Académique Documents
Professionnel Documents
Culture Documents
ON
UNITED BANK LIMITED PAKISTAN
MAIN BRANCH, BANNU (0306)
Submitted To:
The Director (IMS)
Prof. AMAN ULLAH AWAN
Submitted By:
ARSHAD MEHMOOD
BBA-IT (HONS)
Roll No.832
Session 2006-10
INTERNSHIP REPORT
ON
UNITED BANK LIMITED PAKISTAN
MAIN BRANCH, BANNU (0306)
...............................
Signature
Supervisor:
Name
Designation
Director:
Signature
Name
PREFACE
Banking is the backbone of the economy of any country. In Pakistan, banks are now
getting the attention and support of the government, to nourish and initiate the
developmental projects in this Country. Banks have also attained a high level of
initiation, productivity, and growth. One such bank with new policies and strategies
pushing forth towards progress is United Bank Limited, which has since its
inception shown remarkable achievements and discovered new avenues of innovative
banking.
During my two months Internship in UBL, Main Branch Bannu, I acquired first hand
information about Consumer Banking of the bank.
Report writing is infact a crucial exercises because the performance of a student is
judged through this report. I have tried my level best to cover every aspect of this
specialized banking activity, asses the working and performance of the Center and
forward solutions for its further improvements.
A number of persons have offered their help and guidance in writing this report. I
express my thanks to my supervisor MR.AFTAB KHAN, and my manager MR.
JAVID KHAN. I would also like to thank to the other staff members of UBL,
especially MR. HANIF ULLAH KHAN , without whose support it was impossible
for me to do this tedious job.
ARSHAD MEHMOOD
BBA-IT (HONS)
Roll No.832
Session 2006-10
ACKNOWLEDGEMENT
In completion of this work I am thankful to Almighty ALLAH, as I firmly believe,
without his gracious help; this accomplishment would not have been possible.
First and foremost, my deep appreciation, gratitude and indebtedness to my supervisor
MR.AFTAB
Bannu, for his continuous encouragement, moral support and generosity in sharing his
time and knowledge during my studies.
I wish to express my sincere gratitude to personnel of UBL, Main Branch, Bannu, for
their help and guidance during my Internship.
Thanks to the constraints of academic protocols, that those who were and are always
first in my mind are being mentioned last. They are my parents and my loved ones. It
is, I believe, their sincere prayers, which were a constant source of strength and
inspiration to me that resulted in the completion of this work. I dedicate this work,
blended in my boundless love and affection, to them.
ARSHAD MEHMOOD
BBA-IT (HONS)
Roll No.832
Session 2006-10
TABLE OF CONTENTS
S.No.
Topic
Page No.
Preface
Acknowledgement
ii
List of Tables
vi
vii
List of Acronyms
viii
Executive Summary
ix
Chapter 1
1.
INTRODUCTION
1.1
1.2
1.3
1.4
1.5
1.6
1.7
10
Chapter 2
2.
EVOLUTION OF BANKING
11
2.1
Introduction
11
2.2
11
2.3
Management of UBL
13
2.4
Subsidiaries
16
2.5
Joint Venture
16
2.6
16
2.7
17
2.8
Objectives of UBL
17
Chapter 3
18
3.
ORGANIZATIONAL STRUCTURE
18
3.1
18
3.2
20
3.3
20
3.4
22
3.5
22
3.6
Organization Hierarchiy
23
3.7
24
4.
4.1
4.2
4.3
2.4
4.5
DEPARTMENTATION
Accounts Department
Remittances Department
Deposits Department
Foreign Exchange Department
Advance department
5.
Chapter 5
SERVICES & PRODUCT OF UBL
5.1
5.2
5.3
5.4
5.5
5.6
6.
6.1
6.2
6.3
6.4
7.
7.1
7.2
7.3
7.4
GENERAL DEPOSIT
CURRENT DEPOSIT
SAVING DEPOSIT
FIXED DEPOSIT
UNI-CASH
UBL WALLET VISA CARD
Chapter 6
SWOT ANALYSIS
Strengths
Weaknesses
Opportunities
Threats
Chapter 7
FINDINGS AND RECOMMENDATIONS
Deposits Department
Remittances Department
Cash Department
Bills and Clearing Department
27
27
38
30
32
34
37
37
37
38
39
41
43
43
44
44
47
48
49
49
50
5
7.5
7.
Advace department
Other finding and Recommendation
BIBLIOGRAPHY
52
55
LIST OF ACRONYMS
United Bank Limited
ADPC
ATMs
AVP
BOD
CBG
Corp. Sec
CRM
D.D
DH
Est.
