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Virtual Universityof Pakistan
Evaluation Sheet for Internship Report
Spring2010
MISI619: Internship Report (MIS) Credit Hours: 3
Name of Student: FarkhandaJ abeen
Students ID: MC070400091
Supervisor: _______________________________
Evaluation Criteria Result
Written Work Status
(Internship Report)
Pass
Presentation & Viva Voce
Final Result
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Pass
*****786*****
Internship report
On
United Bank Limited
SUBMITTED BY:
Farkhinda Jubeen
MC070400091
Fall 2010
Date of Final Report: 04/09/2010
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Virtual University of Pakistan
Letter of Undertaking
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Scanned copy of internship certificate
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Dedication
To my Parents
Who loves me and pray for me.
And
Those who are my well wishers
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Acknowledgement
By the grace ofALLAH the Almighty and the benevolence of Prophet MOHAMMAD
(P.B.U.H) I have been able to present this internship report.
First of all, I am thankful to my Allah who made me able for writing this report and
providing me the chance to work in the united bank limited. In fact this was a dream for
me to work in the UBL.I am glad to have it with UBL where you come first, only if you
are the costumer .Thirst of learning is inside you and whatever the environment, if you
are willing to learn, you do. At UBL, I had a new, challenging, yet a perfect environment
to learn .My parents prayers and their teaching were always with me and hereby I will
like to take this opportunity to show my gratitude to all those who made my internship an
adventurous outwit.
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Executive Summery
The banking sector in Pakistan comprises of the following types:
State bank of Pakistan
Commercial bank of Pakistan
Exchange banks
Savings banks
Cooperative banks
Specialized credit institutions
The state bank of Pakistan is the central bank of the country and was established on July
01, 1948. The network of bank branches now covers a very large segment of national
economy. The state bank of Pakistan issues the shares of these periodically. Bank
employees and other common peoples can also purchase these shares and can earn profit.
This report is based on internship in United Bank Limited branch machianwala, cod
is1360. It is a prominent and reputed bank of Pakistan. United Bank Limited maintains
good position in banking sector of Pakistan. This report is based on the activities which
are performed in the bank. This report contains organizational structure, critical analysis,
ratio analysis, competitive analysis, SWOT analysis, bank tariff and exchange rates of
United Bank Limited. There are also stated the activities which I performed during my
internship in the branch. The industry analysis of banking system in Pakistan is also
discussed in this report. There is also the way of investment, rates of investments, all type
of financial and loan facilities the United Bank Limited provides. The problems in the
branch are also discussed. This report also intimates about the daily reserve which are
required by the branch to meet the need of its daily transactions.
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Table of Contents
PART ONE
1. Overview of the organization 8
a. Brief history 8
b. Nature of the organization 8
c. Business volume 9
d. Product lines 10
e. Competitors 17
f. Brief introduction of the branch where you did your internship 17
2. Organizational structure 19
a. Organizational Hierarchy chart 19
b. Number of employees 20
c. Main offices 20
d. Introduction of all departments 20
e. Organizational management analysis (OMA) 23
PART TWO
1. Training program 24
a. Plan for internship program in tabular form 24
b. Detail description of the tasks assigned to you during internship program25
2. A. structure and functions of the MIS department 26
a. Department hierarchy 26
b. Number of employees working in the MIS department 27
c. Major responsibilities and functions of the MIS department 28
d. Support of other departments 29
PART THREE
1. Critical analysis 30
a. Compare and evaluate the organizations current strategies with the organizations
Vision and Mission statement
b. Compare your theoretical concepts with the current practices being carried out by
the organization in its various departments to perform various functions
2. SWOT analysis 33
3. Internal Factor Evaluation Matrix 35
4. External Factor Evaluation Matrix 36
5. Threats Opportunities Weakness Strength Matrix (TOWS) 37
6. Competitive Profile Matrix (CPM) 40
7. BCG Growth-Share Matrix 42
8. Porter Five Forces Analysis 43
9. Ansoff Growth Matrix 45
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PART FOUR
1. Conclusion 48
2. Recommendations 48
SUPPLEMENTARY PART
1. Reference & Sources used 49
Annexes 49
1. Overview of the Organization
a. Brief history
Agha Hasan Abedi founded the bank in November, 7 1959 and incorporated as a Public
Limited Company under Companies Act 1913 with authorized capital of Rs.20 million
and Paid-up capital of Rs.10 million. In its very first year, it mobilized deposits of Rs.70
million and earned a profit of Rs.O.7 million. It continued to grow rapidly and soon
became one of the largest banks in the country.In 1971 the Government of Pakistan
nationalized it. In 2002, the Government of Pakistan sold it in an open auction to a
consortium of Abu Dhabi Group and Bestway Group. Since its privatization the bank has
been successfully turned around and remains a robust and strong performer in all major
segments of its operations.
In 2002 it merged its operations in the UK with those belonging to National Bank of
Pakistan to form United National Bank Limited, of which it owns 55%, with National
Bank of Pakistan owning the remainder.
One of the largest banks in Pakistan with over 1400 domestic branches all over Pakistan and
many overseas branches. UBL hold 51% of its total shares other 49% shares are owned by
Government. After the privatization of banking sector in Pakistan UBL implemented its
strategies to achieve the comparative advantage in the Market place. UBL due to its
innovative corporate culture wins their customer trust. UBL is running four websites to
provide information and customer services which are:
www.ubl.com.pk
www.ublonline.com
www.ublfunds.com
www.ublinsurers.com
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b. Nature of organization
The groups principal activities are to provide commercial banking and other financial
services. The group offers personal banking, cash management, retail loans and other
financial services. United bank ltd, is a scheduled bank and performing the commercial
banking activities. UBL today, is the one of the major bank of Pakistan in term of deposit
and advances with a huge domestic and international network
Business Activities
i. Corporate finance
This section includes investment banking activities like mergers and acquisition and
privatization.
ii. Trading and sales
Banks treasury and money market and capital market included in this section.
iii. Retail banking
This banking provides many services to their customer. Small borrowers for example,
small, medium enterprises and agriculture sector. The loan, deposit and other transaction
with retail customers are also included in retail banking.
c. Business Volume
Share Capital
UBL has number of shares 1012 millions at the end of September 30, 2009. it has
reserves of 1806 billions rupees. It has assets of more than 620 billions and advances in
Pakistan rupees 400 billions owns. UBL has market shares of 9.6% and have a good rate.
It has 500 billions rupees deposits. Earning per share is 8.5. UBL posted a consolidated
profit before tax of Rs. 10.6 billion for the nine-month period ending September 30th
2009 which is 25% lower from the same period last year. The decline was primarily
owing to higher provision on advances and provision required on impairment for
investments. The Bank followed a deliberate strategy of reducing high cost deposits
while concerted efforts were aimed at strengthening low cost deposits. This resulted in
increasing our domestic CASA (current and saving accounts) ratio from 68% at
December 31, 2008 to 75% at September 30, 2009. Low cost deposits increased by 5% in
the nine months to September while expensive deposits declined by 20%. Consequently,
total deposits of the bank are down 6% to Rs. 464 billion.
