Project on UBL

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Money, Banking & Finance|BBA-4TH SEMESTER 1

EXECUTIVE SUMMARY This report covers the vision, mission statement, history, management hierarchy, modes of banking, company’s overview, local & international operations & future strategy of UBL. It also gives information about board of directors, regions where UBL‘s branches are operating & product range offered by the bank is also described here.

This report focuses on commercial, conventional, investment, treasury, overseas & consumer banking, products & services offered by them e.g. UBL wallet, car financing, agri. loans, ATM cards, debit cards, credit cards, online banking.

Consumer banking includes these services that customers can use UBL Money, UBL Chip Credit Card, UBL Business line, UBL Address, UBL Drive, PLS Term Deposits, PLS Savings Accounts, Uni-Saver, Remittances, UBL Cash line, Agriculture Loan, Small Business etc.

Products offered by commercial banking are UBL Profit, Business Partner, PLS Term Deposits Receipts, Special Notice Deposits Receipts, PLS Saving Account, Unisaver, Foreign Currency Savings,Foreign Currency Term Deposits Receipts while services they provide are UBL Wallet, Online Banking, Bank Charges, Forms, UBL e-statement.

Product range of corporate banking includes corporate finance; Loan Syndication, Structured Finance, Term Finance Certificates. Credit extension; Local Currency Facilities, Overdrafts, Demand Finance, Working Capital Finance, Import Financing, Receivable Discounting, Pre and Post Export Financing, LMM Funding. Trade; Documentary Letters of Credit , Standby Letters of Credit & Guarantee, Documentary Collection, Funds Transfer. Cash management; Current & PLS Accounts, Foreign Currency, Cash Collection, Utility Bill Collection, Capital Market Hybrid Products, FX Spot, Forwards and Hedging, Rice/Cotton Financing for Ginners.

In this report you will also find how bank maintains its KYC (Know Your Customer) form that helps it to keep an eye on its account holder, his past, his routine activities, his transaction and a faithful relationship with its account holders & other customers. What measures banks takes against money-laundering and how it deals with suspicious transactions.

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VISION

“ TO BE

THE WORLD CLASS BANK,

DEDICATED

TO EXCELLENCE,

AND

TO SURPASS THE HIGHEST EXPECTATIONS

OF OUR CUSTOMERS

AND

ALL OTHER STAKEHOLDERS ”

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MISSION

OUR MISSION IS TO:

SET THE HIGHEST INDUSTRY STANDARD FOR QUALITY ACROSS ALL AREAS OF

OPERATION, ON A SAUSTAINED BASE.

OPTIMIZE PEOPLE, PROCESSES AND TECHNOLOGY TO DELIEVER THE BEST POSSIBLE

FINANCIAL SOLUTIONS TO OUR CUSTOMERS.

BECOME THE MOST SOUGHT AFTER INVESTMENT.

BE RECOGNIZED AS THE EMPLOYER OF CHOICE.

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HISTORY

UBL was established in November 7, 1959 and is one of the major commercial banks of Pakistan. The Bank is making every effort to meet the up-coming challenges through strategic planning and making the best use of the resources at its command. UBL is a Banking Company, which is engaged in Commercial & Retail Banking and related services domestically and overseas.

On 1st January 1974 banking nationalization act was promulgated which states that all the banks working in the territory of the state are owned by Federal Government. There were 14 banks with 3323 branches within the country and 74 in foreign country offices. On 1st July 1974 under nationalization act Commerce Bank was merged with United Bank.

There were complaints about the services as delay in home remittances, dispatch of cheques, drafts, inefficient counter services, bad debts of the banks etc. were on sector application for privatization of other banks namely UBL and HBL were also invited but the bidding response was quite poor. Due to above problems State bank of Pakistan take over United Bank Ltd in 1996.

A professional team was appointed in mid 1997 to restructure the bank and to commence rightsizing. The management is also in the process of rationalizing the branch network and identifying and recovering its doubtful and classified portfolio. It has planned to institute major improvements in customer services and internal systems to improve efficiency. It also intends to launch innovative products. The bank is increasing resource mobilization through regular deposit campaigns and accelerating the process of recovery of outstanding advances and non-performing assets.

In October, 2002 UBL was sold to Abu Dhabi Group of Industry and Best Way Group of Industry with 51% shares were given to them.

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COMPANY OVERVIEW UBL has assets of over Rs. 300 billion and a solid track record of forty six years - in addition to the convenience of over 1000 branches serving you throughout the country and also at several overseas locations.

UBL has assets of over Rs. 300 billion and a solid track record of forty six years - in addition to the convenience of over 1000 branches serving you throughout the country and also at several overseas locations.

Date Established

November 7, 1959

Branches 1056 Domestic, 15 Overseas Branches

Representative Offices

Tehran

Associated Company

Oman United Exchange Company, Muscat

Offshore Banking Unit

Export Processing Zone, EPZ Branch, Karachi, Pakistan

Subsidiary United Bank AG Zurich, Switzerland

United National Bank Limited, UK (Joint venture with NBP)

UBL Fund Managers Limited

Head Office

State Life Insurance Corp. Building #1,

I.I. Chundrigar Road, Karachi, Pakistan

P.O. Box No.: 4306

Phone: (92-21) 111-825-111

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Gram: "UNITED"

Fax: (92-21) 2413492

BOARDS OF DIRECTORS

Name Designation

Shaikh Nahayan Mabarak Al Nahayan Chairman

Sir Mohammed Anwar Pervez OBE Deputy Chairman

Mr. Atif R. Bokhari President & CEO

Mr. Omar Ziad Jaafar Al Askari Director

Mr. Zameer Mohammed Choudrey Director

Mr. Ahmad Waqar Director

Dr. Ashfaque Hasan Khan Director

Mr. Abdul Rauf Malik Director

Mr. Aqeel Ahmed Nasir Company Secretary Chief Legal

Mr. Aameer Karachiwalla SEVP/Group Chief Financial Officer

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FUTURE STRATEGY UBL expects its strong customer focus to drive the Bank’s future business strategy. On the domestic front the bank is already an established player in consumer banking business. It has taken an aggressive entry into the consumer assets market with full range of product offerings, e.g. car financing, home loans, etc.

UBL plans to increase investment in developing human resources, infrastructure and internal systems to support the aggressive consumer initiative and exploration of new avenues of revenue recognition

UBL is introducing a range of credit cards backed by visa and master card and establish a strong market position through innovation and provision of superior value to the customers

On the international front ,UBL plans to continue to build the core gulf business with special focus on trade, With a network presence in Gulf, New York, Zurich and London UBL has an ideal opportunity to offer correspondent banking services in these key financial centers to a host of small and middle-tier banks in the sub-continent, middle east and Africa

OPERATIONAL STRUCTURE UBL operates 1375 domestic and a subsidiary viz. United Executors and Trustees Company Ltd. as on 30.06.2000. It has 20 overseas branches situated in the UK, USA, UAE, Yemen, Bahrain and Qatar. It also operates one offshore branch in the Export Processing Zone, Karachi and it has representative offices in Cairo-Egypt and Tehran-Iran. It also has a joint venture – Oman United Exchange Co., Oman Muscat and a subsidiary – United Bank A.G. Zurich, Switzerland set up in 1968. It has 21 ATMs with 8 in the UAE, 3 in Bahrain, 1 in Doha, 7 in Islamabad and 2 in Karachi Regions:

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REGIONS

REGION BRANCHES AREAS PROCESSING HUBS

Azad Kashmir

71 4 5

Gujranwala

66 4 4

Islamabad

61 4 4

Faisalabad

81 5 5

Karachi

95 5 5

Mardan

80 5 6

Hyderabad

109 6 7

Multan

102 6 6

Peshawar

71 4 6

Jhelum

73 4 4

Sargodha

68 4 4

Lahore

62 3 3

Sahiwal

61 3 5

Quetta

39 3 3

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MANAGEMENT HIERARCHY OF

CANTT BRANCH

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TYPES OF BANKING

Conventional Banking: The functions and operating modes of conventional banks are based on fully manmade principles. Conventional banking practices are concerned with "elimination. Lending money and getting it back with compounding interest is the fundamental function of the conventional banks.

