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Internship Report on UBL (284)

Supervised By: Mr. Anees Khattak Prepared By: Reg # Mailing Add: Muhammad Adnan fa09-mba-22 H. # BXII/133 Near Power House, Attock City Mob # Tel: E-mail 0313-5414925 057-2603458
muhammadadnan22@ymail.com

Department of Management Sciences

COMSATS Institute Information Technology Attock Campus

DEDICATION

I dedicate this work of mine to my Teachers, My Parents and to all My Friends, who truly help and guide me in completing this project.

ACKNOWLEDGEMENT
First of all, I thank my respected teachers for providing me comprehensive knowledge about Commerce Courses and also for providing me the opportunity to complete my Internship Program in UBL to enhance my practical knowledge about banking sector of Pakistan. I am also indebted to the followings because without their help, I would not be able to achieve this practical knowledge.

PREFACE
Master of Business Administration (MBA) is a program in which we studied about business. In Pakistan the banking sector is at the maturity stage and banking sectors are the best institutes in which we are easily understand the practical experience. MBA gives us an opportunity to touch the practical experience about business as the internship. The 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 (UBL) UNITED BANK LIMITED ATTOCK CITY. 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.

MUHAMMAD ADNAN

CONTENTS
1. 2. Executive Summary. 8 Introduction to the Report 9 Purpose of Report 9 Scope of Study ..... 9 Limitations of Study .. 10 Methodology of Study .. 10 Objective of Studying the Organization. 11 History of Banking ........ 12 Commercial Banking in Pakistan .....15 Overview of the Organization History . 17 Nature of the Organization ... 19 Business Volume ... 19 Number of Employees ... 20 Product Line . 20 SWOT Analysis 21 PEST Analysis .. 24 Business Plans .... 27 Organizational structure 7.1 Main offices ... 30 7.2 Organization Hierarchy ... 31 7.3 Comments on the organizational structure .. 35 7.4 Learning as an Internee from the Management Side . 40 Structure of the Department/s you have worked in 8.1 Number of employees working in the Department 43 8.2 Product lines . 43 8.3 Departmental operations 48 Functions of the Department 9.1 Job/Work/Tasks system of the organization 78 9.2 Decision-making environment 78 Critical analysis of the theoretical concepts relating to practical experiences i.e. relate the theoretical concepts with your practical experience during your Internship with the Department 10.1 Common-size analysis of consolidated balance sheet 79

3. 4. 5. 6.

7.

8.

9.

10.

10.2 10.3 10.4 10.5 11. 12. 13. 14. 15.

Common-size analysis of consolidated Income Statement . 80 Ratio Analysis .. 82 Qualitative Analysis . 86 Future prospects of the organization/Recommendations for future learning .. 88

Short-falls/weaknesses of the Department . 89 Conclusions .. 90 Recommendations for improvement . 91 Bibliography .. 94 Annexes 95

EXECUTIVE SUMMARY
This is an internship report regarding the different products of UBL. It starts with an introduction about Banking followed by the introduction of UBL. It gives a briefing about all the financial products of UBL. This report also includes the different features of these products. All the Services provided by UBL has also been discussed and explained along with the strength and weaknesses of the organization. This report shows and internal architecture of the working of the UBL Business. It gives a detail about the supporting department that has helped the business in their daily working. Also it discusses the objectives, policies of the organization. There are also some suggestions/recommendations for UBL.

INTRODUCTION OF REPORT:
Students of MBA studying courses of Master degree in Business Administration are required to undergo an internship program of Six Weeks duration. This is an essential academic requirement. The internship is followed by comprehensive report writing, required to submit to the supervisor of COMSATS Institute of Information Technology Attock Campus. I did my internship in United Bank Limited Attock City Branch (284).

Purpose of Report:
The purpose of the study is to work in real life situation and learn banking practice by doing. In this context its objectives are: 1. To analyze banking operations i.e. operational analysis, financial analysis. 2. To develop concrete and feasible recommendations. 3. To improve report writing skills.

Scope of Study;
The study is confined to banking operations. An attempt, along with all its limitations, to collect financial data and general statistics of the bank has been made. Keeping in view the purpose of the study, which is to make an acquaintance with practical doings in the bank, this seems a comprehensive effort.

Limitation of Study:
It is to admit that the study attempts only those aspects, which are closely relevant to the purpose of the study. Facts and figures, which otherwise might be equally important, but not having a direct bearing on the conclusions arrived at this study, have been ignored.

Methodology of Study:
Both primary and secondary data were used in compilation of the report. Methodological tools used were: i. Primary Data: Personal Observations. Discussion with Bank Personnel. ii. Secondary Data: Brochures/ Manuals of the bank. Annual Report Bank internship reports on UBL available in library. Journals, newspapers and books. Internet.

OBJECTIVE OF STUDYING ORGANIZATION:


Organizational studies, organizational behavior, and organizational theory is the systematic study and careful application of knowledge about how people - as individuals and as groups - act within organizations. Whenever people interact in organizations, many factors come into play. The purpose of the study is to work in real life situation and learn banking practice by doing. In this context its objectives is to analyze banking operations i.e. operational analysis, financial analysis and doing practical work in banking sector by applying theoretical concepts learned during educational period.

HISTORY OF BANKING
Bank is a pipeline through which currency moves into and out of circulation. Bank accepts deposits and repays cash to its customers on their demand. The Bank borrows money at a lesser rate of interest and lends it to the borrowers at a higher rate. It is thus a profit-lending concern. Bank cannot lend all the money that has been deposited with it. It has to keep a certain portion of the total deposits in cash with them in order to meet the cash requirements of the individuals and business concern.

Banking History Word Bank is said to be derived from the words Bancus or Banquewhich means bench other authorities hold the opinion that the word bank is derived from the German word Back which means joint stock fund. The history of banking is traced to as early as 2000 BC. The priests in Greece used to keep money and valuables of the people in temples. These priests thus acted as financial agents. The origin of banking is also traced to early goldsmiths. They used to keep strong safes for storing the money and valuables of the people. The persons who had surplus money found it safe and convenient to deposit their valuables with them. The FIRST STAGE in the development of modern banking, thus, was the accepting of deposits of cash from those persons who had surplus

Introduction To Banking

money with them. The goldsmiths used to issue receipts for the money deposited with them. These receipts began to pass from hand to hand in settlement of transactions because people had confidence in the integrity and solvency of goldsmiths. When it was found that these receipts were drawn in such a way that it entitles any holder to claim the specified amount of money from goldsmiths. A depositor who is to make the payments may now get the money in cash from goldsmiths or pay over the receipt to the creditor. These receipts were the earlier bank notes. The SECOND STAGE in development of banking thus was the issue of bank notes.

The goldsmiths soon discovered that all the people who had deposited money with them did not come to withdraw their funds in cash. They found that only a few persons presented the receipt for encashment during a given period of time. They also found that most of the money deposited with was lying idle. At the same time, they found that they were being constantly requested for loan on good security. They thought it profitable to lend at least some of the money deposited with them too the needy persons. This proved quite a profitable business for the goldsmiths. They instead of charging interest from the depositors began to give them interest on the money deposited with them. This was the THIRD STAGE, in the development of banking. By experience the banks came to know that they could keep a small proportion of the total deposits for meeting the demands of customers for cash and the rest they could easily lend. They allowed the depositors to draw over and above the money actually

standing to their credit. In Economics terminology we can say that they allowed the overdraft facilities to their depositors. This was the FOURTH STAGE, in development of banking. When every bank issues receipts and most of them allowed the overdraft facilities, there was then too much confusion in the banking system. The banks in order to earn profits could not keep adequate reserves for meeting the demands of the customers for cash. The failures on the part of the bankers to return money caused widespread distress among the peoples. In order to create confidence among the people, steps were taken to regulate the banking organization. A conference was held in Nuremberg in 1548. It was decided that a bank should be set up by the state, which should streamline the banking organization and technique. The first central bank was formed in Geneva in 1578. Bank of England was established in 1694. The responsibility of issuing of notes is now entrusted to a central bank of each country.

COMMERCIAL BANKING IN PAKISTAN:


At the time of partition total numbers of Banks were 38 only. Out of these Banks
the Pakistani Banks were only 2 , Indian Banks 29 & Exchange Banks were 7. The total of deposits of Pakistani Banks was Rs.880 Million. & advances were Rs: 198 Million. According to banking companies ordinance Banks are the companies, which transacts the business of Banking in Pakistan.

Commercial Banks have constituted the most important [part of the intuitional credit in the economy of Pakistan. Being the largest source of credits, Banking Industry is a pivot of whole the economic activities in Pakistan. Section 37(2A) of State Bank of Pakistan Act 1965 lays down that the Banks must have paid-up capital & reserve of not less then Rs: 5 Lac & fulfilling certain other requirements for declaring as Scheduled Bank. At the time of independence Bank services was badly affected. But with the passage of time these are improving. The government of Pakistan nationalized all Banks in early

1974. This act was done to minimize control of few hands over banking. But this step was proved e futile for the Banking in Pakistan. So the Govt. had to revise its decision in1990. Two Banks (Allied Bank Of Pakistan Limited & Muslim commercial Bank Of Pakistan Limited have been denationalized. Since then Banks were working well. Now slogan of the Banks is to serve their customers in the best possible manner. Professor Berton: Banks are the guardian & distributor of money . Similarly we can say that it is a pipeline thorough which currency moves into & outside the circle. Banks accept deposited of money and repay it on demand. Bank borrows money at lesser rate of interest & lends it at higher rate of interest. In this way Banks earn money. Bank do not lend all money they collect, they keep certain portion of it as reserve to meet the uncertain demand of the customer.

