UBL Internship Report

EXECUTIVE SUMMARY
The banking sector in Pakistan comprises of the following types: State Bank of Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving Banks, Cooperative Banks, Specialized Credit Institutions. The S.B.P. is the Central Bank if the country and was established on 1st July, 1948. On November 7th 1959 United Bank Limited appeared on the banking horizon in Pakistan and started operations with its first branch namely McLeod Road now I.I Chundrigar Road at Karachi. Today UBL has 1056 Domestic and 15 Overseas Branches. UBL was nationalized in 1973 but it is privatized in 2002 as Govt. handed over the management of UBL, the third largest party of the country, to the successful bidder -Consortium of Abu Dhabi Group (UAE) & Best way Holding Limited (UK) as they have purchased 51% shares and have elected H.H.Shaikh Nahayan al Mubarik as Chairman UBL. On May 18th 2004 Mr. Atif Bokhari was appointed as anew CEO of UBL. To open an account the customer has to meet the manager with an introducer. Individual, Joint, Partnership, Private Limited, Public Limited, Sole proprietorship and Minor accounts are the types of accounts. Different documentation is required for each type of account but the application form is same for all types of accounts. In Deposits department actual relationship is started with the bank, that relationship is in the form of deposits or the accounts that are opened in the bank. At UBL, customers can deposit in the form of current, saving, call, term and fixed deposits. Main difference between current and saving is of the profit that is provided only on saving account to the customer. In Cash department the main activity is of payment and receipt of cash and facility of utility bills collection is also performed at the counter of cash department. A cash book balance is maintained at the end of the day that is been provided in the form of statements that can be got from the computer. Accounts department is responsible for
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all the activities happening inside the branch in the form of any transaction whether it is for the customer or for the employees to provide them with utility services. In Remittance Department like any other bank UBL also have instruments for transferring of money like Pay Order, Demand Draft, Mail Transfer, Telegraphic Transfer. For remittances UBL provided many services namely TezRaftar, Money Gram and Click N Remit. As for as there Foreign Exchange Deportment is concerned its activity is handled at the central branch as they have a department their and they provided the many services to the importers and the exporters in the trading of products. Preparation of LC on behalf of importer for the exporters and its bank is the main activity that is perform in the department. The main activity of the Central Branch, Hussain Agahi Branch is to Advance the money that was collected in the form of deposits. They deposit money at low rate and advance it at high rate to earn the margin of profit. Financing can be made in the form of cash finance, demand finance, bridge finance, consortium finance, agriculture finance etc. Security is of utmost importance in this area and security can be like mortgage, pledge, hypothecation of stock, raw material or the guaranties and bankers lien. With their step in the field of customer financing like house and car financing and their services of Hamrah Rupee Traveler check, UBL Wallet (ATM card) and their online system of UBL-ONLINE it has been viewed that they will make tremendous achievement in the days to come. In my view UBL has faced some hard time but after its privatization and its response to the changes in sector they will achieve what their ultimate goal is.
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Chapter 1
OVERVIEW OF BANKING
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 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
Internship Report
Introduction To Banking
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 number 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 4 Internship Report
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.
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FUNCTIONS OF A COMMERCIAL BANK

In general terms the functions of a commercial bank can be classified under the following main heads.
1. ACCEPTING DEPOSITS
Some people have an excess money and they want to deposits it to some honest man or an institution which can give them some profit. So the first function of commercial bank is to receive deposit there are three types of deposits. i. Demand Deposits or Current Deposits Some people deposit their excess money in the current accounts and they can withdraw their money deposited in this account at any time during the banking hours, so bank is not ready to give interest on it. ii. Fixed Deposits These deposits are fixed for a particular period. Commercial banks also pay an interest on these accounts. An important thing related to it is the varying interest rates for the different period deposits. Interest rate increases with the increase in the fixed deposit period. iii. Saving Deposits To create the habit of savings, bank accepts the saving deposits and pays an interest on these deposits. And this rate of interest is greater than the demand deposits.
2. ADVANCING LOANS
Bank also advances the loans to the merchants and charges the interest. It is the major source of its income. It also issues the loan for short term, medium term and for long term. And bank receives the higher interest from the borrower for the long term loans offered.
3. DISCOUNTING OF BILL
Commercial banks also discount the bills and facilitate the business; for example one businessman purchases anything from another person and promises to pay after one month. The seller will write a bill to the buyer and there will be an order that after one 6 Internship Report
month the buyer will pay the amount to the seller. Buyer will sign on the bill. In other words buyer will accept the responsibility of that amount. If seller is in need of money, he will take it to the bank and will receive the money by discounting the bills. The commercial bank also may rediscount it from the central bank.
4. CHEAP MEDIUM OF EXCHANGE

By issuing cheques and drafts bank provides cheap, medium of exchange.
5. TRANSFER OF MONEY
The commercial bank is very helpful in transferring the money from one place to another by issuing the drafts. This is very popular concept in the modern world and widely used in the business community.
6. CUSTODIAN OF PRECIOUS ARTICLES

Banks also provide lockers for the safety of precious articles. So now everyone can secure his precious metals like gold, silver, etc., and bank charges a very nominal charge for this facility.
7. AGENCY SERVICES
Commercial Banks also perform the duty of an agent. It collects and pays on the behalf of the customers.
8. INVESTMENT
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.
9. CREATION OF CREDIT
It also creates and extends the volume of credit.
10. FACILITATING TRADE ACTIVITIES

It also provides the finance to the foreign trade. Letter of credits are issued by the commercial banks for the foreign payments.
11. PURCHASE AND SALE OF SECURITIES

The commercial bank purchases and sells the securities, for itself and sometimes on the behalf of the costumes.
12. ACTING AS A TRUSTEE

If a client directs his bank to act as a trustee in the administration of a business, the 7 Internship Report
bank performs this responsibility.
13. HOME SAVING ACCOUNT

This type of account offers the facility to the account holder to save money right home and put in the locker provided by bank. The key of the locker remains with the bank that sends its officer every week to collect the amount from the locker. Now this facility is no longer in practice. PLASTIC MONEY The plastic cards that can be utilized as money are called the plastic money. For instance, a. Debit Card b. Credit Card c. Charge Card a. Debit Card In this card facility the account holder can only utilize his own amount kept in his deposit. ATM (Auto Teller Machine) card is the example of debit card. b. Credit Card In this case the customer has not much amount in his or her account but the Bank gives him facility to over draft (OD) up to the maximum limit of 5 lacs depending on bankcustomer relationship and the market value of that person. The banks are sole agent of American Express. Credit Card is the loan facility which is given on only personal guarantee. If a customer is a salaried person then the bank issue credit card facility up to three times of his or her salary. Suppose a persons salary is of Rs. 23,000/-. Then the bank will give him credit card of Rs. 75,000/-. But each bank has different criteria in issuing any facility. Annual charges are charged on this facility. And charges are on the basis of limit of credit card. More the limit of credit card, more would be the charges on it. If the customer repays the over drafted amount to the bank within a month then the bank does not charge the mark-up on it except of annual charges. Other wise the bank will charge the mark-up on daily basis but annual charges are also have to pay. This is a Clean Loan or Clean Facility (a loan without any tangible security). Because here only personal guarantee is involved. 8 Internship Report
c. Charge Card it is same to the credit card. But the only difference is that the charge card is not a Clean Facility. Because the bank gets the property under lien or mortgage against this credit facility. NOTE All these three cards are used in that hotels, shopping malls and transport offices where there is the facility of Merchant Arrangements. Merchant Arrangements means the shops to which the bank has online contact. Different banks have the different Merchant Arrangements. The shop keeper enters the password into the machine and get the account information of the card holder and debit the amount in card holder account and credit it in the shops account. MOBILE BANKING In mobile banking the customers can do all the transactions sitting in their homes by using internet. In this type of banking first of all you have to open the website of the bank in which you have the account. Then you have to give a password to enter in the data base of the bank.
ROLL
OF
COMMERCIAL
BANK
IN
THE
ECONOMY
DEVELOPMENT OF PAKISTAN:
Banks play an important role in the economic development of country. If our Banking system is not in accordance to the economic requirement then how it can play a vital role in our developments. The State Bank of Pakistan is at the apex and all the commercial Banks have to follow the rules of State Bank of Pakistan. Role of the banking sector can be judged by the following facts: SAVING MOBILIZATION: The commercial Banks namely United Bank Limited Pakistan, Habib Bank Ltd, Allied Bank Of Pakistan Ltd. & National Bank has opened Branches in urban areas & rural areas to mobilize savings of people. FINACCING OF DEVELOPMENT PROJECTS: Banks & other financial institutions like ADBP, IDBP, and PICIC etc. Advances short & medium terms loans for financing of the development projects both in the private & 9 Internship Report
public sectors .So they helping to accelerate the rate of progress (Economic) in the country. ENHANCING TRADE ACTIVITIES: The credit institutions collect the savings of people & make them available for facilitating the trade activities both inside & outside the country. CREATING CLIMATE FOR CAPITAL FORMATION: A developed baking system stimulates the growth of economy by creating favorable climate for capital formation in the Country.
HELP OF STATE BANK OF PAKISTAN IN ACHIEVING MONETARY PUBLISHES: Commercial Banks under the supervision & guidance of the S.B.P help in implementing & achieving the objective of monetary policy, which vary from time to time. ASSISST IN PLANNED DEVELOPMENT: Commercial Banks are profit-seeking enterprises. In order to maximize profit they have the incentive from S.B.P to maximize the limit of finance. An organized Banking system keeps balance between the liquidity * profitability, thus assists in the planed development of the Country. PROFIT SHARING SCHEME: Commercial Banks receive surplus balance of the households and business & pay interest on the deposit of client. The depositors instead of having a fixed return on the deposit will share in the profit & loss of the Bank. The profit & loss scheme arrangement is the alternative to interest, under an Islamic economic system, which is since on the experimental basis in Pakistan.
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Chapter 2 INTRODUCTION OF UNITED BANK LIMITED

