Brief Introduction:

United Bank Limited (UBL) leads the banking and financial services sector in Pakistan. With a customer base of over 4
million, the Bank boasts Pakistan’s widest network of over 40,000 customer touch points this includes more than 1,400
branches, above 37,000 Omni Agents and over 1,400 ATMs. UBL was declared Pakistan’s ‘Best Bank for Corporate Finance
& Capital Market Development’ at the Pakistan Banking Awards 2017.

History of United Bank Limited:

It begun with a vision, a vision of unparallel progress and unmatched excellence true to the spirit of the era! November 7th
1959, Pakistan witnessed an event that would change the way we banked forever. It was not just the inauguration of UBL’s
first branch at I.I. Chundrigar; it was also the birth of the culture of service, a culture of innovation and a culture of
financial excellence!
By June 1960, shortly after six months of opening its doors to the public, UBL had branches in:
 Karachi
 Lahore
 Lyallpur

In 1963, UBL became the first bank in Pakistan to have a branch overseas- on William Street in London, United Kingdom.
True to our promise of providing service and care beyond the ordinary to our customers, UBL and You have had a history.
The first saving scheme for school going children was launched as early as 1960 or the formation of Pakistan’s first Staff
College of employees in 1964, UBL, through the motivation of its staff and the trust of its customers, continued to grow at
a spectacular pace. In 1967, UBL had hit the dawn on information in terms of technology, by introducing computer banking
to Pakistan and in 1971. Small wonder then, by 1978, UBL had a pledged economic department, had acquired two
international banks.

UBL BRANCHES AROUND THE WORLD

Total Branches 1400
Karachi 146
Lahore 104
Islamabad 35
Multan 43
Faisalabad 41
Peshawar 33
Rawalpindi 34
Gujranwala 33

ATMs 1400
Headquarter Karachi
9th Floor, UBL Tower, I.I. chundrigar Road, Karachi.
74000.
Conventional/Islamic Branches Every branch of UBL bank has Islamic window to
facilitate Islamic banking customers.
Subsidiary Company UBL Ameen
Parent Company United Bank United Bankshares is a bank holding
company headquartered in Charleston
Total Worth Rs. 420 trillion

No of Employees Approx 13,233

Product and Services:

  Interest Free Loan
UBL Ameen Islamic Banking  Currency Exchange Under Islamic
Services Laws
 Musharakah and Mudarabah
 UBL Current Account
 UBL Mukammal Current Account
 UBL Basic Banking Account
 UBL Saving Account
 UBL Ameen Premium
Accounts  UBL Mahana Amdani Saving
account.
 UBL Senior Citizen account.
 UBL Urooj Account
 UBL Good Citizen Account
 Internet Banking
 Visa Debit Card
Products  ATM Card
 Master Card
 SMS Banking
 SME Finance
 Treasury
FINANCE 

Agricultural Finance
Corporate Finance
 Trade Finance
 UBL Finance
 UBL Cash Plus
LOAN  UBL Personal Loan

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.

Core Values
 Customer first
 Honesty of purpose
 Teamwork
 Excellence
 Meritocracy
Objectives of UBL Bank
Our mission is to cater to the wide array of corporate needs and ensure satisfaction through product innovation,
personalized banking, and prompt service. We provide corporates with a range of domestic and international financial
solutions designed to help them achieve their business goals.

STEEPLE Analysis of UBL Bank

SOCIO-CULTURAL FACTORS:

Demographic changes:
Through their impact on GDP and population growth rates – may result in a downward pressure on banks'
intermediation ratios and to reduced demand for consumer credit and mortgages, lowering interest income.

Traditions:
The identified traditional practices with MBS are expected to bring clarity to the issue of employee response,
customer reaction and loyalty.

Level of Education:
Customers with low financial literacy tend to spend more, buy on credit, and pay unnecessary fees and fines,
resulting in lower levels of wealth over time. Those with higher levels of financial education are able to make good
financial decisions, save, pay bills on time, invest, and otherwise increase wealth.