OVERVIEW OF THE ORGANIZATION:

History of UBL

The decision to establish UBL was taken in June 1959 and the company was registered on July 24, 1959. United Bank Limited started the operations on 7 November 1959 with its first branch namely McLeod Road now I.I Chunrigar Road at Karachi. On 9th November 1959 the Gazette of Pakistan notified and included UBL in its list of scheduled banks operating in Pakistan. The first president of the UBL was Mr. I. I. Chundrigar. Most of the branches of Union Bank Ltd. were merged into UBL to work as UBLs subsidiary .The head office was at Dhaka. With its shortest span of time UBL emerged as dynamic and large international

organization. In 1969 the Management of Union Bank Ltd. Incorporated in former east Pakistan, was handed over to UBL, which was later emerged with UBL in early seventies. The Bank continued its operations as private banking company until 31st December 1973 when it was nationalized, in the large nationalization process in the government of Zulfiqar Ali Bhutto, along with other banks operating in the country and other two banks namely Pak Bank of former East Pakistan and Commerce Bank Ltd. Were merged with UBL. A Bank, like the society it serves should be dynamic as banking is about people customers with their needs and opportunities and staff with skills, experience and resources. UBL has shown dynamism since its inception. There have been many changes in the structure, functions and the services provided. These changes reflect the changing requirements of our developing economy as a whole and those of Industry, Commerce and private Individuals. On October 19th 2002, biggest event occurred in the history of UBL. As UBL was privatize. The Government handed over the management of UBL, the third largest bank of the country to the successful bidder Consortium of Abu Dhabi Group (UAE) and Bestway Holding Ltd. (UK). The sales agreement for the transfer of 51% shares was signed by Privatization Minister Altaf M. Saleem and Bestway Holding, Sheikh Nahayan Mubarak Al Nahayan at a ceremony. This event was declared as a New Journey for UBL. On May 8th 2004, Atif Bukhari took over the charges as new Chief Executive

Officer of UBL from Amar Zafar Khan, who served UBL for more than seven years. UBL officially announced the appointment of Atif Bukhari as its CEO. Bukhari was previously Senior Executive Vice President (SEVP) and Group Head, Corporate and Investment Division of Habib Bank Ltd. He was also a member of the HBL Management Committee. In the view of highly impressive growth and development achieved during its 46 years of experience, UBL has come to be accepted as one of the most progressive and dynamic components of the banking industry in Pakistan.

Nature of the Organization:


The UBL is under the ownership of two very strong (financially) group (The Abu Dhabi Group & The Best way Group) and The Deputy Chairman of the UBL is Sir Mohammad Anwar Pervaiz who is the leading role of Best way Group. So UBL is acted as a centralized bank. In 1986, the organizational structure of domestic operations of the bank was reformed and decentralized on the basis of provinces. As a result provincial headquarters were established at Karachi, Lahore, Peshawar and Quetta in order to meet the needs of sanctioning loans and other facilities to the trade, industry and agriculture of each province. Azad Kashmir was serrated from NWFP and made separate region. UBL is a commercial bank. Commercial Banks have constituted the most important [part of the intuitional credit in the economy of Pakistan. Being the largest

source of credits, Banking Industry is a pivot of whole the economic activities in Pakistan.

Business Volume:
Number of Branches: UBL has a large network of branches, which extends to the remotest areas of the country. In December 1983, there were 1623 branches whereas in 1974 it had only 1238 branches and in October 2003 these figures show total number of 1007 branches UBL has been very active in increasing its overseas branches network. The first foreign branches were established in London in 1963. Now UBL has branches in Bahrain, Qatar, Saudi Arabia, United Arab Emirates, Yemen Arab Republic, UK Switzerland, Egypt, Oman and The United States. These branches are playing a significant role in channeling home remittances and foreign trade of Pakistan. Subsidiaries: UBL has four subsidiaries, namely: United National Bank Limited (UNB), UK United Bank AG (Zurich), Switzerland

Number of Employees:
The number of employees with their designations working in UBL 284 branch are listed below: Mr. Mukhtar Hussain (Branch Manager)

Mr. Abid Farooqi (Customer Service Manager) Mr. Irshad Farooqi (Supervisor Funds Transfer) Mr. Ehtesham Shabir (Customer Service Representative) Mr. Iqbal Khattak (Chief Teller) Ms. Sumaira Naeem (Universal Teller)

Product Line:
UBL, where you come first Consumer Banking UBL Address UBL BusinessLine UBL CashLine UBL Credit Cards UBL Drive UBL Money Commercial Banking Agriculture Products Small Business Schemes Investment and Saving Accounts UBL Basic Banking Account UBL Business Partner (Current Account) PLS UniSaver

PLS UniSaver Plus UBL Rupee Transaction Account (PLS Saving) UBL UniFlex eTransaction (Current Account) Complementary Services Insurance Certificate UBL Net banking UBL e-statement

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 is one of the largest private banks with a deposit base of Rs. 94883/- millions showing constant growth over the period.

It has a well-knitted 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 current years growth rate is 32%.

The bank is owned by parties of financial repute and credit worthiness like, SBP with 48.69% interest, Best Way group and Abu Dubai group with 25.50% of interest each. Others are GOP, NBP Trustee Department, State Life Insurance Corporation etc. Weaknesses:

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 and thus adversely affected the banks efficiency and effectiveness.

Administrative expenses are 51% of the mark up revenue. Promotions are carried out on annual basis ignoring the importance of capabilities and performance outputs. 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.

Government is taking very bold steps to promote IT in Pakistan UBL has an opportunity to improve in IT stock exchange is very volatile and takes immediate effect so in times of crises conservative investors turns to saving deposits.

UBL is surrounded by many competitors it has an opportunity to aggressive marketing to increase its business.

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

Threats: Threats are also external factors in the environment, which are not in the favor of company, which can seriously hamper the companys ability to serve its customers. Expansion of new commercial banks like ASKARI bank, UNION bank and etc.. And their better performance may cause loss of market shares of UBL. According to World Bank report the Pakistan has become over banked economy with cut throat competition for deposits in the industry the battle is on for the market shares. The customers have emerged as the main Beneficiaries of the competition. Now they are getting more personalized services and innovative product. Along with the growth in size, the banks are now incorporating innovative approaches to their traditional commercial banking operations, keeping in the view the changing demand of the time. UBL face problem. The political influences affect the performance of bank very badly. Most of the loans become bad dad debits due to political pressure

No stable government in Pakistan, Government policies change with the change of government.

The concept of evening and Saturday banking, telephonic and online banking, ATMs and credit cards are direct result of the intensive competition. But UBL is behind the above-mentioned services.

Freezing of foreign currency account by the government of Pakistan is also a fear for the bank.

PEST Analysis:
What is PEST Analysis?
It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization's marketing environment is made up of: 1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc. 2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc.

3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors.

Political Factors.
The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as: 1. How stable is the political environment? 2. Will government policy influence laws that regulate or tax your business? 3. What is the government's position on marketing ethics? 4. What is the government's policy on the economy? 5. Does the government have a view on culture and religion?

6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others?

Economic Factors.
Marketers need to consider the state of a trading economy in the short and longterms. This is especially true when planning for international marketing. You need to look at: 1. Interest rates. 2. The level of inflation Employment level per capita. 3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on.

Sociocultural Factors.
The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include: 1. What is the dominant religion? 2. What are attitudes to foreign products and services? 3. Does language impact upon the diffusion of products onto markets? 4. How much time do consumers have for leisure?

5. What are the roles of men and women within society? 6. How long are the population living? Are the older generations wealthy? 7. Do the population have a strong/weak opinion on green issues?

Technological Factors.
Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points: 1. Does technology allow for products and services to be made more cheaply and to a better standard of quality? 2. Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc? 3. How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc? 4. Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc

Business Plans:
UBL expects its strong customer focus to drive the banks future business strategy. On the domestic side bank has already launched its consumer banking business. Increased investment is targeted in developing Human Resources; Infrastructure and

internal system support the aggressive consumer initiative and explorations of new avenue generation. The first step under this initiative is the launch of the banks ATM / Debit Card.. Furthermore UBL has plans to introduce a full suite of innovative consumer finance products designed to capture a significant share of the local consumer financing market and tap into the current growth in demand of such financing.

Personalized Service and Dynamic Approach


In order to meet its goals and capture the market share the Bank employed professional and skillful approach to the management, which took a series of successive measures to educate the people of Pakistan banking and saving minded. Various drives for the mobilization of saving and other accounts were initiative. The knowledge of

customers business market research and business planning, visits to customer at their door steps, development of personalized relational ship with business community, fixation of seasonal business targets and follow-ups to achieve these goals attained prominence. Flexibility, delegation of authority to the lowest possible level and encouragement by initiative were the key factors, with helped the bank, to achieve the objectives.

Ready for 21st Century


UBL has stepped into the 21st century with confidence. Know that the bank has been privatized and 51% share have been purchased by investors i.e. The Best Ways Group UK and Abu Dhabi consortium electing H.H Sheikh Nahayan Al Mubarak as

Chairman UBL. UBL has geared itself to provide services, which the customers in modern banking expect from the bank. The bank has also planned to play its dynamic role in the overall development of the country. It is now well equipped with latest technologies and professional experience to face the future with determination and confidence and with its high aims and sense of direction to serve the nation with zeal and devotion.

