United Bank Limited

Layyah Branch, Layyah

A REPORT SUBMITTED TO INSTITUTE OF MANAGEMENT SCIENCES, BZU
LAYYAH, IN PARTIAL FULLFILLMENT AND REQUIREMENTS FOR THE
DEGREE OF BACHLOR IN BUSINESS ADMINISTRATION

Submitted By
M.USMAN

BBAML-16-12

BZU BAHADUR SUB CAMPUS LAYYAH

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 PREFACE
In Bachlor of Business Administration, Internship Program is an important part to give
students an opportunity to have experience of practical field. Unless and until the students
experience the novelty of practical work, their knowledge of what they study in theoretical
courses remains incomplete. The most important point in an Internship Program is that the
student should spend their time in a true manner and with the spirit to learn practical orientation
of theoretical study framework.

This internship report is on my six weeks practical training at United Bank Limited
Layyah Branch, Layyah. In this internship report I have tried to give details about the United
Bank Limited, working and the functions of different departments of the bank.

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 ACKNOWLEDGEMENT

The internship opportunity I had with UBL Bank was a great chance for learning and
professional development. Therefore, I consider myself as a lucky individual as I was provided a
chance to work in this organization.

First and foremost, I would like to express my thanks to Allah Almighty who has given me the
strength to finish my internship. I do thanks for His blessings on my daily life, good health,
healthy mind and good ideas.

I express my deepest thanks to Mr. Muhammad Yousaf (Branch Manager), Mr. Muhammad
Awais (Operation Manager), and all other staff and employees of UBL Bank Layyah branch for
their careful and precious guidance which are extremely helpful during my training session and
for the facilities that they arranged to make my work easier.

I am also highly thankful. to my faculty under whose able guidance I completed my internship
program successfully.

I also pay my gratitude and thanks to my siblings for their gentle encouragement and support.

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 EXECUTIVE SUMMARY
Banking operations and services are one of the basic needs of an economy. These include
acceptance of deposits and disbursement of advances to individuals and others at higher rates.
Banks perform various fundamental factions, which are directly or indirectly contributory
towards economic and social development of countries.

The purpose of this report is to study operations and analyze performance of UBL to see
whether the bank is successful in its operational performance or not, and recommending possible
solutions for problems. For meeting the purpose both secondary and primary data have been
used.

United Bank Limited (UBL) is the second largest bank of Pakistan with assets of over Rs.
1 Trillion and a solid track record of fifty six years - in addition to the convenience of over 1320
branches serving its customers throughout the country and also at several overseas locations. In
this six weeks internship program I have learned about banking from experienced managers
running these sections.

This report contains the information and learning about UBL that I learnt during the 06
weeks internship period in United Bank limited. This report deals with History & Nature
(Business) of the UBL, its Products and Services, information about main offices and also the
review of various departments of the Bank. This report also contains Finance & Accounting
operations of the UBL, role of Financial Manager (Branch Manager), Use of Electronic Data in
core decision making and the Sources, Generation and Allocation of funds used in the banking
operations of the UBL.

Recognizing the need of Islamic banking, UBL also provided number of Islamic banking
services like Islamic Deposit Schemes and Islamic Fund Based Facilities.

At the end of this report, on basis of my observation during internship, and SWOT analysis of
UBL is provided. Suggestions are also recommended as per learning from analysis. This report
will provide a better and brief learning about United Bank Limited.

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 Table of Content

PREFACE ...................................................................................................................................2
ACKNOWLEDGEMENT ...........................................................................................................1
EXECUTIVE SUMMARY .........................................................................................................2
INTRODUCTION ......................................................................................................................4
Vision .........................................................................................................................................5
Mission .......................................................................................................................................5
Values .........................................................................................................................................5
Board of Director ........................................................................................................................5
Product and Service ....................................................................................................................7
ORGANIZATIONAL STRUCTURE ..........................................................................................8
Departments of the UBL .............................................................................................................8
MY LEARNINGS..................................................................................................................... 10
SWOT ANALYSIS ................................................................................................................... 15
PEST ANALYSIS..................................................................................................................... 17
Application of class room learning in organization .................................................................... 18
If I was manager in organization: .............................................................................................. 19
Suggestion and Recommendations: ........................................................................................... 19
Reference .................................................................................................................................. 20

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 INTRODUCTION
Brief history of the organization:

FORMULATION:

In June 1957, Mr. Agha Hassan Abidi decided to open a Bank different from others, to
provide modern facilities to trade and industry and to promote thrift and habit of saving amount
common thereby stimulating the economy as a whole. Necessary formalities completed for
obtaining registration certificate from State Bank of Pakistan to perform business activities. After
passing through all these formalities on 7th November, 1959 United Bank Ltd came into
existence as a Schedule bank.