EVP
HBL
HRM
IBCA
ICP
IDBP
M.D
MT
NBP
NDFC
NWFP
PIFC
RTC
SAMG
SBP
SEVP
UBL
V.P
WHT
EXECUTIVE SUMMARY
Now a days strong and efficient capital and financial institutions are the basic
requirements of each county. So no country can be considered strong without having
strong enough capital and financial institutions and markets. One of the components
of these financial institutions are the banks. No one can deny the role the banks are
playing in the economic development of a country.
In Pakistans banking sector, UBL is one of the leading commercial banks. Very
renowned bankers such as I.I. Chundrigar and Agah Hassan Abidi established UBL in
1959. From the very beginning, UBL was showing very good performance but in
1974 after the nationalization of commercial banks, the bank has received some very
severe financial shocks. The shocks received in 1995 were so severe that SBP had to
assume the control of the bank in order to save it from bankruptcy. But after taking
over the management of the UBL by the new set-up under the leadership of Zubyr
Soomro, the bank was successful in rebuilding its shattered image. The new
management started new schemes and injected new concepts in order to improve its
services to the clients. Now the bank is in very good financial position and also has
gained its lost Goodwill.
My three months internship in UBL Main branch Bannu, gave me a very good deal of
the practical experience about the bank, its personnel and various services it offers to
the clients. Although three months duration for studying organization by no means is
enough but I have tried my ever best to cover all the areas of the bank in my report.
This report highlights the operations and functions of bank. Banks acts as financial
agents to their customer; in return they get reward for their services. Banks play
important role in development of society. A strong economy must have a good
banking system.
United Bank Limited is one of the leading banks in Pakistan. This report explains how
different functions of UBL works and what are their services. During the critical
analysis, it was observed that UBL is one of the leading commercial banks of
Pakistan.UBL has a greater responsibility for safety and prudence. since commercial
banks must make a living by putting the money at their disposal to work, they are
faced with the problem of making a living without jeopardizing the safety of their
institution and UBL is doing all this very efficiently.
CHAPTER # 1
INTRODUCTION
1.1 Background of study
United Bank of Pakistan is one of the leading and first government recognized bank in
Pakistan. Aimed to be the pre-eminent financial institution in Pakistan and achieve
market recognition both in the quality and delivery of service as well as the range of
product offering.
The reason of its development was that the UBL in addition to being a commercial
bank in the public sector at a time when all other commercial banks were in the
private sector
also came to acquire certain characteristics which to this day set it part from other
commercial banks of the country.
The establishment of UBL thus signaled the achievement of another milestone in the
development of the banking industry in Pakistan.
1.2
For getting the Master degree of Business Administration, each student is required to
spend at least two months as an internee in a recognized organization. The students
are required to work in their own field in which they have done their specialization.
Main purpose of this program is to make students familiar with the practical work, as
there is great difference between what they have learnt during their MBA. And how
the job is practically done.
Another important aspect of the internship program is that internee is placed in most
of the departments of the organization through job rotation. It provides a glance of
each department, as the period is too short for learning in detail.
1.3
1.
2.
It will help the present and prospective students of the department in making
assignments and writing reports on the UBL, evolution of banking, importance
of banking and different operations.
3.
4.
It can also provide assistance to students seeking financial data for analysis.
1.4
IMPORTANCE OF STUDY
Banks play a central and very important role in the economic life of a country, thats
why they are considered as the lifeblood of modern economy. Today no one can deny
the importance of banking in the economy. They facilitate and expedite trade and
commerce and provide a variety of services that one cant imagine with out banks.
I have chosen the United Bank Limited Pine View Road branch for my
internship because it has all the departments a bank could have.
Besides this, UBL plays an important role in the economic development of
Pakistan.
1.5
Report methodology
The methodology that I adopted for this research project is based on both the
2.
Personal observations.
The sources of secondary data were:
1.
Annual reports
2.
3.
Relevant books.
4.
During the research project, I observed that enough written material regarding the
Bank is not available, so I had count on my personal observation and interviews with
manager. I spent eight weeks in the local branch and collected information about
10
different departments of the bank from discussion and interview with manager, so
most of the data of this report is primary .I also availed assistance from few relevant
books.
1.6
There were however some limitations and that is the two months durations of
internship are nothing to gain entire knowledge of banking. Moreover the bank does
not want to provide data particularly about the rightsizing of employees and stuck-up
loans due to various reasons, so the reader must also keep this in mind.
1.7
Chapter 2: of the report is about evolution of banking. This chapter contains detailed
information that what role the banks play in the economic development of a country.
