INTERNSHIP REPORT ON

UNITEDS BANK LIMITED

Internship Report submitted to the Faculty of Master of Business Administration in Partial Fulfillment of
the Requirements for the Degree of Master of business Administration.

Program & Session

MBA (Finance)

UNIVERSITY OF GUJRAT
Date of Submission
Name of Program Coordinator ___________________
Signature of Program

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DEDICATION:

I dedicate this work of mine to my Teachers, My Parents and

to all My Friends, who truly help and guide me in completing
this project.

Preface:
With the changing world scenario, the need for effective and efficient managers has increased manifold. The
organizations require managers with analytical and problem solving abilities enabling them to exploit the
opportunities presented. Today, the most important pre-requisite for managers is to have well-developed

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communication skills so that they not only are able to communicate within the organizations but also with the
groups outside the organization, customers, suppliers, government and the community.
The development of these skills not only requires strong theoretical knowledge but also a practical experience.
Although the six week internship program has not fully developed these abilities but it has at least given me a
feel of the market. It has, to some extent, enabled me to see the relevance and applicability of various tools and
theories of management. Moreover, this training has created an awareness of the various career opportunities
available in the market as well as the tough competition we, the students of business administration, have to
face in securing jobs.
This report thus represents in a handy and systematic manner, the details of my internship program at UBL. I
have tried to write this report using the most accurate and up-todate information and hope that it will give the
reader a brief and meaningful idea about the organization.

Acknowledgment:
By the Grace of Almighty, the most Merciful, the most Beneficial, I'm today submitting my internship report, at the
end of my first pragmatic experience and I'm glad to have it with UBL, where you come first, only if you're the
customer. Thirst of learning is inside you, and whatever the environment, if you're willing to learn, you do. At
UBL, I had a new, challenging, yet a perfect environment to learn. My parents' prayers and their teachings were
always with me and hereby I will like to take this opportunity to show my gratitude to all those who made my
internship an adventurous outwit.
Here I am, from more professional and rather corporate environment of UBL main branch Lala Musa. I never
knew what it all going to be. As I enter the branch, it took me a minute to realize that the person sitting in the half
fortified walls is the manager. Maybe I was expecting him in a glass sheeted room. At a glance, I grasped the

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interesting personality of the manager and today at the end of my internship; hes one of the persons Ill always
remember. Sir whatever I learnt from you is always going to be respected, no matter whatever business field I
choose. Those tips are always in my memory bag.
Despite of the most hectic schedule, Sir Ghulam Abbas helped me so much. I'm really grateful to you sir for
clarifying my concepts and making me learn from your experience. Whatever I learnt from you will definitely help
me in my upcoming study and the professional life ahead. Thank you so much for being so co-operative and so
helpful every time.
In the end, I'll like to thank all my other colleagues, Mr Mian Ijaz Ahmad, Mr. M.Saleem. and all my other fellow
internees, here and in LalaMusa branch, for their unconditional support and help in making me learn in a good
environment.

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TABLE OF CONTENTS
TITLE PAGE
Dedication
Preface
2. Acknowledgement
3. Table of contents
4.Executive summery of the internship
5.1 Introduction

Purpose........................................................................................................10
The purpose to do the internship report...................................................10
Scope........................................................................................................... 11
Objectives....................................................................................................11
5.2OVERVIEW OF THE ORGANIZATION....................................................11
5.2.1BRIEF HISTORY...................................................................................13
5.2.2NATURE OF THE ORGANIZATION.........................13
5.2.4PRODUCT/SERVICE LINES................................................................15
(1) ADVANCES.............................................................................................15
UBL Drive.....................................................................................................15
2.1- CURRENT ACCOUNT...........................................................................16
2.2 - SAVING ACCOUNT..............................................................................16
2.3 - FIXED OR TERM DEPOSITS...............................................................17
(3) REMITTANCE.....17

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(4)MISCELLANEOUS.17
UBL Wallet VISA Launch.............................................................................18
4.3 - ONLINE BANKING...............................................................................19
4.4 - ATM......................................................................................................20
PEST analysis:............................................................................................20
Political factors............................................................................. 21
ECONOMIC factors........................................................................21
SOCIAL-Cultural factors................................................................21
TECHNOLOGICAL factors..............................................................22
5.2.6 Contribution of an organization towordeconomic development..22
5.3.1Organizational Hierarchy Chart..........................................................23
Management Hierarchy..............................................................................23
Hierarchy
5.3.2Number of Employees........................................................................23
5.3.3MAIN OFFICES....................................................................................24
HEAD OFFICE..............................................................................................24
REGIONAL HEAD QUARTERS...................................................................24
ORGANIZATIOAL STRUCTURE AT HEAD OFFICE LEVEL.......................25
5.3.4...........INTRODUCTION

OF

DERPARTMENT

25
Consumer Banking.....................................................................................25
Human Resource Department....................................................................25
Leaves Prior to Retirement (LPR)..............................................................26
Finance Department....................................................................................26
Marketing Department................................................................................26

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Information Technology Department.........................................................26

Audit and Inspection...................................................................................26
Agricultural Loans......................................................................................27
Treasury & Capital Markets........................................................................27
Corporate Banking......................................................................................27
Investment Group.......................................................................................28
Commercial Banking..................................................................................28
5.3.5 ...COMMENTS ON THE ORGANIZATONAL STRUCTURE...............29
5.4Internee Work.........................................................................................29
5.4.1 Introduction of Branch.........................................................29
5.4.2 Detail of Supervisor.............................................................30
5.4.3 Weekly time table...............................................................30
Working activities during Internship.........................................................31
1st Week........................................................................................ 31
2nd Week....................................................................................... 35
3rd Week....................................................................................... 36
4th Week....................................................................................... 38
5th Week....................................................................................... 40
6th Week....................................................................................... 41
5.4.4 Departments in United Bank Ltd LalaMusa branch:........................42
5.4.6 Summary of the learning...................................................................45
5.4.6.1....................................................... Skills and Qualifications

45

5.4.6.2......................................... Responsibilities during Internship

46

5.4.6.3............................................. Influence on my Future Career

47

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5.4.6.4 Internship Activities are correlated with Classroom Knowledge

6.

CONCLUSION OF THE REPORT........................................................47

6.2General observations about the sector................................................48

STRENGTH..................................................................................................48
WEAKNESSES.............................................................................................49
OPPORTUNITIES.........................................................................................50
THREATS.....................................................................................................51
7.RECOMMENDATIONS..............................................................................51
8.REFFERENCE55
ANNEXURE A...........................................................................................57
HIERARCHAL STRUCTURE OF UBL AT....................................................57
HEAD OFFICE LEVEL.................................................................................57
HIERARCHAL STRUCTURE OF UBL AT BRANCH LEVEL.......................58

EXECUTIVE SUMMARY:
The banking sector in Pakistan comprises of the following types:

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State Bank of Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving Banks, Cooperative Banks,
Specialized Credit Institutions. The S.B.P. is the Central Bank if the country and was established on 1 st July,
1948.
On November 7th 1959 United Bank Limited appeared on the banking horizon in Pakistan and started
operations with its first branch namely McLeod Road now I.I Chundrigar Road at Karachi. Today UBL has 1056
Domestic and 15 Overseas Branches.
UBL was nationalized in 1973 but it is privatized in 2002 as Govt. handed over the management of UBL, the
third largest party of the country, to the successful bidder -Consortium of Abu Dhabi Group (UAE) & Best way
Holding Limited (UK) as they have purchased 51% shares and have elected H.H.Shaikh Nahayan al Mubarik
as Chairman UBL. On May 18th 2004 Mr. Atif Bokhari was appointed as anew CEO of UBL.
In Deposits department actual relationship is started with the bank , that relationship is in the form of deposits
or the accounts that are opened in the bank. At UBL, customers can deposit in the form of current, saving, call,
term and fixed deposits. Main difference between current and saving is of the profit that is provided only on
saving account to the customer. Preparation of LC on behalf of importer for the exporters and its bank is the
main activity that is perform in the department.
With their step in the field of customer financing like house and car financing and their services of Hamah
Rupee Traveler check, UBL Wallet (ATM card) and their online system of UBL-ONLINE it has been viewed that
they will make tremendous achievement in the days to come. In my view UBL has faced some hard time but
after its privatization and its response to the changes in sector they will achieve what their ultimate goal is.

