Values Work

8/6/2019 Values Work

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PREFACE

Bachelor in business administration (BBA) is a program in which we

studied about business and finance. In Pakistan the banking sector is at the

maturity stage and banking sectors are the best institutes in which we are

easily understand the practical experience. Bachelor in business

administration gives us an opportunity to touch the practical experience

about business and finance as the internship. The Internship program is an

important part to give students an opportunity to have experience of practical field. Unless and until the students experience the novelty of

practical work, their knowledge of what they study in theoretical

courses remains incomplete. The most important point in an Internship

program is that the student should spend their time in a true manner and

with the spirit to learn practical orientations of theoretical study framework.

This Internship Report is on my Six weeks practical training at UBL

GHORGHUSHTI (branch) In this Internship Report I have tried to givedetails about the United Bank Limited, working and the functions of

different departments of the bank.

UBL ! Internship Report

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Dedication

I dedicate this to beloved parents, teachers, my dear class fellows and friends.

Acknowledgement

All praise to Almighty Allah, the most merciful & Compassionate. I express

our gratitude to our kind Teachers who kept our moral high by their

suggestions and appreciation. They were available to us whenever and for

whatever we consulted them. Without their precious guidance and help, I

could never be able to complete this Internship Project.

There are many people to whom I thank for their help to us. I especially want

to thank to the Manager of United Bank Limited GHORGHUSHTI who

provided me much information and also helped this Internship Project

towards completion.


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Table of Contents

...........................................................................................Executive SUMMARY! 7

...................................................................................................INTRODUCTION! 8

..............................................................OVER VIEW OF THE ORGANIZATION! 8

NATURE O F ORGANIZATION ! 8

BREIF HISTORY ! 8

VISION ! 9

MISSION STATEMENT ! 9

SWOT ANALYSIS ! 10

Strengths ! 10

Weaknesses! 10

Opportunities! 10

Challenges ! 11

ORGANIZATIONAL HIERARCHY! 11

2.8 BOARD OF DIRECTOR ! 13

2.8.1 CHAIRMAN OF UBL! 13

2.8.2 DEPUTY CHAIRMAN OF UBL! 13

2.8.3 PRESIDENT OF UBL! 13

2.8.4 DIRECTOR OF UBL! 14



2.8.7 GROUP FINANCIAL OFFICER ! 15


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2.9 NUMBER OF BRANCHES! 15

4.2 SPECIMEN SIGNATURE CARD ! 15

4.2 SPECIMEN SIGNATURE CARD !

15

4.3 CASH BOOK REGISTRATION ! 16

4.4 DEPOSIT SLIPS ! 16

MINOR ACCOUNT ! 16

FOREIGN EXCHANGE DEPARTMENT ! 17

ACCOUNT OPENING DEPARTMENT ! 17

INDIVIDUAL CUSTOMER ACCOUNT ! 17

Account Of Illiterate Person! 17

Account Of A Minor Person! 18

Joint Account! 18

BUSINESS CUSTOMER ACCOUNT ! 18

4.6.2 REMITTANCE DEPARTMENT! 18

DEMAND DRAFT (D.D) ! 18

PAY ORDER ! 19

DEPOSITING BOOK !

19

CLEARING DEPARTMENT ! 19

................................................................................................IT DEPARTMENT! 19

FUNCTION OF DEPARTMENT ! 20

Branch banking! 20

Consumer banking! 20


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Electronic banking! 21

Corporate banking! 21

Treasury and investment! 21

...............................................................................INVESTMENT PORTFOLIO! 21

.................................................................................PRODUCTS LINE OF UBL! 21

PRODUCTS AND SERVICES OF UBL! 21

COMMERCIAL BANKING! 22

CORPORATE BANKING! 22

CONSUMER BANKING! 23

UBL ADDRESS! 23

UBL BUSINESS LINE! 23

UBL CASH LINE! 23

UBL CREDIT CARD! 24

UBL DRIVE! 24

4.11 FINANCIAL SERVICES ! 24

4.11.1 NEW CAR FINANCING ! 24

4.11.2 USED CAR FINANCING ! 24

4.11.3 CASH YOUR CAR ! 24

4.11.4 UBL MONEY ! 2 4

4.11.5 UBL WALLET ! 2 5

4.11.6 UBL e-STATEMENT ! 25

4.11.7 UBL Pay Plus ! 25

.......................................................................................RECOMMENDATIONS! 25

6.1 HUMAN RESOURCE DEPARTMENT ! 25


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6.2 POLITICAL INTERFERENCE ! 26

