CHAPTER # 1

INTRODUCTION TO INTERNSHIP REPORT

1.1 OBJECTIVES OF STUDY

For the purpose of completion of degree of BBA, every undergraduate is required to spend at
least the period of two months as an internee in a formal organization. The candidates have to
work in their related field in which they have been gone through to their specialization. Core
objective of practicing this activity is to introduce the students with the professional work, as
there is enormous diversity between their educational program and the job they would have to
done virtually.

Another important theme of this activity program is that job of the internee is rotated all over the
departments as a result of which, internee is able to get multiple experience through working in
various departments. The internee is provided with a brief look at each department when his job
is rotated through job rotation process.

1.2 IMPORTANCE OF STUDY

No one disagrees with the concept that there is a significant role that has been played by the
banks in the economic living of a country. This is the reason why banks are considered as the
engine of modern economies of the world. They facilitate and accelerate trade as well as
commerce and provide a range of services that one is unable to imagine in the absence of banks.
Internee chose the United Bank Limited Sub Branch Garhi Habibullah to spend the period of two
months duration as an internee because this branch is consist of all the departments a bank be
required to have. Apart from this, UBL is also contributing in the economic development of
Pakistan by its day and night efforts.

1.3 SCOPE OF STUDY

It’s not easy to understand every aspect of financial structure of the bank, due to the reason that
internee was provided with maximum time period of two months in other words the period of
eight weeks is available to internee for working.

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Only internee worked under the supervision of honorable MR IBRAHIM MALIK and other staff
of the bank which helps him in understanding of financial activities operated by the bank.
Internee focused only on to understand how bank staff is dealing with customers and how
financial transactions are being passed.So in this limited period of time internee learned a lot of
new and fresh things especially which were in relation with financial activities that is making
financial statements etc.

1.4 LIMITATION OF THE REPORT

There were also some boundaries involved. The duration of two months for internship was not
enough period to gain complete knowledge of bank workings despite the fact that the bank is not
willing to provide data mainly about the rightsizing of their employees and stuck-up loans due to
various sensitive reasons so the reader will have to keep in mind this all.

1.5 AIM OF INTERNSHIP

Internee endeavour to do internship is described as under:

 Practical work setting.

 Gain of experience of bearing work burden.

 Some modern writing techniques.

 To make increment in the knowledge job has to be done yet virtually.

 To meet with practical experience.

 To meet with market professionals for real case solutions.

 Implementation of theoretical work into practical one.

1.6 METHODOLOGIES OF STUDY:

Primary &secondary data were used as tools in completion of this report.

Methodological tools used are as under.

1. PrimaryData:

 Personal Observations by internee

 Discussions with Bank Personnel.

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 Some interviews were arranged as well.

 Various meetings with bank staff.

2. Secondary Data:
 Reports constructed on UBL.

 Official website own by UBLs.

 Newspapers especially Daily DAWN newspaper.

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 CHAPTER # 02
INTRODUCTION TO UBL

2.1 HISTORY AND INTRODUCTION TO UBL:

“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 great name in the field of banking MR.AGHA HASSAN
ABIDE took initiative of developing a bank with the name of UNITED BANK LIMITED of
Pakistan. Agha Hassan abide was the chairman of sehgal group of companies. Commercial banks
play a very vital role in the economic growth of the country. In the areas of subcontinent there
was a shortage of commercial banks inspite of their vital significance. There were only 487
branches of commercial banks available at the time when Pakistan came into being,, which were
unfortunately furthers reduced to merely 195 as on November 30 th, 1947. The reason for this
great shortage was the shifting of banks to United Kingdom and to India. In Pakistan Reserve
Bank of India was not performing its duties properly as it was made responsible to have control
over banking industries in both the states.

This achievement was recurred after facing many problems and after completion of a number of
legal formalities. UBL came into being on 24th July 1959 as a public limited company. The
registered office own by UBL is 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. Price of one
share kept by the bank was 101 rupees.The bank is currently operating with 1390, branches in all
the major cities of the Pakistan and its registered offices are located at state life insurance corp.
Building # 1, 11. Chundrigar road, Karachi.

United bank limited is one of the most famous bank working in different areas of Pakistan, UBL
is now declared as the second largest private sector bank in Pakistan, with its 25% growth in
deposits of two hundred and thirty seven billion Rupees in 2004.

4
UBL has also improved its ability of lending and investing funds along, with the hyper increase
in resources of the bank. UBL also showed a remarkable performance in its profitability. In 1960
the profit of the bank before the payment of tax was 0.7 million RS. And it has been rising since
that time. UBL was highest profit earning bank in 1970 and 1971 as compared to other
commercial banks

The Bank launched a variety of consumer banking products and services – UBL Drive, UBL
Cash line, UBL Address, UBL Business Line, UBL Wallet ATM card and UBL Business Partner.