PART-1

INTRODUCTION, OVERVIEW OF ORGANIZATION AND ORGANIZATION: STRUCTURE:

5.1 INTRODUCTION:

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For the students of the Master of Business Administration at University of Gujrat there is essential to submit the
internship report. It is first chapter of our report which tells the purpose of the study, scope and objectives. I did
my internship requirement in United Bank branch Tanda. The experience to work in that bank was very good. I
try my best to expand my knowledge and put my study experience in the banking field. Although time was to
short but I try my best to learn up to the standard.

VISION STATEMENT:
To provide quality services to its customers through adoption of best practices and full
exploitation of I.T advancement, culminating at a leading position amongst its peer banks

UBL is "A World Class Bank Where You Come First"

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MISSION STATEMENT:

"UBL Bank's team of committed professionals is dedicated to maintaining long term customer
relationships through outstanding service and convenience."

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Purpose:
The purpose to do the internship report was to explore the learning of my practical field. The main purposes
are:

To know the banking operations.

To improve the report writing skills.
To gain the experience that will be helpful for me in the future.
To apply the best methodology procedure.
To know what sort of changes IT brings in managerial activities.

Scope:
As an internee in United Bank Ltd. the main focus of my study research was on general banking procedures in
one of the branches of UBL. These operations include remittances, deposits, advances and foreign exchange.
Similarly different aspects of overall of UBL are also covered in this report. So this study from the relevant
department will help me in my practical and professional life.
Objectives:
The object of this report is to know the maximum working of the bank which includes:

To objectively observe the operations of United Bank of Ltd.

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5.2

To make recommendations or implementation plans for the improvement of the Operations of the United

Bank.
To know who to deal with the customers.
To know that who the companies works in the competitive environment.
To learn the changing environment.
To gain the knowledge this will be helpful for me in the professional field.
To give the banking services to every individuals.
To understand the customers needs and wants.
To convince the people for more relationship.
To run the business in the effective way and lower its cost.
To create and manage the value in customers mind.
OVERVIEW OF THE ORGANIZATION:

United bank was established in June 1959 and the company was registered on July 24, 1959. United Bank
Limited started the operations on 7 November 1959 with its first branch namely McLeod Road now I.I
Chundrigar Road at Karachi. On 9th November 1959 the Gazette of Pakistan notified and included UBL in its list
of scheduled hanks operating in Pakistan.
Some Key information about the UBL
Date Established

November 7, 1959

President & CEO

Mr.Atif R. Bokhari

Branches

1079 domestic, 17 overseas branches, across the nation at 350+

online branches

Employees

10,000 Employees

Representative Office

Tehran

Associated Company

Oman United Exchange Company,

Off shore Banking Unit

Export Processing Zone, EPZ Branch. Karachi, Pakistan

Head Office

State Life insurance Corp. Building # 1 I.I.Chundrigar Road, Karachi,

Pakistan

Branches in Overseas:
United States of America
Qatar
UAE
United Kingdom

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Muscat

 Bahrain
Republic of Yemen
Zurich
Off Shore banking Unit

5.2.1

BRIEF HISTORY:

United bank was established in June 1959 and the company was registered on July 24, 1959. United Bank
Limited started the operations on 7 November 1959 with its first branch namely McLeod Road now I.I
Chundrigar Road at Karachi. On 9th November 1959 the Gazette of Pakistan notified and included UBL in its list
of scheduled banks operating in Pakistan. Today UBL has 1079 Domestic and 17 Overseas Branches.
The Bank continued its operations as private banking company until 31st December 1973 when it was
nationalized along with other banks operating in the country and other two Banks namely Pak Bank of former
East Pakistan and Commerce Bank Limited were merged with UBL.On October 19th 2002, biggest event
occurred in the history of UBL, when it was privatized. The government handed over the management of United
Bank Limited, the third largest bank of the country, to the successful bidder - Consortium Of Abu Dhabi Group
(UAE) & Best way Holding Limited (UK). Privatization Minister Altaf M. Saleem and Best way Holding, Sheikh
Nahayan Mubarak Al Nahayan signed the sale agreement for the transfer of 51% shares at a ceremony. This
event was declared as a "New Journey for UBL".
On May 18th 2004, Mr. Atif Bokhari took over the charge as new Chief Executive Officer of United Bank Ltd from
Amar Zafar Khan, who served UBL for more than seven years. In the view of highly impressive growth and
development achieved during its 46 years of experience, UBL has come to be accepted as one of the most
progressive and dynamic components of the banking industry in Pakistan.
5.2.2

NATURE OF THE ORGANIZATION:

United Bank Limited is one of the largest commercial bank in the country. The nature of the organization is
public service-oriented. In the view of highly impressive growth and development achieved during its 46 years of
experience, UBL has come to be accepted as one of the most progressive and dynamic components of the
banking industry in Pakistan, A Bank, like the society it serves should be dynamic as banking is about people
customers with their needs and opportunities and staff with skills, experience and resources.

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Reward, Honors of UBL

The Deputy Chairman of the UBL is Sir Mohammad Anwar Pervaiz (OBE) who is the leading role of Best way
Group. This group has started its business in England and emerges in the top ten large business entities of
England. This group recently installed the Cement Plant of Pakistan in Tehsil Chowk Saidan Shah District
Chakwal.
Sir Mohammad Anwar Pervaiz got the following Awards in the owner of his business achievements:
Order of British Empire (OBE)

(1992) British Award

Knight

(1999) From British Queen Elizabeth

Hilal-e-Pakistan

(2000)

Mir Khalil ur Rehman Husn-e-Karkardgi Award

(2000)

Best Businessman Of the Year (2001) Pakistan

Life Time Achievement Award
5.2.4

(2003)

PRODUCT/SERVICE LINES:

The bank provides its customer various product lines: to cater their need of investments and other social or
business requirements. UBL offer the following product lines in term of
ADVANCE
DEPOSITS
REMITTANCES
MISCELLANEOUS
(1) ADVANCES:
"The lending function of the banking for the production purposes is called Advances".
In banking sector advance is the promise that carries the repayment of the original amount plus an interest on
the principal amount, extended as advance. The credit/advance is given on the base of the confidence/trust and
on the belief that the customer will be able and willing to pay on the demand or at some future time. URL is
expanding its Advances product portfolio to serve public financing needs better.

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UBL Drive:
UBL Drive is not just a car loan; it's a financing facility. UBL Drive is a unique auto-financing product, which
offers features, options and flexibility unmatched by any other bank.
UBL Drive allows customers to drive away in their own car by making a down payment of just 10% and to top
that with low monthly installment. UBL Drive offers the option to pay-off loan amount anytime after the first year
of financing without incurring any extra charges (different financing rates will apply for this option).

(2) DEPOSITS:
Deposits act as a backbone of bank. It is the lifeblood of every bank. These deposits are source of generating
incomes for the bank and for the general public to meet the financial needs. 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 type of deposits.
2.1- CURRENT ACCOUNT:
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.
2.2 - SAVING ACCOUNT:
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

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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.
UBL offers PLS Savings Account that can be opened with an initial deposit of Rs.10, 000. The share of profit is
credited half-yearly to the PLS Saving accounts and is calculated on monthly balance. Depositors can withdraw
their savings by presenting cheques at the particular branch of UBL or from any online UBL branch anywhere in
Pakistan during banking hours.
2.3 - FIXED OR TERM DEPOSITS:
Fixed or Term 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.
(3) REMITTANCE:
Transfer of money or equivalent to money from one branch to another branch of the same bank is called
remittance. Now it has become an easier and safer method both for the client and banker to transfer their money
from one branch to another within the city or outside City. In case of remittances normally two banks are
involved, are as under:
Originating bank branch
Responding bank branch
3.1 - MODE OF REMITTANCES:
United Bank Limited, uses following types for transfers of money:
1. Demand Draft (DO)
2. Pay Order (PO)
3. Mail Transfer (MT)
4. Telegraphic Transfer (TT)
Demand Draft (DD):
A bank draft is an order instrument issued for payment of a certain sum of money to a certain person, 'there are
three parties involved:
Drawer: Issuing Bank,
Drawee: The bank, which the draft is drawn.
Payee: The name of person to whom the payment is to be made.
(4) MISCELLANEOUS:

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4.1 - UBL CREDIT CARD:

UBL Credit Cards, Pakistan's 1st Chip Credit Card, which guarantees customers both enjoyment and high value.
It assures customers global acceptability in more than 22 million establishments worldwide in 130 countries and
in more than 12, 000 outlets within Pakistan.
This unique high tech CHIP guarantees customers security while conducting transactions within Pakistan and
around the world. CHIP based credit cards have proven to be the most secure way of conducting credit card
transactions globally. UBL Credit Card offers the following facilities 24 hours a day, 7 days a week.
Complete access to customer card account online including card transactions and billing statements
Chip Rewards Information.
Pay UBL Card Bills.