6.3 BASIS FOR PROMOTION ! 26

6.4 NEEDS OF CHANGE IN RECRUITMENT POLICY ! 26

6.5 REFRESHER COURSES ! 26

6.6 TRAINING FOR CREDIT MANAGEMENT ! 27

6.7 INTRODUCTION OF NEW COURSES ! 27

6.8 CAREER DEVELOPMENT ! 27

.............................................................................................................Learning! 27

Week 1: ! 27

...................................................................Vertical Analysis of Balance sheet! 27

.............................................................Horizontal Analysis of Balance Sheet! 28

...............................................................Vertical Analysis Income Statement:! 29

.......................................................Horizontal analysis of Income Statement! 30

....................................................................................................CONCLUSION! 30


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Executive SUMMARY

All these six weeks were full of events, full of learning and most importantly full of

professional working. Here 'professional' regards in all from clerical to managerial work. In

these six weeks period, the best thing to me was the authority and dependency of

customers upon me, when they come with a hope that I'm there to guide them through

Knowing all is not learning, the real learning is to convey right. I tried to learn real, see real

UBL, and tried to comprehended the difference between what we look from outside and

what is going on inside. UBL is full of experienced and professional traditional

bankers. As it perfectly suit the environment we are operating in, you attitude has In

the private sector, no doubt it’s a fast growing bank, helped UBL in capturing masses. but

here's something that's still unrealistic to the policy makers. The line of unsatisfied

customers is increasing, not because we are not serving well, it's because customers

are not understanding the YOU attitude right. Every customer wants to make sure his

work is done at the first convenience, but they are not concerned about the

responsibility with which every employee is working. We need to put in some guidelines for our customers, as they walk in. This will not only save their time but will also

motivate staff members to work more prom ptly, because if customer and employee

engage into some unhealthy quarrel, the whole environment will be disturbed. The bank

should bring forward the new talent as fresh knowledge and education is considered

very important to increase the efficiency and production. People have to wait for re-

cashing their cheques and for paying their utility bills, which are not good for reputation of

bank, it should be improved. Bank is retaining its earnings to reinvest it for the further expansion of bank, which is a good sign because it increases shareholder wealth. At

39 last I want to say that I have learned much experienced how to communicate

with customers.


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INTRODUCTION

The basic objective of banking is to accept the money in shape of deposit from

customer and to lend it to other customers in shape of advances in order to generate

the profit. UBL was set up in 1959 by “Mr. Agha HasanAbidi” and is today one of

Pakistan’s major bank in terms of deposits and advances with a huge domestic and

international network.

OVER VIEW OF THE ORGANIZATION

NATURE O F ORGANIZATIONUBL is a Banking Company, which is engaged in Commercial &Retail Banking and

related services domestically and overseas. United Bank Limited the Group's principal

activities are to provide commercial banking and other financial services. The Group

offers personal banking, cash management, retail loans and other financial services.

These services include deposits, savings/current bank account, vehicle loans, personal

loans, global banking, lending to priority sector and small scale sector, foreign exchange and

export finance, corporate loans and equipment loans. The Group operates through1044

branches within Pakistan and 15 branches outside Pakistan. At present UBL and its

subsidiaries are:

Holding Company United Bank Ltd.

Joint Venture Pakistan International Bank

Joint Venture Oman United Exchange Co.

Subsidiary United Bank Ag-Zurich.

Subsidiary United Assets Management Co. Ltd.

BREIF HISTORY

Agha HasanAbedi founded the bank in 1959. In 1971 the Government of Pakistan

nationalized it. A professional team was appointed in mid 1997 to restructure the bank. 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


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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. UBL was the largest privatization attempted by the

Government of Pakistan, launched in June 2001, with 21 interested parties. It was impacted

by the adverse developments of the September 11, 2001 and was finally concluded in

October 2002 by which stage only three bidders they’re left the consortium comprising Best

way Group (BG), out of the UK and Abu Dhabi Group (ADG) from the UAE they’re finally the

winners at a record price. This signaled the strong confidence reposed by these investor

groups, in the improved governance of the county, the economic potential, the banking

opportunity and the existing management of the bank. The management of this bank

is committed tonsuring that this confidence reposed in the bank is fully met to the highest

expectations of its shareholders and all its stake holders.

VISION

To be the world class bank dedicated to excellence, and to surpass the highest

expectations of our customer and all other stakeholders.

MISSION STATEMENT

United Bank Limited derives its mission statement from its principal Dar Al-Mal Al Islami

(DMI) Trust. The overall mission being. The introduction of a just and equitable financial

system by being a world class multipurpose financial institution, providing a range of

specialized services, working on shariah principals.