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 31 st 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 privatized. 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 11 Internship Report
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 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. FUTURE STRATEGY 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, branded as UBL Wallet. 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 12 Internship Report Habib Bank Ltd. He was also a member of the HBL
objectives. CATALYST OF CHANGE UBL emergence proved catalyst and brought changes in the banking sector as a whole. The Bank-Consumer relationship attained a new dimension and courtesy, politeness and efficiency gained fundamental importance. Convenience for the customer remained a core and criterion for this relationship. UBL initiated the scene in the office and branches redesigned and modernized. INETRNATIONAL OPERATIONS After achieving dynamic progress domestically, the Bank took a basic decision to make its presence felt Internationally and to cater to the needs of importers and exporters as well as its shares in the international market, foreign trade, UBL opened its first branch in 1963 in London (UK), the most important center of the international finance and trade. The UK operations of UBL were closed during the year 2002 and along with the branches of National Bank of Pakistan a new bank namely Pakistan International Bank has been incorporated in UK with 55% share holding of UBL. In Oman the share holding in Commercial Bank of Oman was withdrawn however an exchange company namely Oman United Exchange Company a joint venture was formed in 1983. The bank has also withdrawn its share holding the United Saudi Commercial Bank, Saudi Arabia as well as United Bank of Lebanon and Pakistan SAL. The UBL global network with its strategically located overseas branches and affiliates, covering almost all major financial markets of the world, is well positioned to act as a correspondent bank for Pakistan and currency transaction. With its strategy to reach its customers in various diversified markets across the globe, UBL is progressing fast in the arena of cross border ventures with an appetite for commercial and country risks. To meet the required international standards of modern banking UBL is the first Pakistan bank to shift its international division from Karachi to Dubai. At present UBL and its subsidiaries are:
United Bank Ltd. Pakistan International Bank Oman United Exchange Co. United Bank Ag-Zurich United Assets Management Co. Ltd. United Executor and Trustees Co. Ltd. United Bank Financial Services (pvt) Ltd. READY FOR 21ST CENTURY
Holding Company Joint Venture Joint Venture Subsidiary Subsidiary Subsidiary Subsidiary
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. REORGANIZATION OF DOMESTIC OPERATION 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. The quantum of work immensely increased due to the growth of economic activities and phase of industrialization and other change in Punjab and Sind. It was also considered necessary to improve the quality of advances and to expedite the recovery process of the loans and advances. Beside above the economic condition of the country also changed due to privatization policy, establishment of a number of new private banks as well as expansion for operations by the foreign trade and banks in major cities. 14 Internship Report
For above changes, high power committees constituted by the Govt., which recommended structural, and other reforms, the details of which are received from Pakistan banking council are follows: FORMATION OF REGIONAL HEADQUARTERS The provincial chiefs of Punjab, Sind, NWFP, and Baluchistan are ceased to function and in their place nine regional chief executives started functioning in the nine major cities. The new segmentation of UBLs branches on the basis of regions can be looked from the following: PROVINCE WISE REGION ALLOCATION
Province/Area Sind Do Punjab Do Do Do NWFP Baluchistan Azad Kashmir
Region Name Karachi Hyderabad Lahore Faisalabad Multan Islamabad Peshawar Quetta MuzafarAbad
Domestic Network of Multan Region
Multan Region Head Office Multan Bahawalpur Dera Ghazi Khan Rahim Yar Khan Sahiwal Vehari
225Branches 1 48 38 36 32 38 32
COMMUNITY SERVICES
UBL is committed to the welfare of Pakistan. It lends to farmers for the purchase of tractors, superior quality seed and fertilizers. UBL further fosters the individual welfare and well being of the common man by lending house building finance and loans to set up small businesses. UBL has played a leading role in the dissemination of Computer Technology in Pakistan and is dedicated to the promotion of sports. Agricultural Loans Small Business Scheme UBL Computer Training Institute Staff Colleges of UBL UBL Sports Complex
AGRICULTURAL LOANS 16 Internship Report
UBLs agricultural loans on easy terms and conditions to small-scale land owning farmers boost the countrys economy and yield greener harvests. UBL enables farmers to buy good quality seeds, fertilizers, pesticides and agricultural implements. SMALL BUSINESS SCHEME Under the Small Business Scheme, UBL is providing loans on easy terms to those who wish to set up their own small-scale business. This scheme is aimed at spreading prosperity in the country by reducing unemployment. As more and more people start their own industrial units, the country will move steadily towards economic self-reliance. UBL COMPUTER TRAINING INSTITUTE UBL is a pioneer in the computerization of banking in Pakistan, and now plays a leading role in the dissemination of Computer Technology in Pakistan and is proud to be a part of the Governments Computer Literacy Program aimed at preparing the younger generation to meet the challenges of tomorrow. UBL, the leading user of Computer Technology in the Banking Sector has set up most modern facilities at Muzaffarabad, Azad Kashmir, and Sheikhupura for imparting training to the educated youth under the Governments Computer Literacy Program. These centers are equipped with state of the art hardware and audio-visual aids and are manned by experienced professionals. STAFF COLLEGES OF UBL The UBL has three staff colleges, which are generating banking trained personnel. These colleges are at Karachi, Lahore and Rawalpindi, established in 1964, 1978 and 1977 respectively. These staff colleges are providing facilities of training to the employees of the bank so as to meeting the growing need of the banking field and coping with the changing environment of the country. UBL SPORTS COMPLEX In addition to providing professional banking services, the bank continued to play an important role in the promotion of sports in the country. Towards this end, the bank has already constructed a big sports complex in Karachi, where all types of facilities for sports like cricket, hockey and flood light courts for tennis and basketball have been provided.
Chapter 3
Organizational Structure
ORGANIZATIONAL STRUCTURE OF UNITED BANK LIMITED Organization Chart at Branch Level
Area Manager (A.M)
Internal Audit
Branch Manager or Area Operational Manager
Credit Committee
Customer Deposit
Cash & Clearing
Bills & Remittances
Marketing
Advances
Accounts
I.T
Foreign Exchange
Management Hierarchy
President
Senior Executive Vice President
(SEVP)
Executive Vice President
(EVP)
Senior Vice President
(SVP)
Vice President
(VP)
Assistant Vice President
(AVP)
Officer Grade 1
(OG 1)
Officer Grade 2
(OG 2)
Officer Grade 3
(OG 3)
Operational Staff
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
Commercial 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. NAME His Highness Sheikh Nahayan Mubarak Al Nahayan Sir Muhammad Anwar Pervaiz, OBE, HPK Mr. Atif R. Bukhari Mr. Omar Z. Al Askari Mr. Zameer Muhammad Chaudary Mr. Ahmad Waqar Mr. Javed Saqib Malik Mr. Tehsin Khan Iqbal DESIGNATION Chairman Deputy Chairman President & CEO Director Director Director Director Director
Chairman His Highness Shaikh Nahayan Mabarak Al
Deputy Chairman Sir Mohammed Anwar Pervez OBE 21
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Nahayan
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
The Head of the Executive Committee is the President of UBL (Mr. Atif R. Bokhari).
Mr. Atif R. Bokhari President and C.E.O 23 Internship Report
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 Support / Collections Head
Mr. Mohammad Asghar Group Commercial Bank Head
Mr. Ali Sameer Group Head SAM
1-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 have 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. Suppose a company X want to get the loan from UBL. But the UBL has not that much amount. So it is the responsibility of the treasury department to manage the fund from money market (private financial institutions like Khanani & Kalia). The narrowest bid/ask spreads and the fastest quotes Dynamic risk-reducing hedging strategies for its customers The best relationships with institutional, corporate and retail 25 Internship Report
clients Year 2003 was a highly lucrative year for the bank with net profits in excess of PKR 4 billion. Treasury and Capital Markets (TCM) contributed to over 65% of UBL's total returns. This was due to Government Bond Trading, Equity Trading, Structured Products/Financial Engineering, Corporate Debt Trading, and Double-Count of revenues. Under the new management, the TCM expedited the launch of Pakistan's first derivative money market product-the FRA (forward rate agreement) with Quetta Textile Mills Ltd. in August 2003, and has further closed several similar transactions thereafter. UBL TCM is a market maker in both the domestic money market as well as the foreign exchange market. Being one of 11 primary dealers (PD), UBL has one of the largest balance sheets amongst banks in Pakistan, and hence our Foreign Exchange Exposure Limit (FEEL), as imposed by the State Bank of Pakistan,. is the highest in the industry. Equities is responsible for managing the bank's trading and badla portfolio, and to eventually develop a global equity trading activity for UBL. Structured Products is responsible for developing and packaging plain vanilla derivatives as well as more exotic customer specific products, and pipeline products. The Strategic Planning and Balance Sheet Management responsibilities include: Liquidity Management for the domestic balance sheet - This unit is the focal point for all branch-related liquidity issues and will also be responsible for day-to-day management of liquidity for UBL. Overseas Branches Treasury and Capital Markets - they plan to integrate the treasury activities for all overseas branches, to develop synergies amongst their various treasuries.
2-Corporate Banking
The main objective of the Corporate Banking is to look after the special customers who gives 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. Let us take the example of the Hub Branch of UBL, Hussain Agahi Multan and Corporate Branch of UBL cantt. There are 175 to 200 cases of Advances in the Hub Branch. But in the Corporate Branch there are hardly 15 to 20 cases of Advances due to so much high amount of Advances. And these types of customers are called corporate customers. Because they have 26 Internship Report
taken very much big amount of the Advances it means their business operations and turnover is more frequent. And as a result drawing and repayment of the loan or from their own account is also more frequent. So these types of customers need special care and services as well. But mind one thing that the documentation in case of Advances and Deposits is same in Corporate Branches as well as in Hub Branches is same. The cases of Advances also approve Credit Administration Deptt. (CAD) of the Regional Head Quarter (RHQ).
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. Our 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 our cordial relations with our 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.
3-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 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, Union-Management 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 28 Internship Report
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.
5-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 the 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.
6- 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.
7- 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
UBL CREDIT CARD It is the Pakistans 1st Chip Credit Card, that guarantees you both enjoyment and high value. It assures you global acceptability in more than 22 million establishments worldwide in 130 countries and in more than 12, 000 outlets within Pakistan. The UBL Credit Card ..Mazay Mein Raho.
This unique high tech CHIP guarantees your security while conducting transactions within Pakistan and around the world. CHIP based credit cards have proven to be the most secure way of conducting credit card transactions globally. A Choice of Rewards Along with exciting Chip Rewards you have a choice between Free RoadMiles and Free TalkTime.
Spend Rs 5000 anywhere on your UBL Credit Card and get guaranteed 5 litres petrol free from any PSO outlet nationwide. If you spend more, you get more. So keep driving, keep smiling.
Spend Rs 5000 anywhere on your UBL Credit Card and get guaranteed 30 minutes free. Whats more, you get a free Mobilink Postpaid Connection with your UBL Credit Card. If you spend more, you get more minutes. So talk freely, stay connected. Low Balance Transfer Rate Save big time Now you can really save big time with your UBL Credit Card Balance Transfer Facility!. Your UBL Credit Card offers a low rate for BTF of outstanding balances from other cards at only 1.5% per month.
Cash Advance
You can now withdraw cash through your UBL Credit Cards instant cash advance facility from any designated UBL Cards Payments Branch nationwide, and at more than 700,000 ATMs and financial institutions worldwide displaying the VISA/ PLUS logo. -VISA Global Customer Assistance Service and much more. Eligibility Criteria* You are eligible to apply for the UBL Credit Card if you are -At least 21 years of age -A resident of Pakistan -Employed or managing your own business Documents Required* -Copy of the Computerized National Identity Card -Any one of the following income documents
Salary slip/ Salary Certificate (in case of the Employed Applicants) 31
Internship Report
Personal Bank Statement and / or Company Bank Statement (along with business
proof), in case of Self Employed Applicants
UBL BUSINESSLINE
Introduction: UBL Businessline a complete solution to all your Business Financing needs. UBL Businessline is a running Finance facility that not only provides funds for growth but also enables you to capitalize on profitable opportunities. With UBL Businessline, now you will surely say: "Ab Hui Kamiyaabi Meri Manzill'. What is Businessline? It is a Credit Line/ OD Facility against Residential Property. It is an evergreen credit line that the customer can use for his/her business expansion Features: Utilize up to Rs.10 million: Now, UBL Businessline is here to solve all your cash flow problems. You can utilize up to Rs.10 million with the help of which you can now focus on your business expansion and growth. Mark up on utilized amount only: With UBL Businessline, now you no more need to pay for the entire credit line that you own. Businessline gives you the facility to pay mark up only on the amount that you utilize. Faster Processing: After completion of your documentation requirements, UBL Businessline promises you a very smooth and fast processing, hence saving you time and frustration. ELIGIBILITY CRITERION: If you fall in the following criteria, then UBL Businessline is just the right choice for you : Minimum monthly income: Rs. 25,000 and above Age: 25 65 Resident: Pakistani. Self Employed Professional / Self Employed Businessman.
UBL CASHLINE
Have you ever wished for a loan that was flexible enough to be used anywhere, anytime, and as many times as you wanted? UBL introduces Cashline the most flexible loan, providing you up to Rs. 500,000/- The perfect solution! FLEXIBLE Tired of paying bills yourself? UBL Cashline can pay them for you! Wanted to buy appliances for your home? UBL Cashline can buy them for you! Maybe even renovate it? UBL Cashline can provide for your home dcor! Tired of looking at the same old furniture? UBL Cashline can get you something you've always dreamt of! Envious for one of those sleek cars on the road? UBL Cashline can transform your wheels into a dream car! Need a vacation? UBL Cashline can fly you off to a dream destination too! Short term business needs? UBL Cashline can send payments to third parties in other cities! Emergencies? With UBL Cashline you can sit back and relax. CONVENIENT UBL Cashline gives you the convenience of access to cash through multiple options 24 hours a day, truly setting you free! With every UBL Cashline account you will get: Cheque Book Use your UBL Cashline cheques at any online branch throughout the UBL network! You can enjoy the convenience of walking into any UBL online branch across Pakistan and use your Cashline account with ease.
ATM/Debit Card UBL Cashline comes with an ATM/Debit card so that you have instant access to cash 24 hours a day, 7 days a week. Wherever you might be, you are never away from cash. Simply go to any ATM in Pakistan and experience the convenience of UBL Cashline! How can you get Cashline? If you are:
A salaried person of 21 to 60 years, and your monthly net salary is Rs. 10,000 A self employed business person/professional between the ages of 21 to 65 years, and
Or
your monthly net take home income is Rs. 25,000
UBL ADDRESS
UBL Address understands your home financing needs and offers you a variety of fixed, floating & adjustable rate options - because at UBL, you come first. Fixed Rate for 20 years Fix your repayments for 20 years today. The fixed markup rate gives you peace of mind and allows you to plan your cash flows better. Mark-up Monthly, Principal Annually (20 years) For the first time in Pakistan, UBL address provides an alternative to high monthly rentals by offering a flexible repayment option to suit your cash flows: -Pay only markup for 11 months every year. - Pay 5% of principal along with the markup in 12th month every year. Example, on the loan of Rs. 1,000,000 your annual principal repayment will be Rs. 50,000 while you will only pay the markup as monthly installment (as indicated in the grpah below).
Pay As You Select (PAYS) In addition to normal financing, UBL Address offers you the facility to design your own repayment plan to suit your present and future expected cash flows. PAYS-Up (10 yrs, 15 Yrs) PAYS-Up allows you to start with low installments that increase every year. For example, on a 15 year loan of Rs. 1,000,000 your monthly installment will begin from Rs. 9,270* in year one and will rise to Rs. 15,679 in year fifteen.
Eligibility Criteria -Minimum monthly income: Rs.15,000 - Age: 23 to 65 years - Resident Pakistani - Self-employed businessman/professional or salaried individual - Minimum loan size: Rs. 500,000
UBL DRIVE
UBL Drive is a unique car financing product which offers you features, options and flexibility unmatched by any other bank, some for the very first time in Pakistan. Because at UBL, you come first. No Documents Required UBL Drive gives you the opportunity to get the car of your choice financed with minimal documentation. You do not have to provide any income related documents - all that is required is a copy of your NIC and 2 photographs! Low Down payment Just 10% In addition to low installments, UBL Drive allows you to drive away in your own car by making a down payment of just 10% - one of the lowest down payment options in the market!
UBL offers a wide range of attractive term deposit schemes to suit your requirements. Deposit period along with projected profit rates of these schemes are given below : Term Deposit Period 7 to 29 Days notice 30 Days and above 1 Month 2 Months Three Months Six Months 36 Internship Report Projected Rate Of profit Please Contact your nearest UBL Branch.
One Years Two Years Three Years Four Years Five Years Corporate customers, besides normal current accounts, are also offered special current deposit accounts to cater to their specific requirements at very attractive profit and terms.
You can open a PLS Savings Account with an initial deposit of Rs. 2,000 Your share of profit is credited half-yearly and is calculated on monthly balance You can withdraw your savings through cheque
UBL UniSaver Account is an innovative way of serving your banking needs. Be it trade, business or personal finance, the UBL UniSaver allows you maximum flexibility, yet gives you optimum returns. Special Features are;