1. It is very time consuming process because data is not kept in systematic way so you to find out the exact data you have to check out the whole record.

2. In conventional banking old methodology is used means data was collected manually and record was kept in books of accounts to save data.

3. Zakat is not deducted.

4. Fixed interest rate is charged.

5 .On line banking facilities are not provided such as ATM machine, debit card, credit card and

mobile.

6. No letter of credit is open to facilitate the foreign trade.

7 .House financing &auto leasing facilities are not provided.

Commercial Banking:

If a customer have a small or medium-sized business, UBL can assist with the right mix of banking services that will help manage and grow the business. UBL’s experts will facilitate customers in the varied financial situations that they come across. UBL will respond to the needs promptly because UBL understand how many customers, their employees and they depend on UBL.

Consumer Banking: A consumer bank is any bank that accepts deposits, offers services like making private loans to individuals, and allows you person-to-person contact at a specific location. The consumer bank is actually a relatively new phenomenon in the history of banking. Most banks were initially built to serve businesses and countries. They weren’t examples of a consumer bank, since they

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didn’t normally provide services to individuals, unless you were extremely wealthy and your deposits financed some aspects of the bank’s business endeavors. It wasn’t until about the mid 1800s that banks started seeing the value of offering accounts and safe depositing places for the average person 1. It is very easy to find out exact data because record is kept in computer machines in a

systematic way so you can get the relevant data within no time.

2. Data is fully secured because a back up kept in of entire data in computers so that data can be recovered in case if real data is lost.

3. Zakat is deducted on all profit & loss accounts.

4. Different interest rate is charged on different accounts.

5. In consumer banking KYC form is filled by customer in bank when he comes to open an account in bank.

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COMMERCIAL BANKING If a customer have a small or medium-sized business, UBL can assist with the right mix of banking services that will help manage and grow the business. UBL’s experts will facilitate customers in the varied financial situations that they come across. UBL will respond to the needs promptly because UBL understand how many customers, their employees and they depend on UBL.

COMMERCIAL BANKING PRODUCTS

UBL has taken progressive steps and has introduced innovative products and services to

provide customers a variety of banking and financing services.

UBL Profit Business Partner PLS Term Deposits Receipts Special Notice Deposits Receipts PLS Saving Account Unisaver Foreign Currency Savings Foreign Currency Term Deposits Receipts

COMMERCIAL BANKING SERVICES

UBL has taken progressive steps and has introduced innovative products and services to provide you a variety of banking and financing services.

UBL Wallet Online Banking Bank Charges Forms UBL e-statement

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UBL WALLET

UBL Wallet, now with the power and international acceptance of VISA! Wallet VISA ATM & Debit Card has the entire convenience and security customer’s desire and the quality they deserve. This Wallet holds all the cash in customer’s bank account.

UBL WALLET ATM CARD

UBL already has its own network of 214 ATMs in 60 cities, which continues to expand by the day. Moreover, UBL Wallet is now part of the 1 Link and VISA networks. These allow customer to use their UBL Wallet VISA across Pakistan at more than 925 ATMs displaying the 1 Link logos and at more than 900,000 ATMs in 150 countries. It is also acceptable on the MNET network of ATMs in Pakistan. Wallet VISA Card will also be acceptable on all local VISA certified machines displaying the VISA Plus sign.

UBL WALLET DEBIT CARD

With UBL Wallet VISA as debit card, can shop all customer want, eat all customer can or fill up car tank without carrying any cash. Simply use UBL Wallet VISA for direct debit from bank account, along with the convenience of using signature based verification instead of a PIN (Personal Identification Number).

The debit card facility is being offered in association with the Orix and VISA networks, which means that customer you can use their UBL Wallet VISA to conduct a debit transaction at any outlet in Pakistan that displays the ORIX or VISA logos.

The Orix network offers connectivity at more than 5,000 outlets across the country, whereas your UBL Wallet VISA card is also acceptable at 22 million VISA merchant locations, local and international.

UBL ATM FUNDS TRANSFER

UBL Wallet VISA allows three kinds of instant funds transfer through UBL ATMs from your UBL account:

Into any of your UBL account. Into any other UBL account. Into any other participating 1 Link Bank (through the new UBL Inter Bank Funds Transfer

facility) on confirmation, the amount from the cardholder account is instantly transferred to the beneficiary account.

UBL ATMS ACCEPT ALL VISA CARD

In addition to the launch of the Internationally VISA powered UBL Wallet card, we are also proud to announce that our 200 plus UBL ATMs are now VISA certified and are geared up to accept all International VISA Debit and Credit cards.

http://www.ubl.com.pk/services/UBL_ATMs.xls

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ONLINE BANKING

With UBL’s state of the art online banking, you can access your account from more than 350 branches located in 71 cities across Pakistan. Your account gets to travel with you and can be accessed throughout Pakistan, be it Karachi, Kotli Main, Nalka Kohla or Mandara.

Now UBL enables you to do all the following transactions in minutes through designated ON LINE BRANCHES. Salient features of online banking are:

Cash Deposit Cheque Encashment Stop Payment Account Statement

Funds Transfer (Account to account / IBCA)

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

UBL Money UBL Chip Credit Card UBL Business line UBL Address UBL Drive PLS Term Deposits PLS Savings Accounts Uni-Saver Remittances UBL Cash line Agriculture Loan Small Business

UBL MONEY

UBL Money, the Personal Installment Loan from UBL provides you with power, control, convenience and the flexibility to manage your financial requirements and realize your dreams.

UBL Money is a fixed installment loan. It gives you access to funds starting from Rs. 50,000/- up to a maximum of Rs. 500,000/- without any collateral.

UBL Money provides you the flexibility to manage your monthly installments according to your income stream. You can select any tenor from 1 to 5 years in the multiple of 6 months.

PAYMENT OPTIONS

You have the option of getting a Pay Order or transfer to an existing UBL account, Balance Transfer Facility for Credit Cards, or any other loans.

QUICK PROCESSING TIME

Customer’s money will be delivered in the quickest possible time.

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EXCITING FEATURES

Zero-prepayment penalty option Complimentary Credit Insurance Competitive mark up

REPAYMENT OPTION

Customers can pay their installments through a Repayment Account at designated branches.

ELIGIBLE CRITERIA

CUSTOMER IS ELIGIBLE IF:

Customer is within the age bracket of:

For salaried individuals 21-60 years For self employed or Businessmen 21-65 years

Customer’s monthly gross income is:

For salaried individuals Rs. 10,000/- For self employed or Businessmen Rs. 25,000/-

Customer has been:

Employed for the last 6 months or Have been in business for the last 3 years.

CUSTOMER CAN USE UBL MONEY TO:

Pay off their credit card balance Finance their child's education Buy home accessories Finance your vacations Buy anything you wish

GETTING UBL MONEY IS VERY EASY. JUST FOLLOW THE SIMPLE STEPS

Fill the UBL Money application form

Attach a copy of CNIC and proof of income: o A Salary slip if a salaried employee o A Tax document / Bank Statement if self employed

Hand the application form along with documents to any UBL Money sales staff member. If there are any queries, call toll free number 0800-11-825.

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UBL CREDIT CARD

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

The UBL Credit Card …..Mazay Mein Raho

This unique high tech CHIP guarantees 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.

A CHOICE OF REWARDS

Along with exciting Chip Rewards there is a choice between Free Road Miles and Free Talk Time

Spend Rs 5000 anywhere on UBL Credit Card and get guaranteed 3 liters petrol free from any PSO outlet nationwide. If customers spend more, customers get more. So keep driving, keep smiling.

CARD KO SWIPE KARO

AUR LAMBI DRIVE KARO!

Spend Rs 5000 anywhere on UBL Credit Card and get guaranteed 30 minutes free. What’s more, get a free Mobilink Postpaid Connection with UBL Credit Card. If spend more, get more minutes. So talk freely, stay connected.

CARD KO SWIPE KARO

PHIR JITNI CHAHE BAAT KARO!

In case esteemed customers prefer point based catalogue rewards, they can opt for Classic Rewards and redeem points accumulated for an exciting variety of gifts.