4.2 -UBL WALLET:

Moreover, UBL Wallet is now part of the 1 Link and VISA networks. These allow customers to use their UBL
Wallet VISA across Pakistan at more than 925 ATMs displaying the 1 Link logo and at more than 900,000 ATMs
in 150 countries. It is also acceptable on the MNET network of ATMs in Pakistan. UBL Wallet VISA Card will also
be acceptable on all local VISA certified machines displaying the VISA Plus sign.
UBL Wallet VISA Launch:
After the success of 1st UBL Cards Electronic Festival, UBL announces with immense pleasure the 2nd UBL
Cards Electronic Festival on 3rd and 4th June 2006 at Pearl Continental Hotel, Karachi. A large cross-section of
respected brands from the electronic industry will come together under one roof to offer amazing discounts,
deals & free offerings to valued credit card holders.
The debit card facility is being offered in association with the Oryx and VISA networks, which mean that
customer, can use his UBL Wallet VISA to conduct a debit transaction at any outlet in Pakistan that displays the
ORIX or VISA logos. The Oryx network offers connectivity at more than 5,000 outlets across the country,
whereas customers UBL Wallet VISA card is also acceptable at 22 million VISA merchant locations, local and
international. UBL 200 plus ATMs are now VISA certified and are geared up to accept all International VISA
Debit and Credit cards. Now UBL Credit card holders can do cash advances through our UBL ATMs as well.

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Facilities:
UBL Wallet VISA gives facility of having up to 9 supplementary cards issued against one primary card. All
supplementary cardholders will be able to conduct ATM/Debit transactions and will share the transaction
limits of the primary card account.
UBL Wallet allows three kinds of instant funds transfers through UBL ATMs from customer UBL account:

Into any of customer UBL accounts

Into any other UBLs account.

Into any other participating 1 Link Bank (through the new UBL Inter Bank Funds Transfer facility)

Enquire about the availability of funds or simply get a printout of customer account balance.
4.3 - ONLINE BANKING:
With UBL's state of the online banking, customers can access their account from more than 350 branches
located in 71 cities across Pakistan. Now UBL enables customers to do all the following transactions in minutes
through designated online branches. Salient features of online banking are:
Cash Deposit
Cheque Encashment
Stop Payment
Account Statement
4.4 ATM:
ATM is the abbreviation of Automated teller machine. ATM is the modern technology screen touch system. ATM
functions on a PIN (Personal Identification Number) based system, ensuring complete security of customer
transactions.

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UNIQUE FEATURES:
Your UBL PSO Auto Credit Card offers a host of unique features and exceptional benefits which makes it the
most rewarding card in town. It offers unparalleled spending convenience as well as outstanding privileges and
rewards. If fuel expenditure and car maintenance continue to burden your budget then UBL PSO Auto Credit
Card is the perfect solution for you.

5.2.5

SMS Alerts Service

Low Balance Transfer Rate
24 Hour Customer Service
Cash Advance
Supplementary Cards
Buy Today, Pay Later
Travel Accident Insurance
PEST ANALYSIS:

PEST analysis:
The factors that are beyond the controls of the Banks are called the PEST analysis. These are the macro
environment factors that externally effects the organization that why they are also called the external factors.
These are the political, economic, social and the technology factors. These are discussed below:
Political factors:

High taxation on banking industry.

Political Interference and harassment.
Governments policy on the economy
Political stability
Change in complexion and composition of
Legislatures

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Privatization policy and deregulation.

ECONOMIC factors:

Labor costs
Government Spending
Business cycle stage (e.g. prosperity, recession, recovery)
Exchange Rate Mechanism
Inflation rate
Interest rates
|Government intervention in the free market
Restrictions on Imports
Efficiency of financial markets
Economic growth rate
Infrastructure quality
Skill level of workforce

SOCIAL-Cultural factors:

Life Style Changes

Adequate empowerment.
Education
Social culture (gender roles, etc.)
Demographics
Joint living and nuclear families
Different Age Groups
Entrepreneurial spirit
Class structure
Reach of the media to the population

TECHNOLOGICAL factors:

5.2.6

Inadequate computer facilities.

Technology's impact on product offering
Lack of networking facilities
ATM network
Impact on cost structure

CONTRIBUTION OF ORGANIZATION TOWARD ECONOMIC DEVELOPMENT:

Banks play an important role in the economic development of the country. If our banking system does not meet
the economic requirement then how can play a vital role in our development?
According to Professor Berton:
"Banks are the guardian & distributor of money ".

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In this study, the primary objective is to analyze the financial position of the bank. Fundamental analysis of a
business involves analyzing its financial statements and health, its management and competitive advantages,
and its competitors and markets.
5.3

ORGANIZATIONAL STRUCTURE:

The organizational structure of the organization is conventional, in 1986; the organizational structure of domestic
operations of the bank was reformed and decentralized on the basis of provinces.
5.3.1

Organizational Hierarchy Chart:

Management Hierarchy
President

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Assistant Vice President

Officer Grade 1

Officer Grade 2

Officer Grade 3

(OG 3)

Operational Staff

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(SEVP)

(EVP)

(SVP)

(VP)

(AVP)

(OG 1)

(OG 2)

5.3.2

Number of Employees:

The numbers of employees working in UBL are Eight Thousand two hundred and fifty four (8254). The staff is
quite efficient and qualified in its respective field. Most of them are professional degree holders.

5.3.3

President

01

SEVP

EVP

13

SVP

36

VP

73

AVP

248

OG-1

906

OG-1I

2232

OG-111

4739

06

MAIN OFFICES:

HEAD OFFICE:
State Life Insurance Corp.
Building # 1, I.I.Chundrigar Road,
Karachi, Pakistan.
REGIONAL HEAD QUARTERS:
The new segmentation of UBL branches on the basis of regions can be looked from the following:
Karachi
Hyderabad
Multan
Faisalabad
Sialkot
Islamabad
Peshawar
Quetta
Azad Kashmir

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ORGANIZATIOAL STRUCTURE AT HEAD OFFICE LEVEL:

UBL is one of the largest commercial bank. Organizational structure of UBL is comprised of different
departments which are following and the Organ gram of UBL at head office level is shown in the ANNEXURE
"A" and at branch level is shown in the ANNEXURE "B"
5.3.4

INTRODUCTION OF ALL DEPARTMENTS AT HEAD OFFICE LEVEL:

Consumer Banking:
The consumer bank is divided on business lines based on product offerings. The product teams who
encapsulate the futuristic features, the marketing team who has set a new trend in the banking industry through
catchy taglines in Urdu and the sales teams, which have broken all sales records, lead these. Business is further
supported by dedicated cross-functional teams comprising of credit, operations, collections and finance. The
consumer bank's portfolio includes;
UBL's visa credit card, which has the distinction of being the first, EMV chip-enabled card in South Asia.
UBL Address & UBL drive the home and auto loan products respectively, which captured the bulk of the
market share within the first few months of their launch.
UBL cash line (running finance) and UBL business line (business finance) are the flexible credit line
facilities with competitive mark ups.
Human Resource Department:
This Department does all the activities related to Human Resources (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, Union-Management
Relations etc.
Leaves Prior to Retirement (LPR):
These are the leaves at the end of the job period (near to retirement) with pay. If some employee has the leaves
in credit then he or she can avail that leaves at the end of his or her job. But maximum limit of LPR is one year.
And after these leaves he or she will be automatically retired.

