5.2 SWOT ANALYSIS:SWOT is useful tool for providing a framework for analysis of an organization.

SWOT stands for Strengths, Weaknesses, Opportunities and Threats. It is acommon approach to make assessments in terms of internal and externalenvironment of the organization, and to formulate strategies analyzing its internalstrengths and weaknesses, external opportunities and threats, coming up is theSWOT analysis for the UBL.5.2.1 STRENGTHS:It is one of the largest private banks with a deposit base of Rs. 94883/-millions showing constant growth over the period from 1999 till the day.It has a well-knitted and adequately equipped branch networking systemthat efficiently covers both the domestic and international markets.It is involved in both corporate and retail banking.The bank is actively emerging and is engaged in international trade andforeign exchange transactions. Foreign trade volume showed an increaseof 17% over the previous year.Advances investment of the bank shows a constant growth pattern. Thecurrent years growth rate is 32%.53 The overall efficiency of the bank operations and management ability can be noticed by looking at to its income pattern and provisions/write off practices.o Net revenue from funds increased by 18% for the current period.oProvisions decreased by 14%.oTotal income increased by 16%.UBL is actively participating in international markets and has recentlyintroduced credit cards in UAE, Behrain, and Qatar, being backed up by24 hours call center out of UAE.The bank is owned by parties of financial repute and credit worthinesslike, SBP with 48.69% interest, Best Way group and Abu Dubai groupwith 25.50% of interest each. Others are GOP, NBP Trustee Department,State Life Insurance Corporation etc.The bank is run by highly professional recruited from and trained byforeign banks like Citi Bank.5.2.2 WEAKNESSES:Due to risks such as political, economic and legal etc the bank has sufferedlosses the main reason was that of piling up of large amount of unrecoverable loans and debts which has adversely affected the image of the UBL.Accumulated losses pushed the bank to cut down its promotional activitiesin order to reduce expenses for last few years.During the nationalization life span of the bank political lords usedinfluence in bank business and selection of employee at each level andthus adversely affected the banks efficiency and effectiveness.Administrative expenses are 51% of the mark up revenue.54 Promotions are carried out on annual basis ignoring the importance of capabilities and performance outputs.The bank has large number of employees who are simple graduates withno banking knowledge.Ineffective system of recruiting and selection.Lengthy credit processing and documentation procedures.Unsatisfactory working conditions.5.2.3 OPPERTUNITIES:Growing policies of the GOP on business and economic sectors provideUBL an opportunity to efficiently meet with the business peoplerequirements of instant cash facilities e.g. the government intentions of developing housing and agriculture sectors.The efficiency of stock market and sound exchange reserve level is providing a good opportunity for effective investment decisions.Foreign remittances are another area as present world wide controlsystems over transfer of currencies through illegal channels has facilitatedthe area for the banks.Reconstruction of Afghanistan is a golden opportunity where the bank caneffectively participate.Expansion of IT platform and internet based banking system.Interest of businesses in leasing facilities provides a healthy opportunityfor banks.There is a large pool of unemployed MBAs who can be hired to achieve professionalism on its organizational culture.55