Now customer’s can really save big time with UBL Credit Card Balance Transfer Facility! Customers have the opportunity to pay off balances customers owe to other banks

through UBL Credit Card on a low balance transfer rate. UBL Credit Card offers a low rate for BTF of outstanding balances from other cards at

only 1.5% per month. Transferring balances to UBL Credit Card is simply a phone call away.

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ELIGIBILITY CRITERIA

Customers are eligible to apply for the UBL Credit Card if they are:

At least 21 years of age A resident of Pakistan Employed or managing own business

DOCUMENTS REQUIRED

Copy of the Computerized National Identity Card Salary slip/ Salary Certificate (in case of the Employed Applicants) Personal Bank Statement and / or Company Bank Statement (along with business proof),

in case of Self Employed Applicants

BUSINESS LINE

INTRODUCTION

UBL Business line is a complete solution to all your Business Financing needs. With UBL Business Financing facility, customers can now take their business to greater and newer heights, and achieve the level of success that they truly deserve. UBL Business line is a running Finance facility that not only provides funds for growth but also enables customers to capitalize on profitable opportunities.

WHAT IS BUSINESS LINE?

“It is a ‘Credit Line/ OD Facility’ against Residential Property. It is an evergreen credit line that the customer can use for his/her business expansion”

UTILIZE UP TO RS.10 MILLION

Now, UBL Business line is here to solve all the cash flow problems. Customer can utilize up to Rs.10 million with the help of which they can now focus on their business expansion and growth.

INTEREST RATE

For loan of 10 million & above UBL’s interest rate is determined as follows:

KIBOR + bank’s own rate* = total interest

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* Bank’s own rate varies from 4-7%.

LTV AS HIGH AS 70%

UBL Business line offers the facility of availing a financing of up to 70 % of property value. Now that customer can avail a higher amount against their assets, they can plan their growth and expansion exactly the way they want to.

MARK UP ON UTILIZED AMOUNT ONLY

With UBL Business line, now no more need to pay for the entire credit line that a customer own. Business line gives the facility to pay mark up only on the amount that a client utilizes.

FASTER PROCESSING

After completion of documentation requirements, UBL Business line promises a very smooth and fast processing, hence saving the time and frustration.

WIDE ACCESSIBILITY

UBL Business line’s availability in major cities like Karachi, Lahore, Faisalabad, Islamabad & Rawalpindi, is complimented by UBL s countrywide branch network enabling the customer to access his account, and deposit or withdraw cash, no matter where he stands within the country.

THE MORE YOU SPEND THE LESS YOU PAY

Now for the first time, customer can actually save more as he goes on spending more. i.e. now customer no longer have to worry about accumulating more and more payments on their spending, rather they have the consolation that the more he utilize the less he have to pay.

COMPETITIVE RATES

At UBL, customers come first, which is exactly the reason why UBL offer its customer’s such competitive rates that would facilitate them in leveraging their skills to the maximum and in bringing about the success that they deserves.

ELIGIBILITY CRITERIA

If a customer fall in the following criteria, then UBL Business line is just the right choice for him:

Minimum monthly income: Rs. 25,000 and above Age: 25– 65.

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Resident: Pakistani. Self Employed Professional / Self Employed Businessman.

UBL DRIVE:

UBL Drive is a unique auto financing product which offers features, options and flexibility unmatched by any other bank.

NEW CAR FINANCING

UBL Drive allows customer to drive away in their own car by making a down payment of just 10% and to top that with low monthly installments

USED CAR FINANCING

With UBL Drive customer can buy a favorite used car (up to 5 years old) at the most affordable rate.

CASH THE CAR

UBL Drive is not just a car loan; it’s a financing facility that gives cash on customer’s car, he can get up to 75% of his car value.

NO DOWN PAYMENT BEFORE APPROVAL:

UBL Drive is the quick and hassle free route to the car of customer’s choice. Offering for the first time in Pakistan, No Down Payment and processing charges till the application is approved. After approval, customer can take his Purchase Order to any of UBL’s authorized dealers, pay the Total Cash Outlay amount and simply drive away with the preferred car.

NO DOCUMENTS REQUIRED

UBL Drive offers the option of auto financing without requiring any income documents/proof at 5% additional equity.

FREE CAR TRACKING DEVICE

Enjoy security and complete peace-of-mind as UBL Drive becomes the only auto finance product which offers a free Tracker device installed in the car.

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INSURANCE OPTIONS

UBL Drive offers the following insurance options:

Comprehensive insurance Insurance financing for the first year Deductible insurance (risk beyond a certain amount covered at discounted insurance

rates).

PROCESSING CHARGES

Processing charges of Rs. 4,000 will apply.

UBL CASHLINE:

INTRODUCTION

UBL CASHLINE is a personal loan offered to customers. In today's dynamic and hard economic environment where one can be in difficulty due to any shortage of money for some urgent or routine work, UBL CASHLINE guarantees the solution to the customers. This is a loan offered to the customers with a view to investing the bank's funds in a manner as to get good return financially and socially.

This product of the UBL consumer finance offers very unique features and provides complete convenience, affordability and flexibility to the customer. People now days are not in a condition to save voluntarily. The inflation in our economy is one of the major reasons why people feel difficult to save. Saved money lost its purchasing power as the time passes, so people tend to spend them in some business or buy some durables or in any other activity.

SALIENT FEATURES

The UBL CASHLINE is provided to the customers in the form of RUNNING FINANCE. The salient features of the UBL CASHLINE can be categorized in the following three main heads:

CONVENIENT

The convenience in UBL CASH LINE refers to the convenience being provided by the bank to the customer in operating the loan account. The account as mentioned already is provided as RUNNING FINANCE, so the mark up is charged only on the balance being drawn by the customer. This feature facilitates customers and they prefer such loan over others where mark up rate is fixed and has to be paid over the whole loan amount.

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Another way UBL CASHLINE has adopted in providing convenience to the customers is the issuance of cheque book. The following things have brought convenience to the customer for the operation of the account:

CHEQUE BOOK

A cheque book is issued to the customer for the operation of account. The customer can go anywhere in the country and can present the cheque on any online UBL branch and can get the payment. The UBL CASHLINE moves with the customer.

ATM/DE an ATM and a DEBIT card are also issued to the customer availing the facility of the UBL CASHLINE. This provides customer a 24 hours a day, 7 days a week access to the ATM machines for withdrawing cash as per his requirements.

NET BANKING

This facility provided by the bank allows the customer to use his account for any transfer to any account or any person not having a PC at all. This service has brought a revolution unsettling payments.

TEZ RAFTAAR

This facility allows the customer to get cheque delivered to the payee's doorstep within 48 hours. This has helped a lot to the people living abroad and also to those who are working in different cities with their families living in other cities. This is also an extension of the NET BANKING.

FUNDS TRANSFER

This allows the customer to transfer funds between his different accounts. If one account has a debit balance and the other has a credit balance he can instruct bank for any transfer for his own convenience.

SCHEDULING ONE-OFF PAYMENTS

This facility allows the customer to let bank pay his one off payments by NET BANKING is he has allowed the bank to do so.

SCHEDULING RECURRING PAYMENTS

Availing this facility, the customer can ask bank to pay his weekly, monthly or BIT CARD: annual payments via NET BANKING.

ONLINE BILL PAYMENTS

UBL has arrangements with some cellular service companies for the payment of bills. Now the customer can pay MOBILINK, Telenor bills online.

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FLEXIBLE

This feature of the UBL CASHLINE allows the customer to use the sanctioned amount for any purpose he likes. The customer can avail the facility for some of the following reasons or for even others: Home renovation, child education, vacations recreation, marriage, emergencies, short term business needs car purchase, etc.

AFFORDABL

The UBL CASHLINE allows the customer to pay less as the spending is increased. The mark up rate gradually shifts downward as more the spending is done. This saving can be high depending upon the level of spending. This encourages customers to spend more.

BALANCE TRANSFER FACILITY

UBL CASHLINE can be used by the customer for balance transfer.

NO HIDDEN COSTS

UBL CASHLINE is free from any hidden costs. The only charges are Rs.2100 as joining fee; otherwise, it is absolutely free.