In this chapter the bank is defined. Growth of the banking globally as well as in
Pakistan is pointed here. As well as it is about the historical background of UBL. The
circumstances in which UBL was established and its growth is discussed here.
Chapter 3: of the report is about the organizational structure of UBL. Hierarchy of
staff and various positions of seniority are shown and discussed through a Chart.
Chapter 4: covers various departments of UBL. Each department is separately given
due consideration. Various functions performed by different departments are
highlighted.
Chapter 5: this chapter is about services & product of UBL, throws light on various
financial products UBL offers to its customers.
Chapter 6: of the report consists of SWOT analysis.
Chapter 7: is consists of Findings and Recommendation of UBL
11
CHAPTER # 2
EVOLUTION OF BANKING
The word bank is derived from Latin word Bancs or Banque, which
means a bench. The explanation of this origin is attributed to the fact that
the Jews in Lombardy transected the business of money exchange on
benches in the market place. When the business failed, the people destroy
the bench.
Incidentally the word bankrupt is said to have been evolved from this
practice.
The opponents of this opinion argue that if it was so, then how is it that
the Italian money changers were never called Banchierei in the middle
ages
Other authorities hold the opinion that Bank is derived from German
word back which mean joint stock fund. Later on, when the German
occupied major part of Italy, the Back was italicized into Bank
Historical Background and Growth of UBL:
The reserve Bank of India which was given the responsibilities of
exercising control over banking sector did not perform its duties properly
in Pakistan.
The real momentum was given to banking system when the State Bank of
Pakistan, was established on 1st July 1948. But a real turn took place in
the banking section when a renowned banker Agha Hassan Abdi took
initiative of opening a bank, which he announced to the different mode
from the others. His dream became true when the first branch of United
Bank Limited (UBL) was opened at Macleod Road (now 1.1. Chandrigar
Road Karachi) on 7th November 1959.
12
This achievement was recurred after passing through many problems and
after completion of a lot of legal formalities. UBL was established on 24th
July 1959 as a public limited company with registered office at 1.1
Chandrigar Road, Karachi. The authorized capital was Rs. 2, 00,00,000
issued, subscribed and paid up capital was a Rs 1,00,00,000 share of Rs.
101 each. . The bank currently operating through 1300, branches in all the
major cities of the Pakistan and its registered office are situated at state
life insurance corp. Building # 1, 11. Chundrigar road, Karachi.
United bank limited is one of the most famous bank working in different
area of Pakistan, UBL is now officially the second largest private sector
bank in Pakistan with its 25 percent growth in deposits to RS 237 billion
in 2004.
Progressive Banking was a vision that came true in 1959 with the birth of
UBL. It brought in an era of modern banking and customer care beyond
the ordinary.
The Bank launched a variety of consumer banking products and services
UBL Drive, UBL Cash line, UBL Address, UBL Business Line, UBL
Wallet ATM card and UBL Business Partner.
UBL is one of the largest commercial banks in Pakistan with assets of
over RS. 190 billion, Net Assets of over RS. 13 billion and a solid track
record of 47 years. UBL offers its services through a nationwide network
of over 1300, branches spread all over Pakistan and 15 overseas branches.
The Bank earned RS 4.3 billion pre-tax profits in 2003, a 59 percent
increase over the previous year, and announced a dividend of 22.5 per
cent. This remarkable performance was based on a record growth of 38
percent in advances, which grew from RS 72.8 billion in 2002 to RS
100.2 billion in 2003 driven by growth in deposits from RS 158.3 billion
in 2002 to RS 185.1 billion in 2003.
13
The Bank was privatized in 2002, through the sale of 51 percent stake to
a consortium of the Abu Dhabi Group led by His Highness Shaikh
Nahayan Mabarak al Nahayan and the Bestway Group led by Sir
Mohammed Anwr Pervez,. The issue is unsecured and subordinated to
payment of principal and profit to all other indebtedness of the Bank
including deposits.
United Bank Limited is one of the largest commercial bank in the
country. With almost 47 years of good standing to its valued clients, it has
stood the test of time, producing assets of over RS. 282 billion.
It offers its services through a wide network of over 1300, domestic
branches all over Pakistan and 25 overseas branches as part of global
network.
Management of UBL.
Essential Staff (1959).
UBL consisted of the following staff after establishment.
1
Chairman
Manager Director
Director
Mr.M.Bashir Saigol
Director
Director
Director
Director
Director
14
Mr. Ismail Ibrahim Chandrigar died in 1960 and was replaced by Mr.
