Title Page Qurtuba 2

8/11/2019 Title Page Qurtuba 2

1/71

[ I N T E R N S H I P ] page 8

PROJECT

[Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Typethe abstract of the document here. The abstract is typically a short summary of the contents of the document.]

Qurtuba Universityof Science & Information Technology

Dera Ismail Khan


2/71

ASSIGNMENTON

INCENTIVE

Submitted to:SIR. GOHAR

SubmittedBy:

KASHIF RIAZROLL NO.3

BBA (4th semester)

Session: 2010

Subject: Human Resources Management

Qurtuba Universityof Science & Information Technology

era Ismail !han



3/71

INTERNSHIP REPORT ON

UNITED BANK LIMITED OF PAKISTAN

External Examiner:

Sinat!re""""""""""""""""""""""

Dire#t$r:

PROF% &USAIR H A'AN

Sinat!re""""""""""""""""""""""

S!(er)i*$r:

MA+AM% AKHASHA IMRANI

De*inati$n Le#t!rer

Sinat!re""""""""""""""""""""""



4/71



5/71



6/71

PREFACE

Banking is the backbone of the economy of any country. In akistan! banks are no" getting

the attention and support of the go#ernment! to nourish and initiate the de#elopmental

pro$ects in this %ountry. Banks ha#e also attained a high le#el of initiation! producti#ity! and

gro"th. ne such bank "ith ne" policies and strategies pushing forth to"ards progress is

Unite" #an$ %imite"! "hich has since its inception sho"n remarkable achie#ements and

disco#ered ne" a#enues of inno#ati#e banking.

During my t"o months Internship in 'B(! )ain Branch Bannu! I ac*uired first hand

information about %onsumer Banking of the bank.

+eport "riting is in fact a crucial e,ercises because the performance of a student is $udged

through this report. I ha#e tried my le#el best to co#er e#ery aspect of this speciali-ed

banking acti#ity! asses the "orking and performance of the %enter and for"ard solutions for

its further impro#ements.

number of persons ha#e offered their help and guidance in "riting this report. I e,press my

thanks to my super#isor )+./TB K01! and my manager )+. 23ID K01. I "ould

also like to thank to the other staff members of 'B(! especially )+. 01I/ '((0

K01 ! "ithout "hose support it "as impossible for me to do this tedious $ob.

RS' (E'(OO

##)IT *'O+S,

Roll +o-./0

Session 0112)31



7/71

ACKNO'LEDGEMENT

In completion of this "ork I am thankful to lmighty ((0! as I firmly belie#e! "ithout

his gracious help4 this accomplishment "ould not ha#e been possible.

/irst and foremost! my deep appreciation! gratitude and indebtedness to my super#isor

)+./TB K01! (ecturer! Institute of )anagement Sciences! 'ni#ersity of Bannu! for

his continuous encouragement! moral support and generosity in sharing his time and

kno"ledge during my studies.

I "ish to e,press my sincere gratitude to personnel of 'B(! )ain Branch! Bannu! for their

help and guidance during my Internship.

Thanks to the constraints of academic protocols! that those "ho "ere and are al"ays first in

my mind are being mentioned last. They are my parents and my lo#ed ones. It is! I belie#e!

their sincere prayers! "hich "ere a constant source of strength and inspiration to me that

resulted in the completion of this "ork. I dedicate this "ork! blended in my boundless lo#e

and affection! to them.

RS' (E'(OO

##)IT *'O+S,

Roll +o-./0

Session 0112)31



8/71

E,ECUTIVE SUMMAR-

1o" a day5s strong and efficient capital and financial institutions are the basic

re*uirements of each country. So no country can be considered strong "ithout ha#ing strong

enough capital and financial institutions and markets. ne of the components of these

financial institutions are the banks. 1o one can deny the role the banks are playing in the

economic de#elopment of a country.

In akistan5s banking sector! 'B( is one of the leading commercial banks. 3ery

reno"ned bankers such as I.I. %hundrigar and gah 0assan bidi established 'B( in 6787.

/rom the #ery beginning! 'B( "as sho"ing #ery good performance but in 679: after the

nationali-ation of commercial banks! the bank has recei#ed some #ery se#ere financial

shocks. The shocks recei#ed in 6778 "ere so se#ere that SB had to assume the control of the

bank in order to sa#e it from bankruptcy. But after taking o#er the management of the 'B(

by the ne" set;up under the leadership of


9/71

TB(> / %1T>1TS

S-+o- To4ic Page +o-

reface I

ckno"ledgement ii

(ist of Tables #i

(ist of =raphs and %harts #ii

(ist of cronyms #iii

>,ecuti#e Summary i,

Cha4ter 5 3

6. I+TROUCTIO+

6.6 Background of the Study 3

6.? b$ecti#es of the Study 3

6.@ Scope of the Study 3

6.: Importance of the Study 3

6.8 (imitations of The +eport 0

Cha4ter 5 0

?. E6O%UTIO+ O7 #+!I+8

Introduction /

?.6 =ro"th and 0istory of 'B( /

?.? Subsidiaries 9

?.@ 2oint 3enture 9

?.: +ole of 'B( in 1A/ :

?.8 )ission Statement of 'B( :

?. b$ecti#es of 'B( :

Cha4ter 5 /

@. OR8+I;TIO+% STRUCTURE

@.6 'B( rgani-ational Structure ,change Department 3.

