By the Grace of Almighty, the most Merciful, the most Beneficial, I'm today submitting my internship report, at the end of my first pragmatic experience and I'm glad to have it with UBL, where you come first, only if you're the customer. Thirst of learning is inside you, and whatever the environment, if you're willing to learn, you do. At UBL, I had a new, challenging, yet a perfect environment to learn. My parents' prayers and their teachings were always with me and hereby I will like to take this opportunity to show my gratitude to all those who made my internship an adventurous outwit. Here I am, from more professional and rather corporate environment of UBL main branch Charsadda. I never knew what it all going to be. As I enter the branch, it took me a minute to realize that the person sitting in the half fortified walls is the manager. Maybe I was expecting him in a glass sheeted room. At a glance, I grasped the interesting personality of the manager and today at the end of my internship; he’s one of the persons I’ll always remember. Sir whatever I learnt from you is always going to be respected, no matter whatever business field I choose. Those tips are always in my memory bag. Despite of the most hectic schedule, Mr. Shamshad helped me so much. I'm really grateful to you Sir: Ikram Khan for clarifying my concepts and making me learn from your experience. Whatever I learnt from you will definitely help me in my upcoming study and the professional life ahead. Thank you so much for being so co-operative and so helpful every time.

Fahim Jan
MBA (Finance)

Contents of Report
Chapter 01 Introduction to Report Introduction Purpose of the study Scope of the Study Objective of Study Methodology of Report Limitation Chapter 02 INTRODUCTION TO UBL Introduction to UBL Banking History Banking in Pakistan Birth of UBL Number of Branches Subsidiaries Functions of UBL Role of UBL in Banking Sector Computerization of UBL Moneygram facilities Huj Services UBL Vision & Mission Chapter 03 CONSUMER BANKING Consumer Banking UBL Address UBL Bying a Home UBL Business Line UBL CashLine UBL Credit Cards UBL Drive UBL Money Other Services Chapter No 04 COMMERCIAL BANKING 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) 01 01 01 02 02 03 04 04 04 04 05 05 05 06 07 07 07 08 11 11 11 11 12 12 12 12 13 14 14 14 14 15 15 15 15 15

UBL Profit COD Complementary Services Insurance Certificate UBL Wallet VISA UBL Orion UBL Net banking Humrah UBL e-statement Chapter No 05 UBL CHARSADDA BRANCH Background of UBL Charsadda Branch Organization Chart of UBL Charsadda Branch Department of Branch Accounts Department Deposit Section Remittances Department Foreign Exchange Department UBL Foreign Exchange Accounts Details Advances Department Chapter No 06 UBL ANALYSIS SWOT Analysis Strength Weakness Opportunities Threats Financial Analysis Ratio Analysis Profitability Ratio Gross Profit Margin Net Profit Margin Return on Assets Return on Equity Liquidity Ratio Current Assets Ratio Total Assets Turnover Ratio Leverage Ratio Debt Ratio Coverage Ratio Conclusion of Financial Ratio Chapter No 07 RECOMMENDATIONS Recommendation for the overall functioning of UBL Recommendation for the Specific Branch

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and the daily operations of finance department. Internee worked with intentions to point out the strengths weakness of the bank in accordance with other commercial banks. However. so internee got some idea about the corporate and the commercial branches. internee studied about the functioning of this particular branch. 1. we are required to submit a comprehensive report.2 PURPOSE OF THE STUDY: The purpose of the study is to experience real life banking practices in order to bridge the gap between the theory and the actual for better comprehension and knowledge of the different aspects of this vast field profession. internee had covered general banking concepts. a completion of eight weeks internship at one of the commercial organization is compulsory. At the end of the internship. strength and weakness of UBL Charsadda. for a meaningful dialogue resulting in a definitive conclusion the study for this 4 .Chapter 1 INTRODUCTION TO REPORT 1. Bank deposits. advances. Internee completed an initial eight weeks internship at the UBL (Main Branch Charsadda). Moreover.3 SCOPE OF THE STUDY Banking is a much diversified field and has various dimensions and treatments. The main purpose of this report is to analyze and comprehend banking operations and suggest measures in the form of concrete and weight recommendations. 1. the report also aims to inculcate amongst the students the method of collecting relevant material and shaping it in the form of formal report writing. covering the overall operational framework that we go through internship. Besides.1 INTRODUCTION: As a requirement of MBA degree. Where.

1. Brochures and manuals from the Bank branch.week's internship program. To study the status of the bank in the industry.5 Methodology of report The report was prepared using both primary and secondary data that included the following mythological tools: 1. newspapers and course books. 1. To know the relationship between theory and practical work. 4 . It includes. To know the policies of the bank. so I got an overview of each of them. Finally. They are in processed form. The main sources of secondary data of UBL Bank are: 1 2 3 Journals. To study the work environment of the bank.5. I focused my attention on working of Finance department.1 Primary Data The data which is collected for the first time and exist in raw form is called primary data. To study the organizational Management structure. I was provided with the opportunity to work in all the departments. 1 Personal observations during the eight .4 OBJECTIVES OF STUDY There are few objectives of my report which are mentioned below: 1 2 3 4 5 6 To apply knowledge in practice particularly in banking has been confined to Banking operations as the objective is to make an acquaintance with practical aspect of banking. 2 Discussion with the bank personal from time to time. 1. we would suggest and recommend practical steps needed to improve its banks performance. Annual report UBL Bank for year ended 31st Dec 2010.2 Secondary Data The data gathered from exiting sources are called secondary data.

1. Although there was enough time yet the space constraint and non-availability of resources on the part of the internee to personally visit places of interest and relevance has limited the study but do not prove the conclusion drawn at the end as incorrect. 4 . World Wide Web.4 5 6 Internship reports on UBL Bank available in the IMS library. The daily busy routine of the employees also allowed for foregoing any queries that cropped up in the mind while undergoing the training within the assigned branches.6 LIMITATIONS The bank hesitation to reveal certain facts and figures apart from major managerial and organizational secrets made it slightly difficult to gain all the information that would have resulted in a report applicable to the organization as a whole along with remedial suggestions.

Authors quote Babylonians (few quotes Chinese) who developed banking system as early as 2000. this word was italianated into “Bank.3 BIRTH OF UBL: On November 9. Senior 4 . Thereafter this sector has witnessed enormous growth.C 2. Chairman His Highness Shaikh Nahayan Mabarak Al Nahayan and Deputy Chairman Sir Mohammed Anwar Pervez are the two supreme controllers of the bank’s affairs. B. 10/ each. However the process is reverse since 1991. Section 7 and included as a private schedule bank with authorized capital of Rs. Some authors opinion is that this word is derived from the words “Bancus” or “Banque”.2 BANKING IN PAKISTAN Banking started in Pakistan after the bold and emergent decision of formulation of SBP on July 30. issued and paid up capital of Rs. which mean a bench and they further relate banking business inception to Jews in Lombardy. 1962. 1948.Chapter # 2 INTRODUCTION TO UBL 2. 10 million divided into 1 million shares of Rs. and UBL have been privatized and HBL is in the process of its privatization. Other authorities state that the word “Bank” is derived from the German word “Back” which means “Joint Stock fund” and later on due to German occupation of Italy. 2. up till now MCB. 1959. Nauman Hussain by the newly privatized bank. Amar Zafar Khan being a member of this newly formed set up manage UBL. UBL was notified under the BCO. In 1974 banks were nationalized. 20 million. Currently BOD and president/ CEO Mr. Another development is the appointment of director operation.1 BANKING HISTORY: Consensus on the origination of word “Bank” is not yet reached at. in the hope that new era of growth could be achieved through it. management of the bank is shown in the chart given at the end of chapter. ABL.

