EXECUTIVE SUMMARY

This is an internship report regarding the different products of UBL. It starts with an introduction about Banking followed by the introduction of UBL. It gives a briefing about all the financial products of UBL.

This report also includes the different features of these products. All the Services provided by UBL has also been discussed and explained along with the strength and weaknesses of the organization. This report shows and internal architecture of the working of the UBLsBusiness. It gives a detail about the supporting department that has helped the business in their daily working. Financial analysis such as Ratio analysis, SWOT analysis, PEST analysis, Vertical analysis of income statement and balance sheet ae also discussed in this report. Also it discusses the objectives, policies of the organization. There are also some suggestions/recommendations for UBL.

INTRODUCTION TO THE REPORT

INTRODUCTION: Students of BBA (H) studying courses leading to Master degree in Finance are required to undergo an internship programme of six months duration. This is an essential academic requirement. The internship is followed by comprehensive report writing, required to submit to the research and development division (R&DD) of University of Education, Okara. This report is properly evaluated on the basis of its description and analytical capabilities by internal and external examiners. I did my internship in United Bank Limited Okara Branch. PURPOSE OF STUDY: The purpose of the study is to work in real life situation and learn banking practice by doing. In this context its objectives are: i. ii. iii. To analyze banking operations i.e. operational analysis, financial analysis. To develop concrete and feasible recommendations. To improve report writing skills.

SCOPE OF STUDY: The study is confined to banking operations. An attempt, along with all its limitations, to collect financial data and general statistics of the bank has been made. Keeping in view the purpose of the study, which is to make an acquaintance with practical doings in the bank, this seems a comprehensive effort. LIMITATION OF STUDY: It is to admit that the study attempts only those aspects, which are closely relevant to the purpose of the study. facts and figures, which otherwise might be equally important, but not having a direct bearing on the conclusions arrived at this study, have been ignored.

The most important limitation from which the study suffers is the non-availability of information in a manner required for analysis and the secrecy of the bank. Another important limitation of the study is time and space constraint.

METHODOLOGY OF STUDY: Both primary and secondary data were used in compilation of the report. Methodological tools used were: i. Primary Data: ii. Personal Observations. Discussion with Bank Personnel.

Secondary Data: Brochures/ Manuals of the bank. Annual Report State Bank Foreign Exchange Manual Bank internship reports on UBL available in library. Journals, newspapers and books. Internet.

MISSION
To provide innovative and high quality products to its customers at the lower possible rates.To achieve all set goals regarding service, performance and good will.

VISION

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

Core Values
Honesty and integrity Fairness and meritocracy Humility and mutual respect Caring and socially responsible Teamwork and collaborative spirit

UBL Profile
Date Established November 7, 1959 Chairman His Highness Shaikh Nahayan Mabarak Al Nahayan Deputy Chairman Sir Mohammed Anwar Pervez OBE President & CEO Mr. Atif R. Bokhari Branches 1121 Domestic, 17 Overseas Branches Representative Offices Iran Kazakhstan China Subsidiary United Bank AG Zurich, Switzerland United National Bank Limited, UK (Joint venture with NBP) UBL Fund Managers Limited United Executors and Trustees Company Limited Associated Company Oman United Exchange Company, Muscat UBL Insurers Limited Offshore Banking Unit Export Processing Zone, EPZ Branch, Karachi, Pakistan Registered Office 13 Floor, UBL Building, Jinnah Avenue, Blue Area Islamabad, Pakistan Head Office State Life Insurance Corp. Building #1, I.I. Chundrigar Road, Karachi, Pakistan P.O. Box No.: 4306 Phone: (92-21) 111-825-111 Gram: "UNITED" Fax: (92-21) 2413492

Overseas
UBL, with an integrated network of over 1121 branches globally, with 17 overseas locations, gives you direct access to a comprehensive range of better banking facilities to help you monitor your business internationally.

We have branches in: Bahrain Qatar Other offices Off Shore Banking Unit Republic of yemen UAE United States of America

and subsidiaries in: United Kingdom Switzerland

ORGANIZATIONAL STRUCTURE OF
UNITED BANK LIMITED

Organization Chart at Branch Level

Area Manager (A.M)

Internal Audit

Branch Manager or Area Operational Manager

Credit Committee

Customer Deposit

Cash & Clearing

Bills & Remittances

Marketing

Advances

Accounts

I.T

Foreign Exchange

FUNCTION HIERARCHY

Organizational Hierarchy of UBL

Chairman

Deputy Chairman Board of Directors Executive Committee Managing Director SEVP EVP VP

Officer Grade-I
Non Clerical Staff Clerical Staff Officer Grade-II Officer Grade-III

UBL SETUP

BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

Treasury & Capital Market

Corporate Banking

Investment Group

Consumer Banking

Human Resource Mgt.

Finance Department

Marketing Department

Sheikh Nahyan Mabarak IT Nahayan chairman Department Sir Mohammad Anwar Pervez Deputy Chairman

Audit & Inspection

Service & Quality

Amar Zafar Khan Agri PresidentComercial Loans Banking M.A Manna Deputy CEO Risha Moheyuddin Nauman Hussain Global Treasurer Director Operations & Khalid Munawar-ud-din Utilities Head Credit Policy Mansoor M. Khan Supervision Head Corporate Banking GroupMANAGEMENT OF UBL Muhammad Ejazuddin Shaharyar Ahmed Audit Chief Head Investment Banking Senior Management of UBL group Mehboob A.Khan Aman Aziz Siddique Shahid Waqar Mehmood Head Commercial bank Rukhasana Asghar Global Head Human Resources Ameer Karachiwala Chief financial Office/HCA

Head International Operations (Dubai) Ali sameer Chief SAM (domestic)

BOARD OF DIRECTORS
Board of Directors is the owners of the bank and governs the Banks Affairs, which currently consists of President Chief Executive Officer & seven directors. The CEO has an overall responsibility for the strategic direction, government relations and to manage the portfolio of business and its functions.

NAME
His Highness Sheikh Nahayan Mubarak Al Nahayan Sir Muhammad Anwar Pervaiz, OBE, HPK

DESIGNATION
Chairman

Deputy Chairman

Mr. Atif R. Bukhari Mr. Omar Z. Al Askari Mr. Zameer Muhammad Chaudary Mr. Ahmad Waqar Mr. Javed Saqib Malik Mr. Tehsin Khan Iqbal

President & CEO Director Director Director Director Director

Chairman His Highness Shaikh Nahayan Mabarak Al Nahayan

Deputy Chairman Sir Mohammed Anwar Pervez OBE

President & CEO Mr. Atif R. Bokhari

Director Mr. Omar Ziad Jaafar Al Askari

Director Mr. Zameer Mohammed Choudrey

Director Mr. Ahmad Waqar

Director Mr. Javed Sadiq Malik Mr. Aly Shah Barrister-at-law, Company Secretary

Director Mr. M. Tahsin Khan Iqbal

EXECUTIVE COMMITTEE
The Head of the Executive Committee is the President of UBL (Mr. Atif R. Bokhari).

Mr. Atif R. Bokhari President and C.E.O

Mr. M.A. Mannan Group Executive Consumer/Commercial Bank

Mr. Nauman Hussain Group Operations & Technology Head

Mr. Risha Mohyeddin Group Executive Treasury & Capital Markets

Mr. Aameer Karachiwalla Group CFO

Mr. Ayaz H. Shamsi Group Executive Human Resources

Mr. Muhammad Ejazuddin Group Audit & Inspection Head

Mr. Tariq Mohar Group Business Support / Collections Head

Mr. Mohammad Asghar Group Commercial Bank Head

Mr. Ali Sameer Group Head SAM

Investment Banking
The Largest Investment Bank in Pakistan Dedicated specialist team of 14 investment bankers. Supported by over 50 relationship managers in six different locations in Pakistan alone. IBG provides innovative and unique solutions to its clients enabling them to meet the challenges of an ever- changing market.

Features : Well established execution experience. Rich international and domestic investment banking product knowledge. Strong distribution capability.

Three specialist business areas: Project & Structured Finance Syndications & Debt Capital Market Equity & Advisory

 Awarded the Largest Investment Bank award by The CFA Association of Pakistan for three consecutive years (2003-2005).

Awarded the "Corporate Finance Transaction of the Year" by The CFA Association of Pakistan for FY 2005.

Current mandates add up to over PKR59 billion (US$967million). A healthy mixture of Debt, Equity & Advisory transactions.

Structured and executed debt and equity transactions totaling over PKR 45 billion (US$744 million) in 2006, PKR60 billion (US$1billion) in 2005, and PKR52 billion (US$866 million) in 2004.

Corporate Banking
Our mission is to serve all your corporate needs and ensure your full satisfaction through product innovation, personalized banking, and top notch service.

The CBG department of UBL defines corporate banking in Pakistan. Amongst the local banks UBL CBG is the pioneer in providing innovative solutions to its diversified and satisfied customer base. UBL CBG is considered to be a major player in the financial market of Pakistan. The Corporate Banking Group focuses on attracting and servicing large portfolio customers. Our forte is providing exemplary customer service using the "Single Window" concept and product superiority. The Relationship Management team manned by highly qualified individuals from the industry has steadily expanded our customer base and continues to enhance our cordial relations with our esteemed clients. Despite the sluggish economic growth in recent years, UBL outperformed all the other local banks in the corporate banking sector primarily due to CBG's emphasis on establishing and enhancing relationships with foreign/local blue chip and middle market customers thereby capturing significant market share. UBL's appetite for large exposures coupled with dedicated Structured Finance Unit, and an innovative team of professionals having extensive experience of Corporate Banking gives it the right platform to succeed in today's competitive and a demanding environment. The success of CBG has been established from the fact that UBL received the 'No.1 Euromoney 2000' Best Local Bank award and recognized it to have out performed all other banks. In year 2000, UBL was also voted as the best Corporate Bank by the customers of a major foreign bank in a survey. Aggressive marketing combined with professionalism has led to an increase in UBL's market share with top corporate customers and in some cases replacing Foreign Banks. Presently, its portfolio includes the quality names in the country, which were initially confined to foreign banks only.

Introduction to UBL
Banking History
Consensus on the origination of word Bank is not yet reached at. Some authors opinion is that this word is derived from the words Bancus or Banque, which mean a bench and they further relate banking business inception to Jews in Lombardy. Other authorities state that the word Bank is derived form the German word Back which means Joint Stock fund and later on due to German occupation of Italy, this word was Italianated into Bank. Authors quote Babylonians (few quotes Chinese) who developed banking system as early as 2000. B.C1

Commercial Banking in Pakistan

Banking started in Pakistan after the bold and emergent decision of formulation of SBP on July 30, 1948. Thereafter this sector has witnessed enormous growth. In 1974 banks were nationalized, in the hope that new era of growth could be achieved through it. However the process is reverse since 1991, up till now MCB, ABL, and UBL have been privatized and HBL is in the process of its privatization.