QUALIFICATION AREA

The eligibility criteria for the convenience of the bank have been divided into different categories which are as follows:

Salaried employees of approved organizations Salaried employees of nono-approved organizations SEPs Businessmen Government employees Special category

The eligibility standards are as under:

FOR SALARIED

AGE: 21-60 YEARS MONTHLY NET TAKES HOME INCOME: Rs. 10,000 in case of approved organizations and

Rs. 25,000 in case of non approved organizations Contractual employees must have one year of experience

BUSINESSMEN/SEPs

AGE: 21-65 YEARS MONTHLY NET TAKE HOME INCOME: Rs. 25000

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GOVERNMENT EMPLOYEES

MUST BE OF GRADE 18 TEACHERS CAN BE OF GRADE 17

SPECIAL CATEGORY

This category deals with people being eligible on following grounds.

A credit card holder for three months. Availing the READY CASH facility of Union Bank for 6 months.

FORMALITIES/DOCUMENTATION

The documents being asked by UBL in UBL CASHLINE differ as the category of the customer applying for loans differ. The documents required are as under:

COMMON DOCUMENTS

Copy of NIC

SALARIED INDIVIDUALS

3 months salary certificate

SEPs

6 months bank statement Copy of license of profession

BUSINESSMEN

3 years taxpaying certificate Sole proprietorship letter Partnership deed

SPECIAL CATEGORY

Copy of last three credit card bills. Certificate from Union Bank regarding the availability of READY CASH.

PROCESSING

The processing is done in the same manner as in other consumer finance products. The file of the customer is first forwarded to the PROCESSOR. He checks all the documents and credit worthiness of the customer and forwards the file to CIU. CIU finally approves the loan.

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REPAYMENT: the amount loan being utilized during the month is invoiced to the customer and he has to pay it within 30 days. A minimum 5% payment of the principal loan amount being utilized has to be paid, non compliance, of which results in a fine of Rs.500. 15% of the loan amount being sanctioned has to be utilized within 90 days, non compliance, of which results in a fine of Rs. 1000.

AGRICULTURAL LOAN

UBL's agricultural loans on easy terms and conditions to small-scale land owning farmers boost the country's economy and yield greener harvests. UBL enables farmers to buy good quality seeds, fertilizers, pesticides and agricultural implements. Through the Government's Loan Schemes for Hairs, UBL lets your crops prosper and your dreams materialize, making Pakistan's economy stronger.

SMALL BUSINESS

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

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CORPORATE BANKING UBL’s mission is to serve all the corporate needs and ensure full satisfaction through product innovation, personalized banking, and top notch service.

The Corporate Banking Group focuses on attracting and servicing large portfolio customers. The forte is providing exemplary customer service using the "Single Window" concept and product superiority. The Relationship Management team manned by highly qualified individuals from the industry has steadily expanded the customer base and continues to enhance cordial relations with esteemed clients.

The success of CBG has been established from the fact that UBL received the 'No.1 Euro money 2000' Best Local Bank award and recognized it to have outperformed all other banks. In year 2000, UBL was also voted as the best Corporate Bank by the customers of a major foreign bank in a survey. Aggressive marketing combined with professionalism has led to an increase in UBL's market share with top corporate customers and in some cases replacing Foreign Banks. Presently, its portfolio includes the quality names in the country, which were initially confined to foreign banks only.

SERVICES

CBG – offers full spectrum of services.

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CUSTOMER SERVICES

UBL believe in customer retention through quality service that would encourage customers to continue to bank with us their loyalty. UBL uni-service concept strives to attain excellence in customer service. We aim to provide total customer satisfaction through UNISERVICE, which will soon be available at full-service branches covering:

Trade finance Letters of Guarantee Letters of Credit Funds Transfer Remittances Bill Discounting Export Financing Credit Extension

RELATIONSHIP BANKING

This forms the pillar of UBL’s strategy as it is the primary tool towards providing you full satisfaction. Relationship Banking involves:

Assessing and understanding customer needs Providing you advice on your business needs

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Helping you find viable financial solutions for your business problems Acting as the primary contact for you

PRODUCTS RANGE

When customers come to UBL, they get a full range of Products and Services to choose from:

CORPORATE FINANCE

Loan Syndication Structured Finance Term Finance Certificates

FINANCE/CREDIT EXTENSION

Local Currency Facilities Overdrafts Demand Finance Working Capital Finance Import Financing Receivable Discounting Pre and Post Export Financing LMM Funding

TRADE

Documentary Letters of Credit Standby Letters of Credit & Guarantee Documentary Collection Funds Transfer

INVESTMENT/CASH MANAGEMENT

Current & PLS Accounts Foreign Currency

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Cash Collection Utility Bill Collection Capital Market Hybrid Products FX Spot, Forwards and Hedging Rice/Cotton Financing for Ginners

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INVESTMENT BANKING

The Largest Investment Bank in Pakistan IBG provides innovative and unique solutions to its clients enabling them to meet the

challenges of an ever- changing market. Dedicated specialist team of 14 investment bankers. Supported by over 50 relationship

managers in six different locations in Pakistan alone. Well established execution experience. Rich international and domestic investment banking product knowledge. Strong distribution capability. Three specialist business areas:

o Project & Structured Finance o Syndications & Debt Capital Market o E

quity & Advisory

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TREASURY BANKING At UBL Treasury & Capital Markets (TCM), UBL nurtures a culture of Delighting-the-Customer with a complete focus on customer needs for their financial solutions. Today the UBL TCM is a frontrunner in providing:

The narrowest bid/ask spreads and the fastest quotes Dynamic risk-reducing hedging strategies for its customers Innovative Structured Products

Under the new management, the TCM achieved number of milestones. It expedited the launch of Pakistan's first derivative money market product - the FRA (forward rate agreement) in August 2003, and has further closed several similar transactions thereafter. UBL was also the first bank to do a plain-vanilla Interest Rate Swap. It acquired the status of Authorized Derivative Dealer (ADD) - the only domestic bank with this status. It started trading currency option in 2005 and now is a clear market leader. It became the only bank from Pakistan with ISDA primary membership.

UBL TCM is a market maker in both the domestic money market as well as the foreign exchange market. Being one of 11 primary dealers (PD), UBL has one of the largest and strongest balance sheets amongst banks in Pakistan.

UBL was the first local bank to establish a Corporate Treasury team in the Treasury dealing room. The Global Corporate Treasury Business is responsible for sales of all structured and derivative products for UBL. The bank's trade volumes and revenues have grown significantly since the introduction of the Corporate Treasury business. Equities desk is responsible for managing the bank's trading, badla and CFS portfolio. CFS aspires to eventually develop a global equity trading activity for UBL. Structured Products is responsible for developing and packaging plain vanilla derivatives as well as more exotic customer specific products.

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OVERSEAS BANKING UBL, with an integrated network of over 1000 branches globally, with 15 overseas locations, gives direct access to a comprehensive range of better banking facilities to help customers to monitor their business internationally.

UBL HAVE BRANCHES IN

United States of America Qatar UAE Bahrain Republic of Yemen Off Shore banking Unit

AND SUBSIDIARIES IN

United Kingdom Zurich

OPERATIONS OF LETTER OF CDREDIT

WHAT- What is the export letter of credit:

A Series of service provided by the bank in the exporter’s country after it received L/c from issuing bank . Designed for exporters is intended primarily for use in export sales and shipping departments. The contents of export L/C include authenticity of export L/C and amendment of L/C advising the domestic exporter ; transfer L/C ; examining transport documents surrendered by the exporter .Deals with trade financing such as negotiating , bill purchase, discounting on the request of clients .

WHY -To choose export letter of credit:

http://www.ublny.com/

http://www.ubl.com.pk/overseas/qatar.asp

http://www.ubl.com.pk/overseas/uae.asp

http://www.ubl.com.pk/overseas/bahrain.asp

http://www.ubl.com.pk/overseas/yemen.asp

http://www.ubl.com.pk/overseas/epz.asp

http://www.ubl.com.pk/overseas/uk.asp

http://www.ubl.com.pk/overseas/zurich.asp

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Lower risk – Bank credit of the issuing bank replaces commercial credit of the importer , the issuing bank provides undertaking of conditional payments to the exporter. HIGH INITIATIVE- Exporter will obtain the undertaking of unconditional payment from the issuing bank as long as the exporter can guarantee the quality of documents which is completely under the control of the exporter.