4 NUMBER OF BRANCHS: UBL has a large network of branches. Switzerland  United Executers and trustees Company Limited  United Bank Financial Services (Private) Limited 2. there were 1623 branches whereas in 1974 it had only 1238 branches and in October 2011 these figures show total number of 1100 branches. These branches are playing a significant role in channeling home remittances and foreign trade of Pakistan. 1962. Saudi Arabia. which transacts the business of banking in accordance with the provisions of BCO. Egypt. UK Switzerland. 2. In December 1983. Now UBL has branches in Bahrain. United Arab Emirates. UK  United Bank AG (Zurich).5 SUBSIDIARIES: UBL has four subsidiaries. The first foreign branches were established in London in 1963.2. In the light of this section UBL’s functions can be categorized as under:  Agency services  General Utility Services 4 . namely:  United National Bank Limited (UNB). Oman and The United States. Section 7 of the Act authorizes banks to engage in the prescribed form of business.6 FUNCTIONS OF UBL: UBL is a commercial bank. which extends to the remotest areas of the country. Qatar. Yemen Arab Republic. UBL has been very active in increasing its overseas branches network.

department for economic research. In a very shorter period of time it became one of the leading banks overtaking several other older and its competitor banks. Underwriting of loans raised by the Government or public bodies and trading by corporations etc.  Utility bills collection  Credit cards (unicard-1970)  Travelers Cheques (Humarah-1971)  Diaries and calendars – received prizes too  Promotion of sports 4 . The major contributions the bank ahs made are enlisted below:  Record setting performance and commitment to serve the customers  Personalized service and dynamic approach  Catalyst of changes  Professional management  Modern banking policy  Human resource development  Small loans (or) micro credits  Pacesetter in economic research established in 1967. which UBL achieve. and  Hajj-related services. present it undoubtedly the most dynamic and progressive.7 ROLE OF UBL BANKING SECTOR: The impressive growth and development.  Providing specialized services to customers. 2.

Similarly the system used for local transfer of money transactions is called uni-remote. UB-Online a web based service that can be accessed through multiple media link like. 4 .  UBL . Its three computers centers Rawalpindi.On line System: Themes of this service is “Access anytime. which is a well-develop on-line branch-banking package. any device” which symbolizes comfort. search facility and activity long o The banks as another computer-based system known as “UIBANK”. The system automatically prepares various report. Lahore and Karachi are equipped with the modern mainframe computers of various capacities. This has also allowed the bank to maintain its leadership within the industry. anywhere. (i) PC via internet (00) Mobile phone with WAP or free SMS) (iii) Personal Digital (iv) assistants and (v) Plain telephone. The use of computers has enabled the bank to save time and efforts raise efficiency and deliver the goods speedily to its customers.8 COMPUTERIZATION OF UBL: UBL has taken leading start in the introduction of computers in (1966-1968) in important cities. This facility has reduced the service time to less than six minutes per Haji compare to about half-an-hour to 45 minutes per Haji earlier.  Hajj service: Keeping to its tradition is august 1982 provided electronic facility at its Hajj booth and has installed now modern computers at designated branches (Hajis) and increasing efficiency. Every branch has been decorated with microcomputers.2. which can affect money transfers within minutes. and statement of accounts for customers. following are some of the exciting features: o Accounts statement & electronic data interchange o Graphical analysis o Alerts service /facility. convince and connectivity. central bank returns.  Money Gram facility: The bank has recently employed money gram service system.

[ UBL Vision ] To be a world class bank dedicated to excellence and to surpass the highest expectations of our customers and all other stakeholders. on a sustained basis • Optimize people. [ Mission ] • Set the highest industry standard for quality. across all areas of our operation. processes and technology to deliver the best possible financial solutions to our customers • Become the most sought after investment and • Be recognized as the employer of choice 4 .

Khan Head Corporate Banking Group Muhammad Ejazuddin Audit Chief Head Credit Policy Supervision Global Treasurer Shahid Waqar Mehmood Head Commercial bank Shaharyar Ahmed Aman Aziz Siddique Head Investment Banking group Head International Operations (Dubai) Ali sameer Chief SAM (domestic) Mehboob A.A Manna Deputy CEO Risha Moheyuddin Nauman Hussain Director Operations & Utilities Khalid Munawar-ud-din Mansoor M.SENIOR MANAGEMENT OF UBL Sheikh Nahyan Mabarak Nahayan chairman Sir Mohammad Anwar Pervez Deputy Chairman Amar Zafar Khan President M.Khan Rukhasana Asghar Global Head Human Resources Ameer Karachiwala Chief financial Office/HCA 4 .

ORGANIZATIONAL HIERARCHY OF UBL Chairman Deputy Chairman Board of Directors Executive Committee Managing Director SEVP EVP VP Officer Grade-I Non Clerical Clerical Staff Staff Officer Grade-II Officer Grade-III 4 .

So go ahead and start the search for your dream home because with easy and affordable installments you need not think of renting a house when you have hot UBL Address. 4 . efficient and attentive personalized banking services a unique banking relationship experienced by each UBL client. You can utilize up to Rs. A lot of planning and hard work is involved in making this dream come true. With a maximum financing limit of 80% you can easily buy a house or apartment that best fits your requirements. BUYING A HOME Why rent when you can buy? Buying a home of your choice has never been so easy. With UBL Business line.10 million with the help of which you now focus on your business expansion and growth. That is why. Now. UBL BUSINESS LINE UBL Business lines a complete solution to all your Business Financing needs. In UBL you get friendly. and achieve the level of success that you truly deserve. by offering you the right ingredients that can help you realize your dream with absolute convenience. All product options are amortized and range over a tenor of 3-20 years. UBL Address empowers you to become the proud owner of a home by offering a variety of product and pricing options that are flexible yet affordable. With UBL Business Financing facility.Chapter No 03 CONSUMER BANKING You as an individual can gain and benefit the most through UBL Consumer Banking. you can now take your business to greater and newer heights. at UBL we aim to make your decision easier. UBL Businessline is a running Finance facility that not only provides funds for growth but also enables you to capitalize on profitable opportunities. UBL Business line credit line is here to solve all your cash flow problems. now you will surely say. UBL ADDRESS Owning a house of your very own is a cherished dream. “Ab Hui Kamiyaabi Meri Manzill”. You can utilize the following services. So choose the best product option and pricing to suit your needs.

because at UBL. UBL DRIVE Accelerate your life. It’s about buying new furniture or marriage expenses. UBL Cash line takes care of your cash requirements. UBL CREDIT CARD Welcome to the world of UBL Credit Cards the most exciting and vibrant credit card brand in Pakistan. you can get up to 75% of your car value. 4 .500. it’s financing facility that gives you Cash on your car. It empowers you to take control of your finance.000 (PKR) and payoff up till 5 years. USED CAR FINANCING With UBL Drive you can buy favorite used car (up to 5 years old) at the most affordable rates. UBL MONEY UBL money. You can borrow any sum between 50. financing the education of your child or enjoying vacations abroad! UBL Money caters your needs handsomely. NEW CAR FINANCING UBL Drive allows you to drive away in your own car by making a down payment of just 15% and to top that with low monthly installments.UBL CASH LINE UBL Cashline is a flexible loan that provides you cash up to Rs.000 to 500. We know what you need at what time.000 without any security requirements. CASH YOUR CAR UBL Drive is not a car loan. Just give us the opportunity and let us serve you best. option and flexibility unmatched by any other bank. We offer 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. Whether you are a salaried individual or a businessman. the personal installment loan from UBL provides you with power. UBL Cashline is aimed to make your life easier…ZINDAGEE ASAAN. Drive the way that suits you! UBL Drive is a unique auto financing product which offers you features. You come firs t. Control convenience and the flexibility to manage your financial requirements and realize on your dreams.