BIRTH OF UBL
On November 9, 1959, UBL was notified and included as a private schedule bank with authorized capital of Rs. 20 million; issued and paid up capital of Rs. 10 million divided into 1 million shares of Rs. 10/ each. Currently BOD and president/ CEO Mr. Amar Zafar Khan being a member of this newly formed set up manage UBL. Chairman His Highness Shaikh Nahayan Mabarak Al Nahayan and Deputy Chairman Sir Mohammed Anwar Pervez are the two supreme controllers of the banks affairs.

NUMBER OF BRANCHS
UBL has a large network of branches, which extends to the remotest areas of the country. In December 1983, there were 1623 branches whereas in 1974 it had only 1238 branches and in October 2009 these figures show total number of 1112 branches3. UBL has been very active in increasing its overseas branches network. The first foreign branches were established in London in 1963. Now UBL has branches in Bahrain, Qatar, Saudi Arabia, United Arab Emirates, Yemen Arab Republic, UK Switzerland, Egypt, Oman and The United States. These branches are playing a significant role in channeling home remittances and foreign trade of Pakistan.

SUBSIDIARIES
UBL has four subsidiaries, namely: United National Bank Limited (UNB), UK United Bank AG (Zurich), Switzerland United Executers and trustees Company Limited United Bank Financial Services (Private) Limited

FUNCTIONS OF UBL
UBL is a commercial bank, which transacts the business of banking in accordance with the provisions of BCO, 1962. Section 7 of the Act authorizes banks to engage in the prescribed form of business. In the light of this section UBLs functions can be categorized as under: Agency services General Utility Services

 Underwriting of loans raised by the Government or public bodies and trading by corporations etc. Providing specialized services to customers, and Hajj-related services.

ROLE OF UBL BANKING SECTOR

The impressive growth and development, which UBL achieve, present it undoubtedly the most dynamic and progressive. In a very shorter period of time it became one of the leading banks overtaking several other older and its competitor banks4. The major contributions5 the bank ahs made are enlisted below: Record setting performance and commitment to serve the customers Personalized service and dynamic approach Catalyst of changes Professional management Modern banking policy Human resource development Small loans (or) micro credits Pacesetter in economic research established in 1967, department for economic research. Utility bills collection Credit cards (unicard-1970) Travelers Cheques (Humarah-1971)

4 5

Products and Services

You as an individual can gain and benefit the most through UBL Consumer Banking. In UBL you get friendly, efficient and attentive personalized banking services - a unique banking relationship experienced by each UBL client. You can utilize the following services:

1: DEPOSIT PRODUCTS
UBL Business Partner Account:
THE CURRENT ACCOUNT THAT OFFERS FREEDOM

UBL Business Partner comes with unmatched free* offers. We truly value your partnership and believe in offering you the preference you deserve. Now individuals and sole proprietorships can become our preferred Business Partner by maintaining Rs. 250,000/- or above in their current account and get the following services absolutely free! Unlimited Real Time Online Transactions Issuance of Pay Order, Demand Draft & Telegraphic Transfer UBL Wallet ATM/Debit Card Cheque Book Collection / Clearing of Cheques Lockers, small, medium and large (subject to availability) No Cheque Return Charges 50% discount on UBL Credit Card Annual Fee

Rupee Transaction A/C

If you choose to keep a deposit in a secured savings account which also gives an attractive rate of return, then UBLs PLS Savings Account will serve all your financial needs. By keeping your deposits in UBLs PLS Savings Account you can also avail the following services: Special features are: are No limitation on withdrawals. Share of profit is credited on half-yearly basis. Profit is calculated on monthly balance. UBL offers free accidental and permanent disability individual and joint account holders. insurance to

UBL Basic Banking Account- BBA :

To accommodate the banking needs of low income groups, United Bank Limited is pleased to launch the UBL Basic Banking Account Scheme (UBL BBA) from February 25, 2006 across its branch network all over Pakistan. This is primarily aimed toward helping the low income group to benefit from the banking services without having the pressure to maintain specific balance amount with the banks. Find below basic product features of the Product: The minimum initial deposit at the time of account opening is to be Rs. 1000/-. Basic Banking Account will be a current account. There is no minimum balance penalty on UBL BBA accounts, however all accounts having nil balance for a continuous six month period shall be closed. All Business Partner waivers allowed if the account holder meets minimum balance requirement condition as per SOC. BBA customers will be allowed unlimited free ATM withdrawals from UBLs own ATMs. However, withdrawals from other banks ATMs will be charged as per the existing SOC (currently Rs. 15/- per transaction). Annual fees including issuance and renewal of ATM card will be charged as per existing SOC.

UBL UNIFLEX ACCOUNT:

UBL has introduced a new kind account, ideal for small investors, traders businessmen, and customers from middle-income group. They can now afford an amazing rate of return plus value added benefits only available from the UBL uniflex PLS saving account. Amazing rate of return Convenience of a cheque books Power of Wallet Visa ATM/Debit card Online banking facility All individuals and joint stock holders are eligible for the UBL Uniflex account Corporations and Partnerships are ineligible Only one UBL Uniflex on per computerized CNIC shall be allowed to be open in UBL If the amount balance touched during the month exceeds Rs 200,000 interest shall only be paid on Rs. 200,000 and no interest will be paid on exceeding amount The UBL Uniflex account cannot be overdrawn All single debit incidents to an account will be considered as separate transaction Except deduction by the bank for charging service fee, Withholding tax and zakat deduction

Terms and Conditions

UBL UNISAVER ACCOUNT

UBL UniSaver Account is an innovative way of serving your banking needs. Be it trade, business or personal finance, the UBL UniSaver allows you maximum flexibility, yet gives you optimum returns. Innovative and flexible checking account Attractive rates of return Profit is calculated on monthly average balance Profit payment is on six monthly basis Higher returns on higher balance Backed by the bank awarded AAA Credit Rating

PLS SAVING ACCOUNT

You can open a PLS Savings Account with an initial deposit of Rs. 2,000 Your share of profit is credited half-yearly and is calculated on monthly balance You can withdraw your savings through cheque .

UBL E TRANSACTION:
When it comes to electronic financial services www.ubl.com.pk is Pakistans favorite Internet destination and why not!. With years of experience in innovation United Bank offers a wide spectrum of world-class of electronic services and banking products for trailblazers like you.

FOREIGN CURRENCY TERM DEPOSITE RECIPTS:

UBL Unizar plus, a highly lucrative foreign currency account offers the following features: Account can be opened in 4 currencies US DOLLARS, GB POUND STERLING EURO J YEN No restriction on there transfer of funds to anywhere in the world You can maintain current, saving or term deposit accounts Attractive rate of return Resident or non-resident Pakistani firms and companies are eligible to open these accounts Minimum balance required: USD 500 Except from ZAKAT Withdrawals allowed in foreign currency.

REGULAR TERM DEPOSIT

If you wish to make a secured long t6erm investment, UBL,s term deposit receipt is the smart choice just make an investment and see your deposit go over You get an attractive rate of return Your profit is credited to your account every six month You can avail the roll over or renewed option at any time before encashment Avail different attractive rates depending on the tenor you choose Get the pleasure of availing the best rates Avail the service of 9 - 5 non stop banking

AVAILABLE TENORE 1MONTH, 2MONTH, 3MONTH, 6MONTH, 1YEAR, 2YEARS, 3YEARS

SPECIAL DEPOSITE RECIPTE

If you wish to park funds for a short period then UBL offers Special Notice Deposit Receipts (SNDR). Attractive rate of returns Secure investment Profit will be disbursed on a half yearly basis Availability of options to invest funds for 7 days and 30 days. SNDR can be en-cashed at any time before maturity period SNDR can be issued through checking account UBL offers free accidental and permanent disability insurance to individuals and joint account holders

2: Products of Foreign Exchange

MONEYGRAM TEZ RAFTAR IFTT

Money Gram
Receive remittance from 136 countries in 10 minutes .UBL, together with MONEY GRAM, the internationally recognized worldwide transfer service provides overseas Pakistanis the benefit of a fast and reliable remittance service. Speed

Money transfer time from any foreign country to Pakistan is only 10 minutes. Convenience UBL authorized branches, in Pakistan, are linked to 36000 money gram agents in 136 countries Security Professional expertise and expertise and experience of UBL & money gram guarantee the safety of your money transfer. Flexibility The service does not require you to be a UBL account holder.

TEZRAFTAR
Free Doorstep Remittances With-in the country or from abroad, UBL offers the most efficient and price competitive service. With our large network of branches, we are poised to offer you service almost at your door step. UBL's new remittance service, TezRaftaar offers all overseas Pakistanis the fastest and the most convenient delivery of their money to their beneficiaries in Pakistan. Best of all, TezRaftaar is completely cost free and is available at all UBL branches along the Bank's Network in the Middle East, UK and US.

Check out its great benefits:

Fastest delivery to your given address in Pakistan Doorstep delivery by authorized courier or credited to the recipient's account Free of charge transfer service Open to all including those who are not UBL account holders Complete reliability of transaction

3: Cards and Loans

UBL Credit Card UBL Businessline UBL Cashline UBL Address UBL Drive Remittances

UBL CREDIT CARD

It is the Pakistans 1st Chip Credit Card, that guarantees you both enjoyment and high value. It assures you global acceptability in more than 22 million establishments worldwide in 130 countries and in more than 12, 000 outlets within Pakistan.

You can now withdraw cash through your UBL Credit Cards instant cash advance facility from any designated UBL Cards Payments Branch nationwide, and at more than 700,000 ATMs and financial institutions worldwide displaying the VISA/ PLUS logo.

UBL BUSINESSLINE
UBL Businessline a complete solution to all your Business Financing needs. UBL Businessline is a running Finance facility that not only provides funds for growth but also enables you to capitalize on profitable opportunities. With UBL Businessline, now you will surely say: "Ab Hui Kamiyaabi Meri Manzill'. Utilize up to Rs.10 million: Mark up on utilized amount only: Faster Processing:

UBL Cash line

UBL Cash line is a flexible loan that provides you cash up to Rs.500, 000 without any security requirements. It empowers you to take control of your finance. UBL Cash line is aimed to make your life easierZINDAGEE ASAAN. Whether you are a salaried individual or a businessman, UBL Cash line takes care of your cash requirements

UBL Address
Owning a house of your very own is a cherished dream. A lot of planning and hard work is involved in making this dream come true. That is why, at UBL we aim to make your decision easier, by offering you the right ingredients that can help you realize your dream with absolute convenience. UBL Address empowers you to become the proud owner of a home by offering a variety of product and pricing options that are flexible yet affordable. So choose the best product option and pricing to suit your needs. All product options are amortized and range over a tenor of 3-20 years.