UBL is one of the largest commercial banks in Pakistan with net assets of RS.15 billion
USD(1.62 trillion PKR) and a solid record of 59 years. UBL offers its services through a
nationwide network with 1390, branches spread all over Pakistan and 19 overseas branches.
Earning of bank was four hundred three billion dollars in 2003, a 59 percent more, as compared
to past years, and announced a dividend of 22.5 percent high.

The explanations behind this momentous execution were record development of 40% advances,
which expanded from RS 72.8 billion of every 2002 to RS 100.2 billion of every 2003 by
increament of development in stores from RS 158.3 billion of every 2002 to RS 185.1 billion out
of 2003.

Privitization of the bank occurred in 2003, through the offer of 5% offers to a relationship of the
Abu Dhabi Gathering driven by Shaikh Nahyan Mabarrak Nahayan and the Best way Gathering
driven by Sir Mohammad Anweer Perviz, The issue is unbound and subordinated to instalment
of essential and benefit to all different obligation of the Bank including stores.

Joined Bank Restricted is one of the biggest business banks in the nation. With a 59 years of
good remaining to its esteemed clients, it has stood the trial of time, delivering resources of over
RS. 300 billion. UBL offered its administrations through a wide system of 1380 branches all over
Pakistan and 21 abroad branches working on the planet.

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 2.2 ROLE OF UBL IN KPK
In a short period of only 59 years, the role of UBL has expanded geographically. The Bank
operates throughout the country and has branches throughout the country and throughout the
world. UBL is successfully working in K.P.K. The number of UBL arms in Peshawar region is
up to 156.2001, in Peshawar region, there are 14 central branches and 142 branch offices under
these centers. These 156 branches have a Regional Central Quarter (RHQ) in Peshawar Region
coming under the Peshawar Region.

The list of hub branches come under the Peshawar Region is as under.

i. Peshawar

ii. Banu

iii. Manshera

iv. Hungu

v. Haripur

vi. DI Khan

vii. Swat

viii. Mardan

ix. Abbottabad

x. Kohat

2.3 MISSION STATEMENT OF UNITED BANK LIMITED

We will dominate Pakistan's financial markets and we will be the leading bank in Pakistan in
terms of customer service, assets, profit and reserves. We will constantly try to be among the
banks in Pakistan. Comparison of self-esteem according to international standards. We will be a
modern universal bank. Our employees will be efficient, motivated and proud of our corporate.

2.4 VISION OF UNITED BANK LIMITED

Being a world-class bank dedicated to excellence and exceeding the highest expectations of our
Clients and all other stake holders.

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 2.5 OBJECTIVES OF UBL

Objectives refers to a destination towards which an activity is aimed. without objective

organization is just like a person who is just travelling from one place to another having no aim
in mind. All the activities of an organization are dependent on objectives and goals of that
organization. And to achieve these objectives and goals different types of financial products and
plans are made. United bank also keep some objectives and goals which are discussed below:

 To make sure the growth and development of the bank.

 Effecient use of resources own by the bank.

 To have more deposits.

 Participation in development and growth of the country.

 To focus on under developed areas, is foremost priority.

 Development of SME’S.

 To increase industrialization in the country.

 Farmers will be provided with financial health.

 Provision of employment opportunities.

 To increase the number of people having same mind to have saving habits.

2.6 SERVICES &PRODUCTS OF UBL

UBL offers a range of services in banking services. These services include customer banking,
commercial banking and corporate banking. Below is a brief description of the various services
that UBL offers to its customers.

1. General Deposits:
The capital structure of an organization is composed of both equity and debt financing. So
getting is turning into a basic component of the present business field However if there should be
an occurrence of managing an account business, acquiring from outside sources is the most
essential activity. And this is exceptionally normal perception in the keeping money business that
in a given bank's discovered fortunes the obtained capital is a lot more noteworthy than its very

7
own capital. Bank acquires for the most part as different stores the more prominent the contrast
between the rate of obtaining and loaning; the more prominent will be the overall revenue, for
the bank. However, the bank search forward for more stores, as this will make more finances
accessible for business. So more noteworthy stores will result in more noteworthy return for the
bank and accordingly more prominent benefit. In managing an account division these stores
resemble spine of a bank. Bank isn't obligated to settle government expense on the cash it has
acquired.