:.8 d#ance department 01Cha4ter 5 :

8. SER6ICES & PROUCT O7 U#%

8.6 =>1>+( D>SIT 0/

8.? %'++>1T D>SIT 0/

8.@ S3I1= D>SIT 09

8.: /IC>D D>SIT 0:

5.5 '1I;%S0 0:

5.6 'B( A((>T 3IS %+D 02

Cha4ter 5 2

. S>OT +%?SIS

.6 Strengths 0=

.? Aeaknesses 0=

.@ pportunities /1

.: Threats /1

Cha4ter 5 5S.

To increase industriali-ation in the country.



19/71

To pro#ide financial help to the farmers.

To pro#ide employment opportunities.

To make people more of mind to ha#e sa#ing habits



20/71

C'PTER /

OR8+I;TIO+%

STRUCTURE



21/71

+=1I

rgani-ational structure of a firm pro#ides boundaries for authority of

persons and clarifies indi#idual responsibility and authority. It sho"s "ho is

responsible to "hom! and "ho has the authority to gi#e orders to someone. n

organi-ation ha#ing dual authority or #ague structure "ould not ha#e clear

direction and "ill face hurdles in getting its goals and ob$ecti#es. Therefore! it is

#ery important for any organi-ation to ha#e a "ell;established structure of

responsibility and authority. n organi-ation structure should be so designated

to clarify the en#ironment so that e#eryone kno"s his duty and "ho is

responsible for "hat. It results to remo#e obstacle to performance caused by

confusion and uncertainty of tasks and to furnish a decision making

communication net"ork reflecting and supporting enterprise ob$ecti#es.

3.1 %B! O")*+,*,O+*! S"%/%"0:

'B( also has a "ell defined formal organi-ational structure. 'B( is a

#ery #ast organi-ation. In the organi-ation set up of 'B(! the highest authority

rests "ith Board of Directors "hich consists of %hairman! Deputy %hairman!

resident & %> and the directors. In "hich four directors are from 'B(! one

from akistan Banking %ouncil! one from )inistry of /inance and one "ho is

also the secretary of the board. So the Board of Directors is an eight member

team! and is responsible for policy formulation and making important strategic

decisions.



22/71

The authority! "hich is second highest! lies "ith e,ecuti#e committee. It

consists of se#en members! including the president and secretaries are in charge

of di#isions. The members are Senior >,ecuti#e 3ice resident HS>3 of 'B(.

There are t"enty di#isions! "hich ha#e their o"n Senior >,ecuti#e 3ice

resident HS>3T. >,ecuti#e 3ice resident H>3! or Senior 3ice resident

HS3! the



23/71

S>3 to international di#isions manages the operations of foreign countries

branches. The rest of the di#isions "ork along their functional lines as sho"n in

the organi-ational chart.

t the 1ational le#el! 'B( has a net"ork of branches spread all o#er the

country and its field operations are one of the most e,tensi#e among the leading

banks in akistan. t pro#incial le#el the bank is managed by S>3! "ho is

assisted by =eneral )anager H)! "ho is >3 or S>3. The ) is

responsible for either a number of regional areas or in charge of #arious

pro#incial departments such as dministration! =eneral +eco#ery! (oans!

Inspection! etc. The comple,ity and e,tensi#eness of the operations in a gi#en

pro#ince determine the number of )s. )s are assisted by circles e,ecuti#es

"ho are of the rank of S>3 or 3.

The entire country is di#ided into %ircles "hich are further di#ided into ach -one is comprised

of a number of branches! "hich are managed by branch managers "ho are

mostly =rade I or =rade II officers. Some large si-ed branches are also

managed by 3s.

3.2 ,,S,O+ O %B!4S O,/0

Basically there are t"o types of offices in 'B(

6. 0ead ffice



24/71

?. +egional 0ead *uarters

3- 'ea" Office

0ead office of 'B( is in Karachi. It e,ercises o#erall control o#er

the bank. The head office H0M has #arious functions.

It formulates polices and ensures its implementation.

To super#ise and control the operations of the regional offices.

To formulate policies and ensure its implementation by the field offices.

To dealNliaison "ith foreign donors like IB+D HAorld Bank! sian

De#elopment Bank! Islamic De#elopment Bank! K/A H=erman Bank!

/) 1etherlands etc.

To deal "ith )inistry of /inance.

To super#ise +0Ms.

To sanction loan applications recei#ed from the branches.