WHEN- When to choose export letter of credit:

The exporter has no awareness of or confidence in the credit status of the importer need additional undertaking from the IMPORTER’S BANK.

A letter of credit consists & provides:

A series of flows

Instructions

Money

Evidence regarding the goods and the title to the goods

Handled trough “SWIFT”

Provides security of payments to the importer and exporter.

Transferring the risk of non-payment by the buyer to the Issuing Bank .

Secure method for exporter.

TYPES OF LETTER OF CREDIT

Irrevocable: Where your bank gives a binding undertaking to the Beneficiary provided all

the credit terms and conditions are fulfilled.

Irrevocable and confirmed: Where a bank usually in the Beneficiary's country, adds its own undertaking for which it will charge .Once issued, an irrevocable credit can only be amended by joint agreement of your bank and the Beneficiary and, if confirmed, agreement of the confirming bank as well .

LC Operations in UBL:

United Bank of Pakistan also deals with the “LC” and facilities its customers, the letter of credit. Bank issues it in shape of bill of shipping and bill of lading. United bank issues the LC as “IRREVOCABLE”. Bank is strictly binding on payment of LC.

UBL of Pakistan issues LC For:

1. Perishable goods like glass, fruit, vegetables’ etc. Time duration: (for 3 months)

2. Durable goods like carpets, wooden goods etc. Time duration: (for 180 days)

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TYPES OF ACCOUNTS DEFINITION OF THE BANK ACCOUNT

“A bank account is the establishment of a relationship between a customer and a bank”.

TYPES OF ACCOUNTS

Following are the types of accounts which are performed in the UBL;

Individual accounts Joint account Proprietorship account Private limited company accounts Public limited companies accounts Trust accounts Liquidators accounts Societies, Associations and Clubs etc Local bodies accounts Autonomous and Semi Autonomous Institutions Local /District Zakat/User Committees. Accounts of Govt. Departments.

ACCOUNT OPENING FORM

Account opening form is the document that carries:

The details of a customer The terms and conditions applicable to the relationship Signature /thumb impression of the account holder General terms and conditions applicable to the operating of an account specified by the

bank For further details see Account Opening Form in ANNEXURE.

POLICIES FOR OPENING AN ACCOUNT

All customer accounts will require proper introduction either from UBL staff existing customer of branch/ bank or of another bank. An employee of the branch/ bank

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introducing the account must know the account holder and must possess sufficient information on the new account holder.

Initial deposit required for opening of account is Rs. 10,000/- Account opening form shall be filled in by the account holder in duplicate. The branch

will retain original while the copy returned to the customer against acknowledgment. Letters of thanks shall be sent to both the account holder for correctness of address and

genuineness of introduction. Name and address of nominee (next of kin) must also be obtained in the case of an

individual’s account. Blank columns in AOF &SS card must be crossed or marked” VOID”. PLS Savings accounts shall be opened for individuals (Single or Joint), Charitable

institutions. Provident and other Benevolent funds. In case of illiterate person, the introducer shall also verify the thumb impression on the

AOF. In case CNIC does not contain photograph, photocopy of any other document such as

passport /driving license etc containing photograph shall be obtained. Government accounts shall be opened with approval of competent authority of

concerned Division //department and endorsement of Finance Division.

ACCOUNT OPENING PROCEDURE

The customer who is willing to open an account is provided with an account opening form which he/she has to fill up. In this regard the necessary assistance is also provided to the customer. The customer has to provide following important information in the form:

The currency and the type of account which could be either

Business partner (current account)

PLS saving PLS Unisaver

Nature of account, which is provided in the form in two parts

For individual account For business account

If the customer is opening an individual account then he would have to select any of these options:

Single Joint

If the customer is opening a business account then he would have to choose any of these:

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Partnership Sole proprietorship Societies, Associations and Clubs etc Joint stock company etc

If the customer opens an individual account then he would have to provide the particulars of account such as:

Title of account Key secret words Mailing address Permanent address

If there is a business account then the customer will have to provide the information along with the filling of mandate form and business deed.

Title of account Business name Nature of business Date of commencement of business Office mailing address and head office National tax number etc

ZAKAT DEDUCTION

In current account there is no Zakat deduction but in PLS saving and PLS Unisaver there is a Zakat deduction at 2.5%.

KYC FORM

Know your customer (KYC) is the due diligence and bank regulation that financial institutions and other regulated companies must perform to identify their clients and ascertain relevant information pertinent to doing financial business with them. KYC policies have becoming increasingly important globally to prevent identity theft fraud, money laundering and terrorist financing. In a simple form these rules may equate to answering some questions, but this is the tip of the iceberg and regulators now expect much more. KYC should not be thought of as a form to be filled - it is a process to be undergone from the start of a customer relationship to the end. One aspect of KYC checking is to verify that the customer is not on any list of known fraudsters, terrorists or money launderers, such as the Office of Foreign Assets Control's Specially Designated Nationals list. This list contains thousands of entries and is updated at least monthly. As well as sanctions lists there are lists of third party vendors that track links between persons regarded as high-risk owing to negative reports in the media about them or in public records.

http://en.wikipedia.org/wiki/Due_diligence

http://en.wikipedia.org/wiki/Bank_regulation

http://en.wikipedia.org/wiki/Financial_institutions

http://en.wikipedia.org/wiki/Company_(law)

http://en.wikipedia.org/wiki/Money_laundering

http://en.wikipedia.org/wiki/Terrorist_financing

http://en.wikipedia.org/wiki/Terrorist_financing

http://en.wikipedia.org/wiki/Fraud

http://en.wikipedia.org/wiki/Terrorism

http://en.wikipedia.org/wiki/Money_laundering

http://en.wikipedia.org/wiki/Office_of_Foreign_Assets_Control

http://en.wikipedia.org/wiki/Specially_Designated_Nationals

http://en.wikipedia.org/wiki/Specially_Designated_Nationals

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Beyond name matching, a key aspect of KYC controls is to monitor transactions of a customer against their recorded profile, history on the customer’s account(s) and with peers. Banks doing KYC monitoring for Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) purposes increasingly use specialized transaction monitoring software, particularly names analysis software and trend monitoring software. The generated alerts identify unusual activity which is then subject to due diligence or enhanced due diligence (EDD) processes that use internal and external sources of information on the subject, including the internet. This helps to determine whether a transaction or activity is suspicious and requires reporting to the authorities.

OTHER FACILITIES

Through an account opening form, the customer can also apply for ATM (automated teller machine) card which may be:

Silver (maximum withdrawal per day is Rs. 20,000 ) Gold (maximum withdrawal per day is Rs.40,000)

NOTE: There are no ATM charges for drawing amount from any UBL machine but there are certain charges for drawing money from any other banks machine.

SUPERVISION AND RELATIONSHIP ID

The manger of the branch has to supervise the form filled in the system and after the supervision is completed the system a lot the relationship ID to the account.

LETTER OF THANKS

Once the account is opened a letter of thanks is being posted to the new account holder. It also helps to verify that the address given by the account holder is correct or not.

CHECQUE BOOK

To facilitate the customers to withdraw cash from their accounts or to settle their financial obligations, Cheque book is provided to account holders. Cheques drawn by customers have legal implications under Negotiable Instruments Act; therefore all the best precautions must be exercised in the safe custody of the Cheque books.

CHEQUE FILLING

The cheque should be filled in this manner:

Write the current date Branch name

http://en.wikipedia.org/wiki/Anti-money_laundering

http://en.wikipedia.org/w/index.php?title=Counter-Terrorism_Financing&action=edit&redlink=1

http://en.wikipedia.org/wiki/Due_diligence

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Amount in words and figures (both should be the same) and Instructions on pay section i.e. self. Three signatures one on the front page and two at the back of the cheque (by the

bearer). If overwriting has been done by the account holder then he/she has to sign there too.

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DEPARTMENTS OF UBL

CASH DEPARTMENT

The function of cash department is to prepare Cash Book Position, Statement of the sorting cash, recognition of the different denomination of the currency and other things which relate to the cash procedure.

