporated as a Public Limited
Company under Companies Act 1913. The UBL Board of Directors of are:

Highness Shaikh Nahayan Mabarak Al Nahayan Chairman

Sir Mohammed Anwar Pervez OBE Deputy Chairman
Mr. Atif R. Bokhari President & CEO
Mr. Omar Ziad Jaafar Al Askari Director
Mr. Zameer Mohammed Choudrey Director
Mr. Ahmad Waqar Director
Dr. Ashfaque Hasan Khan Director
Mr. Aqeel Ahmed Nasir Company Secretary & Chief Legal

Mr. Abdul Pauf Malik Director

Mr. Ameer Karachi wall Chief Financial Officer

The Bank is currently operating 1400 Branches Domestically and 15 Branches Overseas (USA,
Qatar, UAE, Bahrain and Republic of Yemen). UBL hold 51% of its total shares other 49%
shares are owned by Government. After the privatization of banking sector in Pakistan UBL
implemented its strategies to achieve the comparative advantage in the Market place. UBL
subsidiaries are:

• United Bank AG Zurich, Switzerland

• United National Bank Limited, UK

• UBL Fund Managers Limited

UBL due to its innovative corporate culture wins their customers trust. UBL is running four
websites to provide information and customer services which are:





The depositing services offered by UBL are Business Partner, Rupee Trans A/C, Basic Banking
Account, UBL UniFlex, UBL UniSaver, UBL Profit COD, Term Deposits Receipts, FCY
Savings, and FCY Term Deposits. The loan and card services are UBL Address, UBL
Businessline, UBL Cashline, UBL Drive, UBL Credit Card, UBL Money, and some other
services are UBL netbanking, UBL e-statement, Hamrah, UBL Wallet, UBL Click n Bank, UBL
Click n Remit, UBL TezRaftaar.

1.6 Departments at UBL

Banking procedures are divided between various departments. Different departments do their
jobs in accordance with the bank policies .In UBL each branch is divided into various

departments according to their size and volume of business .Head of department manages each
department & officials of the branch follow the procedures. The departments of UBL with their
functions are as follows:

• Clearing House Department

• Deposit Department

• Advances Department

• Computer Department

• Remittance Department

• Pension Disbursement Department

• Account opening Department

1.6.1 Clearing House Department

Like Every bank UBL also acts in two way i.e.

• Paying Bank

• Collecting Bank

Here in theory no legal obligation on a banker to collect cheques, drawn up to other banks for a
customer. It is, however, an important function of crossed cheques. A large part of this work is
carried out through the bankers clearing house wherever it is established.

Clearing house

A clearing house is the place where representatives, of all the banks get together for the purpose
of offsetting the inter bank indebtedness arising from the transfer of deposits by a customer of a
particular bank to another bank.

Advantage of clearing house

The advantages are manifold. It prevents the cost and waste involved in collection each and
every cheque and claim. Which a banker holds against another, across the counter with all the
danger of loss in the transit incumbent upon it. Great economy is also achieved in the
employment of liquid cash by setting the difference by simpler transfer of credit from one
account to another, thereby minimizing the necessity of holding large cash balances, clearing
house works under the control of State Bank of Pakistan.

A banker has no legal obligation to collect cheques drawn upon other banks for the customers,
though modern banks have assumed this important function of their own choice. Therefore, it is
very important that since they have assumed this function, the banker should be very careful in
their performance, otherwise they will face more difficulties. So, if they provide this facility
when the cheques are crossed.

Functions of clearing department

The following are the main functions of clearing department.

• To accept transfer deliveries and clearing cheques from the customer of the branch and to
arrange for their collection.

• To arrange the payment of cheque drawn on the branch and given for collection to any
other branch of United bank of Pakistan or any other members, or sub-members of the
local clearing house.

• To collect amounts of cheques drawn on members, sub-members of the local clearing

house, sent for collection by those UBL branches which are not represented a local
clearing house.

Procedure of depositing cheques in clearing department

Whenever a customer wants to deposit cheque, etc, he fills a pay in slip and hands it over the
counter along with the instruments he wants to deposit with bank. As far as possible, the
customer desire that one of the staff member fill in a slip for him, he should be obliged promptly.