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Finance Department:
The primary responsibility of Finance department is to provide reliable, consistent and timely information to
management, shareholders, regulators and internal business groups to help them take appropriate decisions for
improved performance of the bank.
Marketing Department:
Marketing department cover the areas related to the products and services provided to the customer and other
promotional policies.
Information Technology Department:
Information Technology (IT) Department is related with all computer activities like it manage the Central Data
Base (CDB) which is placed in Karachi Head Office of UBL, where all the daily transactions in all the branches of
the country are up-dated on daily basis. The area of major focus for IT Department is the building of
infrastructure for the launch of the consumer business.
Audit and Inspection:
The responsibility of this department is to audit and inspect the operations of the branches. This department
checks whether the operations are compliance by the branches in a right way or not. The CCD (Control and
Compliance Department) comes under this department. Audit has a support role to play by helping line
management in achieving their business goals by ensuring that the operational risks are properly controlled and
kept at minimum acceptable level.
Agricultural Loans:
UBL's agricultural loans on easy terms and conditions to small-scale land owning fanners boost the country's
economy and yield greener harvests. UBL enables farmers to buy good quality seeds, fertilizers, pesticides and
agricultural implements.
Treasury & Capital Markets:
This department is interacting with the market and dealing with Core Treasury Products in the money market
and foreign exchange. The main purpose of the treasury department of any company is to maintain the liquidity
for that company. It is the case with Banking Industry as well. The treasury departments have to manage the
buffer stock (in terms of cash) of the bank and they have to maintain the liquidity for giving Advances to their
customers.
Treasury and Capital Markets (T&CM) contributed to over 65% of UBL total returns. This was due to
Government Bond Trading, Equity Trading, Structured Products/Financial Engineering, Corporate Debt Trading,

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and Double-Count of revenues. Under the new management, the T&CM expedited the launch of Pakistan's first
derivative money market product-the FRA (forward rate agreement) with Quetta Textile Mills Ltd.
Corporate Banking:
The main objective of the Corporate Banking is to look after the special customers who give huge amount of
deposits or take higher amounts of Advances, because a Hub Branch can give the advance more than Rs. 200
million. And the party who needs a loan more than Rs. 200 Million they have to contact to the Corporate Branch
of the UBL.
There are 175 to 200 cases of Advances in the Hub Branch. But in the Corporate Branch there are hardly 15 to
20 cases of Advances due to so much high amount of Advances. And these types of customers are called
corporate customers. These types of customers need special care and services as well.
Investment Group:
This department supports the Corporate Department. When a company wants to install a new project and
require the finance from the bank then it is the responsibility of Investment Department to analyze the targets of
the project and success or failure of the project. If it is feasible to loan that party then they pass the loan
otherwise not. This is called the Project Finance. UBL's Investment Banking Group continues its leadership
position in providing innovative and unique financial solution to its clients by anticipating their changing
requirements and developing new products and services. UBL (Investment Banking Group) IBG offers full
spectrum of services.
Commercial Banking:
Banking Companies Ordinance 1962 defines the term banking as following "Accepting for the purpose of lending
or investment of deposits of money from the public repayable on demand or otherwise and withdrawals by
cheque, draft, order or otherwise."
The commercial banking has been developed into an important sector economy. UBL is a service-oriented
organization, which performs numerous functions. The functions, which a commercial bank performs, can be
divided into following categories.
Basic Functions
Agency Services Functions
General Utility Functions
The commercial bank has 1000 plus branches which are used as distribution outlets for different business line.
UBL also participated in commodity financing and continued its focus on Agriculture loans. Commercial banks
have been the most effective mobilizes of savings and have been providing short-term requirements of working
capitals to trade, commerce and industry.

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5.3.5

COMMENTS ON THE ORGANIZATONAL STRUCTURE:

Conventional organizational structure is being followed in the organization to cater the business needs. Although
this structure takes more time in decision-making compared with the flatly structured organizational setup.
However, due to maximum availability of higher-level management, decisions are made fairly fast and timely.

PART-11
INTERNEES JOB
5.4 Internee Work:
History of Bank:
The idea of banks began as long ago as 1,800 BC in Babylon. In those days moneylenders made loans to
people. In Greece and Rome banks made loans and accepted deposits. They also changed money. (In the Bible
Jesus famously drove the money changers out of the temple in Jerusalem).
However with the collapse of the Roman Empire trade slumped and banks temporarily vanished. However
banking began to revive again in the 12th and 13th centuries in the Italian towns of Florence and Genoa.
In the 16th century a German family called the Fuggers from Augsburg became very important bankers.
5.4.1 Introduction of Branch
I have done my internship in United Bank Tanda Branch. It is located on the Main road Tanda. I start my
internship from the date 10th july, 2013, and the completion date of my internship is 19th august, 2013.
This is the Branch hierarchy of United Bank Tanda Branch

Branch manager

Operational Manager

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Advancing
Incharge

Peon

General Banking
Officer

Teller

5.4.2 Detail of Supervisor:

Ghulam Abbas is my supervisor who is the Operational Manager of the United Bank. He is very nice person.
5.4.3 Weekly time table:
Weeks

Date

Working Activities

Supervisor

1st Week

10-july-2013 to

Account Opening, types

Branch Manager Mr.

16-july-2013

of account

Ghulam abbas

16-july-2013 to

Types of Account

2nd Week

Ghulam abbas

22-july-2013
3rd Week

4th Week

22-july-2013 to

Deposit, Transfer and

Operational Manager

29-july-2013

Withdrawals

Mr. M Tariq

29-july-2013 to

Remittance Department

Mr. Shabbier Anwar

Clearing Department

Operational Manager

05-aug-2013
5th Week

05-aug-2013-to
12-aug-2013

6th Week

12-aug-2013-to

Mr. Muhammad Tariq

Credit Department

Credit In charge

19-aug-2013

Mr. Ghulam
Muhayiddin

Working activities during Internship:

1st Week:
I spend my 1st week on account opening desk according to the direction of Manager. He gives me the basic
instruction of opening of a new account. Following information is required while opening of a new account:

Name of the person/Title of Account

Signatures
Nature of account

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Type of Account
Category of Account
Currency of Account
Date of birth
National Identity Card
Fathers name
Mothers name
Residence address
Content number
Profession
Next of Kin

Account Opening:
When a person wants to open account in United Bank the bank officer give account opening form to him. All the
requirements are must be filled and in additional form is required that is his income proof. This requirement is
very important for the bank without income proof bank officer not allow him to open account. In this way bank
secure himself from those persons how earn his money from bad ways in other words bank assure that is this
money is black money or not. For example a person is come in bank for opening of a new account officer first of
all demand income proof. He asks him how you earn your money? after this he check his nationality and
demand a national identity card.
Bank officer check the validity of the ID card, is this card is valid or not. If ID card is valid then further proceed
other vise not. If ID card is not valid then his tell him that first you renew the ID card and then come in Bank.
Bank officer take his ID card for scanning.
After verifications bank officer fill up the requirements of the form with the help of the information provided by the
customer that are mention in above. After completing the requirements of the form bank officer assign an
account number. After assigning account number he uploads the information of account holder on the database
of the bank. After this he asks to the customer that deposit amount in his account. For this purpose he fills the
deposit slip and gives it to the cash counter.
Here are a few types of accounts that I practice during my internship period.
1.
2.
3.
4.
5.
6.
7.
8.

Current Account
PLS Saving Account
Basic Banking Account
Business Account
United Rising Star Account
Foreign currency account
Term Deposits
PLS Term Deposit

TYPES OF ACCOUNT:

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1. INDIVIDUAL ACCOUNT:
in this account a singal customer operates the account. the banker will run the account according to the rules,
but if the customer give the special instruction the bank will have to fellow it.
2. JOINT ACCOUNT:
In this type of account two are more than two person will open the account. The account will be operated by
one account holder in case of (either of the survival). If the instruction are not given, all the account holder will
have to sign the cheque.

Current Account:
Currents account opening facility is offer for the customers. Customers include individual, institutions,
commercial customers. First time cheque book and ATM issued to the account holder is free. If first cheque book
leaves are finished then customer apply for second cheque book then bank charge 5 rupee per leave of the
cheque book.
In current account bank not allow any profit is given to the account holder and no deduction is made by the
bank. Only account maintenance charges are deducted if balance is lower than the 25000 rupee. Account
maintenance charges are 50 rupee per month until the account is not maintained.
Minimum amount is required for the current account is 500 rupee. Account holders can withdrawal and deposit
money as he likes. He can withdrawal money many times in a day as he needs.
Current account can be opened by a single person and can be open by the two persons joint account. In case
of joint account cheque is not accepted without the signature of both persons.
The account holder who wants to close his bank account he has to return his cheque book or present his
cheque book to the bank officer after withdrawal his amount from the account.
Eligibility of Opening of Current Account:
All Pakistani Residents/Non-Residents (Single or Joint account), Companies/Firms etc can open this account.
Any Foreign National Individuals (Single or Joint account) having valid Resident Pakistan ID card Visa/Work
Permit can open this account.
Requirement of opening of Account:

Properly filled account opening form

Original National Identity Card/ Passport of account holder
Attested photocopy of National Identity Card/ Passport of account holder

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Proof of his income. In case of student university/college card, in case of job holder person attested copy
of his job appointment letter and in case of business account his firms pad or his certificate copy with
original certificate.