UTILITY BILLS COLLECTIONS

United bank ltd collects utility bills on behalf of WAPDA, Sui Gas Companies, and Pakistan Telecommunication Corporation Limited by putting the stamp on the utility bills “CASH RECEIVE (Utility Bills)”, Date of received, Signature of the officer receiving the utility bills. After receiving utility bills, bills are posted in the UNI-SYSTEM of the bank and printed the lists of utility bills. These utility bills lists are called Bills scroll form. One copy of the scroll is with the bank for evidence whereas another copy with the receipt of the bills is sent to the billing department of the respective corporation. Commissions of the Received Utility bills are automatically deducted by the “uni-system” of the bank.

PROCEDURE FOR CASH RECEIPT

In cash department I did not work on receipt or payment of cash but I was observed and learnt the following procedure of cash payment and receipt:

The customer / deposit submits cash along with the deposit slip duly filled and signed

The Teller reviews the deposit slip for:

o Amount in words and figures agrees o Date on deposit slip is the same as the date of deposit o Alteration / addition /cutting, if any, is authenticated by customer / depositor o Amount written on counterfoil and deposit slip is identical

In case of cheque of illiterate person filled by the staff Operations subject to the following conditions stipulated below:

o The Pay-in Slip and check when filled/ written must be signed by staff and thereafter counter signed by another staff on reverse prior to accepting cash

o The wording “contents and detailed verified” must be mentioned on the reverse of the pay-in-slip and check against which the signature will be made

o The counter signatory will direct the customer towards the Teller for deposit o The counter signatory will direct the customer towards the Teller for deposit

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o The teller prior to accepting cash must check and ensure that both signatures have been done.

Cash received in excess of Teller’s limit shall require counter signature of supervisor

PROCEDURE FOR CASH PAYMENT

Customer / holder of the order cheque present the cheque to the teller for payment The teller receives the instrument from the customer / holder &gets one signature on

the reverse of the cheque The teller scrutinizes the instrument for ;

o Validity of date i.e. stale /post dated o Amount in word &figure are same o Alteration / cutting are authenticated o Cheque is not mutilated o Nature of the cheque i.e. bearer or order

PROCEDURE FOR ACCOUNT TO ACCOUNT TRANSFER (Against cheque)

Transfer involves transaction to be settled between the customers of the same branch or customer of remote branch in case of authorized UniRemote system user (online) branch

The Teller receives cheque from depositor along with the deposit slip The Teller scrutinizes cheque and deposit slip for any discrepancy and confirms :

o Cheque is signed and in favor of account holder ,endorsed or bearer o Cheque and deposit slip amount agrees o Details and amount on both parts of deposit slip tally o Cheque is not stale /post dated or mutilated o Alteration / cutting addition on cheque, if any is authenticated by the drawer

and on deposit slip by depositor o Cheque is drown on t he same branch or remote branch .in case cheque is drawn

on remote branch ,confirms drawee branch is online o Deposit slip is signed by the depositor

The Teller verifies signature , title of account (if mentioned on cheque and number and posts debit transaction against balance available in unibank system using any of the following two options:

o Teller confirms beneficiary account name and number and posts credit in the customer’s account using Unibank system

o The teller affixes Transfer and branch stamp, signs and delivers receipt to the depositor the Teller affixes bank crossing stamp on the face of the cheque and endorsement is signed by the supervisor.

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REMITTANCE DEPARTMENT

. Remittance is basically the transfer of money which includes:

Demand draft (DD) Pay Order (PO) Rupees Traveler Cheque(TT) Mail Transfer(MT)

MODES OF REMITTING

There are different ways to remit money and the following modes are used to remit the money:

Through cheque Through cash Through letter of instruction(authority letter)

ISSUANCE OF PAY ORDER

Request for issuance of pay order shall be received on our standard application remittance form. Customer’s written request shall fill in the following details:

o Name of beneficiary o Amount of Pay Order o His address and telephone number o Shall attach photo copy of CNIC which shall be compared with original before

attestation If our bonafides account holder, his signature on the prescribed place with account

number shall be obtained. The cash officer / teller shall check remittance form ensuring that all required

information is provided and it is signed Charges as per effective SOC (schedule of charges) shall be applied If pay order is to be issued against cash, amount of pay order and charges shall be

received in cash after proper counting. Cash officer /teller shall affix “Received” cash stamp (preferably red ink pad should be

used) & sign (preferably in red ink) in acknowledgement of having received amount of pay order and, Amount of pay order shall be written in figure and amount of charges shall be circled.

In case cheque is tendered along with remittance form, debit voucher for the charges shall be prepared and both cheque and debit voucher shall be posted in the ledger /system , subject to the availability of clear / effective credit balance and transfer stamp shall be affixed on both vouchers.

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ISSUANCE OF DEMAND DRAFT

Request for issuance of Demand Draft shall be received on our standard application remittance form. Customer’s written request shall fill in the following details:

o Name of beneficiary o City where it is to be drawn o Amount of Pay Order o Mode of payment o His address and telephone number o Shall attach photo copy of CNIC which shall be compared with original before

attestation o Signature of the applicant

if our bonafide account holder, his signature on the prescribed place with account number shall be obtained

The cash officer / teller shall check remittance form ensuring that all required

information is provided and it is signed. charges as per effective SOC(schedule of charges) shall be applied if Demand Draft is to be issued against cash , amount of Demand Draft and charges shall

be received in cash after proper counting Cash officer /teller shall affix “Received” cash stamp (preferably red ink pad should be

used ) & sign (preferably in red ink )in acknowledgement of having received amount of Demand Draft and ,Amount of Demand Draft shall e written in figure and amount of chares shall be circled

In case cheque is tendered along with remittance form, debit voucher for the charges shall be prepared and both cheque and debit voucher shall be posted in the ledger /system , subject t the availability of clear / effective credit balance and transfer stamp shall be affixed on both vouchers.

There are two main types of bills for collection which are as follows:

IBC (INWORD BILLS FOR COLLECTION) OBC (OUTWARD BILLS FOR COLLECTION)

IBC (INWARD BILLS FOR COLLECTION)

Inward bills are of two types one is IBC and the second one is IDBC (inward documentary bills for collection). IBC have the following types:

Demand draft (D.D) Pay Order (PO) Cheques

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These are bills which are from out stationed banks; they can be from any other UBL branch or any different bank i.e National Bank or Habib Bank etc. the bank on whom these bills are drawn (UBL Kuchery road Branch Gujranwala) will debit the customer account mentioned on the bill

and will send payment to the concerned bank through an appropriate mode. Such as in case of any other UBL bank the remitting bank will remit the payment through an advice or if it is any other bank like National Bank of any other city, the mode may be demand draft etc.

OBC (OUTWARD BILLS FOR COLLECTION)

These are the bills which are payable out of station. Here the bank will take the payment from out stationed banks. After receiving the payment the bank will credit relevant customer account.

LOCAL COLLECTION

If any UBL Cantt Branch Gujranwala customer deposits a cheque which is drawn on some other bank this is situated in the same area like Habib Bank Gujranwala. Then the bank will first enter that in the local bills collection (LBC) register and enter the serial number on the cheque and then fill the voucher for it with a duplicate voucher made through carbon paper. Then the voucher (original) with the cheque will be sent to the concerned customer bank like Habib Bank Gujranwala, which will debit customers account mentioned on the cheque and will send the amount to UBL. After receiving the payment the bank will credit the customer amount who deposited the cheque.

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CLEARING DEPARTMENT

Clearing is a system available in banks to collect the proceeds of cheques / others instruments (PO, DD etc,) on behalf of customers from the drawee (paying) banks situated in the same city. Collecting bank acts as an agent of the customer, maintained with collecting banks

OUTWARD CLEARING

Instruments /cheques drawn on other banks are deposited at UBL counters UBL account holders are the payees/ beneficiaries of the instruments /cheques UBL is the Collecting Bank and other banks are paying banks UBL customer accounts are credit as a result of outward clearing.

