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PROJECT
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the abstract of the document here. The abstract is typically a short summary of the contents of the document.]
Qurtuba University
of Science & Information Technology
Dera Ismail Khan
Qurtuba University
Dera Ismail Khan
ASSIGNMENT
ON
INCENTIVE

Submitted to:
SIR. GOHAR
Submitted By:
KASHIF RIAZ
ROLL NO.3
BBA (4th semester)
Session: 2010
Subject: Human Resources Management
Qurtuba University
era Ismail !han
INTERNSHIP REPORT ON
UNITED BANK LIMITED OF PAKISTAN
External Examiner:
Sinat!re""""""""""""""""""""""
Dire#t$r:
PROF% &USAIR H A'AN
Sinat!re""""""""""""""""""""""
S!(er)i*$r:
MA+AM% AKHASHA IMRANI
De*inati$n Le#t!rer
Sinat!re""""""""""""""""""""""
PREFACE
Banking is the backbone of the economy of any country. In akistan! banks are no" getting
the attention and support of the go#ernment! to nourish and initiate the de#elopmental
pro$ects in this %ountry. Banks ha#e also attained a high le#el of initiation! producti#ity! and
gro"th. &ne such bank "ith ne" policies and strategies pushing forth to"ards progress is
Unite" #an$ %imite"! "hich has since its inception sho"n remarkable achie#ements and
disco#ered ne" a#enues of inno#ati#e banking.
During my t"o months Internship in 'B(! )ain Branch Bannu! I ac*uired first hand
information about %onsumer Banking of the bank.
+eport "riting is in fact a crucial e,ercises because the performance of a student is $udged
through this report. I ha#e tried my le#el best to co#er e#ery aspect of this speciali-ed
banking acti#ity! asses the "orking and performance of the %enter and for"ard solutions for
its further impro#ements.
. number of persons ha#e offered their help and guidance in "riting this report. I e,press my
thanks to my super#isor )+../T.B K0.1! and my manager )+. 2.3ID K0.1. I "ould
also like to thank to the other staff members of 'B(! especially )+. 0.1I/ '((.0
K0.1 ! "ithout "hose support it "as impossible for me to do this tedious $ob.
&RS'& (E'(OO
##&)IT *'O+S,
Roll +o-./0
Session 0112)31
ACKNO'LEDGEMENT
In completion of this "ork I am thankful to .lmighty .((.0! as I firmly belie#e! "ithout
his gracious help4 this accomplishment "ould not ha#e been possible.
/irst and foremost! my deep appreciation! gratitude and indebtedness to my super#isor
)+../T.B K0.1! (ecturer! Institute of )anagement Sciences! 'ni#ersity of Bannu! for
his continuous encouragement! moral support and generosity in sharing his time and
kno"ledge during my studies.
I "ish to e,press my sincere gratitude to personnel of 'B(! )ain Branch! Bannu! for their
help and guidance during my Internship.
Thanks to the constraints of academic protocols! that those "ho "ere and are al"ays first in
my mind are being mentioned last. They are my parents and my lo#ed ones. It is! I belie#e!
their sincere prayers! "hich "ere a constant source of strength and inspiration to me that
resulted in the completion of this "ork. I dedicate this "ork! blended in my boundless lo#e
and affection! to them.
&RS'& (E'(OO
##&)IT *'O+S,
Roll +o-./0
Session 0112)31
E,ECUTIVE SUMMAR-
1o" a day5s strong and efficient capital and financial institutions are the basic
re*uirements of each country. So no country can be considered strong "ithout ha#ing strong
enough capital and financial institutions and markets. &ne of the components of these
financial institutions are the banks. 1o one can deny the role the banks are playing in the
economic de#elopment of a country.
In akistan5s banking sector! 'B( is one of the leading commercial banks. 3ery
reno"ned bankers such as I.I. %hundrigar and .gah 0assan .bidi established 'B( in 6787.
/rom the #ery beginning! 'B( "as sho"ing #ery good performance but in 679: after the
nationali-ation of commercial banks! the bank has recei#ed some #ery se#ere financial
shocks. The shocks recei#ed in 6778 "ere so se#ere that SB had to assume the control of the
bank in order to sa#e it from bankruptcy. But after taking o#er the management of the 'B(
by the ne" set;up under the leadership of <ubyr Soomro! the bank "as successful in
rebuilding its shattered image. The ne" management started ne" schemes and in$ected ne"
concepts in order to impro#e its ser#ices to the clients. 1o" the bank is in #ery good financial
position and also has gained its lost =ood"ill.
)y t"o months internship in 'B( )ain branch Bannu! ga#e me a #ery good deal of
the practical e,perience about the bank! its personnel and #arious ser#ices it offers to the
clients. .lthough t"o months duration for studying organi-ation by no means is enough but I
ha#e tried my e#er best to co#er all the areas of the bank in my report.
This report highlights the operations and functions of bank. Banks acts as financial agents to
their customer4 in return they get re"ard for their ser#ices. Banks play important role in
de#elopment of society. . strong economy must ha#e a good banking system.
'nited Bank (imited is one of the leading banks in akistan. This report e,plains ho"
different functions of 'B( "orks and "hat are their ser#ices. During the critical analysis! it
"as obser#ed that 'B( is one of the leading commercial banks of akistan.'B( has a greater
responsibility for safety and prudence. since commercial banks must make a li#ing by putting
the money at their disposal to "ork! they are faced "ith the problem of making a li#ing
"ithout $eopardi-ing the safety of their institution and 'B( is doing all this #ery efficiently.

T.B(> &/ %&1T>1TS
S-+o- To4ic Page +o-
reface I
.ckno"ledgement ii
(ist of Tables #i
(ist of =raphs and %harts #ii
(ist of .cronyms #iii
>,ecuti#e Summary i,
Cha4ter 5 3
6. I+TROUCTIO+
6.6 Background of the Study 3
6.? &b$ecti#es of the Study 3
6.@ Scope of the Study 3
6.: Importance of the Study 3
6.8 (imitations of The +eport 0
Cha4ter 5 0
?. E6O%UTIO+ O7 #&+!I+8
Introduction /
?.6 =ro"th and 0istory of 'B( /
?.? Subsidiaries 9
?.@ 2oint 3enture 9
?.: +ole of 'B( in 1A/ :
?.8 )ission Statement of 'B( :
?.B &b$ecti#es of 'B( :
Cha4ter 5 /
@. OR8&+I;&TIO+&% STRUCTURE
@.6 'B( &rgani-ational Structure <
@.@ Di#ision of 'B(5s &ffice .
@.B &rgani-ation 0ierarchy chart =
@.9 (ocation map "ork of 'B( in .K 6?
:. EP&RT(E+T&TIO+
:.6 .ccounts Department 3/
:.? +emittances Department
39
:.@ Deposits Department
32
?.: /oreign >,change Department
3.
:.8 .d#ance department
01
Cha4ter 5 :
8. SER6ICES & PROUCT O7 U#%
8.6 =>1>+.( D>&SIT
0/
8.? %'++>1T D>&SIT
0/
8.@ S.3I1= D>&SIT
09
8.: /IC>D D>&SIT
0:
5.5
'1I;%.S0
0:
5.6 'B( A.((>T 3IS. %.+D 02
Cha4ter 5 2
B. S>OT &+&%?SIS
B.6 Strengths
0=
B.? Aeaknesses
0=
B.@ &pportunities
/1
B.: Threats
/1
Cha4ter 5 <
9. 7I+I+8S &+ RECO((E+&TIO+S
//
9.6 Deposits Department
//
9.? +emittances Department
/9
9.@ %ash Department
/:
7.4 Bills and %learing Department
/:
7.5 .d#ance department /2
BIB(I&=+.0D /.