PLS Saving Account:

This is a type of saving account. In these types of accounts you can withdrawal amount and deposit amount and
in addition bank give profit to the account holder. Profit rate is 5% per annual. Bank deducts charges. Profit rate
is varies from time to time. Profit rate is applied to the average amount in a month that the customer have in his
account. Minimum amount is required for opening of saving account is 500 rupee.
Zakat will be applying on the saving account. It is the option for the customers either he wish to deduct Zakat
automatically by the bank of not. Some customers pay Zakat himself. Tax is also applied on the saving account
according to the rules and regulations of the ABL.
Saving account can be opened by a single person and can be open by the two persons joint account. In case
of joint account cheque is not accepted without the signature of both persons.
The account holder who wants to close his bank account he has to return his cheque book or present his
cheque book to the bank officer after withdrawal his amount from the account.
Eligibility of Opening of Current Account:
All Pakistani Residents/Non-Residents (Single or Joint account), Companies/Firms etc can open this account.
Any Foreign National Individuals (Single or Joint account) having valid Resident Pakistan ID card Visa/Work
Permit can open this account.
Requirement of opening of Account:

Properly filled account opening form

Original National Identity Card/ Passport of account holder
Attested photocopy of National Identity Card/ Passport of account holder
Proof of his income. In case of student university/college card, in case of job holder person attested copy
of his job appointment letter and in case of business account his firms pad or his certificate copy with
original certificate.

2nd Week:
Foreign Currency Account:
United bank provide facility for its customers opening of account in foreign currency. You can open foreign
currency account in current account, saving account, term deposit account. Allied bank open foreign currency
accounts in US Dollar, Euro, British Pound and Japanese Yen.
Term Deposits:

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United Bank offer Term Deposit account. It gives high rate of return on different tenures. Term deposits time
periods are 1 month, 3month, 6month and 12 month. Investment can be made with the minimum of Rs. 25,000.
These term deposits are only payable on maturity. Any individual and any institute can purchase these term
deposits.
PLS Term Deposits:
PLS term deposits scheme which gives a high rate of return on different time periods. PLS Term deposits time
periods are 1 month, 3month, 6month and 1 year, 2 years, 3 years, 4 years and 5 years. These PLS term
deposits are payable on maturity. PLS term deposits are can be payable before maturity according to the
requirements of the customers. If the customer wants to take his money back then bank gives him back. In this
case profit rate that are given to him is low as compare to the standards profit rates on his instrument holding
duration. Any individual and any institute can purchase these term deposits.

3rd Week:
Deposit, Transfer and Withdrawals:
In this department I learn how to transfer cheques from one account to the other account, how to deposit
cheques to their account, how to issue cheque books and ATM cards, how to fill the cheques.
Cheque books are issued by the officer. When new cheque books are send to the branch from the head office
he list down these cheque books on the register of cheque book. He makes record of current cheque books on
the current books side and saving cheque books on the saving books side. When cheque books are received
the bank call to the customer. Customers come in the bank and receive his cheque book. Account officer take
receiving on the cheque books register. After verification he gives permission to the customer that now he can
go.
ATM cards are issued by the concern of officer. When new ATM cards are send to the branch from the head
office he list down these ATM cards on the register of ATM cards register. When ATM cards are received the
bank call to the customer. Customers come in the bank and receive his ATM card. Officer take receiving on the
ATM cards register. After verification he gives permission to the customer that now he can go.
When customer comes for receiving his cheque book he takes signature of the customer on the first
acknowledgement page and also on the register. When customer gives back the acknowledgment slip to the
officer he verifies the signature with the help of Specimen Signature Card. Specimen Signature Card is scan at
the time of opening of new account.
In bank daily some parties come and deposit their cheques to his own account. These cheques can be the same
branch cheques or may be the same bank but other branches cheques. When a person or parties deposit his
cheque in the branch he must fill the credit deposit slip. The following information must be provided or filled on

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the credit deposit slip: Date, Title of the account, Phone number, Account Number, Amount in figure, Amount in
words and in last the signatures of the depositors.
When person fill the requirement of the deposit slip then he deposit the cheque with the deposit slip. After
receiving the cheque we check that either slip is filled correct or not. When we receive the cheque then we cross
stamp on the cheque and also on the deposit slip. Authorized person signature on the deposit slip. One part of
the slip is give back to the customer and one is hold for the record of the bank.
If account is current account, business account and basic banking account then current deposit slip is filled and
if the account is saving account, salary person account then PLS saving deposit slip is filled.
Another thing is that transfer of amount through cheques. This process is done with the help of deposit slips.
When one party or person want to transfer his amount from account to account then firstly fill the cheque of that
account in which the amount is transfer to other account then fill the deposit slip. Current deposit slip is filled if
the account in which the amount is going to transfer and PLS saving slip is filled if the account is saving account.
Slip is filled by the name of the person in which the amount is going to transfer. The account number of the
person is writing down and then date and after this amount is writes in the boxes. In the particular write the
cheque number and branch code from where the cheque book is issued or where the cheque us belongs.
Amount is written in both figure and word. In last the signatures of the depositor is taken.
After receiving the cheque from the customers bank officer signature on the slip and cross stamp marked on the
slip and also on the cheque. After this one left part of the slip is give back to the customer and the right part is
hold for the record of the bank. Bank officer transfer or add amount of cheque through computer system. After
the transaction is done by the computer bank officer print a computerized printing on the back of the deposit slip
through a Flag bed printer.
Flag bed printer is a printer that is used for the checking the cheques and for the printing of transaction on the
back site of the slips and on the vouchers. This flag bed printer is used for the checking of the instrument. This
device read the code of cheque that is written on the end of the cheque. This device is very helpful for the bank.
If the cheque is illegal then this device not read the code written on the cheque.
Pay Order:
Pay order is a bankers cheque to its customer. Pay order is prepared when bank give payments on his own
behalf to the customers. In this branch where I did my internship Pay Order is prepared by the Operational
Manager. Pay order is prepared when bank give payments to the parties for example when the payments of
Wapda, Sui Gas, PTCL are collected. Pay order is also prepared when bank give payments of the bank
expenditures e.g. water expense, AC repair charges, generator repair charges electricity charges and etc.
Demand Draft:

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Demand Draft is also a bankers cheque but this is prepared on the demand/request of the parties or
customers. Demand draft is prepared when customers or parties want to give payments to the other parties.
For example in our branch Yamaha agency has a account when he wants to payment to the other party he come
in the branch and fill the form of Transfer of Funds. In this form the following things are required:

The name of the party where he want to transfer the funds

Branch name in which the funds are going to transfer
Amount in words and figure
Signatures of the customer.

4th Week:
Remittance Department:
One duty of the remittance officer is the clearing cheques posting which are come from the other banks or other
banks branches. He daily in start of the day he posting the clearing cheques. In our bank he also issues the
bank statements on the request of customers. He also performs the duty of salary posting of BHS, Government
teachers and also the salaries of the police.
Online Funds Transfer:
Remittance department officer also transfer funds from one bank to other banks. When a person wants to
transfer amount/funds from one branch to other branch in the same bank he fill the Online Inter-Branch
Transaction slip then deposit the amount on the cash counter. In case of account holder he gives cheque and
mentioned the cheque number on the online slip. One part of the slip is given back to the customer and one part
of the slip is attached with the vouchers.
When a person wants to transfer amount to the other branch he must fill the Online Inter-Branch Transaction
Request slip. In Online Inter-Branch Transaction Request slip he must provide the following information:

Date
Applicants Name
Applicants NIC number
Address
Telephone number
Remote branch name/ code
Cheque number
Remote account title
Remote account number
Amount in figure
Amount in words

After filling the following information he make signature on the slip. With this slip he deposits his amount on the
cash counter. Casher receives the amount and refers this customer to the remittance officer. Remittance officer
transfer these funds to the account that is mentioned on the online slip. On advice page remittance officer hit the