The smaller portion of the perforated pay in slip is handed over to the depositor and the portion
becomes the regular portion of a credit voucher.

Procedure of clearing at clearing house

The mechanism of setting inter bank indebtedness operates as follows.

Clerks representing various banks meet at a common place, the clearinghouse, and every day.
Every clerk then delivers to the others the cheques and the other claims which their respective
banks hold against his banks hold against his bank cheques and other documents dishonored will
be returned to the representative of the respective bank. The various amounts of receipts and
deliveries are now added up and a balance is struck there in and the final settlement is effected
by the supervisor of the clearing house by transferring balance kept and the central bank by these
various clearing banks.

1.6.2 Deposits Department

The primary function of united bank of Pakistan is to accept and receive surplus money from
the people, which they willingly deposit with the Bank. Like all other Banks, UBL of Pakistan
also takes incitation to attract as much depositor’s as it can. The deposit department
accepts/collects deposit from accountholders.

The United bank offers different deposits schemes which include the following:

• Current Deposits
• PLS Saving Deposits
• Fixed Deposit Account ( Time Deposits)
• UBL Premium Aamdani

1.6.3 Advances Department

The bank is profit seeking institution. It attracts surplus balance from the customer at low rate of
interest and makes advances at a higher rate of interest to the individuals and business firms.
Credit extensions are the most important activity of all the financial institutions, because it is the
main source of earnings. Advances department is one of the most sensitive and important
department of the bank.

It provides the following advances

• Running finance (Overdraft)
• Agriculture advance to farmers
• Demand finance against gold(DFG)
• Agriculture finance against gold(AFG)
• Advance salary

The Advances department deals in following transactions.

• Preparation and submission of proposals of Running finance, Cash finance, Demand

finance, Finance against imported merchandise etc for sanction of finance limit from the
hire authority.
• Preparation and posting of vouchering of all type of finance.
• Accruals & recovering of Markup on finances on periodical basis.
• Approval of transfer of funds through DD-TT, PO, MT, IBCO etc to various branches by
debiting the limits.
• Preparation of weekly, monthly, quarterly, and annually statement to the hire authority.
• Transfer of funds from one account to another account of the party taking the authority
• Preparation of advances record.
• Timely submission of returns/reports, daily, weekly, monthly & quarterly.
• Checking of computer outputs of the department on daily basis.
• Balancing of all financing heads.

1.6.4 Computer Department

This department is playing very important role in making the banking procedures faster and help
the bank for providing better services to its customers.

UBL has three types of branches in all over the Pakistan. These include

I. On Line Branches

The branches which are directly link with central computer AS-400 through wide area
networking in through fibers optics. These branches are directly link with central computers.

II. Batch Branches

The branches where all the transactions are carried out with the computer base systems but these
branches are not connected with to the central computer with wide area net working.

III. Manual Branches

The branches where all transactions are carried out manually and records are maintained on
registers usually stored in big wardrobes. Manual branches report regional office about their
daily transactions.

1.6.5 Remittance Department

Remittance department performs following functions:

• Mail Transfer (MT)

• Telegraphic transfer (TT)

• Demand Drafts (DD)

Mail transfer (MT)

When a customer requests the bank to transfer his money from one branch of the bank to another
branch of the same bank or from one city to another city to the same bank or any other bank.
Customer fills the form given by bank. If the customer has an account with that amount as
mentioned in the application form then concerned officer will undertake the following procedure
to make the mail transfer complete.

• Branch Mail Transfer form

• Receiving Branch Register copy

• Issuing Branch register copy

• Beneficiary advice

• Advice to Customer

In case where the customer is not account holder of the bank then the customer will have to
deposit the amount which he wants to transfer under Mail. Then the above said procedure will be

Telegraphic Transfer (TT)

This type of transfer is simple. After filling the application form the concerning officer shall fill
the telegraphic transfer form. Then it is sent to the required bank that after receiving it
immediately makes the payment to the customer and after wards the voucher are sent to that
bank by ordinary mail.

Demand Draft (D.D.)

Demand draft is just like cheques and issued when the customer wants to take cash with him
personally. The idea behind it is to avoid the risk and burden of currency notes in huge quantity.
Demand draft can easily be handled whatever amount it has and the money can easily be taken
from the bank when it is presented. In fact, the bank persuades the customer to transfer money by
drafts and avoid the risk of frauds involves in M.T and T.T Draft is only issued when the Bank
shows customer and bank has confidence in him.