C'&PTER 3
I+TROUCTIO+
I1T+&D'%TI&1
1.1 Background of study-
'nited Bank of akistan is one of the leading and first go#ernment recogni-ed bank in
akistan. .imed 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 de#elopment "as that the 'B( in addition to being a commercial
bank in the public sector at a time "hen all other commercial banks "ere in the pri#ate sector
also came to ac*uire certain characteristics "hich to this day set it apart from other
commercial banks of the country.
The establishment of 'B( thus signaled the achie#ement of another milestone in the
de#elopment of the banking industry in akistan.
1.2 Objective of the study
/or getting the )aster degree of Business .dministration! each student is re*uired to
spend at least t"o months as an internee in a recogni-ed organi-ation. The students are
re*uired to "ork in their o"n field in "hich they ha#e done their speciali-ation.
)ain purpose of this program is to make students familiar "ith the practical "ork! as
there is great difference bet"een "hat they ha#e learnt during their )B.. .nd ho" the $ob is
practically done.
.nother important aspect of the internship program is that internee is placed in most
of the departments of the organi-ation through $ob rotation. It pro#ides a glance of each
department! as the period is too short for learning in detail.
1.3 Scope of the study
It is a compulsory re*uirement for the a"ard of )aster5s Degree of Business .dministration.
It "ill help the present and prospecti#e students of the department in making assignments and
"riting reports on the 'B(! e#olution of banking! importance of banking and
different operations.
It can also pro#ide help to 'B(5s management in identifying their Strengths! Aeaknesses!
&pportunities and Threats.
It can also pro#ide assistance to students seeking financial data for analysis.
3-9 I(PORT&+CE O7 STU?
Banks play a central and #ery important role in the economic life of a country! that5s
"hy they are considered as the lifeblood of modern economy. Today no one can deny the
importance of banking in the economy. They facilitate and e,pedite trade and commerce and
pro#ide a #ariety of ser#ices that one can5t imagine "ithout banks.
I ha#e chosen the 'nited Bank (imited ine 3ie" +oad branch for my internship
because it has all the departments a bank could ha#e.
Besides this! 'B( plays an important role in the economic de#elopment of akistan.
1. !imitation of the "eport
There "ere ho"e#er some limitations and that is the t"o months durations of
internship are nothing to gain entire kno"ledge of banking. )oreo#er the bank does not "ant
to pro#ide data particularly about the rightsi-ing of employees and stuck;up loans due to
#arious reasons! so the reader must also keep this in mind.
C'&PTER 0
E6O%UTIO+ O7
#&+!I+8
E6O%UTIO+ O7 #&+!I+8
0-3 'istorical #ac$groun" an" 8ro@th of U#%A
EThe reser#e Bank of India "hich "as gi#en the responsibilities of
e,ercising control o#er banking sector did not perform its duties properly in
akistan.F
The real momentum "as gi#en to banking system "hen the State Bank of
akistan! "as established on 6
st
2uly 67:G. But a real turn took place in the
banking section "hen a reno"ned banker .gha 0assan .bdi took initiati#e of
opening a bank! "hich he announced to the different mode from the others. 0is
dream became true "hen the first branch of 'nited Bank (imited H'B(I "as
opened at )acleod +oad Hno" 6.6. %handrigar +oad KarachiI on 9
th
1o#ember
6787.
This achie#ement "as recurred after passing through many problems and
after completion of a lot of legal formalities. 'B( "as established on ?:
th
2uly
6787 as a public limited company "ith registered office at 6.6 %handrigar +oad!
Karachi. The authori-ed capital "as +s. ?! JJ!JJ!JJJ issued! subscribed and
paid up capital "as a +s 6!JJ!JJ!JJJ share of +s. 6J6 each. . The bank currently
operating through 6@JJ! branches in all the ma$or cities of the akistan and its
registered office are situated at state life insurance corp. Building K 6! 66.
%hundrigar road! Karachi.
'nited bank limited is one of the most famous bank "orking in different
area of akistan! 'B( is no" officially the second largest pri#ate sector bank in
akistan "ith its ?8 percent gro"th in deposits to +S ?@9 billion in ?JJ:.
rogressi#e Banking "as a #ision that came true in 6787 "ith the birth of
'B(. It brought in an era of modern banking and customer care beyond the
ordinary.
The Bank launched a #ariety of consumer banking products and ser#ices L 'B(
Dri#e! 'B( %ash line! 'B( .ddress! 'B( Business (ine! 'B( Aallet .T)
card and 'B( Business artner.
'B( is one of the largest commercial banks in akistan "ith assets of
o#er +S. 67J billion! 1et .ssets of o#er +S. 6@ billion and a solid track record
of :9 years. 'B( offers its ser#ices through a nation"ide net"ork of o#er 6@JJ!
branches spread all o#er akistan and 68 o#erseas branches. The Bank earned
+S :.@ billion pre;ta, profits in ?JJ@! a 87 percent increase o#er the pre#ious
year! and announced a di#idend of ??.8 per cent. This remarkable performance
"as based on a record gro"th of @G percent in ad#ances! "hich gre" from +S
9?.G billion in ?JJ? to +S 6JJ.? billion in ?JJ@ dri#en by gro"th in deposits
from +S 68G.@ billion in ?JJ? to +S 6G8.6 billion in ?JJ@.
The Bank "as pri#ati-ed in ?JJ?! through the sale of 86 percent stake to
a consortium of the .bu Dhabi =roup led by 0is 0ighness Shaikh 1ahayan
)abarak al 1ahayan and the Best"ay =roup led by Sir )ohammed .n"r
er#e-!. The issue is unsecured and subordinated to payment of principal
and profit to all other indebtedness of the Bank including deposits.
'nited Bank (imited is one of the largest commercial bank in the
country. Aith almost :9 years of good standing to its #alued clients! it has stood
the test of time! producing assets of o#er +S. ?G? billion.
It offers its ser#ices through a "ide net"ork of o#er 6@JJ! domestic branches all
o#er akistan and ?8 o#erseas branches as part of global net"ork.
0-0 Subsi"iariesA
'B( . =. <urich HS"it-erlandI established in 67BG.
Its paid up capital of dollars ?9?? thousand! deposits of dollars 8G?9
thousand and ad#ances of dollars 88@G thousand as on Dec @6! 67B?.
'B( of (ebanon and akistan established in 67BG.
Its paid up capital of dollars @97JJJ deposit of dollars 6?879G ad#ances
of dollars 67G@@6@.
0-/ Joint 6entures A
a. %ommercial bank of &man (imited H)ascotI established in 67G?.
b. 'nited Saudi %ommercial Bank (imited HSaudi .rabiaI established in
67G?.
c. 'B( has been presenting a #ery good track record since its inception
into banking business.
0-/ #ranches
'B( has a large net"ork of branches! "hich e,tends to the remotest areas
of the country. In December 67G@ there "ere 6B?@ branches "here in 679: it
had only 6?@G branches. .t present 'B( ha#e 6J7B domestic branches. and
present 68 o#erseas branches. some names are .Bahrain! Matar! Saudi .rabia!
'nited .rab emirates! Demen .rab +epublic! 'K ! S"it-erland! >gypt! &man
and The 'nited States.
