CHAPTER # 1

INTRODUCTION
1.1 Industory
United Bank of Pakistan is one of the leading and first government recognized bank in Pakistan.
Aimed to be the pre-eminent financial institution in Pakistan and achieve market recognition
both in the quality and delivery of service as well as the range of product offering.
The reason of its development was that the UBL in addition to being a commercial bank in the
public sector at a time when all other commercial banks were in the private sector.
The establishment of UBL thus signaled the achievement of another milestone in the
development of the banking industry in Pakistan.

1.2 Introduction of the company

1.2.1 History
The reserve Bank of India which was given the responsibilities of exercising control over
banking sector did not perform its duties properly in Pakistan.
The real momentum was given to banking system when the State Bank of Pakistan, was
established on 1st July 1948. But a real turn took place in the banking section when a renowned
banker Agha Hassan Abdi took initiative of opening a bank, which he announced to the
different mode from the others. His dream became true when the first branch of United Bank
Limited (UBL) was opened at Macleod Road (now 1.1. Chandrigar Road Karachi) on 7 th
November 1959.

This achievement was recurred after passing through many problems and after completion of a
lot of legal formalities. UBL was established on 24 th July 1959 as a public limited company with
registered office at 1.1 Chandrigar Road, Karachi. The authorized capital was Rs. 2, 00,00,000
issued, subscribed and paid up capital was a Rs 1,00,00,000 share of Rs. 101 each. . The bank
currently operating through 1300, branches in all the major cities of the Pakistan.
1.2.2 Mission Vision statement
The mission statement of UBL is

Set the highest industry standard for quality, across all areas of operation, on a sustained

basis
Optimize people, processes and technology to deliver the best possible financial solution

to our customers
Become the most sought after investment
Be recognized as the employer of choice

The vision statement of UBL is

To be a world class bank dedicated to excellence, and to surpass the highest expectations
of our customers and all other stakeholders.

1.2.3 Objectives of UBL

T h e u n i t e d b a n k l i mi t e d s e t s i t s g o a l a n n u a l l y d o e s r e v i s i o n o f t h e m a n d
t a k e s monthly feedback.

To provide the online facility in every branch of bank.

Make best efforts to win the trust and confidence of its customers.
To offer the varieties of services to meet the requirement of domestic as well

as foreign customers.
To make it leading bank in banking sector.
To adopt modern banking techniques.
2

1.2.4 Prospect
Time deposit becomes greater than demand deposits forming about 54 percentage of the total
deposits. As oppose to what happened in the previous period, banks were able to finance a much
higher level of credit expansion without having to increase their borrowings from the Central
bank. As the number of customers is increasing, the banking sector growth also increases.

Chapter # 2
Products and Services
2.1 Business Partner Account (Current Deposit)
Business partner Account is current account aimed to facilitate business persons, individual who
are self employed, sole proprietor or partnership, public limited company/ private limited
company and Club/associates etc.
2.1.1 Features and Benefits
Cheques books (25/50/100 leaves), ATM card, Facility of Internet-banking, E-statement,
Issuance of Demand Drafts through the Account.
An average balance of Rs.10000/- is required to by pass the monthly minimum balance penalty
charges.

2.2 Business partner plus account (Current Deposit)

Business partner Account is current account aimed to facilitate business persons, individual who
are self employed, sole proprietor or partnership, public limited company/ private limited
company.
2.2.1 Features and Benefits
Free Cheques books (25/50/100 leaves), Free ATM card, Free Facility of Internet-banking, Free
E-statement, Free Issuance of Demand Drafts through the Account.
An average balance of Rs.25000/- is required to by pass the monthly minimum balance penalty
charges.

2.3 E-Transaction (Current Account)

This is one of the popular accounts which is basically used for net-banking and was specially
introduced for those people who use internet for their business transactions.
2.3.1 Features and Benefits
Cheques books (25/50/100 leaves), ATM card, Facility of Internet-banking, E-statement, Free of
cost Transaction alerts on the registered email of the customer, Issuance of Demand Drafts
through the Account.
An average balance of Rs.10000/- is required to by pass the monthly minimum balance penalty
charges.

2.4 Rupee Transactional Account (Savings Account)

If a customer chooses to keep a deposit in a secured savings account which also gives an
attractive rate of return, then UBLs PLS Savings Account will serve all his financial needs. By
keeping deposits in UBLs PLS Savings Account customer can get profit on half yearly bases.
2.4.1 Features and Benefits
No limitation on withdrawals, Share of profit is credited on half-yearly basis, Profit is calculated
on monthly balance, UBL offers free accidental and permanent disability insurance to individual
and joint account holders.