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. 4 . convenient and secure method of accessing bank accounts on the internet.000. eat all you can or fill up car tank without carrying any cash. as early as 1971. providing its customers with round the clock tele-verification of HAMRAH Rupee Travellers Cheques. UBL WALLET: UBL Wallet VISA as your debit card. Its never being so easy to access and manage your finances in a secure real-time. “HAMRAH” Rupee Travellers Cheque enhances this facility for the convenience of its valued customers by offering denomination up to Rupees 10.OTHER SERVICES • • • • UBL Net Banking UBL E-Statement Hamrah UBL Wallet UBL NET BANKING: UBL Net Banking is an internet banking portal offering a simple. you can shop all you want. UBL has a 24 hours customer’s help-line. UBL in the shape of. UBL was a pioneers an introducing Rupee Travelers Cheque facility in Pakistan. In continuation of the same tradition. HAMRAH: UBL has always been adding the forefront in identifying and meeting the financial needs of its valued customers.

UBL has so much to offer. they can carry out transactions as and when desired. As more and more people start their own industrial units. so much to deliver. Walk in to any nearest branch of UBL. UBL Business Partner (Current Account). 10000 to avoid the minimum balance charges until and unless they are exempted from it. Through 24hrs ATM services. we offer you the most beneficial and secured financial investment and saving options. 4 . UBL BUSINESS PARTNER (CURRENT ACCOUNT) For our regular customers. the country will move steadily towards economic self-reliance. staying in the daily withdrawal limit. UBL BBA holders can carry out two deposits and two withdrawals each month as per the bank policy. enter the world class bank and let us serve you with what you need. You can choose from the following list of accounts anything that serve your needs best. UBL has developed a YOU attitude to understand its customers well. UBL BASIC BANKING ACCOUNT Exempted from Minimum Balance charges. we are your caretakers. we will always be shadowing you.Chapter 4 COMMERCIAL BANKING To stand tall among the world’s leading banks. SMALL BUSINESS SCHEME Under the Small Business Scheme. This scheme is aimed at spreading prosperity in the country by reducing unemployment. Remember! We are not just a business. we know what you need. Customers are liable to maintain minimum balance of Rs. UBL Wallet. we offer the ultimate option. INVESTMENT AND SAVING ACCOUNTS: At UBL. With unlimited deposits and withdrawals. we offer you convenience of UBL netbanking. we speak for you. UBL is providing loans on easy terms to those who wish to set up their own small-scale business. When you talk. You live the way you want. UBL Orion and other exciting consumer products. For small and middle size investors.

Avg Balance per month Rs. Internet has turned distance into time. all are seconds away from you.25% 7.5% With UBL UniFlex. 250 million Rs. 500 million Above Rs.20% 5.10% 5. Amount 1000-50000 50001-100000 100001-200000 Profit Rate 7. UBL UNIFLEX Have couple of thousands spare? Come invest in our UBL UniFlex Accounts. or at office or anywhere in the world.00% but more you put in. we will make you earn handsome. we offer 5. 100 million Rs. and we have turned your account into a shear pleasure. we make it bigger for you.00% 5. PLS UniSaver offers you semi annually profit disbursement with profit being calculated upon average monthly balance. 100 million to Rs. we serve you with fix profit rates at maturity. 25 million. Now sitting at home. With deposits starting from Rs. 4 . even Chicago. E-TRANSACTION (CURRENT ACCOUNT) In the era of glooming computerization.PLS UNISAVER Let your savings earn you bucks. 250 million to Rs. but with PLS UniSaver Plus.a. 25 million to Rs.0% 7. Tokyo. 500 million * Profit rates are for the month of July only Profit Rate* 5. Sydney.50% UBL RUPEE TRANSACTION ACCOUNT (PLS SAVING) Have your money box at UBL! Put in your savings and let us earn you 5% p. more profit rate will we offer.30% 5. over your daily savings. PLS UNISAVER PLUS Big amounts earn you big. 25 million Rs.

50% 9. So UBL now offers enhanced Free Accidental and Disability Insurance Certificate coverage to all existing and new account holders.000 4 .75% 13.25% 8. Closing Balance at month end (PKR) 1 – 10. Instant Mobile top ups. Alerts. choose your profit option.001 – 500.25% COMPLEMENTARY SERVICES INSURANCE CERTIFICATE UBL not only cares about you.000.000 10. come surf with UBL. and we will serve you the best rates in Pakistan.we offer you a wide spectrum of world-class electronic services and banking products each time you log in. UBL PROFIT COD Make fix investment with us. 2008 8.75% 15. Use your account like a regular account plus use the premium Internet & Mobile banking services for Instant Fund Transfers.000 250. Instant Shopping.50% 12.a. we care about those too who are dependent upon you.50% 11.75% 16.25% 13.25% 15. Stop imagining.25% 14. Instant Bill payments.75% 14. Statements and much more.001 – and above * Terms and conditions apply Insurance Limit (PKR)* 100.000 100. You love surfing.000 1.001 – 100.25% p. we offer you the following rates: Deposit Tiers & Products 3 months 6 months 1 year 2 years 3 years 4 years 5 years 6 years 7 years 8 years 9 years 10 years Jul 1 – Jul 31.000 500.000 500. come invest in our Certificates of Deposit! At maturity. What if you earn at 16.

000 20. pay anyone you want. buy vouchers you need and get account alerts. We offer Card Type Gold Silver Annual fee (Rs.000 50. UBL ORION Buy W100! (Message tone) Dear customer your voucher # is 1456894525796324 Thank you for using Orion’ Your finger tips might have not been that powerful before. Every time you shop. 4 .000 Funds Transfer (From UBL to UBL) Funds Transfer (From UBL to other banks) 250. individuals and sole proprietors.) Debit Card Spend 100.) Primar y 500 300 Supplementar y 250 150 ATM Withdraw al 40.000 250.UBL WALLET VISA Imagine you are shopping in a big mall and you are ever so watchful about your cash in your wallet. Just type in commands and at your ease. UBL NET BANKING UBL is very much determinant to make banking as you will. through more than 925 ATM machines. You can choose according to your need.000 Moreover.000 250. the convenience and excitement of Internet Shopping is also available at UBL Wallet VISA ATM/ Debit Card. Not only can this. running around for mobile cards and queuing to pay your utility Bills is no longer a part of your life. at home or at anywhere in the world but still connected to your account! Through UBL NetBanking. you're in a mess! Let UBL Wallet Visa ease your shopping. How about being in office. Access your accounts any time. Shop around and pay your expenses directly from your account through UBL Wallet. all integrated with one of the best security systems in the world. With UBL Orion Mobile Wallet. We are here to help you pay miles away. So surf around and feel free to shop. or on your way. debit their accounts as many times as they want.000 Daily Limits (Rs. Live your life at your finger tips. pay your bills. buy mobile cards and pay your utility bills.000 250.