2.# "o$e of %B! in &'&
The role of 'B( has de#eloped largely4 throughout the country in #ery
short period of forty se#en years. The bank is operating in the entire country and
has branches all o#er the country and o#erseas. In 1.A./.! 'B( is operating
successfully. The number of branches of 'B( in esha"ar region is 68B up to
dec.?JJ6 i.e. there are total 6: 0ub Branches in esha"ar region and under
these 0ub branches! there are 6:? spokes branches. These 68B branches come
under the esha"ar +egion! for "hich there is a +egional head Muarter H+0MI
in esha"ar.
The list of hub branches come under the esha"ar +egion is as under.
6. esha"ar B. 0aripur 66. )ardan
?. Bannu 9. D.I. Khan 6?. S"abi
@. )ansehra G. )ingora 6@. Kohat
:. Timergara 7. 1o"shera 6:. .bbotabad
8. 0angu 6J. Bathela
2. (ission Statement of %B!
EAe shall dominate akistan5s financial markets and be the leading bank
of akistan in term of *uality of customer ser#ices! assets! profits and reser#es.
Ae shall consistently try to be among banks in the akistan. %omparing o#er
sel#es to international standards. Ae shall be a modern uni#ersal bank. &ur
employees "ill be efficient! moti#ated and ha#e corporate prideF
0-2 ObBectives of U#%
&b$ecti#es mean the end to"ards "hich an acti#ity is aimed. .n
organi-ation "ithout ob$ecti#e is like a person "ho is "andering "ith no
purpose. .ll the acti#ities of an organi-ation are due to its ob$ecti#es and goals.
.nd for the attainment of those ob$ecti#es! #arious types of financial products
and plans are de#eloped. 'B( has also some ob$ecti#es! "hich are as under.
To ensure gro"th and de#elopment of the bank.
To use resources of the bank efficiently.
To get more deposits.
To participate in de#elopment of the country.
aying special attention to the areas! "hich are under de#eloped.
To de#elop S)>5S.
To increase industriali-ation in the country.
To pro#ide financial help to the farmers.
To pro#ide employment opportunities.
To make people more of mind to ha#e sa#ing habits
C'&PTER /
OR8&+I;&TIO+&%
STRUCTURE
&+=.1I<.TI&1.( ST+'%T'+>
&rgani-ational structure of a firm pro#ides boundaries for authority of
persons and clarifies indi#idual responsibility and authority. It sho"s "ho is
responsible to "hom! and "ho has the authority to gi#e orders to someone. .n
organi-ation ha#ing dual authority or #ague structure "ould not ha#e clear
direction and "ill face hurdles in getting its goals and ob$ecti#es. Therefore! it is
#ery important for any organi-ation to ha#e a "ell;established structure of
responsibility and authority. .n organi-ation structure should be so designated
to clarify the en#ironment so that e#eryone kno"s his duty and "ho is
responsible for "hat. It results to remo#e obstacle to performance caused by
confusion and uncertainty of tasks and to furnish a decision making
communication net"ork reflecting and supporting enterprise ob$ecti#es.
3.1 %B! O")*+,-*.,O+*! S."%/.%"0:
'B( also has a "ell defined formal organi-ational structure. 'B( is a
#ery #ast organi-ation. In the organi-ation set up of 'B(! the highest authority
rests "ith Board of Directors "hich consists of %hairman! Deputy %hairman!
resident & %>& and the directors. In "hich four directors are from 'B(! one
from akistan Banking %ouncil! one from )inistry of /inance and one "ho is
also the secretary of the board. So the Board of Directors is an eight member
team! and is responsible for policy formulation and making important strategic
decisions.
The authority! "hich is second highest! lies "ith e,ecuti#e committee. It
consists of se#en members! including the president and secretaries are in charge
of di#isions. The members are Senior >,ecuti#e 3ice resident HS>3I of 'B(.
There are t"enty di#isions! "hich ha#e their o"n Senior >,ecuti#e 3ice
resident HS>3TI. >,ecuti#e 3ice resident H>3I! or Senior 3ice resident
HS3I! the
S>3 to international di#isions manages the operations of foreign countries
branches. The rest of the di#isions "ork along their functional lines as sho"n in
the organi-ational chart.
.t the 1ational le#el! 'B( has a net"ork of branches spread all o#er the
country and its field operations are one of the most e,tensi#e among the leading
banks in akistan. .t pro#incial le#el the bank is managed by S>3! "ho is
assisted by =eneral )anager H&)I! "ho is >3 or S>3. The &) is
responsible for either a number of regional areas or in charge of #arious
pro#incial departments such as .dministration! =eneral +eco#ery! (oans!
Inspection! etc. The comple,ity and e,tensi#eness of the operations in a gi#en
pro#ince determine the number of &)s. &)s are assisted by circles e,ecuti#es
"ho are of the rank of S>3 or 3.
The entire country is di#ided into %ircles "hich are further di#ided into <ones.
The circles are administered by circle e,ecuti#e. >ach -one is comprised
of a number of branches! "hich are managed by branch managers "ho are
mostly =rade I or =rade II officers. Some large si-ed branches are also
managed by .3s.
3.2 1,2,S,O+ O3 %B!4S O33,/0
Basically there are t"o types of offices in 'B(
6. 0ead &ffice
?. +egional 0ead *uarters
3- 'ea" Office
0ead office of 'B( is in Karachi. It e,ercises o#erall control o#er
the bank. The head office H0MI has #arious functions.
It formulates polices and ensures its implementation.
To super#ise and control the operations of the regional offices.
To formulate policies and ensure its implementation by the field offices.
To dealNliaison "ith foreign donors like IB+D HAorld BankI! .sian
De#elopment Bank! Islamic De#elopment Bank! K/A H=erman BankI!
/)& 1etherlands etc.
To deal "ith )inistry of /inance.
To super#ise +0Ms.
To sanction loan applications recei#ed from the branches.
To deal "ith ministry of finance.
0- Regional 'ea" Quarters
There are >le#en +egional &ffices of 'B( "hich fully cooperate
"ith the 0ead &ffice. 'B( +egional &ffices performance "ith reference
to sanctions! disbursement! reco#eries! and deposit mobili-ation is of #ital
importance to the bank operations. The functions are as follo"sO
To implement the policies formulated by the 0ead &ffice.
To e,tend the credit facilities by keeping in #ie" all the prescribed
conditions.
To reco#erNcollect the e,isting long;term credits e,tended by the bank as
per schedule.
To assist customers in the process of de#elopment by ad#ancing loans for
#iable financial pro$ects.
.ll the 6J8B 'B( branches are the representati#es of the bank. These
branches pro#ide commercial as "ell as non;commercial banking facilities.
3arious structures in#ol#ed in the organi-ation of 'B( are gi#en belo".
/-/ OrganiCational 'ierarchy Chart
#oar" of irectors
EDecutive Committee
Presi"entECEO
SE6P
E6P
S6P
6P
&6P
Office 8ra"e 3
+on Clerical Staff Clerical Staff Officer 8ra"e III Officer 8ra"e
II
.%/ Orani0ati$nal Hierar#12 C1art $3 #$n*!mer *e#t$r
in UBL
#oar" of irectors
EDecutive Committee
Presi"entECEO
8rou4 EDecutive
8lobal Sales 'ea"
'ea" Secure" 7inancing
+ational Sales (anager
Senior Sales (anager
Regional Sales (anager
+on)Clerical Staff Processors Relationshi4
officers
Relationshi4
(anager
Head Un-secured
Financing
/-: %ocation ma4
AIT0 an integrated net"ork of o#er 6JJJ branches in akistan as "ell as &#erseas!
'B( gi#es you direct access to a comprehensi#e range of better banking facilities to help you
monitor your business locally as "ell as internationally.