Daily Profits on your daily balance Higher returns on higher balances Attractive rate of return Backed by the bank awarded AAA Credit Rating Deposit Category Over Rs. 100,000 Up To Rs. 3 Million Rs. 3 Million upto Rs. 5 Million Over Rs. 5 Million upto Rs. 10 Million Over Rs. 10 Million upto Rs. 50 Million Over Rs. 50 Million upto Rs. 250 Million Over Rs. 250 Million upto Rs. 500 Million Over Rs. 500 Million Please contact your nearest UBL Branch. Projected Rate Of profit (p.a)
Our remittance products are designed to give you maximum flexibility. Currently, you can send money to almost ANYWHERE in Pakistan by using our popular TezRaftaar remittance service. For US residents, UBL offers added flexibility through UBL Click N Remit-- an innovative online remittance service . Sending money from US to Pakistan is just a click away. UBL is also a member of SWIFT (Society for Worldwide Interbank Financial Telecommunications). This enables the Bank to provide secure transmission of foreign exchange payments for trade, home remittances and other transfers in a fully automated manner. Our SWIFT Bank Identifier Code is UNILPKKA Newyork UNILUS33 U.K(UNB) NBPAGBZL U.A.E UNILAEAD Bahrain UNILBHBM Qatar UNILQAQA
DISCOUNTING OF BILL
Commercial banks also discount the bills and facilitate the business; for example one businessman purchases anything from another person and promises to pay after one month. The seller will write a bill to the buyer and there will be an order that after one month the buyer will pay the amount to the seller. Buyer will sign on the bill. In other words buyer will accept the responsibility of that amount. If seller is in need of money, he will take it to the bank and will receive the money by discounting the bills. The commercial bank also may rediscount it from the central bank.
Chapter 4
Commercial Banking
COMMERCIAL DEPARTMENT
As far as the law is concerned, Banking Companies Ordinance 1962 defines the term banking as following: Accepting for the purpose of lending or investment of deposits of money from the public repayable on demand or otherwise and withdrawals by cheque, draft, order or otherwise. The commercial banking has been developed into an important sector economy. It is a service-oriented organization, which performs numerous functions. The functions, which a commercial bank performs, can be divided into following categories. 1. 2. 3. Basic Functions Agency Services Functions General Utility Functions 39 Internship Report
These are classified as following.
Basic Functions These include: 1) 2) 1. a. b. c. 2. a. b. c. Agency Services These include: Collection of Cheques Collection of Dividends Purchase and Sales of Securities Execution of Standing Instructions Collection of Bills Acting as trustees or Executors Transfer of Funds These include: Supplying Trade Information Issue of Travelers Cheques Issue of Credit Cards Foreign Exchange Business Accepting of deposits Making advances and loans Accepting of Deposits Current/Demand Deposit Saving Deposits Fixed Deposit Making Advances and Loans Running Finance Term Finance Project Finance
General Utility Services
RUPEE TRAVELLER CHEQUE UBL offers the facility of the Rupees Traveler Cheque. UBL Rupee Travelers Cheques are the ideal and safest way of carrying cash when traveling anywhere in Pakistan. Used for conducting day- to-day business. No commission is charged from the purchaser. No excise duty on purchase. Easy to obtain and encash from all designated 350 branches of UBL. Acceptable all over Pakistan. Good until used and have unlimited life. Easily transferable like an order cheque.
DEPOSIT DEPARTMENT
Deposits act as a backbone of bank. It is the lifeblood of every bank. These deposits are source of generating incomes for the bank and for the general public to meet the financial needs. The supply of money in circulation is also affected by the amount of loans and advances issued by the bank. The primary economic function of the commercial bank is to receive the surplus saving money from the general public, individuals, firm, institutions, public houses and companies and to pay the cheques drawn upon the bank. The bank accepts the deposits at a low rate of interest and lends it at higher rate of interest, the difference between the lending and accepting rate is the Source of income for the bank. Keeping in view the above factors UBL offers the following types of deposits: 1) 2) 3) Current Deposit Saving Deposit Fixed Deposit
The classification of the deposits in to current, saving and fixed accounts is mainly on the basis of duration and purpose for which the account is maintained at a bank
CURRENT DEPOSIT
Current deposit is running deposit because, customer can withdraw deposited amount at any time, whenever he feels need. The customer can withdraw without any prior notice to the bank. The bank has to pay the cheque provided within the limits of the account balance. The main thing is that bank does not pay any kind of interest on current account. Actually this deposit is for the business purpose. The bank cannot invest the deposited amount under current account heading, because of the fear of withdrawal. Bank has to keep with it a higher reserve ratio to meet the needs of the current account holders.
SAVING DEPOSIT
Saving Account is an important source of funds for the bank. The purpose of this account is to attract the small saving of the general public. Normally workers, schoolboys and employees of the organizations use the saving account facility. UBL also provides this facility to the general public against a certain rate of interest. The new name of this account is now a day is PLS-Saving Account. If a customer wants to withdraw a large sum of money (above 15000), he will have to give a notice of 7 to 14 days in writing to the bank. Saving account deposits provide a chance to the bank to invest safely, because customer 42 Internship Report
can withdraw small amount of balance.
FIXED OR TERM DEPOSITS

Fixed or Time deposits accounts are the major source of the capital for investment for the bank and cannot be withdrawn as in case of the current account. The amount deposited can be received back after a certain specified period of time. The rate of interest paid on fixed Deposits is normally higher than saving Deposits. The rate of interest also varies due to time period. More the maturity period of the account more the interest is paid by the bank. After the expiry of the period the customer presents the receipt to bank and received the amount in cash or bank added in the customer accounts as agreed between bank and customer. Q: if the customer withdraw the amount before its maturity period in fixed deposit account then what would happen? ANS: Suppose you are the customer of the bank and have fixed deposit in that bank. For example you have deposited Rs. 100,000/- for the one year at the interest rate of 6.50% per month. Accidentally after six month you need your amount back and want to withdraw it. Then it doesnt mean that you will not get any profit on it at all or you should be charged a fine. Only and only your profit ratio would be reduced because according to the bank policy more the period of fixed deposit more the interest would be paid to the customer by the bank. Suppose that six months fixed deposit rate of interest is 6.00% then it means now you will get the 6.00% rate of interest instead of 6.50%. The period of fixed deposit account ranges from three months to ten years. It is usually operated by widows, retired pensioners, salaried persons etc. to get the regular (monthly) rate of interest. In Pakistan this account is subject to Zakat deduction.
OPENING OF THE NEW ACCOUNT

A customer can open the following three types of accounts: 1) 2) 3) PLS-Saving Account Current Account Fixed Account
1) Opening of saving Account Saving account is also divided into two types further, I. II. Individual saving account Joint Saving Account
I. Opening of Individual Saving Account An individual person can open this type of account. UBL has defined the following procedures for the opening of individual saving account: Signature specimen card, the bank to get authorized signature of the customer as specimen for avoiding any future discrepancy gives Customer. Account opening form, when a customer comes to open the new account in the branch he is given a printed form, to be filled by him. Account opening form consists of full name, address, and date of birth, occupation, telephone number, and N.I.D. card number. Guaranteed by the existing account holder, when the new account holder fulfills all the requirements then he is asked to give some existing account holder guarantee, so that in future the new account holder may not fraud with the bank. II. Opening of Joint Saving Account: Opening procedure for the joint saving is same as in case of individual saving account. Just the difference is in the account opening form. Signature specimen card is also used for the same purpose as for the individual saving account, to avoid future discrepancy. Account opening form, joint saving opening from has same information more than one time because more than one person fills this form to open the account. Briefly is that no one/single person can open this account, as a result it is called joint saving account. Rules and Conditions for Saving Account: The account opening person knows the rules and conditions. This account can be opened only with initially Rs. 100 not less than this amount. 1) 2) 3) bank. 44 Internship Report PLS- Saving account may be opened by/in the name of individual or jointly, or by charitable institutions or provident funds or other funds, associations, societies and For opening of this account application has to submit on the prescribed form by the
firms or clubs.
4) 5) 6) 7) 8) 9)
Customers can deposit money in his account by using pay-in-slip. Customer must check the signature of two officer of the bank on the deposit slip. Withdrawal, depositor cant withdraw more than his balance or one quarter. At least 7 Bank cant responsible for a cheque, which has been paid prior to receipt of written The bank will take care to see that credit and debit entries are correctly adjusted, but If the account is closed the unused cheques must be returned to the bank for the
days notice must be given to bank for withdrawal purposes. instructions from the drawer countermanding payment. if any mistake is by the depositor/withdrawer than bank will not responsible for the loss. cancellation and the balance amount, if any must be withdrawn. 10) The profit or loss on the balance due at the time of death will be paid when bank will declare its profit/loss for the half year. 11) Death of account holder, in absence of any instructions the credit balance outstanding in any joint account in the name of two or more persons will be payable to the survivors. 12) The bank to the account holders will supply statement of account every quarter. 13) Amendments of rules, the bank have a right to amend, alter or add to any of these rules with or without notice to the account holders. 2). Opening Of Current account A person, businessman and organization can open the following types of current account. I. II. III. IV. I. Joint Current Account Individual Current Accounts Sole proprietorship Current Account Partnership Current Account Joint Current Account
More than one person can open joint current account. Minimum balance of this account is Rs.l0, 000 approx. If a joint holder dies then bank holds the account and refers case to the court. Account opening form, this application form is divided into two sides and both sides have same information which are details of signatory (A, B), name, occupation, nationality, place and date of birth, national identity card number, business address, employer no. Etc.
II.
Individual Current Account
Only one person can open individual current account. Minimum balance in this case is 2500, if the balance in the account is less than this limit than bank sends a statement to account holder to maintain the minimum balance. For withdrawal, checkbook is issued and used no other instrument is used or accepted by the bank. Procedure for opening this account is also same as in PLS-Saving account just the difference is in opening form information, required by the bank. III. Sole Proprietorship Current Account In sole proprietorship organization a person invests his capital and devotes full time to his business. Sole proprietor opens this account. Minimum balance that required in this account is Rs. 1000. All the profit paid on balance will go to the sole proprietor only. The account opening form of this account is different than others because this form is filled in the name of the organization. The name of proprietor. Place and Date of birth, Nationality, Passport number and National Identity Card number, have to mention on this form. Documents Required Following documents certified copies are required with the application: a) b) c) IV. Most recent set of Account Current Municipal Licensee Commercial Registration Certificate. Partnership Current Account
Partnership current account can be opened with the name of Partnership Company. Before opening of partnership account shareholders has to decide that how many partners have right to sign on cheque. The procedure is same for opening such account; the difference is in the account opening form. Account opening form shows the name in full, nature of business, principal place of business, address, location, and telephone number, telex number. After that this form is divided into four sides with the name of A.B.C.D. and showing the same information mentioned earlier.
Rules and Conditions 1. Bank can close /down any account at any time upon 48 hours write notice, after the opening of the account. 2. The account number should be mentioned on all correspondence with the bank when deposits or withdrawals are made. 3. 4. 5. The account holder must maintain the minimum balance requirement that is Rs: 1000. After six-month bank refuse the payment of the cheques (post dated cheques). Bank will not make payment if cheque is made unauthorized.
6. Account holder who is unable to sign, he will affix his left-hand thumb. 7. The cheque amount should not exceed to balance of account. 8. Any person opening a current account is deemed to have read, understood and bound by the bank rules and conditions of current account.
DIFFERENCE BETWEEN MANAGER & MANAGER OPERATIONS