ORGANIZATIONAL STRUCTURE:

Main Offices:
Main offices of UBL in Pakistan are listed below: Islamabad Karachi Hyderabad Lahore Multan Faisalabad Sargodha Sahiwal Jehlum Gujranwala Peshawar Mardan Quetta Azad Kashmir

MANAGEMENT OF UBL:
Senior Management of UBL
Sheikh Nahyan Mabarak Nahayan chairman Sir Mohammad Anwar Pervez Deputy Chairman Amar Zafar Khan President M.A Manna Deputy CEO Nauman Hussain Director Operations & Utilities M. Khan Mansoor Head Corporate Banking Group Shaharyar Ahmed Head Investment Banking group Aman Aziz Siddique Shahid Waqar Mehmood Head Commercial bank Risha Moheyuddin Global Treasurer Khalid Munawar-ud-din Head Credit Policy Supervision Muhammad Ejazuddin Audit Chief Mehboob A.Khan Rukhasana Asghar Global Head Human Resources Ameer Karachiwala Chief financial Office/HCA

Head International Operations (Dubai) Ali sameer Chief SAM (domestic)

FUNCTION HIERARCHY: Organizational Hierarchy of UBL


Chairman

Deputy Chairman

Board of Directors

Executive Committee

Managing Director

SEVP

EVP

VP

Officer Grade-I

Non Clerical Staff

Clerical Staff

Officer Grade-II

Officer Grade-III

Organization Chart at Attock City Branch:


Branch Manager or Area Operational Manager

Accounts & Customer Service

Cash & Clearing

Bills & Remittances

UBL SETUP
BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

Treasury & Capital Market

Corporate Banking

Investment Group

Consumer Banking

Human Resource Mgt.

Finance Department

Marketing Department

IT Department

Audit & Inspection

Service & Quality

Agri Loans

Comercial Banking

BOARD OF DIRECTORS Board of Directors are the owners of the bank and governs the Banks Affairs, which currently consists of President Chief Executive Officer & seven directors. The CEO has an overall responsibility for the strategic direction, government relations and to manage the portfolio of business and its functions.

EXECUTIVE COMMITTEE The Head of the Executive Committee is the President of UBL (Mr. Atif R. Bokhari).

Treasury
The main purpose of the treasury department of any company is to maintain the liquidity for that company. Same is the case with Banking Industry as well. The treasury department has to manage the buffer stock (in terms of cash) of the bank and they have to maintain the liquidity for giving Advances to their customers.

Corporate Banking
The main objective of the Corporate Banking is to look after the special customers who give very much big amount of deposits or take higher amounts of Advances. Because a Hub Branch can give the Advances up to Rs. 200 Million. And the party who needs a loan more than Rs. 200 M they have to contact to the Corporate Branch of the UBL. So the cases of Advances more than Rs. 200 M goes into the Corporate Branches.

MISSION OF CORPORATE BANKING


Our mission is to serve all your corporate needs and ensure your full satisfaction through product innovation, personalized banking, and top notch service.

The (Corporate Banking Group) CBG focuses on attracting and servicing large portfolio customers. UBL forte is providing exemplary customer service using the "Single Window" concept and product superiority. The Relationship Management team manned by highly qualified individuals from the industry has steadily expanded our customer base and continues to enhance banks cordial relations with its esteemed clients. Despite the sluggish economic growth in recent years, UBL outperformed all the other local banks in the corporate banking sector primarily due to CBG's emphasis on establishing and enhancing relationships with foreign/local blue chip and middle market customers thereby capturing significant market share.

Investment
This department supports the Corporate Deptt. When a company wants to install a new project and require the finance from the bank then it is the responsibility of Investment Deptt. That they analyze the targets of the project and success or failure of the project. If it is feasible to loan that party then they pass the loan otherwise not. This is called the Project Finance. Other responsibilities are offering IPOs, TFCs and following services are performed by this Deptt. Now UBL is offering its IPOs (Initial Public Offerings) in June On behalf of the customers all the banks also make an investment in different companies and industries. And banks receive nominal charge from the customers.

Services
UBL (Investment Banking Group) IBG offers full spectrum of services

4-HUMAN RESOURCE DPARTMENT

Human Resource Department:

This Deptt. does all the activities related to HR and Personnel Management like Job Analysis, Job Design, Job Description, Job Redesign, Job Specification, Recruitment (is the process of finding and attracting capable applicants for employment through Advertising, Employee Referrals, Private Placement Agencies etc.), Selection by written tests and interviews, Orientation, Training, Career Planning, Performance Appraisal (employee performance and accountability), Compensation and Protection, UnionManagement Relations etc. It also involves in the following activities: Transfers & Postings Scrutinizing bills (Hospital Bill) Staff Deceased cases & its Correspondence Retired employees Cases & its correspondence

All staff legal cases & Court at Multan & Lahore. Retrenchment cases Complaints and its correspondence Fraud & Forgery cases Mandatory Leaves and its observance. Staff leaves and other related staff matters Goals of all Staff Monthly Statement of Staff Disciplinary Action Cases

The HRM department also gives the facility of LPR to their employees.

Leaves Prior to Retirement (LPR)


These are the leaves at the end of the job period (near to retirement) with pay. If some employee has the leaves in credit then he or she can avail that leaves at the end of his or her job. But maximum limit of LPR is one year. And after these leaves he or she will be automatically retired. But if some employee the leaves in credit less than one year, let suppose of nine months, then he or she can avail only that credited leaves (nine month) only but with pay in the facility of LPR.

IT Department
Information Technology Deptt. 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 Deptt. also makes the web site new news to web site. The daily transmission process of data is as following: A spoke branch up-date the daily transactions through computer networking to its Central Branch. Suppose all the withdrawing, deposits, remittances, collection and clearing data of the day is sent to the Central Branch. And when the Central Branch

receives the data from all the spokes branches under it then that Central Branch up-date the data of all the spokes branches and its own to the Central Data Base (CDB) at Head Office. Corporate Branches and Regional Head Quarters (RHQs) up-date the daily data directly to the Head Office.

Audit and Inspection


The responsibility of this department is to audit and inspect the operations of the branches. Whether the operations are compliance by the branches in a right way or not. The CCD (Control and Compliance Department) comes under this department. I will discuss about the CCD in the branch level functions.

Consumer Banking
You as an individual can gain and benefit the most through UBL Consumer Banking. In UBL you get friendly, efficient and attentive personalized banking services a unique banking relationship experienced by each UBL client. You can utilize the following services: UBL Credit Card UBL Businessline UBL Cashline UBL Address UBL Drive

PLS Term Deposits PLS Savings Accounts Uni-Saver Remittances

Learning as an Internee from the Management Side:

Customer Service Banking:


You as an individual can gain and benefit the most through UBL Consumer Banking. In UBL you get friendly, efficient and attentive personalized banking services a unique banking relationship experienced by each UBL client. You can utilize the following services: UBL Credit Card UBL Businessline UBL Cashline UBL Address PLS Term Deposits PLS Savings Accounts Uni-Saver

Funds Transfer:

Transfer of money or equivalent to money from one branch to another branch of the same bank is called remittance. Now it has become an easier and safer method both for the client and banker to transfer their money from one branch to another within the city or Outside City. MODE OF REMITTANCES United bank limited, uses following types for transfers of money: 1) Demand Draft (DD) 2) Pay Order (PO) 3) Mail Transfer (MT) 4) Telegraphic Transfer (TT)

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, which are as under: 1) Cash received voucher sheet 2) Cash paid voucher sheet 3) Token register 4) Transaction ledger 5) Pay-In-Slip record 6) Cheque book record

7) Cash balance book

Structure of the Department/s

Employees working in Departments:

Employees working in different departments of UBL Attock City Branch are listed below according to their departments:

Cash Department:
Mr. Iqbal Khattak Ms. Sumaira Naeem

Funds Transfer Department:


Mr. Irshad Farooqi

Customer Service Department:


Mr. Abid Farooqi Mr. Ehtesham Shabir

Product Lines:
Consumer Banking

You as an individual can gain and benefit the most through UBL Consumer Banking. In UBL you get friendly, efficient and attentive personalized banking services a unique banking relationship experienced by each UBL client. You can utilize the following services.

UBL Credit Card Welcome to the world of UBL Credit Cards the most exciting and vibrant credit card brand in Pakistan. UBL offers you a range of innovative and exciting cards that is not only powered by the security of chip but also enable you to personalize it any way you want

Other Services:
UBL Net Banking UBL e-statement

UBL Net Banking: UBL Net Banking is an internet banking portal offering a simple, convenient and secure method of accessing bank accounts on the internet. Its never being so easy to access and manage your finances in a secure real-time, online environment

UBL e-statement: UBL is pleased to announce the launch of the UBL e-statement facility which it easier for you to get your statement of accounts and automated transactional debit/credit alerts right into you inbox.

Commercial Banking
To stand tall among the worlds leading banks, UBL has developed a YOU attitude to understand its customers well. For small and middle size investors, UBL has so much to offer, so much to deliver. Walk in to any nearest branch of UBL, enter the world class bank and let us serve you with what you need.

Investment and Saving Accounts: UBL offers you the most beneficial and secured financial investment and saving options. You can choose from the following list of accounts anything that serve your needs best.

UBL Basic Banking Account Exempted from Minimum Balance charges, UBL BBA holders can carry out two deposits and two withdrawals each month as per the bank policy. Through 24hrs ATM services, they can carry out transactions as and when desired, staying in the daily withdrawal limit.

UBL Business Partner (Current Account) For regular customers, UBL offers the ultimate option, UBL Business Partner (Current Account). With unlimited deposits and withdrawals, bank offers you convenience of UBL netbanking, Credit Cards, and other exciting consumer products.

Customers are liable to maintain minimum balance of Rs. 10000 to avoid the minimum balance charges until and unless they are exempted from it.

PLS UniSaver Let your savings earn you bucks. PLS UniSaver offers you semi annually profit disbursement with profit being calculated upon average monthly balance.

PLS UniSaver Plus Big amounts earn you big; but with PLS UniSaver Plus, UBL makes it bigger for you. With deposits starting from Rs. 25 million, UBL offers 5.00% but more you put in, more profit rate will UBL offer.

UBL Rupee Transaction Account (PLS Saving) Have your money box at UBL! Put in your savings and let us earn you 5% p.a. over your daily savings.