""".ubl.com.pk
C'&PTER 9
EP&RT(E+T&TIO+
EP&RT(E+T&TIO+
'B( like other commercial banks established #arious departments for the
performance of #arious functions. Some of the departments of 'B( are /oreign
>,change department! .d#ance Department! .ccounts Department! Deposit
Department and +emittance department etc.
1o" "e "ill highlight the #arious function performed by the different
departments in the 'B(.
9-3- &CCOU+TS EP&RT(E+TA
The .ccounts department of 'B( mainly deals in the accounts of
customer maintained at the bank. The accounting book maintained for these
ser#ices is kno"n as cashbook. The summary book and ledger are maintained
through computer.
The cashbook is used for balancing the cash recei#ed and cash paid at the
end of the day.
!in"s of &ccountsA
i- %urrent .ccount
ii- Sa#ing .ccount
iii- /i,ed .ccount
i- Current &ccountA
There is no restriction on the deposit and "ithdra"als of money in this account..
ii- Saving &ccountA
In akistan sa#ing deposit account can be opened "ith a #ery small
amount of money! and the depositor is issued a che*ue book for "ithdra"als.
+eturn is paid at a fle,ible rate. %alculated on by yearly basis. 0o"e#er!
"ithdra"als of limited accounts are generally allo"ed only one or t"ice a "eek.
The consumers ha#e to gi#e a notice of about t"o "eeks before the "ithdra"als
of large amountF the minimum amount of money re*uired for opening the
sa#ing .ccount is +s. 8JJN; "hile to remain the .Nc is running position the
account holder has to maintain a balance of +s. 6JJN; for the "ithdra"als are
concerned there is no restriction but the bank discourages #ery regular
"ithdra"als of small amounts.
iii- 7iDe" &ccountA
EThe deposits that can be "ithdra"n after a specified period of time are
referred to as fi,ed or term deposits.F The account holder keeps a specified
amount of money for a definite period of time. The amount deposited is not
"ithdra"al by che*ues. .nd after the maturity of the pre#iously agreed rate of
return.
. single indi#idual! partners and companies! too can maintain such
accounts as "ell. The period of "hich these deposits are held by the bank
ordinarily #aries from three months to BJ months "ith the agreement made
bet"een the customer and the banker.
iii- #usiness #an$ &ccount-*##& &EC,A
This is the special type of .ccount H.NcI offered by 'B(. This type of
.Nc is opened for the students and salary holders. In this .Nc there are some
facilities offered for the .Nc holder such asPP..
I. 1o restriction of minimum balance.
II. .T) facility.
III. 1o restriction on dra"ing.
I3. Transfer facility.
3. +ecei#ing from others Banks "ith minimum commission.
3I. +ecei#ing of salary from others Banks before 6
st
of the month.
9-0 RE(ITT&+CES EP&RT(E+TA
This department is concerned "ith the transfer of money from one place
to another. In this! #arious modes of transferring money are a#ailable "hich are
discussed belo".
&- (ail Transfer *(T,A
In this the money is transfer from one place to another by mail. If the
person is account holder of the bank! then the banker debit his account "ith the
amount of money he "ants to transfer. The concerned bank officer "ill prepare
the necessary #ouchers to make the mail transfer complete. It contains on4
6I ebit 6oucherA Debiting the account holder for the amount to be sent
plus the commission and postage charged.
?I Cre"it 6oucherA credit the dra"er branch
@I (ail Transfer RegisterA The remittance is entered in the mail transfer
issue register.
But if the person is not an account holder in the initiating branch! then he
has first to deposit the stated money "ith the same bank and then the abo#e
process starts.
#- Telegra4hic Transfer *TT,A
eople "ho "ant to transfer money *uickly and "ithout delay use this
type of transferring money. This type of transfer is also #ery simple. The person
"ho "ants to transfer money fills the TT application form. The applicant asked
to deposit money to be remitted plus the amount of commission and telegraph
charges. .fter the amount is deposited "ith cashier! the officer in charge
remittances "ill prepare the TT message. The TT message also carried a test
number "hich is a sum of #alues deri#ed from number items like date! amount!
and the dra"er branch consecuti#e number etc. then this telegram is sent to the
bank "here the money is to be transferred. .fter recei#ing the telegram the
dra"er bank makes payment after the test number is correctly decoded
according to the procedure prescribed.
C- eman" raft *,
In this "ay the person "ho "ants to remit money goes to the bank and
fills the application form by filling the name of the dra"er branch! amount and
the payee5s name. The amount to be remitted is deposited "ith the cashier along
"ith the commission on DD and the in charge of remittances department "ill
prepare the instrument. It is signed by t"o officers of the branch and is then
handed o#er to the applicant. The amount can be recei#ed by presenting DD to
the dra"er branch personally or through a bank.
. Uni remote *O+ %I+E TR&+S7ER,-
It is the most faster transfer of money from one bank to another "ith in the
country.
Thorough on line facility you can transfer the amount from one city to
another city in no time "ithout commission Hif you are account holder of the
BankI.
In this method the transferor .Nc are Debited by the Bank and the
transferee .Nc are %redited Hto "hom the amount is transferredI by his Bank
"here he has .Nc.
The amount is transferred in no time. &nline transfer bring great re#aluation in
the business "orld and make business more secure and fast.
The trader transfer money to the seller through bank! and the seller sent
goods to the buyer as soon as possible! and thus buyer sa#e his tra#eling charges
! as "ell as he also not close his business of the buying of goods for the
business.
9-/ EPOSIT EP&RT(E+TA
&ne of the important functions of the bank is to recei#e
surplus money from the indi#iduals! firms and institutions etc. It can be said
about the deposit that it is the lifeblood of any bank. . bank cab not runs its
business "ithout the deposits.
The bank usually recei#es deposits in the follo"ing type of accounts! "hich are
as under.
3, %urrent .ccount
0, Sa#ing Deposit .ccount
/, /i,ed Deposit or Time Deposit
9, %all Deposit
QThe classification of deposit chiefly on the basis of time and the purpose
for "hich the account is opened "ith the bank.
1o" "e "ill study the #arious types of deposits in detailO
3- Current &ccountA
This type of deposit is "ithdra"al by crepes "hene#er the customer
dra"s crepes on this account. .s such deposit is also termed demand deposit.
In akistan! bonds do not allo"ed any interest on such deposit. .nd the bond
treat these deposit as current liabilities. The banker also re*uires the customer
to maintain a minimum amount of balance. If the customer fails to do so! then
bank makes deduction from such accountsNdeposits under the heading on
incidental chargers.
E'ntil a fe" decades bank! the proportion of current deposits in relation
to fi,ed deposits "as #ery small. In recent years! ho"e#er! the position has
changed remarkablyF.
0- Savings e4osit &ccountA
In akistan a sa#ing deposit .Nc can open "ith a #ery small amount of
money and the depositor is issued a che*ue book for "ithdra"als. +eturn is paid
at a fle,ible rate calculated on si, months basis. 0o"e#er! "ithdra"als of
limited amount are generally allo"ed only t"ice a "eek. The customer has to
gi#e a notice of about t"o "eeks before the "ithdra"als of large amounts.
Such account may be maintain and run by an indi#idual! partners and
companies as "ell. The most important character of this type of deposit is
issued "ith a che*ue book for "ithdra"als. The account holder is returned "ith
profit rate! calculated on si, months basis.
/- 7iDe" or term e4ositA
It is payable to the customer after the e,piry of a certain duration. The
duration of fi,ed deposit are #arious from three months to si,ty months. The
bankers offer different rate of return on the fi,ed deposits depending upon the
duration of the deposit. The amount deposited in fi,ed account is not
"ithdra"n able. The amount is recei#ed back after the e,piry of fi,ed period.