monthly. UBL Omni Dukaans are located in more than 580 cities and towns across Pakistan. something that’s safe anywhere and accepted everywhere. purchase mobile card vouchers. UBL Omni Branchless Banking UBL Omni now brings a host of banking services to your nearest "Dukaan". Moreover. "Hamrah" Rupee Traveler Cheques are the ideal and safest way of carrying cash when travelling anywhere in Pakistan. whether close to their home or place of work. Humrah RTC's are now accepted at more than 2000 places such as hotels. you don’t have to bother about visiting us to get your account statement. Get debit/credit alerts and know as soon as you get money or pay off. weekly. property.HUMRAH Humrah is your secured cash. Let it be business. quarter or semi-annually. Customers across Pakistan can now open a UBL Omni bank account at any UBL Omni Dukaan of their choice. No longer will they have to visit a bank branch to conduct their basic banking transactions nor will they be limited by standard banking hours.000. UBL E-STATEMENT: During your busy hours.000 and 5. car dealers. 4 . trade or personal needs.their mobile phone number will effectively become their bank account number irrespective of which service provider they use. UBL Omni account holder will subsequently be able to deposit and withdraw cash. well beyond the regular branch networks of banks. etc and of course at all our UBL branches. Offered in the denominations of 10. free of cost to UBL e-statement facility and let us share details with you daily. make utility bill payments. send or receive money. we make you have the most convenient option. shops. real estate agents. make postpaid mobile bill payment and much more by using diversified array of convenient channels which includes UBL Netbanking/ WAP. This is a major milestone in the evolution of banking that will reshape the traditional banking model by offering basic banking services across urban and rural Pakistan. SMS. jewelers. by using their CNIC number and mobile phone number . Neither there’s a risk of anyone else knowing your account details. Contact Centre or ATM. Subscribe today.

UBL is full of experienced and professional traditional bankers. The bank is currently operating with an excellent deposit base and the efficient staff category which are the back bone in Improving the branch performance and upgrading of its foreign exchange department to increase bank’s contact with customers with in the region while the branch is headed by a Chief Manager guiding to different functions operating within the branch and a sub manager taking the responsibility of staff’s efficiency working in foreign exchange department. It was established on 22th March 1965 under the section 28 (1) of the banking company ordinance 1962 to open branch at charsadda license No BC1700. the whole environment will be disturbed. Every customer wants to make sure his work is done at the first convenience. Knowing all is not learning. In the private sector. Whereas the branch is completely equipped and decorated with modern furniture and a pleasant internal atmosphere. not because we are not serving well. which really attracts the customers. This will not only save their time but will also motivate staff members to work more promptly. full of learning and most importantly full of professional working. Standing on the front steps of UBL Charsadda main branch. as they walk in. 4 . the real learning is to convey right. but here's something that's still unrealistic to the policy makers. As it perfectly suit the environment we are operating in. the best thing to me was the authority and dependency of customers upon me. Here 'professional' regards in all from clerical to managerial work. In these six weeks period. The line of unsatisfied customers is increasing. because if customer and employee engage into some unhealthy quarrel. when they come with a hope that I'm there to guide them through. I heard the good news of me having a six week opportunity to interact with a world class bank. see real UBL. We need to put in some guidelines for our customers.Chapter 5 UBL MAIN BRANCH CHARSADDA BACKGROUND OF UBL CHARSADDA The UBL main branch bank road Charsadda is considered as most active and productive branch of the city. it's because customers are not understanding the YOU attitude right. you attitude has helped UBL in capturing masses. and tried to comprehend the difference between what we look from outside and what is going on inside. All these six weeks were full of events. no doubt it’s a fast growing bank. that to get feel easy during their dealing with bank specially in rush hours. I tried to learn real. but they are not concerned about the responsibility with which every employee is working.

I worked in customer service department. as well as in clearing department. In my six week internship. Because of some work load. I was unable to learn much about other cash and accounting department.Back to my real learning. ORGANIZATIONAL CHART OF UBL MAIN BRANCH CHARSADDA Teller Source: Personal Observation 4 .

Accounts department deals in two types of registers. like commission from parties. Some of key functions are given under: Opening New Account Opening of new account is like a contract between the banker and customer. Remittance department. ACCOUNTS DEPARTMENT The function of Accounts department is to post daily activities of each and every section. rent expenses etc are to be posted in the expense ledger. all the development expenses of the bank including salaries expenses of the staff. Foreign exchange department. UBL main branch Charsadda briefed by its concerned officers during the internship are:     Accounts department. This section had been set up with a view to accept deposits from general public and which was also a central idea to create a bank. besides providing other required facilities and information to its customers. maintenance etc. It is just like a balance sheet. and also prepares the weekly and daily statements of the affairs of the branch. Every department is sending the detailed report of daily progress to the Account Department for posting the same in the cash book. It will not wrong to say that the banking starts from this section. Advance department. Accounts department also maintains the deposits. In the income ledger the transactions relating to the income of the bank are to be posted. also allowed the clean cash register. The transaction then will be shifted to their appropriate heads. which is at UBL main branch Charsadda is guided by the people under deposits. THE DEPOSITS SECTION The deposits are one of the most fundamental sections of any bank. FUNCTIONS OF THE SECTION: The deposits section carries out many significant functions. It is the 4 .DEPARTMENTS OF BRANCH The departments functioning at.

by allotting those numbers. etc. professionals. that make deposits and withdrawals frequently. The deposits and withdrawals can be made through cheques. These accounts are opened mainly by those customers whose banking transactions are not frequent and numerous. demands drafts. Types of Accounts Keeping in view the purpose and duration for which deposits are to be kept with the deposits section in the bank. These deposits represent current liabilities of the bank. The demand deposits are ones which are payable by the bank whenever demanded y the depositors. like purchase 4 . PLS Saving Accounts These are also one kind of demand deposits and are kept to develop the saving sense in the citizens of the country. Furthermore the businessmen. drawn on the branch.preliminary function of the deposits section to open various types of account. small traders. These accounts are completely exempted from withholding tax and zakat deduction. commission. So. The bank can not apply the proceeds of such expenses. • • The account holder is expected to maintain a minimum balance of Rs. Following are the types of accounts the deposits department opens.500/. Current Accounts These are running accounts and are opened by the individuals/businessmen. public institutions and groups. While on the other hand the deposits which are accepted by the bank under the condition that they will not be payable on demand but will be payable on a fixed or predetermined future time or date are called Time or Fixed Deposits. the bank has to keep sufficient funds in its hand to meet the requirements of the depositors of these deposits. so as to save small amounts for the small or big needs. Demand deposits and Time or Fixed his account or whatever the minimum amount is prescribed for the purpose. markup etc arising out of any dealing or services with the branch. This category includes current and savings deposits accounts. farmers and other salaried classes usually make such deposits. pay orders. the deposits can be classified into two categories. open current accounts. As these accounts are payable whenever the depositors demand and the Bank by accepting these deposits incurs the obligation of paying all types of orders to the extent of the credit balance in the depositor’s accounts. Lower and middle income groups. fees. who require money frequently.