The Head office of the Bank was established in the New Jubilee Insurance House, 1.1
Chundrigar Road Karachi. It was registered as a joint stock company. The bank was incorporated
with an Authorized Capital of Rs 20,000,000 and issued and subscribed and paid up capital of
RS 10, 00,000. Saigol family owned it and Agha Hassan Abedi was its first managing Direct0r.

NATIONALIZATION:

As a policy of nationalization fourteen commercial banks was merged into five big banks
. So consequently on 21st December 1974 Commerce Bank and Union bank was merged with
the UBL. Mr. Mushtaq Ahmed khan Yousafi took over the charge of UBL. Now, there are six
directors, a secretary and a president

PRIVATIZATION OF UBL:

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 UBL was the largest privatization attempted by the government of Pakistan, launched in
June 2001, with 21 interested parties. It was impacted by the adverse developments of the
September 11, 2001 and was finally concluded in October 2002, which left stage only three
bidders. The consortium comprising Best way Group (BG), out of the U.K. and Abu Dhabi
Group (ADG) from the U.A.E. were finally the winners at a record price. Sale proceed was Rs
12350 million. This signaled the strong confidence reposed by these investor groups, in the
improved governance of the country, the economic potential, the banking opportunity and the
existing management of the bank.

Vision
To be a world class bank dedicated to excellence, and to surpass the highest expectations of our
customers and all other stakeholders
Mission
 Be the undisputed leader in financial services for our customers

 Most innovative and fastest growing bank in targeted businesses

 Continue to diversify across chosen geographies
 Achieve operational excellence with the highest level of compliance
 Consistently create leaders through inspired human capital
 Contribute positively to the communities we operate in

Values
 Customer first
 Honesty of purpose
 Teamwork
 Excellence
 Meritocracy

Board of Director
Shaikh Nahayan Mabarak Al Nahayan Chairman

Sir Mohammed Anwar Pervez, OBE, HPK Deputy Chairma

Ms. Saima Kamil President & CEO

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Mr. Omar Ziad Jaafar Al Askari Director

Mr. Zameer Mohammed Choudrey Director

Dr. Ashfaque Hasan Khan Director

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 Product and Service
SME Product & Services
 UBL Business Partner
 UBL Business Partner
 UBL Mukammal Current Account

Deposit Products
 UBL Savings Account
 UBL Zindagi Account
 UBL UniZar Foreign Currency Savings Account
 UBL UniZar Foreign Currency Current Account
 UBL UniZar Foreign Currency Term Deposits Receipt
 UBL FCY UniFlex
 UBL Regular Term Deposit Receipts
 UBL Mahana Aamdani Savings Account
 UBL Mahana Aamdani Term Deposit
 UBL Basic Banking Account
 UBL Asaan Account
 UBL First Minor Savings Account
Consumer Loan

 UBL CashPlus
 UBL Address

 UBL Drive
Card Products

 UBL Wiz
 Virtual Prepaid Card
 UBL Mega Wallet
 UBL Credit Card
 UBL Premium Master Debit Card
 UBL Signature Debit Master Card
 UBL Discount Alliances
 Card Facilitation Center
 Electronic Funds Transfer Guidelines
 Protecting Your Payment Cards

 ATM Biometric Usage Steps

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 ORGANIZATIONAL STRUCTURE
Head Office

Provisional Head Quarters

Zonal Office

Hub Branches

Branches

Departments of the UBL

HUMAN RESOURCE DEPARTMENT: (HR)

UBL is the place for you if you are willing to materialize all your deliverables in alignment with
the organization’s holistic vision to grow and excel. Committed and competent work force is the
primary asset in providing value addition to stakeholders of a business organization.

HR Division is responsible for attracting, selecting and recruiting the right people from
the market. UBL is proud of its highly professional, transparent and objective approach in its
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recruitment and selection processes. After applying the eligibility criteria, which depends on the
Job grade, a series of selection procedures are applied before hiring employees. Normally the
candidates go through the process of test, group discussion and interview. The Interview is
conducted by a team of internal as well as external professionals of the related area.
Sophisticated recruitment and selection tools like oracle based data management system; online
application and behavioral based interviewing techniques have been introduced.