Habib Ibraheem Rahmatullah while Mr.Shafiq Saigol retired in 1962 and
Agha Hassan Abdi took charge as managing director.
After Nationalization (1974).
On 1st January 1974 all commercial banks were nationalized and the
boards of directors of these banks were dissolved. Mr. Mushtaq Ahmad
Youdafi took charge as president of UBL. After nationalization 14 units
of commercial banks were merged in order to form 5 units. On 1977
commercial bank limited and Union Bank were merged with UBL.The
names and tenure of various presidents of UBL after nationalization are
as under.
15
From
1.
01-01-1974 31-12-1976
2.
01-01-1977 31-12-1979
Mr. Sami
01-01-1980 03-02-1982
01-01-1983 15-07-1988
16-07-1988 04-02-1989
05-02-1989 18-07-1989
19-07-1989 01-08-1990
01-08-1990
10
Saeed Butt
11
12
M. R. Khan
13
Zubair Soomro
14
To
16
Highness
mabarak
shaikhnayan Chairman
3.
President &CEO
Director
Mr.zamer
choudry
Director
Director
Company
sectary&chief
legal
SEVP/Group
chief
financial
officer
Mohammad Director
17
medium
and
big
industries,
commercial
establishments,
agriculturists and other needy persons. UBL collects electricity, gas and
telephone bills from public on behalf of various departments and issues
T.V licenses on behalf of Pakistan Television Corporation.
UBL has established and organized branches both inside and out side
Pakistan. These are two subsidiaries and joint ventures of UBL as under.
1.
Subsidiaries:
UBL A G. Zurich (Switzerland) established in 1968.
Its paid up capital of dollars 2722 thousand, deposits
of dollars 5827 thousand and advances of dollars 5538 thousand as
on Dec 31, 1962.
UBL of Lebanon and Pakistan established in 1968.
Its paid up capital of dollars 379000 deposit of dollars
125978 advances of dollars 1983313.
2.
Joint Ventures:
a. Commercial bank of Oman Limited (Mascot) established in
1982.
b. United Saudi Commercial Bank Limited (Saudi Arabia)
established in 1982.
c. UBL has been presenting a very good track record since its
inception into banking business.
3. Branches
UBL has a large network of branches, which extends to the
remotest areas of the country. In December 1983 there were 1623
branches where in 1974 it had only 1238 branches. At present UBL have
1096 domestic branches. and present 15 overseas branches. some names
18
are
.bahrain,Qatar,Saudi
Arabia,united
Arab
emirates,yemenarab
The role of UBL has developed largely; through out the country in very
short period of forty seven years. The bank is operating in the entire
country and has branches all over the country and overseas. In N.W.F.P,
UBL is operating successfully. The number of branches of UBL in
Peshawar region is 156 up to dec.2001 i.e. there are total 14 Hub
Branches in Peshawar region and under these Hub branches, there are 142
spokes branches. These 156 branches come under the Peshawar Region,
for which there is a Regional head Quarter (RHQ) in Peshawar.
The list of hub branches come under the Peshawar Region is as under.
1.
Peshawar
2.
3.
4.
5.
Bannu
Mansehra
Timergara
Hangu
6.
Haripur
11.
8.
9.
7.
D.I. Khan
Mingora
13.
Nowshera 14.
10. Bathela
Mardan
12. Swabi
Kohat
Abbotabad
19
purpose. All the activities of an organization are due to its objectives and
goals. And for the attainment of those objectives, various types of
financial products and plans are developed. UBL has also some
objectives, which are as under.
To develop SMES.
CHAPTER#3
ORGANIZATIONAL STRUCTURE
Organizational structure of a firm provides boundaries for authority of
persons and clarifies individual responsibility and authority. It shows who
is responsible to whom, and who has the authority to give orders to
someone. An organization having dual authority or vague structure would
not have clear direction and will face hurdles in getting its goals and
objectives. Therefore, it is very important for any organization to have a
well-established structure of responsibility and authority. An organization
20
UBL is a
Paste Chart
21
CHAIRMAN
H.H Sheikh Nahayan Mabarak Al Nahayan
DEPUTY CHAIRMAN
Mr. Muhammad Anwar Pervez, OBE, HPK
DIRECTOR
Zameer M. Choudrey
DIRECTOR
Omar Z. Al Askari
DIRECTOR
Muhammad Tehsin Khan Iqbal
DIRECTOR
Ahmad Waqar
Director
Javed Sadiq Malik
General
Recovery, Loans,
Inspection,
etc.
The
successful here. Unlike ANZ and NBP, UBL is getting benefits from it,
and has improved its performance quite well.
Head Office
2.