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online drop stamp and write the amount and account number of the remote account. In case of disconnect or
linked down of the remote branch he made an advice to the remote branch and send this advice by post. When
remote branch receive this advice on the next day he enter the amount on the account that is mentioned on the
advice.
Foreign Currency Account:
United bank deal with Euro, Pound, US Dollar and Japanese Yen currency. This bank is also registered branch
with the State Bank of Pakistan. You can open any type of account in foreign currency. In this type of account
counter payments are only in Pak rupee. The limitation of the bank is that he not deals in money exchange.
5th Week:
Clearing Department:
The main function of the clearing department is to collect the cheques from the customers for the clearings
purpose. When customer comes in the branch he fills the slip of his account number. In slip he also mention the
cheque number and bank name of the cheque. After filling the slip he gives it to the officer. Officer cheque all the
requirements of the cheque for example date of the cheque, signature of the person who issue this cheque and
also amount of the cheque both in figure and words. After checking all the requirements of the cheque he hit the
stamp on the slip and cheque. One part of the slip gives back to the customer and one in not. These cheques
are other braches cheques. He collects many cheques in a day.
In evening he arranges the cheques of different cities. Clearing is basically is a two types one is Intercity
clearing and the second is same city or within city clearing. Intercity clearing cheques are those cheques which
send outside of the cities. Same bank cheques are posting on the system and his credit slip and print of
cheques list is put on clearing file. The record of other banks intercity clearing cheque maintained on the intercity
clearing file.
To arrange the payment of cheques these cheques to the clearing houses for the settlement of payments. This
all process is done by NIFT. NIFT is responsible for the management of clearing house facilities in Pakistan. It
provides services of intercity clearing, same day clearing, interbank clearing, cheque book delivery form head
office to the branches, ATM card delivery and etc. The function of NIFT is to collect cheques from his affiliated
bank or members of NIFT banks. After collection of cheques from different bank he distributes these cheques to
the related banks. Those banks which are not the members of NIFT send them OBC. OBC is not treated by
NIFT this is send back to the branch.
There are many banks are the members of NIFT where as some banks are not the member of NIFT. In this case
Operational Manager of our branch prepares the OBC. OBC stands for Outward Bills Collection. The record of
OBC is maintained on the OBC file and the entry is entered on the OBC register. In OBC register we assign the
OBC no to the cheques and enter the name and account number of the parties. After this enter the name of the
city where the cheque is going to present. In addition the Inter Branch Clean Bills Schedule is prepared for this

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purpose. While preparing Inter Branch Clean Bills Schedule we write the date, branch name where cheque is
send, amount, bill number, drawee name and cheque number.
Cheque:
A cheque can be defined as a written order of the customer upon a bank to pay to or to the order of designated
party or to the bearer a specified sum of money on demand. The main characteristics of the cheques are as
follow:
(1)

It is an order of the customer without any condition.

(2)

It is drawn upon a certain bank in writing.

(3)

The banker has always to pay it on demand.

(4)

It is payable to a certain person or to his nominee or to the bearer of the instrument.

Essentials:
The following essentials are taking into considerations:
1.

In writing:

The writer should be in writing. It includes print and cheque is made out on a type writer is valid
2.

Unconditional Order:

The language in writing a cheque should be valid. For example, a cheque is in the following term: Pay X Rs.
25,000/= is a valid cheque. Whereas pay A Rs. 50, 00,000 if you can is not a valid cheque.
3.

Signed by drawee:

The signatures of the drawee on the cheque should be matched with the signatures as these were at the
opening of the account.
4.

Certain sum:

The amount written in words and figures should be matched with one another.
Types of Cheques:
The cheques are two different types.
Open cheques and

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Crossed cheques
(1)

Open Cheques:

These are those cheques which are paid across the counter of the bank. Open cheques may be bearer or order
cheques.
(i)

Bearer Cheques:

If a customer orders to the bank to pay a stated sum of money to the bearer then it is called a bearer cheque.
Any customer who lawfully possesses a bearer cheque is entitled to receive payment of that cheque.
(ii)

Order Cheque:

If a cheque is to the order of a person in whose favour the cheque is drawn, it is called the order cheque. The
order cheque is paid by the bank only when the bank is satisfied about the identity of the payee.
(2)

Crossed Cheques:

The crossed cheque that can be identified easily. There are two parallel lines across the cheque with or without
words. This cheque can not be paid on the counter of the drawee bank. It is deposited in the account of a
person in whose order or favor it is drawn.
Kinds of Crossing:
Formally there are two kinds of crossing.
1.

General Crossing

2.

Special Crssing

1.

General Crossing:

Two parallel transverse lines are drawn on the face of the cheque with or without words.. There are different
words for general crossing.
(i)

Crossing with two parallel lines.

(ii)

Crossing contains the words &Co

1. Special Crossing:

When a cheque bears across its face the name of the banker with or without the words, not negotiable, in this
case the payment is only made to the bank name written on the cheque.

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Objective of Crossings:
The following objectives are obtained from a crossed cheque:
1.

The payment of the cheque can not be paid to the wrongful holder.

2.

It ensures that the payment is made to the concerned receiver.

3.

It elps to prevent any cheating or theft.

6th Week:
Credit Department:
The basic function performs by the bank is to accept deposits from different parties and lend money to the
borrowers against a spread so to be able to get some profit for the depositors and as well as for the bank.
Following are the lending principles:

The purpose of the advances should be lawful and productive. It should be ensured that the bank funds
are not being utilized for other business. The credit limitations by the central bank should not be
dishonored and it should also be ensure. It is always positive for the bank to investment for the short

term requirements.
At the end result every business should be earn some profit. Similarly the banks must get some net
income out of the action of loaning so that the depositors could get their shares as well as the share

holders could earn some benefits for their investments.

Safety Principal means that the lend money will come back with interest. The bank should not invest
money in uncreative or exploratory business. Bank always invest his money on those businesses that

generate profit and give benefit to the bank.

Liquid Principle means that the money which has been lending to the lender should be returned to the

depository financial institution on requirement or as per refund schedule provided by the client.
The proposal should be deal on its merits not on the security. The security should be considered a safety
for the bank in case of unexpected emergency. All the relevant documents of the securities must be

obtained and got evaluation of the property or any other security should he assessing properly.
Its always harmless for the banks to extend the risk in large number of borrowers instead of giving huge
loan to the one person, it is better to obtain different types of securities instead of concentrating on one

security.
It is our responsibility to make sure that no loaning is running counter to national interest. It is also our
obligation to ensure that our lending policy is not against the social circumstances or binding.

Closing of an Account:

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There are several reasons why account holder might need to close the bank

account. The account

holder could be moving to a location that doesn't have a branch or account holder might want to stop an
automatic debit. Whatever the reason, by following these steps, the account holder can close the account.

Instructions:

Step1
Make sure all cheques have cleared the bank account. As soon as the account is closed, the bank gives

the balance of the account.

Step#2
Switch banking information with employers and vendors. Before the closing of the account. Change

information with any vendor who automatically debits the account.

Step#3
call the bank. Before make a trip to the bank, there is a need to call and find out the bank's policies.

There are banks that charge a fee to close an account.

Step#4

physically go into the bank to close the account. Most banks will require two forms of identification.

Step#5
The account holder can transfer the funds into a new account or get the amount in cash.

5.4.4 Departments in United Bank Ltd Tanda branch:

There are following departments are working in this branch:
Deposit, transfer and Withdrawal:
The basic purpose of this department is to maintain the records of accounts. Officer accepts the cheques from
different parties. He also accepts the cheques of those persons who wish to transfer cheques form account to
account that he received from other parties. These cheques are may be Allied Bank cheques and may be other
banks like Bank of Punjab, Askari Bank, National Bank, Dubai Islamic Bank etc.
When he received his own bank cheques he transfer cheque amount from account to account through system
and when he receive the other branches cheques and also other Banks cheques then he send these cheques to
NIFT (National Institutional Facilitation Technology) for clearing.
When clearing has been passed then the officer transfers the amount of cheques that has been passed through
clearing to the account of the party who present his cheque for clearing.
The officer posted entries to the computer. All Allied bank branches are interconnected through online network.
Entries that are posted in one branch can be viewed in the other branch. Voucher system is also use for the
record keeping. Some time data is wrongly posted in the system and record keeper feel of remember after one

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day or after some time than voucher helps them for correction. Voucher is prepared for every transaction for
cash and also for clearing purpose.
Credit department:
The basic function of the advancing department is to give facility of loan to the customers. Advances when a
customer comes in the bank for taking loan advances incharge firstly fulfill the requirement of the bank lending
principals if customers fulfill the requirement of the bank then he is capable for lending of money. Bank give
loans to its customers then receive back his loan with interest.
Clearing department:
The main purpose of clearing department is to collect cheques from his customers. He arranges payments of
the cheques. To arrange the payment of cheques he sent these cheques to the clearing houses for the
settlement of payments. This all process is done by NIFT.
NIFT is responsible for the management of clearing house facilities in Pakistan. It provides services of intercity
clearing, same day clearing, interbank clearing, cheque book delivery form head office to the branches, ATM
card delivery and etc. The function of NIFT is to collect cheques from his affiliated bank or members of NIFT
banks. After collection of cheques from different bank he distributes these cheques to the related banks. Those
banks which are not the members of NIFT send them OBC. OBC is not treated by NIFT this is send by TCS.
Cash department:
Cash department basically perform two functions. One is receive cash and other is payment of cash. Casher
receives cash of those persons who have account in the bank. He also collects utility bills, school fee and etc.
He made payments of cheques that are presented on the cash counter.
Bills department:
There are two types of functions that performed by bill department one is Inward Bills Collection and other is
Outward Bills Collection.
Inward Bills Collection (IBC):
Inward bills are those cheques which are collected locally through post. These cheques are of those banks
which are not the member of NIFT.
Demand Draft:
Demand drafts are refers to the payments on the demand of the holder of draft. It includes DD issue and DD
payable.
Outward Bills Collection:
Clean Bills:
Clean bills are negotiable instruments which are drawn on outstation branches. These bills are sent for collection
of payments on the behalf of the customers.