The mission statement translates into our objectives:

“To comply with the spirit of Islamic Shariah which will govern our entire business by translating it into modern financial products and services. To strive for Halal profit, prudent growth and pursuit of improved efficiency. To focus on serving our customer and shareholdersby building relationships based on trust and mutual benefit. To inculcatea culture of teamwork with in the bank by introducing staff training and development programs”.


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SWOT ANALYSIS

Strengths

United Bank Limited is one of the largest commercial bank in the country. United

Bank Limited has almost forty-seven years of good standing to its valued clients.

United Bank Limited is the second largest private commercial bank of Pakistan with1044

plus branches and has an international presence. United Bank Limited is growing

bank to achieve WORLD CLASS banking standards bear immense potential/prospects

of employment in the future. United Bank Limited believes insetting the right goals for

the right jobs and we strive to identify the right resource.

UBL is actively participating in international markets and has recently introduced credit

cards in UAE, Bahrain, and Qatar, being backed up by 24 hours call center out of UAE. The

overall efficiency of the bank operations and management ability can be noticed by looking

at to its income pattern and provisions/write off practices. Advances investment of the

bank shows a constant growth pattern. The bank is actively emerging and is

engaged in international trade and foreign exchange transactions.

Weaknesses

The major weakness is lack of adaptability to accept the change.

The Human resource is though experienced but still lack adaptability to change to the

modern technology, products and methodologies of working especially in paper less

environment. The approach to involve and engage fresh/energetic Human resources slow.

The client and customer service standards along with attitude problem are major areas of

weaknesses. Due to risks such as political, economic and legal etc. the bank has sufferedlosses the main reason was that of piling up of large amount of unrecoverable loans and

debts which have adversely affected the image of the UBL. Accumulated losses pushed

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

Administrative expenses are 51% of them ark up revenue. Promotions are carried out on

annual basis ignoring the importance of capabilities and performance outputs.

Opportunities


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UBL being one the largest bank in Pakistan has great potential to redesign its

products fore existing and fresh Depositors Reconstruction of Afghanistan is a golden

opportunity where the bank can effectively participate. Expansion of IT platform and

internet based banking system.

Interest of businesses in leasing facilities provides a healthy opportunity for banks

There is a large pool of unemployed MBAs who can be hired to achieve

professionalism on its organizational culture. Outsourcing of promotional companies

and also use the excellent promotional facilities.

Entering new market segments, Increase the product range to meet the broader range of

customer’s needs. In wake of current economic conditions and with vast network of 1044

Branches, UBL can earn a significant leverage in competition among other banks

through with its quality service and standards. The brand name is strong that can

have a competitive edge in comparison to other banks in the town as people still rely

on old banks like HBL,NBP etc.

Threats

The greatest of all challenges is to maintain the speed on which UBL is running.

Increase in competition due to increasing number of foreign and domestic private

banks offering highly specialized and attractive services. Growing rate of global

technical advancements and adaptation of modern style of management in banking sectors

of Pakistan. Unemployment, lower level of income and prices like problem sin the

motherland coupled with low rate of industrialization, geo political adverse conditions.

ORGANIZATIONAL HIERARCHY

Chairman


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Deputy Chairman

Board of Directors

Executive Committee

SEVP

Managing Director

EVP

VP

Officer Grade-I

Clerical Staff Officer Grade-II

Officer Grade-IIINon Clerical Staff


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2.8 BOARD OF DIRECTOR

2.8.1 CHAIRMAN OF UBL

ShaikhNahayanMabarak Al Nahayanis the United Arab Emirates Minister of Higher

Education and Scientific Research. He is also Chancellor of two of the UAE's three

government-sponsored institutions of higher learning: United Arab Emirates University,

established in 1976, and the Higher Colleges of Technology, established in 1988. He is

the president of the third, Zayed University, established in 1998.Sheikh Nahayan is

also Chairman of CERT (Centre of Excellence for Applied Research and Training), the

commercial arm of the Higher Colleges of Technology, which was established in1996.Sheikh Nahayan is Chairman of the Abu Dhabi Group, Union National Bank,

and United Bank Limited. He is also Founder Chairman of Bank Alfalah Limited and

Chairman ofWARID Telecom International (a regional telecoms group based out of

Abu Dhabi with operations in Pakistan, Bangladesh, Georgia, Uganda, Congo

Brazzaville, and Ivory Coast).He is a recipient of Pakistan's highest civilian award, the

'Hilal-e-Pakistan', which was conferred upon him by the President of Pakistan in 2005.