1.
Head Office
Head office of UBL is now in Islamabad. It exercises overall
control over the bank. The head office (HQ) has various functions.
To supervise RHQs.
2.
25
The UBLs Consumer Assets Centers are the state-of-the-art in the main
cities like Karachi, Lahore, Islamabad and Peshawar. The Consumer
Assets Centers are divided in main Head Office, Regional Centers and
New Cities. At the time of launch the regions were 10 in the country but
now it has been increased to 14.
In Consumer Assets centers the products are divided in to two types: The
Secured, and Un-secured Products. The Secured include UBL Autos,
UBL Address, and Credit Card while the UBL Money and UBL Cashline
comes under the canopy of Un-secured Products.
There is a Group Executive, a Global Sales Head, Head Secured
Financing, Head Un-secured Financing, National Sales Managers,
Regional Sales Managers, Relationship Managers and the Relationship
Officers.
4.5 TOP MANAGEMENT AT THE HEAD OFFICE:
I. BOARD OF DIRECTORS
The executive authority for the general direction and supervision of
the Bank operations or the conduct of business of UBL vests in
Board of Directors. The board consists of a Chairman and seven
other Directors.
The chairman of the Board of Directors is the Managing
Director. All the members of the Board of Directors, as well as the
Managing Directors are appointed by the government of Pakistan.
II.
EXECUTIVE COMMITTEE
Executive committee of UBL consists of seven members. With the
expectation of the president, and secretary all other members
serves as In charge of many divisions. These members are Senior
Executive Vice President (SEVP), or consultants hired on contract
basis. The Division Heads that work under SEVP or consultants are
26
The members of the executive committee other than the M.D. shall
hold office for such period as may be determined by the Board of
Directors.
The MD shall hold office for term of three years, which the
government may extend from time to time.
27
28
Organizational Hierarchy C
Board of Directors
Executive Committee
President/CEO
SEVP
EVP
SVP
VP
AVP
Office Grade 1
Clerical Staff
Officer Grade
II
29
Executive Committee
President/CEO
Group Executive
Head Un-secured
Financing
Non-Clerical Staff
Processors
Relationship
officers
30
Location map
www.ubl.com.pk
31
CHAPTER # 4
DEPARTMENTATION
UBL like other commercial banks established various departments for the
performance of various functions. Some of the departments of UBL are
Foreign
Exchange
department,
Advance
Department,
Accounts
ACCOUNTS DEPARTMENT:
Current Account
ii.
Saving Account
iii.
Fixed Account
i.
Current Account:
ii.
Saving Account:
32
Fixed Account:
The deposits that can be withdrawn after a specified period of time are
referred to as fixed or term deposits. The account holder keeps a
specified amount of money for a definite period of time. The amount
deposited is not withdrawal by cheques, And after the maturity of the
previously agreed rate of return.
A single individual, partners and companies, too can maintain such
accounts as well. The period of which these deposits are help by the bank
ordinarily varies from three months to 60 months with the agreement
made between the customer and the banker.
iii. Business Bank Account.(BBA A/C):
This is the special type of Account (A/c) offered by UBL. This type of
A/c is opened for the students and salary holders. In this A/c there are
some facilities offered for the A/c holder such as..
I. No restriction of minimum balance.
II. ATM facility.
33
REMITTANCES DEPARTMENT:
This department is concerned with the transfer of money from one place
to another. In this, various modes of transferring money are available
which are discussed below.
A.
In this the money is transfer from one place to another by mail. If the
person is account holder of the bank, then the banker debit his account
with the amount of money he wants to transfer. The concerned bank
officer will prepare the necessary vouchers to make the mail transfer
complete. It contains on;
1)
2)
3)
then he has first to deposit the stated money with the same bank and then
the above process starts.
B.
34
People who want to transfer money quickly and without delay use this
type of transferring money. This type of transfer is also very simple. The
person who wants to transfer money fills the TT application form. The
applicant asked to deposit money to be remitted plus the amount of
commission and telegraph charges. After the amount is deposited with
cashier, the officer incharge remittances will prepare the TT message. The
TT message also carried a test number which is a sum of values derived
from number items like date, amount, and the drawer branch consecutive
number etc. then this telegram is sent to the bank where the money is to
be transferred. After receiving the telegram the drawer bank makes
payment after the test number is correctly decoded according to the
procedure prescribed.
C.
In this way the person who wants to remit money goes to the bank and
fills the application form by filling the name of the drawer branch,
amount and the payees name. The amount to be remitted is deposited
with the cashier along with the commission on DD and the in charge of
remittances department will prepare the instrument. It is signed by two
officers of the branch and is then handed over to the applicant. The
amount can be received by presenting DD to the drawer branch
personally or through a bank.