2. Current Deposits:
UBL offers the facility of current Account in Pakistani rupees and in foreign currencies as well.
On maintaining such accounts there is no restriction on the residence of the customer i-e(where
customer lives) These accounts are usually maintained by businessmen. Its become more easy
process, they can take and deposit money as many times as they deem right in the time duration
of banking hours. As such these accounts are payable on demand. No interest is paid in current
account some of the solvent features of this Account are as under;

 No restrictions on withdrawls from this Account and no prior notice is required

for withdrawls.

 These aCCounts are regulated under the rules and regulations of central bank of
pakistan especially deposits of 1000 USD is free from all exchange control.

 There are no restrictions on Conversion of the funds in another currency and

transfer of the funds across the world.

 Accounts of foreign currency are acceptable as collateral against loans in the unit
of pakistani Rupees.

 In case of payment to third party customer is required to confirm the transaction.

 By debting these Accounts a TC will be obtained.

 For obtaining lockers facility foreign currency account holders will be prioritised.

3. Saving Deposits:
The main objective of maintaining saving deposits in running status by the bank is to create an
environment of savings in our country. The targeted people are young people, married or

8
household woman. These people can run their accounts only by depositing a small amount.
These accounts can also be opened in foreign currency. The fact that it was not possible to
withdraw money a few years ago was weak and more than two times in advance, giving the bank
a certain level of withdrawal. However, this restriction has now been lifted by the pakistani
central bank, and customers can deposit money at any time during the working hours of the bank.

Some of the other important features are as under:

 Bank is liable to pay interest as per rules regulated by state Bank of Pakistan

 No restriction neither on withdrawals nor on the amount of withdrawals in a week.

 This funds can be used for the purchase of State funds and other securities such as
exchange rate, certificates, special savings certificates and foreign currency transfer
document.

 A fixed amount of money will be charged against zakat when deposits in the account are
above a certain level.

 According to the regulations of GOP customer’s deposits are all exchange controls free.

 If there is a time of payment to a third party at concecutive intervals i.e. monthly,

quarterly, standing instruction to this effect will be issued to the banker.

 TC can be issued to the customer by debiting the account of customer for the amount.

 Foreign currency saving account holders are given preference in providing locker facility.

 There is also no restriction to convert and transfer the currency into any other country or
currency.

Interest paid to these account holders is not fixed but it varies and announced at the end of the
half year after half yearly and yearly closing in June and December respectively.

4. Fixed Deposits:
These deposits are created in a single, but two transactions are related. One is when somebody
deposits money and the other deposits money when the customer withdraws money after or
before the due date. This type of deposit has been fixed for a certain period of time. When
withdrawing deposits before maturity, no interest will be paid to deposit holders. Depending on

9
the period during which payment is made, the return rate varies. Various period from 1 day to 5
years.

5. UNI CASH:
In present time when street crimes are at their peak carrying cash is become very risky job.
Every body wants to keep himself to a safe side while keeping cash in his pocket. . People use
TC and various other credit cards for this purpose. UBL provides such facilities through UNI -
CASH, and management of UNI - CASH is done in the following way.

6. VISA CARD:
UBL WALLET VISA is a protective innovative card providing the customers, the benefits of an
ATM (automatic tailor machine) and a debit card domestically and internationally as well.

VISA card is a protective innovative card that offers the benefits of customers, ATM and
domestic and foreign debit cards.

USAGE:

 Insert card into the place labelled by “insert card”.

 Language selection which is easily understandable to you.

 keypad will be used to enter the (PIN).

Main menu:

Main menu, select an icon to make a transaction.

Withdrawal of cash:

 Select “cashwithdrawal” option from the main menu.

 Select the account type i-e current account or saving account.

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  Enter the amount you want to withdraw in multiple of Rs.500* and then press OK.

Mini statement:

 Select statement with the name “MINI” from the main menu.

 Select the account type.

 Collect the mini statement, you selected earlier.

Pin change:

 Select the option of “pin change” from the menu.

 Use the keypad to enter new PIN

 Re enter your new PIN for confirmation of your PIN.

Debit card usage:

 After shopping, when presenting UBL wallet to united bank's teller, wallet will be
accepted at all stores consisting of visa logo and orix logo display machine

 Checkers swipe UBL wallet at “POS” terminal and enter purchase price.

 It is as easy as purchase, swipe & sign. simple, purchase items and swipe cards

 Signed on the POS terminal and a receipt is generated. for transactions on the orix
network, just enter the pin and the transaction is completed.

2.7 CORPORATEBANKING
UBL is committed to serve all corporate needs by ensuring full satisfaction through personalized
services and by bringing innovation in the products

2.8 COMMERCIAL BANKING

 Letter of credit

 Acceptance of deposits

 Deal in bills

 Guarantees

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  Remittances

2.9 CONSUMER BANKING

UBL consumer banking is made for the benefit of customers.in this section an attentive,
friendly and personalized banking services are being provided.UBL behaves its customers in
polite manners.