Consolidated profit after tax at Rs. 6.9 billion translates into diluted earnings per share of
Rs. 6.22 (September 2008: Rs. 8.06). Higher provisioning has significantly impacted
results as is evident from a pre-provision operating profit increase of 10% over the same
period last year. Net interest income before provisions grew by 15% on account of higher
Kibor rates and a 9% increase in average advances. However, non interest income (incl.
associates income) came in 5% lower than the corresponding period last year at Rs 9.1
billion mainly on account of lower commission on consumer loans and reduced foreign
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exchange earnings. Operating revenue for the nine months to September came in higher
by 9% at Rs 34 billion compared to the same period last year. Net interest margins
(NIMs) remained strong at 6.4% owing to higher interest rates and attractive returns on
the investment portfolio. However, NIMs on a year on year basis were impacted by an
increase in the cost of deposits as a result of SBP regulation of 5% minimum rate of
return on saving deposits which came into effect in June 2008.
Net interest income after provisions came in 13% down from the same period last year at
Rs 15.2 billion. Provisions are up by Rs. 5.5 billion to Rs 9.6 billion this year owing to
the on-going stress on the domestic and the Middle East loan portfolios. However, the
provision charge taken this quarter is lower than that of last quarter which is an indication
of the reduction in new NPL formation. The charge taken this quarter further consolidates
the provisioning taken on our existing non performing portfolio. The provisioning
expense also includes Rs. 853 million charged on account of impairment loss taken on
the equities portfolio. Non-interest income at Rs. 9.1 billion is 5% down over the same
period last year largely as a result of the slowdown in local and global economic activity
and reduction in trade volumes across the board. Fee income is down due to reduced
investment and acquisition financing activity in the corporate sector.
Commissions on consumer loans declined by 35% owing to net attrition in the lending
portfolio given the high risk and sluggish market conditions. Exchange income is down
by 61% due to reduced volatility in the Pak rupee and reduction in trade volumes as
compared to that of last year. Administrative expenses increased by only 8% over the
same period last year which is partly due to the devaluation of the rupee (YTD Sep08
average at Rs. 67/USD, Sep09 at Rs. 81/USD) which impacted the expenses of the
international operations. Excluding devaluation, administrative expenses are only up by
5%. In spite of high inflationary pressures, we have managed to improve cost efficiency
across the bank and to limit operating costs from increasing sharply. The Bank achieved a
stabilized cost/average asset ratio of 2.7% on a year on year basis despite a reduction in
total assets. Total assets of the consolidated bank have decreased by Rs. 6 billion to Rs.
614 billion during the first nine months of the year mainly owing to advances declining
by Rs. 16 billion to Rs. 362 billion.
d. Product lines
Services
Consumer Banking
Commercial Banking
Corporate Banking
Investment Banking
Treasury Banking
UBL Ameen Islamic Banking
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UBL Drive
UBL Drive is a unique auto financing product which offers you features, options
and flexibility unmatched by any other bank, because at UBL, You come first
Drive the way that suits you!
i. New Car Financing
UBL Drive allows you to drive away in your own car by making a down payment
of just 10% and to top that with low monthly installments.
ii. Used Car Financing
With UBL Drive you can buy your favorite used car (up to 5 years old) at the
most affordable rates.
iii. Cash Your Car
UBL Drive is not just a car loan; its a financing facility that gives you Cash on
your car, you can get up to 75% of your car value. Drive in with your car and drive out
with cash.
iv. No Down payment before approval
UBL Drive is the quick and hassle free route to the car of your choice. Offering
you for the first time in Pakistan, No Down Payment and processing charges till your
application is approved. After approval, you can take your Purchase Order to any of our
authorized dealers, pay the Total Cash Outlay amount and simply drive away with your
preferred car.
v. No Documents Required
UBL Drive offers you the option of auto financing without requiring any income
documents/proof at 5% additional equity.
The UBL Credit Card
Welcome to the world of UBL Credit Cards. Pakistans 1st Chip Credit Card,
which 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
i. The UBL Credit Card ..Mazay Mein Raho.
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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.
ii. The UBL Chip Rewards
No more tedious points to accumulate or boring catalogues to redeem from. Win
your prizes instantly!
Visit selected UBL Chip Reward outlets and get exciting gifts on the spot. The more you
visit, the more you get.
All you do is Dip the Chip to win free meals, free household goods, free electronic items,
free clothes and a lot more.
A Choice of Rewards
Along with exciting Chip Rewards you has a choice between Free Road Miles and Free
Talk Time.
iii. Low Balance Transfer Rate Save big time
Now you can really save big time with your UBL Credit Card Balance Transfer
Facility!. You have the opportunity to pay off balances you owe to other banks through
your UBL Credit Card on a low balance transfer rate.
Your UBL Credit Card offers a low rate for BTF of outstanding balances from other
cards at only 1.75% per month.
Transferring your balances to your UBL Credit Card is simply a phone call away.
VISA Debit Card
UBL Wiz is Pakistans first ever Prepaid VISA Debit Card that provides the
convenience, security and benefits of an ATM and Debit Card, locally and
internationally. More than just an ATM card, you can use your UBL Wiz everywhere
VISA cards are accepted. Whether you are using it online, paying for petrol, shopping or
dining, you are accessing money directly from your prepaid card, without having to visit
the bank.
Buying a home
Why rent when you can buy? Buying a home of your choice has never been so
easy.
With a maximum financing limit of 80% you can easily buy a house or apartment that
best fits your requirements. So go ahead and start the search for your dream home
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because with easy and affordable installments you need not think of renting a house when
you have hot UBL Address.
UBL Business Line
UBL Business lines a complete solution to all your Business
Financing needs. With UBL Business Financing facility, you can now take your business
to greater and newer heights, and achieve the level of success that you truly deserve.
UBL Business line is a running Finance facility that not only provides funds for growth
but also enables you to capitalize on profitable opportunities.
With UBL Business line, now you will surely say. Ab Hui Kamiyaabi Meri Manzill.
Now, UBL Business line credit line is here to solve all your cash flow problems. You can
utilize up to Rs.10 million with the help of which you now focus on your business
expansion and growth.
UBL Cash line
UBL Cash line is a flexible loan that provides you cash up to Rs.500,000 without
any security requirements. It empowers you to take control of your finance. UBL Cash
line is aimed to make your life easierZINDAGEE ASAAN. Whether you are a salaried
individual or a businessman, UBL Cash line takes care of your cash requirements.
UBL Money
UBL money, the personal installment loan from UBL provides you with power,
Control convenience and the flexibility to manage your financial requirements and realize
on your dreams.
Its about buying new furniture or marriage expenses, financing the education of your
child or enjoying vacations abroad! UBL Money caters your needs handsomely. You can
borrow any sum between 50,000 to 500,000 (PKR) and payoff up till 5 years. We know
what you need at what time. Just give us the opportunity and let us serve you best.
UBL Address
Owning a house of your very own is a cherished dream. A lot of planning and
hard work is involved in making this dream come true. That is why, at UBL we aim to
make your decision easier, by offering you the right ingredients that can help you realize
your dream with absolute convenience.
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UBL Address empowers you to become the proud owner of a home by offering a variety
of product and pricing options that are flexible yet affordable. So choose the best product
option and pricing to suit your needs. All product options are amortized and range over a
tenor of 3-20 years.
UBL Credit Card
Welcome to the world of UBL Credit Cards the most exciting and vibrant credit
card brand in Pakistan. We offer you a range of innovative and exciting cards that is not
only powered by the security of chip but also enable you to personalize it any way you
want
UBL Wallet
UBL Wallet, now with the power and international acceptance of VISA!