1.6.6 Pension Disbursement Department

The United Bank of Pakistan was Pakistan’s leading institution which performs the function of
pension payments or disbursements to pensioners. The pension disbursement department is
responsible for making pension payments to Government Pensioners. The person who wants to
receive his/her pension from UBL can open an account with any branch of UBL of Pakistan. The
bank performs this function through Demand Draft Purchase or simply called DD Purchase. This
department performs following functions:

• Making Pension Payments
• Opening of Account of Pensioner
• Entry of amount paid to pensioner in Government Pensioners Register
• Verifications of Signatures of Pensioners
• Making Demand Draft Purchase Register

1.6.7 Account Opening Department

The opening of an account is the establishment of banker-customer relationship. This

department performs the duty of opening accounts for customers. It also issues checkbooks to
customers. A person who wishes to open an account with the bank has to fill an account
opening form obtained from any branch of UBL of Pakistan. The bank officer tactfully
obtains information about character, integrity, responsibility, occupation and the nature of
business of the perspective customer. Any individual, who has attained the age of majority
and is of sound mind can open and maintain his/her account. Two or more individuals may
open an account jointly. Similarly, business organizations such as sole proprietary concerns,
partnership firms, and limited liability companies as well as non-profit organizations like
clubs, trusts, societies, associations and NGO’s etc, may open their accounts. The documents
required for United bank of Pakistan’s Account opening are showed as Annexed VII at the
end of this report.

The following requirements are necessary for opening an account.

Identification of the new customer. Ascertaining the genuineness of the stated occupation
business of the customer. Determining the correct residential and permanent address.
Completion of all relevant columns of the Account opening form. Proper completion of

Functions of Account Opening Department

• Providing account opening form according to the customer's requirements

• Guide the customer about the requirements of the account opening and form filling
• Check the forms whether they are correctly completed or not

• Preparing checklist
• Stamping on the form
• Maintaining account opening register
• Pasting of forms in register after release from general banking in charge
• Issuance of cheque books
• Issuance of accounts maintenance certificate
• Closure of account
• Verification of signature in case of cheque presented before releasing of account opening
from SS card is not yet scanned


Branch Manager

Assistant Manager



Organization Chart

The organization design of UBL is Horizontal (which has low hierarchical level). There are
different Groups containing 10 to 12 people which are assigned different tasks to work on each
group has its own supervisor who supervise all employees in its group.

Source: (

Chapter # 2

Personal Learning & Experience

2.0 Personal Experience

Internship tenure was about six weeks .In this period I have been able to go through the whole
function of UBL. However due to my personal interest in HR, management of UBL focus on
improving my knowledge about the HR system of UBL. Here I have tried my best to explain the
HR system of UBL.

2.1 HR Functions

Following are the major Human Resource Management Functions of United Bank Limited

2.1.1 HR Objectives

The objectives are to look out for the well being of all employees of the UBL. Provide leadership
and direction to employees of the company. Career Development planning for all employees of
the company. Ensure thorough training of nationwide employees. To provide individual
employees with orientation on the company at the time of joining. To provide employees with
solutions to their problems. Maintaining data records of all employees of UBL (Human
Resources information System). To evaluate and retain those employees who are assets to the

2.1.2 UBL HR Planning’s and Policies

United Bank Limited follows Business-level/Competitive Strategy (competitive strategy

identifies how to build and strength the business’s long-term competitive position in the market
place) because of vast number of its competitor in the market place. UBL analyze its strengths
with weakness and opportunities with threats to maintain its comparative advantage. The
competitive advantage of UBL is based on Differentiation. It provides different online and

offline services to win its customer and periodically analyze the competitive marketplace to
enhance its services at a high level.

2.2 Attracting Methodology

Generating required Human Resource policy of UBL is that they attract the current employees by
offering them Promotion, Cash award, increment, bonuses and stock option so keep up and
generate external candidate by offering good salary packages, Career oriented jobs,
Accommodations etc.

2.3 Investment in Development & Performance

UBL invest in HR Development and performance by promoting or giving rewards to those

employees whose performance is better. The performance appraisal of each employee is
conducted annually in UBL.