UBL UniFlex Have couple of thousands spare? Come invest in our UBL UniFlex Accounts, UBL will make you earn handsome. With UBL UniFlex, the bank serves you with fix profit rates at maturity.

E-Transaction (Current Account)

In the era of glooming computerization, even Chicago, Tokyo, Sydney, all are seconds away from you. Internet has turned distance into time, and UBL has turned your account into a shear pleasure. Now sitting at home, or at office or anywhere in the world, UBL offers you a wide spectrum of world-class electronic services and banking products each time you log in. Use your account like a regular account plus use the premium Internet & Mobile banking services for Instant Fund Transfers, Instant Shopping, Instant Bill payments, Instant Mobile top ups, Alerts, Statements and much more. You love surfing, come surf with UBL.

Complementary Services

Insurance Certificate UBL not only cares about you, but cares about those too who are dependent upon you. So UBL now offers enhanced Free Accidental and Disability Insurance Certificate coverage to all existing and new account holders.

UBL Net banking UBL is very much determinant to make banking as you will. How about being in office, or on your way, at home or at anywhere in the world but still connected to your account! Through UBL NetBanking, Access your accounts any time, pay anyone you want, pay your bills, buy vouchers you need and get account alerts, all integrated with one of the best security systems in the world.

UBL e-statement: During your busy hours, you dont have to bother about visiting us to get your account statement. Neither theres a risk of anyone else knowing your account details. Subscribe today, free of cost to UBL e-statement facility and let us share details with you daily, weekly, monthly, quarter or semi-annually. Get debit/credit alerts and know as soon as you get money or pay off.

Departmental Operations:

Customer Service and Account Department:


I started my internship in UBL and start my first week in Accounts Sections. Main Reason of starting from here is that accounts are the basic thing in the banking. Many activities are performed in this department all the activities performed in this department are as follows.

Account is terminology, which has different meanings in different situations. As I m working in banking environment so I shall define it from bank point of view. From bank point of view accounts can be defined as

Bank Account is a platform to fulfill the financial needs of the individual and other view is Bank provides a service to its customers to keep its money and allow customer to deposit it and withdraw it for customer personal use. The main advantage of account is that bank can generate funds for different projects and investments, and on other hand money of customer become in safe custody.

Bank allots an account number to each customer by which their account can be distinguished from other account holders.

How one can open an account in UBL

First of all the person who want to open an account must obtain a preprinted form from the CSO (Customer Service Officer) of UBL and then read it carefully. After careful reading fill the form as per instructions on the form. Pre Printed Account opening form contains the following contents

Step 01 (TYPE OF ACCOUNT)

Rupee Type of Account: UBL Business Partner (Current A/c) UBL Business Partner Plus (Current A/c) UBL BBA (Current A/c)

UniSaver (PLS A/c) UniSaver Plus (PLS A/c) UBL Rupee Transactional Account(PLS A/c) UBL UniFlex (PLS A/c) eTransaction (Current A/c) UBL First Minor PLS Acount

Foreign Currency Type of Account $USD GBP EURO UAE Dirham (AED) Saudi Riyal (SAR) Others

If currency account is not one of the given currencies then a space of any other provided to specify the other currency.

UBL Provides two main categories of accounts:

1.

Individual Account

2.

Business Account

Individual Account: Individual account states the single account not for business purpose. It is for personal use. Individual accounts are further categorized in two types.

Single Business Account

Joint

Business account states the type of account for businessmen. It is further categorized according to the nature of business.

Sole Proprietorship Joint Stock Company Partnership Association/Clubs/Societies Autonomous Govt. Institutions (Federal / Provincial) Foreign mission / Diplomats.

Then after doing so person should show its initial deposit. Minimum amount of the initial deposit is depend on the nature of account to be opened. Each account has its different min deposit policy. Third part of the form is to provide the personal information. Like:

Title of account Name of Opener Current Mailing Address Teh / Distt, City, Postal Address, Postal Code, Country, etc.

And then after this provide completer information to the bank in personal information part. Fourth step is to specify the client profile.

Type of customer Public figure Purpose of Account Sources of funds Usual Mode of Transaction Collection, Remittences

Walkin, Marketed, Reffered By Yes, No, Education Business, Personal, Savings

Cash Deposit/With Drawl, Clearing,

For Non Resident Persons Residence

Country of Citizenship, Country of

Performing all the formalities and providing all the information now attach two fresh photographs of the account opener. And then attach all the relevant documents required to open an account. Requirement of documents to be attached is depend on the nature of account. Following are the main requirements for different nature of accounts.

Individuals

Following documents must be attached

Attested Photocopy of CNIC / Passport of individual. In case of salaried person attested copy of service card or any other acceptable evidence of service, but not limited to a certificate from employer.

In case of illiterate persons, two recent passport size photographs of new account holder besides taking his/her right and left thumb impression on specimen signature card. (SS Card)

Business Accounts:

Joint Stock Company

Certifies copies of:

Resolution of board of directors for opening an account specify the person(S) authorized to operate the company accounts.

Memorandum and article of association Certification of Incorporation Certificate of Commencement of business Attested copy of CNIC of all directors List of directors in form 29 issued for registrar joint stock company

Trust Accounts

Attested Copy of Certificate of registration Attested copies of CNIC if all trusties Certified Copies of Instruments of Trust

Account Opening in the name of minor

In the case of account being opened and operated under the name of a minor (Age Below 18 years) the word minor to be added to the title of account, the particulars of account in the account application form. Also CNIC of father/Guardian along with form B for minor to be provided

Sole Proprietorship

In addition to documentary requirements for individuals, following documents are required.

Application to open an account on the official letter head of the sole proprietorship.

National Tax Number (NTN)/Sales tax registration certificate Evidence of membership of trade organization/ chamber of commerce etc. (Whenever Applicable)

List of official authorized to operate the account and their specimen.

PARTNERSHIP:

a) b) by all partners. c)

Attested photocopies of NIC of all partners. Attested copy of Partnership Deed or Letter of partnership duly signed

Attested copy of registration certificate with registrar of the firm. In case partnership is unregistered, the fact should be clearly mentioned on the customer relationship form.

d)

Authority letter in original in the favor of persons other then the partners authorized to operate on account of the firm.

CLUBS SOCITIES AND ASSOCIATTIONS:

1) i. ii. 2)

Certified copies of: Certificate of registration, By law/rules & regulations Resolution of governing body / executive committee for opening of account authorizing the person to operate the account and attested copy of CNIC of authorizes persons.

3)

An undertaking signed by authorized persons on behalf of the institutions mentioning that when any change take place in the person authorized to operate on the account the bank will be informed immediately Now when every requirement is fulfilled by the applicant, all the documents must be attached is sequence and submit with CSO Officer, and a specimen signature Card (SS Card) must be signed duly by applicant in order to take sample signature for verification purpose in future transaction. After submission of form UBL will provide you an account number. Account number will be generated automatically be computer. It is consist of Digits in which first four digits represent branch code and other twelve digits are actual account number.

How would you sure about your Account?

When applicant submits application form then this application is processed. All the data entered in computer and when your account is confirmed then a Thank letter is sent to the applicant mailing address. This thanks letter represents your account opening confirmation.

Acquire cheque Book.

After receiving Thank letter for first time Cheque book acquisition, customer will come to bank and show the thanks letter and will fill Cheque book acquisition form and attached with thanks letter and submit to operations manager He/She will issue a new cheque book to application.

Acquire ATM card:

If a customer wants to take its ATM card, then customer has to fill a form and submit to bank. ATM delivery time is 5 15 days.

Closing of activation:

Other than opening an account, in accounts section another activity is to close, freeze, and activation of accounts. Let us examine these three states of account with details.

a)

Closing an account.

Closing of ones account, once accounts was closed. The account holder cannot make any transaction in this account.

If a person wants to close its accounts. Then He/She must submit an application along with its NIC copy in the name of branch manager requesting him to close its account. But once account close then customer cannot any transaction is this account.

Many reasons can be, for which one will close account. One main reason is that customer has not enough savings to deposit or with draw due to which account will remain unused. Another reason for closing an account is customer switching to another bank, or customer can involve in illegal activities according to bank due to which its account will be closed, Along with these reason there are many other reasons. Due to which one can close its account.

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Freezing of Account:

Freezing of an account is a terminology used in banking. Which means that and account will become unused, It means that it ia a state of sleeping. It this state account in which account remains active but unused, No, transactions can be made in such account. Account remains as it is for a specified tenure.

Why account freezing.

There are man solid reasons for freezing an account some of them are: accounts and property. Account holder was appeared in corruption and its accounts and other assets will freeze by National Accountability Beauru (NAB). Any disasters like bomb blast, and terrorist attach, Government will freeze all of accounts. Who are authorities; Account holder was sue in court and court ordered to freeze its

Bank it self, Government, Security Agencies, FIU, and other such departments are authorized to order freezing of accounts of their under observation persons. An order by these authorities tie bank to freeze these accounts with any notice to account holder.

Dormant Accounts

Dormant is a terminology used in banking its means inactive accounts.

How an account become inactive?

If a person have account with UBL and not used since last six months, any deposit or any withdrawals doesnt made in account then account become inactive.

How these accounts can be activated. Let us see:

Step 1: Take dormant form from operational manger of UBL. Step 2: Fill it with care and attach one copy of CNIC with it. Step 3: Fill deposit slip amounting Rs.100/-. Step 4: Submit deposit slip, dormant form, and Rs 100/- with cash counter.

Then cash officer will deposit these 100/-nin your account. Thus one transaction will be made in persons account and account will become active,

) )

Minor Problems faced by customer and bank at time of opening an account.

Incomplete documents. Expired CNIC. Source of Income. Residence or Non-residence problems.