INWARD CLEARING

Instruments /cheques drawn on UBL are deposited at other bank’s counters UBL account holders are the drawers of the instruments /cheques UBL is the paying banks k and other banks are Collecting banks UBL customer accounts are debited as a result of inward clearing

BENEFITS OF CLEARING

No physical transfer of money Saves time and effort Minimizes the use of cash Security to the banking system/customer Promotes trade and commerce Encourage acceptability of cheques and other instruments

PROCEDURE OF OUTWARD CLEARING

The Teller receive deposit slip and cheques drawn on any other bank /UBL branch in the city and scrutinizes deposit slip /cheques for the following:

o Amount of cheques agrees with amount on deposit slip o Amount in words /figures on cheque /deposit slip agree

o Cheque is bearer, in favor of account holder or endorsed o Crossing and clearing stamps if preciously affixed are cancelled o Cheque is not stale /post dated / mutilated o Cutting /alteration /addition on cheque , if any are authenticated by drawer o Details on both part of deposit slip tally and bear depositor’s signature

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o Deposit slip bears same day’s date otherwise date should be corrected and authenticated by the depositor

The teller affixes bank crossing and (next working day’s) clearing stamp on the face of the cheque, and endorsement stamp on the reverse

The Clearing /Transfer delivery cheques are entered in Unibank system under single entry option or batch entry option.

The Unibank system requires posting and value date entered beside the following Customer a/c &number, drawee bank /branch code, cheque number and amount After entry in the system counter foil is delivered to the depositor duly stamped

“clearing” with date , branch name and code and signed by the teller Endorsement on reverse of instruments is signed by the supervisor /officer(p.a. holder) The funds against the cheque deposited are made available to the customer the same

day or on next day depending upon the nature of clearing that is special or normal A detailed clearing register , schedule and summary will be generated from the Unibank

system which contains all the details of each and every instruments /cheque such as: o Cheque number o Amount of each cheque o Drawee bank name o Branch name

ROLE OF NIFT

By the introduction of NIFT clearing whether inward or outward, inter-bank or intra-bank has become easier & quicker than was in past. UBL also uses the services of NIFT as it is convenient way of clearing of cheques. NIFT complete the clearing process in 12 hours. NIFT charges are Rs 2 to 3 per check from the bank. NIFT is discussed on page-46.

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LOCKERS AND THEIR OPERATIONS:

A locker is a safe custodian of the valuables. There are three types of lockers which are as under:

SIZE

ANNUAL RENT (RS)

SECURITY (RS)

SMALL

1000

2000

MEDIUM

1500

2000

LARGE

2000

2000

A customer can take the locker in the following manner:

He/she should have an account with the bank His/her account balance should be less than 10, 000 rupees He/she will have to fill a locker opening form, and the mandatory requirements for it are

o To fill an SS (signature specimen) card o To provide a copy of his/her identity.

LOCKER OPERATION:

When any customer comes to operate his locker, the banker will have to first enter his attendance in the register along with the date, locker no, key number, time of operation and the signature of the customer. Then the signatures are verified, before allowing him to operate the locker.

A bank official will first enter the master key through which all the lockers are opened and then the customer will enter his key. Customer cannot open the locker by using a single (customers) key master key should be used by the bank official. At last the transaction would be entered in the system.

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INTRODUCTION OF NATIONAL

INSTITUTIONAL FACILITATION

TECHNOLOGIES (NIFT) NIFT - National Institutional Facilitation Technologies (Pvt.). Ltd. was incorporated in September 1995 as joint venture between a consortium of six banks and entrepreneurs from the private sector. All commercial banks and all of their branches in major cities avail NIFT’s services. As of May 2009, 40 commercial banks and their 5571 branches in 184 major cities, 20 data centres utilize NIFT’s services.

NIFT has setup elaborate data centers geared to provide automated services for document processing particularly in the payment arena. Modern image based facilities have been established at Karachi, Lahore, Islamabad, Peshawar, Rawalpindi, Hyderabad, Multan, Faisalabad, Quetta, D.I.Khan, Sialkot, Gujranwala, Sukkur, Bahawalpur, Muzaffarabad, Jhelum, Abottabad, Mirpur, Sahiwal and Sargodha. The services include cheques clearing, reconciliation, ‘return’ (unpaid) cheques processing, same day clearing (express – 2 hrs. clearing service), intercity clearing and inter branch & inter bank settlement. Services are provided at individual branch level to over 5571 branches in 184 major cities and smaller cities.

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NIFT has set up a grid of automated clearing which provides efficient and cost effective intercity clearing involving 20 major and over 164 satellite cities in Pakistan. NIFT has facilitated setting up of citizen data base by National Database and Registration Authority (NADRA) by image archiving of 65 million census forms. NIFT has progressed the ACH facilities by providing web based facilities. The clearing results are now accessible by banks and branches through the NIFT's web portal. In addition to providing services to the financial industry, NIFT is a trusted service provider to major utility companies for utility payment services. Both gas distribution companies of Pakistan (SSGC and SNGPL), Telecommunication Company (PTCL), Cellular companies (MOBILINK and Telenor) exploit NIFT's Services). NIFT also provides exclusive item processing services to large corporations which includes oil refinery, insurance companies and other businesses.

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ANTI-MONEY LAUNDERING Money laundering is the practice of disguising illegally obtained funds so that they seem legal. It is a crime in many jurisdictions with varying definitions. It is a key operation of the underground economy. In US law it is the practice of engaging in financial transactions to conceal the identity, source, or destination of illegally gained money. In UK law the common law definition is wider. The act is defined as taking any action with property of any form which is either wholly or in part the proceeds of a crime that will disguise the fact that that property is the proceeds of a crime or obscure the beneficial ownership of said property. In the past, the term "money laundering" was applied only to financial transactions related to organized crime. Today its definition is often expanded by government and international regulators such as the US Office of the Comptroller of the Currency to mean any financial transaction which generates an asset or a value as the result of an illegal act, which may involve actions such as tax evasion or false accounting. Courts involve money laundering committed by private individuals, drug dealers, businesses, corrupt officials, members of criminal organizations such as the Mafia, and even states. Money laundering is ipso facto illegal; the acts generating the money almost always are themselves criminal in some way (for if not, the money would not need to be laundered). The United Bank Limited (UBL) has acquired the services of IBM GBS for implementation of an Anti-Money Laundering (AML) solution. Mantas One is widely accepted as one of the best AML solutions in the market and this deal comes in line with the Banking Act which includes new provisions to combat financial crimes. The solution from IBM will help UBL meet stringent compliance standards and effectively replace the existing applications and manual processes. IBM GBS is the first implementation partner for this solution in Pakistan. IBM GBS already has a successful implementation of Mantas to its name in local market.

http://en.wikipedia.org/wiki/Underground_economy

http://en.wikipedia.org/wiki/Underground_economy

http://en.wikipedia.org/wiki/Common_law

http://en.wikipedia.org/wiki/Organized_crime

http://en.wikipedia.org/wiki/Office_of_the_Comptroller_of_the_Currency

http://en.wikipedia.org/wiki/Tax_evasion

http://en.wikipedia.org/wiki/False_accounting

http://en.wikipedia.org/wiki/Mafia

http://en.wikipedia.org/wiki/Ipso_facto

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SWOT ANALYSIS

Strengths:

Skilled staff & products is one of the main strengths of UBL. UBL offers better rate on COD (Certificate of Deposit). Consumer financing is its salient feature. UBL has made Car Loaning very easy. Credit Cards are easy to use with relatively low interest rate. UBL grants loans to farmers as Agricultural Loans UBL is very much interested in Project Loaning (e.g. Dairy Farming, Poultry Farming).

Weaknesses:

Lose control of management ends in fictitious accounts. Lose control of management results in financial loss and penalty. Negligence of staff and management is also a cause of suspicious transactions & loss.

Opportunities:

U.Tip (United Treasury Term Investment) special rate is offered on it. UBL should reach every sector & class of country by increasing its branches. New customer friendly projects should be launched to raise number of customers.

Threats:

World economic recession is a great threat not only for UBL but also for all the banks. Current economic recession is resulting in decreased foreign reserves. Almost no investment is causing G.D.P to decrease. Insolvency of customer is one of the important, bank is facing.

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GLOSSARY A

ADD:

Authorized Derivative Dealer

AML:

Anti-Money Laundering

Automated teller machines (ATMS): An unmanned electronic device that performs basic teller functions, such as accepting deposits, cash withdrawals, and account balance inquiries.

Agriculture Loan:

That type of loans which are being given to the farmers for the cultivation of crops.

AOF:

Account opening form (AOF) is used by the customers to complete the written requirements for the records to open an account in a bank.