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Pay Order:
Pay order is issued to other branches or banks for collection of payments on behalf of own his bank. Bank
issues pay order to the parties or customers on his own behalf.
Remittance department:
Remittance department transfer funds from one bank to other banks. When a person want to transfer amount
from one branch to other branch in the same bank he fill the online deposit slip then deposit the amount on the
cash counter. In case of account holder he gives cheque and mentioned the cheque number on the online slip.
One part of the slip is given back to the customer and one part of the slip is attached with the vouchers.
In case when online transaction is drop due to link down of the other remote branch where customer wants to
transfer amount then advice is made and send to the remote branch by post. When remote branch receive the
advice then transfer amount to the account that is mentioned on the advice page.
On the demand of the parties demand draft is made. Demand draft is made on the request of the parties when
he wishes to pay amount to the other parties.
Foreign currency department:
United Bank provides a facility to its customers opening account in foreign currency. It can be opened in US
dollars, Euro, Japanese Yen and British Pound. Foreign currency officer handle the transaction of foreign
currency. He manages the transaction of those customers who made transactions of US dollars, Euro, Japanese
Yen and British Pound.
SAFETY OF TRANSACTIONS:
All transactions for payment of purchase through POS terminal require use of your exclusive ATM PIN known
only to your self a sound and safe security feature.
Balance Enquiry:
The POS Terminal may also be used for Balance Enquiry of accounts linked to the card.
Cash Withdrawals:
Cheque Free Banking shall be made available through POS Terminal installed at dedicated cash counters at
branches manned by a cashier.
Lockers:-

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Specially designed lockers of various sizes to meet the requirements of applicants are available at Ubl
designated branches. The lockers may be operated during the banking hours of the branch.
ELIGBILITY:
Only Account holders of Ubl branches are eligible to apply for renting the Safe Deposit Lockers.
ALLOTMENT OF LOCKERS:
A locker of the size of applicants choice shall be allotted subject to its availability.
Banks prescribed License Agreement on Stamped Paper to rent the Locker is required to be
executed by the applicant with cost thereof payable by the applicant.
Key Deposit money as per our Schedule of Charges in force is payable by the renter. The Key
Deposit is refundable when the locker is surrendered. In case the key to the locker is lost, the key
deposit shall be forfeited.
Golden deposit certificate:United Banks 5 years Golden Deposit Certificates provide monthly income based investment opportunities to
small and medium income group investors, Charitable/ Benevolent Funds, Trusts, Societies, Associations and
Clubs with an attractive return. Business Firms and Corporate can also invest.
Diamond deposit certificate:United Diamond Deposit Certificates:
United Diamond Deposit Certificates provide investment opportunities to small and medium income group
investors, Charitable / Benevolent Funds, Trusts, Societies, Associations and Clubs with an attractive return.
Salient features of United Diamond Deposit Certificates:

Certificates are issued for fixed periods of 1, 2 and 3 years.

Annualized Rates of expected Profit: from 12 % p.a. to 14 % p.a.

Profit paid at monthly intervals calculated from date of deposit.

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The certificates are issued in multiples of Rs. 10,000/-

Financing facility up to 90 % of Deposit available.

5.4.6

Summary of the learning:

5.4.6.1 Skills and Qualifications:

During my internship I learn some skills. I learn how to behave in different situation with the customers. When
customers are satisfied then they are loyal with the organization. Organizations success depends on the loyalty
of the customers. If you are unable to keep your customers satisfied/ loyal then it is not fruitful for the
organizations. Banks are totally depends on the depositors of the customers. Deposits are called the life blood of
the banks. Without of the deposits of the customers bank can not generate profits. Besides improvement in my
skills I gained some knowledge in the field of banking. By remaining at university I had known to some extent the
purpose of varied instruments used at banks.
Technology play very important role in the success of the organizations. Now a days every bank or organization
tried their best to use the best and latest technology for their success.
The important skill that I gained is the skill of management. I learned that how to manage different kind of
customers, how to resolve their queries in order to keep them satisfied.
I learn that how the outward clearing is dispatching, what steps are involved. I also learn about the preparation
of the bank instruments like the Pay Order, Demand Draft, filling of credit slips of saving account, current
account and online fund transfer slips.
5.4.6.2 Responsibilities during Internship:
In my internship duration Im responsible for the filling of credit deposit slips, maintaining the record of cheque
books that are daily come from the head office and also for the ATM cards. I am also responsible for preparing
the daily intercity clearing. In intercity clearing I separate the different cities cheques and then verify the cheques
and mark the intercity clearing stamp and then clearing date stamp and endorsement stamp in back. I am also
responsible for the filling of slips of transfer of account, online funds transfer slips, saving and current account
deposit slips.
Any major duty was not assigned to me because I have no any experience before this internship and also
because I am a student thats way bank officer not assign me any special duty. My duty was to learn and
concentrate on how things done in business organization in a practical environment.

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5.4.6.3 Influence on my Future Career:

Internship play very important role in influencing my future career plan. During my internship I get experience in
finance sector. I learn how the bank take deposits and give loans to the customers and then get back with the
profit for its depositors and also for the bank itself. My internship program in United Bank inspires me very much.
I like to do the practical work very much, so now I take keen interest to join the banking sector.
5.4.6.4 Internship Activities are correlated with Classroom

Knowledge:

Internship activities are correlated with the class room knowledge. In my previous semester I studied about the
banking sectors. In which I study about opening of account, characteristics of cheque and clearing and also
some extent to loans. Now my concepts are more cleared after my internship. My concepts are clearer by
practicing these things in the bank. The basic rules of financial accounting were practiced during the internship
days like implementation of the basic rules, the rules of debit and credit. The knowledge that I get from
marketing courses was practically observed. I learned how to deal with different customers in different situations.
I learned how to solve their problems and what kind of services must be provided in order to keep them satisfied
so their loyalty can be achieved in order to maintain long term relationship with them. The practical
implementation was observed.
6.

CONCLUSION OF THE REPORT:

The analysis of strengths, weaknesses, opportunities and threat as narrated above tells us about the present
vital concern. The internship of UBL gives me as exposure to the accounting atmosphere.
It helped me greatly in understanding the financial system. The experience I got during the internship will help
me in understanding the decision-making and how to solve daily problems encountered during the practical
working environment
6.2

General observations about the sector:

The UBL exist in private sector, private sector is part of economy and run by private individuals or groups,
usually as a means of enterprise for profit and is not controlled by the state.
6.3

SWOT ANALYSIS:

The SWOT analysis consists of analyzing organizational strengths and weaknesses, and its environmental
opportunities and threat. It helps to identify a strategic niche that the organization might exploit. SWOT analysis
of UBL is as follows.

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STRENGTH:
UBL has got a well reputed on -line system in most of its branches.
Remittance department is working very efficiently in transferring the funds to peoples due to this system
The bank also has started ATM facility in most of the branches 24 hours banking is now the trend in
Pakistan.
Bank is providing quick credit services to all the customers at all branches, because the credit manager
cooperates with the borrowers while making a loan request to the bank.
Management is well organized,
Services provided by the branches are very good.
The bank has stable growth in deposits since its emergence.
The loan facility provided by the bank is on sound basis. They have many checks and documentation
that secure their money after advancing.
Because of its 1056 Domestic Branches they have very good infrastructure and are prevailing now
outside Pakistan also.
Very important aspect of UBL is its fast service. Everything goes very quickly. If you are looking for a
loan, or you want to deposit money or you want to pay your bills their services are so fast that they
respond the customers very quickly.
UBL has financial strength as they are gaining profit from the advances that they provide to the
organizations.
UBL is providing lot of services to its customers like incase of remittances they have services like online
services.
The Management has changed; employees who are useless are fired and new-experienced graduates
are hiring to enhance the operations of the banks & the employees, which are efficient they are getting
promoted.
Because of its quality management, marketing, innovation in products and services they have
established a good reputation in the banking sector.
In UBL the working environment is very good. Every employee comes there and works with zeal &
heartily.
Certain training programs are arranged outside the working environment to train and refresh them or
entertain them.