Consolidation of Bank's budgets, its monitoring and constant review of various financial
indicators. Finance Division works as the back bone for all Banks’ operations.

The Division, which reports directly to the President and Chief Executive of the Bank, has been
instrumental in preparation of Bank's business plans and future strategies.

INFORMATION TECHNOLOGY DEPARTMENT:

Operations of UBL have been significantly streamlined post-privatization, however

further plans for improving operational efficiency are under-way. Currently the bank is using
data software called SYMBOL for all its transactions record. This software is utilizing Oracle
Financials at the back end. As all daily banking transactions are stored at the respective branches,
consolidation at the head office takes place at day end.

Information Technology Department is related with all computer activities like to manage
the Central Data Base (CDB) which is placed in Head Office of UBL Karachi in all the daily
transactions in all the branches of the country are up-dated on daily basis. This Department also
makes the web site new news to web site

AUDIT DEPARTMENT:

The responsibility of this department is to audit and inspect the operations of the
branches. Either the operations are Regulated by the branches in a right way or not. The Board
Audit Committee (BAC) comprising three members meets every quarter and is responsible,
among other things, for ensuring the effectiveness of the internal audit function and systems for
monitoring compliance.

Internal audit procedures include routine branch and business function audit as well as
special surprise audits. There is also a dedicated compliance division mainly to follow up on the

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recommendations advised by the audit team. The deliberations of BAC however reflect concern
regarding the overall control environment. The audit and inspection department has been
highlighting issues with regard to operational control weaknesses at the branch level.

CASH DEPARTMENT :

This is sensitive department of the branch. No other person is allowed to enter in the
premises of cash department. As obvious from name that this department deals in cash deposits
and payments. Cash department is performing its functions/duties manually. For payments and
receipts, it has to maintain certain sheets, books of accounts and various ledgers

.MY LEARNINGS
Standing in the IMS dept. of Bzu Layyah, I heard the good news of me having a six week
opportunity to interact with a world class bank. All these six weeks were full of events, full of
learning and most importantly full of professional working. Here 'professional' regards in all
from clerical to managerial work. In these six weeks period, the best thing to me was the
authority and dependency of customers upon me, when they come with a hope that I'm there to
guide them. Knowing all is not learning, the real learning is to convey right. I tried to learn real,
see real UBL, and tried to comprehend the difference between what we look from outside and
what is going on inside.

UBL is full of experienced and professional traditional bankers. As it perfectly suit the
environment we are operating in, you attitude has helped UBL in capturing masses. In the private
sector, no doubt its a fast growing bank, but here's something that's still unrealistic to the policy
makers. The line of unsatisfied customers is increasing, not because we are not serving well, it's
because customers are not understanding the YOU attitude right. Every customer wants to make
sure his work is done at the first convenience, but they are not concerned about the responsibility
with which every employee is working. Back to my real learning’s in my six week internship, I
worked in customer service relationship (CRO) department, as well as in Clearing
department. Because of some work load, I was unable to learn much about other cash and
accounting department. Here is my countdown learning of six weeks.

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CLEARING DEPARTMENT:

My initial days at clearing department was the liveliest experience of my internship. Though
physically I was there just to assist the customer service officer, but it turned Out to be much
more for me. That is when I first actually imitated as a presenter of UBL to customers, when to
many people, I'm their hope. Working at Customer Service Department, I did counter with
different types of Customer and filled the deposits slips under the supervision of the officer. It’s
always very important to understand the needs of your cnic.

Clearing of Cheques:

Outward Clearing:

My experience at Bosan road branch started from the clearing department. Right in the
morning cheques collected from the drop box simply flood over my table. According to all I
learnt through listening, viewing and questioning is summarized below.

Documentation of Consumer Cheques:

All the cheques collected are first categorized into

 Credit Cards
 Auto Loans
 Personal Loans
 Cash Line
 Verified cheques are then validated before being documented into the drop box
collection sheet for our daily drop box collections record. To anticipate the approval of cheques,
we need to validate some important specifications of all the cheques. They are:
 Date: Cheque should not be post dated or out of date.
 Figures: Amount in words and figures should match.
 Signature: Drawers signature must be clear.
 Intercity: Cheques must not be of other cities. Intercity clearing cheques for
consumer departments are not entertained
 Payee’s Name: Payee’s name should be written, and endorsement should be as
per the beneficiary of the cheque.
 There should be no over writing in everything penned.