Your Wallet VISA ATM & Debit Card has all the convenience and security you desire
and the quality you deserve. This Wallet holds all the cash in your bank account.
UBL Profit COD
Now you can earn a higher income on your surplus cash by investing it in UBL
Profit Certificate of Deposit. UBL Profit helps you earn extra income with your hard
earned money, while providing absolute trust and security.
UBL NET Banking
UBL net banking is an Internet Banking portal offering a simple, convenient and
secure method of accessing bank accounts on the Internet.
Using UBL net banking, the customers have access to their bank accounts 24 hours a day,
7 days a week and can keep a close eye on their account balances, print account
statements, pay bills, transfer funds, track purchases and schedule their recurring
payments at the touch of a button and much more.
UBLFunds Investment
Now all UBL Netbanking customers can make their UBL Fund Managers
investments with a simple click. UBL Fund Managers has added Netbanking as another
channel to further facilitate its valued customers in making their timely investments.
Using UBL Netbanking, customers can make their subsequent investments in the
following UBL Fund Products:
UBL Liquidity Plus Fund
United Composite Islamic Fund
United Growth and Income Fund
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United Islamic Income Fund
United Stock Advantage Fund
UBL e-statement:
UBL is pleased to announce the launch of the UBL e-statement facility which it
easier for you to get your statement of accounts and automated transactional debit/credit
alerts right into you inbox.
Hamrah:
UBL has always been adding the forefront in identifying and meeting the
financial needs of its valued customers. UBL was a pioneers an introducing Rupee
Travelers Cheque facility in Pakistan, as early as 1971. In continuation of the same
tradition, UBL in the shape of, HAMRAH Rupee Travelers Cheque enhances this
facility for the convenience of its valued customers by offering denomination up to
Rupees 10,000.
UBL has a 24 hours customers help-line, providing its customers with round the clock
tele-verification of HAMRAH Rupee Travelers Cheque.
Commercial Banking
To stand tall among the worlds leading banks, UBL has developed a YOU
attitude to understand its customers well. When you talk, we speak for you. For small and
middle size investors, UBL has so much to offer, so much to deliver. You live the way
you want; we will always be shadowing you. Walk in to any nearest branch of UBL,
enter the world class bank and let us serve you with what you need.
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.
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As more and more people start their own industrial units, the country will move steadily
towards economic self-reliance.
Investment and Saving Accounts
At UBL, we offer you the most beneficial and secured financial investment and
saving options. You can choose from the following list of accounts anything that serve
your needs best.
UBL Basic Banking Account
Exempted from Minimum Balance charges, UBL BBA holders can carry out two
deposits and two withdrawals each month as per the bank policy. Through 24hrs ATM
services, they can carry out transactions as and when desired, staying in the daily
withdrawal limit.
UBL Business Partner (Current Account)
For our regular customers, we offer the ultimate option, UBL Business Partner
(Current Account). With unlimited deposits and withdrawals, we offer you convenience
of UBL net banking, UBL Wallet, UBL Orion and other exciting consumer products.
Customers are liable to maintain minimum balance of Rs. 10000 to avoid the minimum
balance charges until and unless they are exempted from it. Remember! We are not just a
business; we are your caretakers; we know what you need.
PLS UniSaver
Let your savings earn you bucks. PLS UniSaver offers you semi annually profit
disbursement with profit being calculated upon average monthly balance.
PLS UniSaver Plus
Big amounts earn you big; but with PLS UniSaver Plus, we make it bigger for
you. With deposits starting from Rs. 25 million, we offer 5.00%.
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UBL Rupee Transaction Account (PLS Saving)
Have your money box at UBL! Put in your savings and let us earn you 5% p.a.
over your daily savings.
UBL UniFlex
Have couple of thousands spare? Come invest in our UBL UniFlex Accounts, we
will make you earn handsome.
With UBL UniFlex, we serve you with fix profit rates at maturity.
E-Transaction (Current Account)
In the era of glooming computerization, even Chicago, Tokyo, Sydney, all are
seconds away from you. Internet has turned distance into time, and we have turned your
account into a shear pleasure. Now sitting at home, or at office or anywhere in the world,
we offer you a wide spectrum of world-class electronic services and banking products
each time you log in. Use your account like a regular account plus use the premium
Internet & Mobile banking services for Instant Fund Transfers, Instant Shopping, Instant
Bill payments, Instant Mobile top ups, Alerts, Statements and much more. You love
surfing, come surf with UBL.
Complementary Services
Insurance Certificate
UBL not only cares about you, we care about those too who are dependent upon
you. So UBL now offers enhanced Free Accidental and Disability Insurance Certificate
coverage to all existing and new account holders. .
UBL Orion
Buy W100! (Message tone)
Dear customer your voucher # is 1456894525796324
Thank you for using Orion
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Your finger tips might have not been that powerful before. Just type in commands
and at your ease, buy mobile cards and pay your utility bills. With UBL Orion Mobile
Wallet, running around for mobile cards and queuing to pay your utility Bills is no longer
a part of your life. Live your life at your finger tips.
e. Competitors
The major competitors of UBL are following:
Allied Bank limited
Muslim Commercial Bank
Habib Bank limited
National Bank of Pakistan
f. brief introduction of the branch where you did
the internship
I did my internship from UBL,Machiwal (1360).this branch is situated in machiwal 15
km far from district Vehari. This branch is located on a very attractive place on the
Multan Road. This is why, the customers like to go inside and want open their accounts.
This branch belongs to Sahiwal zone. The manger of the branch is Iftikhar Ahmad
Shaheen. It has a new splendid building. It has 9000 account holders. This branch has a
good and efficient staff. It deals with accept deposits, remitting of funds, online banking
and loan facility. This branch facilitates the customer about banking transaction. My area
belongs to agriculture sector and the branch also facilitate farmer about agriculture loan
and other machinery for their fields. This branch has a well managed staff.
This branch has a following setup:
Branch Manager Iftikhar Ahmad Shaheen
Operation Manager Tariq Mehmood
Cash Officer Atif Hussain
Teller1 Mr.Razwan
Teller2 M. Jawad
Messenger Toseef Ahmad
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2. Organizational Structure
a. Organizational Hierarchy chart
President
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Board of Directors
Mr. Atif R. Bokhari (President and CEO)
Mir Muhammad Ali, CFA- (Chief Executive Officer)
Ashfaq Hassan Khan (Director)
Mr.Aameer karachiwala (Director)
Mr.Mohammad Asghar (Director)
Mr. Ali Sameer Farooqui (Director)
Mr.Hassan Raza (Director)
Mr.Saeed Iqbal (Director)
Chairman:
Nahayan mabarak al Nahayan
Mr. Muhammad Anwar parvez (Deputy chairman)
b. Number of Employees
Total numbers of employees are 9041 according to the calculation of January 2009.
Group head
Investing Banking
Head Project and
Structured Finance
Head Syndication and &
DCM
Head equity and
Advisory
Transactor Manager/Tra
nsactor
AVP/
Transactor
AVP/
Transactor
Manager/
Transactor
Transactor
T ransactor/Re
search
Analyst
Transactor Manager
Transactor
Asset Manager
Trustee
Function
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c. Main Offices
Head office:
State life Insurance corp. Building # 1,
I.I.Chundrigar road Karachi Pakistan
Associated Company
Oman United Exchange Company, Muscat
UBL Insurance limited
Registered Office
13 floor, UBL Building, jinnah Avenue, blue area Islamabad Pakistan
d. Introduction of all departments
Deposit department
Deposit is main and important function of any bank and also a primary function of
commercial banks. Main objective is getting the money from people and provide some
benefit to the customer in the form of mark up. Following are main accounts of UBL.