2.4 Organizational Values

• Trust and Integrity

• Respect for people

• Responsible corporate citizens

• Passion for business excellence

• Commitment to total customer’s satisfaction

2.5 UBL Culture

United Bank Limited culture is the personality of the organization. Culture is comprised of the
assumptions, values, norms and tangible signs (artifacts) of organization members and their
behaviors. The organizational culture of UBL is that it always provides profit to its stakeholder
and never misrepresents its financial reports and will never do any unethical act which harms its
client and competitor. The employees of UBL will always be helping and friendly with its
customers. The norms of UBL are it always follows the Laws of country and maintain its

2.5.1 UBL Working Environment

The working/organization environment of UBL is very sophisticated. Environment is very

friendly due to group coordination. Employees can easily communicate horizontally and
vertically which help to achieve its goals and objectives. Employees have to follow formal code
of ethics of United Bank Limited

2.5.2 HR Measuring Method

United Bank Limited uses Scorecard Approach to measure the effectiveness and efficiency of
HR department. UBL follow the seven steps to measure its HR department. First UBL define its
business strategy. Second its outline the company’s value chain activates (activities which create
value for customers and related supporting activities). Then it outlines what organizational
outcomes (goals and targets) the bank has to achieve. Then it evaluates the workforce required to
achieve the goals. After that UBL devise its HR policies and practices (what new training is
required?). Then it designs the HR scorecard and periodically evaluates the measurement system.

2.6 Job Analysis

Job Analysis is the procedure through which you determine the duties of the position and the
characteristics of the people to hire for them. Job analysis produces information used for writing
job descriptions and job Specifications.

2.6.1 Techniques for Job Analysis

UBL only use Qualitative Techniques of analyzing jobs. The techniques UBL uses are Interview
and Open-ended Questionnaires. They use interviews in which employees are ask what the job
entails and questionnaires in which employees are asked different question about what are the
activates they perform in job.

2.7 Job Evaluation

Job Evaluation is a systematic comparison done in order to determine the worth of one job
relative to another. Job evaluation technique used by UBL is Ranking Method in which each job
relative to all other jobs according to its difficulty level like for example job of supervisor is
tougher than the manager working under its supervision.

2.8 Recruitment

In order to determine the future staff needs United Bank Limited uses Ratio Analysis technique
(a Forecasting technique for determining future staff needs by using ratios between, for example
sales volume and number of employees needed) in which trend between two trends is determined
like volume of deposits, revenue, new branches etc and number of employees needed to perform

2.8.1 Internal Recruitment Sources

In forecasting the supply of inside candidates UBL use Qualifications inventories (manual or
computerized records listing employees education career and development interests, languages,
special skills and so on to be used in selecting inside candidates for promotion) so in order to
replace a supervisor of a department a person below educated than the current supervisor will be
selected as a new supervisor.

2.8.2 External Recruitment Sources

External source for hiring employees use by UBL is Succession Planning (the ongoing process of
systematically identifying, assessing and developing organizational leadership to enhance
performance) in which UBL do analysis on the important or key jobs in the organization, create a
list of competent employees who can fulfill the requirement of that job and then select the best
employee who can perform that job efficiently and affectedly. The internal sources used by the
United Bank Limited for hiring candidate are Advertisement, Head hunter and Word of Mouth.

In advertisement they use different mediums like Television, Newspaper, subscribing the jobs on
Job sites e.g.



UBL has hired its own Retained Executive Recruiters/Head hunter (Executive recruiters are
special employment agencies retained by employers to seek out top-management talent for their
clients) to find competent and qualified people for UBL. But due to some circumstances there is
flexibility in hiring the employees externally and internally for example non availability of
required candidates, lack of time, lack of resources etc.Usually United Bank Limited don’t take
Referrals but due to some reason they do sometime take referrals for example referral form a
high command person, person on referral is qualified and competent etc.

2.9 Selection

Selection process of UBL based on Qualification, Previous job experience, Age and health of

2.9.1 The Application Form

For selection process the first step which candidate to be fulfilled is application form, this show
about the candidate’s education, previous performance, prior work history, experience, hobbies
and health condition? As such, it is extremely critical for his/her continued participation in the
examination process. Before that candidate has to review thoroughly what the Job advertisement
specifies the requirements to qualify for the position. Candidate must meet all the criteria to be
considered for the position; ensure that, otherwise candidate will be wasting his effort in
completing the application.