Customers are geting benefit by following services.

 PLS Term deposits

 PLS Saving accounts

 Remittances

 Collection of utility bills

2.10 ORGANIZATIONAL STRUCTURE

Organizations should not even think about their survival without having the structure. The
coordination among the employees, the job responsibilities, and the management style etc is
known as organizational structure.

2.11 UBL ORGANIZATIONAL STRUCTURE

UBL also is operating its banking operations by pursuing a well defined formal organizational
structure.UBL is a very widenetworked organization. Organizational set up of UBL, keeps the
Board of Directors as highest authority that is followed as the Chairman, then the Deputy
Chairman, here comes the MR.President & CEO and then at last there is a place for directors. In
which four directors are own by UBL itself, one person has been hired from Pakistan Banking
Council, one person is hired from federal Finance ministry.the individual hired from ministry of
finance is also the secretary of the board of directors. So the Board of Directors is a set of eight
people and is responsible to make policies and important strategic decisions for the benefit of
organization.

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 2.12 MANAGEMENT OF UNITED BANK LIMITED

NAME DESIGNATION

MISS.SIMA KAMIL. CEO OF UBL

MUHAMMAD PARVEEZ CHAIRMAN BOD

AAMEER KARACHIWALA CHIEF FINANCIAL OFFICER

3.3 BOARD OF DIRECTORS:

 SIR MUHAMMAD ANWAR PARVEEZ CHAIRMAN of the

Board

 MR.ZAMEER MUHAMMAD CHOUDHRY MEMBER

 MR. HAIDER ZAMEER CHOUDHRY MEMBER

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  MR. RIZWAN PARVEEZ MEMBER

 MR. AMIN UDDIN MEMBER

 MR. ARSHAD AHMAD MIR MEMBER

 MR. ZAMEER SAJJAD MEMBER

 MR.KHALID A SHERWANI MEMBER

 MR. WAJAHAT HUSSAIN MEMBER

2.13 DIVISION OF OFFICE S OF UNITED BANK LIMITED

Primarily there are two types of offices in UNITED BANK LIMITED

 Head Office.

 Regional Head quarters.

1. Head Office
Head office of UBL lies in Karachi. It exercises overall control over the bank. The Head
office lies in karachi has following functions.

 It formulates polices and make sure the implementation of these policies

 Head office supervises and controls the operations of the regional offices.

 Formulation of policies and implementation of these policies in the by field offices.

 To make strong interaction with foreign donors like IBRD (World Bank), Asian
Development Bank, Islamic Development Bank, KFW

 To deal with federal finance ministry.

 Supervision of Regional Headquarters.

 To sanction loan applications received from the branches.

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 2. Regional Head Quarters:
UBL currently operating with eleven regional headquarters which are fully cooperating
with the central office of the bank. The functions performed by these offices are as
follows:

 Proper and exact Implementation of the policies regulated by the Head Office.

 Extension of the credit facilities by taking into account all the prescribed conditions.
BODs
 Collection of existing long-term credits extended by the bank as according to schedule.

 To provide assistance to customers in the process of development by advancing loans for

Executive Committee
important financial projects.

All the 1390 UBL branches are representing the bank. These branches are providing the
facilities of commercial as well as non-commercial
CEO
activities. Various structures involved in the
organization of UBL are given below.

Senior Excutive Vice

2.14 Organizational Hierarchy
President Chart

Excutive vice president

Senior Vice President

Vice president

Assistant Vice president

Officers Grade 1

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Non Clerical Staf Clerical Staf Officer Grade III Officer Grade II
 2.15 DEPARTMENTATION &ACCOUNT SECTION
UBL established different departments for the performance of multiple functions. Some of the
departments of UBL include Foreign Exchange, Advance, Accounts, Deposit and Remittances
department etc.

I will now highlight the various functions performed by different departments in UBL.

2.16 ACCOUNTS DEPARTMENT:

The Accounts department of United Bank Limited mostly deals in the accounts of customers
maintained at the bank. The book used for the maintenance of such accounts is known as
cashbook.

Cashbook is used to balance the cash inflow and cash outflow at the end of the day.

Kinds of Accounts:

 CurrentAccount

 SavingAccount

 FixedAccount

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 1. CurrentAccount:
There are no restrictions on depositing and withdrawing funds in this account. No interest will be
paid to customers while dealing in current account. This account can be opened with the amount
of 10,000 as initial deposit.