To deal "ith ministry of finance.

0- Regional 'ea" Quarters

There are >le#en +egional ffices of 'B( "hich fully cooperate

"ith the 0ead ffice. 'B( +egional ffices performance "ith reference



25/71

to sanctions! disbursement! reco#eries! and deposit mobili-ation is of #ital

importance to the bank operations. The functions are as follo"sO

To implement the policies formulated by the 0ead ffice.

To e,tend the credit facilities by keeping in #ie" all the prescribed

conditions.

To reco#erNcollect the e,isting long;term credits e,tended by the bank as

per schedule.

To assist customers in the process of de#elopment by ad#ancing loans for

#iable financial pro$ects.

ll the 6J8 'B( branches are the representati#es of the bank. These

branches pro#ide commercial as "ell as non;commercial banking facilities.

3arious structures in#ol#ed in the organi-ation of 'B( are gi#en belo".



26/71

/-/ Organiational 'ierarchy Chart


#oar" of irectors

EDecutive Committee

Presi"entCEO

SE6P

E6P

S6P

6P

6P

Office 8ra"e 3

+on Clerical Staff Clerical Staff Officer 8ra"e III Officer 8ra"eII


27/71

.%/ Orani0ati$nal Hierar#12 C1art $3 #$n*!mer *e#t$r

in UBL


#oar" of irectors

EDecutive Committee

Presi"entCEO

8rou4 EDecutive

8lobal Sales 'ea"

'ea" Secure" 7inancing

+ational Sales (anager

Senior Sales (anager

Regional Sales (anager

+on)Clerical Staff Processors Relationshi4

officers

Relationshi4

(anager

Head Un-secured

Financing


28/71

/-: %ocation ma4

AIT0 an integrated net"ork of o#er 6JJJ branches in akistan as "ell as #erseas!

'B( gi#es you direct access to a comprehensi#e range of better banking facilities to help you

monitor your business locally as "ell as internationally.



29/71

""".ubl.com.pk

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


30/71

C'PTER 9

EPRT(E+TTIO+



31/71

EPRT(E+TTIO+

'B( like other commercial banks established #arious departments for the

performance of #arious functions. Some of the departments of 'B( are /oreign

>,change department! d#ance Department! ccounts Department! Deposit

Department and +emittance department etc.

1o" "e "ill highlight the #arious function performed by the different

departments in the 'B(.

9-3- CCOU+TS EPRT(E+TA

The ccounts department of 'B( mainly deals in the accounts of

customer maintained at the bank. The accounting book maintained for these

ser#ices is kno"n as cashbook. The summary book and ledger are maintained

through computer.

The cashbook is used for balancing the cash recei#ed and cash paid at the

end of the day.

!in"s of ccountsA

i- %urrent ccount

ii- Sa#ing ccount

iii- /i,ed ccount

i- Current ccountA



32/71

There is no restriction on the deposit and "ithdra"als of money in this account..

ii- Saving ccountA

In akistan sa#ing deposit account can be opened "ith a #ery small

amount of money! and the depositor is issued a che*ue book for "ithdra"als.

+eturn is paid at a fle,ible rate. %alculated on by yearly basis. 0o"e#er!

"ithdra"als of limited accounts are generally allo"ed only one or t"ice a "eek.

The consumers ha#e to gi#e a notice of about t"o "eeks before the "ithdra"als

of large amountF the minimum amount of money re*uired for opening the

sa#ing ccount is +s. 8JJN; "hile to remain the Nc is running position the

account holder has to maintain a balance of +s. 6JJN; for the "ithdra"als are

concerned there is no restriction but the bank discourages #ery regular

"ithdra"als of small amounts.

iii- 7iDe" ccountA

EThe deposits that can be "ithdra"n after a specified period of time are

referred to as fi,ed or term deposits.F The account holder keeps a specified

amount of money for a definite period of time. The amount deposited is not

"ithdra"al by che*ues. nd after the maturity of the pre#iously agreed rate of

return.

single indi#idual! partners and companies! too can maintain such

accounts as "ell. The period of "hich these deposits are held by the bank



33/71

ordinarily #aries from three months to J months "ith the agreement made

bet"een the customer and the banker.

iii- #usiness #an$ ccount-*## C,A

This is the special type of ccount HNc offered by 'B(. This type of

Nc is opened for the students and salary holders. In this Nc there are some

facilities offered for the Nc holder such asPP..

I. 1o restriction of minimum balance.

II. T) facility.

III. 1o restriction on dra"ing.

I3. Transfer facility.

3. +ecei#ing from others Banks "ith minimum commission.

3I. +ecei#ing of salary from others Banks before 6 stof the month.

9-0 RE(ITT+CES EPRT(E+TA

This department is concerned "ith the transfer of money from one place

to another. In this! #arious modes of transferring money are a#ailable "hich are

discussed belo".