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 All the filtered cheques are then entered into the collection sheet in which following
information is entered.

 Cheque No.
 Name of bank
 Name of Customer
 Amount
 Document No.

All the documented consumer cheques are then posted into the system. Which I can not
learn due to there security reasons.

Cleared Cheques:

Now the next day when clearing is confirmed by NIFT, respected accounts are debited.
We go into the banking option and in transfer, we debit all the respected accounts. Same is the
case with intercity and OBC cheques.

In documentation, debit and credit vouchers are made, which show total amount of
clearing as per day.

Returned Cheques:

All the cheques which are returned, due to any reason, are then reversed. They are
debited back in the clearing schedule. All the returned cheques are documented in the cheque
return registers and all the account holders of returned cheques are charged with service penalty.

*All the vouchers are signed by the designated officer and all the entries over 50,000 are
supervised.

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Remittances Department:

After having experience in clearing department I moved to Remittances department where I

learned that how the transfer of money from one branch to another branch takes place. In this
department I perform following duties.

 Cashier’s Cheque
 Demand Draft
 Security deposits Receipts
 Telegraph Transfer
 Pay Order

Before going in details I want to explain one thing that comes in mind while performing
remittance activities that is

Suppose if a person has account in UBL Rawalpindi and that person is resident of Multan. How
he/she will deposit money in its account from UBL Multan Branch. I observed this thing and
found that what the procedure to deposit money in his account is. He/she will take online form,
fill it with care and submit in cash management division. Then it will be transfer by cashiers at
the end of the day.

I found it necessary to explain this problem, because I personally handled such type of issues in
branch. Some customers directly filled the deposit slips to deposit it directly in the account but it
is not possible to deposit money directly in another branch account of same bank. Another reason
of explaining it is that first of all I myself was not sure about that what we should do if such type
of transfer is takes place, and it belongs to remittance activities. Now, all other activities that was
learned and handled by me in remittance department are given with detail below.

Cashier’s Cheque (CC) /Corporate Bankers Cheque – CBC

Cashier’s Cheque is a negotiable instrument, which is drawn by one branch to another branch of
the same bank. In case of agency arrangements Cashier’s Cheque can also be issued by one
branch of the bank payable to other branch of the payee bank e.g. CC issued by UBL payable by
UBL.

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If a person wants to make payment from one city to another city then he/she can make payment
through Cashier’s Cheque. Bank charges a commission for performing this kind of service
according to bank rate schedule, which is revised after six months.

Demand Draft:

DDs are always a secure way of paying remittances in other cities. Both account holders
and walk in customers can avail the facility of DDs. Charges tend to differ for both customers
but the advantage tend to be same. DDs are made in the favor of beneficiary and remitter either
pays in cash or through cheque.

When DDs are issued, head office account is debited and remitters account is credited, on
presentation, head office account is credited and beneficiary’s account is debited

Security Deposit Receipts (SDR)

Security deposit Receipts are your safe way of making payments. Not only it’s free of cost for
A/C holders, it also offers you the best liquidity solution as the cash continues to be with you
until and unless your deal gets final and you pay off. In case of cancellation, it's also free of cost
for A/C holders and their amount is returned to their normal account balance.

Telegraph Transfer (TT)

It is just a shape of Cashier’s Cheque. The difference is that it is not drawn on the specified
branch. It can be drawn on any branch of the same bank. The paying bank has to verify the
signatures and after verification payment is made.

Pay order (PO)

Pay-to-order instruments are negotiable checks or drafts that are generally written as "pay to X or
order."Payment order is an international banking term that refers to a directive to a bank or other
financial institution from a bank account holder instructing the bank to make a payment or series
of payments to a third party. These are the Instructions to transfer funds sent via paper and/or
electronic means". A form is filled up for pay order w hen money move within the city the party
made payorder. Pay order is issued and played by the same branch.

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 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 a 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.