CASH DEPARTMENT

In cash department both deposits and withdrawals go side by side. This department works under the accounts department and deals with cash deposits and payments. This department maintains the following sheets, books, and ledger of account:

1. 2. 3. 4. 5.

Cash received voucher sheet. Cash paid voucher sheet. Paying-in-slip Cheque Book Cash balance book

CASH PAID SHEET


The only instrument that can be used to withdraw an amount from an account is the Chequebook. No payments are made by another instrument. Cheques can be of two types, they may be presented at the counter and encashed and the others are clearing or transfer Cheques. Cashier manually inspect the Cheque for following:

1. 2. 3. 4. 5.

Signature & date Cross cutting Drawees a/c title Amounts in words & figures Two signatures at the back

The Cheques should not be stated as post dated. If in the Cheque there may discrepancy regarding any of the aspects described above the Cheque is returned to the customer for rectification. On other hand if the Cheque is valid in all respects, the cashier enters the necessary inputs in the computer and post the entry so that account balance is updated.

When cashier posts these entries, computer automatically display the balance before posting the transaction amount, balance after posting. The cashier easily and quickly see whether the amount being withdrawn so exceed the balance or within the balance. If the amount does exceed the balance then it is upon the discretion of the manager to allow an overdraft and not depending upon the customers reputation. If he does not allow an over draft, the procedure is repeated again as described for the mismatch of the signature Cheque is return.

The detail of notes (currency) is written on the backside of the Cheque. The cashier at the same time maintains the Cash Voucher Received Record Sheet. Then once again inspect the signature of the customer cancellation mark of checking officer and stamp of POSTED is placed on Cheque before hand over the cash to customer.

CASH RECEIVED
For depositing the cash into customers accounts, there is need to fill in the payingin-slip (Deposit Slip) available in the bank, giving the related details of the transaction. This paying-in-slip contains the date, a/c no., a/c title, particulars, amount being deposited and details of the cash. There are two portion of the paying-in-slip. The depositor signs the one part of the paying-in-slip one is retained by the bank to show an acceptance of the entries made in the slip. The paying-in-slip serves as a voucher to update to computerized transaction ledger. The transaction ledger is only updated by paying-in-slip and Cheque. The cashier is responsible to receive both the paying-in-slip and cash from the depositor. The cashier check the necessary details provided. The paying-in-slip and accounts the cash and tallies with the amount declared in the slip. If the amount does not tally with the cash given, the deposit is not entertained until the customer removes the discrepancy.

On the other hand if the two amounts tally, the cashier fills in the Cash voucher received Record Sheet and assigns a voucher no. To both the transaction being made in the sheet and the slip. This voucher no. Starts with one and continue by serial increments of one for each day till the closing of the sheet, the cashier fills the voucher no, an account, cash day till the closing of the sheet. The cashier fills in the voucher no, an account of, cash entry in the related type of a/c and he post his initials on both part of the voucher. Then the cashier send both to the accountant who verifies all the entries in the two documents, if the entries in the two documents, if the entries in the two documents

tally with one another, the accountant authenticates the two by singing on the two documents and posting stamps on the slip.

One part of the slip is then returned to the customer and other is given to the computer operator. A very important check is that the dates mentioned into the two documents must be the same.

The 2nd cashier posts the transaction entries in computer ledger. This ledger contains the a/c no, a/c title, voucher no, voucher date, transaction code, transaction amount. After posting these entries, computer display before posting balance and after posting.

On every transaction computer generates an output of transaction ledger. He assigns the stamp POSTED on the voucher to show voucher transaction entries are posted. Checking officer receives this voucher and the compute output transaction ledger; he manually inspects the entries of ledger and voucher. If both are tallied, he then signs the ledger and put a mark of cancellation on the voucher. After the verifications from the checking officer, cashier receives the voucher.

CASH BOOK BALANCE

At the end of the working day cashier is responsible to maintain the cash balance book. The cash book contain the date, opening balance, detail of cash payment and received in figures, closing balance, denomination of government notes (Currency). It s checked by manager. The consolidated figure of receipt and payment of cash is entered in the cashbook and the closing balance of cash is drawn from that i.e.

(Opening Balance Of Cash + Receipts) - Payments = Balance

The closing balance of today will be the opening balance of tomorrow. This department is one of the most important departments of the bank. Officer checks all the books maintained in this department.

CHEQUE BOOK

Cheque book is a binded mini book of Cheques with a specific number for each Cheque

It consists of 25 leaves, 50 leaves, 75 leaves, and 100 leaves. It depends on customer that which sort of Cheque book he/she wants to issue. It is necessary to request for issue new Cheque book let us discuss that how request can be initiated and how it processed and bank issue new Cheque Book to its customer.

CHEQUE BOOK REQUISITON

Bank issues new Chequebook to customer on the request of the customer. Customer can make request for new Chequebook in three main cases:

Newly Opened Account Previous Chequebook finished Previous Chequebook lost or Theft.

Newly Opened Account

When a person newly open accounts with bank then it become the customer of the bank. Then to make transaction or with draw and deposit the cash in its account it is necessary to present Cheque so for this purpose bank provides Chequebook to its customer by following a specific process.

First of all for issuing new Cheque book. When customer receive the letter of thanks from the bank for opening an account then he/she would come to bank along with this letter of thanks and attach one copy of its CNIC then obtain a pre-printed Chequebook requisition form from the operational manager. Fill it with care and enter all the information needed like Name, Title of Account, Account Number, Signature, and

leafs of Chequebook must be mention. This preprinted form is real request to acquire new Chequebook. Attach all the required Documents (CNIC, Letter of Thanks, Requisition Slip) and present it to operation manager. This is all from customer side.

Now operation manager will assess all the documents specially signatures and then take Chequebook, enter account number in each leaf of the Cheque book, then enter the following information in Chequebook issuance register.

Date Title of Account Account Number Chequebook starting leaf Number Chequebook ending leaf number Signatures of the customer Signatures of the issuing person

After entering the data in Chequebook register information said above is also enter in the computer in order to maintain record digitally as well as manually. The purpose of writing leaf number is to verify that Chequebook of these numbers will not be issue again and in fact it is impossible to print another Chequebook having same leaf numbers. After this process Chequebook is allotted to the customer. This is all from the bank side.

PREVIOUS CHEQUEBOOK FINISHED

Once Chequebook is issued to the customer, all the Cheques are completely used by the customer, and there is a need to issue new Chequebook so to issue new Chequebook in this case is easy as compare to newly opened account. So for this purpose a Chequebook requisition slip is already stacked in previously allotted Chequebook in order to request new Chequebook when this Chequebook comes to end. But there is one condition on which one can issue new Chequebook that all the Cheques of previous Chequebook are fully used. So when all the Cheques used then fill the requisition slip in the Chequebook with care and present to operation manager of the bank. Operation manager will repeat the same process again as said above from the bank side and issue new Chequebook. But one thing that differentiates it from newly issuance is that there is no need of letter of thanks, preprinted form filled as request.

PREVIOUS CHEQUEBOOK LOST OR THEFT

In case if Chequebook currently used by customer is lost or stolen then what should the customer do in order to issue new Chequebook and cancellation of those Cheques. There is a process that should be followed by the customer.

Write an application showing that the Chequebook issued by the bank leaf no.___ to leaf no._____ is lost by a reason. So it is requested to do not accept any Cheque presented between these numbers, and issue me new Chequebook.

Follow all the process of newly opened account.

Bank will cancel all the Cheques issued in the lost Chequebook.

DISHONOR OR BOUNCING OF CHEQUES


Dishonor or bouncing of Cheques means that bank do not accept the Cheque due to some specific reasons. These reasons can be: Insufficient Balance in account Mismatch of Signature Three signs must be on Cheque, missing of one can be the cause of dishonor Amount in words differs from amount in figures One Cheque is valid for 6 months after it is written so if Cheque is over dated Payee Does not specified Amounts in words not written In case if Cheques are not self Cheques then stolen Cheques One person Cheque presented by other person Soiled Cheque Cheques presented and not in bank record

CROSS CHEQUES AND TRANSFERS OF AMOUNTS IN ACCOUNT


Cross Cheque is said to that type of Cheque, which cannot be directly cashed on the spot. By cross Cheque amount from one account is transfer to another account mentioned on the Cheque. How a Cheque can be crossed:

Draw two diagonal lines just on the top left corner of the Cheque and write To Payees Account Only or left it blank, thus the Cheque will become cross. Following figure shows the format of cross Cheque: Encircled area highlights the crossing of Cheque. Date Pay In words Amount

The main advantage of the cross Cheque is that if Cheque lost or stolen then no one can cash it. TRANSFER OF AMOUNTS IN ACCOUNTS

Amounts are transferred with in the accounts by the help of cross Cheques. We consider here three cases:

1) 2) 3)

Transfer of amounts from one account to another account in the same bank Transfer of amounts from one account to another account in different banks Transfer of amounts from one account to another in same branch

TRANSFER OF AMOUNTS FROM ONE ACCOUNT TO ANOTHER ACCOUNT IN THE SAME BANK If cross Cheque presented of the same bank but branch is different like Cheque of UBL Islamabad is presented in UBL Attock because payees account is in Attock branch. Then how the bank will credit the account of payee. For this purpose bank follows the process:

First of all Cheque is collected by bank Filled a deposit slip and attached by Cheque Filled the Cheque collection slip (CC) and attach with Cheque Posted to responding branch i.e. Islamabad branch They will realize the CC and deduct the amount from payer account After this the Receipt called Realized CC is sent to originating branch and then they credit the amount in the payees account

TRANSFER OF AMOUNTS FROM ONE ACCOUNT TO ANOTHER ACCOUNT IN DIFFERENT BANKS

If Cheque is presented in the UBL and Cheque is of HBL then all the process of crediting amount will remain the same but one thing will differ, i.e. Cheque cannot be directly sent to HBL for this bank will see that HBL location, and then send this Cheque to UBL of that Location then that bank (UBL) will sent this Cheque to HBL and realize it.