&ne of the most important aspects of term deposit for the banks is that the
money of this deposit can be in#ested in #arious "hat the bank consider
profitable.
This type of deposit is also kno"n as single transaction account. It is
because the account holder cannot operate upon the account like other deposit
accounts. The banker usually gi#es a receipt of the fi,ed deposit mentioning the
amount of money and date of maturity of the deposit. 1o pay in slip book!
passbook or che*ue book is issued to the customer.
9-9 7OREI8+ EFC'&8E EP&RT(E+TA
In today5s "orld no one country can keep itself self;sufficient in e#ery
area of life. So they ha#e to trade "ith other countries for the things! "hich she
does not ha#e. But such Business re*uired a medium of >,change! "hich is
acceptable to the countries concerned. So they usually do business through the
medium of stable currencies of the "orld.
/or such International Business transaction the bank utili-e the ser#ice of
its /oreign >,change Department. The department plays #ery crucial and
important role in international trade. The ser#ice! "hich /oreign >,change
Department of the banks offers! is the parallel banking "ith general banking and
additional function of import and >,port Business controlled by State Bank of
akistan. The rules and regulations are framed by the SB.
In 'B( its foreign e,change department as per SB regulations carries
out the international banking. The SB e,ercises full control o#er the /oreign
>,change Business. 1o transaction is considered effecti#e "ithout permission
from the SB under /oreign >,change control .ct 67:9. /oreign >,change
regulations are issued though the >,change control Department of the SB.
.ny transaction in the international Banking shall be carried out at rates
determined by the SB. /or this purpose the SB fi, the rate of 'S dollar "ith
other currencies. /oreign >,change rate committee in Karachi 0ead &ffice
does this by the formula appro#ed by SB and as published daily. It also makes
sure the rates appro#ed are con#eyed to the braches on the same day.
/oreign >,change Department pro#ides the follo"ing ser#ices to the
customer.
/oreign >,change %urrency .ccounts
/oreign >,change +emittance /acility
a- 7oreign Currency &ccountA
E=o#ernment of akistan has introduced many important reforms in
foreign e,change control in the county in /ebruary! 677J! for the purpose of
strengthening foreign e,change reser#e.F 'B( as an authori-ed commercial
bank offer the facility of foreign currency account in four currencies! "hich are
'S Dollar! 2apanese Den! =erman )ark! and 'K ound sterling.
The foreign currency account facility by 'B( is a#ailable both for akistani
citi-en currency account is similar to opening of local currency account. The
account may be an indi#idual or $oint account. There are t"o types of foreign
currency account.
Current &ccount
Saving &ccount
i- Current &ccountA
2ust like local currency current account holder no interest is gi#en to the
foreign currency account holder. /oreign %urrency .N% are also e,empted from
<akat! Income Ta,! Aealth Ta,! the .ccount holder can shift his money abroad
through /oreign >,change remittance ser#ices
ii- Saving &ccountA
'B( offers a #ery handsome rate of return foreign currency sa#ing
accounts. The profit is paid in currency in "hich is opened. This account too is
e,empted form. <akat! Income Ta, and Aealth Ta,. The facility of in"ard
out"ard remittances is granted to the customer.
Purchase an" Sale Of 7oreign CurrenciesA
/oreign currency department of 'B( also has a #ery e,tensi#e system for
the purchase and sale of foreign currencies. 'B( is an authori-ed dealer in the
touring currency! gi#en the authority by SB. 'B( deals in the sale and
purchase of the follo"ing foreign currencies.
'S D&((.+SR
'K &'1D ST+>(I1=
2..1>S D>1
=>+).1 ).+K
S.'DI +ID.(
'.> D.+0.)
9-: &6&+CES EP&RT(E+T A
Besides deposits the other ma$or function of the bank is to ad#ance
money to the clients. This function of the bank contributes a great deal to the
re#enues to the bank. Due to its utmost importance to the bankers5 success! this
area is gi#en special importance and attention.
Bank normally makes ad#ances of the typesO
%ommercial /inance
.griculture /inance
Industrial /inance
>,port /inance
Import /inance
The banks also ad#ance to small si-e businesses and construction companies
etc. )any 'B( Branches are ha#ing departments for granting ad#ances to the
borro"ers. 1ormally! it is responsible for performing the follo"ing functions.
aI To handle all the cases of short or long term loans.
bI To process all the cases concerned.
cI To for"ard the cases for appro#al and consideration to the higher
authorities.
dI Direct dealing "ith the borro"ers.
eI To insure the disbursement of loan.
fI To inform the high authorities about #arious loans.
'B( make ad#ances in the follo"ing "ays.
*a, #? C&S' CREITA
Through this credit facility! the banker ad#ances loan to the borro"er
after ha#ing tangible asset as a security. )ain characteristics of this facility are
that the total amount is not gi#en to the borro"er at once rather it is gi#en in
installments! or "hen o#er re*uired. The borro"er has to the interest only on
the amount outstanding against him.
The cash credit facility is gi#en either through by hypothecation or
pledging of goods. Some re*uirements are as under.
i- %ustody of stock remains "ith the borro"er.
ii- Bank lien on the stock.
iii- Stock hypothecated must be insured against fire etc.
iv- %ustomer must submit the stock report on monthly basis.
v- /re*uent stock #erification to be done by 'B(.
vi- Bank may send officers or staff in order to super#ise #erification
Some characteristics of pledging asset against loan. Stocks are pledged
"ith under banks lock and key.
Stock must be duly insured against for and burglary.
&n monthly basis stock reports has to be prepared by the borro"er
duly incorporating deli#ery of goods! if any during the months.
Deli#ery of goodsNstock is made against cash payments.
*b, #? ISCOU+TI+8 #I%% O7 EFC'&+8EA
This credit facility is a #ery ad#anced form of ad#ancing moneyNcredit to
the borro"er. It is also termed as factoring. In this facility! the bank purchases
the bills of beaching from the borro"er. The bank gi#es face #alue of the bill to
the borro"er after deducting interest on the remaining period re*uired for the
bill to mature.
*c, #? O6ER R&7T
Some time it happens that a reliable! regular customer may ask for a #ery
short period credit. The bank accommodates such customers through the facility
of o#er;drafting. In this facility the bank charges interest on the outstanding
amount only. This facility may be gi#en "ithout any security or is pro#ided
against some collateral. It might be a temporary facility or an o#er;draft;limit
may be sanctioned to the customer! "hich may be used again and again during a
certain period of time.
9-2 C%E&R&+CE 'OUSEA
It is an association of banks4 usually set up in a gi#en locality for the
urpose of inters changing credit claims. 1early! e#ery"here this function is
performed by the central bank of a country. But in cities "here there is a no
branch of central bank! other authori-ed banks perform this fiction. In akistan!
the areas "here there is no central bank branch the function of clearing house is
performed by 1ational Bank of akistan H1BI.
In undertaking the process of inter changing credit the follo"ing
procedure is adopted. In banking business "hen creditor asks for some
payment! it is al"ays the choose through "hich the payment is asked for. But
there arises to situations "hen the payee for payment through che*ues. The
payee may be account holder in the same bank i.e. of dra"er or he may not be
the account holder in the same bank.
Ahen the payee is an account holder in the same bank! then the che*ue is
directly transferred from one to the other. .nd the total assets and liabilities of
the bank remains the same. Then in such cases the payee deposits che*ue in this
bank dra"n on some other bank. The bank "ith the che*ue is deposited
becomes the creditor of the dra"ers bank. The debtor bank "ill pay this amount
of the che*ue by transferring it from cash reser#es if there is no off setting
transaction.