STRENGTHS:

 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.
 Advances investment of the bank shows a constant growth pattern.
 The bank is owned by parties of financial repute and credit worthiness like, SBP, Best Way
group and Abu Dubai group. Others are GOP, NBP Trustee Department, State Life Insurance
Corporation etc.
 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 run by highly professional recruited from and trained by foreign banks like City
Bank

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

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  The bank has large number of employees who are simple graduates with no banking
knowledge.
 Unsatisfactory working conditions.
 Employees don’t promotion for many years
 HRM is not much effect ive and act ive in the bank. Every branch must have
one HR counter

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

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

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 factor, lack of consistency in policies due to political instability are some of the other
major threats.

PEST ANALYSIS
POLITICAL

Pakistan despite all international and public perceptions, today is a functioning democracy and
gradually there is a change in complexion and composition of legislatures with more educated
people and women (27% of National Assembly and17% of Senate) entering into politics
Similarly it helps in designing best strategies to implement that could support the revival of bank
industry. Like in the era of nationalization banks had to suffer as other industries that’s why
that impact is still found in the performance of this industry.

ECONOMICAL
Although banking sector development is important at the early stage of economic growth,
general liberalization presuming a homogeneous bank role may not necessarily promote growth.
The estimated cost structure indicates that state-owned commercial banks are large enough,
while development financial institutions and private banks can expect to obtain cost-
saving advantages by expanding their operations. Since scope economies are significant,
portfolio diversification generally increases bank profits. In addition, privatized banks are the
most efficient, followed by foreign and private banks. Public banks are the least efficient.

SOCIAL

Banks always helped people in improvement of living condition of poor people in various forms
like giving loans to poor for starting business or directly providing them the instruments that
could enhance their living conditions. Similarly UBL always tried to provide the needy people
loans on soft terms and helped also to decrease unemployment by providing job opportunities.

TECHNOLOGY
The Banking sector in Pakistan has experienced a rapid transformation. Just about a decade back
this sector was limited to the Sarkari (nationalized) and co-operative banks. Then came the
multi-national banks, but these were confined to serving an elite few. One could regard the past

17
as the medieval ages in the banking industry, wherein every branch of the same bank acted as
an independent information and multi-channel banking (ATMs, Net banking, Tele-
banking, etc) was almost non-existent. Today banks have to look much beyond just providing a
multi-channel service platform for its customers.

Application of class room learning in organization

 Class room learning is always important for the student. First of all the discipline which
we learned in the class is very essential I feel no difficulty about discipline in the
organization.
 We study many subject in the class room about accounting, behavior and ethics these all
subject are perfectly applicable in the organization.
 In class room we build team work and coordination with each other team work has keen
importance in the organization.
 In class room teacher play a vital role and supervise the students and in the organization
boss plays this role.
 In class room teacher play a vital role and supervise the students and in the organization
boss plays this role.
 In class room main focus is on behavior and attitude of the students this give me great
assistance in the organization.
 We take confidence in the class by performing different activities like presentation and
demo this is greatly applicable in the organization.
 As an internee in khushhali bank i learnt that how practicle work is done in organization.
I also learnt,
 How company make SWOT ANALYSIS of organization
 Ethical values in the organization
 Studying money and banking was also a success for me while working in the
organization because the concepts of mortgage, pledge, letter of credit, letter of
guarantee, banks as a mode of financing etc were already been studied in the course. So
when I was questioned about what is debt financing, what is the difference between
pledge and mortgage, what is basically finance and what is the difference between fund

18
 based and non fund based facility? I quickly responded to the questions and for that I
receive appreciation and our institute was also appreciated.
 The concept of debt financing which I have studied in finance, the concepts of mortgage,
pledge and lease which I studied money and banking, the concepts of payables and
receipts which I have studied in accounting and in the reporting.

If I was manager in organization:

 If I was manager out there I will just try to follow the rules and regulations.
 Be a Problem Solver
 Take on (Small) Management Opportunities
 Understand the Whole Company—Not Just our Role
 Be Professional
 Our vision is to be the leading financial services provider, partnering with our customer
for a more prosperous and secure future.

Suggestion and Recommendations:

 To reduce the poverty, it is necessary that disbursement should be focused to the point

 credit processes should have kept simple

 group members can reduce or increase according to population of working areas

 overcome the social and cultural gender biases against female participation

 increase focus on deposit mobilization to sustain their operations in future

 Establish incentives for retail providers to diversify funding sources

 Encourage innovation, new specialized actors, new approaches, and diverse financial
services

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 Reference
www.google.com

www.ubl.com

annual reports

visit of ubl

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