Outsourcing of promotional companies or use of available excellent promotional facilities.Entering new market segments.Increase the product range to meet the broader range of customers needs.5.2.4 THREATS:Increase in competition due to increasing number of foreign and domestic private banks offering highly specialized and attractive services.Growing global technological advancements and adaptation of modernstyle of management in banking sectors.Extensive promotion campaigns run by competitors.Unemployment, lower level of income and prices like problems in themotherland coupled with low rate of industrialization, geo politicaladverse conditions, religious factor, lack of consistency in policies due to political instability are some of the other major threats.This SWOT analysis is a mirror image of the banks present conditions. Someefforts are made and others are still required to be made in order to improve thesituation. The management can develop elaborate strategic plans for capitalizingthe available opportunities. The bank should maintain principal of professionalmanagement and adhere to sound and sophisticated banking rules and regulationsso that confidence and trust of the public in the institutions could be re earned.56 CH # 6RECOMMENDATIONSRecommendations are considered to be the most important part of an internshipreport, without which no report is considered complete and meaningful. This partof the report is based on the previous sections i.e. review and analysis. Moreover,for bringing suggestions, discussions have been conducted with the staff of UBLofficers, who not only provided the basis for recommendations but also pointedout some areas, where the change for the development is utmost important.Realizing the importance of this section, efforts have been made to give feasiblerecommendations, which are categorized under the following headings.6.1 HUMAN RESOURCE DEPARTMENTThe importance of manpower cannot be denied in any organization. In case of banks it is the most valuable asset, because the bank is very sensitive organization57 and to be in harmony with this sensitivity, need for proper human resource is felt badly. Critical analysis of UBL necessities recommending suggestions that wouldincrease banks efficiency and effectiveness.Development of Managerial LeadershipIn services industries like banks the need of managerial skill is much moreimportant. It makes positive contribution towards higher effective results. Withoutdevelopment of managerial leadership, the effective utilization of the humanresource will be impossible. UBL should also focus on this area and should avoiddeficiencies in managerial leadership, by applying the modern styles of management.Political interference:The political intervention in the bank needs to be stopped so that the top hierarchyas well as the personnel placed at other important levels of the institution is notchanged Just on political grounds and the on going developmental work is notobstructed. It will enable the management to formulate long term strategies andtheir proper implementation because the long term policies, accurately based oncalculated risk, have proved the pivotal role players for organizational sustainabledevelopment.Basis for Promotion:A sizeable portion of the officers of UBL, are promoted in without test andinterviews to officers cadre. The promotion policy must be too tight andtransparent that no one may have the chance to be promoted on criteria other thanthe required qualification, experience and performance. As for the present excessstaff, those not found up to the required criteria, may be given GHS etc.Management Changes on Merit:58

In UBL, though vary rare fresh recruitments are made, and the bank facessaturation in personnel, now clipping will be more helpful. This downsizing willleave the bank with the staff, to be retained on the basis of ultimate meritocracywith zero tolerance of incompetence. Now in this remaining workforce, a culturalchange right from the top management down to the front line, that better suits tothe present day needs of banking environment could be included through proper discipline and training.Needs of change in Recruitment Policy:It is important to say that the external level market is full of the required talentlike MBA, M. Com etc,. But on the country only graduation with simple subjectsis still the requisite qualification for officers cadre, which has already workedamply in the devastation of UBL. Therefore the recruitment qualification to theofficers framework should be enhanced for simple graduation, to professionallyqualified preferably Masters in their respective fields.Refresher Courses:The Human of the bank should frequently conduct meaningful refresher courses,seminars and workshops with a view to improve the knowledge of the staff. Dueto severe competition and technological developments, the banking business isexperiencing rapid changes therefore the HRD should have arrangements for staff trainings to cope with the new changes that may become threats for the interest of the bank.Computer Trainings:The present conventional and orthodox training programmes need to be mademore comprehensive and reinforced with inclusion of computer training courses.Training for Credit Management:59 Special trainings on credit management should be imparted to the finance dealingstaff. Financing is main fountain banks income. Sound finance are extremelynecessary for opening of springs of the smooth inflow of the income.Training with Clear Objectives:Training needs assessment is necessary so that only the relevant staff is sent for the training courses.Change in Appraisal System:The present performance appraisal system is good. However, it needs to beimplemented in true sense. The drawbacks that are obvious like nepotism andfavoritism etc. need to rooted out and the culture of ultimate meritocracy inappraising needs be inculcated.Introduction of New Courses:The human recourses division of the bank should focus on the restoration of thecorporate image of the bank by floating programmes such as, marketingexcellence, courses on corporate culture and others. Usually in businesses thewholesalers, retailers and other intermediaries are finished by opening a network of the business own outlets. It works as profit maximization devise. In my opinionthe above two programmes marketing excellence and corporate culture, addedwith the best counter service and outdoor informal relationship with the potentialcustomers by the line managers will save the sum of money spent on variousmedia of advertisement.Cheaper means for Postings etc.60 The culture of attachment of hopes with the elements outside UBL, for promotion,transfers, postings, and other benefits requires eradication from the roots.Customers Orientation:Every entrepreneur if concerned about the success of his business, has tounderstand, recognize, carefully and appropriately that his customer is TheKing of the business system and the original spring of the business revenue.UBL should recognize its customers as the mainstream of the banks revenue.They need to be provided the deserved respect, quality and in time service and to be politely dealt with.Career Development:As a matter of personnel policy HRD of UBL should prepare a plan showing thefuture growth potential of employees on the job performance and

evaluation and itshould be made known to the employees. In this regard, employees should begiven opportunities to show their performances, which would help in their career development.6.2 CREDITS AND ADVANCES DEPARTMENT:The defaulted loans have showered the process of development of banking sectorsin Pakistan and have reduced the lending capacities of banks. In result of whicheconomic growth has reduced and rate of industrialization has become lowered.Defaulted loans being the major cause for this depression, various suggestions andrecommendations have been given with focus on UBL to overcome the drawbacksof this department.Training for RMs:61