2. SavingAccount:
The department of a deposit account is possible with a very small amount, and for
depositors a chequebook and ATM card as well for withdrawals. Interest is paid in accordance
with interest policies of the bank. However, withdrawals are allowed at any time as customer
demands. However consumer is bound to give a notice of about “two weeks before the
withdrawals of large amount”. Saving account will be opened with the amount of Rs. 500/- while
to keep the Account active the account holder has to maintain a minimum balance of Rs. 100/-

1. Fixed Account:
"Deposits that can be withdrawn after a certain period of time are called term or term deposits."
The account holder deposits a fixed amount of money for a defined period of time. The amount
deposited is not withdrawn by checks. Interest is paid after the expiration date of the i-e account
after reaching the specified period.

Individuals, partners and companies can also keep such accounts. The typical time period for these
deposits varies from three months to sixty months, usually by the bank, between the client and the
bank.

3. Business Bank Account(BBA A/C):

This is some nature special Account offered by UBL. This type of Account is opened for the
students and salary holders. This account is providing multiple facilities to customers which are
as follows.

 There is no restriction of minimum balance.

 Facility of Automatic Tailor machin is provided.

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  Restrictions are left on withdrawls

 Transfer facility.

 Receiving from other Banks with minimum commission.

 Receiving of salary from other Banks 1st of each month.

2.17 REMITTANCES DEPARTMENT:

This department deals in the transfer of money from one place to another. In this, account
different modes of transferring money are available which are discussed below.

1. Mail Transfer (MT):

In this section money is transfered from one place to another by mail. If the person is account
holder of the bank, the banker debit amount of money he wants to transfer from his account. The
concerned bank officer will prepare the necessary vouchers for the completion of mail transfer. It
consists of;

 Debit Voucher: Debiting the amount of money to be sent from the account of customer
with commission and postage charges.

 Credit Voucher: credit the drawer branch

 Mail Transfer Register: The remittance is entered in the mail transfer issue register.

2. Telegraphic Transfer (TT):

People who are aiming to realize money transfer quickly and quickly use telegraphic transfer.
This transfer type is very simple. The person who wants to transfer money must fill in the TT
application form. He requested the reimbursement of the money to be returned plus the fees and
telegraphic fees. After the deposit is deposited with the deposit, the attendant exchange rate
refunds will now write the TT message. This telegraph is then sent to the bank. Money will be
transferred. After receiving Telegraph, the lottery bank makes the payment after the test number
has been correctly decoded according to the procedure followed....

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 3. Demand Draft (DD):

In this section the person who is required to remit money goes to the bank and fills the
application form in a proper way by entering drawer branch, amount and the payee’s name.

The requested amount is deposited with the Cashier together with the Demand Draft
Commission and the head of the transfer department prepares the necessary means. It is signed
by two senior officers of the branch and then handed over to the applicant. The amount can be
obtained by presenting the Demand Draft to the drawer branch either personally or through a
bank.

4. Uni remote (ON LINE TRANSFER).

The most faster way of transfer of money from one bank to another with in the country.
Thorough on line facility transfer of amount can be done from one city to another one in no time
without any type of commission (if you are account holder of the Bank).

In this method, while the A / c of the person transferring that amount is Borrowed by the Bank,
the account of the person receiving the money is credited by the Bank where the account is
located.

Money transfer takes place immediately. Online transfer is a great revolution in the business
world and makes the job safer and faster.

The merchant transfers money to the seller by the bank and the seller sends the goods to the
buyer as quickly as possible so that the buyer saves the travel costs and also does not close the
purchase of goods for business.

2.18 FOREIGN EXCHAGE DEPARTMENT:

In present era not even a single country can keep itself self-sufficient in every aspect of life. So
they have to trade with other countries with the purpose of imports of necessary items which they
are in lack of. But such Businesses are required a medium of Exchange, which is acceptable to
other countries. So they generally do business through the medium of stable currencies of the
world.

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 2.19 ADVANCES DEPARTMENT:

Except deposits here is anothere major function of the bank and this is to advance money as
loans to the customers. This function of the bank contributes a major deal to the revenues of the
bank. Due to its utmost importance to the bankers’ success, this area is given unique importance
and attention.

Bank usually makes advances of following types:

 Commercial Finance

 Agriculture Finance

 Industrial Finance

 Export Finance

 Import Finance

The bank also advances to small size businesses and construction companies etc. Many UBL
Branches have departments for sanctioning advances to the borrowers. Generally, this
department is responsible for performing the following functions.

 To tackle all the cases of short and long term advances.

 To process all the cases involved

 To forward the cases for approval of higher authorities.

 Direct dealings with borrowers.