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WEAKNESSES:
The human resource department is not performing well in the organization,
Bank is not introducing new products these days, so bank should boost the product development and
increase the range of facilities offered for customers. And the rates of interest on its various products
have been reduced.
Bank is under staff so absence of members create problem
All the branches are not computerized.
UBL is centralized. It means authority is not delegated to branch level. Manager cannot take initiative
regarding different decisions such that for giving finance.
The majority of people are not well aware about the products of UBL It is due to their very low services of
promotional activity.
There is low level of motivation in the employees of the bank
UBL Management has adopted reactive approach they respond to the market very slow and are reluctant
to take initiative before the problem arises.

OPPORTUNITIES:
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.
One could find opportunities in good marketing; it could also helpful in bank's promotion.
Mobile banking is a concept that has started to find its roots in the banking sector. So it is a big
opportunity for UBL to avail this chance at big level.
Opportunities exist for expansion of UBL chains in the International Arena; Particular Invention must be
given to the individual country's customs and cultural practices to be successful.
UBL should organize trade shows for the promotion of export for that they should finance the companies
those who wanted to internationalize and wanted to introduce their product and services outside
Pakistan.

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 Liberalization is a concept that is under discussion around the world as this is going to be implemented
by WTO in a few years to come. So keeping in view these perspectives there is great opportunity for UBL
to be stronger.
An external opportunity exists in efforts to improve the social environment of local communities and
society in general by offering innovative, community - involvement programs.

THREATS:
UBL has many competitors who are continuously increasing their products and marketing aggressively it
may cause its customer to shift to its competitors.
The rapidly changing environment in the banking sector and the quick response of the other banks to
these changes can be a threat for UBL.
What customer really wants is a difficult thing to identify as to identify the customer perception and its
behavior is complex procedure. So the changing needs of the customer can be a threat for the banks.
Changing Governmental Policies instability in Politics can be seen as a threat for the banking sector.
Competition can be the greatest threat for the UBL. As old banks have started changes and many new
banks are emerging as a strong entity so UBL will face a strong threat from this competition unless adopt
pro - active approach to handle these threats.
The political conditions of the country affect the banks performance.

7.

RECOMMENDATIONS:

SWIFT MECHANISM:
SWIFT mechanism is gaining importance for the treatment of LC and it has been found that UBL has only
provited SWIFT facility at its head office not to all the authorized dealers dealing with foreign exchange in their
branches. To save the precious time of the prestigious for LC in their Central branches inside the country.
TO AVOID CUSTOMER DEFECTION:
During my time period that I spent in foreign exchange department I found in their registers that many firms
were defecting means those who were first loyal to UBL for the operations of opening LC were not viewed in
the list for a longer period of time. To avoid their defection whether it is partial or full relationship should be
created by giving a phone call. It will make betterment in UBL s goodwill and their profits.
REDUCE COMPLEXITY IN ADVANCES:

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While providing advances the mechanism that is opted by UBL is to provide facility and renew it after a year. In
the renewal whole procedure is followed again that was opted at the start. Lot of documentation get not only
employee confuse but even customer avoid that. This can be the reason for UBL having low ratio of advances
as compared to their deposits. So UBL should finish the method of renewal but keep checking the
performance of the organization by having relationship.
INTERNATIONAL EXPANSION:
UBL has internationalized already and is performing very well in its abroad branches. But UBL has
internationalized to few countries. They have big markets ahead of them and with their working activity will get
simpler with that. In the form of European countries and markets like CHINA where there is lot of activity
related to banks they can expand their chains.
MOBILE BANKING:
Mobile banking is actually a banking that you can do yourself. You can perform various activities of bank
through your mobile phones or through your computers. With just a call you can transfer money from an
account to another and similarly other activities. It is a concept that is gaining importance throughout World
Pakistan is no exception. UBL should start working on this concept to maintain their existence in the changing
banking sector.

ADOPT PRO-ACTIVE APPROACH:

UBL management should adopt proactive to survive in this sector. What I have observed is that UBL
management is having reactive approach means that they react to the situation that their competitors have
created. In case of consumer financing UBL has respond by having same schemes that have been already
launched by their competitive e.g. car financing and housing schemes are responded but very late by the UBL.
UBL should try for new innovative ideas rather than moving on the same track that their competitive are doing.

EDUCATE ACCOUNT HOLDERS:

Whether the account holders are new or existing bank should provide them with the initial information about
how to deposit and withdraw money from the bank. It will be beneficial for the bank in a way that lot of time
could be saved afterwards with that approach.

PROMOTIONAL ACTIVITY:
Bank must let potential customers know that all attractions for banking exist. This is done by advertising on
Television and obtaining Press coverage, in conjunction with direct mail, window displays, pamphlet in

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branches and in appropriate other locations (such as hostels, shops etc.) and including leaflets in statement of
accounts sent to existing customers in the hope that they will tell potential customers about the services
provided by our bank.
RELATIONSHIP:
The bank should keep on filling the gap between customer and the bank through consumer friendly attitude
and efficient services. They should work on building relationship with the customers.

BUSINESS PARTIES:
UBL should start thinking about relationship with the parties that are willing to do the business with the bank.
Business in the form of deposits for a longer period of time. Rather than looking for small parties whose
purpose is just to deposit in the morning and have withdrawal in the evening should be discouraged. Lot of
time in work activity can be saved by having few but good parties rather than having huge accounts of small
amount and specially those are not for the purpose of long term deposits.
CHANGE ATTITUDE:
Employees inside the branches should change their attitude toward the customer. It has been observed that
customer do not get the same warm welcome and importance that he wants and he is been provided by other
emerging banks like ALFALAH and UNION BANK. They should start thinking about changing their attitude
from now.
Performance Appraisal & Compensation:
Employee appraisal is an major part good and effective HRM. It consist of systematic evaluation of an
individual with respect to his personal traits and characteristics, his on job performance and his potential for
development. In Unite Bank Limited there is no appraisal system exists. No relationship has so far been
established between appraisal and staff motivation. No weight is assigned to appraisal in making decisions on
promotions, postings, etc.
Compensation is a necessary thing for employees satisfaction. And UBL has not any proper compensation
plan when ever management decide to give bonus or extra salary to employees it is followed. So there should
be proper compensation plan.
Product Marketing:
This is age of competition and every organization is facing hard competition from not only domestic
organization but also from the international organizations due to globalization. Due to this competition the
marketing department plays a vital role in the success of the organization.
UBL should have a strong marketing department like many other private banks have, for the publicity of their

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products and make well inform the customers all the services provided by the bank and to conduct detailed
market researches to find out new opportunities, needs of the customers and make comprehensive plans to
capitalize those opportunities.

Appearance:
Physical appearance of the location and inside the building also matters. It helps a lot to attract the customer.
Some branches of UBL are very attractive but all the branches should be well dressed.
Charge Card:
UBL should provide the facility of charge card as well.
Recovery Facility:
It should also provide the facility of recovering notes payable and accounts payable
8.REFERENCES:
BIBLIOGRAPHY:
BOOKS:
James C. Van Home, John M. Wachowicz, Jr. "Chapter # 6 Financial Statement Analysis", financial
management 10th Edition, 121-157
Richards, Verlyn D and Eugene J. Laughlin. "A Cash Conversion Cycle Approach to Liquidity Analysis".
Financial management 9, 32-38.
The Professionals' Academy of Commerce (PAC), "Introduction to Financial
Accounting" 3-10.
Lawrence J. Gitman "Chapter # 3 Financial Statements, Taxes, Depreciation and Cash Flow" Principles
of Managerial Finance 9th Edition, 78-84.
LINKS
www.ubl.com.pkwww.google.com.pk
www.ubl.com.pk
www.sbp.com.pk
SOURCES:
Annual reports of UBL and Previous years reports of UBL.
Existing documents of UBL.

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MBA(Finance)

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ANNEXURE A

HIERARCHAL STRUCTURE OF UBL AT

HEAD OFFICE LEVEL

Board Of Directors

Executive Committee

Treasury
& C.M

Corporate
Banking

Investment
Group

Consumer
Banking

H.R.M

Marketing
Departme

IT
Department

Audit &
Inspection

Service
&
Quality

Agricultural Loans

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ANNEXURE B

HIERARCHAL STRUCTURE OF UBL AT BRANCH LEVEL

Branch Manager, Area Operational Manager

Customer Deposit

Cash & Clearing

Bills & Remitt

Marketing

Information Technology

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Advance

Foreign Exchange

53

Accounts