In daily business of the bank! there are a number of che*ues deposited
"ith one bank! "hich are dra"n by other banks. The dra"er bank becomes
indebted to the bank in "hich the che*ues are deposited for collection. In the
same "ay the creditor banks also recei#e che*ues dra"n on other banking
gi#ing blooms of payment by them. 1o" it "ill be #ery incon#enient!
uneconomical for the bank to transfer cash for fulfilling reciprocal obligations.
The best! easiest and safest "ay "ill be to offset the reciprocal claims of each
other and transferring only the net amount due by any on the %learing 0ouse
pro#ides this facility.
The clearance house is the branch of central bank of akistan or in case of
area "here on central bank is a#ailable. The representati#e of each bank meets
at fi,ed time on all business day of "eek. This meeting is held in the bank
performing duties of clearing house. The messenger of the #arious commercial
banks gathered at the clearance house and transferring che*ues payable by other
banks "hile collecting dra"n on their banks. . summary sheet is prepared
describing the number of che*ues recei#ed and deli#ered by a bank at the
clearance house. 1ormally! the banks maintain t"o books for clearing house.
In@ar" clearing boo$-
Out@ar" clearing
#oo$.
C'&PTER :
SER6ICES & PROUCT
O7 U#%
SER6UCES &PROUCT O7 U#%
In banking ser#ices U#% pro#ides a number of ser#ices. These ser#ices
include customer banking! merchant banking and corporate banking. The
follo"ing is the brief description of #arious ser#ices offered by the U#% to its
customers.
:-3 8eneral e4ositsA
Due to the e#er;increasing need for capital there are no" a fe" business
enterprises! "hich are carried! put totally "ith the o"ner5s e*uityNcapital. So
borro"ing is becoming an essential feature of today5s enterprise. But in case of
banking business borro"ing from outside sources is all the most #ital. .nd this
is #ery common obser#ation in the banking business that in a gi#en bank5s
found treasures the borro"ed capital is much greater than its o"n capital. Bank
borro"s mostly in the form of #arious deposits the greater the difference
bet"een the rate of borro"ing and lending4 the greater "ill be the profit margin!
for the bank. But the bank look for"ard for more deposits! as this "ill create
more funds a#ailable for employment. So greater deposits "ill result in greater
return for the bank and as a result greater profit. In banking business these
deposits are the lifeblood of a bank. In deposit being the main ad#antage for the
customer is as debts.
Ahen bank recei#e a deposits from a customer a relationship of debtor
and creditor is established. %ustomer becomes creditor "hile bank takes the
responsibilities of debtor. &n recei#ing of deposits the ac*uired liability for that
much amount "hile becoming of the deposit! it can in#est any"here it deems
right "ithout consulting the creditor of the deposit. But it does not mean that the
bank becomes the sole o"ner of this amount! rather through an implicit
agreement the bank "ill be liable to pay the depositor money as and "hen the
depositor demand.
:-0 Current e4ositsA
'B( offers the facility of current aNc both in akistan rupees and foreign
currencies. &n maintaining such accounts these is no restriction on the customer
residence. These accounts are usually maintained by businessman and business
concerns. It is become that they can take and deposit money as money times as
they deem right during the banking hours. .s such these accounts are payable
on demand. In akistan on offer any interest. Some of the sol#ent features of
this aNc areas.
i. 1o restriction on number of "ith dra"ls from aNc5s and on prior notice is
re*uired for "ith dra"l.
ii. These .Nc5s are regulated under the rules and regulation of SB especially
deposits of S6JJJ is free from all e,change control.
iii. %on#ersion of these funds into any currency and transfer for of these
finds into any country is not restricted.
i#. The foreign currency .Nc5s are acceptable as a collateral against rupee
loans.
#. In case of payment to third party standing instruction by customer is
re*uired.
#i. By debiting these aNc5s a T% can be obtained.
#ii. /or obtaining lockers facility preference is gi#en to foreign currency
.Nc5s holders.
:-/ Saving e4ositsA
The main ob$ecti#e of maintaining sa#ing deposits in running status by
the bank is to de#elop sa#ing habits in the people of our country. Such people
may include young people! married or household "oman. These people can start
their aNc by depositing only a small amount at a time. These accounts can also
be opened in foreign currencies. Some year ago it "as not possible to "ithdra"
money from sa#ing aNc more than t"o times in a "eak and prior notice "as to
gi#en the bank for dra"ing money abo#e a certain le#el. This restriction is no"
remo#ed by SB and the customer can deposit and "ithdra" money as and
"hen re*uired by the client during the banking hour.
Some of the silent features are as un"erA
Interest is payable by the bank in accordance "ith the rates
announced by SB.
1o restriction on the number of "ithdra"als and the amount of
"ithdra"als during a "eek.
The funds of this aNc can be utili-ed for purchasing =o#ernment
and other securities such as foreign e,change leader certificates! special
sa#ing certificates and foreign currency bearer certificate.
rincipal and interest earned there is on e,empt from income ta,
and <akat.
In accordance "ith =o#t. of akistan regulation! customer5s
deposits are free from all e,change controls.
If payment of a certain amount is to be made to a third party at
regular inter#als i.e. monthly! *uarterly! standing instruction to this effect
can be issued to the banker.
T% can be issued to the customer by debiting the customer5s aNc for
the amount.
references gi#en to foreign currency sa#ing account holder in
pro#iding locker facility.
%on#ersion and transfer of the currency into any other currency or
country is not restricted.
The rate of return on these aNc5s are not fi,ed and are computed and
announced at the end of the half year after half yearly and yearly closing in 2une
and December respecti#ely.
:-9 7iDe" e4ositsA
These deposits are created by a single as such there are t"o transaction
in#ol#ed. &ne is "hen somebody deposits the money and the other "hen the
customers "ithdra" the money after or before the due date. In case of
"ithdra"ing the deposit before maturity no interest is paid to the deposit holder.
The rate of return on time deposits #arious "ith the duration for "hen the
deposit is created. The duration #arious from a day as long as fi#e years.
:-: Uni cashA
1o" days carrying cash "hile going out of your place is #ery risky.
>#erybody "ants ma,imum security "hile keeping is money in his pocket.
eople make use of T% and other #arious credits cards for this purpose. 'B(
pro#ides such facility through '1I;%.S0 the management of '1I;%.S0 is
carried out in follo"ing "ays.
a- PI+ *Personal I"entification +umber,
ersonal identification number HI1I is #ery important number allotted
"hen a '1I;%.S0 card is issued to the customer. This number is made uni*ue
by gi#ing four;digit can financial number and "hen it is used in con$unction
"ith the '1I;%.S0 card is enable the customer to a#ail the cash point
facilities. The allotted I1 number is kept e#ent confidential form the bank staff
by printing it in a special number buy the computer on a pre;sealed! tamper
proof I1 millers. These I1;)I((>+S can only be seen "hen the customer
opens the en#elope.
b- Pin ChangeA
Ahen a customer after a#ailing the facility first time "ith the '1I;%.S0
card! heNshe "ill be re*uired to change I1 Hersonal IdentificationI number is
sought from security point of #ie". The change number selected by the
customer should be such that the customer can easily remember it and cannot be
easily guessed by other.
c- Car" Serial +umberA
%ard serial number is gi#en to a particular '1I;%.S0 card "hich the
customer can kno" by looking at the card. The first line contains the '1I;
%.S0 card serial number "ith the customer5s name! aNc number and card
e,piry date is follo"ed in the subse*uent lines.