- (ail Transfer *(T,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 "ith the



34/71

amount of money he "ants to transfer. The concerned bank officer "ill prepare

the necessary #ouchers to make the mail transfer complete. It contains on4

6 ebit 6oucherADebiting the account holder for the amount to be sent

plus the commission and postage charged.

? Cre"it 6oucherAcredit the dra"er branch

@ (ail Transfer RegisterAThe remittance is entered in the mail transfer

issue register.

But if the person is not an account holder in the initiating branch! then he

has first to deposit the stated money "ith the same bank and then the abo#e

process starts.

#- Telegra4hic Transfer *TT,A

eople "ho "ant to transfer money *uickly and "ithout delay use this

type of transferring money. This type of transfer is also #ery simple. The person

"ho "ants 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. fter the amount is deposited "ith cashier! the officer in charge

remittances "ill prepare the TT message. The TT message also carried a test

number "hich is a sum of #alues deri#ed from number items like date! amount!

and the dra"er branch consecuti#e number etc. then this telegram is sent to the

bank "here the money is to be transferred. fter recei#ing the telegram the



35/71

dra"er bank makes payment after the test number is correctly decoded

according to the procedure prescribed.

C- eman" raft *,

In this "ay the person "ho "ants to remit money goes to the bank and

fills the application form by filling the name of the dra"er branch! amount and

the payee5s name. The amount to be remitted is deposited "ith the cashier along

"ith the commission on DD and the in charge of remittances department "ill

prepare the instrument. It is signed by t"o officers of the branch and is then

handed o#er to the applicant. The amount can be recei#ed by presenting DD to

the dra"er branch personally or through a bank.

. Uni remote *O+ %I+E TR+S7ER,-

It is the most faster transfer of money from one bank to another "ith in the

country.

Thorough on line facility you can transfer the amount from one city to

another city in no time "ithout commission Hif you are account holder of the

Bank.

In this method the transferor Nc are Debited by the Bank and the

transferee Nc are %redited Hto "hom the amount is transferred by his Bank

"here he has Nc.



36/71

The amount is transferred in no time. nline transfer bring great re#aluation in

the business "orld 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 sa#e his tra#eling charges

! as "ell as he also not close his business of the buying of goods for the

business.

9-/ EPOSIT EPRT(E+TA

ne of the important functions of the bank is to recei#e

surplus money from the indi#iduals! firms and institutions etc. It can be said

about the deposit that it is the lifeblood of any bank. bank cab not runs its

business "ithout the deposits.

The bank usually recei#es deposits in the follo"ing type of accounts! "hich are

as under.

3, %urrent ccount

0, Sa#ing Deposit ccount

/, /i,ed Deposit or Time Deposit

9, %all Deposit

QThe classification of deposit chiefly on the basis of time and the purpose

for "hich the account is opened "ith the bank.



37/71

1o" "e "ill study the #arious types of deposits in detailO

3- Current ccountA

This type of deposit is "ithdra"al by crepes "hene#er the customer

dra"s crepes on this account. s such deposit is also termed demand deposit.

In akistan! bonds do not allo"ed any interest on such deposit. nd the bond

treat these deposit as current liabilities. The banker also re*uires the customer

to maintain a minimum amount of balance. If the customer fails to do so! then

bank makes deduction from such accountsNdeposits under the heading on

incidental chargers.

E'ntil a fe" decades bank! the proportion of current deposits in relation

to fi,ed deposits "as #ery small. In recent years! ho"e#er! the position has

changed remarkablyF.

0- Savings e4osit ccountA

In akistan a sa#ing deposit Nc can open "ith a #ery small amount of

money and the depositor is issued a che*ue book for "ithdra"als. +eturn is paid

at a fle,ible rate calculated on si, months basis. 0o"e#er! "ithdra"als of

limited amount are generally allo"ed only t"ice a "eek. The customer has to

gi#e a notice of about t"o "eeks before the "ithdra"als of large amounts.

Such account may be maintain and run by an indi#idual! partners and

companies as "ell. The most important character of this type of deposit is



38/71

issued "ith a che*ue book for "ithdra"als. The account holder is returned "ith

profit rate! calculated on si, months basis.

/- 7iDe" or term e4ositA

It is payable to the customer after the e,piry of a certain duration. The

duration of fi,ed deposit are #arious from three months to si,ty months. The

bankers offer different rate of return on the fi,ed deposits depending upon the

duration of the deposit. The amount deposited in fi,ed account is not

"ithdra"n able. The amount is recei#ed back after the e,piry of fi,ed period.

ne of the most important aspects of term deposit for the banks is that the

money of this deposit can be in#ested in #arious "hat the bank consider

profitable.

This type of deposit is also kno"n as single transaction account. It is

because the account holder cannot operate upon the account like other deposit

accounts. The banker usually gi#es a receipt of the fi,ed deposit mentioning the

amount of money and date of maturity of the deposit. 1o pay in slip book!

passbook or che*ue book is issued to the customer.