UBL Drive
Accelerate your life; Drive the way that suits you! UBL Drive is a unique auto financing product which offers you features, option and flexibility unmatched by any other bank, because at UBL, You come firs t.

UBL UniSaver
UBL UniSaver Account is an innovative way of serving your banking needs. Be it trade, business or personal finance, the UBL UniSaver allows you maximum flexibility, yet gives you optimum returns.

Daily Profits on your daily balance Higher returns on higher balances Attractive rate of return Backed by the bank awarded AAA Credit Rating

ADVANCES
There are two types of Advances which UBL provides:
a) Fund Base Advances b) Non-Fund Base Advances

FUND BASE ADVANCES

hese are those advances in which actual payment of funds is involved. These funds again have been dividend into two types.

1. Running Finance or Cash Finance

This is a loan, which is provided only to the running businesses to meet their working capital requirements. The bank decides limit on continuing bases. It means that the customer can draw the amount as much he is required as approved by the bank. He can deposit and withdraw the amount on his account.

2. Demand Finance Facility The bank on demand provides this facility. It means that the bank pays the full amount to the client and mark up is also payable on the full amount. The bank considers the full amount outstanding. The bank provides also facility of loan to its own employees against the security of their immovable property. The rate of markup on these advances is lesser as compared to the rate of markup on the other advances.

NON-FUND BASE ADVANCES

There are three categories of Financing: a) Agricultural Finance b) Seasonal Finance c) Industrial Finance

Agriculture Loans:Three are three types of agriculture loans: Short Term:Term Duration of 1 year Production loans are short term loan

Medium Term:Term Limit upto 5 years Upto 7 years Development loans are long term loans Long Term:Term

Types of Loans:-

Production Purposes Development Purposes

1. Production Loan Financing is available for Major and Minor crops across Pakistan. Main purpose of financing is to facilitate farmers to purchase Agri Inputs such as Seeds, Fertilizers, Pesticides, Sprayers, hired labor etc. 2. Development Loan Land Development, Equipments and Machinery Financing for Land Improvement, Water course improvement, Tube wells, Lift pumps, Deep turbine pumps, Cotton pickers, Godowm Cold Storage, Harvester, Thresher, etc Loan Tenure 1 to 5 years

Tractor & Vehicle Finance

To purchase Tractors, Delivery Vans, Mini Trucks, Motor Cycle and other vehicles used for marketing Agri Products

LOAN TENURE
1 to 3 years for Motor Cycle 1 to 7 years for Tractor 1 to 5 years for other 4 wheel vehicles Repayment mode monthly, quarterly and half yearly

4: Other Services
UBL Net Banking UBL WIZ Card UBL e-statement Hamrah UBL Wallet Small business scheme Car financing UBL ATM

UBL Net Banking:

UBL Net Banking is an internet banking portal offering a simple, convenient and secure method of accessing bank accounts on the internet. Its never being so easy to access and manage your finances in a secure real-time, online environment

UBL WIZ CARD

WIZ is easily available with the facility of reload in the selected branches of the UBL. This can be used for online Purchase and shopping in different shops. And have a facility of easy withdraw of money from ATM. In Pakistan and in foreign countries, attachment of VIZA with your WIZ card can be use in those ATMs and places where VISA is acceptable.

UBL e-statement:
UBL is pleased to announce the launch of the UBL e-statement facility which it easier for you to get your statement of accounts and automated transactional debit/credit alerts right into you inbox.

Hamrah:
UBL has always been adding the forefront in identifying and meeting the financial needs of its valued customers. UBL was a pioneers an introducing Rupee Travelers Cheque facility in Pakistan, as early as 1971. In continuation of the same tradition, UBL in the shape of, HAMRAH Rupee Travelers Cheque enhances this facility for the convenience of its valued customers by offering denomination up to Rupees 10,000. UBL has a 24 hours customers help-line, providing its customers with round the clock tele-verification of HAMRAH Rupee Travellers Cheques.

UBL Wallet
UBL Wallet VISA as your debit card, you can shop all you want, eat all you can or fill up car tank without carrying any cash. UBL WALLET all the Cash you NEED UBL Wallet, now with the power and international acceptance of VISA! Your Wallet VISA ATM & Debit Card has all the convenience and security you desire and the quality you deserve. This Wallet holds all the cash in your bank account. Available to All UBL Account Holders UBL offers ATM and Debit Card facility to all account holders at all UBL branches anywhere in Pakistan, regardless of whether their branch is online or offline. Nine Supplementary Cards UBL Wallet \/ISA also gives you the facility of having up to 9 supplementary cards issued against one primary card. All supplementary cardholders will be able to conduct ATM/Debit transactions within the limits of the primary card account.

Small Business Scheme

Under the Small Business Scheme, UBL is providing loans on easy terms to those who wish to set up their own small-scale business. This scheme is aimed at spreading prosperity in the country by reducing unemployment. As more and more people start their own industrial units, the country will move steadily towards economic self-reliance.

New Car Financing

UBL Drive allows you to drive away in your own car by making a down payment of just 15% and to top that with low monthly installments.

UBL Money
UBL money, the personal installment loan from UBL provides you with power, Control convenience and the flexibility to manage your financial requirements and realize on your dreams. Its about buying new furniture or marriage expenses, financing the education of your child or enjoying vacations abroad! UBL Money caters your needs handsomely. You can borrow any sum between 50,000 to 500,000 (PKR) and payoff up till 5 years. We know what you need at what time. Just give us the opportunity and let us serve you best.

UBL ATM
ATM stands for Auto Teller Machine. In Pakistan ATM are installed at all big and commercial branches. There are two type of debit cards 1- WALLET GOLD 2- WALLET SILVER. These are debit cards. In wallet gold card you can withdraw money upto Rs.2,00,00/- and in silver category you can withdraw money upto 40,000 daily. An other salient feature of this machine is that you can withdraw money just if you have debit card of any national bank. Moreover for immediate assistance there is a telephone installed with ATM and you can get information just by picking up the receiver. You will directly link with head office where several people are hired for your help.

UBL DEPARTMENTS
1: DEPOSIT DEPARTMENTS
As per the definition of Banking under see 5(b) of BCO 1992 one of the main functions of a bank is to accept deposit. Deposits are the backbone of any bank; other functions of the bank primarily depend upon the type and size of deposits. The bank accepts the deposits at a low rate of interest and lends it at higher rate of interest, the difference between the lending and accepting rate is the Source of income for the bank. Keeping in view the above factors UBL offers the following types of deposits: Current Deposit Saving Deposit Fixed Deposit The classification of the deposits in to current, saving and fixed accounts is mainly on the basis of duration and purpose for which the account is maintained at a bank CURRENT DEPOSIT Current deposit is running deposit because, customer can withdraw deposited amount at any time, whenever he feels need. The customer can withdraw without any prior notice to the bank. The bank has to pay the cheque provided within the limits of the account balance. The main thing is that bank does not pay any kind of interest on current account. Actually this deposit is for the business purpose. The bank cannot invest the deposited amount under current account heading, because of the fear of withdrawal. Bank has to keep with it a higher reserve ratio to meet the needs of the current account holders. SAVING DEPOSIT Saving Account is an important source of funds for the bank. The purpose of this account is to attract the small saving of the general public. Normally workers, schoolboys and employees of the organizations use the saving account facility. UBL also provides this facility to the general

public against a certain rate of interest. The new name of this account is now a day is PLS-Saving Account. If a customer wants to withdraw a large sum of money (above 15000), he will have to give a notice of 7 to 14 days in writing to the bank. Saving account deposits provide a chance to the bank to invest safely, because customer can withdraw small amount of balance. FIXED OR TERM DEPOSITS Fixed or Time deposits accounts are the major source of the capital for investment for the bank and cannot be withdrawn as in case of the current account. The amount deposited can be received back after a certain specified period of time. The rate of interest paid on fixed Deposits is normally higher than saving Deposits. The rate of interest also varies due to time period. More the maturity period of the account more the interest is paid by the bank. After the expiry of the period the customer presents the receipt to bank and received the amount in cash or bank added in the customer accounts as agreed between bank and customer.

2: ACCOUNT OPENING DEPARTMENT

A customer can open the following three types of accounts: 1) 2) 3) PLS-Saving Account Current Account Fixed Account

1) Saving Account
Saving account is also divided into two types further, Individual saving account Joint Saving Account I. Opening of Individual Saving Account An individual person can open this type of account. UBL has defined the following procedures for the opening of individual saving account: Signature specimen card, the bank to get authorized signature of the customer as

specimen for avoiding any future discrepancy gives Customer. Account opening form, when a customer comes to open the new account in the branch he is given a printed form, to be filled by him. Account opening form consists of full name, address, and date of birth, occupation, telephone number, and N.I.D. card number. Guaranteed by the existing account holder, when the new account holder fulfills all the requirements then he is asked to give some existing account holder guarantee, so that in future the new account holder may not fraud with the bank. II. Opening of Joint Saving Account: Opening procedure for the joint saving is same as in case of individual saving account. Just the difference is in the account opening form. Signature specimen card is also used for the same purpose as for the individual saving account, to avoid future discrepancy. Account opening form, joint saving opening from has same information more than one time because more than one person fills this form to open the account. Briefly is that no one/single person can open this account, as a result it is called joint saving account.

2). Current account

A person, businessman and organization can open the following types of current account. I. II. III. IV. Joint Current Account Individual Current Accounts Sole proprietorship Current Account Partnership Current Account

Joint Current Account More than one person can open joint current account. Minimum balance of this account is Rs.l0, 000 approx. If a joint holder dies then bank holds the account and refers case to the court. Individual Current Account Only one person can open individual current account. Minimum balance in this case is 2500, if the balance in the account is less than this limit than bank sends a statement to

account holder to maintain the minimum balance. For withdrawal, checkbook is issued and used no other instrument is used or accepted by the bank. Procedure for opening this account is also same as in PLS-Saving account just the difference is in opening form information, required by the bank. Sole Proprietorship Current Account In sole proprietorship organization a person invests his capital and devotes full time to his business. Sole proprietor opens this account. Minimum balance that required in this account is Rs. 1000. All the profit paid on balance will go to the sole proprietor only. The account opening form of this account is different than others because this form is filled in the name of the organization. The name of proprietor. Place and Date of birth, Nationality, Passport number and National Identity Card number, have to mention on this form. Following documents certified copies are required with the application: a) b) c) Most recent set of Account Current Municipal Licensee Commercial Registration Certificate.