"- >ith"ra@al %imitA
This limit is determined at the time of depositing money for a#ailing the
facility of '1I;%.S0 card. The limit depends upon money deposited.
e- Cash PointsA
To facilitate the process of getting money through '1I;%.S0 card a
number of cash points are a#ailable in the country. The machines may be used
round the clock. '1I;%.S0 card are used in these machines for dra"ing
money from the account and for a#ailing a number of other facilities such as the
follo"ing.
i- Balance In*uiry
ii- )ini Statement
iii- I1 %hange
:-2 U#% >&%%ET 6IS& C&RA
'B( A.((>T 3IS. is a secure inno#ati#e card pro#iding the customers
the benefits of both an .T) Hautomatic tailor machineI and a debit card locally
and internationally.
Aith 'B(3IS. A>((>T ! the customers ha#e the po"er of using your
card at more than 7?8 .T)s across the country and o#er 7JJ!JJJ 3IS. .T)
locations "orld"ide in 68J countries and o#er 8!JJJ &+IC locations across the
nations and ?? millions 3IS. merchant locations "orld"ide. It can be used
?:hour day!
9 days a "eek at all 'B( .T)s as "ell as others .T)s in 6(ink & )1>T
net"ork.
&T( C&R US&8EA
6. Insert the card in to the slot labeled Einsert cardF.
?. Select the (anguage.
@. 'se the keypad to enter the personal Identification numberHI1I.
(&I+ (E+UEA
In the main menu! select an icon to conduct a transact
C&S' >IT'R&>&%A
6. Select EcashF "ithdra"alF from the main menu.
?. Select the account type.
@. >nter the re*uired amount in multiples of +s.8JJT and press &K.
(I+I ST&TE(E+TA
6. Select mini statement from the main menu.
?. Select the account type.
@. %ollect the mini statement.
PI+ C'&+8EA
6. Select Epin changeF from the menu.
?. 'se the keypad to enter your ne" I1.
@. +eenter your ne" I1 to confirm.
7U+S TR&+S7ER- H/rom 'B( to 'B( to others banksIO
6. Select Efunds transferF from the menu.
?. Select the type of funds transfer you to "ish to conduct.
@. Select the account from "hich you "ish to transfer funds.
:. Select the account to "hich you "ish to transfer funds! or type in the
account number according to the gi#en layout.
8. Type in the amount of funds that you "ish to transfer.
B. %onfirm the account name and number and amount of funds to e,ecute
The /unds transfer.
E#IT C&R US&8EA
6. .fter shopping! present the 'B( Aallet to the cashier the 'B(
Aallet
is accepted at all outlets e,hibiting the 3IS. logo as "ell as &+IC logo
displaying machines.
?. The cashier "ill s"ipe your 'B( Aallet through the point of sale
H&SI Terminal and enter the purchase amount.
@. It is as simple as buy! s"ipe & sign. Simply purchase the item!
s"ipe the card
.t the &S terminal and sign on the receipt generated. /or transactions
on the &+IC net"ork simply enter the I1 to complete the transactions.
%O&+S
Cha4ter 2
S>OT &+&%?SIS
S>OT &+&%?SIS
The "ord ESA&TF consists of four "ords! "hich are stands for
Strengths! "eaknesses! opportunities and threats! respecti#ely.
Through the ESA&TF .nalysis techni*ue one can analy-e the present
condition and performance of a gi#en organi-ation and can prepares plans for
the future.
In the SA&T .nalysis of 'B( the follo"ing points can be discussed in brief.
2-3 STRE+8T'SA
Its Strengths are as follo"s.
0a#ing reputation for high customer banking ser#ices.
@
rd
largest Bank of akistan
>asy asses to branch locality.
(arge net"ork.
rofessional and skilled management.
Aell co;coordinated branch office system.
>,perienced personnel.
Strong loyal customer group.
>,cellent competiti#e skills.
Sound le#el of deposits.
>,cellent promotional and marketing campaigns.
2-0 >E&!+ESSESA
Aeaknesses is something an organi-ation lakes at doing that for 'B( these are.
%ustomer ha#ing accounts "ith small amounts are not gi#en the same
attention gi#en to those "ith large amounts.
Security system of 'B( main branch bannu #ery careless
)ost of employees are o#erloaded "ith the "ork and promotion is also not
timely.
(o" salaries to staff.
olitical inter presence.
(o" market #alue of the bank5s stock.
Bad reco#ery of o#erdue ad#ances.
'n;satisfactory "orking condition of branches.
1o a#ailability of sophisticated e*uipments in branches.
In efficient system of recruiting and selecting of personnel.
2-/ OPPORTU+ITIESA
.n e,ternal situation! "hich an organi-ation can benefit from is called
opportunity.
Increase the ser#ing customer group.
Due to efficient and e,perienced management group! 'B( can
impro#e and e,pand its foreign operations successfully.
>nter ne" markets.
Increase product line to ser#e large range of customers needs.
0iring of "ell;*ualified personnel in the "ork force.
Deployment of sophisticated technology in offices and branches.
2-9 T'RE&TSA
Increase the number of ne" local and foreign banks.
(o" moral of employees.
olitical interference in the affairs of the bank.
(ake of consistence in policies due to olitical instability.
(o" sa#ing rated in the country.
>conomic recession in the country.
This ESA&TF .nalysis is a mirror to the bank o its present condition.
/rom this analysis "e can conclude that the bank has done some professional
changes in its banking system. The management can de#elop elaborated strategy
planes for capitali-ation the a#ailable opportunities. &ne area "here the bank
has done some "ork is the impro#ement in customer ser#ices.
The bank should maintain principle of professional management and adhere the
sound and sophisticated banking rules and regulations in order to build
confidence of people in the institution
CO+C%USIO+A
.fter the establishment of 'B( in the year of 6787! the bank "as
successful in achie#ing some of its ob$ecti#es. In the #ery first the bank earned a
handsome profit.
.fter the e,hausti#e era of nationali-ation! the bank is no" transforming
to pri#ate o"nership again. The decade of BJ5s "as dominated by on
e,ceptional increase in economic acti#ities. This result in bringing #arious
changes in the management and structure of the commercial banks. In area of
management more professional "ere brought in and the same "as done "ith the
structure.
'B( "as not an e,ception to these changes. In the last decade of the century the
bank had "itnessed #ery bad banking business. To rebuild the bank ne"
professional people "ere inducted under the leadership of )r.<ahoor Soomro.
'nder this leadership the bank introduced incenti#e schemes and products such
as %.+.)).D! <.+.)).D and '1I;).0.1.! etc! schemes "ere
introduced. The bank also reshaped the product of +upee Tra#eler5s %he*ue
H+T%I "ith a ne" name of 0.)+.0.
.ll these schemes "ere #ery successful in stopping the capital flight from
the country! "hich "as the result of the foreign currency aNcs in )ay 677G after
the nuclear detonation. 1o" the bank is focusing on impro#ing the standard of
its ser#ices facilities! specially impro#ing its corporate banking and more
customer satisfactory culture. .ll these ne" and potential impro#ements are
signs of bright future for the 'B(.
.fter the conclusion I "ould like to recommend some points "hich I
think if gi#en due consideration by the 'B( management "ill definitely result
in impro#ing the bank5s image! good"ill and position as "ell. (ike other
companies! for e,pansion of its business the bank should focus its acti#ities on
increasing its stockholders e*uity. .nd also the hank should be obliged and
fulfill its obligations to its customer! stockholders and public. Some suggestions
may be gi#en in order to gi#e right backNob$ecti#es.
De#elopment and maintenance of congenial "ork en#ironment for
the bank employees.
.chie#ing more customer satisfaction through *uality ser#ices.