TRANSFER OF AMOUNTS FROM ONE ACCOUNT TO ANOTHER IN SAME BRANCH


If Cheque presented is of same branch then there is no need to send it to the responding branch it will be directly credit to the account of the customer.

CHEQUE STOP PAYMENT


Another activity that is performed in the operations in UBL is Cheque stop payment. Cheque stop payment is a terminology used in banking for stop the payment for the Cheque presented. Bank cannot directly stop the payment without any specific reason. The customer does it. How payment can be stop by the customer for the Cheque presented? Let us see:

Write an application with subject of Cheque Stop Payment Or fill the Formatted Application form provided by bank Attach one Copy of CNIC Submit Rs.300/= Per Cheque as Cheque stop payment Fee

Submit all these with operations manager and fee with cashier. Then after all these process payment for the Cheque is stop Once this Cheque is stop can never been used again An entry from the computer for this Cheque number as Stopped Cheque So in this way the payment for the Cheque is stopped. Cheque stop payment is always requested by the customer it means that bank can never be stop the payment for Cheque on its behalf.

Remittance/ Transfer Funds Departmen:


First of all while examining the remittance activities in the bank we should know that what remittance is:

Remittance is transfer of funds from one place to another or from one person to another person

A remittance is an important service provided banks to customers as well as non customers. Bank charge some services charges in order to transfer money from one place to another. Since it is not free service therefore it is open for all customers and non customers also. One of the sources of income for bank is transfer of funds. In banking system these are some kinds of remittance, which are: a) Transfer within the branch

b) c) d)

Transfer from one branch to another Transfer from one bank to another bank in same city Transfer from one bank to another bank in different cities

REMITTANCE IN UBL

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

a) b) c) d) e)

Cashiers Cheque Foreign transfer Mail Transfer Telegraphic Transfer UniRemote (Immediate Transfer)

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 Attock city. How he/she will deposit money in its account from UBL Attock 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.

Instruments used in remittance department:

a) b) c) d)

Cashiers Cheque UniRemote Security Deposit Receipt Telegraphic Transfer

CC

SDR TT

CASHIERS CHEQUE
Cashiers Cheque is a negotiable instrument, which is drawn by one branch to another branch of the same bank. In case of agency arrangements Cashiers 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.

If a person wants to make payment from one city to another city then he/she can make payment through Cashiers Cheque. Bank charges a commission for performing this kind of service according to bank rate schedule, which is revised after six months. Cashiers Cheque can be issued or paid; there are two ways to issue Cashiers Cheque

a) b)

Issue of CC against Cash Issue of CC against Debit of Account (By Cheque)

Issuance of Cashiers Cheque:


When a customer requests UBL Attock City to issue him a Cashiers Cheque made on his account or against cash payment for a particular city like Islamabad. Then after having the total amount including commission, Cashiers Cheque is issued in favor of the specified person in that city and is drawn on UBL Islamabad Branch. So, when payee in any bank presents this Cashiers Cheque, it constitutes the inward clearing of UBL, Islamabad.

When UBL receive the Cashiers Cheque then it pass following entry.

Entry: Dr: Cr: Head Office Account with Treasury Cashiers Cheque Payable Account

Entry When Bank Issue CC

Dr: Cr: Then Dr: Cr:

Customer Account Transit Account

Transit Account Head Office Account with treasury

UniRemote
UniRemote is the online facility of depositing cash to any account in UBL. With on-line banking, you are connected to the complete network of UBL all over Pakistan. UniRemote charges are Rs: 200 for cash withdrawal and Rs100 for cash deposit.

Security Deposit Receipts (SDR)


Security deposit Receipts are your safe way of making payments. Not only its 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. *for non A/C holders, Rs. 250 is charged. Duplicate fee is Rs. 250 (flat)

TELEGRAPH TRANSFER
It is just a shape of Cashiers 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.

CANCELLATION OF CC AND SDR


After issuance of Cashiers Cheque or Security Deposit Receipt by UBL Branch Attock if any one of these has to be cancelled by the customer, it is returned in the bank. Then, after deducting the cancellation charges of Rs. 200 for CC, the remaining (net) amount is paid to the customer.

Job/Work/Tasks system of the organization


UBL is a commercial bank, which transacts the business of banking in accordance with the provisions of BCO, 1962. Section 7 of the Act authorizes banks to engage in the prescribed form of business. In the light of this section UBLs functions can be categorized as under: Agency services General Utility Services Providing specialized services to customers, and

Decision-Making Environment

The UBL is under the ownership of two very strong (financially) group (The Abu Dhabi Group & The Best way Group) and The Deputy Chairman of the UBL is Sir

Mohammad Anwar Pervaiz who is the leading role of Best way Group. So UBL is acted as a centralized bank. In 1986, the organizational structure of domestic operations of the bank was reformed and decentralized on the basis of provinces. As a result provincial headquarters were established at Karachi, Lahore, Peshawar and Quetta in order to meet the needs of sanctioning loans and other facilities to the trade, industry and agriculture of each province. UBL is centralized. It means authority is not delegated to branch level. Manager cannot take initiative regarding different decisions such that for giving finance.

FINANCIAL ANALYSIS
Financial statements are the principal means of reporting the financial condition and results of operations of a business entity. These statements are meant to assist various parties in decision making who are interested in the activities of the business. These statements are means to an end of helping stakeholders in decision-making. To improve the quality of decision making proper analysis of these statements helps a lot. Financial statements analysis helps in determining the financial conditions at any particular points in time and effectiveness of operations of a firm during a specific period. The various stakeholders of business are interested in the analysis of financials statements. But the focus of interest of all is not the same. For example, creditors and credit reporting agencies are interested in finding out the credit worthiness of the firm to which they have extended credit or intend to extend credit. Short term creditors are

interested in short term liquidity of the business and long term creditors are interested in the long term cash flow which the firm can generate over the long period of time. Investors are interested in the firms ability to sustain profitability over a period of time. Government agencies analyze financial data for tax purposes. The internal users of financial statements like management also analyze financial data for planning and control.

COMMON SIZE ANALYSIS OF BALANCE SHEET


Common size analysis is an analysis of financial statements where the total assets divide all balance sheet items of asset side and all credit side balances divided by all liability items, and all income statement items are divided by net sales/revenues. Common size analyses are extremely helpful to highlight changes over the time in financial performance and financial conditions of the company. The table shows common size analysis of the balance sheets for the years 2007, 2008 & 2009. The common size analysis given in the table shows that there have been improvements in the current assets in 2009 as compared to 2008, about 17%. But there has been decrease in fixed assets of about 16%. The main reason for this change is increase in short term investment showing a constant increase as a percentage to total assets. This implies that the bank is concentrating now more on non-interest income and the interest rates are constantly falling. Short-term advances have shown a significant change of 15% whereas total advances show a total change of only 6.3%. This is very significant to note that major decrease has occurred in long-term performing and non-performing advances.

There is decrease in long term assets of about 17% which mainly cause the decrease in long term advances which are about 13% and 6% decrease in long term investment. On the liability side the total current liability has shown change of about 4%. The main reason for which is increase in current deposits, which are about 6%. The long-term liability of the organization is also decreased by 4%.

COMMON SIZE ANALYSIS OF INCOME STATEMENT


The common size analysis of income statement is given in the table. Which shows that the UBL has been able to control its interest or mark up expense? As a result of decrease in mark up expense as a percentage of total revenues the gross profit margin has shown a trend of continuous increase. The increasing G/P Margin shows efficiency of the bank in controlling cost of sales (Markup expense) and better strategy of pricing, products and services. The provision for non-performing loans has a decreasing trend making no provision for non-performing loans and diminution in value of investment, which increases the profit of current year. The reduction in provision is a good sign, which shows that the bank is recovering its disbursed advances. It shows the good credit management of the bank. There is a great increase in non-markup income, which is about 23%. Among its individual components investment income has shown a large increase as a percentage of sales.

Non markup expenses also show a rising trend in absolute amount though the common size in percentages has shown a mixed trend due to the changes in revenue figures. The non-performing expanses also increased to about 25%, which is a very high percentage, but the other aspect of this is that it increased the efficiency and credit management of the staff. Like gross profit the net profit margin before tax has also increased with 24% rate. The extraordinary item expanse has not occurred in 2009 that caused a slight increase in the net income. The tax expanse is increased about 7% because of the increase in profit. Loss brought forward from previous year is reduced by 14%. The common size analysis of the UBL is clearly showing that the bank has shown a lot of improvement in its performance. The organization shows profit for the first time in the last 5 years which is a positive sign and it will build up the moral of the employees by which they can work more effectively and efficiently increasing the performance of the bank.

FINANCIAL RATIO ANALYSIS


The user of financial statements finds it helpful to calculate ratios when they interpret companys financial statements. A financial ratio is simply one quantity divided by another. Ratios focus on special relationship between two items of balance sheet, income statement or one from each. Ratios make it easier to understand a specific relationship between various items of financial statements then looking simply at the raw numbers themselves. The number of financial ratios that might be created is virtually

limitless, but there are certain basic ratios that are frequently used, these ratios can be placed into six different classes. Liquidity Ratio Asset Turnover Ratio Leverage Ratios Coverage Ratios Profitability Ratios Market Value Ratios The calculation and interpretation of these ratios of financial statements of UBL are as follows.