The manager of the bank is responsible for the SALES in terms of both Deposits as well as Advances. On the other hand Operational Manager (manager operations) is responsible for the table work being done within that branch. And same is the difference between Area Manager (AM) & Area Manager Operations on the area level. AM is under the Regional Head and is responsible to achieve the targets of Advances as well as Deposits of the Central Branch with the Spokes Branches under it. Area Operational Manager is responsible that the table work of the Central Branch and the Spokes Branches should be done in a right way.
ACCOUNTS DEPARTMENT ACCOUNTS DEPARTMENT

It is said that accounts department is the backbone of the bank. It plays a vital role in performing different banking functions. The accounts department at UBL Hussain Agahi branch is performing its function manually. Different books of accounts relating with other departments are maintained here. With the help of these books of accounts, accountant prepares monthly, quarterly, semi-annually and yearly financial statements. The working in accounts department mainly depends upon voucher system. For each and every transaction-taking place in the bank vouchers are prepared and through these voucher contra entries are passed under different heads. FUNCTIONS OF ACCOUNTS DEPARTMENT The accounts department performs the following functions: (a) (b) (c) (d) To prepare and maintain the vouchers. To maintain and update the ledgers for term deposits. To update general ledger. To prepare different periods statements.
Vouchers Each and every transaction in the bank is made through vouchers; the final place is accounts department for recording these vouchers. Officer in the accounts departments arranges these vouchers according to heads of accounts. These vouchers are of two types: 1. Debit Vouchers 2. Credit Vouchers These two vouchers are again classified into three following types of vouchers: I. II. III. Cash Voucher Clearing Voucher Transfer Voucher
All the daily transaction in cash, transfer and clearing is done through these vouchers. A sheet is prepared on which all the vouchers, passed during any one working day are 48 Internship Report
consolidated and summarized. This sheet is called supplementary sheet. It provides help in preparing Cash Book. There are two types of supplementary sheets: Debit Supplementary Sheet: In which all debit Cash Voucher, Clearing Voucher, Transfer Voucher are included. Credit Supplementary Sheet: In which all credit Cash Voucher, Clearing Voucher, Transfer Voucher are included. Cash Book It is maintained to keep the record of daily receipts and daily paid vouchers. Cashbook is consisted on the opening balance and the closing balance of the day. For correct balance of the cash book there is a need to arrange all the vouchers. Ledger For Term Deposits One of the functions of accounts department is to maintain and update the term deposit ledgers and books manually. Term deposit receipt or TDR ledger is updated after every month for estimation of profit on customer accounts. Accountant has to prepare different ledger for all schemes of term deposit. With the help of TDR the accountant prepares provisional ledger/Summary ledger and also statement of provisional expenses. The profit after every six-month will be the expense of the branch. Updating General Ledger When vouchers are recorded in cashbook then the balance of each head of account is posted to its ledger account. There are two main heads of the general ledgers, Income account & Expenditure account. All the accounts fall under one of these two main heads. Separate ledger register is maintained for every head of account. In UBL all the daily transactions in deposits, cash, clearing, transfer remittance, foreign exchange; advances are performed through these daily ledgers. Accounts department Maintains and prepares the following ledgers and books of accounts: I. II. III. V. Daily General Ledger Expenses Daily General Ledger Incomes/Receipts Monthly General Ledger Assets Daily General Ledger Zonal Expenses 49 Internship Report
IV. Monthly General Ledger Liability
VI. Daily General Ledger Inspection expenses. VII. Daily General Ledger Regional Expenses VIII. Daily General Ledger Audit Expenses The format of the entire above ledger is approximately same. General ledger tells about A/C No., description, previous Balance, Dr. amount, Cr. amount and running balance.
Preparation of Different Statements

Accounts department prepares these statements, a) b) c) d) e) Statement of Affairs Statement of provisional Income Statement of provisional Expenses Statement of Head office A/C Balance confirmation Book/Report
f)Transfer Book Statement of affairs is prepared yearly, consisting on the details about assets and liabilities of the branch. This statement provides assistance in budgeting about branch. Statement of provisional Income and expense is prepared monthly. Statement of account and balance confirmation is sent to accounts holders.
LOCKERS
UBL is also providing lockers facilities to its customers. The account department also maintains the record about lockers. The basic purpose of locker is to provide safe custody to clients valuable ornaments, jewelry or documents. Almost in all branches, Lockers are available in different sizes at different rates. For availing this opportunity, customer has to open his account in the same branch/bank. Locker Operating Procedure: Bank provides an application form to the applicant who needs to operate a locker in the branch. This application form contains all rules and regulation regarding to obtain a locker. Specimen signature card is also filled in signed by the applicant. Bank assigns a password to their customer for secrecy. Each locker has duplicate keys. One (master) key is kept by the bank, and the other by the customer. In case of opening any locker, first of all master 50 Internship Report
key is applied and then the customer key. If the locker has been obtained jointly then at the time of the opening, the person signed the application form, should be presented there otherwise, the bank will not allow to operate the locker. Bank officer has to maintain the following register for record keeping purposes of locker. I. II. III. Locker Register Operation Register Key Deposit Register
Safe deposit locker fee is recovered in advance or at the start of the year, half-year or quarterly. Types of Locker There are basically three types of locker at UBL that are as under: TYPES OF LOCKERS Small Medium Large RATES OF LOCKERS Per Annum Rs. 1200 Rs. 1800 Rs. 3000
The key deposit fee is Rs. 600. Per locker and it is refundable at the time of closing an account the breaking charges are Rs. 500 per locker and it is also refundable at the time of closing of account, provided there is no breaking.
BILLS COLLECTION
BILLS DEPARTMENT This department basically deals in bills, which come in bank for collection. The bills are cheques, call deposit, drafts and pay order. These bills are from outstation branches of UBL or of other banks. This department provides services to customers at low charges to get their amounts from the nearest branch. HEADS OF BILLS There are two main heads of the bills i.e. Outward Bills For Collection (OBC) Inward Bill For Collection (IBC)
Outward Bills for Collection Bills department receives cheques or other kinds of bills from its clients. The condition under Outward Bills for Collection is that the customer must have his account in the branch. This branch forwards the cheque with schedule or covering letter to that branch on which bill is drawn. The checking officer of bills department will cross the cheque with special bank stamp before forwarding the cheque to the other branch. Outward Bills for Collection Register Outward bills for collection register is maintained in order to deep the records of all bills for outward collections. This register is updated two times, first at time of receiving the OBCs and secondly at the time when confirmation advice is received from the other branch, either the cheque will be paid or not by the other bank branch. After confirmation of the amount, confirmation advice is transferred to the sender branch. After confirmation of the amount and bills, the account of the customer is credited against reasonable charges, which is income for the bank. Inwards Bill for Collection These bills come to branch for payments so branch has to verify these cheques, pay orders, drafts and call deposits etc. The party account must be opened in that branch which sends it to paying branch .The responsibility under IBCs of the branch is to verify all the bills within three days, and should send the bank advice to the originating branch.
Inward Bills for Collection Register Inward bills for collection register are maintained for future record purposes. Care is made while posting the amount of bills in the register. Each bill is assigned a number according to the register series. Every year the number starts from one and continues for the whole year and next year again from one and so on.
CLEARING DEPARTMENT
This department welcomes the cheques and other negotiable instruments drawn upon local branches of other banks. State Bank of Pakistan has a clearinghouse, in which the bank representative brings cheques and other Institutions and mutual claims of each bank on other are off set and a settlement is made by the payments. Clearing system is helpful for both the customers and bank in saving of time, labor and currency involvement. PROCEDURE FOR CLEARING CHEQUES AND INSTRUMENTS UBL is a member of SBP and has an account with SBP. The clearinghouse of SBP, through which branches forward and receive clearing cheques, with a schedule, conducts clearing. The clerk of forwarding branch prepares the schedule and vouchers of all the clearing cheque, which he received on that day and sends these cheques to the checking officer. Checking officer passes these cheques and vouchers by his initials, endorsement stamp and branch special crossing stamp. Clerk posts the contra entries of these vouchers in the clearing register. At every day at about 9:05 a.m. Representative of all local banks are in clearing house of SBP, to receive and forward the cheques. PROCELURE FOR ADVISING H/O ACCOUNT All the inter-bank adjustments will be effected through HO account, it will be essential for the branches to advise head office account about every transaction. The SBP will send a consolidated debit/credit advice to the branches in respect of clearing cheques delivered or received from the branches. The amount of the advice will agree with total amount appearing in the schedule of cheques delivered/received. Copies of all advice will be sent to head office. The other branches will not send any advice to head office.
TRANSFER DELIVERY
Branch receives the cheques and other negotiable instruments drawn on other branches of the same bank. Main branch of the UBL handles the transfer deliveries of cheques. The same clearing cheque procedure will be adopted in the transfer delivery case except both availing the facility of SBP, In case of cheque drawn on one branch and collected by another branch for the credit of its constituents the branch delivering the cheques will send a consolidated debit advice to the drawee branch. Clerk maintains the ledger for transfer deliveries, copies of all the advice will endorse to head office as usual.
COLLECTION & CLEARING PROCESS

7-Proceed Fate
UBL Multan
2-cheque
UBL Lahore
Mr. Saqlain A/c
3-cheque 6-Credit Advice For Collection
SBP Multan Clearing House