Customers Preferences:
First, your current customers are far more likely to open more accounts or use more services if they've had an
overall positive experience. A client with just a checking account could add a savings account and use you for their
mortgage when they buy a home.
TECHNOLOGICAL FACTORS:
The use of technology in every field has become essential. With the upgradation of technology,
upgradation for banking industry has become necessary for them. Technological factor is also very
important factor which effected on banking industry in positive and negative way. Financial technological
services regarding deposits, lending, payment transfers, utility services and so on, have on boom after
technology revolution in banks.

SBP Framework:

The SBP has introduced a framework to grant lisences for setting up wholly digital banks that will provide
all the banking services, from account opening to deposit and lending, through digital means and the
customers will not need to visit any branch physically. Other recent digitalization initiatives introduced by
the SBP, which are gaining traction and have opened new avenues for introducing innovative solutions,
include customers’ digital on-boarding, Roshan Digital Account, Raast — instant payment system,
electronic money institutions lisences, Asaan Mobile Accounts.
Under this framework, the SBP may grant two types of digital bank licences, Digital Retail Bank (DRB) or
Digital Full Bank (DFB). DRBs will primarily focus on retail customers while DFBs can deal with retail
customers as well as business and corporate entities.

Block chain:
A block chain is essentially a shared, encrypted “ledger” that cannot be manipulated, offering promise for
secure transactions that allow anyone to get an accurate accounting of money, property or other assets.
The block chain offers potential to the traditional finance sector due to its ease of transaction with
verification from any point on the platform.

Cyber Security Threats:

With the advent of technological changes in banking service, with some opportunities, threads have also
grown up. The first and foremost risk is to keep data save and in protection umbrella from hackers. Cyber
security issues, social media, data privacy and third party risks have emerged strongly.
The emerge of fin tech in Pakistan has created a new challenge for traditional banking sector in Pakistan.

Fin tech Industry:

Fintech is a service technologically incentive to promote digitalization in financial services then traditional
banking system. The Jazz Cash and Easy Paisa are most common example in Pakistan for Fintech. Through
Fintech services, non-bank people of Pakistan can easily access to if Fintech around 7 percent. If we talk
about Fintech importance, almost 14 billion non-banks persons
this reliance on automation also causes a lingering risk of a breach in cyber security which can ultimately
cause the entire fin tech industry to collapse. This is because no physical data or money is stored instead all
of it is stored via the cloud.
 Review: Technological factors have average impact of both positive and negative. But if we see the
rankings, the positive factors influence more on banks.

ECONOMICAL FACTORS:
In the connection of economic factors, the role of bank in economy of any country cannot be undermined.
There are several factors of economy that possess positive and negative factors both.

Gross Domestic Product:

Gross domestic product (GDP), the value of all goods and services produced in a country, envisages the
situation of people/public in terms of domestic conditions. The role of bank in creating GDP is very
important. The value/ goods produced in Pakistan, 57 percent have financed by banking sector. However,
the self-role of banking industry in GDP of Pakistan is 7.7 percent.

Inflation:
The current inflation in Pakistan is also the source of worry in terms of their operations. The current
inflationis reducing the spending power of people in Pakistan. The consumer price Index inflation surged in
Pakistanis
24.67 percent. In which the role of SBP become very important. The monetary policy of SBP indicates the
direction to commercial banks about their lending and financing projects. The policy interest rate is the
rateat which the central bank will pay or charge commercial banks for their deposits or loans. This rate will
consequently affect the interest rates that commercial banks apply with their customers, both borrowers
and depositors. The current policy rate of SBP is 15 percent. However, the commercial banks charge from
their clients about 20 to 25 percent to undertaking the risk factor.