2.5 UBL Uniflex Account

UBL has introduced a new checking account ideal for small investors, traders, businessmen and
customers from middle income group. They can now afford an amazing rate of return plus value
added benefits only available from the UBL UniFlex PLS Savings Account. Customer gets the
5

profit of their savings on monthly basis upon their monthly average balance maintained in their
accounts.
2.5.1 Features and Benefits
Amazing rate of return, Convenience of a cheque book, Power of Wallet VISA ATM / Debit
Card, Facility of internet Banking, Monthly return of profit on the balance, No minimum balance
penalty charges.

2.6 Foreign Currency Savings

If a customer wishes to maintain a secured foreign currency savings account then UBL is the
safest and most secure investment. By opening a UBL foreign currency savings account
customer gets the profit on their nominal currencies account.

2.7 COD (Certificate of Deposit)

This is a fixed deposit plan aim to provide good profit to the customer to attract them in the
market and to survive in the market. The COD is a like a term deposit account in which the
amount cannot be withdrawn until the decided tenure of the policy completes. Upon completion
of the tenure the profit of the deposit is disbursed in the customer account.

2.8 UBL OMNI (Branch less Banking)

UBL OMNI is one of the emerging products of the UBL which recently won the award of being
excellent branch less banking in the time of emergency. The mobile number of a customer is
basically his/her account number that can be used for transferring money from one account to
another account and also for paying bills, buying mobile cards and top up etc.

2.9 UBL Credit Cards

Credit cards are unsecured loan which are offered by the UBL for their customers and clients.
There are basically two types of credit cards SILWER AND GOLD, the annual charges of
SILVER CREDIT CARD is 1500/- per year while the charges of GOLD CREDIT CARD is
3000/- only. These credit cards are issued against the good credit history of the customers and
their good account statement maintained in any bank. Not even this, the card is also issued to the
salaried person who fulfills the eligibility criteria of the credit card.

Chapter # 3
3.1 Organizational Hierarchy Chart

3.2 Departments of UBL

3.2.1 Account Opening Department
This department deals with the customers who come for the opening of new Accounts. The
customers are, first, provided all the necessary information about the different types of Deposit
Accounts so that they can choose the best suitable option which would be in accordance to their
requirements. After this, their Account Opening Forms is filled with the necessary information as
per requirement of the UBLs policies. Then necessary documents are taken from the customer
and are attached with AOF. After that, Signatures of the customer are taken on the AOF, on
Cheque Book Requisition Slip and on Signature Card. Then an account number is assigned to
them. After that, Deposit Slip is to be filled for their Initial Deposit and also a Free Insurance
Certificate is issued to them. An AOF Copy is also provided to them. This procedure is then
followed by the Entering of the data into the computer just as it is given in AOF which is then
further supervised by the Supervisor. Then the customers Account is Debited for New Cheque
Book Charges and Credited to the banks account.
3.2.2 Cash Department
The function of cash department is to prepare Cash Book Position, Statement of the sorting cash,
recognition of the different denomination of the currency and other things which relate to the
cash procedure.

3.2.3 Remittance Department

3.2.3.1 Demand Draft
DDs are always a secure way of paying remittances in other cities. Both account holders and
walk in customers can avail the facility of DDs. Charges tend to differ for both customers but the
advantage tend to be same. DDs are made in the favour of beneficiary and remitter either pays in
cash or through cheque. Charges for DDs are:

Up to Rs. 100,000/-

0.10%, Min Rs. 100 for A/C holders

0.20%, Min Rs. 200 for Non A/C holders

Over Rs. 100,000/-

0.05%, Min Rs. 150 for A/C holders

0.15%, Min Rs. 250 for Non A/.C holders

Issuance of duplicate DD

Rs. 150 for A/C holders

Rs. 250 for Non A/.C holders

When DDs are issued, head office account are debited and remitters account is credited, on
presentation, head office account is credited and beneficiary's account is debited.
3.2.3.2 Pay Order
POs are another safe way of paying your remittances within the city. They are payable at any
branch and then are forwarded for clearing. There charges are:

Issuance of PO

Rs. 75 for A/C holders

Rs. 250 for Non A/C holders
10

Cancellation of PO

Rs. 75 for A/C holders

Rs. 250 for Non A/.C holders

Issuance of duplicate PO

Rs. 150 for A/C holders

Rs. 300 for Non A/.C holders

In case of PO, remitter account is credited and PO A/C of branch is debited. At presentation,
Beneficiary is debited and PO A/C of branch is credited.
3.2.3.3 Uni Remote
Uni Remote is the online facility of depositing cash to any account in UBL. With on-line
banking, you are connected to the complete network of UBL all over Pakistan. Uni Remote
charges are Rs. 200 for cash withdrawal and Rs. 100 for cash deposit.
3.2.3.4 Security Deposit Receipts (SDR)
Security deposit Receipts are your safe way of making payments. Not only its free of cost for
A/C holders, it also offers you the best liquidity solution as the cash continues to be with you
until and unless your deal gets final and you pay off. In case of cancellation, it's also free of cost
for A/C holders and their amount is returned to their normal account balance. For non A/C
holders, Rs. 250 is charged. Duplicate fee is Rs. 250 (flat)