 Assurance of disbursement of loans.

 To provide information to high authorities about various loans.

UBL make advances in the following ways.

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 2.20 CASH CREDIT:
With this loan facility, the bank lends loans to borrowers after having a tangible asset. The main
features of this facility are that the total amount is not given to the debtor at one time, but is
given in installments or as required.

The cash credit facility is either issued with the cancellation of assets or assets. Here are some
requirements.

 Asset remains of the property with the borrower.

 Bank lien on the stock.

 Customers have to submit the stock report.

 Frequent verification of stocks done by UBL.

 Bank has the right to send officers or staff in order to supervise verification

Some characteristics of pledging asset against loans. Stocks are kept as colletral with
under banks lock and key.

 Stock must be duly insured against fire and robbery.

 Stock reports has to be prepared on monthly basis by the borrower duly taking into
account, the delivery of goods, if any during the months.

 Delivery of goods/stock is made against cash payments.

2.21 BY OVER DRAFT

Some time its a possibility that a reliable, regular customer may ask for a credit of short period.
The bank accommodates such customers by facilitating them with the facility of over-drafting. In
this facility, the bank only pays the outstanding amount. This facility will be provided without
any security or against some guarantees. This facility may be for a short period of time, or the
sanction limit may be imposed on the customer who may be used repeatedly for a specified
period of time.

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 2.22 DEPARTMENT OF CLEARANCE

It is an organization of banks; usually set up in a locality for the Purpose of inter changing credit
claims. Nearly, every where state bank of Pakistan is performing this function. But in cities
where there is no presence of SBP, other authorized banks perform this function. In Pakistan, the
areas where state bank is not present, the NATIONAL BANK OF PAKISTAN is performing the
function of clearing department.

In undertaking the process of inter changing credit the following particular process is followed.
In the business of banking when creditor asks for some payment, theren is always a tool which
will be used to ask for payment. But there arises a situation when the payee demands for
payment through cheques. The payee may be account holder in the same bank or may not be.

At the point when the payee is a record holder in a similar bank, at that point the check is
straightforwardly exchanged from one to the next. What's more, their is no effect on aggregate
resources and liabilities of the bank. At that point in such cases the payee stores checks in this
bank draw on some different banks. The save money with the check is saved turns into the loan
boss of the drawers bank. The indebted person bank will pay this measure of the check by
exchanging it from money saves if there is on off setting exchange.

In day by day business, there are various checks saved in one bank, which are drawn by different
banks. The cabinet bank winds up obliged to the bank in which the checks are stored for
gathering. Similarly the leaser banks additionally get checks drawn on other managing an
account giving blossoms of installment by them. Presently it will be exceptionally awkward,
uneconomical for the bank to exchange money for satisfying equal commitments. The best, most
straightforward and most secure way will be to off set the proportional cases of one another and
exchanging just the net sum due by any on the Clearing House gives this office.

The leeway house is the part of national bank of Pakistan or if there should arise an occurrence
of territory where national bank isn't accessible. The delegate of each bank meets at settled time
on all business day of week. This gathering is held in the bank performing obligations of clearing
house. The dispatcher of the different business banks assembled at the freedom house and
exchanging checks payable by different banks while gathering drawn on their banks. An outline

22
sheet is readied portraying the quantity of checks got and conveyed by a bank at the freedom
house. Ordinarily, the banks keep up two books for clearing house.

 Inward clearing book.

 Outward clearing

 Book.

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 CHAPTER 3
FINANCIAL ANALYSIS

24
25
26
 3.1 Current ratio

Short term asset/short term CR

debt

2017 196,668,282/13,392,978 14.68

2016 165,734,806/11,759,012 14.09

3.2 Cash ratios:

Cash/Currentdebts CR

2017 161,119,170/13,392,978 12.03

2016 133,467,502/11,759,012 11.35

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 3.3 Turnover of receivables:

markupearned/advances Turnoverreceivables

2017 110,579,895/642,506,720 0.17

2016 101,755,044/537,782,146 0.18

3.4 Assets turnover:

Markupearned/ total TAT

assets×100

2017 110,579,895/2,103,360,500 5.25

2016 101,755,044/1,661,742,260 6.12

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 3.5 Fixed assets turnover

Marked earned/ FAT

Fixedassets×100

2017 110,579,895/50,384,077 219%

2016 101,755,044/39,298,927 258%

3.6 Net profit margins:

Net profit/ revenue earned N.P.M

2017 26,196,589/110,579,895 0.23

2016 28,002,302/101,755,044 0.27

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 3.7 Gross profit margin:

Gross profit/ revenue earned GPM

2017 55,315,857/110,579,895 12.32%

2016 57,216,093/101,755,044 13.32%

3.8 Return on investment:

N.P/Total investment ROI

2017 232,323/21,518,535 2.32

2016 233,323/23,323,23 23

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 CHAPTER # 04
SWOT ANALYSIS
The word “SWOT” consists of four words, which are stands for Strengths, weaknesses,
opportunities and threats, respectively.