The bank accepts these deposits with the purposes. demand drafts. The deposits are accepted for the range from 3 months to above. But the withdrawals are restricted to twice a week. These deposits represent such surplus funds of the depositors. cheques. car or house. and to help economy to grow. to make minimum profit by using the proceeds of such deposits. But after the islamization of banking system in 1985. refrigerator. From the bank’s point of view a considerably percentage of such deposits can safely be invested and the Bank need not keep larger reserves to satisfy the daily demand upon such deposits. to meet their entire banking needs. The bank can advance loan to businessmen out of these deposits because they are fixed for a particular period. to appeal customers by offering them a high rate of return. pay their utility and other bills out of their accounts. The profit is not paid on these deposits. under an agreement. Of course. but will be payable on a fixed or predetermined future time or date. telegraphic transfers. the higher is the rate of profit offered. But for the premature withdrawal of amount a prior notice to the bank is necessary. People generally deposit larger amounts of money in these accounts. As a result the bank earns maximum profit from these kinds of accounts. The bank needs not to keep greater reserves in respect of such deposits. the bank issues a deposit certificate (receipt).of television. The bank can. For the amount placed on the term deposit. the longer the period. the name of the depositor and the period for which the deposit is placed. its name has been changed from fixed to PLS Terms Deposit. and other such instruments. pay orders. (PLS) TERMS DEPOSITS The deposit which is acceptable by the bank under the condition that it will not be payable on demand. Being a deposit receipt it cannot be negotiated or transferred. Funds can be deposited frequently through cash. which are not required by them for sufficiently long periods. The bank can make long-term investments from the credit balances of such deposits. At the same time the bank pays the profit at competitive rates on such deposits in long period investments. overdraft facilities to the depositors are the main proposes of the bank by keeping such deposits. Providing banking investment with the proceeds of these deposits and providing. 4 . which states the amount received. is called fixed deposit. on the request of its depositors.

    Demand draft. Remittance department here consists of two major sections. the amount of the DD is credited to the favoring accounts and then he can transact in ordinary way through cheque. Open DD Open DD is one which is payable directly at the counter and there is no need of crediting to the account. Telegraph transfer. INLAND REMITTANCE: The term inland remittance means transfer of funds from one branch too another within the country through following banking instruments. the bank promoted the facility of remitting the funds within certain limits. UBL deals with two types of dd. Demand draft (DD) It is written drawn by one branch of a bank upon another branch of the same bank or upon branch of any other bank working with in the country under special arrangement to pay certain sum of money to or to the order of specified person. a. and fax is allied telegraph transfer.REMITTANCE DEPARTMENT According to concerned officer of this department. Mail transfer. Inland remittance. Telegraph Transfer (TT) Transfer of funds form one branch to another of the same bank or upon other banks under special arrangements for the payment to beneficiary. b. Pay order. Foreign remittance. 4 . telex. Cross DD Cross DD is one whose payment is done through account. through telegram.

In suspense account the party will have to prove identity. The travelers first pay the amount of money to the issuing bank. The Bank’s commission is fixed as 5% for any amount. Mail transfer are same as for telegraph transfer. There is option to change bank (name) But that bank’s branch should be in the same city. on this giving a proper discharge there on. Travelers cheque is an order drawn by the bank in favor of travelers upon specific bank to pay him specific amount on demand after proper identification abroad. UBL has also concentrated and improved. if geographic distance increase. in this case the sending branch will shift the amount to the concerned branch and advice will be sent to the other bank in which his account exists. well its foreign exchange operation as for the efficiency of its employees and customers satisfaction is concerned. The bank also provides foreign exchange in the shape of traveler’s cheques to intending visitors. Under foreign trade operations normal transaction starts with the sales contract where by the buyer tenders value and the seller goods. but if a person’s account is not existed in the said branch. FOREIGN EXCHANGE DEPARTMENT Foreign exchange department plays a vital role in the international trade of any country. The problem is furthered by the fact that buyer and seller belong to two different countries. which is responsible to pay the amount to the foreign bank upon which it is drawn. Thus in the first place they don’t know each other and in second place they cannot ascertain the risk involved and finally the problems are worsened by the fact that laws of the land differ in 4 . FOREIGN REMITTANCE The bank provides the facilities of foreign remittance to the domestic residential and foreigners to send money from one country to another. By realizing so. Pay order can be made for the branch of same bank with in the same city. There is a degree of risk involved in the exchange of goods against payment. Pay Order A pay order is a written authorization for payment made in a receipt from issued and payable by the bank to the person named and addressed there.Mail Transfer Transfer of funds from one branch of the same bank inside or outside the country through mail/courier service is called.

 Documentary collection. It may be dawn under sight or acceptance basis. ADVANCE PAYMENT The importer makes the payments in advance payment.  Documentary crudity. DOCUMENTARY CREDIT Documentary Credit reduces the risk attached to either importer or exporter hence an L/C (Letter of credit) is established by the issuing back on the request of importer and the L/C is sent to the advising bank in the exporter country which then collects the documents and sends them to the issuing bank provided they confirm to the terms and conditions of the credit which are then tendered by issuing bank of payment acceptance as per terms of the L/C. DOCUMENTARY COLLECTION In the documentary collection. first and goods are received later on. 4 .  Open account. Thus in the ordinary course of business. the remitting back sends the documents and the importer bank delivers documents against payment.each country.  Foreign Exchange Remittance Section. The United Bank Limited Charsadda foreign exchange Department is divided into the following sections:  Licensing section. OPEN ACCOUNT In the open account exporter sends the goods first and payment is made later on.  Import section. following four forms of transactions can take place in international trade:  Advance payment.

In this way the exports gets the double satisfaction of receiving the payment for goods from the confirming bank. provided he submits the shipping documents strictly in terms of credit. i. This credit becomes confirmed as soon as the advising bank at the request of opening bank confirms the credit to the beneficiary. takes the liability of paying exporters in case the issuing bank fails to make payment to the exporter. The main function of this section is to grant the registration to importers. Confirmed The exporter’s bank. Revocable Letter of Credit This letter can be modified or canceled by the issuing bank at any time without any obligation or its part. the confirming bank and the beneficiary. the bank through which the credit is negotiated does not give any guarantee to the exporter that the issuing bank will honor the bills drawn. Licensing Section Licensing section it working under chief controller of imports. Imports Imports can be defined as bringing any commodity good into a country from outside the country through any way or channel. All the imports are done through letter of Credit L/C which is an understanding or a letter of guarantee issued to the exporter by the bank on behalf of importer says defaulter the bank will pay and in case the exporter do not follow the terms and conditions of the L/C the bank will be liable to the importer. Unconfirmed L/C Unconfirmed letter of credit. which confirms the letter of credit. the opener. under the export and import act 1950 and the notification issue there under. TYPES OF LETTER OF CREDIT An “irrevocable letter of Credit” cannot be altered or canceled without the consent of all the parties. Foreign currency account section. In Pakistan imports are regulated by Ministry of Commerce. 4 . the opening bank. This letter is usually not acceptable to the businessmen.e.