2.9.2 Written Tests

Written exams are usually obtained from one of several test construction firms available to them.
These tests are designed to determine level of technical and/or analytical abilities associated with
the particular position for which candidate had applied. Unstructured questionnaire and IQ test

(intelligence test) Test results are sent by mail, usually within 6 working days. If receive a
passing score candidate will be invited to continue in the examination process

2.9.3 Performance Exams

Test ability to accomplish specific job-related tasks by providing the opportunity to actually
perform them. These tests are scheduled through the Human Resources Department office,
with notification in writing of the date, time, location and duration of the test. Instructions
will be given on the tasks to be completed and then asked to complete them. Individuals
with considerable relevant experience will conduct the evaluations. Safety, quality of work,
adaptability, performance under stress, etc. are evaluated. Specialized Testing

2.9.4 Selection Interview

Once the List of candidate who is capable enough, is established it is sent to the Department(s)
that is hiring to fill a current vacancy. The Department Head is responsible for setting up
Selection Interviews. He/she may interview anyone on the list; The Department Head will be
looking for the candidate with the best qualifications for their particular position.

The candidate who is selected, investigate his/her background and a probationary period before
attaining permanent employment status. Additionally, in accordance with Federal Law, the
candidate is required to provide proof of identity and proof they may legally work.

2.10 Training & Development

Training refers to the methods used to give new or present employees the skills they need to
perform their jobs. Development include employee, management, organizational and career
development which develop employees skills, management which enhance executive’s abilities,
organizational cultural development and career development of employees. Training methods
used by United Bank Limited are Soft Skill Functional Training, On-The Job Training and Class
Room lectures.

In soft skill functional training UBL give training to improve personality traits, social grace,
friendliness, personal habits and fluency of language. In On-the job training UBL uses different
method like Coaching or understudy method in which supervisor act as a coach and teach the
trainee to the perform the task on the job and Job rotation method is used by UBL for those
employee who need multi skills to perform the job.

2.11 Performance Appraisal

In performance appraisal of employees UBL use Graphic Rating Scale Method (a scale that lists
a number of traits and a range of performance for each. Employee is then rated by identifying the
score that best describes his or her level of performance for each trait) in which UBL measure
the characteristics and previous performance of employees and then rank them subsequently.

In the performance process UBL first discuss the job and duties assigned to the each subordinate
in the Groups. After that they compare their actual performance with the standards which are set
by the UBL. Then the performance reports of subordinates are discussed with them and make
plans if any development is required or not.

2.12 Compensations and Benefits

United Bank Limited provide compensations to its employees in shape of Cost of any medical
Treatment, Cancelled Holidays fees, Repair of vehicle, any injury while doing job tasks and
some other. Employees can claim their compensation if any above case occurs.

Benefits which are provided by UBL are Paid time off, Retirement, Disability Insurance,
Education and training programs. In Paid time off benefits the employee is paid for the time he
don’t worked duo to vacation, holiday pay and sick pay. Retirement benefits are in shape of
pension, gratuity, provident fund and superannuation fund. In disability insurance bank provides
financial support when an employee becomes injured or ill and is unable to do his/her job and in
education & training programs bank provide different education & training to their employees to
furbish their skill.

2.13 Stress Handling

The techniques used by United Bank Limited to handle stress among its employees are by
providing better atmosphere in the office which is neat & clean, Air-conditioned, peaceful and
relaxed so employees can work with their full potential. Lunch break are also provided to
employee to reduce stress among them. This also creates a relaxed atmosphere because
employees can chit chat in that break.

United Bank Limited sometime also arrange excursion tour for their employees to lessen their
workload and fresh their mind for the challenging task ahead them and sometime send
employees on vacation with their families.