Through the “SWOT” Analysis technique one can analyze the present condition and performance
of a given organization and can prepares plans for the future.

In the SWOT Analysis of UBL the following points can be discussed in brief.

4.1 STRENGTHS:

Its Strengths are as follows.

 Having reputation for high customer banking services.

 Pakistan’s third largest bank.

 Easy access to sub branches located in different areas.

 Having a large network.

 Professional management with expertise and skills of working.

 Branch office system is well managed and well co-ordinated.

 Personnel are well experienced.

 Customers are loyal.

 Excellent competitive skills.

 Great level of deposits.

 Excellent promotional and marketing strategies and planning

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 4.2 WEAKNESSES:

Weaknesses is something lake by an organization at doing something for UBL weaknesses are
given below.

 Customers having small amounts accounts are not given the same attention as to those
who have large amounts.

 Since 2006 the director prices, that is resulting in the form of an extra drain on bank

 Most of employees work apart from thier ability and process of promotion is also not
timely.

 Low salaries given to staff.

 Political influence is also their.

 Low market value of the stocks own by the bank.

 Improper recovery of over due advances.

 Un-satisfactory working conditions in sub branches.

 Shortage of sophisticated equipments in branches like air conditions etc.

 No proper channel of recruitment and selection of personnel.

4.3 OPPORTUNITIES:

An external situation, which is opted by the organization to get benefit of it, is called opportunity.

 Increase in serving group of customers.

 Efficient and experienced management group, is comitted to expand foreign operations of

UNITED BANK LIMITED successfully.

 Enterence in new markets is a chance available to UBL

 Product line can be increased to serve wide range of customer’s needs.

 Appointment of well-qualified and well educated personnel in the work force.

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  Comfirtable technology will be used in offices to facilitate the workforce.

4.4 THREATS:

 Increament of new local and foreign banks as competitor.

 Employees’ moral is unsatisfactory.

 Some political figures are also influencing the affairs of bank.

 Abssence of consistancy in policies and strategies due to Political instability.

 Saving ratio is low in the state.

 Bed economic conditions of the country.

This “SWOT” Analysis is a mirror to the bank of its condition. On the basis of this analysis we
can conclude that the bank has done some exceptional changes in its banking structure. The
management is required to develop an elaborated strategy plana for capitalization of available
opportunities. Customer service department has been improved by the bank up to some extent.

The bank should maintain principle of professional management and adhere the sound and
sophisticated banking rules and regulations in order to build confidence inpeople aboutthe
institution.

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 CHAPTER 5
CAONCLUSION AND RECOMMENDATION

5.1 CONCLUSION:
After the advent of UBL, the bank become successful in achievement of some of its objectives.
In the very first the bank earned an incredible profit.

After the nationalization period, the bank has now been transferred back to private property. The
decade of the early 60s dominated an exceptional increase in economic activities. This results in
bringing some changes in the management and structure of commercial banks. In the field of
management, more professionals were incorporated, and the same was done with the structure as
well.

There was no immunity to UBL from these changes. In the last decade of the century the bank
practiced very bad banking business. With the purpose of rebuilding of bank new professionals
people were hired under the leadership of Mr.Zubair Soomro.products and incentives introduced
by bank were CARAMMAD, ZARAMMAD and UNI-MAHANA etc.

These systems became obstacles to deterring capital movement, which was the result of the
foreign currency account in May 1998 after the nuclear explosion. Today, the bank focuses on
improving standard services, especially providing improvements in corporate banking and a high
customer satisfaction environment. All these new potential improvements show that the UBL is
bright and rescues the future.

After the conclusion here are some key points recommended by me which I think if given deep
consideration by the UBL management will exactly result in improving the bank’s image,
goodwill and position as well. Like other companies, to furthur expand the business bank need to
on focus its activities on increasing its shareholders equity.

 Bank need to Develope and maintain of adequate work environment for employees.

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  Achievement of high customer satisfaction by providing quality services.

 To increase assets and to discourage expenses through letter management.

 Fullfilment of social needs accordingly.