B. Pound Sterling.E. 4 . The return on the scheme is up to 10% per annum.e. The restrictions imposed by State Bank of Pakistan for the opening of Foreign Currency Account in absence of passports. FTT. and Deutsche Mark. REMITTANCES IN FOREIGN EXCHANGE UBL provides the opportunity to his customers to transfer his money from one country to another.From exporter’s point of view the confirmed irrevocable L/C is the best form of receiving payment. work permit and resident visa have been withdrawn. Foreign Bearer Certificate may be deposited in these accounts. US Dollar. Traveler’s cheques and foreign currency notes can also be issued to the holders of the personal and joint account. Foreign currency account can be opened in four global currencies i. Remittances from abroad. Foreign currency account scheme was started from April 1991 in United Bank Limited under the name of “Prime Currency Account”. payable in foreign currency only. the customer must have an account in foreign currency in the bank. FMT. Japanese Yen. Clean L/C There these are no conditions attached to bill and the issuing banks makes payment up to the limit credit. FOREIGN CURRENCY ACCOUNT SECTION The section deals in foreign currency accounts. The foreign currency account holder can draw any amount of foreign exchange from foreign currency account and transfer or remit the amount freely to any part of the World without any restrictions. Rupee loan facility is also available against this account. FDD.e. The prime currency scheme is exempted from all form of taxes including income tax. UBL provides all modes of foreign remittance similar to local remittances i. The account can be opened in personal name or joint names by Pakistan residents or non-residents or non-residents foreign Nationals. The account will be restriction free. Travelers cheques foreign currency notes and foreign exchange generated by enchasing (F.Cs). wealth tax and zakat dedications. the letter is called a Clean L/C.

OTHER OPPORTUNITIES     Free from taxation. POUND STERLING. 500. to attract customer to deposit foreign currency even for short time. JAPANESE YEN.  Current.000. WHO CAN OPEN THESE ACCOUNTS?  All resident Pakistanis. 150. 4 . CURRENCIES     US DOLLAR. 2000.UBL FOREIGN CURRENCY ACCOUNTS DETAILS (PRIME CURRENCY ACCOUNTS) TYPES  Saving. Free from deduction of Zakat. Free from any sort of questioning regarding the source of funds. MINIMUM AMOUNT OF DEPOSIT     US DOLLAR POUNDS STERLING JAPANESE YEN DEUTSCHE MARK 1000.  Charitable trusts. so UBL introduced this scheme in Nov. 1993. DOLLAR KHUSHALI ACCOUNT Long-term investment in foreign exchange was not so attractive.  Resident Companies locally incorporated. DEUTSCHE MARK. Free from restriction of remittance.  Foreign companies.  All non-resident Pakistanis.

Firms and companies. Free from Zakat. All resident Pakistanis. Advances department is lending loans to individuals.The minimum amount for opening of this account is USS 100/. The time period for this scheme is from 3 to 36 months. Opportunities i. Who Can Open This Account Scheme i. beyond this limit the head office will be sanctioning authority. The yearly interest rate is 18.2% the repayment of the 4 .or equivalent in other acceptable currencies. zonal office can sanction the loan up to 3 lakes. All Nonresident Pakistanis. The mark up will be charged as 51 paisa per thousand on daily product basis. iv. Free from deduction of Zakat. General Manager of the circle has the power to sanction the loan up to 1 million. It provides the following finances. ADVANCES DEPARTMENT As told by the concerned officers of this department. ii. Charitable trusts. It provides loans for agricultural and industrial development. iii. The minimum amount of investment is USS 200 or equivalent in other acceptable currencies. RUNNING FINANCE It is provided only to the current account holder. The profit on this account is given on daily basis. Free from taxation. ii. Who can open this account? i. PRIME CURRENCY FIXED DEPOSIT RECEIPTS This scheme was introduced in 16th Oct 1991. The loan can be granted on personal guarantee or any thing tangible that is acceptable to the bank like stock property must be ensured by the party. Corporations etc for different purposes. ii. All resident Pakistanis. Companies.

If the amount is exceeding Rs.000 and have served for at least 3 years. 160.000 rupees.000 the 10% interest rate will be charged.000 the 10% interest rate will be charged. the loan is called general loan. UBL can arrange over draft upto 25.000. Temporary Overdrafts This type of facility is totally under direction of the branch and requires no security. PLS Account holder can also take the loan after meeting with all the requirements and standard set by the bank for financing. Where UBL also permits to its staff members for getting loans when needed for the following purpose. This type of facility is provided occasionally and for short term. and Personal Vehicle The car loan may be granted to those employees whose minimum basic pay is at least Rs. 4 . either clerk or an officer will be granted 80 basic pays as a loan for building house. House Building The employee having served for 5 years in the bank. and will charge interest on the amount over drawn. The maximum Motor Cycle Loan is 56. In this case the officers of above Grade will pay 5% interest. If the granted loan exceed Rs. 160. OVER DRAFTING (OD) UBL gives the facility of drawing more than the balance to the reliable and established customers by over drafting we mean that drawing more than the balance held with UBL. DEMAND FINANCE. but the State Bank of Pakistan fixes the limit. There are three types of over drafts. Motor Cycle Car. The employee will be granted 18 basic pays as loan. The mark up will be charged on the expiry of the scheduled date of loan. 10. The repayment of the loan will be made in monthly equal installments. STAFF FINANCE. In running finance the loan up to 3 lakes is called commercial loan beyond will be made from time to time. After over drafting the bank will show debit balance of the customer. The rules in demand finance are same as for running finance.

C. Credit Management Division of Head Office sanction is the sanctioning authority. When the importer pays the amount to the bank he will get goods. Finance Against Imported Merchandise (FIM) It is a short-term facility provided to such importers who are not in a position of paying and clearing documents due to un availability to funds for the time being or lack of finance against L. 4 . In such cases the importer makes arrangements with UBL. No security is required in this case. the bank pledges the imported goods and pays the obligations against L.Secured over draft It is continues facility and the branch cannot provide it under his own discretion.C. Clean over Draft It is a continuous facility and its limit is fixed by the State Bank of Pakistan.

Recognition of critical condition and need for Drastic immediate change. for employees. 4 .1 1) 2) 3) 4) 5) 6) Strengths The largest private sector bank in Pakistan with a network of 1100 domestic and 19 foreign branches. Pioneer in introduction of UBL Master Card and RTC. Easy access to the customers at their residential localities through a large number of branches. UBL has a brand name and recognition. 7) 8) 9) 10) 11) 12) UBL instant financing products for customer wanting instant loan facility at UBL branches. now become the leader in market with largest on line ATM network with 214 ATMs in 60 Cities in the country.Chapter 6 ANALYSIS 6. Best and optional policies and attractive compensation packages. Attention and sensitivity to competition prevailing in the country. Bank’s emphasis on consumer banking by providing them with innovative saving schemes. towards the accomplishment of banks objectives. which minimize the degree of riskiness. products and services suiting best to their life style. First bank to privatize. Extension and improvement in services to domestic as well as foreign customer. which has really improved their commitment.1. which has. which plays a very important role in organization’s success. dedication and hard work.1 SWOT ANALYSIS 6. UBL has long-term vision.