3.2.4 Clearing Department

Clearing is a system available in banks to collect the proceeds of cheques/ others instruments
(Pay Order, Demand Drafts etc) on behalf of customers from the drawee (paying) banks situated
in the same city. Collecting bank acts as an agent of the customer, maintained with collecting

11

banks. This department includes Outward clearing in which UBL is the collecting bank and other
banks are paying banks. UBL customer accounts are credit as a result of outward clearing.
Inward clearing, in which UBL is the paying bank and other banks are collecting banks. UBL
customer accounts are debited as a result of inward clearing.
3.2.5 Lockers and their Operations
When any customer comes to operate his locker, the banker will have to first enter his attendance
in the register along with the date, locker number, key number, time of the operation and the
signature of the customer. Then signatures are verified, before allowing him to operate the locker.
A bank officer will first enter the master key through which all the lockers are opened and then
the customer will enter his key. Customer cannot open the locker by using a single (customer)
key master key should be used by the bank officer. At last the transaction would be entered in the
system.

12

Chapter # 4
Organizational Analysis
4.1 Swot Analysis
4.1.1 Strengths
Product Range compared to competitors is very large. It is the 3 rd largest commercial bank of
Pakistan. It has 1000 online branches all over Pakistan. UBL is a group of companies including
ALFALAH bank and BESTWAY. This group is prestigious for it strong financial position. It has
an effective advertising campaign for consumer banking. UBL has provided Free Insurance
facility to all its account holders, In case of disability. UBL has sold 3,233 cars through UBL
Drive in March 2007 which is one of the milestones it achieved. In addition, in May 2007, 352
cars were sold only in Rawalpindi/ Islamabad. Highest cases of cash line booked in July 2007,
among other UBL consumer product. Cash line customer has insurance, in case of his/her death
or any accident remaining amount will not pay.
4.1.2 Weaknesses
Lacks in effective communication among departments. UBL is not focusing on commercial
baking, as compared to consumer and corporate banking. Processing fee of cash line is little bit
high Rs 2100 for salaried and Rs 2500 business man. There is communication gap among
Headquarter and Branches because of large number of Branches in the country and overseas. The
bank has many contractual employees who are not given the benefits and incentives like the
permanent employment.

13

4.1.3 Opportunities
The owner of the UBL is financially very strong so UBL has the Opportunities to increase the
number of branches in Pakistan and also overseas. UBL being one the largest bank in Pakistan
has great potential to redesign its products fore existing and fresh Depositors. In wake of current
economic conditions and with vast network of 1000 Branches UBL can earn a significant
leverage in competition among other banks through its quality service and standards, and through
adopting novel IT resources. The brand name is strong that can have a competitive edge in
comparison to other banks in the town as people still rely on old banks like HBL, UBL, NBP etc.
4.1.4 Threats
There are a lot of competitors in the banking field such as MCB, Bank Alfalah, NIB, HBL, and
Punjab of Bank etc. These are the main Threats of UBL. The instability of government policies is
also one of the major risk for the smooth functioning of bank. When any competitor of the bank
enters into the market, it tries to attract the employees of UBL with attractive salary packages. If
the employee leaves UBL and joins its competitors, it is a major threat for UBL because the
employees especially in the top management are aware of its policies. Training cost beard by the
bank are wasted when the employees join any other bank. In case of breakdown of technology
especially in the HUB Branch, the bank cannot provide services to its customers. This results in
dissatisfaction of its customers. So it has to keep its IT department in working condition all the
time.

14

4.2 PESTEL Analysis

4.2.1 Political Factors
Political instability in Pakistan can lead to changes in laws and policies which can be in favor or
against UBL. Most of the banks have to finance under the political pressure which becomes bad
later on so it is also a political factor for UBL. Corruption also impact on it. Corruption also
impact on UBL as many Government officials of State Bank demanding bribes for approval of
the new product and opening of the new branch.
4.2.2 Economic Factor
Economy of Pakistan shows a general slow down, showing a negative growth which can have
the potential impact on the growth of UBL. General rise in inflation leads to decrease in the
value of the money over the years and customer demanding high profit rate to meet the inflation
and banks unable to provide them such rates. Literacy rate of the country in lowest in the world
and people of the country unable to use new product of the bank like online banking, call centre,
Debit and Credit cards etc.
4.2.3 Socio-cultural Factors
98% people of the Pakistan are Muslim and interest is prohibited in their religion and they are
reluctant to use the services of the financial institutions and UBL have not entered in Islamic
Banking. Most of the people of Pakistan are not using the banking channel to route their business
transaction mainly non availability of knowledge of product of the Bank. New Government
regulations regarding deduction of With Holding Tax keep in the people away from the financial
institution because they do not want to pay Tax to Government.