YEARS 2007 Current Ratio 0.84 Asset Turnover 0.07 Debt to Asset 0.99 Debt to Equity 14.54 Coverage Ratio 0.1 Gross Profit Margin 44.65% Net Profit Margin -65.12% Return On Investment -4.43% Return On Equity -887.99% Advances to Deposit 56.46% Investment to Deposit 20.22% Cash Ratio 9.59%

2008 0.91 0.06 0.94 14.4 1.15 52.50% 12.69% 0.76% 16.78% 46.74% 41.63% 9.23%

2009FORMULA 1.15Current Assets / Current Liabilities 0.04Markup Revenue / Total Assets 0.93Total Debt / Total Assets 13.47Total Equity / Total Assets 3.34EBIT / Interest Expense 79%Gross Profit / Revenue * 100 30%Net Profit / Revenue * 100 1.24%Net Profit / Total Assets * 100 18%Net Profit / Total Equity * 100 45%Advances / Deposits * 100 28%Investment / Deposits * 100 28%Cash / Current Liabilities * 100

CURRENT RATIO:

UBLs current ratio is increasing over the time. Higher the current ratio higher the ability to meet the short-term obligations as they come due. The UBLs current ratio is increased by 0.18% as compared to 2008. this in turn decreases the risk of insolvency. The change is occurring due to increase in short term investment and decrease in short term borrowings.

ASSETS TURNOVER:
This shows revenue generated per rupee investment in total assets. UBLs assets turnover ratio has shown a little decrease. This is because of increase in total assets with proportionate increase in revenue. Banks have relatively low ATR capital, as they are selective in advancing loans and generating smaller sales.

DEBT TO ASSET RATIO:


The analysis of total debt to assets ratio, there has been decrease of one percent as compared to 2008 and 6% to 2007. In 2007 every rupee one of assets was being financed by rupees 0.098 or debt and in 2008 it is 0.94 while in 2009 it is reduced to 0.93 worth of debt per rupee of asset. Although the decrease is not large enough but it is a good sign for banks creditors. The decrease may be attributed to the substantial decrease in borrowings from financial institutions but the affect was weakened by an increase in bills payable and other liabilities.

DEBT TO EQUITY:
This ratio measures how the company is leveraging its debt against the capital employed by its shareholders. Analysis of debt to equity ratio indicates that the current position for the debt to equity is that for every one rupee in equity provided by the

shareholders the bank has Rs. 13.5 as a debt. This shows that the bank is heavily relying on debt financing. The reason for huge difference stated in the table is because of losses occurred in 2007 and 2008.

COVERAGE RATIO:
This ratio shows the number of times a company can cover or meet its financial charges or obligations. One of the most commonly used ratios is the interest coverage ratio that measures the number of times the income is available to pay interest charges. The UBL interest coverage ratio has shown significant improvement in these three years. The ratio is increased from 0.10 to 3.34.

GROSS PROFIT MARGIN:


Gross profit margin is the difference between the revenue and cost of goods sold. Gross profit is critical because it represents the amount of money remaining to pay operating expanses financing cost and taxes. UBLs gross profit margin per rupee has shown rising trend in last three years. There is an increase of 27% in 2009 as compared to 2008. this shows efficiency of the bank to control the cost of sales.

NET PROFIT MARGIN:


This ratio shows the profit that is available from each rupee of the sale. After all expanses have been paid. Net profit margin is also showing an increasing trend. UBL has improved net profit margin in the current years. The net profit margin has reached to 30% as compared to 2008 in which it was only 12.69%. While in 2007 it was in negative figure. It shows a good impact on the UBLs Balance Sheet.

RETURN ON INVESTMENT:
This ratio measures the profitability per rupee of investment in assets. UBLs return on investment has shown an improvement more than 100%. In 2009 the ratio is 1.24% while in 2008 it was 0.76% and in 2007 it was in ive figures. Although the assets have increased but the operational recovery of the bank is main cause of increasing this ratio.

RETURN ON EQUITY:
This ratio shows the profit as a proportion of the book value of the common shareholders. The return on equity is also shown a great deal of positive change. In 2009 the ratio is 45% while in 2008 it was only 16% and in 2007it was in negative figures.

ADVANCES TO DEPOSIT RATIO:


This ratio shows the companies advances employed per unit of deposit. This ratio of UBL over the recent three years shows a decreasing trend. In 2007 it was 56% while in 2008 it was 46% and in 2009 it is 45%.

INVESTS TO DEPOSIT:
This ratio shows the companys investment employed per unit of deposit. This ratio increased in 2008 as compared to 2007 but in 2009 it again decreased. It is because of industrial development factors in the country by which lending has been increased and investment is slightly decreased.

QUALITATIVE ANALYSIS OF UBL

During my six weeks of internship period I have tried to fully commit myself in the learning process. I kept critically observing the things that I could analyze and the result of the exercise is presented as below. A) Organizational: Existing organizational hierarchy hinders vertical communication and blocks flow of information among the levels of management. The workload is not equally distributed. Coordination level among divisions/departments and employees are poor, There is centralization of authority and branch managers are bound and restricted to take initiative. Due to overlapping nature of duties and jobs there exists chaos and confusion in branches. B) Departmental:

During my internship period in UBL, in various departments, I noticed following departmental problems. i. Cash Department: Not very frequently but there are instances of fake currency notes, being identified. At times notes received from other branches were found to have certain fake currency notes. ii. Counting mistakes occur due to overcrowding particularly during the collection of utility bills. Manual counting system also affects efficiency of the bank.

iii.

There is generally the lacking in observing and practicing banks relevant procedures.

iv.

Identification of customers signature is very important particularly when cash is to be withdrawn by him. Manual practices pose problems in those branches where automation has not been done yet. Remittances Department: Application of tests for authentication of TTs is not known to al concerned individuals that reduces the efficiency and further the wrong application of tests prevent payments and the delay could dissatisfy customers.

i.

ii.

Telegraphic messages require specific skills and training. The employees are partially equipped of such knowledge.

iii.

Preparation, execution and management of TTs and MTs and particularly CCs ask for mastering applicable rules and regulations and most of the staff was found ignorant of those. Customer Service/ Account Department: In cases where the presence of customer himself is must, is sometime compromised due to influences of\r fear of loss of customer.

i.

ii. iii. iv. v.

Sometimes information is not fully communicated due to work overload. Missing of information on account open form due to lack of proper guide. Data entering errors in computer. At times due to lack of training wrong stamps are applied on instruments.

Future Prospects/ Recommendations:


To compete with other banks, UBL needs to set strategies for its new product by including the postings strategy, it will help in image building of the financial package to be launched. Once the bank has defined its potential market and has established marketing objectives, it must need to develop posting of its financial product. Position is the desired perception of the product within the market target of the bank for example, if the product is launched. Its position should be done in such a way, that customer is fully aware of its major characteristics the bank has stained to build the image of its products as highly profitable package. This positioning strategy is supported by the strategic consideration on various marketing mix tools e.g. advertisement, publicity etc.

SHORT-FALLS/ Weak areas needed to be improved:


During my internship at the UBL I find out week areas that require improvements for long-term benefit of the organization. These suggestions and recommendation are as follows.

The behavior with the customers should be improved. There is a great need of proper training of employees. Because when ever they were asked about the latest banking the answer was sorry we dont know.

Like the other reputed commercial banks UBL should recruited some officers especially from the fresh MBAs and M.Com students. Doing so, the more talented persons would enter in the management and they will try to make the National Bank compatible with the other banks.

All the branches must be fully equipped. Try to establish effective communication between top-level management and executive.

Also do marketing through internet Effective training and qualified, dutiful and vigilant inspection teams are inducted per force in all the banks. .

This branch is not doing many functions to open the L/C and to deal in export and import facilities. So bank should hire export staff for such type of activities and start them in the branch.

CONCLUSION:
A Bank, like the society it serves should be dynamic as banking is about people

customers with their needs and opportunities and staff with skills, experience and resources. UBL has shown dynamism since its inception. There have been many changes in the structure, functions and the services provided. These changes reflect the changing requirements of our developing economy as a whole and those of Industry, Commerce and private Individuals. UBL is full of experienced and professional traditional bank. As it perfectly suit the environment, YOU attitude has helped UBL in capturing masses. In the private sector, no doubt it is 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. We need to put in some guidelines for customers, as they walk in. This will not only save their time but will also motivate staff members to work more promptly, because if customer and employee engage into some unhealthy quarrel, the whole environment will be disturbed.

RECOMMENDATIONS:

Recommendations and suggestions are considered to be the most important part of an internship report, without which no report is considered complete and meaningful. This part of the report is based on the previous sections i.e. review and analysis. Moreover, for bringing suggestions, discussions have been conducted with the staff of UBL officers, who not only provided the basis for recommendations and suggestions but also pointed out some areas, where the change for the development is utmost important. Realizing the importance of this section, efforts have been made to give feasible recommendations, which are categorized under the following headings.

Mobile Banking

Mobile banking is actually a banking that you can do yourself. You can perform various activities of bank through your mobile phones or through your computers. With just a call you can transfer money from an account to another and similarly other activities. It is a concept that is gaining importance throughout World Pakistan is no exception. UBL should start working on this concept to maintain their existence in the changing banking sector.

Adopt Pro-Active Approach UBL management should adopt proactive to survive in this sector. What I have observed is that UBL management is having reactive approach means that they react to

the situation that their competitors have created. UBL should try for new innovative ideas rather than moving on the same track that their competitive are doing.

Educate Account Holders Whether the account holders are new or existing bank should provide them with the initial information about how to deposit and withdraw money from the bank. It will be beneficial for the bank in a way that lot of time could be saved afterwards with that approach. Promotional Activity Bank must let potential customers know that all attractions for banking exist. This is done by advertising on Television and obtaining Press coverage, in conjunction with direct mail, window displays, pamphlet in branches and in appropriate other locations (such as hostels, shops etc.) and including leaflets in statement of accounts sent to existing customers in the hope that they will tell potential customers about the services provided by our bank.

Relationships The bank should keep on filling the gap between customer and the bank through consumer friendly attitude and efficient services. They should work on building relationship with the customers.