UBL Business Partner
Rupee Trans A/C
Basic Banking Account
UBL UniFlex
UBL Unisaver
UBL eTransaction
Certificate of Deposit
Regular Term Deposit Receipts
FCY Savings
FCY Term Deposits
UBL First Minor Saving Account
UBL Business Partner Plus
PLS saving account
Term/fixed deposit account
Current account
PLS account provides a facility to share profit and loss with the bank and fixed deposit
accounts provides high profit but it has a limit of fix period of withdrawing the amount.
In the last, the current account did not provide profit and the customers can withdraw the
amount without any restrictions.
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Functions performed by deposit department
Account opening
Completion of form
Introduction
Specimen signature card
Account number
Issuance of a cheque book
Entry of cheque book
Filling the account opening form
Maintaining the computer record
ATM/Debit card issuance
Customer service department
This department is responsible for the customer satisfaction. Many customers need help
in transactional process, so this department helps the customers. It is responsibility of the
department to be courteous to the customers and give full attention to the customer.
SERVICES
Signature Priority Banking
UBL BetterLife Bancassurance
UBL Wiz
UBL netbanking
UBL e-statement
Hamrah
UBL Wallet
Charity and Donations
Comments & Suggestions
Complaint handling
All complains should be directed to the CRM and it is the responsibility of CRM to solve
the problem soon as soon possible. The CRM can report the problems to the branch
manager and also note the complaints on a special complaint register or the CRM can
create a complaint box for the public.
Remittance department
Remittance means transferring the amount from one place to other. UBL deals the many
services for their customers. Bills for collections include inward bill for collection and
outward bill for collection. Suppose a customer of UBL machiwal deposit a cheque
drawn in the name of Habib bank ltd Lahore mall road branch, now the UBL machiwal
will send this cheque to the main branch vehari for collection from Habib bank ltd
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branch. Now the UBL vehari branch will collect this cheque from Habib bank branch
through clearing and will remit the amount to the UBL MACHIWAL branch it is called
the inward bills for collection.
When any branch of UBL sends a cheque or DD to main branch of UBL in
another city from collection from any other bank, it is called outward bills for collection.
The remittance can be made through DD demand draft, TT telegraphic transfer, PO pay
orders and SBP cheques.
Home Remittance
UBL Click n Remit
TezRaftaar
DD/ Demand draft
We can say a DD is a kind of cheque. It is issued by UBL to other banks or other
branches of UBL on the demand of the customer. DD is a safe method to transfer from
one place to other. The amount and the name of person is mentioned on it.
TT/ Telegraphic transfer
Its similar to DD but the difference is, a message is sent to via fax or paper like that. It is
also used to send money from here to there. Some forms are filled to making TT.
PO/Payment order
PO is issued by the bank and payable on itself. Customers can easily transfer the money
from one person to another in the same city. The commission is also written on the
payment order and the amount of commission is paid by customer.
Advance/Credit department
This department provides the loans to the public and gets interest on the loans. It is
responsibility of this department to examine the business condition of the borrower and
reputation of the business and then provides the loan. This department also allow
customer to overdraft. Overdraft is an excessive amount drawn from the balance of the
customer. It has a limit and a fix time.
Pledge
It is a contract between bank and borrower. The goods are transferred in the bankers
possession but the ownership remains in the name of borrower. The bank keeps the
possession until the payment is duly paid. If the borrower can not pay the amount or in
case of default, the banks can sale goods after a notice.
Mortgage
it is also a contract and the amount of interest of the immoveable property is transferred
to the banker
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Cash department
Payment and receipts functions are performed by this department. Payment means
cheques are presented and the payment is made to the customers and receipts means,
customers deposit their savings to the bank and a receipt is issued to the customer.
f. Organizational management Analysis (OMA)
UBL has very skilled management. Its employees are well trained and capable for using
modern technology. UBL conduct workshops to train its employees with fast growing
technology and needs of modern world. It manage these workshops manually basis or
quarterly basis where the experts and exertive taught to the UBL employees. A UBL
employee has great demand in organizations. UBL management provides better service to
customers. They are humble, good looking, supportive, and have nice behavior with
customers.
UBL also have drawback in management perspective. There is a lack of employees in
UBL so the work presser increases in each employee. The employees of UBL work for
more hours to complete their work so they get tired and bored and this thing put a
negative impact on their abilities and they cant do their responsibilities with high spirit.
UBL needs to hire more employees to overcome this weakness.
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PART TWO
1. Training Program
a. Plane for Internship program in tabular form as given below
Sr. No Starting Date Ending Date Name of
Department
Duration
(in days)
i 20 may 31 may Deposits 11 days
ii 1 June 15 June Remittance 15 days
iii 16 Jun 12 July IT 27 days
b. Detailed Description of the tasks assigned to you during internship program
I joined UBL as an internee and worked in Deposits, Remittance and IT departments
from 20 may to 12 July. it was a best opportunity for me to get a practical knowledge
from any organization.
As I worked in three departments as internee the first was
I. Deposits
In deposits department I perform the tasks
Account opening
Deposit is main and important function of any bank and also a primary function of
commercial banks. Main objective is getting the money from people and provide some
benefit to the customer in the form of mark up. Following are main accounts of UBL.
PLS saving account
Term/fixed deposit account
Current account
When a customer comes into bank and asks for opening an account, I provide an
application form to the customer with necessary details. Then ask to customer which type
of account he want to open. Then fill the application form according to the account type.
Fill all fields with required information about customer. After the completion of
application form then it sends to the branch manager (Iftikhar Ahmad Shaheen) for the
approval of issuing the account number. The manager approved the form and then
account number is allotted to the client. After this, all the information on the application
form is entered in to the computer system.
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Issuance and entry of cheque book
After allocating the account number, a slip for issuing the cheque book is attached with
the application form. The cheque book requisition slip is filled by client with account
number, type of account and account title. Normally the duration of issuing the cheque
book is 3 days after the account opening.
The entry of cheque book is made on both records, computer system and in the register of
cheque book issue.
Account opening
Completion of form
Introduction
Specimen signature card
Account number
Issuance of a cheque book
Entry of cheque book
Filling the account opening form
Maintaining the computer record
ATM/Debit card issuance
II. Remittance Department
I worked in Remittance department as an internee for 15 days. In this department I
learned three things.
DD/ Demand draft
It is a kind of cheque. It is issued by UBL to other banks or other branches of UBL on the
demand of the customer. DD is a safe method to transfer from one place to other. The
amount and the name of person is mentioned on it.
TT/Telegraphic transfer
Its similar to DD but the difference is, a message is sent to via fax or paper like that. It is
also used to send money from here to there. Some forms are filled to making TT.
PO/ Payment order
PO is issued by the bank and payable on itself. Customers can easily transfer the money
from one person to another in the same city. The commission is also written on the
payment order and the amount of commission is paid by customer.
I also learned remittance inward and remittance outward.
III. IT Department
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The third department which I worked as an internee was IT department. During my
internship I also worked on one project. This project was related to MIS (Management
Information System) and IT (Information Technology). The project was basically on
Networking and Data update of UBL. During this project I work with Mr. Iftikhar Ahmad
Shaheen (Branch manager). The project aim was to analyze the current information
system of UBL and to develop some solution for the flaws of current system. I write
report on these issues and submitted to IT (Information technology) Department.