15

4.2.4 Technological Factors

UBL purchase new system for interpretation of quantitative and qualitative data to make
financial decision. UBL introduce a Viz Card which is mainly a Debit Card and work like a
Credit Card. Technology changes so rapidly that financial institution has to invest a lot in buying
the new technology and training their employees to use them.
4.2.5 ENVIRONMENTAL ANALYSIS
As Pakistan is an agro-based economy, so the operations of UBL also affected by the way
agricultural products are affected by environmental factors such as climate and weather
conditions. The product of United bank named agricultural loans is specially
affected by it People have now also become more conscious about green products so they value
the organizations taking active part in it. UBL has launched many awareness programs in this
regard. Recently when floods hit many parts of Pakistan, UBL was again seen active in helping
the victims.
4.2.6 LEGAL ANALYSIS
UBL has also been facing challenges as the legal priorities shifted time to time due to changes in
government policies. Although the procedure of preparing financial reports has been the same
but taxation policies, security concerns and legal papers regarding trade business have been
changing due to trade legalities. Increase in minimum wage rate, rights given to minorities in
Pakistan has also affected UBLs operations.

16

4.3 Financial Analysis

The user of financial statements finds it helpful to calculate ratios when they interpret companys
financial statement. The number of financial ratios that might be created is virtually limitless, but
there are certain basic ratios that are frequently used, these ratios can be placed into six different
classes:

Liquidity Ratio

Leverage Ratios

Profitability Ratios

Activity Ratios

Market Value Ratios

The calculation and interpretation of these ratios of financial statements of UBL are as follows:
4.3.1 LIQUIDITY RATIOS
Current ratio

Current Assets
Current Liabilities

Years

2011

2012

Current Assets

43,551,474

43,737,745

44,852,225

Current Liabilities

49,885,889

33,215,308

52,863,178

Ratio

0.873

1.316

2013

0.848

Current ratio is the ratio of current assets and current liabilities. This ratio shows the ability of a
company to pay its short-term debts. If current ratio will be high, it will be more useful for the
business. Higher the current ratio, company is capable to pay more its debts. But in the latest
year ratio is minimum as compared to previous years.

17

Acid Test Ratio/quick ratio

Liquid Assets =

Liquid Assets
Current Liabilities

Current Assets Closing stock prepaid expenses

Closing stock and prepaid expenses are not given in the balance sheet so:
Years

2011

2012

Liquid Assets

43,551,474

43,737,745

44,852,225

Current Liabilities

49,885,889

33,215,308

52,863,178

Ratio

0.873

1.316

2013

0.848

Acid test ratio or liquid ratio is same. This ratio shows the ability of a company to pay its shortterm creditors out of total assets. It describes that cash covers short-term loans. If the liquid ratio
is greater that 1 then it shows credits are covered by loan. In the year 2012 acid test ratio is
decreasing as compared to 2011

Working Capital =

Current Assets Current Liabilities

Years

2011

2012

2013

Current Assets

43,551,474

43,737,745

44,852,225

Current Liabilities

49,885,889

33,215,308

52,863,178

Ratio

(6,334,415)

10,522,437

(8,010,953)

Working capital ratio is the difference between current assets minus current liabilities. This ratio
shows that how much assets a business has. A company which has more working capital is
known as a successive company. Some companies also have negative working capital, which
means that the liabilities of this business are more than the assets. In 2012 bank has negative
working capital, which means that bank liabilities are more than the assets.

18

4.3.2 LEVERAGE RATIOS

Time interest earned/interest coverage ratio =

EBIT
Total Interest expenses

Years

2011

2012

2013

EBIT

22,526,311

21,886,740

23,349,146

Total Interest
expenses

6,079,342

8,511,413

11,065,771

Ratio

3.705

2.571

2.110

Times interest ratio is known as interest coverage ratio. This ratio describes interest payments of
a company, and shows whether company is enabling to pay its interest expenses or not. If the
time interest earned is more then company has the more ability to pay its interest on debt.

Debt to Asset Ratio

Total Debt
Total Assets

Years

2011

2012

Total Debt

355,353,519

385,153,625

439,428,598

Total Assets

412,900,841

445,285,758

511,741,878

Ratio

0.860

0.864

2013

0.858

Debt ratio describes the liabilities of a company. It shows if the debt ratio is more than 1, it
indicates that company has more debt than assets. If the debt ratio remains low then business will
be in good position. In all the three years, debt ratio is less than 1 which indicates that bank
lower debts than assets.