Partnership Current Account Partnership current account can be opened with the name of Partnership Company. Before opening of partnership account shareholders has to decide that how many partners have right to sign on cheque. The procedure is same for opening such account; the difference is in the account opening form. Account opening form shows the name in full, nature of business, principal place of business, address, location, and telephone number, telex number. After that this form is divided into four sides with the name of A.B.C.D. and showing the same information mentioned earlier.

Rules and Conditions Bank can close /down any account at any time upon 48 hours write notice, after the opening of the account.

 The account number should be mentioned on all correspondence with the bank when deposits or withdrawals are made. The account holder must maintain the minimum balance requirement that is Rs: 1000. After six-month bank refuse the payment of the cheques (post dated cheques). Bank will not make payment if cheque is made unauthorized. Account holder who is unable to sign, he will affix his left-hand thumb. The cheque amount should not exceed to balance of account. Any person opening a current account is deemed to have read, understood and bound by the bank rules and conditions of current account.

3:ACCOUNTS DEPARTMENT
It is said that accounts department is the backbone of the bank. It plays a vital role in performing different banking functions. The accounts department at UBL is performing its function manually. Different books of accounts relating with other departments are maintained here. With the help of these books of accounts, accountant prepares monthly, quarterly, semi-annually and yearly financial statements. The working in accounts department mainly depends upon voucher system. For each and every transaction-taking place in the bank vouchers are prepared and through these voucher contra entries are passed under different heads. FUNCTIONS OF ACCOUNTS DEPARTMENT The accounts department performs the following functions: (a) (b) (c) (d) To prepare and maintain the vouchers. To maintain and update the ledgers for term deposits. To update general ledger. To prepare different periods statements.

Accounts department Maintains and prepares the following ledgers and books of accounts:

 Daily General Ledger Expenses Daily General Ledger Incomes/Receipts Monthly General Ledger Assets Monthly General Ledger Liability Daily General Ledger Zonal Expenses Daily General Ledger Inspection expenses. Daily General Ledger Regional Expenses Daily General Ledger Audit Expenses Preparation of Different Statements Accounts department prepares these statements, Statement of Affairs Statement of provisional Income Statement of provisional Expenses Statement of Head office A/C Balance confirmation Book/Report Transfer Book LOCKERS UBL is also providing lockers facilities to its customers. The account department also maintains the record about lockers. The basic purpose of locker is to provide safe custody to clients valuable ornaments, jewelry or documents. Almost in all branches, Lockers are available in different sizes at different rates. For availing this opportunity, customer has to open his account in the same branch/bank. Locker Operating Procedure: Bank provides an application form to the applicant who needs to operate a locker in the branch. This application form contains all rules and regulation regarding to obtain locker. Specimen signature card is also filled in signed by the applicant. Bank assigns a password

to their customer for secrecy. Each locker has duplicate keys. One (master) key is kept by the bank, and the other by the customer. In case of opening any locker, first of all master key is applied and then the customer key. If the locker has been obtained jointly then at the time of the opening, the person signed the application form, should be presented there otherwise, the bank will not allow to operate the locker. Bank officer has to maintain the following register for record keeping purposes of locker. I. II. III. Locker Register Operation Register Key Deposit Register

Types of Locker There are basically three types of locker at UBL that are as under: TYPES OF LOCKERS Small Medium Large RATES OF LOCKERS Per Annum Rs. 1200 Rs. 1800 Rs. 3000

The key deposit fee is Rs. 600. Per locker and it is refundable at the time of closing an account the breaking charges are Rs. 500 per locker and it is also refundable at the time of closing of account, provided there is no breaking.

4: BILLS DEPARTMENT
This department basically deals in bills, which come in bank for collection. The bills are cheques, call deposit, drafts and pay order. These bills are from outstation branches of UBL or of other banks. This department provides services to customers at low charges to get their amounts from the nearest branch. HEADS OF BILLS There are two main heads of the bills i.e. Outward Bills For Collection (OBC) Inward Bill For Collection (IBC) Outward Bills for Collection Bills department receives cheques or other kinds of bills from its clients. The condition under Outward Bills for Collection is that the customer must have his account in the branch. This branch forwards the cheque with schedule or covering letter to that branch on which bill is drawn. The checking officer of bills department will cross the cheque with special bank stamp before forwarding the cheque to the other branch. Outward Bills for Collection Register Outward bills for collection register is maintained in order to deep the records of all bills for outward collections. This register is updated two times, first at time of receiving the OBCs and secondly at the time when confirmation advice is received from the other branch, either the cheque will be paid or not by the other bank branch. After confirmation of the amount, confirmation advice is transferred to the sender branch. After confirmation of the amount and bills, the account of the customer is credited against reasonable charges, which is income for the bank. Inwards Bill for Collection These bills come to branch for payments so branch has to verify these cheques, pay orders, drafts and call deposits etc. The party account must be opened in that branch which sends it to paying branch .The responsibility under IBCs of the branch is to verify

all the bills within three days, and should send the bank advice to the originating branch. Inward Bills for Collection Register Inward bills for collection register are maintained for future record purposes. Care is made while posting the amount of bills in the register. Each bill is assigned a number according to the register series. Every year the number starts from one and continues for the whole year and next year again from one and so on.

5: Clearing Department
The major function of Clearing Department is to receive the cheques, which are drawn on some other bank. The customer can get the money in his account at UBL, from the cheques drawn on another bank. The bank accepts these cheques and collects the amount from that bank on which cheque is drawn through the Clearing House. Bank charges some commission for this function. Pay-in Slip The customer fills pay-in slip. This slip is just like deposit slip. The cheque number, date, amount and account number must be written on this slip. Stamping and Scrutinizing The officer on receipt of cheques and pay-in slip will stamp the pay-in slip with cheque received and give a portion of slip to customer and the remaining portion is attached with the original cheque. The original cheque will be marked with two stamps. United Bank Of Pakistan Clearing Stamp

At the end of day, all cheques are counted and then scrutinized in bank-wise and sent to the Clearing House.

Billing and Government Receipt/Payment This department is performing following functions: Collection of utility bills Collection of dues of education institution Payment of salaries Payment of pension

6: CASH

DEPARTMENT

This is sensitive department of the branch. No other person is allowed to enter in the premises of cash department. As obvious from name that this department deals in cash deposits and payments. Cash department is performing its functions/duties manually. For payments and receipts, it has to maintain certain sheets, books of accounts and various ledgers, which are as under: 1) 2) 3) 4) 5) 6) 7) Cash received voucher sheet Cash paid voucher sheet Token register Transaction ledger Pay-In-Slip record Cheque book record Cash balance book

7: REMITANCES DEPARTMENT
Current business trends demand fast movement from one geo-graphic end to another. Latest technology and telecom data transmission has made it possible to make such transactions with in minutes. UBL Remittances Department performs following functions.

Demand draft (D.D)

D.D is a negotiable instrument issued by branch of the bank drawn on other branch of the same bank. Procedure Purchaser is asked to fill in an application form duly singed by applicant. Three things should be maintained in the form. Name of Payee Place of payment Amount of D.D

Telegraphic transfer (T.T)

Transfer of funds to another branch of the same bank with the help of test numbers. If the test number agrees the bank make payment to the party. Procedure The procedure for T.T is same as D.D. But in D.D it is given on a printed-paper and singed by two officers but, in T.T, only test number is given to the customer.

Mail Transfer (MT)

When the money is not required immediately, the remittances can also be made by MT. Here the selling officer of the bank sends instructions in writing by mail to the paying bank for the payment of a specified amount of money. The payment under transfer is made by debiting the buyers account at the sending office and crediting it the recipients account at

the paying bank. UBL takes mail charges from the applicant where no excise duty is charged.

Pay Orders
Pay order is banker cheque issued favoring a named beneficiary. The issuance bank is discharged by payment in due course. Application for the PO stamped and the customers account balance is checked or cash received for the amount PO and other charges. Pay Order leaf is typed and crossed if required and signed by two authorized persons. Thereafter it is delivered to the customer. PO can be cancelled at original purchasers request in writing and surrender the instrument, which then marked canceled along with other documents and prior entries.

Rupee Traveler Cheques

UBL has launched R.T.C Brand named Hamrah in November 1996. These are issued to applicants with varied denominations without excise duty and commission. When issued HO account is credited and on encashment the same account is debited. RTCs lost cases are communicated to HO and client is either repaid or new RTCs are issued to him/her.

Uni Remote
This is a new tool for the transfer of money. This is a step towards the online banking taken by UBL. This tool transfers money from one branch of UBL to other through electronic transfer. The customer will have to fill the deposit slip. On the slip he will write the name and account number of the person to whom the money will transfer, the name of the branch is also written. The amount is deposited with teller and the receipt is shown to remittance inchraged. One I.D copy is also attached with slip. The remittances incharge will transfer if by using device (computer) through online service. The fund transfer is must be supervised by another authorized officer. Every time for this is five minutes.

8: IT DEPARTMENT

Information Technology Deptt. is related with all computer activities like to manage the Central Data Base (CDB) which is placed in Head Office of UBL Karachi in all the daily transactions in all the branches of the country are up-dated on daily basis. This Deptt. also makes the web site new news to web site. A spoke branch up-date the daily transactions through computer networking to the its Central Branch. Suppose all the withdrawing, deposits, remittances, collection and clearing data of the day is sent to the Central Branch.

9: AUDIT AND INSPECTION

The responsibility of this department is to audit and inspect the operations of the branches. Whether the operations are compliance by the branches in a right way or not. The CCD (Control and Compliance Department) comes under this department. I will discuss about the CCD in the branch level functions.

10: Human Resources Department

This Deptt. does all the activities related to HR and Personnel Management like Job Analysis, Job Design, Job Description, Job Redesign, Job Specification, Recruitment (is the process of finding and attracting capable applicants for employment through Advertising, Employee Referrals, Private Placement Agencies etc.), Selection by written tests and interviews, Orientation, Training, Career Planning, Performance Appraisal (employee performance and accountability), Compensation and Protection, UnionManagement Relations etc. It also involves in the following activities: Transfers & Postings Scrutinizing bills (Hospital Bill) Staff Deceased cases & its Correspondence Retired employees Cases & its correspondence. Retrenchment cases Complaints and its correspondence

QUALITATIVE ANALYSIS

During my six months of internship period I have tried to fully commit myself in the learning process. I kept critically observing the things that I could analyze and the result of the exercise is presented as below. A)

Organizational
Existing organizational hierarchy hinders vertical communication and blocks flow of information among the levels of management. The workload is not equally distributed. Coordination level among divisions/departments and employees are poor, particularly speaking of between the top and lower levels of management. There is centralization of authority and branch managers are bound and restricted to take initiative. Due to overlapping nature of duties and jobs there exists chaos and confusion in branches.