Currency Valuation:
The depreciation/appreciation of Pakistani currency also effects the operation of commercial banks. The
State Bank of Pakistan (SBP) on Friday reported the closing price of the dollar at Rs236.84, an increase of
96 paise compared to the previous day’s rate of Rs235.88. (Published September 17, 2022). According to
experts, the commercial banks, the average banks’ buying per week was around two to four million dollars,
which has now gone up to $12m on an average. The foreign travelers want to seek currency is about
$10000 average. The should decrease the limit of buying foreign currency exchange by $5000. the
government is trying to boost country’s foreign exchange reserves by restricting spending and borrowing
from global lenders, but the outflows from banks’ via credit cards could undermine the efforts. Some
experts assert that some banks buys dollars from grey market at a high rate. the outflow through credit
cards has added to the vulnerability of the exchange rate, which further strengthens the US dollar in
Pakistan.
Employment:
After pandemic, the world’ economy is striving hard to grown out the economic recessions from world’s
economy. Millions of people lost their jobs during pandemic. However, after pandemic era, there is a need
to help in growing private sectors to create new jobs in the market, especially SMEs because no
government in the world that can alone fulfill the demand of jobs without assistance of private sectors. Due
to risk factors, the banks in Pakistan are largely investing in government securities rather than private
SMEs. This issue is highlighted by the World Bank in its report. Especially in Pakistan, which has the labor
intensive economy, there is a need to invest or finance in private sectors with feasible rate and SBP should
formulate policies regarding this.
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ENVIRONMENTAL FACTORS:

The environmental problems in the whole world is becoming an alarming situation. Pakistan, a country,
which is not primary responsible for global warming and climate change but include in those’ list, which are
highly venerable. So, it is a reality, and Pakistan should be ready to combat with this reality.

Environmental
Hazards:
For banking industry in Pakistan, the environmental implication may be the opportunities or threads.
Usually banks or other financial institutions have those clients or customers who are lending money for the
projects that are menacing for environment. For example, a coal mining projects for private companies
and other projects that can produce carbon emissions above predetermined measures and authorize, and
government put bans on these projects, obviously the lending business of banks may be effected. Bank
may also face some legal risks if it invests or finances on environment unhealthy projects. Reputation of
bank may also be effected by invest on those projects that are environmentally unhealthy.

International
Concerns:
Despite of above all factors, banks have many opportunities and social obligations as well. In this
connection, the United Nations Environment Programme (UNEP), this is the main UN institution that deals
with environmental questions. As part of its work, it has established a Financial Institutions Initiative on the
Environment which is a partnership between UNEP and leading banking and insurance companies to
promote sustainable development and environmentally sound business practices. The basic role of the
Initiative is to promote the integration of environmental considerations into all aspects of the financial
sector’s operations and services.

Green Banking Guidelines:

Pakistani banks are not primary responsible for climate change, but due to highly effected country by
climate change, it has become an obligation to banks in Pakistan to transform themselves as green banking
industry. In this connection, State Bank of Pakistan (SBP) issued Green Banking Guidelines on 9th October,
2017, but aftermath, no further policy/guideline/regulation has been issued by the central bank yet. A
review of the banking industry’s financing activities shows a continuous increase towards the financing of
various polluting industries such as paper, coal, chemicals, mining, etc. A minimum target should be given
to banks by the SBP, such as in Bangladesh where all banks have a 5pc green financing target as part of
their total financing portfolio.
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Barriers to Green Banking:

Researchers have identified a number of barriers towards green banking adoption, including insufficient
government support, difficulty in attracting clients towards clean energy projects, reluctance in stopping
financing of high pollution industries such as the coal or oil sector, lack of practical examples in this field,
inadequate knowledge of its business case, and high cost of certain green initiatives, such as biodegradable
ATM cards and green internet technology.
Among these barriers, the most relatable to an economy like Pakistan is the low level of stakeholder
awareness regarding its importance. The majority of the bank branches cannot be converted into green
branches because of incompatible locations, old architecture and other issues. Many branches do not even
have the infrastructure for the installation of solar panels. In the light of these issues, the SBP should not
issue a license for opening a new bank branch unless it meets the international green building standards.
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POLITICAL FACTORS:
At present time, there are 41 schedule banks are operating in Pakistan according to State Bank of Pakistan.
These banks are highly contributor in the economy of Pakistan. Commercial banks are highly sensitive
regarding the political situation/factors in a country. In other words, the political situation in a country
directly effects on the performance of banks.

Modes of Government:
The important modes of government in Pakistan are Democracy and Dictatorship. Almost half years from
the inception of independence have gone throw the era of dictatorship. Both democracy and dictatorship,
have their own repercussion on banking business. For example, Non-Performing Assets (NPA) of banks are
considered as a loss for banks. In democracy, the percentage of NPA in Pakistan is about 23 percent or
76,800 crores in banking sectors loan. Mostly from them are sugar and energy sector loans. The instant
political pressure/Mafia are involved in NPA. This NPA throw down the interest profit of banks via loans,
that will directly hit the growth of banking sectors and return to shareholders.