19

Debt to equity ratio

Total Debt
Total Equity

Year

2011

2012

2013

Total Debt

355,353,519

385,153,625

439,428,598

Total Equity

47,338,167

54,120,812

63,120,371

Ratio

7.506

7.116

6.961

Debt to equity ratio indicates the proportion of debt and equity of a company. It is the most
important ratio in accounting. If this ratio is increasing then it is unfavorable for the bank. This
ratio is decreasing consistently, so bank is in favorable condition.

Long term assets / long term debt

Long term assets

Long-term debt

Ratio

2011

Long term assets

369,349,367

401,548,013

466,889,653

Long term debt

305,467,630

351,938,317

386,545,420

Ratio

1.209

4.3.3 PROFITABILITY RATIOS

Net profit margin
=

2012

2013

1.140

1.207

Net income
Net sales

Years

2011

2012

Net Income

16,441,670

15,323,227

15,665,403

Net sales

23,932,935

28,456,583

35,782,189

Ratio

0.68

0.53

2013

0.43

20

Net profit margin shows the profitability of a business. If this ratio is increasing then it shows
that business is in favorable condition. But in the latest year, profit margin of the bank is
decreasing as compared to previous year, which is unfavorable for the bank.

Return on assets

Net income
Total assets

Years

2011

2012

2013

Net Income

16,441,670

15,323,227

15,665,403

Total Assets

412,900,841

445,285,758

511,741,878

Ratio

0.039

0.034

0.030

Return on assets measure the net income to total assets. It shows the ability of a company to
utilize its assets for the purpose of earning profit. In latest year bank has the ability to use its
assets.

Return on investments

Net income
Net investment

Years

2011

2012

2013

Net Income

16,441,670

15,323,227

15,665,403

Net investment

115,358,590

97,790,391

169,484,647

Ratio

0.14

0.15

0.092

Return on investment is the combination of net income to net investment. This ratio describes
what we are getting from our investment. In the latest year return on investment is lower than the
previous year, which shows that investment is not favorable.

Return on total equity

Net income
21

Total Equity
Years

2011

2012

2013

Net Income

16,441,670

15,323,227

15,665,403

Total Equity

47,338,167

54,120,812

63,120,371

Ratio

0.34

0.28

0.24

This is the ratio of net income and total equity. This ratio describes how a company reinvested
earnings to generate additional earning. This ratio shows the efficiency of the company. Investors
like the company having more return on equity.

Gross profit margin

Gross profit
Net sales

Ratio

2011

2012

2013

Gross profit

20,867,884

24,437,462

28,459,868

Net sales

23,932,935

28,456,583

35,782,189

Ratio

0.871

0.858

0.795

Gross profit margin ratio shows the gross profit to net sales. In this ratio, we observe that how
efficient the company has its gross profit. As much the gross profit as much the financial strength
the bank has.

4.3.4 ACTIVITY RATIOS

Total assets turnover

Net sales
22

Total assets
Ratio

2011

2012

2013

Net sales

23932935

28456583

35782189

Total Assets

412900841

445285758

511741878

Ratio

0.057

0.063

0.069

Total asset turnover is the ratio of assets efficiency to generate sales. This ratio is continuously
increasing which shows that total asset turnover is generating sufficient revenue from sales,
which is favorable for the company.

Fixed assets turnover

Net sales
Fixed assets

Years

2011

2012

Net sales

23,932,935

28,456,583

35,782,189

Fixed assets

16,082,781

17,320,485

18,099,010

Ratio

1.488

1.642

2013

1.977

Fixed assets turnover ratio consists of net sales and fixed assets. This ratio describes that how
well business is using its fixed assets to generate sales. This ratio is increasing continuously from
previous years, which indicate that bank is using its fixed assets efficiently.

4.3.5 MARKET RATIOS

Earning per share

Net Income after tax

23

No. Of outstanding shares

Ratio

2011

Net Income

16,441,670

2012

No. Of outstanding 6,282,768

shares
Ratio

2.61

2013

15,323,227

15,665,403

6,282,768

6,911,045

0.22

2.26

This ratio describes the allocation of profit to the shareholders. In the latest year earning per
share is maximum which shows that shareholders are getting profit.
Dividend payout

Dividend paid
Net income

Ratio

2011

2012

2013

Dividend paid

-4,728,496

-9,834,181

-6,735,510

Total Income

16,441,670

15,323,227

15,665,403

Ratio

(0.28)

(0.64)

(0.42)

This ratio describes how much a company has paid its dividend to share holders. But in the
present situation, it is stated that bank has not given dividend to its shareholders.