Technology is responsible for the development, implementation and maintained of
cutting-edge software applications required to process deals and information ensuring the
bank can open for business each day. Technology is core to everything we do. No
technology, no deals, no products, no profits.
The United Bank System provides detailed information (MIS) which can help in
controlling expenses. Monthly management reporting is an integral component of the
corporate Card offer from United Bank. It gives the management and its employees a
complete expense tracking mechanism. It also provides a reasonable credit period.
Thus reducing your working capital requirement this will reduce the time and cost
associated with expense control. The report package provides both Summaries and
itemizations of charges and payments. The reports help you;
Streamline expense control
Analyze spending patterns
Forecast future spending
The Individual Card Member Billing Statement
2. A structure and functions of MIS Department
A. Department Hierarchy
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In branch level there was only three persons who deal all activities of
MIS department.
Head of Computer & IT (MIS) Dept
Head of Technical
Archive
Secretary / Typist
Head of Support &
Computer Operation
Head of System Design & Integration
Information Network &
Internet Manager
Head of
Computer
Operation
Head of
Support
Head of
Desin of
Tech. &
Oper. Sys
Head of fin.
Admin. &
Comm.
Manager
Internet/Intra
net Manager
Web
Master
HW
Sen.
Eng
Sen.
Expert OS
Head
Tech. Sys
Head
fin.,
Adm.
Sys.
Senior
Analyst &
Programmer
Senior
Analyst &
Programmer
Tel. Proc.
Sen. Eng.
Sen. Exp.
database
Head OS
Head
Comm.
Sys
Manager
Assistance
Technician
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B. Number of Employees working in the MIS Department
There are only three employees doing work in MIS department. The manager controls all
activities of this department and the assistance also helps him to complete all tasks
successfully. If any problem occurs with network the technician resolve it.
C. Major Responsibilities and functions of the MIS Department
Technology is responsible for the development, implementation and maintenance of
cutting-edge software applications required to process deals and information ensuring the
bank can open for business each day. Technology is core to everything we do. No
technology, no deals, no products, no profits.
IT department of UBL perform various functions.
UBL IT department performs the function of Enterprise resource planning to
manage its internal and external resources like financial resources, human
resources, asserts etc.
UBL IT department responsible for proper working of computer system. In case
of any complain or problem IT department responsible to resolve it.
IT department choose and develop network design in UBL.
IT department train to employees of each department for the usage of technology.
IT department maintained of hardware and software.
IT department is responsible to perform various tasks including
IT department of UBL have responsibility of installing hardware, software, windows
and others necessory softwares in all computers. It responsible for the maintance and
proper working of all computers in the bank. If technology related problem occure in
any department it will report to IT department and this department will check and
resolve the problem. IT department also check the security of each departemnts
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computers and ensure it to save the computers from harmful effects. It responsible to
keep and maintain database according to demand.
UBL IT department build and maintain the interl network for UBL users of different
departments. The users can communicate and share information with others. It build the
UBL internal network using bus topology. It checks the internet related problem and also
responsibel for security. IT department save all the data also in an other place so that If
main server breaks down it can cover easily. Sets contingency plans and installs systems
to ensure the availability of continuous operation in case of failures or disasters,
Develops applications according to the needs of the UBL
Support to other department
The UBL Management Information system Department provides a variety of services
relating to computer and telecommunications services, application software development,
design and production services, and software training to all internal departments. These
services encompass personal computers, networks, printers, servers, and more. The MIS
Department is an innovator in the field of information technology management, using a
combination of management solutions that maximize effectiveness and minimize cost.
The MIS Department also consults with other departments to analyze and select proper
IT solutions for specific applications, provides internet access, computer training and
support, and mobile computing solutions for other departments.
MIS coordinates all Town-wide core business functions and information technology
administration. This includes accounts payable, utility billing, payroll administration,
general ledger, budget, purchasing, human resource management systems, accounts
receivable, permitting, code enforcement, and office automation.
UBL IT department develops, maintains and enhances inter bank payment and securities
settlement systems and their international connections; coordinates the banks as well as
the related departments of the Central Bank on technical and operational matters;
operates the existing real-time gross settlement payment system the securities settlement
system and the dedicated communication network .
UBLMIS Department designs, develops, implements and maintains the website.
Information technology changes rapidly and new systems and technology are continually
being implemented and installed. The MIS Department strives to translate this
technology into higher productivity for departments, and higher quality output for
reduced costs of operations that ultimately benefits the citizens of area.
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PART THREE
1. Critical Analysis
a. compare and evaluate organizations current strategies with the
organizations vision and mission statement
Vision statement
To be a world class bank dedicated to excellence, and to surpass the highest expectations
of our customers and all other stakeholders.
Mission Statement
Excellence
Meeting ever-growing standards
Consistent in our growth
Best in class in any business we initiate
Strive to provide world class service
Your expectations-Our Goals
Wow impact on every encounter
At UBL we believe in achieving excellence in every
aspect of our work, as well as in our relationships with customers and other stakeholders.
Excellence to us is not simply a matter of delivering on a few selected parameters, nor it
is restricted to basic service and delivery matters. For us excellence has no transcended
throughout the entire organization, all its business functions and divisions end the entire
branch network.
b. compare your theoretical concepts with the current practices being carried
out by the organization in its various departments to perform various
functions
UBL set some goals and make strategies to achieve its targets mention in vision and
mission statement. It sets its goals in various departments and achieves them by inspiring
customers, businessmen, by providing them better service.
It deals with its customers in an excellence way. It creates a excellence impact on its
customers.
31/ Dec/ 2009 to 31/Dec / 2010
Deposit Department:
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The goals are set that they will increase from 125.m to 156 m till 2010
Advance Department
Will increase from1.560 to 1.740 m
Profits will increase from 2.537 to 3.290 m
To achieve these goals UBL makes some strategies and policies.
Deposit Department:
Deposit department has the importance of blood in any organizations life. UBL make
policies to attract its customers to deposit more. It starts many types of accounts with
different facilities. Every account contains different fetchers and facilities.
UBL Business Partner (Current A/C)
UBL BBA (Current A/C)
UniSever (PLS A/C)
UBL Rupee Transactional Account (PLS A/c)
UBL UniFlex (PLS A/c)
eTransaction (Current A/c)
UBL First Minor PLS Account
UBL have different nature of accounts to provide facility to every kind of customers,
businessmen.
Individuals
Sole Proprietorship
Partnership
Joint Stock Companies
Clubs, Societies and Associations
Foreign Missions/ Diplomats
Agents Accounts
Trust Account
Executors and Administrators
UBL Products:
UBL provide many kind of Products to its customers to increase it profit which include
The UBL Credit Card
Welcome to the world of UBL Credit Cards. Pakistans 1st Chip Credit Card,
which 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
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i. 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.
ii. The UBL Chip Rewards
No more tedious points to accumulate or boring catalogues to redeem from. Win
your prizes instantly!
Visit selected UBL Chip Reward outlets and get exciting gifts on the spot. The more you
visit, the more you get.