YSIS: T stands for Strengths, Weaknesses, Opportunities and Threats. It is amon approach to make assessments in terms of internal and external . otal income increased by 16%. sses the main reason was that of piling up of large amount of ing the nationalization life span of the bank political lords useds efficiency and effectiveness. L an opportunity to efficiently meet with the business people ficiency of stock market and sound exchange reserve level is reign remittances are another area as present world wide control sourcing of promotional companies or use of available excellent TS: herland coupled with low rate of industrialization, geo politicalion. The management can develop elaborate strategic plans for capitalizing e areas, where the change for the development is utmost important. lopment of managerial leadership, the effective utilization of the humaniciencies in managerial leadership, by applying the modern styles of terviews to officers cadre. The promotion policy must be too tight and In UBL, though vary rare fresh recruitments are made, and the bank facessaturation in personnel, now clipping will be more helpful. This downsizing willleave the bank with the staff, to be retained on the basis of ultimate meritocracywith zero tolerance of incompetence. Now in this remaining workforce, a culturalchange right from the top management down to the front line, that better suits tothe present day needs of banking environment could be included through proper discipline and training. Needs of change in Recruitment Policy: It is important to say that the external level market is full of the required talentlike MBA, M. Com etc,. But on the country only graduation with simple subjectsis still the requisite qualification for officers cadre, which has already workedamply in the devastation of UBL. Therefore the recruitment qualification to theofficers framework should be

enhanced for simple graduation, to professionallyqualified preferably Masters in their respective fields. Refresher Courses: The Human of the bank should frequently conduct meaningful refresher courses,seminars and workshops with a view to improve the knowledge of the staff. Dueto severe competition and technological developments, the banking business isexperiencing rapid changes therefore the HRD should have arrangements for staff trainings to cope with the new changes that may become threats for the interest of the bank. Computer Trainings: The present conventional and orthodox training programmes need to be mademore comprehensive and reinforced with inclusion of computer training courses. Training for Credit Management: 59 Special trainings on credit management should be imparted to the finance dealingstaff. Financing is main fountain banks income. Sound finance are extremelynecessary for opening of springs of the smooth inflow of the income. Training with Clear Objectives: Training needs assessment is necessary so that only the relevant staff is sent for the training courses. Change in Appraisal System: The present performance appraisal system is good. However, it needs to beimplemented in true sense. The drawbacks that are obvious like nepotism andfavoritism etc. need to rooted out and the culture of ultimate meritocracy inappraising needs be inculcated. Introduction of New Courses: The human recourses division of the bank should focus on the restoration of thecorporate image of the bank by floating programmes such as, marketingexcellence, courses on corporate culture and others. Usually in businesses thewholesalers, retailers and other intermediaries are finished by opening a network of the business own outlets. It works as profit maximization devise. In my opinionthe above two programmes marketing excellence and corporate culture, addedwith the best counter service and outdoor informal relationship with the potentialcustomers by the line managers will save the sum of money spent on variousmedia of advertisement. Cheaper means for Postings etc. 60 The culture of attachment of hopes with the elements outside UBL, for promotion,transfers, postings, and other benefits requires eradication from the roots.

Customers Orientation: Every entrepreneur if concerned about the success of his business, has tounderstand, recognize, carefully and appropriately that his customer is TheKing of the business system and the original spring of the business revenue.UBL should recognize its customers as the mainstream of the banks revenue.They need to be provided the deserved respect, quality and in time service and to be politely dealt with. Career Development: As a matter of personnel policy HRD of UBL should prepare a plan showing thefuture growth potential of employees on the job performance and evaluation and itshould be made known to the employees. In this regard, employees should begiven opportunities to show their performances, which would help in their career development. 6.2 CREDITS AND ADVANCES DEPARTMENT: The defaulted loans have showered the process of development of banking sectorsin Pakistan and have reduced the lending capacities of banks. In result of whicheconomic growth has reduced and rate of industrialization has become lowered.Defaulted loans being the major cause for this depression, various suggestions andrecommendations have been given with focus on UBL to overcome the drawbacksof this department. Training for RMs: 61