9-9 7OREI8+ EFC'8E EPRT(E+TA

In today5s "orld no one country can keep itself self;sufficient in e#ery

area of life. So they ha#e to trade "ith other countries for the things! "hich she



39/71

does not ha#e. But such Business re*uired a medium of >,change! "hich is

acceptable to the countries concerned. So they usually do business through the

medium of stable currencies of the "orld.

/or such International Business transaction the bank utili-e the ser#ice of

its /oreign >,change Department. The department plays #ery crucial and

important role in international trade. The ser#ice! "hich /oreign >,change

Department of the banks offers! is the parallel banking "ith general banking and

additional function of import and >,port Business controlled by State Bank of

akistan. The rules and regulations are framed by the SB.

In 'B( its foreign e,change department as per SB regulations carries

out the international banking. The SB e,ercises full control o#er the /oreign

>,change Business. 1o transaction is considered effecti#e "ithout permission

from the SB under /oreign >,change control ct 67:9. /oreign >,change

regulations are issued though the >,change control Department of the SB.

ny transaction in the international Banking shall be carried out at rates

determined by the SB. /or this purpose the SB fi, the rate of 'S dollar "ith

other currencies. /oreign >,change rate committee in Karachi 0ead ffice

does this by the formula appro#ed by SB and as published daily. It also makes

sure the rates appro#ed are con#eyed to the braches on the same day.

/oreign >,change Department pro#ides the follo"ing ser#ices to the

customer.



40/71

/oreign >,change %urrency ccounts

/oreign >,change +emittance /acility

a- 7oreign Currency ccountA

E=o#ernment of akistan has introduced many important reforms in

foreign e,change control in the county in /ebruary! 677J! for the purpose of

strengthening foreign e,change reser#e.F 'B( as an authori-ed commercial

bank offer the facility of foreign currency account in four currencies! "hich are

'S Dollar! 2apanese en! =erman )ark! and 'K ound sterling.

The foreign currency account facility by 'B( is a#ailable both for akistani

citi-en currency account is similar to opening of local currency account. The

account may be an indi#idual or $oint account. There are t"o types of foreign

currency account.

Current ccount

Saving ccount

i- Current ccountA

2ust like local currency current account holder no interest is gi#en to the

foreign currency account holder. /oreign %urrency N% are also e,empted from

,change remittance ser#ices

ii- Saving ccountA



41/71

'B( offers a #ery handsome rate of return foreign currency sa#ing

accounts. The profit is paid in currency in "hich is opened. This account too is

e,empted form.


42/71

griculture /inance

Industrial /inance

>,port /inance

Import /inance

The banks also ad#ance to small si-e businesses and construction companies

etc. )any 'B( Branches are ha#ing departments for granting ad#ances to the

borro"ers. 1ormally! it is responsible for performing the follo"ing functions.

a To handle all the cases of short or long term loans.

b To process all the cases concerned.

c To for"ard the cases for appro#al and consideration to the higher

authorities.

d Direct dealing "ith the borro"ers.

e To insure the disbursement of loan.

f To inform the high authorities about #arious loans.

'B( make ad#ances in the follo"ing "ays.

*a, #? CS' CREITA

Through this credit facility! the banker ad#ances loan to the borro"er

after ha#ing tangible asset as a security. )ain characteristics of this facility are

that the total amount is not gi#en to the borro"er at once rather it is gi#en in



43/71

installments! or "hen o#er re*uired. The borro"er has to the interest only on

the amount outstanding against him.

The cash credit facility is gi#en either through by hypothecation or

pledging of goods. Some re*uirements are as under.

i- %ustody of stock remains "ith the borro"er.

ii- Bank lien on the stock.

iii- Stock hypothecated must be insured against fire etc.

iv- %ustomer must submit the stock report on monthly basis.

v- /re*uent stock #erification to be done by 'B(.

vi- Bank may send officers or staff in order to super#ise #erification

Some characteristics of pledging asset against loan. Stocks are pledged

"ith under banks lock and key.

Stock must be duly insured against for and burglary.

n monthly basis stock reports has to be prepared by the borro"er

duly incorporating deli#ery of goods! if any during the months.

Deli#ery of goodsNstock is made against cash payments.

*b, #? ISCOU+TI+8 #I%% O7 EFC'+8EA

This credit facility is a #ery ad#anced form of ad#ancing moneyNcredit to

the borro"er. It is also termed as factoring. In this facility! the bank purchases

the bills of beaching from the borro"er. The bank gi#es face #alue of the bill to



44/71

the borro"er after deducting interest on the remaining period re*uired for the

bill to mature.

*c, #? O6ER R7T

Some time it happens that a reliable! regular customer may ask for a #ery

short period credit. The bank accommodates such customers through the facility

of o#er;drafting. In this facility the bank charges interest on the outstanding

amount only. This facility may be gi#en "ithout any security or is pro#ided

against some collateral. It might be a temporary facility or an o#er;draft;limit

may be sanctioned to the customer! "hich may be used again and again during a

certain period of time.