Political Stability:
Investors need political stability in a country to make investment. Foreign investment is the main source of
making dollars for economy. This investment requires a proper channel to scrutiny and verify of flow. The
political drama in Pakistan or 4 to 5 months led the investors more ambiguity and less investment
activities.

Bankruptcy:
Along with other factors, Pakistan’s political situation is putting negative economic situation. Experts has
showing concerns about foreign exchange reserves, that are vanishing gradually. In other words, Pakistan
is on the verge of bankruptcy. Foreign investors have fear to invest in Pakistan due to political fight. So the
repercussion of all these scenario is coming in the form of fear among the deposit-holders. In case Pakistan
goes bankrupt, the accounts of bank customers may be seized for temporary basis. People will not be able
to use their accounts for several periods. This scenario envisages as the harsher for customers/public but
banks as well.
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LEGAL FACTORS:
The legal factors also effect on banking industry. In Pakistan, commercial banks are controlled by State
Bank of Pakistan (SBP). The rules and laws and all other legal matters are the scope of SBP. SBP announces
its monetary policy at the beginning and middle of fiscal year.

Monetary Policy Requirements:

Monetary policy involves central banks’ use of instruments to influence interest rates and/or money
supply in the economy with the objective to keep overall prices and financial markets stable.
It is mandatory for all commercial banks in Pakistan to implement monetary policy according to the SBP
requirements. Monetary policy primarily focuses on inflation and deflation control via interest rate and
other tools. SBP also determines the sufficient liquidity ratio for commercial banks to meet their Net
Demand & Time Liability (NDTL) requirements. The SBP uses CRR and SLR and Repo Rate and Reserve Repo
Rate etc.

Anti-Cyber Crime Rules:

However, with above factors, the protection for customer data is also mandatory for banks. Recently, last
two to three years, the cyber-attacks on the customers’ data in banks has been increased. Especially in
2018, this has been the worst year for cyber-security in Pakistani banks. According to Dawn news, “hackers
based outside Pakistan had breached the security systems of several local banks. "The hackers have stolen
large amounts of money from people's accounts,". In 2022, hundreds of customers of one of Pakistan’s
largest banks reported that they had lost money through unapproved bank transfers, bill payments and
online purchases.
So, Pakistan need a strong anti-cyber-crimes network to mitigate this unlawful crime and protect digital
transactions. Otherwise, people would loss trust from banks’ security and hit the vision of digitalization of
banks.
To mitigate cyber-threats and improve cyber security the ministry of Information Technology and
Telecommunication have prepared a NATIONAL CYBER SECURITY POLICY 2021, in which the certain
measures and rules are highlighted to mitigate the chances for hackers.

Customer’s Secrecy:

Bank’s duty to maintain secrecy of customer’s information is not moral but legal one. Section 33A of the
Banking Companies Ordinance, 1962 has imposed legal duty upon the bank and its officials to not to
disclosed customer’s information to any person. So in any case where private information of account
holder
/ customer is disclosed, any loss or damage caused to the customer shall be repayable by bank for such
breach.
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ETHICAL FACTORS:
Trust:
Trust is central to the success of a bank. It can drive engagement, increase loyalty and has a direct impact
on a bank's bottom line. Customers should feel that they can trust their financial services partner to
provide them with products and services that they really need.

Transparency issues:

It aims to facilitate more effective communication between central banks and their various stakeholders,
reducing uncertainty and contributing to better policy choices. More transparency and accountability are
required to maintain public support to central banks, safeguard independence and enhance policy
effectiveness

Growing Pressure of Competition:

If banks compete against each other, they have to provide great services for their customers – otherwise people will
switch to another, better, bank. This makes banks more efficient and productive, which is good for the economy.

Through pursuit of ethical practices, banks can acquire brand reputation. This should help them expand
customer base and increase income. The brand name reputation is also likely to attract ethically conscious
clients. As a result, the banks will be greatly relieved of the problem of non- performing loans.