4.4 Horizental Analysis:

24

UNITED BANK
LIMITED
INDEX /
HORIZONTAL ANALYSIS
BALANCE SHEET
AS AT JUNE 30, 2013
2011

2012

2013

Cash and balances with treasury banks

140%

97%

98%

Balance with other banks

154%

88%

135%

Lending to financial institutions

53%

36%

36%

Investments

116%

109%

113%

Advances

114%

98%

102%

Other assets

125%

107%

109%

Operating fixed assets

108%

103%

104%

Deferred tax assets

173%

102%

101%

117%

100%

105%

Bills payables

101%

61%

63%

Borrowing from financial institutions

187%

78%

88%

Deposits and other accounts

110%

102%

106%

Sub-ordinated loans

Liabilities against assets subject to finance lease

112%

104%

111%

115%

100%

105%

135%

104%

111%

Share capital

100%

100%

100%

Reserves

120%

96%

106%

ASSETS

LIABILITIES

Other liabilities
Deferred tax liabilities

NET ASSETS
SHAREHOLDERS EQUITY

25

Inappropriate Profit

224%

93%

106%

Total equity attributable to the equity holders of the

bank

148%

95%

105%

3%

3%

98%

99%

100%

Minority interest
Surplus on revaluation of assets Net of tax

140%

96%

106%

4.5 VERTICAL ANALYSIS:

UNITED BANK
LIMITED

26

COMMON SIZE /
VERTICAL ANALYSIS
BALANCE SHEET
AS AT JUNE 30,2013

27

2011

2012

2013

ASSETS
Cash and balances with treasury banks

83%

87%

81%

Balance with other banks

59%

67%

57%

Lending to financial institutions

31%

12%

4%

Investments

259%

224%

234%

Advances

774%

654%

616%

Other assets

145%

81%

93%

34%

25%

27%

4%

5%

5%

1274%

1105%

1054%

Bills payables

14%

11%

6%

Borrowing from financial institutions

76%

106%

79%

1049%

859%

840%

Sub-ordinated loans

0%

0%

0%

Liabilities against assets subject to finance

lease

0%

0%

0%

35%

29%

29%

0%

0%

0%

1174%

1005%

959%

100%

100%

100%

91%

93%

94%

Reserves

202%

248%

242%

Inappropriate Profit

202%

248%

278%

Total equity attributable to the equity

holders of the bank

422%

637%

614%

3%

3%

100%

100%

100%

Operating fixed assets

Deferred tax assets

LIABILITIES

Deposits and other accounts

Other liabilities
Deferred tax liabilities

NET ASSETS
SHAREHOLDERS EQUITY

Share capital

Minority interest
Surplus on revaluation of assets Net of
tax

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Chapter # 5
5.1 Internship Experience
I joined UBL for the purpose of Internship. I worked there as an internee for six weeks. During
my stay of six weeks I have worked in UBL Customer Services department. In this department, I
was assigned different jobs, which helped me in gaining some practical experience. Besides this I
have also performed some general tasks also.
Experience with the staff was also very good. The whole staff was very cooperative and friendly,
and everyone treated me very well. I got so much to learn from them and I did that.
I had to report at 9am to 5pm. There was a very strict policy about punctuality as well as
discipline in the UBL General Bus Stand Branch, Multan .
I have worked in different departments of UBL. In which different tasks were given to me. I
performed following major tasks in first three weeks:

New Deposit Accounts Opening

Issuing of Cheque Book
Issuing of ATM Cards
Daily Vouchers Recalling
Inward Dak Entry

And in the remaining three weeks, I performed the following tasks:

Dispatching
Filling of Deposit Slips & Cheques For Customers
Providing Information To Customers About Different UBL Services
Resolving Customers different Complaints
Setting Off the Closed Accounts.
5.1.1 New Deposit Accounts Opening

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In this department my responsibilities were to deal with the customers who come for the opening
of new Accounts. The customers are, first, provided all the necessary information about the
different types of Deposit Accounts so that they can choose the best suitable option which would
be in accordance to their requirements. After this, their Account Opening Forms is filled with the
necessary information as per requirement of the UBLs policies. Then necessary documents are
taken from the customer and are attached with AOF. After that, Signatures of the customer are
taken on the AOF, on Cheque Book Requisition Slip and on Signature Card. Then an account
number is assigned to them. After that, Deposit Slip is to be filled for their Initial Deposit and
also a Free Insurance Certificate is issued to them. An AOF Copy is also provided to them.
This procedure is then followed by the Entering of the data into the computer just as it is given in
AOF which is then further supervised by the Supervisor. Then the customers Account is Debited
for New Cheque Book Charges and Credited to the banks account. All these tasks were assigned
to me.
5.1.2 Issuance of Cheque Books
Issuing of the Cheque Books was one of the major tasks that I performed at UBL. First of all
duly signed New Cheque Book Requisition Slips are taken from the customers who had opened a
new Account and also from the customers whos previous Cheque Book had been finished.
Those requisitions were, then, sent to the NIFT for further process. Within six days, new Cheque
Books with the names of their corresponding owners along with their accounts are received back
which are, then, handed over to their respective owners. At the time of giving new Cheque
Books, they are first entered into the Computer and then the entries are further supervised by the
Supervisor, which results in the activation of Cheque Book.