9-2 C%ER+CE 'OUSEA

It is an association of banks4 usually set up in a gi#en locality for the

urpose of inters changing credit claims. 1early! e#ery"here this function is

performed by the central bank of a country. But in cities "here there is a no

branch of central bank! other authori-ed banks perform this fiction. In akistan!

the areas "here there is no central bank branch the function of clearing house is

performed by 1ational Bank of akistan H1B.

In undertaking the process of inter changing credit the follo"ing

procedure is adopted. In banking business "hen creditor asks for some

payment! it is al"ays the choose through "hich the payment is asked for. But

there arises to situations "hen the payee for payment through che*ues. The



45/71

payee may be account holder in the same bank i.e. of dra"er or he may not be

the account holder in the same bank.

Ahen the payee is an account holder in the same bank! then the che*ue is

directly transferred from one to the other. nd the total assets and liabilities of

the bank remains the same. Then in such cases the payee deposits che*ue in this

bank dra"n on some other bank. The bank "ith the che*ue is deposited

becomes the creditor of the dra"ers bank. The debtor bank "ill pay this amount

of the che*ue by transferring it from cash reser#es if there is no off setting

transaction.

In daily business of the bank! there are a number of che*ues deposited

"ith one bank! "hich are dra"n by other banks. The dra"er bank becomes

indebted to the bank in "hich the che*ues are deposited for collection. In the

same "ay the creditor banks also recei#e che*ues dra"n on other banking

gi#ing blooms of payment by them. 1o" it "ill be #ery incon#enient!

uneconomical for the bank to transfer cash for fulfilling reciprocal obligations.

The best! easiest and safest "ay "ill be to offset the reciprocal claims of each

other and transferring only the net amount due by any on the %learing 0ouse

pro#ides this facility.

The clearance house is the branch of central bank of akistan or in case of

area "here on central bank is a#ailable. The representati#e of each bank meets

at fi,ed time on all business day of "eek. This meeting is held in the bank



46/71

performing duties of clearing house. The messenger of the #arious commercial

banks gathered at the clearance house and transferring che*ues payable by other

banks "hile collecting dra"n on their banks. summary sheet is prepared

describing the number of che*ues recei#ed and deli#ered by a bank at the

clearance house. 1ormally! the banks maintain t"o books for clearing house.

In@ar" clearing boo$-

Out@ar" clearing

#oo$.



47/71

C'PTER :

SER6ICES & PROUCT

O7 U#%



48/71

SER6UCES &PROUCT O7 U#%

In banking ser#ices U#%pro#ides a number of ser#ices. These ser#ices

include customer banking! merchant banking and corporate banking. The

follo"ing is the brief description of #arious ser#ices offered by the U#%to its

customers.

:-3 8eneral e4ositsA

Due to the e#er;increasing need for capital there are no" a fe" business

enterprises! "hich are carried! put totally "ith the o"ner5s e*uityNcapital. So

borro"ing is becoming an essential feature of today5s enterprise. But in case of

banking business borro"ing from outside sources is all the most #ital. nd this

is #ery common obser#ation in the banking business that in a gi#en bank5s

found treasures the borro"ed capital is much greater than its o"n capital. Bank

borro"s mostly in the form of #arious deposits the greater the difference

bet"een the rate of borro"ing and lending4 the greater "ill be the profit margin!

for the bank. But the bank look for"ard for more deposits! as this "ill create

more funds a#ailable for employment. So greater deposits "ill 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 ad#antage for the

customer is as debts.

Ahen bank recei#e a deposits from a customer a relationship of debtor

and creditor is established. %ustomer becomes creditor "hile bank takes the



49/71

responsibilities of debtor. n recei#ing of deposits the ac*uired liability for that

much amount "hile becoming of the deposit! it can in#est any"here it deems

right "ithout consulting the creditor of the deposit. But it does not mean that the

bank becomes the sole o"ner of this amount! rather through an implicit

agreement the bank "ill be liable to pay the depositor money as and "hen the

depositor demand.

:-0 Current e4ositsA

'B( offers the facility of current aNc both in akistan rupees and foreign

currencies. n 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. s such these accounts are payable

on demand. In akistan on offer any interest. Some of the sol#ent features of

this aNc areas.

i. 1o restriction on number of "ith dra"ls from aNc5s and on prior notice is

re*uired for "ith dra"l.

ii. These Nc5s are regulated under the rules and regulation of SB especially

deposits of 6JJJ is free from all e,change control.

iii. %on#ersion of these funds into any currency and transfer for of these

finds into any country is not restricted.



50/71

i#. The foreign currency Nc5s are acceptable as a collateral against rupee

loans.

#. In case of payment to third party standing instruction by customer is

re*uired.

#i. By debiting these aNc5s a T% can be obtained.