Change Attitude

Employees inside the branches should change their attitude toward the customer. It has been observed that customer do not get the same warm welcome and importance that he wants and he is been provided by other emerging banks. They should start thinking about changing their attitude from now.

Appearance Physical appearance of the location and inside the building also matters. It helps a lot to attract the customer. Some branches of UBL are very attractive but all the branches should be well dressed. Charge Card UBL should provide the facility of charge card as well. Recovery Facility It should also provide the facility of recovering notes payable and accounts payable.

BIBLIOGRAPHY
Web sites
www.ubl.com.pk www.google.com www.wikipedia.com www.merapakistan.com www.allfreeassays.com www.marketingteacher.com

News papers
BANKING JOURNAL www.dawn.com www.nation.com.pk

Books
David H. Buzzell , Principals of Banking Charles H. Gibson, (1998), Financial Statement Analysis

Van Horne, J. C & J. M Wachowicz, (1998), Fundamentals of Corporation Meenai, S. A, (1999), Money Banking in Pakistan

Annexes
Board of Directors:

Chairman His Highness Shaikh Nahayan Mabarak Al Nahayan

Deputy Chairman Sir Mohammed Anwar Pervez OBE

President & CEO Mr. Atif R. Bokhari

Director Mr. Omar Ziad Jaafar Al Askari

Director Mr. Zameer Mohammed Choudrey

Director Mr. Ahmad Waqar

Director Mr. Javed Sadiq Malik Mr. Aly Shah Barrister-at-law, Company Secretary

Director Mr. M. Tahsin Khan Iqbal

Executive Committee:

Mr. Atif R. Bokhari President and C.E.O

Mr. M.A. Mannan Group Executive Consumer/Commercial Bank

Mr. Nauman Hussain Group Operations & Technology Head

Mr. Risha Mohyeddin Group Executive Treasury & Capital Markets

Mr. Aameer Karachiwalla Group CFO

Mr. Ayaz H. Shamsi Group Executive Human Resources

Mr. Muhammad Ejazuddin Group Audit & Inspection Head

Mr. Tariq Mohar Group Business

Mr. Mohammad Asghar Group Commercial Bank Head

Support / Collections Head

Mr. Ali Sameer Group Head SAM

Common size analysis of consolidated Balance Sheet


Rs in '000 2007 2008 2009 3609108 70463707 35591280 4370006 3627557 19050791 9190430 33883311 29580252 39489369 43632117 89292490 8641263 2641471 3509351 97782157 118177074 177024164 19388131 33623058 25007413 28477494 26423058 10312297 11813855 5739798 3671991 2864018 2831534 3884990 8297500 5026459 5486357 70840998 73643958 48363048 168623155 191821032 225387212 1540592 1847025 2991269 4004130 174533 174533 102568752 118167469 152580240 8838842 9986608 5933743 116952316 130175635 161679785 38747422 43998916 37252204 21264831 5212755 10883720 49219400 49211671 48135924 166171716 179387306 209815709 22481680 3960453 -27282709 1168264 5180000 4258947 -722387 1271700 5180000 4712569 454403 1412932 Common size (%) 2007 2008 21.5 17.93 2.6 1.89 5.5 17.66 23.4 22.75 5.1 1.38 58 61.61 11.5 17.53 16.89 13.77 7.01 2.99 1.7 1.48 4.92 2.62 42 38.39 100 100 0.91 2.37 60.83 5.24 69.36 22.98 6.21 29.19 98.55 13.33 2.35 -16.18 0.69 0.96 0.09 61.6 5.2 67.86 22.94 2.72 25.65 93.52 2.7 2.22 -0.38 0.66

assets Cash/Bal. With Banks lending to F.Is Investment (ST) Advances-Performing (ST) Other Assets Total Current Assets Investment (LT) Advances-Performing (LT) Advances-Non performing (LT) Operating fixed Assets Deferred Tax Assets Total L.T Assets Total Assets Liabilities B/Payables Borrowings ST Deposits - Current Lease and Others Total Current Liabilities Fixed Deposits Other Long term Liabilities Total LT Liabilities Total Liability Shareholder's Equity Share Capital Reserves Accumulated Losses/Profits Minority Interest

2009 15.79 8.45 13.12 39.61 1.55 78.54 11.09 4.57 1.62 1.72 2.43 21.45 100 1.32 0.07 67.69 2.63 71.73 16.52 4.82 21.35 93.09 2.3 2.09 0.2 0.62

Surplus on revaluation Total

2123751 24541439

2445466 12433726

3811599 15571503

1.26 1.45

1.27 6.48

1.69 6.9

Common size analysis of consolidated Income Statement


Rs in Millions ITEMS Mark up revenue mark up expense gross profit provisions and B/Debts Net Mark up Income Non Mark up Return Commission & Brokerage Dividends/Exchange and Others Total Non Mark up Income Total Income Non Mark Up Expense Administrative Other Provision and Charges Total non mark up Expenses Profit Before Extraordinary Items Extraordinary Items Profits before tax Taxation Profit/Loss after tax Share of Minority Interest Accumulated Loss Brought Frd. Adjustment against sh. Capital Appropriation and Transfers Surplus on revaluation of Assets Transfer to Statutory Reserve Accumulated Loss Brought Frd. 0 2 27283 238 332 722 527 454 0 0.02 237.9 2.1 2.91 16.34 0 5.68 4.9 4669 632 5301 1472 -7200 -5728 1739 -7467 6 19821 0 5879 51 5930 2756 25 2781 1319 1462 10 27283 25202 6639 556 7197 4521 0 4521 1704 2818 21 722 40.71 5.15 46.22 12.84 62.78 49.95 15.16 65.11 0.06 172.2 0 51.64 0.44 52.08 24.2 0.21 24.44 11.59 12.84 0.09 210.64 221.36 48.77 18.38 30.39 0.22 7.78 0 71.62 6 77.64 48.77 1097 1818 2915 6773 2008 1514 3522 8686 2142 2803 4945 11718 9.57 15.85 25.42 59 17.63 13.3 30.94 76.2 23.1 30.24 53.34 126.42 2007 11468 6347 5121 1263 3858 2008 11385 5476 5909 746 5163 2009 9269 1931 7338 564 6773 Common size (%) 2007 100 55.35 44.65 11.02 33.64 2008 100 48.09 51.9 6.55 45.34 2009 100 20.83 79.89 6.08 73.07

RATIO ANALYSIS
YEARS 2007 Current Ratio 0.84 Asset Turnover 0.07 Debt to Asset 0.99 Debt to Equity 14.54 Coverage Ratio 0.1 Gross Profit Margin 44.65% Net Profit Margin -65.12% Return On Investment -4.43% Return On Equity -887.99% Advances to Deposit 56.46% Investment to Deposit 20.22% Cash Ratio 9.59% 2008 0.91 0.06 0.94 14.4 1.15 52.50% 12.69% 0.76% 16.78% 46.74% 41.63% 9.23% 2009FORMULA 1.15Current Assets / Current Liabilities 0.04Markup Revenue / Total Assets 0.93Total Debt / Total Assets 13.47Total Equity / Total Assets 3.34EBIT / Interest Expense 79%Gross Profit / Revenue * 100 30%Net Profit / Revenue * 100 1.24%Net Profit / Total Assets * 100 18%Net Profit / Total Equity * 100 45%Advances / Deposits * 100 28%Investment / Deposits * 100 28%Cash / Current Liabilities * 100

GRAPHICAL REPRESENTATION OF RATIOS:


CURRENT, ASEET TURNOVER, DEBT TO ASSET RATIO:

1.4 1.2 1 0.8 0.6 0.4 0.2 0 2007 2008 CR 2009 AT D/A

DEBT TO EQUITY RATIO


15 14.5 14 13.5 13 12.5 2007 2007 2008 2008 2009 2009

COVERAGE RATIO
4 3 2 1 0 2007 2007 2008 2008 2009 2009

Gross Profit Margin & Net Profit Margin

100 50 0 -50 -100 GPM NPM 2007 2008 2009

RETURN ON INVESTMENT, RETURN ON EQUITY


200 0 -200 -400 -600 -800 -1000 ROI ROE 2007 2008 2009

ADVANCES TO DEPOSITS, INVESTMENT TO DEPOSITS, CASH RATIO:

60 50 40 30 20 10 0 2007 2008 A/D I/D 2009 CASH

SOME IMPORTANT ABBREVIATIONS

RHQ TFCs CDR CEO COD CDR MICs PLS A/c DD MT TT IBC IBCA OBC OBCA OD ATM DA DP LC SLC ULC B/L FOB B/E E-Form T-Bills PIB SME CIB LPR TC CRM SEVP GDP CRM CBG IPO CDB CCD PO CSO NTN

Regional Head Quarter Term Finance Certificates Call Deposit Receipts Chief Executive Officer Certificate Of Deposit Call Deposit Receipt Monthly Income Certificates Profit & Loss Sharing account Demand Draft Mail Transfer Telegraphic Transfer Inward Bills Collection Inward Bills Collection Advice Outward Bills Collection Outward Bills Collection Advice Over Draft Auto Teller Machine Delivery against Advance Delivery against Payment Letter of Credit Sight Letter of Credit Usance Letter of Credit Bill of Lading Free On Board Bill of Exchange Export Form Treasury Bills Pakistan Investment bonds (common bonds) Small & Medium Enterprises Central Information Bureau (of SBP) Leaves Prior to Retirement Trade Checking Credit Risk Management Senior Executive Vice President Gross Domestic Product Customer Relationship Management Corporate Banking Group Initial Public Offerings Central Data Base Control and Compliance Department Pay Order Customer Service Officer National Tax Number

NAB SDR CC ATR

National Accountability Beauru Security Deposit Receipt Cashiers Cheque Asset Turnover Ratio