35
Thorough on line facility you can transfer the amount from one city to
another city in no time without commission (if you are account holder of
the Bank).
In this method the transferor A/c are Debited by the Bank and the
transferee A/c are Credited (to whom the amount is transferred) by his
Bank where he has A/c.
The amount is transferred in no time. Online transfer bring great
revaluation in the business world and make business more secure and
fast.
The trader transfer money to the seller through bank, and the seller sent
goods to the buyer as soon as possible, and thus buyer save his traveling
charges , as well as he also not close his business of the buying of goods
for the business.
3.
DEPOSIT DEPARTMENT:
Current Account
2)
3)
4)
Call Deposit
`The classification of deposit chiefly on the basis of time and the purpose
for which the account is opened with the bank.
36
Current Account:
upon the duration of the deposit. The amount deposited in fixed account
is not withdrawn able. The amount is received back after the expiry of
fixed period.
One of the most important aspects of term deposit for the banks is that the
money of this deposit can be invested in various what the bank consider
profitable.
This type of deposit is also known as single transaction account. It is
because the account holder cannot operate upon the account like other
deposit accounts. The banker usually gives a receipt of the fixed deposit
mentioning the amount of money and date of maturity of the deposit. No
pay in slip book, passbook or chequebook is issued to the customer.
4.
So they
38
without permission from the SBP under Foreign Exchange control Act
1947. Foreign Exchange regulations are issued though the Exchange
control Department of the SBP.
Any transaction in the international Banking shall be carried out at rates
determined by the SBP. For this purpose the SBP fix the rate of US dollar
with other currencies. Foreign Exchange rate committee in Karachi Head
Office does this by the formula approved by SBP and as published daily.
It also makes sure the rates approved are conveyed to the braches on the
same day.
Foreign Exchange Department provides the following services to the
customer.
a.
Current Account
Saving Account
39
i.
Current Account:
Just like local currency current account holder no interest is given
to the foreign currency account holder. Foreign Currency A/C are also
exempted from Zakat, Income Tax, Wealth Tax, the Account holder can
shift his money abroad through Foreign Exchange remittance services
ii.
Saving Account:
UBL offers a very handsome rate of return foreign currency saving
UBL is an
US DOLLARS
UK POUND STRELING
JAPANES YEN
GERMAN MARK
SAUDI RIYAL
UAE DARHAM
5.
ADVANCES DEPARTMENT:
40
Commercial Finance
Agriculture Finance
Industrial Finance
Export Finance
Import Finance
BY CASH CREDIT:
41
ii.
iii.
iv.
v.
vi.
(b)
(c)
BY OVER DRAFT
Some time it happens that a reliable, regular customer may ask for
CLEARANCE HOUSE:
43
the cheque is deposited becomes the creditor of the drawers bank. The
debtor bank will pay this amount of the cheque by transferring it from
cash reserves if there is on off setting transaction.
In daily business of the bank, there are a number of chepues deposited
with one bank, which are drawn by other banks.
becomes indebted to the bank in which the chques are deposited for
collection. In the same way the creditor banks also receive cheques
drawn on other banking giving blooms of payment by them. Now it will
be very inconvenient, uneconomical for the bank to transfer cash for
fulfilling reciprocal obligations. The best, easiest and safest way will be
to off set the reciprocal claims of each other and transferring only the net
amount due by any on the Clearing House provides this facility.
The clearance house is the branch of central bank of Pakistan or in case of
area where on central bank is available. The representative of each bank
meets at fixed time on all business day of week. This meeting is held in
the bank performing duties of clearing house. The messenger of the
various commercial banks gathered at the clearance house and
transferring cheques payable by other banks while collecting drawn on
their banks. A summary sheet is prepared describing the number of
cheques received and delivered by a bank at the clearance house.
Normally, the banks maintain two books for clearing house.
Outward clearing
book.
CHAPTER # 5
SERVUCES &PRODUCT OF UBL
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General Deposits:
Due to the ever-increasing need for capital there are now a few business
enterprises, which are carried, put totally with the owners equity/capital.
So borrowing is becoming an essential feature of todays enterprise. But
in case of banking business borrowing from outside sources is all the
most vital. And this is very common observation in the banking business
that in a given banks found treassures the borrowed capital is much
greater than its own capital. Bank borrows mostly in the form of various
deposits the greater the difference between the rate of borrowing and
lending; the greater will be the profit margin, for the bank. But the bank
look forward for more deposits, as this will create more funds available
for employment. So greater deposits will result in greater return for the
bank and as a result greater profit. In banking business these deposits are
the lifeblood of a bank. In deposit being the main advantage for the
customer is as debts.