2.14 Critical Evaluation of HR Functions

As we review the HR Functions of United Bank Limited we asses that UBL have strengthened
its roots in the market place and competing with its competitors successfully. It has at a vast level
providing online service and one of the leading banks in e-banking in Pakistan. The Horizontal
organization design of UBL is also the reason of its success because as compare to vertical
organization design horizontal is better due to fast and easy flow of communication among the
employees. UBL is playing a very significant role in providing employment, Loan etc which
increaser the per capita and living standard of civilians. UBL culture and environment is also
better as we compare to its competitor because there are some ethical norms, values which are
the soul of UBL and the environment is very self-relieving, relaxing in which employees work
their best. While measure the efficiency and effectiveness of HR department functions Score
Card Approach is best and most frequently used in corporate environment. This approach easily
gives UBL accurate results.

Interview is the most commonly used for job analysis. UBL use interview and questionnaire to
ask for employees what the job entail and then write the job description and job specification.
For job evaluation UBL use ranking method in one job is compared from another. This is not the
best one as compare to some of its competitors.

The recruitment methodology used by UBL is Ratio Analysis in which ratio between two trend is
determined which is one of the best method to forecast future employee need.UBL use
qualification inventories, advertisement and head hunters to find new talented employees. But
UBL sometimes due to some reason show flexibility to hire new employees in which low

competent employees are hired and referrals is also the reason of hiring unqualified and not
competent people.

UBL only take Intelligence test (IQ) to analyze new employees for selection due to which people
who are not intelligent but have other skills are not hired. For Training and development UBL
use different method which are Soft Skill Functional Training, on-the job Training and class
room lectures. These methods are the main reason for UBL success and Good services.

For performance evaluation of employees UBL use Graphic rating scale method which promote
and give rewards to employees due to their good traits and performance during the session. UBL
conduct performance appraisal at the end of year so the session is of one year.

The compensation and benefits plan of UBL are also very good as to its competitors. They
provide Paid-time off, Retirement, Disability Insurance, Education and training programs to their
employees. Employees stress handling during the work is also best UBL handle stress of its
employees like many of its competitor are not be able to handle.

This is all the information that we get from UBL HR manager. The visiting card of HR manager
is also attached.

Chapter # 3

SWOT Analysis

3.0 SWOT Analysis

i. Strengths

• 3rd largest Bank of Pakistan in term of deposits

• 2nd largest Privatized Bank of Pakistan

• UBL offering Customized Products and service better than its


• UBL has improved operational efficiency and it is much improved than

its past.

• Courteous Customer service and fast delivery of online and offline

services has bring it among the top banks.

• Marvelous Image and Reputation of the bank in the eyes of its customers
because of their good service and their concern about customers.

• Extensive Branch network help the customer in easily accessing it.

• UBL Product positioning is very effective

• UBL target the segment like salaried person, business people and self
employed person

• UBL product positioning affect the life style of the people as they help in
improving standard of living

• 1400 Branches all over Pakistan and many outside the country which
helps a lot in connecting people.

• Stands in the list of Profitable bank in stock exchange

• Largest number of corporate deals by any bank is Pakistan

• Overseas Branches

• Attractive Salaries and incentives for employees

• Personnel of UBL are very well trained. Majority of employees have

many years of experience in banking sector and are an asset for the bank.

ii. Weaknesses

• No standardization in terms of branches some of the branches are very

attractive and most of the branches are not very good like other branches.

• In some regions, urban areas of Pakistan service of UBL is not good as

compared to other privatized banks

• The application time is also quite lengthy and this is not good for the bank
as this hurdle will be the cause for customer dissatisfaction.

• UBL is a step behind in using new technology as compared to other banks

• All branches need orientation for customer dealing.

• Most of the employees are overload with the work and promotion is also
not timely and this decreases the motivation level of employees.

• Most of employees are experienced and they are not able to deal
customers well, adopt new culture and above all they are unable to use of
new technology like computers.

• No separate training center to train their employees as a result of which

they are unable to deal with new technology in a better way.

• Employees are not well dressed and this matters a lot because customer is
noticing everything and it doesn’t create a good impact of employee.

• Workforce is not diverse

• Security system in most of the branches is not up to the mark and this is
one of the most serious problems now a days. If security will not be
improved customer will not prefer to come to the bank.

iii. Opportunities

• Bank can extend its network in other cities of Pakistan like other remote
cities, it would increase their sales and increase customer trust.

• Proper orientation of employees in all branches can help them to cope up

with foreign banks and changing situations.