#ii. /or obtaining lockers facility preference is gi#en to foreign currency

Nc5s holders.

:-/ Saving e4ositsA

The main ob$ecti#e of maintaining sa#ing deposits in running status by

the bank is to de#elop sa#ing habits in the people of our country. Such people

may include young people! married or household "oman. These people can start

their aNc by depositing only a small amount at a time. These accounts can also

be opened in foreign currencies. Some year ago it "as not possible to "ithdra"

money from sa#ing aNc more than t"o times in a "eak and prior notice "as to

gi#en the bank for dra"ing money abo#e a certain le#el. This restriction is no"

remo#ed by SB and the customer can deposit and "ithdra" money as and

"hen re*uired by the client during the banking hour.

Some of the silent features are as un"erA

Interest is payable by the bank in accordance "ith the rates

announced by SB.



51/71

1o restriction on the number of "ithdra"als and the amount of

"ithdra"als during a "eek.

The funds of this aNc can be utili-ed for purchasing =o#ernment

and other securities such as foreign e,change leader certificates! special

sa#ing certificates and foreign currency bearer certificate.

rincipal and interest earned there is on e,empt from income ta,

and


52/71

:-9 7iDe" e4ositsA

These deposits are created by a single as such there are t"o transaction

in#ol#ed. ne is "hen somebody deposits the money and the other "hen the

customers "ithdra" the money after or before the due date. In case of

"ithdra"ing the deposit before maturity no interest is paid to the deposit holder.

The rate of return on time deposits #arious "ith the duration for "hen the

deposit is created. The duration #arious from a day as long as fi#e years.

:-: Uni cashA

1o" days carrying cash "hile going out of your place is #ery risky.

>#erybody "ants ma,imum security "hile keeping is money in his pocket.

eople make use of T% and other #arious credits cards for this purpose. 'B(

pro#ides such facility through '1I;%S0 the management of '1I;%S0 is

carried out in follo"ing "ays.

a- PI+ *Personal I"entification +umber,

ersonal identification number HI1 is #ery important number allotted

"hen a '1I;%S0 card is issued to the customer. This number is made uni*ue

by gi#ing four;digit can financial number and "hen it is used in con$unction

"ith the '1I;%S0 card is enable the customer to a#ail the cash point

facilities. The allotted I1 number is kept e#ent confidential form the bank staff

by printing it in a special number buy the computer on a pre;sealed! tamper



53/71

proof I1 millers. These I1;)I((>+S can only be seen "hen the customer

opens the en#elope.

b- Pin ChangeA

Ahen a customer after a#ailing the facility first time "ith the '1I;%S0

card! heNshe "ill be re*uired to change I1 Hersonal Identification number is

sought from security point of #ie". The change number selected by the

customer should be such that the customer can easily remember it and cannot be

easily guessed by other.

c- Car" Serial +umberA

%ard serial number is gi#en to a particular '1I;%S0 card "hich the

customer can kno" by looking at the card. The first line contains the '1I;

%S0 card serial number "ith the customer5s name! aNc number and card

e,piry date is follo"ed in the subse*uent lines.

"- >ith"ra@al %imitA

This limit is determined at the time of depositing money for a#ailing the

facility of '1I;%S0 card. The limit depends upon money deposited.

e- Cash PointsA

To facilitate the process of getting money through '1I;%S0 card a

number of cash points are a#ailable in the country. The machines may be used



54/71

round the clock. '1I;%S0 card are used in these machines for dra"ing

money from the account and for a#ailing a number of other facilities such as the

follo"ing.

i- Balance In*uiry

ii- )ini Statement

iii- I1 %hange

:-2 U#% >%%ET 6IS CRA

'B( A((>T 3IS is a secure inno#ati#e card pro#iding the customers

the benefits of both an T) Hautomatic tailor machine and a debit card locally

and internationally.

Aith 'B(3IS A>((>T ! the customers ha#e the po"er of using your

card at more than 7?8 T)s across the country and o#er 7JJ!JJJ 3IS T)

locations "orld"ide in 68J countries and o#er 8!JJJ +IC locations across the

nations and ?? millions 3IS merchant locations "orld"ide. It can be used

?:hour day!

9 days a "eek at all 'B( T)s as "ell as others T)s in 6(ink & )1>T

net"ork.

T( CR US8EA



55/71

6. Insert the card in to the slot labeled Einsert cardF.

?. Select the (anguage.

@. 'se the keypad to enter the personal Identification numberHI1.

(I+ (E+UEA

In the main menu! select an icon to conduct a transact

CS' >IT'R>%A

6. Select EcashF "ithdra"alF from the main menu.

?. Select the account type.

@. >nter the re*uired amount in multiples of +s.8JJ and press K.

(I+I STTE(E+TA

6. Select mini statement from the main menu.

?. Select the account type.

@. %ollect the mini statement.