When bank receive a deposits from a customer a relationship of debtor
and creditor is established. Customer becomes creditor while bank takes
the responsibilities of debtor. On receiving of deposits the acquired
liability for that much amount while becoming of the deposit, it can
invest anywhere it deems right with out consulting the creditor of the
deposit. But it does not mean that the bank becomes the sole owner of
this amount, rather through an implicit agreement the bank will be liable
to pay the depositor money as and when the depositor demand.
2.
Current Deposits:
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UBL offers the facility of current a/c both in Pakistan rupees and foreign
currencies. On maintaining such accounts these is no restriction on the
customer residence. These accounts are usually maintained by
businessman and business concerns. It is become that they can take and
deposit money as money times as they deem right during the banking
hours. As such these accounts are payable on demand. In Pakistan on
offer any interest. Some of the solvent features of this a/c are as.
i.
ii.
These a/cs are regulated under the rules and regulation of SBP
especially deposits of $1000 is free from all exchange control.
iii.
iv.
v.
vi.
vii.
3.
Saving Deposits:
The main objective of maintaining saving deposits in running
status by the bank is to develop saving habits in the people of our country.
Such people may include young people, married or household woman.
These people can start their a/c by depositing only a small amount at a
time. These accounts can also be opened in foreign currencies. Some year
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ago it was not possible to withdraw money from saving a/c more than two
times in a weak and prior notice was to given the bank for drawing
money above a certain level. This restriction is now removed by SBP and
the customer can deposit and withdraw money as and when required by
the client during the banking hour.
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Fixed Deposits:
These deposits are created by a single as such there are two transaction
involved. One is when some body deposits the money and the other when
the customers withdraw the money after or before the due date. In case of
withdrawing the deposit before maturity no interest is paid to the deposit
holder. The rate of return on time deposits various with the duration for
when the deposit is created. The duration various from a day as long as
five years.
5.
Uni cash:
Now days carrying cash while going out of your place is very risky.
Every body wants maximum security while keeping is money in his
pocket. People make use of TC and other various credits cards for this
purpose.
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form the bank staff by printing it in a special number buy the computer on
a pre-sealed, tamper proof PIN millers. These PIN-MILLERS can only be
seen when the customer opens the envelope.
b.
Pin Change:
When a customer after availing the facility first time with the UNI-CASH
card, he/she will be required to change PIN (Personal Identification)
number is sought from security point of view. The change number
selected by the customer should be such that the customer can easily
remember it and can not be easily guessed by other.
c.
Withdrawal Limit:
This limit is determined at the time of depositing money for availing the
facility of UNI-CASH card. The limit depends upon money deposited.
e.
Cash Points:
Balance Inquiry
ii.
Mini Statement
iii.
PIN Change
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days a week at all UBL ATMs as well as others ATMs in 1Link &
MNET network.
ATM CARD USAGE :
1. Insert the card in to the slot labeled insert card.
2. Select the Language.
3. Use the keypad to enter the personal Identification number(PIN).
MAIN MENUE:
In the main menue, select an icon to conduct a transact
CASH WITHDRAWAL:
1. Select cash withdrawal from the main menue.
2. Select the account type.
3. Enter the required amount in multiples of Rs.500* and press OK.
MINI STATEMENT:
1. Select mini statement from the main menu.
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execute
The Funds transfer.
DEBIT CARD USAGE:
1.
2.
The cashier will swipe your UBL Wallet through the point of
sale(POS) Terminal and enter the purchase amount.
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3.
transactions on the ORIX network simply enter the PIN to complete the
transactions.
CHAPTER # 6
SWOT ANALYSIS
The word SWOT consists of four words, which are stands for
Strengths, weaknesses, opportunities and threats, respectively.
Through the SWOT Analysis technique one can analyze the present
condition and performance of a given organization and can prepares plans
for the future.
In the SWOT Analysis of UBL the following points can be discussed in
brief.
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1.
STRENGTHS:
2.
WEAKNESSES:
OPPORTUNITIES:
4.
THREATS:
54
Development
and
maintenance
of
congenial
work
56
CHAPTER#7
RECOMMENDATIONS FOR IMPROVEMENT:
Recommendations are based on the previous sections of a report and are
suggestions that the analyst feels are required to be implemented in order
to improve further the standing and position of the firm in the financial
57
world. These are thus based on the findings and shortcomings noted in an
organization while working with it and then writing on it. Opinions of
various capable individuals are sought who through their real life
experiences and deep insight are better able to judge whether the course
of action adopted by the organization is going to prove fruitful or does it
require further improvement in the form of changes in its strategies.