B

Bill Discounting:

Bill discounting is a major activity with some of the smaller Banks. Under this type of lending, Bank takes the bill drawn by borrower on his (borrower's) customer and pays him immediately deducting some amount as discount/commission. The Bank then presents the Bill to the borrower's

customer on the due date of the Bill and collects the total amount. If the bill is delayed, the borrower or his customer pays the Bank a pre-determined interest depending upon the terms of transaction.

Bad Debts:

Bad debt is the portion of receivables that can no longer be collected, typically from accounts receivable or loans.

C

COD:

Certificate of Deposit

Current account:

Current account is an account with minimum amount of restrictions. Customer needs this account only if customer want to make a number of deposits and withdrawals in a single day and many of the deposits are drawn on outstation banks. Banks accept deposits in current account and allow unlimited withdrawals subject to a minimum balance.

Commercial banking:

A commercial bank is a type of financial intermediary and a type of bank. It raises funds by collecting deposits from businesses and consumers via checkable deposits, savings deposits, and time deposits. It makes loans to businesses and consumers. It also buys corporate bonds

http://en.wikipedia.org/wiki/Anti-money_laundering

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and government bonds. Its primary liabilities are deposits and primary assets are loans and bonds.

Credit ratings:

Also known as bond ratings these are gradings by agencies such as Standard & Poor’s or Moody’s Investors Services to classify the investment worthiness of a company’s debt.

Cash deposit:

Cash deposited in cleared funds by a Purchaser Class Market Participant in order to meet prudential requirements.

Consumer banking:

Consumer Banking Group focuses on consumer based lending products, high net worth individuals and technology based products to provide satisfaction to the consumer.

CNIC:

Computerized National Identity Card.

Car tracking device:

Car tracking device is a hi-tech intelligent car security system through which a car is tracked if lost or stolen.

Comprehensive insurance:

Term used for a variety of insurance policies providing broad protection.

Cheque book:

A cheque book means you don't have to carry money around, and combined with your Cheque Guarantee Card*, allows you to pay for goods and services from home or

when you're out and about. For your convenience, you'll find paying-in slips at the back of your cheque book.

CIU:

Credit information unit

Corporate banking:

UBL’s mission is to serve all customers’ corporate needs and ensure full satisfaction through product innovation, personalized banking, and top notch service.

CBG:

Corporate banking group

Credit Extension:

Extension of credit with an understanding by a creditor and debtor at the time it is made that delay or failure to make repayment could result in the use of violence or other criminal means to cause harm to debtor’s person, reputation, or property.

Corporate finance:

The processes by which companies raise capital, especially to fund growth, acquisitions etc; the division of an investment bank which advises on acquisitions, mergers, bid defences, restructures and disposals

Cheque book requisitions:

This is a formal written request for attaining a cheque book needed by the customer.

Clearing:

The procedure through which the clearing house or association becomes the buyer to

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each seller of a futures contract, and the seller to each buyer, and assumes responsibility for protecting buyers and sellers from financial loss by assuring performance on each contract.

Credit Card:

The card which is issued on customers credibility without taking any security through which customer can do shopping as well as withdraw cash from it.

D

Debit card:

A debit card is a plastic card which is issued against account and provides an alternative payment method to cash when making purchases.

DD demand drafts:

Demand Drafts are the most economical way to make payments or transfer funds overseas. Customer can purchase demand drafts in just about any currency and they can be cashed worldwide.

E

Export Financing:

A range of financing products (loans. guarantees, letters of credit, insurance etc.) in support of a variety of activities which help firms expand into new export markets.

F

Future strategy:

Future strategy sets out the vision and principles to guide into the future as an internationally successful business.

Funds Transfer:

The funds transfer service is a real-time gross settlement system in which money is withdrawn from one account and transferred into a different account.

I

IBC:

The cheques drawn on the bank when comes from outstation, it is called inward bills for collection.

Import Financing:

Import financing provides importers who have orders from domestic customers, or foreign customers backed by a letter of credit, with the necessary financial backing to provide overseas Supplier with a letter of credit to guarantee payment of goods.

Investment banking:

It assisted public and private corporations in raising funds in the capital markets (both equity and debt), as well as in providing strategic advisory services for mergers, acquisitions and other types of financial transactions.

K

KIBOR:

Karachi Inter Bank Offer Rate

L

LTV:

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The loan-to-value (LTV) ratio is a mathematical calculation which expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property.

Letters of Guarantee:

A letter from a bank to a brokerage firm which states that a customer (who has written a call option) does indeed own the underlying stock and the bank will guarantee delivery if the call is assigned.

Letters of Credit:

A letter of credit is a guarantee of payment by a bank (issuing institution) to a third party for a specific amount of money, if certain conditions are met.

Loan Syndication:

A group of banks sharing a loan.

M

Mission:

The part of a goal or endeavor assigned as a specific responsibility of a particular organizational unit. It includes the task, together with the purpose, which clearly indicates the action to be taken and the reasons.

Markup:

Markup is the difference between invoice cost and selling price. It may be expressed both as a percentage of the selling price or the cost price and is supposed to cover all the costs of doing business plus a profit. Whether markup is based on the selling price or the cost price, the base is always equal to 100 percent.

N

Net banking:

This facility provided by the bank allows the customer to use his account for any transfer to any account or any person not having a PC at all.

NIC:

National identity card

O

OBC:

Outward Bill for collection, the cheques drawn on the bank that is out of city. These cheques are not collected through NIFT.

Overdrafts:

The word overdraft means the act of overdrawing from a Bank account. In other words, the account holder withdraws more money from a Bank Account than has been deposited in it.

Overseas banking

P

PLS:

Profit and loss sharing

PO Pay order:

It is a document which instructs a bank to pay a certain sum to a third party. Such orders are normally acknowledged by the bank which provides a guarantee that the payment will be made.

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R

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Retail banking:

Retail banking is typical mass-market banking where individual customers use local branches of larger commercial banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth.

Remittances:

Transfer of money is known as remittances.

Recurring payment:

The payments which are being made on regular basis are known as recurring payments.

Receivable Discounting:

The Receivables discounting means the assignment for consideration of client’s receivables due in the future, which have arisen from deliveries of goods or services.

Ready cash:

Ready cash - is a non-interest bearing, convenient, flexible account and can be accessed anytime of the day or night.

S

Stale cheque:

The cheques having the expiry date, which is of six months, are called post cheques.

SS Card:

Specimen signature card is card on whose basis cheque is cashed.

Supplementary cards:

The card which is issued on behalf of the basic customer to first prior relative, cousin, friend, spouse etc is a supplementary card.

Small Business:

A small business may be defined as a business with a small number of employees.

Structured Finance:

Structured finance is a broad term used to describe a sector of finance that was created to help transfer risk using complex legal and corporate entities.

Saving account:

This account is ideal for parking the temporary savings. This account gives a nominal rate of interest and customer can withdraw money as and when the need arises.

T

TEZ RAFTAR:

Trade finance:

This program improves market-based access to, and delivery of, SME finance, including the regulatory and credit information infrastructure.

Term Finance Certificates:

A certificate of deposit with a longer time to maturity is TFC.

Treasury banking:

TCM:

Treasury & Capital Markets

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Teller:

Cashier is now known as a teller who works in the cash department.

U

UBL Money:

UBL Money, the Personal Installment Loan from UBL provides customer with power, control, convenience and the flexibility to manage financial requirements and realize customer’s dreams.

V

Vision:

The long-term desired future state of an organization is a vision. Visions should inspire and motivate.

VISA Card:

VISA Card is a card that bears the Visa symbol and which enables a Visa cardholder to obtain goods, services or cash from a Visa merchant or acquirer.

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ANNEXURE

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BIBLIOGRAPHY

United Bank Limited (Cantt Branch)

Bank Morr, Bazar Area

Gujranwala Cantt.

Web References:

Website <www.ubl.com.pk>

Website <www.google.com>

Website <www.wikipedia.com>

Website <www.answers.com>

Website <www.dailytimes.com.pk>

http://www.ubl.com.pk/

http://www.google.com/

http://www.wikipedia.com/

http://www.answers.com/

http://www.dailytimes.com/

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Project on UBL

Documents

Transcript of Project on UBL