PI+ C'+8EA

6. Select Epin changeF from the menu.

?. 'se the keypad to enter your ne" I1.

@. +eenter your ne" I1 to confirm.

7U+S TR+S7ER-H/rom 'B( to 'B( to others banksO



56/71

6. Select Efunds transferF from the menu.

?. Select the type of funds transfer you to "ish to conduct.

@. Select the account from "hich you "ish to transfer funds.

:. Select the account to "hich you "ish to transfer funds! or type in the

account number according to the gi#en layout.

8. Type in the amount of funds that you "ish to transfer.

. %onfirm the account name and number and amount of funds to e,ecute

The /unds transfer.

E#IT CR US8EA

6. fter shopping! present the 'B( Aallet to the cashier the 'B(

Aallet

is accepted at all outlets e,hibiting the 3IS logo as "ell as +IC logo

displaying machines.

?. The cashier "ill s"ipe your 'B( Aallet through the point of sale

HS Terminal and enter the purchase amount.

@. It is as simple as buy! s"ipe & sign. Simply purchase the item!

s"ipe the card

t the S terminal and sign on the receipt generated. /or transactions

on the +IC net"ork simply enter the I1 to complete the transactions.



57/71

%O+S

Cha4ter 2

S>OT +%?SIS



58/71

S>OT +%?SIS

The "ord ESATF consists of four "ords! "hich are stands for

Strengths! "eaknesses! opportunities and threats! respecti#ely.

Through the ESATF nalysis techni*ue one can analy-e the present

condition and performance of a gi#en organi-ation and can prepares plans for

the future.

In the SAT nalysis of 'B( the follo"ing points can be discussed in brief.

2-3 STRE+8T'SA

Its Strengths are as follo"s.

0a#ing reputation for high customer banking ser#ices.

@rdlargest Bank of akistan

>asy asses to branch locality.

(arge net"ork.

rofessional and skilled management.

Aell co;coordinated branch office system.

>,perienced personnel.

Strong loyal customer group.

>,cellent competiti#e skills.



59/71

Sound le#el of deposits.

>,cellent promotional and marketing campaigns.

2-0 >E!+ESSESA

Aeaknesses is something an organi-ation lakes at doing that for 'B( these are.

%ustomer ha#ing accounts "ith small amounts are not gi#en the same

attention gi#en to those "ith large amounts.

Security system of 'B( main branch bannu #ery careless

)ost of employees are o#erloaded "ith the "ork and promotion is also not

timely.

(o" salaries to staff.

olitical inter presence.

(o" market #alue of the bank5s stock.

Bad reco#ery of o#erdue ad#ances.

'n;satisfactory "orking condition of branches.

1o a#ailability of sophisticated e*uipments in branches.

In efficient system of recruiting and selecting of personnel.

2-/ OPPORTU+ITIESA



60/71

n e,ternal situation! "hich an organi-ation can benefit from is called

opportunity.

Increase the ser#ing customer group.

Due to efficient and e,perienced management group! 'B( can

impro#e and e,pand its foreign operations successfully.

>nter ne" markets.

Increase product line to ser#e large range of customers needs.

0iring of "ell;*ualified personnel in the "ork force.

Deployment of sophisticated technology in offices and branches.

2-9 T'RETSA

Increase the number of ne" local and foreign banks.

(o" moral of employees.

olitical interference in the affairs of the bank.

(ake of consistence in policies due to olitical instability.

(o" sa#ing rated in the country.

>conomic recession in the country.



61/71

This ESATF nalysis is a mirror to the bank o its present condition.

/rom this analysis "e can conclude that the bank has done some professional

changes in its banking system. The management can de#elop elaborated strategy

planes for capitali-ation the a#ailable opportunities. ne area "here the bank

has done some "ork is the impro#ement in customer ser#ices.

The bank should maintain principle of professional management and adhere the

sound and sophisticated banking rules and regulations in order to build

confidence of people in the institution

CO+C%USIO+A

fter the establishment of 'B( in the year of 6787! the bank "as

successful in achie#ing some of its ob$ecti#es. In the #ery first the bank earned a

handsome profit.

fter the e,hausti#e era of nationali-ation! the bank is no" transforming

to pri#ate o"nership again. The decade of J5s "as dominated by on

e,ceptional increase in economic acti#ities. This result in bringing #arious

changes in the management and structure of the commercial banks. In area of

management more professional "ere brought in and the same "as done "ith the

structure.

'B( "as not an e,ception to these changes. In the last decade of the century the

bank had "itnessed #ery bad banking business. To rebuild the bank ne"

professional people "ere inducted under the leadership of )r.


62/71

'nder this leadership the bank introduced incenti#e schemes and products such

as %+))D!


63/71

Increasing assets and decreasing e,penses through letter

management.

laying more responsible role in the social en#ironment of the

society meaning full filling the social obligations as "ell.

C'PTER

Title Page Qurtuba 2

Documents

Transcript of Title Page Qurtuba 2