All you do is Dip the Chip to win free meals, free household goods, free electronic items,
free clothes and a lot more. A Choice of Rewards. Along with exciting Chip Rewards you
have a choice between Free Road Miles and Free Talk Time.
iii. Low Balance Transfer Rate Save big time
Now you can really save big time with your UBL Credit Card Balance Transfer
Facility!. You have the opportunity to pay off balances you owe to other banks through
your UBL Credit Card on a low balance transfer rate.
Your UBL Credit Card offers a low rate for BTF of outstanding balances from other
cards at only 1.75% per month.
Transferring your balances to your UBL Credit Card is simply a phone call away.
VISA Debit Card
UBL Wiz is Pakistans first ever prepaid VISA Debit Card that provides the
convenience, security and benefits of an ATM and Debit Card, locally and
internationally. More than just an ATM card, you can use your UBL Wiz everywhere
VISA cards are accepted. Whether you are using it online, paying for petrol, shopping or
dining, you are accessing money directly from your prepaid card, without having to visit
the bank.
UBL Business Line
UBL Business lines a complete solution to all your Business
Financing needs. With UBL Business Financing facility, you can now take your business
to greater and newer heights, and achieve the level of success that you truly deserve.
UBL Business line is a running Finance facility that not only provides funds for growth
but also enables you to capitalize on profitable opportunities.
With UBL Business line, now you will surely say. Ab Hui Kamiyaabi Meri Manzill.
Now, UBL Business line credit line is here to solve all your cash flow problems. You can
utilize up to Rs.10 million with the help of which you now focus on your business
expansion and growth.
UBL Cash line
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UBL Cash line is a flexible loan that provides you cash up to Rs.500,000 without
any security requirements. It empowers you to take control of your finance. UBL Cash
line is aimed to make your life easierZINDAGEE ASAAN. Whether you are a salaried
individual or a businessman, UBL Cash line takes care of your cash requirements.
UBL Wallet
UBL Wallet, now with the power and international acceptance of VISA!
Your Wallet VISA ATM & Debit Card has all the convenience and security you desire
and the quality you deserve. This Wallet holds all the cash in your bank account.
UBL Profit COD
Now you can earn a higher income on your surplus cash by investing it in UBL
Profit Certificate of Deposit. UBL Profit helps you earn extra income with your hard
earned money, while providing absolute trust and security.
Hamrah:
UBL has always been adding the forefront in identifying and meeting the
financial needs of its valued customers. UBL was a pioneers an introducing Rupee
Travelers Cheque facility in Pakistan, as early as 1971. In continuation of the same
tradition, UBL in the shape of, HAMRAH Rupee Travelers Cheque enhances this
facility for the convenience of its valued customers by offering denomination up to
Rupees 10,000.
UBL has a 24 hours customers help-line, providing its customers with round the clock
tele-verification of HAMRAH Rupee Travelers Cheque.
Insurance Certificate
UBL not only cares about you, we care about those too who are dependent upon
you. So UBL now offers enhanced Free Accidental and Disability Insurance Certificate
coverage to all existing and new account holders. .
2. SWOT Analysis
Clearly describe all the Strengths, Weakness, Opportunities and Threats.
During interning at UBL, I was able to conduct a SWOT analysis of the organization. I
discovers a great deal in the bank of strengths, weaknesses, opportunities and threats.
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1.Strengths
3
rd
largest Bank of Pakistan in term of deposits
2
nd
largest Privatized Bank of Pakistan
UBL offering Customized Products and services aggressively better then its
competitors
Improved operational efficiency as to its past
Courteous Customer service and fast delivery of online and offline services
Marvelous Image and Reputation of the bank in the eyes of its customers
Extensive Branch network
UBL Product positioning is very effective
UBL target the segment like salaried person, business people and self employed
person
UBL product positioning affect the life style of the people as they help in
improving
standard of living
1400 Branches all over Pakistan
Stands in the list of Profitable bank in stock exchange
Largest number of corporate deals by any bank is Pakistan
Overseas Branches
Attractive Salaries and incentives for employees
Personnel of UBL are very well trained. Majority of employees have many years
of experience in banking sector and are an asset for the bank.
2.Weaknesses
No standardization in terms of branches some of the branches are very attractive
and most of the branches are not very good like other branches.
In some regions, urban areas of Pakistan service of UBL is not good as compared
to other privatized banks
The application time is also quite lengthy.
UBL is a step behind in using new technology as compared to other banks
All branches need orientation for customer dealing.
Most of employees are experienced and they are not able to deal customers well,
adopt new culture and above all they are unable to use of new technology like
computers.
No separate training center to train their employees
Workforce is not diverse
Security system in most of the branches is not up to the mark.
Most of the employees are overload with the work and promotion is also not
timely.
3.Opportunities
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Bank can extend its network in other cities of Pakistan like other 4 remote cities,
it would increase their sales.
Proper orientation of employees in all branches can help them to cope up with
foreign banks
By bringing new technology and modern business processes will bring the change
and increase their profitability
Call centre services should be improved to enhance their network
Innovate the product line and keep on giving services that satisfy the customers.
4.Threats
Other banks have been launched advertising campaigns and this is great threat of
the loss of the customers
The future trend is another threat because UBL is offering high markup rates. This
additional price is also a threat for UBL.
UBL is facing consistent policy for its products as criteria and documents
required. This is more complexions in procedure.
Large and increasing competition
High operating costs
Lack of huge deposits
3. internal factor evaluation Matrix
A summary step in conducting an internal strategic-management audit is to construct an
Internal Factor Evaluation Matrix.
An IFE Matrix can be developed in five steps:
1. List key internal factors as identified in the internal-audit process. Use total of
from ten to twenty internal factors, including both strengths and weaknesses.
2. Assign a weight that ranges from 0.0 (not important) to 1.0 (all-important) to each
factor.
3. Assign a 1-to-4 rating to each factor to indicate whether that factor represents a
major weakness rating 1, a minor weakness rating 2, a minor strength rating 3, or
a major strength rating 4.
4. Multiply each factors weight by its rating to determine a weighted score for each
variable
5. Sum the weighted scores for each variable to determine the total weighted score
for the organization.
Internal Strength Weight Rating Weighted
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Score
1. 3
rd
largest Bank of Pakistan in term of deposits 0.10 4 0.40
2. 2
nd
largest Privatized Bank of Pakistan 0.12 4 0.48
3. Improved operational efficiency as to its past 0.04 3 0.12
4. Extensive Branch network 0.08 4 0.32
5. UBL Product positioning is very effective 0.04 3 0.12
6. standard of living 0.05 3 0.15
7. Stands in the list of Profitable bank in stock exchange 0.04 3 0.12
8. Largest number of corporate deals by any bank is Pakistan 0.08 4 0.32
9. Attractive Salaries and incentives for employees 0.15 4 0.60
10. Overseas Branches 0.05 3 0.15
Internal Weakness
1. In some regions, urban areas of Pakistan service of UBL is not
good as compared to other privatized banks
0.10 1 0.10
2. UBL is a step behind in using new technology as compared to
other banks
0.04 2 0.08
3. All branches need orientation for customer dealing. 0.03 2 0.06
4. Security system in most of the branches is not up to the mark. 0.04 1 0.04
5. Most of the employees are overload with the work and promotion
is also not timely
0.04 1 0.04
Total Weighted Score 1 3.1
Major weakness 1
Minor Weakness 2
Minor strength 3
Major strength 4
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4. External factor evaluation Matrix
Steps include in this matrix
List factors: List all external factors. Divide them into two groups, opportunities and
threats.