Following are the findings and recommendations for various Departments
that were felt are required while consulting the staff members of UBL,
Main Branch Bannu.
7.1 Deposits Department
The comparative analyses reveal that UBL has the lowest share of
Deposits out of the total in the market. Since deposits are the
lifeblood of a bank, it should attract more customers and expand its
deposit base in the following manner
7.1.1 Simplification of Procedures
The procedure of opening an account should be simplified. The
account opening form should be self-explanatory and include
translations in Urdu for those customers who are not well read,
since the fact cannot be ignored that many people do not have a
good understanding of English.
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59
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from far off places and find that the cash counter is closed for the
daily transactions.
7.4 BILLS AND CLEARING DEPARTMENT
The following suggestions are made for this Department keeping in
view the problems noted in it.
7.4.1 Career Development
It has been noted that the officers taking bills for clearing do not
involve themselves much with the other operations of the bank and
thus remain on the very same post and seat throughout their
banking career. This is against the modern day policies of
organizations giving their employees conducive, rewarding and
equal opportunities of prospering and growing with it. Thus, the
Human Resource Department at the Head Office should prepare a
plan that shows the future growth potential of the employees based
on their job performance and evaluation and make it known to all.
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63
xii.
Communication:
Swift communication in any organization is the inevitable need.
But reliable, swift and workable communication is of utmost
importance to the bank. All the operation of the bank is very much
depending on inward and outward communication. And any
disturbance in the free flow of information will bring drastic
consequences. So to avoid such situation a more swift flow of
information is to be maintained. As this will aid management in
taking action in due time, and will also positively affect customer
service. So for the written or oral communication are concerned
that 7Cs are desired to be considered in bank.
PROBLEMS AND SUGGESTIONS
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PROBLEMS:
In every business institution, of closely observed, there are a
number of internal and external problems which are faced by the
employees on the one hand and particular public on the other. During my
two months internship stay in United Bank Limited (Choke Bazaar
branch), which is small period by all means to know every thing about a
big organization like UBL, I realized that generally the employees face
two types of problems.
1)
2)
1.
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Often the employees of the bank work above the scheduled time and they
are not paid over time they just sit to obey the orders of the higher
management.
Another thing, which I observe that they were not, granted leaves as
desired because of shortage of stuff and the nature of duty.
After the application of golden hand Shake scheme the problems of
shortage of stuff are increased very much because the most of the
experience stuff is now retired through GHS Schemes and new stuff is
not recruited. Now the same amount of work is done by lesser number of
employees and the burden per employee is increased.
Although the computer facilities are available with every branch but they
are not utilized properly because of the unavailability of the computer
programmers.
2.
The problems, which relate to the public or say clients, who visit bank in
connection with their business, are as external problems. In Pakistan
literacy rate quite low in backward areas. Nearly 80% of the people are
illiterate businessmen. They do not know the real procedure of cash
transaction and creates various problems for the bank employees. Some
times they ask very false question for nothing during the busy hours.
It is a normal routine for them to bring their friends also having a hope
that they will be offered a cup of tea with some sweet. The main problem
faced by the managers of the bank for which he has no solution is that
these illiterate visitors come to the office and the managers from out side
places for example Lahore and Karachi etc for their clients receive use
telephones.
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SUGGESTIONS:
Regardless of it that a problem is of the external nature or that of the
internal nature, it is necessary for the bank administration to solve them
properly so that the bank can run better towards the achievement of its
predetermine objectives. Using the proper way of administration could
solve both the problems internal and external.
All the employees working in the bank may be granted motorcycle
advance, which may be recovered into easy installments with out interest,
while sanctioning the advance, period of the services should not be taken
into accounts it closes the way for a newly recruited employee. Also there
should be one or two tea breaks for the relaxation of the employees
during the work hours.
Approximately one or two clerks may be appointed other then the
sanctioned strength, so that on the time when one takes leave could be
replaced by the person in extra. This may cause some financial problems
to the bank for which an institution always tries to get side off. But it will
help the bank in negotiating the public properly, which will increase the
good will result in business and profit of bank.
The workers should given leave at any emergent time. This will increase
the desire of the workers for work. Proper remuneration to a worker
brings positive results for an institution. It is therefore suggested that if
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anemployee works more than four hours as over time should be given full
daily.
BIBLIOGRAPHY
i.
ii.
iii.
iv.
v.
vi.
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