• By bringing new technology and modern business processes will bring the
change and increase their profitability

• Call centre services should be improved to enhance their network and this
help them a lot in understanding what are the weaknesses in their

iv. Threats

• Large and increasing competition is facing by UBL because more and

more banks with more benefits for their customers are emerging now a

• High operating costs of UBL is going to be a great threat for bank.

• Lack of huge deposit is one of the hurdles are facing by UBL.

3.1 General observation

I have divided general observation in four parts which are as under. This analysis is mainly based
on my general observation.

• Problems at the branch

• Functional analysis

• Administrative analysis.

• Personal management’s analysis.

3.1.1 Problems at the Branch

Customer Satisfaction

In UBL customer dealing is well, but during rush hour the customer has to wait for a long time
for their turn. It’s quite hard for a new customer or potential customer to get the required

Poor record management and filing system

During my internship I observed that filing system of branch is not good. When certain record is
needed the staff has to struggle to find it out and a lot of time is wasted.

Unequal distribution of work

Work is not equally distributed. On one hand some employee have to work all day without
relaxing while some others have nothing to do at all. This not only creates confusion among
employees but also hurting and disturbing for overall setup of the bank. And above all it results
in dissatisfaction among customers as well.

Marketing visits

A useful mode of contact is through personal marketing visits. Such visits are important in
informing and perusing the existing and potential customers about the products and creating a
sense of belongingness with them.

3.1.2 Functional analysis

Formal Organization

Formal organization includes the activities of two or more person, which are cautiously
determined groups and coordinated towards a given objective. It provides base when people are
able to communicate with other, when they have common purpose and they are willing to work.

In UBL, we find a formal organization. Bernard referred to an organization as a formal when the
activities of two or more persons are coordinated towards a given objective. The formal
organization comes into being when people are able to communicate with one another or willing
to act and share a purpose.

In this formal organization of UBL the activities are carried out in a more formal way. In
theoretical terms it provides basis for communication with one another but in practice it is not
exercised because an employee at high level cannot get straight away to manager or SVP and ask
him about of his problem faced by him, because first he has to talk to his immediate superior and
follow a proper channel of communication.

Difference between theory and practice

A vast difference exists between theory and practice and UBL has written procedure but practical
work done by employees is a bit different from written procedures.

Bank duty to maintain secrecy

They don’t care about maintaining secrecy, especially during the rush hours. They speak loudly
about the account position and while getting clearance of cheque the person can easily get the
whole information from the ledger. The deposit clerk must be careful while passing any cheque.
In this regard another shortfall is in giving the information about the balance on telephone.

Excessive paper work

It is notified that due to the lengthy procedure of paper work the bank employee are over
burdened. They are unable to give proper attention to the clients and face difficulties in getting
their job done. One reason for lengthy procedure and excessive paper work in the bank is the
lack of computerized technology.

Delegation of authority

Manager has very limited authority; he has to take the approval from his management authority
i-e. In case of advance he has to take the approval of general and regional manager. The other
problem is created, when the manager is not present in his office, the customer have to wait for
hours. This discourages both customer and officers because they have to suffer a lot.

3.1.3 Administrative analysis

Job analysis is not effective

Only on the basis of job analysis it can be decided how a right person can be hired, trained,
compensated or promoted. It is very important for an organization that nature of the job is
described and job specifications are mentioned. Most of the employees are simple graduate and
do not have proper background about their job. This creates problems both for organization and
for the employees. In UBL salaries are given according to the seniority and grades. People with
simple or complex responsibility are getting the same salary and facilities. This creates
dissatisfaction among employees.

Carelessness in opening of account

When customer comes to open an account, the staff does not bother to check his/her place
phone number and permanent address. It is important because in case of overdraft by mistake or
anything which places his account in debit it will be difficult to trace him. On the other hand he
may be involved in any fraudulent activities against the bank. In this case the bank will be in
awkward position.

Lack of specialized training

UBL does not provide adequate facility of specialized training to their staff. Training is
generalized rather than specialized. As the worker finishes his training, he is inducted into a
specific field without having great deal of knowledge about the field.

Low Profit Rates

Most of the customers shifted their account to the National Saving Center because of the low
rates of saving deposit discourages the customers. Bank should increase their profit rates to
attract customers.