Assign weights: Assign a weight to each factor which should be between 0 and 1.
Zero means factor is not important. Total value should equal to 1.
Rate factors: Assign a rating to each factor which should be between 1 and 4. Rating 1
indicates the response is poor. 2 indicate blew average. 3 indicate above average and 4
indicate superior. Weights are industry specific while ratings are company specific.
Multiply weights by ratings: Multiply each factor weight with its rating. This
will calculate the weighted score for each factor.
Total all weighted scores: Add all weighted scores for each factor. This will calculate
the total weighted score for the company.
Opportunities Weight Rating Weighted
Score
Bank can extend its network in other cities of Pakistan like other
4 remote cities, it would increase their sales.
0.11 4 0.44
Proper orientation of employees in all branches can help them to
cope up with foreign banks
0.12 3 0.36
By bringing new technology and modern business processes will
bring the change and increase their profitability
0.10 2 0.20
Call centre services should be improved to enhance their network 0.15 4 0.60
Innovate the product line and keep on giving services that satisfy
the customers.
0.16 3 0.48
Threats
Large and increasing competition 0.10 1 0.10
UBL is facing consistent policy for its products as criteria and 0.05 3 0.15
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documents required. This is more complexions in procedure.
Lack of huge deposits 0.08 2 0.16
High operating costs 0.05 2 0.10
6. The future trend is another threat because UBL is offering high
markup rates. This additional price is also a threat for UBL.
0.08 1 0.08
Total Weighted Score 1 2.67
UBL has total weighted score of 2.67 indicating that UBL is it is below average in its
efforts to pursue strategies that capitalize on external opportunities and avoid threats.
5. Threats, Opportunities, Weaknesss, Strength Martix
(TOWS)
The TOWS is also named as SWOT analysis. A TWOS Analysis is
a strategic planning tool used to evaluate the Threats, Opportunities and Strengths,
Weaknesses, involved in a project or in a business venture or in any other situation
requiring a decision.
This is an important tool in order to formulate strategy. This Matrix is an important
matching tool that helps managers develops four types of strategies:
SO Strategies (strength-opportunities)
WO Strategies (weakness- opportunities)
ST Strategies (strength-threats)
WT Strategies (weakness-threats)
The most difficult part of TOWS matrix is to match internal and external factor.
Once the objective has been identified, TOWS are discovered and listed. TOWS are
defined precisely as follows
Threats are external conditions that are harmful to the achievement of the objective.
Opportunities are external conditions that are helpful to the achievement of the
objective.
Weaknesses are attributes of the organization that are harmful to the achievement of the
objective.
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Strengths are attributes of the organization that are helpful to the achievement of the
objective.
SO Strategies:
UBL desires to obtain benefit form its resources such benefit can only be
obtained if utilize its strength to take external opportunity. UBL has enough
resources to get the external opportunities. UBL assets are important strength to
get opportunity for external assets. UBL has good financial position and well
trained and skilled employees. It also uses modern technology. On behalf of these
assets it gives opportunities.
WO Strategies:
UBL uses the WO strategy for matching its weakness with opportunities.
Whenever it determines then it makes plan to overcome its weakness so it can get
the advantage of opportunities. For example, UBL have the weakness of lake of
staff, it will recruit more skilled staff to less the Burdon of work. And also
increase the abilities of employees.
ST Strategies
ST strategy is an important strategy to overcome external threats. Under this
strategy UBL uses its strength to overcome external threats which may harm to it.
For example, UBL uses this strategy when various banks opening the new
branches in order to overcome competitive threats. The external threats are
Economies of scale, Cost of entry, Distribution channels and Cost advantages not
related to the size of the company, Government legislations, Differentiation which
UBL can overcome by using its strengths.
WT Strategies
Every firm has a desire to overcome its weakness and reducing threats. This type
of strategy is very helpful when weaknesses are removed to overcome external
threats. UBL have some weaknesses for example, lake or employees, work burden
etc etc. To overcome external threats UBL remove such kind of weakness. It
removes these weaknesses for hiring more skilled people, using modern
technology.
.
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6. Competitive Profile Matrix (CPM)
The Competitive Profile Matrix identifies the firm major competitors and their particular
strength and weakness in relating to a sample firms strategic position. The factors in a
CPM include both internal and external issues, therefore ratings refer to strength and
weakness, 4 5 major strength, 3 5 minor strength, 2 5 minor weakness, 1 5 major
weakness. The critical success factors in a CPM are not grouped into opportunities and
threats as they are in an EFE. The best thing about CPM is that, it includes your firm and
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also facilitates to add other competitors and makes it easier to perform a comparative
analysis.
The competitive profile matrix consists of following attributes mentioned below.
Critical Success Factors
Critical success factors are extracted after deep analysis of external and internal
environment of UBL. Higher rating mean UBL strategy is doing well to support this
critical success factors and lower rating means UBL strategy is lacking to support the
factor.
Rating
It represents the response of UBL toward the critical success factors. Rating range from
1.0 to 4.0 and can be applied to any factor.
1 represent poor response, 2 represent average, 3 above average and 4 superior.
Weight
Weight attribute indicates the relative importance of factor to being successful in UBL.
The weight range from 0.0 means not important and 1.0 means important, sum of all
assigned weight to factors must be equal to 1.0 otherwise the calculation would not be
consider correct.
Weighted Score
Weighted score value is the result achieved after multiplying each factor rating with the
weight.
Total Weighted Score
Final value of total weighted score should be between ranges 1.0 (low) to 4.0(high). 2.5 is
average weighted score and score higher than 2.5 are considering as strong in position.
Bank with higher total weighted score considered as the winner among the competitors.
UBL HBL ABL
Critical Success Factors Weight Rating Weighted
Score
Rating Weighted
Score
Rating Weighted
Score
Advertising 0.20 3 0.60 2 0.40 4 0.80
Product quality 0.15 2 0.30 3 0.45 3 0.45
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Market share 0.10 4 0.40 2 0.20 2 0.20
Competitiveness 0.10 3 0.30 4 0.40 2 0.20
Management 0.15 4 0.60 3 0.45 2 0.30
Financial position 0.10 3 0.30 2 0.20 3 0.30
Customer loyality 0.15 2 0.30 3 0.45 2 0.30
Globel expention 0.05 3 0.15 2 0.10 3 0.15
Total 1.00 2.95 2.65 2.70
UBL has total weighted score higher than the average 2.5 so it indicates that it is strong in
position. Both HBL and ABL also have strong position but below the UBL.
7. BCG Growth-Share Matrix
BCGis based on the observation that a company's business units can be classified into
four categories based on combinations of market growth and market share relative to the
largest competitor, hence the name "growth-share". UBL enjoy good financial health and
also have enough market shares. UBL with high market growth and also high market
shares is generating large net cash.
The BCG matrix reaches further behind product mix. Knowing what we are selling helps
managers to make decisions about what priorities to assign to not only products but also
company departments and business units.
What is the BCG matrix and how does the BCG model work?
Placing products in the BCG matrix results in 4 categories in a portfolio of a company
Stars
UBL is now in a position of high market share in high growth market. Having high
market share UBL is a fast growing business. UBL as a star generate large amounts of
cash because it hase strong relative market share, but also consume large amounts of cash
because of high growth rate.
Although UBL is leader in the business but still need a lot of support for promotion a
placement. If market share is kept, UBL is likely to grow to become cash cows.