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There is another safe policy of the bank to protect its customers money i.e. if the customer fails
to collect the Cheque Book within the period of two months, the Cheque Book is destroyed so
that no one can misuse that Cheque Book.
The Cheque Book Account of the request maker is Debited at the time of submission of the New
Cheque Book Requisition Slip.
5.1.3 Issuance of ATM Cards
5.1.3.1 Issuance Of New ATM Cards
Request for an ATM Card can be made both, either at the time of Opening the Account or later.
In the AOF there is a separate section which serves as an ATM Card Requisition. The ATM Card
requests are sent to the Head Office, from there manufactured ATM Cards along with their Pin
Codes are received by the Branch which are, then handed over to the customers after taking their
signatures on the Terms And Conditions applied by the ban on the use of ATM Cards. Here one
more thing is notable that only the Branch Manager issues the Pin Codes of ATM Cards.
If the customer doesnt have an ATM Card or he has accidentally lost his ATM Card, then he is
allowed to submit a request for a new one at any time. The process of the ATM Card in this case
is same as mentioned in the previous case.
Here UBL gives its another attractive service that a customer can seven extra supplementary
ATM Cards along with the primary one. This offer is especially for the customers who own a
Join Account at UBL. Other customers can also enjoy this offer.
If the ATM Card is not collected by the customer within the sixty days of after submitting the
request, the ATM Card is dispatched to the present home address of the customer. During the

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time of dispatch a letter is send to the ATM Cell Islamabad also notifying that the ATM Card is
send to the customers present home address.
5.1.3.2 Issuance of Captured ATM Cards
Sometimes the ATM Machine encounters a mechanical error and, thus, the ATM Card of the user
gets stuck into the ATM Machine, which can be of the same branch, of another branch or of
another bank. The ATM Card Number and the Name written on the ATM Card along with the
date of recover from the ATM Machine of those Captured ATM Cards are entered into the
Captured ATM Cards Register. They are given back to their owners when their owners come
after verifying their CNIC and signature on the Online CRM System of UBL and receiving a
copy of their CNIC along with a signature assuring and proofing that the ATM Card is handed
over to its corresponding owner.
If an ATM Card Recovered from ATM Machine is not collected by its owner then they are
treated according to the UBL Branch or the Bank mentioned on the face of ATM Card. In the
case of an ATM Card of UBL but of another Branch, the ATM Card is dispatched to the UBL
Branch after checking Branch from the Branch Code mentioned on the ATM Card. In case of an
ATM Card of another Bank, the ATM Card is sent to the ATM Cell Islamabad.
5.1.4 Daily Vouchers Recalling
Daily Vouchers Recalling is simply the counter checking of the daily transactions. Every next
day, the previous days transactions are checked carefully through Vouchers Recalling. In this
every transaction is carefully examined and checked that whether yesterday, right accounts were
credited and debited according to the transactions which were made through different

32

instruments. Mistakes of crediting and debiting can be identified and corrected through vouchers
checking. Besides this Vouchers are also used for record keeping.
There are mainly two types of Vouchers.
50s Vouchers
90s Vouchers
50s Vouchers Recalling is used to check the previous days Cash, Clearings, and Transfers etc.
while 90s vouchers tell us about the transaction in the General Ledger.
5.1.5 Inward DAK Entry
Bank receives many Cheques, Pay-Orders and Demand Drafts through different mailing and
courier services for crediting Accounts of different customers. These instruments are credited
into the different Accounts through a certain process. The received instruments are entered into a
register called Inward DAK Register along with the Date, Instrument Number, Amount, Name
of the Instruments Bank and the Name and the Account Number of the Recipient Creditor. After
entering this information into the register, they are Received and signature by an authority in the
Cash Department i.e. Chief Teller.
To create more ease for the customers, UBL has now placed Drop Boxes in its every Branch.
Now customers who have to pay Electricity, Telephone, Gas bills and Repayments of UBL
Drive, Loans and Credit Cards etc, they can simply walk-in the bank and drop their Cheques,
having written their loan number on it, into the Drop Box. The bank will carry out the transaction
on the customers behalf. Cheques received from Drop Boxes are also entered into the Drop Box.