5-Credit Advice 4-cheque
MCB Multan
Mr. Ali A/c 1-cheque
Suppose Mr. Alis A/c (account) is in any MCB Multan Branch. He purchases some products from Mr. Saqlain who is the party of Lahore. It means Mr. Ali has to pay the amount in Lahore to Mr. Saqlain. Suppose Mr. Alis A/c is in any MCB Multan branch and Mr. Saqlains A/c is in UBL Lahore Kent branch. So, Mr. Ali will make the cheque of his own account and say to his bank (MCB) to pay it in UBL Lahore branch in Saqlains A/c. Then the MCB Multan branch will send this cheque to UBL Kent branch Lahore where there is Saqlains A/c. the UBL Kent branch Lahore will send this cheque to the main (hub) branch of UBL (its own bank branch) in Multan for the clearing process. Then main branch of UBL Multan will send this cheque to the SBP clearing house Multan. The bank sends its own employee to the clearing house with all the cheques of other banks. And then SBP clearing House will send this cheque to the MCB branch in which the cheque is made. If the Alis A/c has sufficient amount for the payment then this MCB branch will send the Credit Advice to the SBP Clearing House. Then SBP will credit this amount in A/c of UBL because the liability of UBL is increased and debit this amount in the A/c of MCB because their liability has decreased. Then this cheque will go to the main branch of UBL Multan. At the end, the main branch of UBL Multan will send proceed fate to the UBL Kent branch Lahore where is the Saqlains A/c and the amount will be credited in the A/c of Saqlain. COLLECTION In the above example, UBL Kent branch Lahore is the collection agent on the behalf of its customer (Saqlain). And the clearing process is happening in Multan between UBL main branch and MCB. 2- If both banks are in the same city then only clearing process would be performed.
Sellers A/c
UBL Multan
5 1 4
Buyers A/c
SBP Multan
Clearing House
MCB Multan
3 55
Internship Report
3- If the cheque has to go in different branches of the same bank then there will not be a clearing process. There will only be the confirmation process.
UBL Multan
Proceed Fate 3 1-Cheque
UBL Lahore
INWARD CLEARING The bank that has to pay the amount it goes in the process of Inward (internal) Clearing. He has to scrutiny (Check) that is the cheque issuer has the sufficient amount or not? In the above example, MCB is doing inward clearing. OUTWARD CLEARING The bank that receives the cheque of another bank it goes in the process of outward clearing. Because the bank is inspecting about a person who has an account in another bank. In above example UBL is performing outward clearing. CROSS CHEQUE Cross cheque is a cheque through which the amount is transferred from one account to another account. No body can withdraw the amount directly by this cross cheque even the favoree himself until this amount is credited in the his A/c. Then he can withdraw that amount from his own A/c.
SPECIMEN (Sample) OF A CROSS CHEQUE
United Bank Limited

Hussain Agahi Branch, Multan
PLS ACCOUNT NO. _______________
DATE ____________
PAY ________________________________________________________ OR BEARER RUPEES ________________________________________________________________ REMITTANCES DEPARTMENT RS. _______________________
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. PARTIES INVOLVED In case of remittances normally two banks are involved, are as under: Originating Bank Branch It is the branch, which issued the instrument for remittance. Responding Bank Branch The branch that receives the instruments for remittances, also known as drawees branch: TYPES OF REMITTANCE Remittances are classified into the following two types: 1) 2) 1) Inland Remittance Foreign Remittance Inland remittances
It is a transfer of money from one branch to another branch of the same bank within the same country. In this case both the parties will be of the same country and same bank.
MODE OF REMITTANCES
United bank limited, uses following types for transfers of money: 1) 2) 3) 4) 1. Demand Draft (DD) Pay Order (PO) Mail Transfer (MT) Telegraphic Transfer (TT) Demand Draft (DD)
A bank draft is an order instrument issued for payment of a certain sum of money to a certain person. It is to transfer the funds from one city to another. There are three parties involved: Drawer: Issuing Bank. Drawee: The bank on which the draft is drawn. Payee: The name of person to whom the payment is to be made. There are two types of demand draft, which are as follows a) b) a) DD Issued UBL has a standard application form that must be filled in by the customer for issuance of Demand Draft. The DD Application Form contains: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Applicants Name Applicants Address Signature of Applicant In Favor of (Payees or beneficiarys Name) Drawn on (Name of Drawee Branch) Amount in words and figures. Amount of commission charged by the bank on providing this facility Cheque No. in case of making a DD against cheque DD No. Stamp of the issuing branch 58 Internship Report DD Issued DD Payable
The Second Officer, Cash Officer and another authorized officer must duly sign this form. The cheque of the showing the amount of the DD is attached with the application form. The clerk prepares the demand draft when all the requirements are fulfilled. As a precaution, the draft should be protecting graphed. In the case protect graph is not available, a sum of the amount payable must be written in red ink preceded by the words UNDER or NOT OVER. It is known as Protective Crossing or security notation. Demand draft is then recorded in the DD issued register and credit advice is sent to the drawer branch. Banks Charges The bank recovers different types of charges from the applicant on issuance of DD, including: I. II. III. Central Excise Duty Commission Tax
IV. Postage Charges b) DD Payable When the bank branch receives a credit advice issued by another branch and the title of the advice is demand draft then this is called the Demand Draft Payable or the DD Payable. Practical procedure regarding to the payment of demand draft, in the United Bank Limited may be summarized as follows: 1. All drafts drawn on a branch should be routed through the General Ledger Accounts Draft Payable of the Bills Payable Account. This account is credited by the drawer branch on receipt of the cover in the form of IBCA. 2. Signatures should be verified on all drafts drawn on a branch. 3. Normally, payment of a draft should be made after receipt of a corresponding credit advice. In case the advice has not been received, payment should be executed through the approval of the Manager at the drawees branch who should satisfy himself with regard to the authenticity of the draft in terms of signatures and otherwise. 4. On receipt of advice from the drawees branch, signatures should be verified if the amount of a draft exceeds Rs.5000/5. The draft when paid should be marked in the DD payable register. 59 Internship Report
Essential Precautions at the Time of Payment