Question Marks
Question markes are with high growth but low market share.
Some of new products of UBL having low market share in high growth market because
buyers have yet to discover them.the UBL uses marketing strategy to get markets to
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adopt these products. UBL goal must be to grow the businces to become a star. If UBL
need to invest in these areas to prevent to become dogs.
Cash Cows
The next stage for UBL will be cash cows. Cash cows have high market share in low
growth market. UBL nearly will get high market share in a mature market. Soon UBL
will achieve competitive advantage, when it becomes cash cows then it have high profit
margins and generate a lot of cash flow.
In cash cows the growth is low and also promotion and placement investment also slow
because company have now enough market share so there is no need to furthur
investment.
Dogs
Dogs are with low market share in low growth market. UBL should maintain its market
shares and make more investment to pervent to become dogs.
8. Portor five forces analysis
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Applying this five forces analysis on UBL understanding the nature of each of
these forces gives UBL the necessary insights to enable it to formulate the
appropriate strategies to be successful in market.
Degree of Rivalry
In an industry of same companies or firms the central point lays the stress on rivalry of
the competing firm. It relates competition strength. Competition among rival firms makes
profit to zero. The strength of rival of competing firms e.g. UBL, HBL and ABL is
powerful. It is most likely to be high in these banks because there is a threat of substitute
products and existing power of suppliers and buyers in the market. Each one of them is
trying to control other using different ways.
Threat of Entry
If in an industry of same firms say UBL, HBL working and a new bank ABL
(competitor of both firms) enters in the industry will show the balance between these
three banks competing in the market. It also refers whenever ABL enters into the
market and may become threat or opportunity for any one of UBL or ABL. Anyone of
these banks should be able to enter or exit the market. If there is no cost of entry and
exit then profits should be nominal.
The Threat of Substitutes
In case of banks almost all banks provide same products with little difference these
products are called substitutes. The threat that substitute products pose to an industry's
profitability depends on the relative price-to-performance ratios of the different types of products
or services to which customers can turn to satisfy the same basic need. The threat of
substitution is also affected by switching costs that is, the costs in areas such as retraining,
retooling and redesigning that are incurred when a customer switches to a different type of
product or service. UBL can affect others by switching costs of its substitute products.
Buyer Power
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Buyer power is one of the two horizontal forces that influence the appropriation of the
value created by an industry. The most important determinants of buyer power are the
size and the concentration of customers. The power of buyers illustrates the impact
customers have on an industry. When buyer power is strong, its relationship to UBL
becomes closer. In this category number of customers is large of UBL but it has no effect
in prices of products or services. In perspective of UBL this force is relatively high
because there is few, large players in the market.
Supplier Power
Supplier power is a mirror image of the buyer power. In case of bank industry the
analysis of supplier power typically focuses first on the relative size and concentration
of suppliers relative to industry participants and second on the degree of differentiation
in the inputs supplied. If UBL have the ability to charge customers different prices in
line with differences in the value created for each of those buyers usually indicates that
the market is characterized by high supplier power and at the same time by low buyer
power. Bargaining power of suppliers exists in the following situations.
9. Ansoff Growth Matrix
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The Ansoff Growth matrix is a tool that helps businesses decides their product and
market growth strategy.
Ansoffs product/market growth matrix suggests that a business attempts to grow depend
on whether it markets new or existing products in new or existing markets.
The output from the Ansoff product/market matrix is a series of suggested growth
strategies that set the direction for the business strategy. These are described below:
Market penetration
Market penetration is the name given to a growth strategy where the business focuses on
selling existing products into existing markets to increase its shares. UBL also uses this
strategy to increase its market shares by increasing sales of current products. UBL
achieve it by a combination of competitive pricing strategies, advertising, sales
promotion and more resources dedicated to personal selling.
Market development
Market development is the name given to a growth strategy where the business seeks to
sell its existing products into new markets. UBL uses this strategy to sell its existing
products into new markets. UBL uses many possible ways of approaching this strategy.
UBL found new geographical markets to sell its products. It opens its branches to
newcountries.
UBL uses different pricing policies to attract different customers.
UBL uses new product dimensions to increase sale of its products.
UBL develop new distribution channels to increase sale of its products into new
markets.
Product development
Product development is the name given to a growth strategy where a business aims to
introduce new products into existing markets. UBL uses this strategy by increasing
product development and selling it to existing markets. UBL modified its products to
according customers needs and wants and which are demanded in the existing market.
Diversification
Diversification is the name given to the growth strategy where a business markets new
products in new markets. UBL adopt diversification strategy, so it takes a clear idea about
what it expects to gain from this strategy and an honest assessment of the risks. Although
this strategy is more risky but UBL believes that no pain no gain, UBL also uses this
strategy by moving new markets and in new areas to get an opportunity and getting
experience.
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PART FOUR
1. Conclusion
Through my internship training I have learnt lot of things in UBL. I have experience that
UBL is a top Bank in banking industry. UBL employees provide a great service to
customers. The UBL believe on quality of service no quantity of service. UBL employees
gives importance to customers satisfaction. I learnt how to deal with customers.
UBL has efficient employees.
Employees are given the many facilities.
Employees are cooperative.
UBL focus on the customer need and fulfill it.
All the transactions are entered into computer system. Its a efficiency of UBL.
I enjoyed my internship in UBL because its very helpful to know the real life
working environment.
2. Recommendations
UBLmust concentrate on the promotion of their products
The Bank has a lot of financing schemes but there is very little advertisement of
these schemes. So Bank should increase its advertisement.
UBL needs to reduce the markup rates in car financing and mortgage department.
All the Bank Branches should be getting online to provide the quality and speedy
services to the customers and also remain competitive in the market.
There is lack of nation wide branches. It should be more new branches in small
towns.
UBL must provide the computers to all important employees to increase the peace
of work.
When any one comes to operate the lockers, then the things, which he keeps in
locker, should be checked through metal detector for security purposes.
The branch infrastructure should be up to date.
UBL needs to create good relations with industrial cities like Faisalabad.
Most of the bank employees are sticking to one seat only, with the result that they
become master of one particular job and loose their grip on other banking
operations. In my opinion all the employees should have regular job experience
through job rotation. The promotion policy should be adjusted.
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The basic pay of sales person is not good enough because they are main
marketing persons. It should be high.
The Bank should have the moving cameras in their branches for security
purposes.
Every year some of the employees should be sent for training to other countries
and employees from other branches should be brought here. More reading
material should be brought / provided in the reference Room, it should be relevant
and its purpose should be to educate the employees with the advance studies in
their field. The employees should be provided the opportunities to attend and
participate in seminars and lectures on banking.
SUPPLEMENTARY PART
1. Reference and sources used
List of persons Interviewed:
Branch Manager Mr, Iftikhar Ahmad Shaheen for introduction to bank
Account opening Department Mr. TAriq Mehmood
Remittance department Mr. Atif Hussain
Reference # 1 www.ubl.com.pk
www.ublfunds.com UBL Fund Managers Ltd
www.ublinsurers.com UBL Insurers
www.ublonline.com Customer Website
www.ublinsurers.com- UBL Insurers
Reference # 2 Annual reports
Reference # 3 Questionnaires
Reference # 4 website of state bank of Pakistan
Reference # 5 website of PACRA (PAKISTAN CREDIT RATING AGENCY)
Reference # 6 Bank manager and staff
2. Annexes
Brochures
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