B)

Departmental

During my internship period in UBL, in various departments, I noticed following departmental problems. Cash Department: i. Not very frequently but there are instances of fake currency notes, being identified. At times notes received from other branches were found to have certain fake currency notes. ii. Counting mistakes occur due to overcrowding particularly during the collection of utility bills. Manual counting system also affects efficiency of the bank. iii. iv. Code of conduct of cashiers is found unsatisfactory. There is generally the lacking in observing and practicing banks relevant procedures and SOPs. Remittances Department:

i.

Application of tests for authentication of TTs is not known to al concerned individuals that reduces the efficiency and further the wrong application of tests prevent payments and the delay could dissatisfy customers.

ii.

Telegraphic messages require specific skills and training. The employees are partially equipped of such knowledge.

iii.

Preparation, execution and management of TTs and MTs and particularly DDs ask for mastering applicable rules and regulations and most of the staff was found ignorant of those.

i. ii.

Deposit Department: Newly designed AOF has an inbuilt deficiency of restricted space and cannot accommodate more than two names. Identification of customers signature is very important particularly when cash is to be withdrawn by him. Manual practices pose problems in those branches where automation has not been done yet.

iii.

In cases where the presence of customer himself is must, is sometime compromised due to influences of\r fear of loss of customer.

i. ii.

Clearing Department: Wrong endorsement and stamping causes loss to the customers and extra efforts for the bank to repeat the procedures. Reasons for the return of the cheques at times are not mentioned on the return memos.

iii.

At times due to lack of training wrong stamps are applied on instruments.

Credit Department: i. ii. Timelines in cash disbursement is very important which is compromised due to lengthy processing and documentation requirements. Relationship Managers need to be fully equipped with the requisite knowledge and skills as presently plain BA/B.Sc qualified individuals are performing jobs of MBAs.

iii.

Lack of infrastructure for carrying out computerized financial analysis of borrowers business.

iv.

Large pool of potential borrowers cannot apply for loans due to lack of collaterals. Heavy collateral requirements restrict credit business of the bank.

v.

The credit proposal and other documents at times are not properly and sufficiently prepared before taking approval.

vi. i. ii.

Filing and record maintenance of credit related documents are not done efficiently. Bills Department: Bills are sent to other cities; therefore, extra care should be exercised in making entries and stamp affixing. Proper scrutiny at times is not carried out and it causes loss to the bank or increase procedural timings.

iii. i.

Employees at times mismanage their time and fail to forward bills promptly. Foreign Exchange Department: Problems of bills and remittances departments equally apply to foreign exchange department. There is overlapping of functions and complete separation of function has not been achieved thus leading to a state of confusion and conflict among employees.

ii. iii.

Employees of this department are lacking computer-operating skills. Knowledge and educational background of employees working in this department do not match with the job they are doing.

iv.

Most of the employees of this department lack the ability to handle the Letters of Credit.

SWOT Analysis

A scan of the internal and external environment is an important part of the strategic planning process Environmental factors internal to the firm usually can be classified as Strengths (S) or Weaknesses (W), and those external to the firm can be classified as Opportunities (O) or Threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. Internal Factor: External Factor: S O Strengths Opportunities W Weaknesses

T Threats

The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan: SWOT Analysis Framework

Environmental Scan / \ Internal Analysis External Analysis /\ /\ Strengths Weaknesses Opportunities Threats | SWOT Matrix

A SWOT analysis generates information that is helpful in matching an organizations or a groups goals, programs, and capacities to the social environment in which they operate

STRENGTHS
It is one of the largest private banks with a deposit base of Rs. 94883/- millions showing constant growth over the period from 1999 till the day. It has a well-knitted and adequately equipped branch networking system that efficiently covers both the domestic and international markets. It is involved in both corporate and retail banking.

1056 Branches all over Pakistan Stands in the list of Profitable bank in stock exchange Largest number of corporate deals by any bank is Pakistan 3rdlargest Bank of Pakistan in term of deposits 2ndlargest Privatized Bank of Pakistan The bank is actively emerging and is engaged in international trade and foreign exchange transactions. Foreign trade volume showed an increase of 17% over the previous year.

Advances investment of the bank shows a constant growth pattern. The current years growth rate is 32%.

The overall efficiency of the bank operations and management ability can be noticed by looking at to its income pattern and provisions/write off practices. o Net revenue from funds increased by 18% for the current period. o Provisions decreased by 14%. o Total income increased by 16%.

UBL is actively participating in international markets and has recently introduced credit cards in UAE, Behrain, and Qatar, being backed up by 24 hours call center out of UAE.

The bank is owned by parties of financial repute and credit worthiness like, SBP with 48.69% interest, Best Way group and Abu Dubai group with 25.50% of interest each. Others are GOP, NBP Trustee Department, State Life Insurance Corporation etc.

The bank is run by highly professional recruited from and trained by foreign banks like Citi Bank.

WEAKNESSES

Due to risks such as political, economic and legal etc the bank has suffered losses the main reason was that of piling up of large amount of unrecoverable loans and debts which have adversely affected the image of the UBL.

Accumulated losses pushed the bank to cut down its promotional activities in order to reduce expenses for last few years.

During the nationalization life span of the bank political lords used influence in bank business and selection of employee at each level and thus adversely affected the banks efficiency and effectiveness.

Administrative expenses are 51% of the mark up revenue. Promotions are carried out on annual basis ignoring the importance of capabilities and performance outputs.

The bank has large number of employees who are simple graduates with no banking knowledge.

Ineffective system of recruiting and selection. Lengthy credit processing and documentation procedures. Unsatisfactory working conditions. All branches need orientation for customer dealing. No separate training center to train their employees. Security system in most of the branches is not up to the mark.

OPPERTUNITIES
Growing policies of the GOP on business and economic sectors provide UBL an opportunity to efficiently meet with the business people requirements of instant cash facilities e.g. the government intentions of developing housing and agriculture sectors. The efficiency of stock market and sound exchange reserve level is providing a good opportunity for effective investment decisions.

Foreign remittances are another area as present world wide control systems over transfer of currencies through illegal channels has facilitated the area for the banks.

Expansion of IT platform and internet based banking system. Interest of businesses in leasing facilities provides a healthy opportunity for banks. There is a large pool of unemployed MBAs who can be hired to achieve professionalism on its organizational culture.

Outsourcing of promotional companies or use of available excellent promotional facilities.

Entering new market segments. Increase the product range to meet the broader range of customers needs. Bank can extend its network in other cities of Pakistan like other 4 remote cities, it would increase their sales.

Proper orientation of employees in all branches can help them to cope up with foreign banks.

By bringing new technology and modern business processes will bring the change and increase their profitability..

Government is taking very bold steps to promote IT in Pakistan UBL has an opportunity to improve in IT stock exchange is very volatile and takes immediate effect so in times of crises conservative investors turns to saving deposits.

UBL is surrounded by many competitors it has an opportunity to aggressive marketing to increase its business.

Call centre services should be improved to enhance their network

THREATS
Increase in competition due to increasing number of foreign and domestic private banks offering highly specialized and attractive services.

Growing global technological advancements and adaptation of modern style of management in banking sectors.

Unemployment, lower level of income and prices like problems in the motherland coupled with low rate of industrialization, geo political adverse conditions, religious factor, lack of consistency in policies due to political instability are some of the other major threats.

Threats are also external factors in the environment, which are not in the favor of company, which can seriously hamper the companys ability to serve its customers. Expansion of new commercial banks like ASKARI bank, UNION bank and etc.. And their better performance may cause loss of market shares of UBL. According to World Bank report the Pakistan has become over banked economy with cut throat competition for deposits in the industry the battle is on for the market shares. The customers have emerged as the main Beneficiaries of the competition. Now they are getting more personalized services and innovative product.

All banks are facing a stiff competition to attract new customers. With privatization program began in Pakistan in 1991, three of five NCBs and three DFIs were privatized, and eleven new private banks were set up.

Along with the growth in size, the banks are now incorporating innovative approaches to their traditional commercial banking operations, keeping in the view the changing demand of the time. UBL face problem.

The political influences affect the performance of bank very badly. Most of the loans become bad dad debits due to political pressure No stable government in Pakistan, Government policies change with the change of government. The concept of evening and Saturday banking, telephonic and online banking, ATMs and credit cards are direct result of the intensive competition. But UBL is behind the above-mentioned services.

Freezing of foreign currency account by the government of Pakistan is also a fear for the bank.

Conclusion

This SWOT analysis is a mirror image of the banks present conditions. Some efforts are made and others are still required to be made in order to improve the situation. The management can develop elaborate strategic plans for capitalizing the available opportunities. The bank should maintain principal of professional management and adhere to sound and sophisticated banking rules and regulations so that confidence and trust of the public in the institutions could be re earned.

PEST ANALYSIS
P E S T is an analytical tool which considers external factors and helps you to think about their impacts. Is a useful tool for understanding the big picture of the environment in which you are operating By understanding your environment, you can take advantage of the opportunities and minimize the threats. This provides the context within which more detailed planning can take place to take full advantage of the opportunities that present themselves.

The acronym PEST (or sometimes rearranged as "STEP") is used to describe a framework for the analysis of these macro environmental factors

PEST Analysis Framework

Environmental Scan / External Analysis / Microenvironment | P.E.S.T \ Microenvironment \ Internal Analysis

A scan of the a external macro-environment in which the firm operates can be expressed in terms of the following factors

POLITICAL FACTORS
Political factors include government regulations and legal issues and define both formal and informal rules under which the firms operate. The rule and regulations that the cement industries follow are as follows

Government type and stability Fiscal and Monetary Policy Regulation and de-regulation trends Social and employment legislation Tax policy, and trade and tariff controls Likely changes in the political environment Employment Laws and Political Stability Environmental and consumer-protection legislation

ECONOMIC FACTORS
Economic factors affect the purchasing power of potential customers and the firms cost of capital. Economic factors can not be excluded for operating any business including fertilizers. Capital availability and Labor costs Impact of globalization and Exchange Rates Stage of a business cycle and Capital markets Inflation and interest rates Unemployment and supply of labor Current and projected economic growth Likely changes in the economic environment Levels of disposable income and income distribution Likely impact of technological or other changes on the economy

SOCIAL FACTORS
The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include:

 Health, safety and environment Demographics: age, gender, race, family size Cultural aspects, health consciousness, population growth rate, age distribution, Organizational culture, attitudes to work, management style, staff attitudes Education, occupations, earning capacity, living standards Ethical issues, diversity, immigration/emigration, ethnic/religious factors Media views, law changes affecting social factors, trends, advertisements, publicity

TECHNOLOGICAL FACTORS
Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points: Technology legislation, new discoveries Information technology, internet, global and local communications Technology access, licensing, patents, potential innovation, replacement technology/solutions, inventions, research, intellectual property issues, advances in manufacturing Transportation, energy uses/sources/fuels, associated/dependent technologies, rates of obsolescence, waste removal/recycling Does technology allow for products and services to be made more cheaply and to a better standard of quality? Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc? How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc? Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc

Financial Analysis

Financial Analysis
Financial statement analysis is defined as the process of identifying financial strengths and weaknesses of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account. Financial statements are the principal means of reporting the financial condition and results of operations of a business entity. These statements are meant to assist various parties in decision making who are interested in the activities of the business.