13) 14) 15) It is well aware of the Market and adopts strategy according to the competitor’s strategy. among the employees is found. A sense Insecurity of jobs. Network Financial weaknesses i.e low morale due to following factors: Under compensation No accountability No development Political interference No database Untapped markets No marketing of advances No training for advances in-charge.1-2 1) 2) 3) 4) 5) 6) 7) 8) • • • • • • 9) 10) 11) Weaknesses Customers having account. UBL has now started Mobile banking. No. The current customers list of UBL is very large and having a large number of deposit. Of branches is decreasing because of low profitability. Experienced but old staff. 4 . which is definitely a truly innovative product and according to the needs of the customers. with the down sizing. Not many advances to agriculture sector and small and medium enterprises. 6.e excess operating cost Human Resources i. who are not aware of using modern technologies/ equipments? Political pressure from vested interest group selection. A very small foreign. with small amounts are not given some services and dealing to those with high accounts.

tele-bank and Internet banking efficiently. if they expand its ATM and branch network to other countries of the as well. export/ import sector. They can capture a large portion of the market.1-3 1) 2) 3) OPPERTUNITIES Due to largest ATM network. UBL can open women branches. 6) 7) 8) 9) future 10) Stronger position to recover bad debts Benefits from incoming expertise and competition. 4 . Increasing focus/target on different types of customers. Launching of new products like Mala Maal and Cash Card etc type of product in To open overseas branches through out the world like National Bank and HBL or merger with other foreign banks outside Pakistan. 4) Growing policies of government on business and commerce sector provides UBL and opportunity to efficiently meet with the business people’s requirement of instant cash and financing facilities. UBL can expand its 24 hours cash facilities to the far off cities of the growing market demand. 5) UBL has also an opportunity to expand its new technological advancement like. 11) 12) New schemes should be introduced to finance commodity operations. especially in those areas where women class want to get involved but couldn’t due to environmental restriction. The formation of new and energetic marketing teams can increase the disbursement of loans and new customers can be searched out. Focus on small business.6.

Strict regulations by the government over credit facilities to the customers as to meet the prudential regulations.6. 7) 8) 9) 10) 11) 12) 13) Loss of confidence of the customers due to freezing of accounts Rising customers expectations Concentration risk is involved with the credit department.1-4 1) 2) 3) 4) 5) 6) Threats Increasing foreign banks in the country. Growing global technological advancement. Slower economic growth rate of the country. 4 . Return of deposits is very low. GNP and GDP rates are low and so the saving are low. Privatization of other domestic banks has also increased their services. Inflation rate is high. Un-consistency in government policies regarding to business and economic sector. Highly specialized and attractive services provided by foreign banks to their customers.

makes inter-firm comparison possible and helps in investment decisions. Ratio analysis is an important and age-old technique of financial analysis. However the information provided in the financial statements is of immense use in making decisions through analysis and interpretation of financial statements. They play a dominant role in setting the framework of managerial decisions. Only internal comparison of the ratios has been made as the ratios for other banks are not available as well as time was also limited. The UBL provides this information in the shape of its annual report for every financial year containing financial as well as non-financial information. Financial statements are prepared primarily for decision-making. The various stakeholders of business are all interested in the analysis of financial statements. In this section. Financial statement analysis is the process of identifying of financial strengths and weaknesses of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account. of UBL has been computed only. It simplifies financial statements. But the information in the financial statements is not an end in itself as no meaningful conclusions can be drawn from these statements alone. helps in planning.2 Financial Analysis Financial analysis of the organization involves the evaluation of the financial performance as depicted in the financial statements of the organization. we analyze the financial ratios of UBL computed by utilizing the information given in its annual reports of the years 2009-2010.6. Due to the non-availability of financial information of other entities of the banking sector. 6.2-1 Ratio Analysis Ratios are used to measure the comparative performance of any organization with the industry. But the focus of interest of all is not the same. 4 . the ratio based on the financial figure for three years.

Up returned/ interest earned Gross profit ratio may indicate to what extent the selling prices of goods/ unit may be reduced without incurring losses on operations. Gross profit is the ratio of Net expresses the relationship between gross profit and sale.Up returned/ interest earned expressed as a percentage.2-1 PROFITABILITY RATIOS These ratios the company’s effectiveness at generating profits. Gross Profit Margin = Net M. It reflects the efficiency with which a firm produces its products Gross Profit Margin of UBL Description Gross Profit Margin 2009 61 % 2010 76 % Ubl Gross profit ratio shows the efficiency of the business. higher the gross profit ratio higher the efficiency of the bank. which are: Gross Profit Margin Gross profit ratio is the ratio of gross profit to net sales expressed as a percentage. In 2009 the Ubl gross profit ratio is 57% and in 2010 the gross profit ratio is 76% which is much sufficient then 2009 and recover all the operating expenses which show the efficiency of the bank.Up/ interest income to M. It mean bank is in a better position. Gross Profit Margin Years 4 .6. There are two types of profitability ratios.Up/ interest income x 100 M.

It is also expressed as a percentage.8 % 4 . Return on Equity = Net Income . Years 3) Return on Equity Another measure of overall performance of a company is Return on Equity (ROI).UP/ return/ interest earned after all expenses have been paid.The net profit margin measures the profit that is available from each rupee of M.5 % 19.Net Profit Margin The net profit ratio is the ratio of net profit (after taxes ) to net sales.Up/ return/ interest earned Description Net profit Margin 2009 28. It shows the profit as a proportion of the book value of common stock shareholder’s equity.38 % 2010 31. Net Profit Margin = Net income x 100 M. Net Profit Margin also increased in 2010 but with a little margin as compare to NPM. x 100 Shareholder’s equity Return on Equity Description 2009 2010 Return on Equity 19.79% in 2010.79 % Like Gross Profit Margin. GPM increased to 31.

The ROE in 2010 has increase to 19.7 The table shows that ROI of UBL has shown improvement in 2010 because of increase in net profit margin of UBL. ROA is also called return on investment (ROI). Years 4 .5 2010 1.8% as compared to previous year. Years 4) Return on Asset This ratio measures the profitability per rupee of investment in assets. Return on investment = Net income x 100 Total assets Return on Asset Description Return on Assets 2009 1.

6. 1) Current Ratio Current ratio may be defined as the relationship between current assets and current liabilities. It shows a firm’s ability to cover its current liabilities with its current assets. Years 2) Total Assets Turnover Ratio This ratio is calculated by dividing M. This shows the relationship of net sale to total assets. Current Ratio = Current assets Current liabilities Current Ratio Description Current Assets 2009 0.UP/ return/ interest earned on total assets.75 The current ratio of UBL shows a slight change in 2010.UP/return interest Asset Turnover Ratio = M. which shows effectiveness of management to maintain the ratio throughout.5 The total asset turnover ratio tells us the relative efficiency with which a firm utilizes its total assets to earn M. One of the two most commonly used liquidity ratio is current ratio and the other is quick ratio.2-2 LIQUIDITY RATIO Liquidity ratios measure the short-term solvency of the firm.UP/ return/ interest earned Total Assets 4 .71 2010 0.

096 2010 0.the total assets in 2010 have increased while the revenues decline in 2009 which results in low asset turnover ratio.082 The UBL asset turnover ratio decreased in 2010 as compare to 2009. Asset Turn Over Years 4 .Total Assets Turnover Ratio Description Total Assets Turn Over Ratio 2009 0.

2-3 LEVERAGE RATIOS Financial leverage is the extent to which a company is financed with debt.89 There is a slight change in the Debt ratio of UBL in 2010 as compare to 2009. One of the most traditional ratios is times interest earned ratio. This value shows that 0.03% of the UBL assets are financed by debts.6. them. 1) Debt Ratio Debt ratio shows the fraction of the company ‘s assets that is financed by debts.6 4 . Leverage ratios measure the amount of financial leverage. These ratios are Debt ratios and Debt to Equity ratios. This ratio can be obtained by dividing the firms total debts by its total assets. or cover.86 2010 0. Debt Ratio = Total Debts Total Assets Debt Ratio Description Total Assets Turn Over Ratio 2009 0. Debt Ratio Years 2) Coverage Ratios They are designed to relate the financial change of a firm to its ability to service.