I. The instrument should be scrutinized properly with regard to name, Drawee branch, amount in words and figures protect graphic and signatures of officers. II. The payment should not be effected unless the payee has been identified to the satisfaction of concerned officials at drawee branch. III. Extra care should be exercised if the payee falls in the category of non-customers. It would be better if an account holder verifies the identity of the payee, in such cases. 2. Payment Order / Pay Order (PO)
A bankers Payment Order is an instrument drawn by a banker on himself Implicit in a payment order is an undertaking on the part of the banker to pay, a certain sum of money, on the presentation of the instrument. The payment orders are generally issued for anyone of the following practical purposes: 1. To facilitate all locally payable expenses on account of a bank for the reason that such payments are not executed through cheques. 2. 3. For the sake of inland and foreign remittances in case where the beneficiaries do not For all local payments under instructions of the customers for sundry purposes like
maintain account with the bank. payment of insurance premium, payments to third parties, club bills, rent and taxes etc. The following contains stepwise procedural prescriptions pertaining to the issuance and payment of payment order: Issuance I. For the issuance of payment orders, an application will be tendered on banks standard form (F-34) by the purchaser giving his name and address thereof In case of request from the banks customer for the issuance of the payment orders, a letter in this respect, will be obtained giving full particulars of the payee authorizing the bank to debit the account. II. The cost of the payment order along with an amount of Rs.5/- as commission plus excise duty will be paid on the counter. 60 Internship Report
III. In case of letter of authority, the total amount i.e. payment order amount, commission, excise duty and postage, if any, will be debited to the customers account as per bank instructions and contra credit will be passed to Bills Payable Payment Orders Account, commission, excise duty and postage account. IV. The application for the issuance of payment order the Manager/Second Officer as the case shall sign (F-34) may be if it is to be issued on bank account. V. The particulars of the payment order shall be inserted on the blank payment order leaf either through a typing machine or shall be neatly hand written using indelible ink. The account shall also be rounded off through a protect graph machine or by hand on top of the instrument. VI. Subsequently, the particulars of each payment order shall be recorded in payment orders issued register. The payment order shall be signed by two authorized officers of the bank simultaneously authenticating entry in payment order issued register and after verifying the following: a) b) c) d) Name, code & address of the issuing branch. Name of the payee. Amount in words and figures. Date of issue.
The amount is rounded off on top of the instrument either through protect graph machine or neatly by hand-writing. VII. A stamp containing the following stipulation shall be affixed on the back of each payment order at the time of issue: Received payment from United Bank Limited as over leaf on. Account of______________ Date VIII. The payment order, then, shall be delivered to the purchaser or to the department concerned against acknowledgment on the reverse side of F-34 as well as on the counter foil of the payment order. Payment I. The payee shall be duly identified by a bank customer or by Manager / Second 61 Internship Report
Officer in case the payment order is presented for cash payment on the counter and it will be ensured that the payment order is properly receipted on its reverse on appropriate value or revenue stamps. II. The payment order will then be entered in payment orders issued register after marking the date of payment against the date of issue in the contra columns under authentication. III. The payment order will then be passed for payment as per bank instructions. IV. The procedure as given above will be adopted in case of all payment orders received for payment, except that usual precautions shall be observed to ensure that the bank stands V. 3. discharged from the payment in due course. Mail Transfer (MT)
Some times a constituent of a bank wants to transfer funds from one account to another or a non-constituent wishes to remit funds in a particular account maintained at some place with a branch of the bank or when the accounts are transferred from one branch to another branch, such amounts / balances are remitted by means of mail transfer. The procedure for issuance of a mail transfer is the same as discussed for drafts except that the applicant is provided with a memorandum for money received from him for the issuance of a mail transfer on a particular branch of the bank. The payee must be an account holder (customer) of the drawee branch.
PAYMENT OF MT
The procedure for payment is as follows. I. II. III. Dr. Cr. IV. Dr. Cr. On receipt of advice from drawer branch, the test should be verified if amount exceeds Rs. 5,000. The particulars of MT should duly be entered in MT payable register. Following vouchers should be passed after the test has been verified Head Office Account Drawer Branch. Bills Payable Account MT payable. When the customers account is to be credited, the following entries are passed: Bills Payable Account- MT Payable Customers Account. 62 Internship Report
V.
If the payment is to be effected in cash, the entries are: Dr. Cr. Bills payable Account- MT payable Cash.
Before making the payment of MT, the drawee branch must ascertain the following: It is drawn on the same branch. Payee has signed the revenue stamps of adequate amount. Payee is properly identified. 4. Telegraphic Transfer (TT)
Generally a mail transfer advice reaches the drawee branch the next day, when courier arrangements exist. However, when it is sent through post offices, it usually takes 2 to 3 days to reach its destination. But sometimes an individual whether customer or not, demands that his funds should be transferred from one place to another through the quickest means. In such cases, transfer of funds message is passed on through a telegram, ordinary or express, to the drawee branch of the bank. A tested message is sent to the drawee branch followed by the confirmation copy. In case the payment is immediately required by the payee, the tested message is given on the telephone. Besides normal charges as those recovered on issuance of demand draft, the bank charges one additional expense i.e. Telephone Charges of amount Rs.100 from the customer. Payment of TT A TT facilitates urgent transfer of funds either by a telegram or through telephone. A stepwise procedure relating to the payment of TT at the drawee branch is as under: 1. The drawee branch receives message either on telephone, or through telegram. In case of a telegraphic conversation, the concerned official at drawee branch should ask for the proper identification of the official at the drawer branch. Whereas the message should be decoded in case of telegram. 2. 3. The particular of the TT should duly be entered in the TT payable register. In case where the customers account is to be credited, following entries be passed: Dr. Cr. TT Account Drawer Branch Bills Payable A/C _ TT Payable 63 Internship Report
Dr. Cr. 4. passed:
Bills Payable A/C _ TT payable Customer s Account.
In case where the payment is to be effected in cash, the following vouchers shall be
Dr. Bills Payable A/C TT Payable Cr. 5. Cash TT should be paid after proper identification.
With-in the country or from abroad, UBL offers the most efficient and price competitive services. With its large network of branches, it is poised to offer service almost at doorstep of the customers. UBL is a member of SWIFT (Society for Worldwide Interbank Financial Telecommunications). It is now the privatized commercial bank to link up with three international points, Dubai, London and New York. This enables the Bank to provide secure transmission of foreign exchange payments for trade, home remittances and other transfers in a fully automated manner. MONEY GRAM Money gram service is a person-to-person international money transfer service that allows consumers to send/receive money around the world in minutes, with no bank account required. FEATURES OF MONEY GRAM FAST With money gram your money can be transferred from almost any country in the world because it is a reliable and trusted way to send/receive money worldwide. SAFE The money gram service is used around the world because it is a reliable and trusted way to send/receive money worldwide. CONVENIENT More than 50,000 MoneyGram agent locations in more than 150 countries; computer networked to ensure that your money is transferred within minutes.
Easy:
(How to Receive your transfer) 1. Sender abroad goes to nearest MoneyGram representative, fills out a form, hands in the amount he wishes to send and the send (service) fee**, and shows an I.D. 2. Upon completing the transaction, sender will be given a transaction reference number. 3. Sender calls the receiver and informs him of the transaction reference number and the amount of money sent. 4. Receiver can go to any MoneyGram representative, show an I.D, fills out a simple form mentioning senders name and amount expected. 5. Receiving agent hands over the money to receiver.
NOTE:
Currency exchange rate set by MoneyGram or its representatives will be applied.
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) 2) 3) 4) 5) 6) 7) Cash received voucher sheet Cash paid voucher sheet Token register Transaction ledger Pay-In-Slip record Cheque book record Cash balance book
PROCEDURE FOR CASH PAYMENTS The instrument against which payment is made that is the cheque. Normally the cheques come for payment in the branch are, cheques received at counter for payment and other cheques are Clearing or Transfer Cheque. No payment is made against any other monetary instruments. Special Considerations When cheque is received for payment special care is taken about the signature of the account holder, date, no cross or cutting in figures, signature at the back of the cheque presented for payment. If any thing is found wrong then cheque is dishonored and is given to customer for rectification. If the cheque is found valid in all respect then Token Clerk assigns token to the cheque at the back. The same Token is given to the customer as a proof. The next step is forwarding cheque to the accountant for the verification of the signature with specimen card signature. If signature are not according to specimen card then the cheque is returned to customer and token is taken back. In token register a note is written that cheque returned unpaid. If signature are similar with the specimen card than cheque amount is posted in Ledger Card/Transaction Ledger. Special care is given to the balance of the account either favorable or unfavorable.
Overdraft Facility If the balance in the account is less than the cheque drawn, then bank may extend O/D facility to its customer but now-a-days this facility is not provided. Withdraw Limits If the cheque is up to or less than 10,000 then officer can sanction and in case of greater, than he has to get approved from his superiors. Finally, after all verifications of the cheque it is given to the cashier, then payment is made to holder of the cheque. At the same time cashier maintains the Cash Receive Voucher Sheet. The cashier performs all these duties manually. PROCEDURE FOR CASH RECEIVED For depositing any amount in the account Pay-In-slip is used that is filled by the customer. The pay-in-slip is consisted on date, A/c No., and particular about the amount to be deposited in the account. The depositor signs the part of the paying slips, which are retained by the bank to show acceptance about the entries, made in pay-in-slip. The pay-inslip serves as a voucher to Card/Transaction Ledger is only updated with pay in slip. The cashier checks necessary details provided in the pay-in-slip and count the cash to be deposited and tally with the figures written in pay in slip and in his hand/counter. If any mistake is found then first that mistake/error is removed. If there is no one, than cashier fill in Cash Voucher Received Record Sheet and assigns a voucher no. To both the transactions made in the sheet and to pay-in-slip. This voucher sheet starts with one and continues for the whole day and next day again started from one. If all is done well, than accountant authenticates the two by signing on the two documents posting stamps on the slip. One part of the slip is given to depositor, and other part is given to clerk for further posting in Ledgers. The Cashier, at the end of the day has to maintain and balance the cashbook. The cashbook contains the opening balance, details of payments and receipts. The Manager of the bank signs the consolidated figures and written in cashbook as closing balance, which will the opening next day. Closing Balance = Opening Balance + Receipt - Payments draft until the goods have arrived, such deferred acceptance can extend the maturity date.
Ratio Analysis
Ratio analysis enables the analyst to compare items on a single financial statement or to examine the relationships between items on two financial statements. After calculating ratios for each year's financial data, the analyst can then examine trends for the company across years. Since ratios adjust for size, using this analytical tool facilitates intercompany as well as intercompany comparisons. Ratios are often classified using the following terms: profitability ratios (also known as operating ratios), liquidity ratios, and solvency ratios. Profitability ratios are gauges of the company's operating success for a given period of time. Liquidity ratios are measures of the short-term ability of the company to pay its debts when they come due and to meet unexpected needs for cash. Solvency ratios indicate the ability of the company to meet its long-term obligations on a continuing basis and thus to survive over a long period of time. Financial ratios allow for comparison: Between companies Between industries Between different time periods for one company Between a single company and its industry average
1. Net Profit Margin= Net income/Revenue *100 Year 2010 Amount in ---000---rupees =17742218/59331761 =29.90 % Chart no.1 Year 2009 Amount in ---000---rupees =14034501/61107025 =22.96% Year 2008 Amount in ---000---rupees =14052051/52763249 =26.63%
Interpretation: The Net Profit Margin for 2010 is higher as compare to the years 2009 and 2008. The NPM for 2009 is slightly low as compare to the year 2008. This is because the economic conditions for Pakistan changed very fastly.
2. Gross Spread Ratio= Net Mark up income/ Gross Income. Year 2010 Amount in ---000---rupees =26103808/34108508 =76% Chart No.2 Year 2009 Amount in ---000---rupees =20327864/32943238 =61% Year 2008 Amount in ---000---rupees =20762280/28515968 =72%
Interpretation: The Net Mark up income for the year 2010 is greater from the last couple of years. This is because the company is growing at a rapid at, and receiving more mark up ratio as compare to gross income.
3. Non interest income to income ratio= Non Interest income/income Year 2010 Amount in ---000---rupees =10120632/17742218 = 57.04% Chart No.3 Year 2009 Amount in ---000---rupees = 11419571/14034501 =81.36% Year 2008 Amount in ---000---rupees =11199152/14052051 =79.6%
Interpretation: The non interest income for the year 2010 is lower as compare to the years 2009 and 2008.
4. Spread Ratio= Interest Earned/ Interest Expense. 71 Internship Report
Year 2010 Amount in ---000---rupees =59331761/25223253 =2.53 Times Chart No.4
Year 2009 Amount in ---000---rupees =61107025/28163787 =2.17 Times
Year 2008 Amount in ---000---rupees =52763249/24247281 2.17 times
Interpretation: The interest earned is 2.5 times greater as compare to the interest expenses. The ratio is als higher for the year 2010 as compare to the recent years. This shows that the bank is strivivng towards success and controlling their expenses very well.
5. Return on Assets= Net Income/Total Assets. 72 Internship Report
Year 2010 Amount in ---000---rupees =11647044/694784989 =1.67% Chart No.5
Year 2009 Amount in ---000---rupees =10812174/619719433 =1.74%
Year 2008 Amount in ---000---rupees =12352021/620707389 =1.99%
Interpretation: The ROA for the year 2010 is lower as compare to the year 2009; this is because of Flood in Pakistan faced by our country. The 30% area of the country is swearly affected by flood; So The Bank would not Able to cover back the ROA ratio.
6. DuPont Return on Asset Ratio = (Net income /Sales)*(Sales/Total Assets) Year 2010 Amount in ---000---rupees Internship Report Year 2009 Amount in ---000---rupees Year 2008 Amount in ---000---rupees 73
=(11159930/59331761)* ( 59331761/698784979) =1.59 % Chart No.6
=(9192687/61107025)* (61107025/619716433) =1.48%
=(8445251/52763249)* (52763249/620707389) =1.36%
Interpretation: this Ratio is also increased during the calendar year of 2010.
7. Return on Equity=Net Income (after tax)/ Shareholders Equity. Year 2010 mount in ---000---rupees =11159930/60180924 Year 2009 Amount in ---000---rupees =9192687/52276246 Year 2008 Amount in ---000---rupees = 8445251/47121165 74 Internship Report
=18.54%
=17.58%
=17.92%
Chart No.7
Interpretation: The ROE for the year 2010 is greater as compare to the recent years.
8. Debt ratio= (Total Liabilities/Total Assets) Year 2010 Amount in ---000---rupees =(630369914/698784979) =90.2% Year 2009 Amount in ---000---rupees =(558779710/619716433) =90.16 % Year 2008 Amount in ---000---rupees =571311725/620707389 = 92.04 %
Chart No.8
Interpretation: The Debt Ratio is almost same from year 2009, and year 2010. The total liabilities are above 90 percent of total Assets. Which are increased during year as compare to the year 2009, but lower from the year 2008.
9. Debt/Equity Ratio= (Liabilities/ Equity) Year 2010 Amount in ---000---rupees =(630369914/60180924) =10.47 Times Year 2009 Amount in ---000---rupees =(558779710/52276246) =10.68 Times Year 2008 Amount in ---000---rupees =571311725/47121165 =12.12 times
Chart No.9
Interpretation: The liabilities are above 10 percent as compare to the equity. The ratio is slightly lower from 2009, but is higher in 2008.
11. Advances/Deposits Ratio Year 2010 Amount in ---000---rupees =333732172/550645767 =60.60% Chart No.11 Year 2009 Amount in ---000---rupees =354091713/492036105 = 71.9% Year 2008 Amount in ---000---rupees =377945366/492267898 =76.66%
Interpretation: The Advances to the deposits Ratio is above 60percent for the year 2010 but is lower from the years 2009 and 2008. This is because The bank did not give too much advances.
12. Operating Cash Flow Ratio= Cash Flow from operation/Current Liabilities Year 2010 Amount in ---000---rupees =100070348/5045815 =19.83 % Chart No.12 78 Internship Report Year 2009 Amount in ---000---rupees =23099432/5147259 =4.487% Year 2008 Amount in ---000---rupees =1025033/5210870 =0.19%
Interpretation: The Cash Flow From Operating Activities to current liabilities is greater in year 2010 and much lesser in 2009 and 2008.
13. Dividend Per Share= Dividend over Period /Number of Outstanding Shares Year 2010 Amount in ---000---rupees =4896718/1224179 =Rs. 4 /Chart No.13 Year 2009 Amount in ---000---rupees =2782225/1112890 =2.5 /Year 2008 Amount in ---000---rupees =2
Interpretation: The Dividend per Share is significantly increased in year 2010 Due to the overall Good business activities of the bank.
14. Earning Per Share (EPS)= Net Income /Number of Outstanding Shares Year 2010 Amount in ---000---rupees =11159930/1224179 =Rs. 9.12 /Chart No.14 Year 2009 Amount in ---000---rupees =9192687//1112890 =8.26 Year 2008 Amount in ---000---rupees =8333120/1011718 =8.236
Interpretation: The EPS for the year 2010 is greater from previous years. This interpretation and increase in earning per share shows that bank is growing towards success are a rapid rate. Its profit is also increased more that 25 percent from recent calendar years. i,e,. 2009.
15. Price Earning Ratio = Market value of Share/EPS Year 2010 Amount in ---000---rupees =68.23/9.12 =Rs. 7.48 /Chart No.15 Year 2009 Amount in ---000---rupees =58.45/8.26 =Rs.7.07 /Year 2008 Amount in ---000---rupees =36.91/8.23 =Rs.4.48 /-
Interpretation: The Price Earning Ratio for the year 2010 is increases significantly from past years.
Horizontal Analysis
This technique is also known as comparative analysis. It is conducted by setting consecutive balance sheet, income statement or statement of cash flow side-by-side and reviewing changes in individual categories on a year-to-year or multiyear basis. The most important item revealed by comparative financial statement analysis is trend. A comparison of statements over several years reveals direction, speed and extent of a trend(s). The horizontal financial statements analysis is done by restating amount of each item or group of items as a 82 Internship Report
percentage. Such percentages are calculated by selecting a base year and assign a weight of 100 to the amount of each item in the base year statement. Thereafter, the amounts of similar items or groups of items in prior or subsequent financial statements are expressed as a percentage of the base year amount. The resulting figures are called index numbers or trend ratios. Formula = Current Year amount / Base Year amount * 100 Horizontal analysis, whilst simple to execute and useful to a certain extent, has its limitations. These limitations include: Being highly dependent on the selection of base year and the period under examination in the financial model. Horizontal analysis provides little insight into why the trend occurred in a financial model. Horizontal analysis does not provide insight into whether the trend in the financial model results was superior/inferior to some benchmark. Horizontal analysis does not address the challenge of negative numbers.
Horizontal Analysis of Balance Sheet