TECHNIQUES
Ratios analysis Vertical analysis Horizontal or Trend analysis Common size percentages Comparative statements Schedule of changes in working capital Funds analysis

ADVANTAGES
The major benefit is that the investors get enough idea to decide about the investments of their funds in the specific company. Secondly, regulatory authorities like International Accounting Standards Board can ensure whether the company is following accounting standards or not. Thirdly, financial statements analysis can help the government agencies to analyze the taxation due to the company. Moreover, company can analyze its own performance over the period of time through financial statements analysis. Financial statements are prepared to meet external reporting obligations and also for decision making purposes

Common Size Analysis

(Balance Sheet)

Common size Analysis

An analysis of percentage financial statements where all balance sheet items are divided by total assets and all income statement items are divided by net sales or revenue Vertical analysis is the procedure of preparing and presenting common size statements. Common size statement is one that shows the items appearing on it in percentage form as well as in dollar form. Each item is stated as a percentage of some total of which that item is a part. Key financial changes and trends can be highlighted by the use of common size statements Component percentage indicates the relative size of each item included in the total known as component percentage analysis, It also known as vertical or static analysis, The expression of individual financial statement item as percentages of total helps the analyst spot trends with respect to the relative importance of these items over time.

Calculation criteria

 For Balance sheet each item could be expressed as a percentage of total assets. For Income statement each item could be expressed as a percentage of total sales such a statement called as common size statement.

By computing component percentages for several successive financial statements, it can be conclude that, which items are increasing in importance and which are becoming less significant.

Total Current Assets

United Bank Limited

Balance Sheet (common size analysis ) 2007 2008 58% 61.61%
Current Assets %

Total C.A

2009 78.54%

58 78.54

61.61

2007

2008

2009

Operating Fixed Assets

United Bank Limited

Operating F.A

Balance Sheet (common size analysis ) 2007 2008 1.70% 1.48%

Operating Fixed Assets

2009 1.72%

1.72

1.7

1.48

2007

2008

2009

Long Term Investment

United Bank Limited

Balance Sheet (common size analysis ) 2007 2008 11.5% 17.53% 2009 11.09%

L.T Investment

L.T investment

11.09

11.5

17.53

2007

2008

2009

Long Term Assets

United Bank Limited

Balance Sheet (common size analysis ) 2007 2008 42.00% 38.39% 2009 21.45%

L.T Assets

L.T Assets %

21.45 42

38.39

2007

2008

2009

Current liabilities

United Bank Limited

Balance Sheet (common size analysis ) 2007 2008 69.76% 67.86%
Current Liabilities

Current liabilities

2009 71.73%

71.73

69.36

67.86

2007

2008

2009

Long Term Liabilities

United Bank Limited

Balance Sheet (common size analysis ) 2007 2008 98.55% 93.52% 2009 93.09%

L.T liabilities

L.T Liabilities %

21.35 29.19

25.65

2007

2008

2009

Total liabilities

United Bank Limited

Balance Sheet (common size analysis ) 2007 2008 98.55% 93.52%
Total liabilities %

Total liabilities

2009 93.09%

93.09

98.55

93.52

2007

2008

2009

Shareholder Equity

United Bank Limited

Balance Sheet (common size analysis ) 2007 2008 98.55% 93.52% 1.45
6.9

Shareholder Equity %

Total liabilities

2009 93.09%

6.48

2007

2008

2009

United Bank Limited

Common size analysis of consolidated Balance Sheet For year ended 31Dec, 2009

Rs in '000

Common size (%)

Assets
Cash/Bal. With Banks lending to F.Is Investment (ST) Advances-Performing (ST) Other Assets Total Current Assets Investment (LT) Advances-Performing (LT)

2007
3609108 4370006 9190430 39489369 8641263 97782157 19388131 28477494

2008
70463707 3627557 33883311 43632117 2641471 118177074 33623058 26423058

2009
35591280 19050791 29580252 89292490 3509351 177024164 25007413 10312297

2007
21.5 2.6 5.5 23.4 5.1 58 11.5 16.89

2008
17.93 1.89 17.66 22.75 1.38 61.61 17.53 13.77

2009
15.79 8.45 13.12 39.61 1.55 78.54 11.09 4.57

Advances-Non performing (LT) Operating fixed Assets Deferred Tax Assets Total L.T Assets Total Assets

11813855 2864018 8297500 70840998 168623155

5739798 2831534 5026459 73643958 191821032

3671991 3884990 5486357 48363048 225387212

7.01 1.7 4.92 42 100

2.99 1.48 2.62 38.39 100

1.62 1.72 2.43 21.45 100

Liabilities
B/Payables Borrowings ST Deposits - Current Lease and Others Total Current Liabilities Fixed Deposits Other Long term Liabilities Total LT Liabilities Total Liability 1540592 4004130 102568752 8838842 116952316 38747422 21264831 49219400 166171716 1847025 174533 118167469 9986608 130175635 43998916 5212755 49211671 179387306 2991269 174533 152580240 5933743 161679785 37252204 10883720 48135924 209815709 0.91 2.37 60.83 5.24 69.36 22.98 6.21 29.19 98.55 0.96 0.09 61.6 5.2 67.86 22.94 2.72 25.65 93.52 1.32 0.07 67.69 2.63 71.73 16.52 4.82 21.35 93.09

Shareholder's Equity
Share Capital Reserves Accumulated Losses/Profits Minority Interest Surplus on revaluation Total 22481680 3960453 -27282709 1168264 2123751 24541439 5180000 4258947 -722387 1271700 2445466 12433726 5180000 4712569 454403 1412932 3811599 15571503 13.33 2.35 -16.18 0.69 1.26 1.45 2.7 2.22 -0.38 0.66 1.27 6.48 2.3 2.09 0.2 0.62 1.69 6.9

Conclusion
Common size analysis is an analysis of financial statements where the total assets divide all balance sheet items of asset side and all credit side balances divided by all liability items, and all income statement items are divided by net sales/revenues. Common size analyses are extremely helpful to highlight changes over the time in financial performance and financial conditions of the company. The table shows common size analysis of the balance sheets for the years 2007, 2008 & 2009.

The common size analysis given in the table shows that there have been improvements in the current assets in 2009 as compared to 2008, about 17%. But there has been decrease in fixed assets of about 16%. The main reason for this change is increase in short term investment showing a constant increase as a percentage to total assets. This implies that the bank is concentrating now more on non-interest income and the interest rates are constantly falling. Short-term advances have shown a significant change of 15% whereas total advances show a total change of only 6.3%. This is very significant to note that major decrease has occurred in long-term performing and non-performing advances. There is decrease in long term assets of about 17% which mainly cause the decrease in long term advances which are about 13% and 6% decrease in long term investment. On the liability side the total current liability has shown change of about 4%. The main reason for which is increase in current deposits, which are about 6%. The long-term liability of the organization is also decreased by 4%.

Common Size Analysis

(Income Statement)

Gross Profit

United Bank Limited

P&L Account (common size analysis ) 2007 2008 44.65% 51.9% 2009 79.09%

Gross Profit

90 80 70 60 50 40 30 20 10 0 2007 2008 2009

79.89

51.9 44.65

Total Income

United Bank Limited

P&L Account (common size analysis ) 2007 2008 59% 76.2% 2009 126.42%

Total Income

140 120 100 80 % 60 40 20 0 59 126.42

76.2

Profit

2007

2008

2009

United Bank Limited

P&L Account (common size analysis ) 2007 2008 49.95% 24.44% 2009 48.77%

Total Income before tax

60

50

49.95

48.77

40

30 24.44 20

10

0 2007 2008 2009

Profit after tax

United Bank Limited

P&L Account (common size analysis ) 2007 2008 65.11% 12.84% 2009 30.39%

Total Income

70 65.11 60 50 40 30 20 10 0 2007 2008 2009 12.84 30.39

United Bank Limited

Common size analysis of consolidated Income Statement For year ended Dec 31, 2009

ITEMS Mark up revenue mark up expense gross profit provisions and B/Debts Net Mark up Income Non Mark up Return Commission & Brokerage

Rs in Millions 2007 2008 11468 11385 6347 5476 5121 5909 1263 746 3858 5163 1097 2008

2009 9269 1931 7338 564 6773 2142

Common size (%) 2007 2008 2009 100 100 100 55.35 48.09 20.83 44.65 51.9 79.89 11.02 6.55 6.08 33.64 45.34 73.07 9.57 17.63 23.1

Dividends/Exchange and Others Total Non Mark up Income Total Income Non Mark Up Expense Administrative Other Provision and Charges Total non mark up Expenses Profit Before Extraordinary Items Extraordinary Items Profits before tax Taxation Profit/Loss after tax Share of Minority Interest Accumulated Loss Brought Frd. Adjustment against sh. Capital Appropriation and Transfers Surplus on revaluation of Assets Transfer to Statutory Reserve Accumulated Loss Brought Frd.

1818 2915 6773 4669 632 5301 1472 -7200 -5728 1739 -7467 6 19821 0

1514 3522 8686 5879 51 5930 2756 25 2781 1319 1462 10 27283 25202

2803 4945 11718 6639 556 7197 4521 0 4521 1704 2818 21 722

15.85 25.42 59 40.71 5.15 46.22 12.84 62.78 49.95 15.16 65.11 0.06 172.2 0

13.3 30.94 76.2 51.64 0.44 52.08 24.2 0.21 24.44 11.59 12.84 0.09 210.64 221.36

30.24 53.34 126.42 71.62 6 77.64 48.77 48.77 18.38 30.39 0.22 7.78 0

0 2 27283

238 332 722

527 454

0 0.02 237.9

2.1 2.91 16.34

0 5.68 4.9

Conclusion
The common size analysis of income statement is given in the table. Which shows that the UBL has been able to control its interest or mark up expense? As a result of decrease in mark up expense as a percentage of total revenues the gross profit margin has shown a trend of continuous increase. The increasing G/P Margin shows efficiency of the bank in controlling cost of sales (Markup expense) and better strategy of pricing, products and services. The provision for non-performing loans has a decreasing trend making no provision for non-performing loans and diminution in value of investment, which increases the profit of current year. The reduction in provision is a good sign, which shows that the bank is recovering its disbursed advances. It shows the good credit management of the bank.