5.2 RECOMMENDATIONS:
Following sugguestions are given below for the betterment of various departments of the bank.

1. Deposits Department
Analysis shows that UBL occupies the lowest share of deposits in the entire market. Despite the
fact that deposits are the bank's backbone, more customers need to attract. The way to attract is
as follows.

i. Procedures simplification
Procedure of account opening needs to simple. An obvious one is necessary for the account
opening form. Those who can not understand English please use Urdu. I can not understand
English because the fact that many people do not understand English well can not be ignored.

ii. No Duplication ofActivities

Once the account opening form is filled there should be no other formality to submit a written
application its not only wastage of time, but also makes the process complicated.

iii. Depositors incentives

Depositors who deposit large amounts of money or are regular customers of the bank should be
given free credit limits up to a certain limit. However, in the event of any change, customers
should be provided with financial advice on a regular basis. Inside the Market

iv. Integrated Marketing Approach

All civil servants in the deposit department should be involved in marketing activities rather than
just opening an account and focusing on keeping records. This is easy to do by developing staff
relationships skills and applying the Uni-Service concept that visits potential customers in their
offices and homes.

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 2. Remittances department
The Remittances Department at the sub Branch of garhi habibullah is divided into two parts
which include Inland Remittances and Foreign Remittances.

i. Department organizing
The Department covers a large area of the bank to prevent a particular person or desk from being
available. Generally, drafts and telegraph transfers are made on the cash counter, resulting in the
discomfort of other customers. A high-ranking official was separated from domestic remittances,
as opposed to remittances from abroad. It would be better for them to be able to take advantage
of their experience and to sit together to know how to do it.

ii. Moneygram Services

Customers who receive funds from abroad must wait a long time for their branches to receive
money. It faxes the application to the City Branch, where it confirms whether the amount has
been credited or not. This confirmation takes place after a long period of time when a bank loses
its goodwill. The service must be distributed from the center and be authorized to verify the
amount of the branch directly.

3. CASH DEPARTMENT
Recommendations are made for the Cash Department.

i. Cash Counters expension

The Cash Department at the Branch does not draw attention to the fact that the cash meter has a
small radius and is more than five to six customers. Customers buy drafts and other tools from
the same counter where the electricity bills are collected and cash withdrawn and stored at the
same time. Therefore, if it is not possible to establish appropriate departments due to certain
restrictions, invoices should be collected from a window to solve the problems of a regular
customer.

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 ii. Time extension for Cash

To compete and compete with other companies in the market, banks should increase the time of
cash acceptance and withdrawal. Customers, especially when coming from a location away from
the bank, face problems when they notice that the cash counters are closed for daily transactions.

4. BILLS &CLEARING DEPARTMENT

The following Recommendations are made for this Department by taking problems into account.

i. CareerDevelopment

It was noted that the officers dealing in bills for clearing dont involve themselves with the other
operations of the bank but they have been stucked with merely a same department throughout
their banking career. This is contrary to the modern day policies of organizations giving their
employees conducive, rewarding,acknowledgement and equal opportunities of prospering and
growing with it. Thus, plans should be made by HR department to overcome this deffeciency and
make it known to all.

ii. Rotation of job

In particular, it should be considered that the employees in this section work as little as possible,
and those who work here know less than others. This will increase their abilities and break the
monotony and make them find their work more interesting.

5. ADVANCESDEPARTMENT

There were certain disadvantages in the application and processing for requests of money
lending that were observed at the branch. The findings and the recommendations are as follows.

i. Proper Documentation

If valid documents are not acquired before lending money against loans, it becomes in the
section of bed debts in case if borrower defaults. It was stated that the relevant officers made the
customer mandatory by allowing the customers to hand over the documents from time to time
and by approving the limit by obtaining the Payment Authorization Certificate from the Credit
Committee. After the follow-up of the debtor to bring documents to be consumed a lot of time

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and resources are concerned. Therefore, accurate and complete documentation must be reached
before the quantity is approved and no tolerance should be shown in any case.

ii. Record computerization

All cases of sanctions should be easy to access to the computer and do not include the difficulties
of holding and retrieving large and old files. For this purpose, training programs should be
organized to ensure that they have basic computer knowledge for Relationship Managers. In this
way, they will be able to evaluate the financial situation of the probable debtor in a few minutes
using the relevant financial software.

iii. Security verification

Physical verification of security should be more than just due to documentation. Regular visits to
the mortgage / mortgaged property in regular areas such as Gadoon Industrial Estate were
prevented by civil servants. This and the above factors lead to an increase in the bank's non-
performing loans and, as a result, UBL has aggravated more debt than other banks. For this
purpose, regular physical verification should be made for pledged and mortgaged securities.

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REFERENCES

 Annual Reports of UBL 2016---2017.

 Already constructed Internship reports on UBL.

 Information provided by UBL Garhi Habibullah branch.

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