Horizontal Analysis (%) ASSETS Cash Balances with other banks Lendings to fin. institutions Investments 2006 100 100 100 100 2007 75 62 155 105 2008 83 82 219 94 2009 100 75 204 141 83 Internship Report 2010 113 77 163 114
Advances Operating fixed assets Other assets Total Assets LIABILITIES Share Capital Reserves Unappropriated profit Surplus On Reval. of assets Bills payable Borrowings Deposits and other accounts Liabilities against assets subject to finance lease Deferred tax liabilities net Other liabilities Total Liabilities
100 100 100 100 2006 100 100 100 100 100 100 100 100 100 100 100
122 103 125 104 2007 120 125 182 179 24 79 100 97 15291 108 104
143 105 194 117 2008 144 128 350 135 147 106 108 78 8179 115 117
154 282 162 138 2009 166 146 495 221 98 98 127 197 17467 134 138
187 263 233 148 2010 182 184 573 99 142 365 134 148 Nil 172 133
Horizontal Analysis of Income Statement

Markup/return/interest earned Markup/return/interest expensed Net markup/interest income Provisions against non-performing advances provision for/(reversal of) diminution in the value of investments provision against off balance sheet obligations bad debts written off directly Net markup/interest income after provisions NON MARKUP/ INTEREST INCOME Fee, Commission & brokerage income Dividend income Income form dealing in foreign currencies 2006 100 100 100 100 2007 161 157 162 161 2008 211 213 210 203 2009 241 258 234 312 2010 291 364 258 699
100 -132 -382 -22 201 100 Nil Nil Nil 28 100 70 16 122 Nil 100 127 136 270 628 100 167 220 229 206
100 100 100
97 135 119
121 227 132
133 256 103
155 226 393 84
Internship Report
Gain on sale & redemption of securities-net Investments classified as held for trading Other income Total non-markup/ Interest income Total income ( Interest + nonInterest) NON MARKUP/ INTERSET EXPENSES Administration expenses Other provisions written off Other charges Total non markup/ Interest expenses PROFIT BEFORE TAXATION Taxatio n Current Prior years Deferred
100 Nil
2,872 2,459 4,924 831 Nil Nil Nil Nil 100 20 72 17 142 100 113 146 163 198 100 146 191 203 203
100 100 100 100 100 100 100 100 100 100 100 100 100
126 615 763 129 159 145 -130 -1,852 110 205 155 95 181
151 -54 2,515 153 220 176 63 -394 161 275 329 90 300
160 521 207 161 234
205 2,318 7,042 219 192
168 238 46 Nil -2,058 26,831 156 130 307 544 86 422 250 769 287 502
PROFIT AFTER TAXATION Unappropriated Profit brought forward Transfer from surplus on revaluation of fixed assets on account of incremental depreciation Profit available for appropriation
Vertical Analysis
When using vertical analysis, the analyst calculates each item on a single financial statement as a percentage of a total. The term vertical analysis applies because each year's figures are listed vertically on a financial statement. The total used by the analyst on the income statement is net sales revenue, while on the balance sheet it is total assets. This approach to financial statement analysis, also known as component percentages, produces common-size financial statements. Common-size balance sheets and income statements can be more easily compared, whether across the years for a single company or across different companies. Vertical analysis is a technique for identifying relationship between items in the same financial statement by expressing all amounts as the percentage of the total amount taken as 100. In a balance sheet, for example, cash and other assets are shown as a percentage of the 85 Internship Report
total assets and, in an income statement, each expense is shown as a percentage of the sales revenue. In Vertical analysis, various components of the financial statements are standardized by expressing them as a percentage of some bases. Examples of common-sized statements include: Components of the balance sheet expressed as a percentage of total assets Components of the income statement expressed as a percentage of sales or revenue
Vertical Analysis of Balance Sheet

ASSETS Cash Balances with other banks Lendings to fin. institutions Investments Advances Operating fixed assets Other assets Total LIABILITIES Share Capital Reserves Unappropriated profit Surplus On Reval.of assets Bills payable Borrowings Deposits and other accounts Liabilities against assets subject to finance lease Deferred tax liabilities net Other liabilities Total 2006 17.07 9.00 1.90 27.00 39.91 1.66 3.46 100 2006 0.89 1.95 1.66 3.86 1.30 2.00 84.15 0.0031 0.01 4.17 100 2007 12.32 5.37 2.82 27.17 46.53 1.64 4.14 100 2007 1.02 2.34 2.89 6.61 0.30 1.52 80.22 0.0029 0.77 4.32 100 Vertical Analysis (%) 2008 2009 12.19 12.45 6.30 4.92 3.57 2.82 21.69 27.66 49.00 44.70 1.50 3.40 5.75 4.07 100 100 2008 2009 1.10 1.07 2.15 2.07 4.97 5.95 4.48 6.18 1.64 0.93 1.81 1.43 77.79 77.66 0.0021 0.0044 0.37 4.12 100 0.67 4.05 100 2010 13.02 4.69 2.09 20.88 50.50 2.96 5.45 100 2010 1.09 2.43 6.41 2.57 1.25 4.94 76.42 0.0030 Nil 4.85 100
Vertical Analysis of Income Statement

Markup/return/interest earned Markup/return/interest expensed Net markup/interest income Provisions against non-performing advances provision for/(reversal of) diminution in the value of investments provision against off balance sheet obligations bad debts written off directly Net markup/interest income after provisions NON MARKUP/ INTEREST INCOME Fee, Commission & brokerage income Dividend income Income form dealing in foreign currencies Gain on sale & redemption of securities-net Investments classified as held for trading Other income Total non-markup/ Interest income Total income ( Interest + nonInterest) NON MARKUP/ INTERSET EXPENSES Administration expenses Other provisions written off Other charges Total non markup/ Interest expenses PROFIT BEFORE TAXATION Taxatio n Current Prior years Deferred 2006 100 31 69 7 2007 110 34 77 8 2008 110 35 75 8 2009 119 40 79 11 2010 143 56 87 25
1 -1 -2 0 1 0 Nil Nil Nil 0 0 0 0 0 Nil 8 7 6 11 26 60 69 70 68 61
24 6 5 0 Nil 4 40 100
16 6 4 4 0 1 31 100
15 7 3 3 0 2 30 100
16 8 2 6 0 0 32 100
19 7 9 1 0 3 39 100
42 0 0 43 57 24 4 0 28 30 28
37 2 0 38 62 23 -4 1 21 42 30
34 0 1 34 66 22 1 0 23 43 48
33 1 0 34 66
43 5 1 46 54
20 28 1 Nil 1 -10 21 18 45 76 36 107 87
PROFIT AFTER TAXATION Unappropriated Profit brought forward Internship Report
Transfer from surplus on revaluation of fixed assets on account of incremental depreciation Profit available for appropriation
0 58
0 72
0 91
0 120
0 143
Bank Analysis with reference to commercial Banks listed on stock exchange Financial Position of Commercial Banks Registered in Pakistan Name of Commercial Bank Paid up Reserves Assets (Rs. Capital (Rs. Bn) 7.59 8.97 6.46 6.28 10.12 0.28 5.29 4.11 4.06 4.79 4 8 5 5.3 4.02 4.54 28.44 4.24 5.01 38.72 5.11 (Rs. Bn) Bn) As of June 2010 Deposits Advances Profit After (Rs. Bn) (Rs. Bn) Tax (Rs. Bn) 23.6 18.54 5.48 35.88 12.82 0.22 7.43 1.88 7.59 2.8 1.34 2.95 0.22 3.57 0.17 0.81 8.46 0.41 0.52 735.71 788.12 344.7 450.34 576.02 8.04 217.85 81.61 194.21 167.36 34.43 333.02 50.83 137.31 53.66 71.74 177.98 45.47 30.7 584.85 621.53 293.97 350.72 465.54 6.4 180.82 64.73 153.32 136.75 24.4 287.77 42.35 99.61 44.33 57.84 112.12 31.96 22.18 173.81 14.08 411.36 173.42 168.45 228.98 328.55 3.09 142.85 45.83 114.04 93.25 11.14 180.02 27.62 87.61 32.65 38.3 85.43 23.03 17.5 126.27 9.57 7.5 8.1 2.51 7.68 5.59 0.05 -2.63 0.47 0.05 1.25 0.11 1.69 -0.81 0.75 0.08 0.44 -0.73 0.43 -0.2 1.31 0.16 Earnings Branch Per share (Rs) 9.75 9.03 3.88 12.22 5.53 1.67 -4.97 1.13 1.01 2.61 0.27 2.12 -1.54 1.41 0.39 0.98 0.23 1.02 -0.39 0.34 -0.31 Credit
Network Rating (Nos) 1400 1249 757 1038 1100 38 272 90 155 203 34 231 55 111 41 111 240 69 31
Habib Bank UBL Allied Bank MCB United Bank First Women Bank of Punjab Soneri Bank Askari Bank Bank Al- Habib Bank of Khyber Bank Al- Falah Saudi Pak Faysal Bank KASB Bank Meezan Bank NIB Bank Mybank Atlas Bank Standard Chartered JS Bank
AA+ AAA AA AA+ AA+ BBB+ AAAAAA AA BBB+ AA AAA A A+ AAA A-
1.95 276.38 0.01 24.16
176 AA+ 11 A88
Internship Report
Habib Metropolitan 6.02 6.7 192.45 128.97 101.22 1.57 2.6 100 AA+
A stock exchange is a corporation or mutual organization which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. The securities traded on a stock exchange include: shares issued by companies, unit trusts and other pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. In Pakistan securities are traded on three stock exchanges which are Karachi stock exchange, Lahore stock exchange and Islamabad stock exchange. The financial position of commercial banks registered on stock exchanges in Pakistan, are shown in preceding page in terms of their: Paid-up Capital Reserves Assets Deposits Advances Profit after tax Earnings per share Credit rating
The best way to analyze these commercial banks is to analyze their credit ratings. The United Bank of Pakistan enjoys the highest credit rating amongst Pakistani banks; JCR- VIS Credit rating Co. Limited awarded highest standalone credit rating of AAA to UBL. The JCRVIS Credit rating Co. comments about UBL say a lot about the bank: The organization has been able to strategically manage and build on its competitive advantages which has translated into the strong and well managed improvement in profitability trend observed over the last few years, a substantial balance sheet of sound asset quality, and strong liquidity and capitalization levels
UBLs key strength remains its extensive outreach and a low cost, stable deposit base. Deposits are also guaranteed by the Government of Pakistan under the Banking Unitedization Act, 1974. There have also been significant improvements in the management practices of the bank and a focus on enhancement of systems and controls. In this regard the management has entered into an agreement for the acquisition of a core banking software which is likely to be implemented over the next few years. JCR-VIS believes that the current economic situation puts certain leading industrial sectors and the general consumer under financial stress. Therefore, the second half of 2008 and 2009 are likely to be challenging for the banking sector as a whole, in terms of maintaining growth, asset quality and profitability. The JCR-VIS Rating Process include following steps: 1. Signs agreement for an initial rating 2. Submits preliminary information materials 3. Conducts a preliminary study 4. Submits a detailed questionnaire to the issuer/client 5. Provides detailed information in response to detailed questionnaire 6. Conducts pre due diligence meeting analysis 7. Conducts due diligence meetings 8. Conducts post due diligence analysis 9. Brief for internal rating committee meetings is prepared 10. Sub Committee recommends preliminary/initial rating 11. Rating Committee decides the preliminary/initial rating 12. Discusses the rating rationales and rating issues with client 13. Notifies issuer of the preliminary/initial rating, deliberates on appeals by client, if any 14. Consents to release of preliminary/initial rating to the public in case of nonmandatory ratings 15. Releases the preliminary/initial rating to the press
Chapter 4
SWOT Analysis
Internal Strengths Ownership of Strong Group

The UBL is under the ownership of two very strong (financially) group (The Abu Dhabi Group & The Best way Group). The Chairman of the bank is His Highness Sheikh Nahayan Mubarak Nahayan who is leading role of Abu Dhabi Group. Abu Dhabi Group has also the ownership of Al-Falah Bank, and recently launched a GSM Mobile Network company named WARID TELECOM. In Pakistan the largest FDI (Foreign Direct Investment) is of the Abu Dhabi Group. 91 Internship Report
The Deputy Chairman of the UBL is Sir Mohammad Anwar Pervaiz (OBE) who is the leading role of Best way Group. This group has started its business in England and emerges in the top ten large business entities of England. This group recently installed the Cement Plant of Pakistan in Tehsil Chowk Saidan Shah District Chakwal. Sir Mohammad Anwar Pervaiz got the following Awards in the owner of his business achievements: 1) Order Of British Empire (OBE) 2) Knight 3) Hilal-e-Pakistan 5) Best Businessman Of the Year 6) Life Time Achievement Award (1992) (1999) (2000) (2001) (2003) Pakistan British Award From British Queen Elizabeth
4) Mir Khalil ur Rehman Husn-e-Karkardgi Award (2000)
Huge Deposits
The bank has stable growth in deposits since its emergence. The UBL is the second largest bank in Pakistan and because of its 45 years long existence it is the trustworthy bank in Pakistan and outside Pakistan.
Advances on Sound Basis