There is a great increase in non-markup income, which is about 23%. Among its individual components investment income has shown a large increase as a percentage of sales. Non markup expenses also show a rising trend in absolute amount though the common size in percentages has shown a mixed trend due to the changes in revenue figures. The nonperforming expanses also increased to about 25%, which is a very high percentage, but the other aspect of this is that it increased the efficiency and credit management of the staff. Like gross profit the net profit margin before tax has also increased with 24% rate. The extraordinary item expanse has not occurred in 2009 that caused a slight increase in the net income. The tax expanse is increased about 7% because of the increase in profit. Loss brought forward from previous year is reduced by 14%. The common size analysis of the UBL is clearly showing that the bank has shown a lot of improvement in its performance. The organization shows profit for the first time in the last 5 years which is a positive sign and it will build up the moral of the employees by which they can work more effectively and efficiently increasing the performance of the bank.

Ratio Analysis

Ratio Analysis
. The ratios analysis is the most powerful tool of financial statement analysis. Ratios simply mean one number expressed in terms of another.

ADVANTAGES
Simplifies financial statements Facilitates inter-firm comparison Helps in planning: Help in investment decesion

LIMITATIONS
Comparative study required Problems of price level changes Limited use of single ratios Personal bias

 Incomparable

CLASSIFICATION
Ratios may be classified in a number of ways to suit any particular purpose. Different kinds of ratios are selected for different types of situations. Mostly, the purpose for which the ratios are used and the kind of data available determine the nature of analysis. The various accounting ratios can be classified as follows: Liquidity ratios Profitability ratios Activity ratios Debt ratios Market ratios

Current Ratio
The current ratio expresses the relationship of current assets to current liabilities. It is widely used measure for evaluating a company's liquidity and short-term debt paying Current Ratio ability. Formula Calculation United Bank Limited Ratio analysis 2007 2008 0.84% 0.91%
Current ratio = Current assets Current liabilities

Gross Profit Graphical Representation

2009 1.15%

1.15 1.2 1 0.8 % 0.6 0.4 0.2 0 2007 2008 2009 0.84 0.91

Asset Turnover
The total assets turnover indicates that generate company turnover. Here all assets are compared with its turnover. Normally it calculates by dividing sales from its total assets

Formula

Asset turnover =

Net sales Average assets

Calculation United Bank Limited Ratio analysis 2007 2008 0.07% 0.06%

Asset turnover

2009 0.04%

Graphical representation

Asset Turnover

0.07
0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 2007 2008 2009

0.06

0.04

Gross Profit Margin

Measures the gross profit made on sales as a percentage. Ideally as high as possible. Must Gross profit margin also compare profit margins to similar businesses. Formula: Gross profit margin = (sales - cost of sales) / sales Calculation: United Bank Limited Ratio analysis 2007 2008 44.65% 52.50%

Gross Profit Margin

2009 79%

Graphical representation

79%
80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2007 2008 2009

52.50% 44.65%

Net Profit Margin

Takes account of overheads and administration costs indeed it is used to assess how well a business has controlled its overheads.

Formula: Net profit margin = Net profit Net sales Calculation: United Bank Limited Ratio analysis 2007 2008 -65.12% 12.69%

Gross Profit Margin

2009 30%

Graphical representation Net profit margin

30%
30.00% 20.00% 10.00% 0.00% -10.00% -20.00% -30.00% -40.00% -50.00% -60.00% -70.00% 1 2 3

12.69%

-65.12%

Debt to Asset
Debt to assets Formula
Total Debt Debt to assets= Total Assets

Calculation United Bank Limited Ratio analysis 2007 2008 0.99% 0.94%

Debt to assets

2009 0.94%

Graphical representation

0.99
0.99 0.98 0.97 0.96 0.95 0.94 0.93 0.92 0.91 0.9 200 7 2008 2009

0.94 0.93

Coverage Ratio

Coverage ratio

Formula

Coverage ratio= EBIT / Interest Expense

Debt to assets

United Bank Limited Ratio analysis 2007 2008 0.1% 1.15%

2009 3.34%

Graphical representation

3.5 3 2.5 2 1.5 1 0.5 0 2007 2008

3.34

1.15

0.1
2009

Debt to Equity
Debt to Equity is the ratio of Total Debt to Total Equity. It compares the funds provided by creditors to the funds provided by shareholders. Formula: Debt-Equity Ratio = Total Liabilities SHE Calculation: United Bank Limited Ratio analysis 2007 2008 14.54% 14.4%

Debt to equity

2009 13.47%

Graphical representation Debt to Equity

14.6 14.4 14.2 14 13.8 13.6 13.4 13.2 13 12.8

14.54 14.4

13.47

2007

2008

2009

Cash
Cash ratio is calculated cash plus marketable securities and divided by total current Cash ratio liabilities. Formula: Cash ratio = (Cash + Cash equivalents + marketable securities) Total Current Liabilities Calculation: United Bank Limited Ratio analysis 2007 2008 9.59% 9.23%

Ratio

Cash ratio

2009 28%

Graphical representation

30.00% 25.00% 20.00% 15.00% 9.59% 10.00% 5.00% 0.00% 2007 2008 9.23%

28%

2009

Return on Equity
Return on common stockholders' equity measures profitability from the common stockholders viewpoint. The ratio shows the dollars of income earned for each dollar invested by the owners. Formula:
Return on common stockholders' equity =

Net income Average common stockholders' equity

Calculation: United Bank Limited Ratio analysis 2007 2008 -887.99% 16.78%

ROE

2009 18%

Graphical representation ROE

100.00% 0.00% -100.00% -200.00% -300.00% -400.00% -500.00% -600.00% -700.00% -800.00% -900.00%

16.78%

18%

-887.99%
2007 2008 2009

Return on Investment
ROI Formula Calculation: United Bank Limited Ratio analysis 2007 2008 -4.43% 0.76%
ROI = Net Profit / Total Assets * 100

ROI

2009 1.24%

Graphical representation

2.00% 1.00% 0.00% -1.00% -2.00% -3.00% -4.00% -5.00% 2007 2008

0.76%

1.24%

-4.43%
2009

Advances to Deposits
Advances to deposits Formula
Advances to deposits=Advances / Deposits * 100

Calculation United Bank Limited Ratio analysis 2007 2008 56.46% 46.71%

Advance to deposits

2009 45%

Graphical representation

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

56.46% 46.74%

45%

2007

2008

2009

Investment to Deposits
Investment to deposits Formula
investment to deposits= Investment / Deposits * 100

Calculation United Bank Limited Ratio analysis 2007 2008 20.22% 41.63%

Advance to deposits

2009 28%

Graphical representation

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2007 20.22%

41.63%

28%

2008

2009

Interpretation

YEARS
Current Ratio Asset Turnover Debt to Asset Debt to Equity Coverage Ratio Gross Profit Margin Net Profit Margin Return On Investment Return On Equity Advances to Deposit

2007
0.84 0.07 0.99 14.54 0.1 44.65% -65.12% -4.43% -887.99% 56.46%

2008
0.91 0.06 0.94 14.4 1.15 52.50% 12.69% 0.76% 16.78% 46.74%

2009
1.15 0.04 0.93 13.47 3.34 79% 30% 1.24% 18% 45%

Investment to Deposit Cash Ratio

20.22% 9.59%

41.63% 9.23%

28% 28%

Current Ratio
UBLs current ratio is increasing over the time. Higher the current ratio higher the ability to meet the short-term obligations as they come due. The UBLs current ratio is increased by 0.18% as compared to 2008. This in turn decreases the risk of insolvency. The change is occurring due to increase in short term investment and decrease in short term borrowings.

ASSET TURNOVER
This shows revenue generated per rupee investment in total assets. UBLs assets turnover ratio has shown a little decrease. This is because of increase in total assets with proportionate increase in revenue. Banks have relatively low ATR capital, as they are selective in advancing loans and generating smaller sales.

DEBT TO ASSET RATIO

The analysis of total debt to assets ratio, there has been decrease of one percent as compared to 2008 and 6% to 2007. In 2007 every rupee one of assets was being financed by rupees 0.098 or debt and in 2008 it is 0.94 while in 2009 it is reduced to 0.93 worth of debt per rupee of asset. Although the decrease is not large enough but it is a good sign for banks creditors. The decrease may be attributed to the substantial decrease in borrowings

from financial institutions but the affect was weakened by an increase in bills payable and other liabilities.

DEBT TO EQUITY
This ratio measures how the company is leveraging its debt against the capital employed by its shareholders. Analysis of debt to equity ratio indicates that the current position for the debt to equity is that for every one rupee in equity provided by the shareholders the bank has Rs. 13.5 as a debt. This shows that the bank is heavily relying on debt financing. The reason for huge difference stated in the table is because of losses occurred in 2007 and 2008.

COVERAGE RATIO
This ratio shows the number of times a company can cover or meet its financial charges or obligations. One of the most commonly used ratios is the interest coverage ratio that measures the number of times the income is available to pay interest charges. The UBL interest coverage ratio has shown significant improvement in these three years. The ratio is increased from 0.10 to 3.34.

GROSS PROFIT MARGIN

Gross profit margin is the difference between the revenue and cost of goods sold. Gross profit is critical because it represents the amount of money remaining to pay operating expanses financing cost and taxes. UBLs gross profit margin per rupee has shown rising trend in last three years. There is an increase of 27% in 2009 as compared to 2008. this shows efficiency of the bank to control the cost of sales.

NET PROFIT MARGIN

This ratio shows the profit that is available from each rupee of the sale. After all expanses have been paid. Net profit margin is also showing an increasing trend. UBL has improved net profit margin in the current years. The net profit margin has reached to 30% as compared to 2008 in which it was only 12.69%. While in 2007 it was in negative figure. It shows a good impact on the UBLs Balance Sheet.

RETURN ON INVESTMENT
This ratio measures the profitability per rupee of investment in assets. UBLs return on investment has shown an improvement more than 100%. In 2009 the ratio is 1.24% while in 2008 it was 0.76% and in 2007 it was in ive figures. Although the assets have increased but the operational recovery of the bank is main cause of increasing this ratio.

RETURN ON EQUITY
This ratio shows the profit as a proportion of the book value of the common shareholders. The return on equity is also shown a great deal of positive change. In 2009 the ratio is 45% while in 2008 it was only 16% and in 2007it was in negative figures.