Poor job rotation

There is absence of job rotation . A person placed in one department remains their forever. It
reduces career opportunities as well boredom and in the end results in career platueing. Job
rotation is very important for employee especially for those who are newly recruited. The newly
recruit should be rated in all department of the banking in order to get familiar with working of
different departments so that when they get a responsible position they have know how of the
whole system.

Delays in Loan Advancement

It has been observed that there are delays in sanctioning of cases form the head office, which
results in customer dissatisfaction.

Lack of appreciation

Another very important thing which is ignored in the bank is appreciation if the employee on
their good performance. If hard work and performance of employees is not recognized and
appreciated they become dishearten which results in decline in performance.

3.1.4 Personal management analysis

Need for better training program

Need of training is greatly emphasized all around the world. Training of the personnel is part of
human resource management. It has been noticed that the training program of UBLis not

Once the candidate is selected and placed on the respective job. It becomes essential to train him
adequately for the task. They should learn new methods for motivating customers. The training
programmed of the bank should include scientific techniques to improve the decision making
and interpersonal as will individual needs of the employee both specialized to fresh as well as on
job to maintain the high standards of service.

Developing Managerial Leadership

Leadership is a practical term of visible, clear on objective and communicating better control on
financial and administrative matters. Manager is not only responsible for their own units in
business, but also in people terms i.e. training, recruiting, grievance handling and taking
immediate initiative in crisis situation to take majosr decision affection the future of the bank and
banking community.

Recruitment policy

Human resources are the lifeblood of the organization. If the personnel are recruited carefully
they can become asset to the organization in the case of carelessness a liability on the
organization. Bank is not following its recruitment policy properly due to favoritism, nepotism

and political pressure. Both the top authority and staff union tries their best recruit their favorites,
indulgence of political pressure add salt to the wounds. The persons selected through these
channels are infantile and do not work for the betterment for the bank.


Promotion in UBL is purely on the basis of seniority, so the new young person having high
qualification remains behind for quite a lot of time. Top management and staff union put
pressure for the promotion of their favorites, which gives a sense of deprivation to the deserving
employee and their efficiency is affected. As the concept of promotion is attached with better in
terms of greater responsibility, more prestige, greater skills and increased rate of salary. Thus a
better and impartial policy of promotion needs to be followed.


Transfer means when a person is shifted from one place to another place. It is done either that
person is needed more on the other branch or for improving his skill variety. It is the policy of
the Bank to transfer each employee 3 to 4 years.

Marketing at desk

Bank employee come in daily contact with many people who happen to deal with the casual
remittance, travelers cheques, safe custody, pensioners, depositing license fee and variety of
other functions and variety of other people with whom the Bank has no account or regular
business relationship. The Bank employees are doing very little on their own to explore the
possibilities of selling banking services to them as a marketing contributor. The entire Bank
community should make a conscious effort in addition to their normal work to explore the
possibilities of selling banking services to them. The market opportunities are hidden in every
dealing a banker handles; the question is that if he has the art and urge to seize such

Lack of business communication

There is no proper way to give information to their customer. To avoid this minor dissatisfaction
and tension in the mind of customer, and deficiency of the service, it is recommended that the
bank should provide brochures etc containing information in details.

Some general information should be placed in information notice board on the entrance where
customer can see it easily or it should be self-attractive.

Chapter # 4

Recommendations & Conclusion

4.0 Suggestions/Recommendations

During my internship I analyze the HR function of United Bank Limited are not one of the best
HR function of corporate world. Many of its competitors have better HR function as compare to
UBL Bank. I suggest and recommend that first of all

• There should be a development of Assessment Center so that employees should

be train at high level.

• Referral should be ignored in order to get the talented person.

• I suggest that UBL should used Diversification corporate strategy in which new
and innovating services should lines

• UBL should use Participant Diary/Logs and Position analysis Questionnaire

method with their current methods so for writing Job description

• UBL should use a combination of Ratio Analysis and Trend Analysis (study of a
firm’s past employment needs over a period of years to predict future needs) for

• I recommend UBL should use University Recruiting from honored universities.

• Panel Interview should be conducted then individual interview

• I suggest that UBL should use Paired Comparison Method for performance