The loan facility provided by the bank is on sound basis. They have many checks and documentation that secure their money after advancing. With their strategy there are very less chances of non-recovery from the debtor.
Infrastructure
Because of its 1000 Domestic and 15 Overseas Branches they have very good infrastructure and are prevailing now outside Pakistan also. UBL continually looks for ways to become more efficient and to increase their profit margins.
Brands
UBL has launched their products and varied services with particular brand names that is now-a-days a competitive strategy in its own. They are launching same schemes that are already existent in the banking sector but because of giving them brand names they are creating unique identity. Their popular brands are UBL Wallet (ATM Card), UBL Address (house loan), UBL Drive (car financing), UBONLINE (online banking services), HAMRAH (traveler Cheque), Click N Remit, TezRaftar (remittance service) etc.
Fast Service
Another very important aspect of UBL is its fast service. Everything goes very quickly. If you are looking for a loan, or you want to deposit money or you want to pay your bills their services are so fast that they respond the customers very quickly. Like other banks customers do not have to wait for the long time.
Financial
UBL has financial strength as they are gaining profit from the advances that they provide to the organizations.
Services
UBL is providing lot of services to its customers like incase of remittances they have services like Click N Remit online service, TezRaftar is an other remittance service, UBONLINE is their online service. Money Gram is their service for foreign currency remittance from outside Pakistan and Hamrah is their service regarding rupee Traveler Cheque.
Promotion Criteria
The promotion criterion of employees is made up of passing the Diploma Examination of Pakistan Institute of Bankers (IBP).
Good Reputation
Because of its quality management, marketing, innovation in products and services they have established a good reputation in the banking sector.
INTERNAL WEAKNESSES
Centralization UBL is centralized. It means authority is not delegated to branch level. Manager cannot take initiative regarding different decisions such that for giving finance. Low Promotional Activity The majority of people are not well aware about the products of UBL. It is due to their very low services of promotional activity.
Low Motivation Level There is low level of motivation in the employees of the bank Reactive Approach UBL Management has opted reactive approach they respond to the market very slow and are reluctant to take initiative before the problem arise.
EXTERNAL OPPERTUNITIES
Mobile Banking 94 Internship Report
Mobile banking is a concept that has started to find its roots in the banking sector. So it is a big opportunity for UBL to avail this chance at big level. International Expansion Opportunities exist for expansion of UBL chains in the International Arena, in particular in Germany and Europe. Particular Invention must be given to the individual countrys customs and cultural practices to be successful. Trade Shows UBL should organize trade shows for the promotion of export for that they should finance the companies those who wanted to internationalize and wanted to introduce their product and services outside Pakistan. Liberalization Liberalization is a concept that in under discussion around the world as this is going to be implemented by WTO in a few years to come. With the liberalization many industries are expected to be open in Pakistan and with free trading lot of trade activity is expected. So keeping in view these perspectives there is great opportunity for UBL to be stronger.
Sociocultural An external opportunity exists in efforts to improve the social environment of local communities and society in general by offering innovative, community involvement programs.
EXTERNAL THREATS
Rapid Changes The rapidly changing environment in the banking sector and the quick response of the other banks to these changes can be a threat for UBL. 95 Internship Report
Customer Behavior What customer really wants is a difficult thing to identify as to identify the customer perception and its behavior is complex procedure. So the changing needs of the customer can be a threat for the banks. Governmental Policies Changing Governmental Policies an instability in Politics can be seen as a threat for the banking sector. Competition Competition can be the greatest threat for the UBL. As old banks have started changes and many new banks are emerging as a strong entity so UBL will face a strong threat from this competition unless the adopt pro active approach to handle these threats.
Chapter 5 Conclusions and Recommendations

Future Prospects of United Bank Limited
UBL expects its strong customer focus to drive the Banks future business strategy. On the domestic front, the Bank has already launched its consumer banking business. Increased investment is targeted in developing human resources, infrastructure and internal systems to support the aggressive consumer initiative and exploration of new avenues of revenue generation. The first step under this initiative is the launch of the Banks ATM / Debit Card, branded as UBL Wallet. Furthermore, UBL has introduced a full suite of innovative 96 Internship Report
consumer finance products designed to capture a significant share of the local consumer financing market and tap into the current growth in demand for such financing.
Conclusions
The UBL is growing rapidly in the banking sector in Pakistan. It has currently largest Online branches in urban areas , and also developing its structure in rural areas too.. As the technology Advances the UBL also making it self fast and accurate in coming years the UBL is looking for the better infrastructure in banking in Pakistan. As the World is going forward towards technology and advancements, the UBL also going step by step with all the organizations. It has a good banking Structure, and very fast and effective network.iconcluded that it is the good banking for rural customers as well as urban customers, there are need of areas to be established and worked. My Experience during internship was great and full of learning. I learned A lot from the GMAbad branch.All the Staff members give Great respect and honor, and every person want to teach me whatever he knows. And know when I made my internship, my mind cleared all the duobts which I left during my internship.
Recommendations
The overall organization is very good and results oriented, but I feel there is a need of improvement in some areas. There is not so much strictness about works the employees performed. Every one not want to do his work properly, he always take interests in others work. There is not an equal distribution of work, according to the designation of the Employee. If there is proper checking of work of the employees then they would be very efficient in their work. Lack of facilities to the employees, take the employees mind to their private and they will not be able to perform well. If proper facilities are providing to them and they have no tension of child feed, then they would be able to work efficiently.
All the members of Staff are not motivated by the seniors. The attitude of Staff is not good with the customers. There is a Need of improvement in the attitude of the staff. UBL boosting from its privatization, but after that there is not so much care is taken, as it was expected. The Organization is creeping towards success, but the competing organization from UBL is running towards success. IF UBL make policies according to the customer needs and customer affordability then, the bank will successively run in towards new age. The online System of the bank should improved, it is much better in urban areas, but very poorly operate in rural areas. The service charges are too high as compare to other Commercial banks. The interest margin is also increased, because the customers are receiving more mark up with less installments that why UBLs credit section is not, profiting effectively.
SWIFT MECHANISM
SWIFT mechanism is gaining importance for the treatment of LC and it has been found that UBL has only provided SWIFT facility at its head office not to all the authorized dealers dealing with foreign exchange in their branches. To save the precious time of the prestigious for LC in their Central branches inside the country. TO AVOID CUSTOMER DEFECTION During my time period that I spent in foreign exchange department I found in their registers that many firms were defecting means those who were first loyal to UBL for the operations of opening LC were not viewed in the list for a longer period of time. To avoid their 98 Internship Report
defection whether it is partial or full relationship should be created by giving a phone call. It will make betterment in UBL s goodwill and their profits. REDUCE COMPLEXITY IN ADVANCES While providing advances the mechanism that is opted by UBL is to provide facility and renew it after a year. In the renewal whole procedure is followed again that was opted at the start. Lot of documentation get not only employee confuse but even customer avoid that. This can be the reason for UBL having low ratio of advances as compared to their deposits. So UBL should finish the method of renewal but keep checking the performance of the organization by having relationship. INTERNATIONAL EXPANSION UBL has internationalized already and is performing very well in its abroad branches. But UBL has internationalized to few countries. They have big markets ahead of them and with their working activity will get simpler with that. In the form of European countries and markets like CHINA where there is lot of activity related to banks they can expand their chains. 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. In case of consumer financing UBL has respond by having same schemes that have been already launched by their competitive e.g. car financing and housing schemes are responded but very late by the UBL. UBL should try 99 Internship Report
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. RELATIONSHIP 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.
BUSINESS PARTIES UBL should start thinking about relationship with the parties that are willing to do the business with the bank. Business in the form of deposits for a longer period of time. Rather than looking for small parties whose purpose is just to deposit in the morning and have withdrawal in the evening should be discouraged. Lot of time in work activity can be saved by having few but good parties rather than having huge accounts of small amount and specially those are not for the purpose of long term deposits. CHANGE ATTITUDE 100 Internship Report
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 like ALFALAH and UNION BANK. They should start thinking about changing their attitude from now. Performance Appraisal & Compensation Employee appraisal is an major part good and effective HRM. It consist of systematic evaluation of an individual with respect to his personal traits and characteristics, his on job performance and his potential for development. In Unite Bank Limited there is no appraisal system exists. No relationship has so far been established between appraisal and staff motivation. No weight is assigned to appraisal in making decisions on promotions, postings, etc. Compensation is a necessary thing for employees satisfaction. And UBL has not any proper compensation plan when ever management decide to give bonus or extra salary to employees it is followed. So there should be proper compensation plan.
Product Marketing
This is age of competition and every organization is facing hard competition from not only domestic organization but also from the international organizations due to globalization. Due to this competition the marketing department plays a vital role in the success of the organization. UBL should have a strong marketing department like many other private banks have, for the publicity of their products and make well inform the customers all the services provided by the bank and to conduct detailed market researches to find out new opportunities, needs of the customers and make comprehensive plans to capitalize those opportunities. 101 Internship Report
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.

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EXECUTIVE SUMMARY

COMMERCIAL BANKING IN PAKISTAN:

FUNCTIONS OF A COMMERCIAL BANK

4. CHEAP MEDIUM OF EXCHANGE

6. CUSTODIAN OF PRECIOUS ARTICLES

10. FACILITATING TRADE ACTIVITIES

11. PURCHASE AND SALE OF SECURITIES

12. ACTING AS A TRUSTEE

bank performs this responsibility.

13. HOME SAVING ACCOUNT

Chapter 2 INTRODUCTION OF UNITED BANK LIMITED

Province/Area Sind Do Punjab Do Do Do NWFP Baluchistan Azad Kashmir

Domestic Network of Multan Region

AGRICULTURAL LOANS 16 Internship Report

ORGANIZATIONAL STRUCTURE OF UNITED BANK LIMITED Organization Chart at Branch Level

Area Manager (A.M)

Branch Manager or Area Operational Manager

Cash & Clearing

Bills & Remittances

Senior Executive Vice President

Executive Vice President

Senior Vice President

Assistant Vice President

Treasury & Capital Market

Human Resource Mgt.

Audit & Inspection

Service & Quality

Chairman His Highness Shaikh Nahayan Mabarak Al

Deputy Chairman Sir Mohammed Anwar Pervez OBE 21

President & CEO Mr. Atif R. Bokhari

Director Mr. Omar Ziad Jaafar Al Askari

Director Mr. Zameer Mohammed Choudrey

Director Mr. Ahmad Waqar

Director Mr. M. Tahsin Khan Iqbal

Mr. Atif R. Bokhari President and C.E.O 23 Internship Report

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 Support / Collections Head

Mr. Mohammad Asghar Group Commercial Bank Head

Mr. Ali Sameer Group Head SAM

MISSION OF CORPORATE BANKING

4-HUMAN RESOURCE DEPARTMENT

Monthly Statement of Staff Disciplinary Action Cases

6- AUDIT AND INSPECTION

Salary slip/ Salary Certificate (in case of the Employed Applicants) 31

proof), in case of Self Employed Applicants

your monthly net take home income is Rs. 25,000

These are classified as following.

General Utility Services

can withdraw small amount of balance.

FIXED OR TERM DEPOSITS

OPENING OF THE NEW ACCOUNT

Individual Current Account

DIFFERENCE BETWEEN MANAGER & MANAGER OPERATIONS

ACCOUNTS DEPARTMENT ACCOUNTS DEPARTMENT

IV. Monthly General Ledger Liability

Preparation of Different Statements

COLLECTION & CLEARING PROCESS

3-cheque 6-Credit Advice For Collection

SBP Multan Clearing House

PAY ______________ OR BEARER RUPEES REMITTANCES DEPARTMENT RS. _