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5.1.6 Dispatching
Dispatching involves the entry and record keeping of outgoing mails, notifications and letters etc
to customers, other branches of UBL etc e.g. sending Letter Of Thanks, Captured ATM Cards,
notifications for other UBL managers.
5.1.7 Filling of Deposit Slips & Cheques For Customers
UBL is a public Bank that is why its products and services are for the whole population of
Pakistan. Many a times such customers come who are illiterate or have no knowledge of how to
fill the Cheques and Deposit Slips. There I offered my services to such people who do not know
how fill these instruments formally. Some customers who have come to the bank for the first
time and have no concept of how to fill these things, there I also filled the Deposit Slips and
Cheques for them. More over I filled AOFs, New Cheque Book Requisition Slips, Bank
Statement Requisition Forms, ATM Card Requisition Forms etc. I also wrote applications of
different kinds for the customers.
5.1.8 Providing Information To Customers About Different UBL Services
Some walk-in customers came to the bank just for the purpose of getting information about
different products and services that UBL is offering e.g. Credit Card, UBL Drive, UBL Home
Address etc.
Some customers came just to have knowledge about different types of UBL Accounts, they were
also well entertained by me e.g. UBL COD etc.
I tried to give them the information as much as I knew.

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5.1.9 Resolving Customers Different Complaints

Customers with different problems and complaints also used to come to the bank. Some of the
problems are stated below:Customer has lost a Cheque and wanted to block, Customer has issued
a Cheque and wanted to stop the payment on that Cheque, Customer was unable to collect his
Cheque Book within the valid time of sixty days, which was then destroyed, and wanted a new
Cheque Book, Customers Cheque Book is finished and he needs to draw payment from his
Account due to some emergency, Customers ATM Card has got locked.
Customer has got a torn Rs.1000 note from the ATM Machine.
Customers Cheque got bounce.
His registered number, in the AOF, has lost and he needs to activate his ATM Card.
I tried to resolve the above mentioned problems following the due procedure. My basic aim was
to satisfy the customer and I succeed in resolving the most of the problems while in some cases I
took help fro my Senior Employees.
5.1.10 Setting off the Closed Accounts
I was given a project that included going through all the Accounts, searching of Closed
Accounts, then the separation of the Closed Accounts from the Active Accounts, assembling
them in the ascending order of their Account Numbers and separately file them in a separate
folder. I did this job paying my full attention. Finally I succeeded in completing this task in fine
manner and in the end I gained words of appraisal from my senior employees.

35

Chapter # 6
6.1 Recommendations
6.1.1 New young talent should be introduced
There is also a need of proper recruitment and selection program. New young talent should be
introduced to inject the new ideas.
6.1.2 Employees should be trained on regular basis
Along with the officers, the training must also be given to the clerical staff because still many of
the operations of UBL are dependant upon manual system. The training of Clerical staff will
directly improve the effectiveness and the efficiency of their work.
6.1.3 Job rotation policy
Most of the bank employees are sticking to one seat only, with the result that they become bored
of one particular job and also, they 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, and the employees should be given proper promotions.
6.1.4 The proper rewards should be given to the deserving individuals
To motivate the employees of the bank, regular bonuses and incentives should be given to them.
Working conditions must be improved for the employees. Bank will definitely get more benefits
after making some expenditure on the working conditions, as it improves the efficiency and
productivity of the employees. Poor working conditions make the employees tired due to which
the employees cannot pay full attention to their work.

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6.1.5 Provision Of Data To Internees

With the internship letter should also be requested to provide us the financial reports. Because
when we demanded the financial reports they said that this is confidential. And they are not
allowed to provide these statements to any internee.

6.2 Conclusion

Banking is one of the most sensitive businesses all over the world as banks play very vital
role in the economy of a country and Pakistan is no exemption.

United Bank has been growing both in size and profits for past few years and is one of
the most reputed groups. It has gained a good repute in the banking sector of Pakistan.

Employees are the most important assetSs for any organization as the success of any
organization lye in their hands, therefore there is a need the group to focus on the needs
of their employees. The bank has to overcome its weaknesses and should avail the
opportunities available in the industry, because competition is very intense particularly in
the banking sector these days the organization which offers far better services to its
customers than its rivals will succeed ultimately.

I have made an honest attempt to generate an original piece of writing. I truly hope that
this report also certifies the fact that all of my worthy teachers performed their duties of
academic guidance and moral mentoring with utmost efficiency and effectiveness.

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6.3 References

www.google.com

www.ubl.com.pk

Annual Report of UBL

Mr.ADNAN AHMAD (Branch manager UBL)

www.wikipedia.com

www.answers.com

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