ADVANCES TO DEPOSIT RATIO

This ratio shows the companies advances employed per unit of deposit. This ratio of UBL over the recent three years shows a decreasing trend. In 2007 it was 56% while in 2008 it was 46% and in 2009 it is 45%.

INVESTS TO DEPOSIT
This ratio shows the companys investment employed per unit of deposit. This ratio increased in 2008 as compared to 2007 but in 2009 it again decreased. It is because of industrial development factors in the country by which lending has been increased and investment is slightly decreased.

PERSONAL LEARNING
Personal learning is a moral and ethical obligation set by a person to move in a mellow way to excel in present and future. During the internship I realized following duties. Cohesiveness Ever Ready For Challenges Board Vision Learning From Cradle To Grave Always Create Opportunities Open Communication With The Boss appearance

Cohesiveness
A team player can achieve more than an individual. Good coordination and cooperation with peers and other staff members can impulse a person to perform better in difficult situations. During my internship I noticed that the degree of cohesiveness among the UBL employees is high that is why UBL is achieving its target quite efficiently.

Ever ready for challenges

If a person can handle problems and challenge adequately, he can grow especially in Finance field where every thing is well estimated.

Broad vision
THINK BIG Think positively to avoid any kind of discrepancy and hurdle in your task. Positively thinking and broad vision helps you to achieve some thing different and new.

Learning from cradle to grave

Latest researches and journals can be very helpful in order to generate new ideas.UBL offers many new courses to the employees to upgrade their knowledge.

Always create opportunities

Dont wait for opportunities always create opportunities If you are able to create opportunities, success is yours. Now the question is how? The answer is very simple, by generating new and useful ideas for the organization.

Open communication with boss

To avoid any kind of misunderstanding with your boss, communicate freely with him. During my internship I analyzed that; People dont leave the organizations they leave their bosses

So be friendly with your staff and boss and communicate freely to avoid organizational switching.

Appearance
Treat your self as a product Attractive appearance can be very useful to impress others. A professional should be dressed up properly to influence others.

Recommendations
Recommendations and suggestions are considered to be the most important part of an internship report, without which no report is considered complete and meaningful. This part of the report is based on the previous sections i.e. review and analysis. Moreover, for bringing suggestions, discussions have been conducted with the staff of UBL officers, who not only provided the basis for recommendations and suggestions but also pointed out some areas, where the change for the development is utmost important. Realizing the importance of this section, efforts have been made to give feasible recommendations, which are categorized under the following headings. During my internship at the UBL I find out week areas that require improvements for longterm benefit of the organization. These suggestions and recommendation are as follows.

 The behavior with the customers should be improved. There is a great need of proper training of employees. Because when ever they were asked about the latest banking the answer was sorry we dont know. Like the other reputed commercial banks UBL should recruited some officers especially from the fresh MBAs and M.Com students. Doing so, the more talented persons would enter in the management and they will try to make the National Bank compatible with the other banks. All the branches must be fully equipped. The behavior with the customer should be improved. Try to establish effective communication between top-level management and executive. Also do marketing through internet Effective training and qualified, dutiful and vigilant inspection teams are inducted per force in all the banks. . This branch is not doing many functions to open the L/C and to deal in export and import facilities. So bank should hire export staff for such type of activities and start them in the branch.

CONCLUSION
United Bank Limited is one of Pakistans largest financial institutions with large number of branches, having local as well as over seas branches, a very large number of customers. This organization is progressing rapidly because it is adopting change with the passage of

time. But there are some drawbacks of this organization like its staff is not as much qualified as it should. Its daily working is very slow. There is the need of advance and new technology to make its working fast.

BIBLIOGRAPHY

Web sites
www.ubl.com.pk www.google.com www.sbp.com..pk www.dawn.com

News papers
Banking journal Dawn news The Nation UBL financial reports

Books
Principals of Banking Principle of Marketing Principle of Managerial Finance

United Bank Limited

Consolidated Balance Sheet For year ended 31Dec, 2009

Rs in '000

Assets
Cash/Bal. With Banks lending to F.Is Investment (ST) Advances-Performing (ST) Other Assets Total Current Assets Investment (LT) Advances-Performing (LT) Advances-Non performing (LT) Operating fixed Assets Deferred Tax Assets Total L.T Assets Total Assets

2007
3609108 4370006 9190430 39489369 8641263 97782157 19388131 28477494 11813855 2864018 8297500 70840998 168623155

2008
70463707 3627557 33883311 43632117 2641471 118177074 33623058 26423058 5739798 2831534 5026459 73643958 191821032

2009
35591280 19050791 29580252 89292490 3509351 177024164 25007413 10312297 3671991 3884990 5486357 48363048 225387212

Liabilities
B/Payables Borrowings ST Deposits - Current Lease and Others Total Current Liabilities Fixed Deposits Other Long term Liabilities Total LT Liabilities Total Liability 1540592 4004130 102568752 8838842 116952316 38747422 21264831 49219400 166171716 1847025 174533 118167469 9986608 130175635 43998916 5212755 49211671 179387306 2991269 174533 152580240 5933743 161679785 37252204 10883720 48135924 209815709

Shareholder's Equity
Share Capital Reserves Accumulated Losses/Profits Minority Interest Surplus on revaluation Total 22481680 3960453 -27282709 1168264 2123751 24541439 5180000 4258947 -722387 1271700 2445466 12433726 5180000 4712569 454403 1412932 3811599 15571503

United Bank Limited

Common size analysis of consolidated Balance Sheet For year ended 31Dec, 2009

Rs in '000

Common size (%)

Assets
Cash/Bal. With Banks lending to F.Is Investment (ST) Advances-Performing (ST) Other Assets Total Current Assets Investment (LT) Advances-Performing (LT)

2007
3609108 4370006 9190430 39489369 8641263 97782157 19388131 28477494

2008
70463707 3627557 33883311 43632117 2641471 118177074 33623058 26423058

2009
35591280 19050791 29580252 89292490 3509351 177024164 25007413 10312297

2007
21.5 2.6 5.5 23.4 5.1 58 11.5 16.89

2008
17.93 1.89 17.66 22.75 1.38 61.61 17.53 13.77

2009
15.79 8.45 13.12 39.61 1.55 78.54 11.09 4.57

Advances-Non performing (LT) Operating fixed Assets Deferred Tax Assets Total L.T Assets Total Assets

11813855 2864018 8297500 70840998 168623155

5739798 2831534 5026459 73643958 191821032

3671991 3884990 5486357 48363048 225387212

7.01 1.7 4.92 42 100

2.99 1.48 2.62 38.39 100

1.62 1.72 2.43 21.45 100

Liabilities
B/Payables Borrowings ST Deposits - Current Lease and Others Total Current Liabilities Fixed Deposits Other Long term Liabilities Total LT Liabilities Total Liability 1540592 4004130 102568752 8838842 116952316 38747422 21264831 49219400 166171716 1847025 174533 118167469 9986608 130175635 43998916 5212755 49211671 179387306 2991269 174533 152580240 5933743 161679785 37252204 10883720 48135924 209815709 0.91 2.37 60.83 5.24 69.36 22.98 6.21 29.19 98.55 0.96 0.09 61.6 5.2 67.86 22.94 2.72 25.65 93.52 1.32 0.07 67.69 2.63 71.73 16.52 4.82 21.35 93.09

Shareholder's Equity
Share Capital Reserves Accumulated Losses/Profits Minority Interest Surplus on revaluation Total 22481680 3960453 -27282709 1168264 2123751 24541439 5180000 4258947 -722387 1271700 2445466 12433726 5180000 4712569 454403 1412932 3811599 15571503 13.33 2.35 -16.18 0.69 1.26 1.45 2.7 2.22 -0.38 0.66 1.27 6.48 2.3 2.09 0.2 0.62 1.69 6.9

United Bank Limited

consolidated Income Statement For year ended Dec 31, 2009

Rs in Millions ITEMS Mark up revenue mark up expense gross profit provisions and B/Debts Net Mark up Income Non Mark up Return Commission & Brokerage Dividends/Exchange and Others Total Non Mark up Income Total Income Non Mark Up Expense Administrative Other Provision and Charges Total non mark up Expenses Profit Before Extraordinary Items Extraordinary Items Profits before tax Taxation Profit/Loss after tax Share of Minority Interest Accumulated Loss Brought Frd. Adjustment against sh. Capital Appropriation and Transfers Surplus on revaluation of Assets Transfer to Statutory Reserve Accumulated Loss Brought Frd. 0 2 27283 238 332 722 527 454 4669 632 5301 1472 -7200 -5728 1739 -7467 6 19821 0 5879 51 5930 2756 25 2781 1319 1462 10 27283 25202 6639 556 7197 4521 0 4521 1704 2818 21 722 1097 1818 2915 6773 1265 1514 3522 8686 2142 2803 4945 11718 2007 11468 6347 5121 1263 3858 2008 11385 5476 5909 746 5163 2009 9269 1931 7338 564 6773

United Bank Limited

Common size analysis of consolidated Income Statement For year ended Dec 31, 2009

ITEMS Mark up revenue mark up expense gross profit provisions and B/Debts Net Mark up Income Non Mark up Return Commission & Brokerage Dividends/Exchange and Others Total Non Mark up Income Total Income Non Mark Up Expense

Rs in Millions 2007 2008 11468 11385 6347 5476 5121 5909 1263 746 3858 5163 1097 1818 2915 6773 2008 1514 3522 8686

2009 9269 1931 7338 564 6773 2142 2803 4945 11718

Common size (%) 2007 2008 2009 100 100 100 55.35 48.09 20.83 44.65 51.9 79.89 11.02 6.55 6.08 33.64 45.34 73.07 9.57 15.85 25.42 59 17.63 13.3 30.94 76.2 23.1 30.24 53.34 126.42

Administrative Other Provision and Charges Total non mark up Expenses Profit Before Extraordinary Items Extraordinary Items Profits before tax Taxation Profit/Loss after tax Share of Minority Interest Accumulated Loss Brought Frd. Adjustment against sh. Capital Appropriation and Transfers Surplus on revaluation of Assets Transfer to Statutory Reserve Accumulated Loss Brought Frd.

4669 632 5301 1472 -7200 -5728 1739 -7467 6 19821 0

5879 51 5930 2756 25 2781 1319 1462 10 27283 25202

6639 556 7197 4521 0 4521 1704 2818 21 722

40.71 5.15 46.22 12.84 62.78 49.95 15.16 65.11 0.06 172.2 0

51.64 0.44 52.08 24.2 0.21 24.44 11.59 12.84 0.09 210.64 221.36

71.62 6 77.64 48.77 48.77 18.38 30.39 0.22 7.78 0

0 2 27283

238 332 722

527 454

0 0.02 237.9

2.1 2.91 16.34

0 5.68 4.9