Increasing assets and decreasing e,penses through letter
management.
laying more responsible role in the social en#ironment of the
society meaning full filling the social obligations as "ell.
C'&PTER <
RECO((E+&TIO+S
7OR I(PRO6E(E+T
RECO((E+&TIO+S 7OR I(PRO6E(E+T
+ecommendations are based on the pre#ious sections of a report and are
suggestions that the analyst feels are re*uired to be implemented in order to
impro#e further the standing and position of the firm in the financial "orld.
These are thus based on the findings and shortcomings noted in an organi-ation
"hile "orking "ith it and then "riting on it. &pinions of #arious capable
indi#iduals are sought "ho through their real life e,periences and deep insight
are better able to $udge "hether the course of action adopted by the organi-ation
is going to pro#e fruitful or does it re*uire further impro#ement in the form of
changes in its strategies.
/ollo"ing are the findings and recommendations for #arious Departments that
"ere felt are re*uired "hile consulting the staff members of 'B(! )ain Branch
Bannu.
5.1 1eposits 1epartment
The comparati#e analyses re#eal that 'B( has the lo"est share of
Deposits out of the total in the market. Since deposits are the lifeblood of
a bank! it should attract more customers and e,pand its deposit base in the
follo"ing manner
<-3-3 Sim4lification of Proce"ures
The procedure of opening an account should be simplified. The account
opening form should be self;e,planatory and include translations in 'rdu
for those customers "ho are not "ell read! since the fact cannot be
ignored that many people do not ha#e a good understanding of >nglish.
<-3-0 +o u4lication of &ctivities
&nce the account opening form is filled there should be no reason to
submit a "ritten application for opening an account! since it not only is a
"asteful and time consuming e,ercise on the part of the customer but also
makes filing lengthy.
<-3-/ Incentives for e4ositors
Those "ho deposit large amounts of money or are old customers of the
bank should be gi#en free credit lines up to a certain limit. Besides!
financial ad#ice should be pro#ided to customers in case there is a change
in the market trend before they seek for it.
<-3-9 Integrate" (ar$eting &44roach
.ll the officers in Deposits Department should be in#ol#ed in marketing
and not $ust opening accounts and maintaining their records. This can be
done through impro#ing their personnel relations5 skills and applying the
'ni;Ser#ice concept of #isiting the potential customers at their offices
and homes.
<-3-: Performance &44raisal
'B( should follo" the performance e#aluation policy strictly and a"ard
those "ho bring in deposits and help it increase its market share.
'nfortunately! this has been stated in the bank5s policy but is not being
implemented.
5.2 "0(,..*+/0S 10'*".(0+.
The +emittances Department at the Branch is di#ided into Inland
+emittances and /oreign +emittances.
Both these are dealt by separate officers and in#ol#e using specific
stationary and procedures. The follo"ing recommendations are made for
this #ery important Department of the bank
<-0-3 OrganiCing the e4artment
The Department is spread o#er the entire bank "ith no specific person or
desk for the purpose. 'sually drafts and telegraphic transfers are made in
the cash counter that results in hassle for the other customers. . senior
officer detached from the other officers performing inland remittance
transactions handles the foreign remittances. It "ould be better for them
to sit together so that they can benefit from his e,perience and kno" ho".
<-0-0 CentraliCe" (oney gram Services
The customers recei#ing funds from abroad ha#e to "ait *uite long in
order to get their money as the branch sends the application form through
fa, to the %ity Branch from "here it is confirmed "hether the amount has
been credited to the S"abi. Branch or not. This confirmation takes long at
times and there is al"ays a fear of the bank losing its good"ill in case of
lengthy delays. The ser#ice should thus be decentrali-ed and the 0ub
Branch ha#ing the authority of directly confirming the amount.
5.3 /*S6 10'*".(0+.
The follo"ing recommendations are made for the %ash Department.
<-/-3 ED4ansion of the Cash Counter
The %ash Department at the Branch needs special attention in the sense
that the cash counter is small and becomes cro"ded "hen there are more
than fi#e to si, customers to attend. %ustomers purchase drafts and other
instruments from the #ery same counter "here utility bills are collected
and cash is deposited and "ithdra"n. 0ence! if a ne" counter cannot be
built due to certain limitations the utility bills should be collected through
a "indo" so that the regular customers do not face any problems.
<-/-0 EDten"e" timings for Cash
In order for the bank to progress and compete "ith the others in the
market! it should e,tend the time for accepting and "ithdra"ing cash.
The customers face great hardship especially "hen they come from far
off places and find that the cash counter is closed for the daily
transactions.
5.# B,!!S *+1 /!0*",+) 10'*".(0+.
The follo"ing suggestions are made for this Department keeping in #ie"
the problems noted in it.
<-9-3 Career evelo4ment
It has been noted that the officers taking bills for clearing do not in#ol#e
themsel#es much "ith the other operations of the bank and thus remain
on the #ery same post and seat throughout their banking career. This is
against the modern day policies of organi-ations gi#ing their employees
conduci#e! re"arding and e*ual opportunities of prospering and gro"ing
"ith it. Thus! the 0uman +esource Department at the 0ead &ffice should
prepare a plan that sho"s the future gro"th potential of the employees
based on their $ob performance and e#aluation and make it kno"n to all.
<-9-0 Job Rotation
There should be $ob rotation of employees especially in this department
as it "as felt that the employees here kno" *uite less as compared to the
others. This "ill enhance their capabilities and help them break the
monotony making them find their "ork more interesting.
5. *12*+/0S 10'*".(0+.
There "ere certain dra"backs in the application and processing for the
loan re*uests that "ere obser#ed at the branch. The findings and the
recommendations are as under
<-:-3 Pro4er ocumentation
If #alid documents are not obtained before sanctioning the loan limit! it
becomes irreco#erable in case of default by the borro"er. It has been
noted that at times the related officers oblige the customer by letting him
submit the documents later and appro#ing the limit by getting the
Disbursement .uthori-ation %ertificate from the %redit %ommittee. It
pro#es to be #ery time and resource consuming after"ards tracing the
borro"er to bring in the documents. Therefore! correct and complete
documents should be attained before the amount is sanctioned and no
leniency sho"n in any case.
<-:-0 Com4uteriCe" Recor"
.ll the sanctioned cases should ha#e record on the computer as it is easy
to access and does not in#ol#e the hassles of maintaining and retrie#ing
large and old files. /or this purpose! training programs should be
organi-ed for the +elationship )anagers to enable them to ha#e a basic
computer kno" ho". Through this! they "ould also be able to assess the
financial position of the prospecti#e borro"er in minutes by using related
financial soft"are.
<-:-/ 6erification of Security
hysical #erification of the security tendered is a must rather than to
merely rely on the documents. It had been noted that "here the property
to be hypothecatedN mortgaged lay in remote areas such as the =adoon
Industrial >state regular physical #isits are a#oided by the officers. This
and the abo#e factors result in an increase in the non;performing loans of
the bank and as result 'B( had more debts turned bad as compared to the
other banks. /or this purpose! regular physical #erification must be
conducted of securities pledged and hypothecated.
#I#%IO8R&P'?
i. .nnual +eport of Unite" #an$ %imite" H'B(I! ?J6J;6J
ii. )r. .ftab khan lecturer in I)S 'ST Bannu.
iii. Sir )a$id khan lecturer in I)S 'ST Bannu.
i#. )r. 2a#ed khan branch manager of 'B( Harety gate bannuI.
#. 0anif ullah khan customer ser#ices manager in 'B( Harety gate bannuI.
#i. Strategic management by /red + Da#id 6J
th
>dition.

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