24 2010 0. It shows that income expense is higher than earning.69. It increased from 0.Times Interest earned ratio = Profit before taxation Interest expenses Coverage Ratios Description Coverage Ratio 2009 0.24 to 0.69 The interest coverage ratio of UBL has increased in 2010 as compare to 2009. Years 4 .

The performance of UBL shows growth in 2010 but still there is a lot to be improved. is the bad debts written off which is too high in 2010 and should be maintained low. Another component. which need to be properly maintained. and is major expense shown in the income statement. but the problem is to maintain its level the same in the forthcoming years.6. After analyzing the income statement and balance sheet and finding out other ratios of UBL it is concluded that it has able to keep its gross profit margin and net profit margin high but in real both of them should be inversely proportional. There are some weak points associated with the analysis. 4 . which rise up in 2010 over the past years. the provision for non-performing loans is not created in 2010. which need proper attention. The increase in operating expenses. Still we must acknowledge that UBL has taken over its competitors in the performance race in 2010. as it constitutes the main source of funds which a bank can advance. a balanced sheet item showed a decline in 2010 which are not a good sign for the bank. However. as it always do in the past.3 CONCLUSIONS OF FINANCIAL RATIOS Financial ratios are the basic instruments/ means through which the performance of the company can be judged. Deposit.

Since in UBL there is overlapping of functions. 12. All the departmental heads should be given clear authority and responsibility. cost and benefit analysis should be viewed. 5.e. UBL should take care while conducting marketing research and adopting new policies and procedures for getting its marketing share regarding advances. clear cut division of work should be introduced. There should be clear-cut delegation of authority and responsibility. 10. 2. Co-ordination can be improved amongst different departments by adopting proper channels of communication. so as to ease the customers. 8. Proper sector wise loan should be disbursed in order. 11. A secure system for transfer of money should be established and with out the receipt of legal document no payment should be made. to reduce cost. Proper survey and research should be conducted before the introduction of any new schemes i.1RECOMMENDATIONS FOR THE OVERALL FUNCTIONING OF UBL 1. 3. 4. The test key codes should be revised from time to time and should be kept secret. 15. UBL should adopt once again aggressive strategy because the number of its competitors is increasing day by day. 4 . While credit extension prudential regulations should be kept under consideration.e. Prolonged documentation should be avoided. 7. the management should adopt some management principle i. Loan procedure should not be cumbersome and should be made easy. and all those departments should be amalgamated whose functions are similar. In order to mitigate inefficiency. therefore each department should be functionally defined.Chapter 07 RECOMMENDATIONS 5. 14. 16. The communication system of the bank should be improved by installing new equipments. The existing policies should be reviewed and there should be permanent revision of these policies from time to time. 9. 6. so that every sector should get appropriate portion and all these sectors should simultaneously develop. 13. The advances department should be made free from political influence in order to enable the deserving persons to get the loan. proper job.

Before transferring a person to a place.17. 25. so that they should know about all departments. 26. 19. which are present in their system. There should be proper training (Up to date) for newly selected employees. 23. 5. 20. Transfer for punishment purpose should be avoided because it not only disturbs the prevailing branch conditions but it also affects employee's efficiency. Salaries should commensurate with job. Foreign exchange should be equipped with modern ways. so the responsibilities of these persons should be clearly defined for which they will be asked. 30. in this way a proper coordination could be achieved. it should be replaced by promotion so that the new highly qualified person can get promotion. There should be interdepartmental transfer of employees. his qualification and experience should be matched with responsibilities of the post. but all those who re the members of union do not attend the bank in time. so as to receive foreign currency rate within due lime. Recommendations are given below: • Improvement of working condition 4 . and the HRD should be fully free from any influence of higher authority and Staff Union in conduction of tests and in the selection of candidates. 24. and adopt whatever better and new. by in time delivery and receipt of the credit claims.2 RECOMMENDATIONS FOR THE SPECIFIC BRANCH Based on my research I would strongly recommend specifically to the UBL Charsadda some practical solution to the problems. for this purpose a proper job analysis system should be introduced. More over the transfer should be made free from union influence. In UBL President and General Secretary of Staff Union are exempted from duties. 22. On passing IBP MC13 give only cash prize and advance increments. 21. UBL should also send employees for training and seminar arranged by other banks. The process of bill collection should be made faster. 29. so that they can compare the procedures adopted by other Bank. 27. There should be refresher courses for officers then to tackle marketing complexities. Recruitment in the bank should be made purely on merit basis. The bank should prefer tangible securities before advancing loan. 28. 18. The bank should take care that the loan that it has advanced is being utilized for the purpose for which it is advanced.

which is going to benefit them in the long run. They can have enough land as per their requirements. is essential for the daily operations of any organization. To eliminate this problem they can take the following steps. the building is not furnished and decorated. This all will cost them not more than RS 20-25 lacks. And the customer should be asked about their expectations from the bank.2. They are just the staff members and treat one another formally. Only what he needs to do to arrange get together parties amongst them on regular bases not only 4 . The employees should be asked what sort of working conditions they would like to have which they think would facilitate their function. Proper facts can be only obtained through proper research which takes some time and was not possible for me to conduct it in the short internship time but still what I found while being there I will point out points as follows. The bank should purchase land for the construction of their office. and as UBL is a financial institution having enough funds available can afford this project. After purchasing the land they can hire the services of a construction consultant to design building according to their requirements. 5. To solve this problem the bank chief manager can play a vital role. To have information about their requirements they need to conduct a proper research. Anybody when enters to bank does not feel comfortable because physical outlook of the bank is worth pity and so congested. The data for the research should be collected not only from the employees of the bank but also from the customers of the bank. Glass covered cabins should be made for each employee and it should be designed in such a way that customers can access them in a convenient way.2. Based on the facts obtained the consultants should be asked to design building for them.• Improvement of interrelationship b/w employees • Improvement of communication • Reduce the tension of the employees how to implement these recommendation can be like as given below. which I think. The land is available not very far from their existing office. 5.2 Relationship Between the Employees Relations between the employees are not satisfied. The estimated cost is Rs10 lacks for the area of 5 Marla. They don’t have any relation of as such friendship. where they can build building according to their requirements and modern standards.1 Improvement of Working Condition The working conditions of UBL Charsadda are not up to the standards.

even some time they are so exhausted that they don’t want to talk to one another and a kind of cold war stars between them and instead of giving attention to their bank job they try to embarrass their colleagues which is going to adversely affect the performance of the bank. 5. This will cost them not more than Rs150. by this they will come close to one another and hence become friends. 5. In bank timings they are so busy in their bank activities that they don’t find even a single minute to sit with one another and relax. 000 for installation and Rs10000 per month for maintenance and operation.3 Communication Being the leading bank the UBL should give attention to the improvement of communication amongst the employees. this will require him to go their seats regularly and discuss not only their routine problems but also their personal problems and cooperate them in the best the free timings of the bank but also outside the bank which will provide them an opportunity to sit with one another and discuss the problems of one another .4 Tension of Employees What I have felt while being there with them. Viewing the financial position of the UBL it is too little amount for them.2. 4 . that the employees are under unnecessary tension. But this well benefits them more through improved services. They are always afraid that they might commit some mistake and will be scolded by the chief manager if not punished in terms of transfer or even suspended. Hence it is very essential for the chief manager to improve their relationship through regular get together parties and discouraging informal groups between the employees. For this purpose they can install their own little telephone exchange in their own branch. In order to remove this problem the chief manager should keep a friendly relations with the employees of the bank and should be more democratic than authoritative.2.

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