2.8.2 DEPUTY CHAIRMAN OF UBL

Sir Mohammed Anwar Pervez, OBE H Pk, also founder Chairman & Managing Director of

Bestway Group. In July 2004, stood down from his role as Managing Director and

retained the role of Chairman of the Group. Sir Anwar began his career in food business in

1963 when he opened a mini supermarket in Earls Court, London. Sir Anwar is also the

Chairman of Batleys Ltd ;Bestway Cement Ltd and Deputy Chairman of United Bank Ltd. He

is also the Chairman of the Board of Trustees of Bestway Foundation UK and Patron-in-

Chief of Bestway Foundation Pakistan. He is a Charter Member of the Dukeof

Edinburgh’s Award Scheme; a Trustee of the Memorial Gates Trust; Specialist

Schools Trust and CrimestoppersIn March 2000, the President of Pakistan rewarded him

the “Hilal-e-Pakistan” (H Pk). No other expatriate has the singular distinction of

receiving such an eminent recognition whilst living and working in a foreign country.

2.8.3 PRESIDENT OF UBL


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MR. ATIF BOKHARI Is a President & CEO of UBL was brought by President General

Musharraf from Bank of America. Atif is younger brother of General Asif Riaz Bukhari a

commando, who is a close friend of General Musharraf. He was also a member of the HBL

Management Committee.

2.8.4 DIRECTOR OF UBL

Mr. Omar Ziad Jaafar Al-Askari, Director United Bank Limited, Pakistan; President and

CEO of United Technical Services, Abu Dhabi; President and CEO of United Eastern

Investment Corporation; Director of Fruit of the Loom quoted on the New York Stock

Exchange.


MR. MOHAMMAD ZAMEER CHOUDRY, OBE H Pk is also Chief Executive of Bestway

Cement Limited. Under his stewardship Bestway Cement has established itself as the third

largest cement manufacturer in Pakistan in just under a decade with a production capacity of

4 million tonnes per annum . A further 2 million tones per annum is under construction

and will come online by early 2008. In October 2002 he led and managed Bestway’s

acquisition of United Bank Limited. Today, UBL is Pakistan’s 2nd largest bank with assets

under management in excess of US$ 9.0 billion. He serves as a Director on the main

Board of UBL and chair’s the Audit Committee. Mr. Choudrey is a Trustee of Bestway

Foundation UK and Chairman of Bestway Foundation Pakistan. He has also served as a

Governor of John Kelly Schools in Northwest London.


Mr. Ahmad Waqar an MBA from Henley College of Management, U.K. and along with

being in charge of MAP Trading, UNITED BANK, also simultaneously holds the position of

Director in UBL. He also heads the Central Ordering Department of the Cash & Carry

business and is a Director in Bestway (Holdings) Limited and its subsidiary companies. After

joining the Group in 1984, he was appointed as a Director in 1993 and was elected as a

member of the Bestway Cement Board in 1994.He is also a Trustee of Bestway Foundation,

Pakistan.


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2.8.7 GROUP FINANCIAL OFFICER

Mr. Amir Karachi wala is a young and dynamic professional. He heads the Finance and

Information Technology functions at Bestway Cement Limited. After graduating from the

prestigious Hailey College of Commerce, University of the Punjab, Lahore he

proceeded to the U.K. where he studied accountancy from Thames Valley University

and the Chartered Association of Certified Accountants. Mr. Sheikh trained with a Top-10

Accountancy and Business Advisory firm in the U.K. before he joined the Bestway Group

in 1996. Mr. Sheikh was made a Director of the Company in 2001.He is also a Trustee, the

Treasurer and the Secretary of Bestway Foundation, Pakistan. As the Head of Finance &

Information Technology, he has been instrumental in maintaining the highest standards

of financial discipline and developing the Information Technology infrastructure along mostmodern lines at Bestway Cement.

2.9 NUMBER OF BRANCHES

UBL operates a branch network of 1044 branches all over Pakistan. UBL has a large

network of branches, which extends to the remotest areas of the country. In December1983,

there were 1623 branches whereas in 1974 it had only 1238 branches and in

October 2003 these figures show total number of 1007 branches3. UBL has been veryactive in increasing its overseas branches network. The first foreign branches were

established in London in 1963. Now UBL has branches in Bahrain, Qatar, Saudi Arabia,

United Arab Emirates, Yemen Arab Republic, UK Switzerland, Egypt, Oman and The

United States. These branches are playing a significant role in channeling home

remittances and foreign trade of Pakistan.

4.2 SPECIMEN SIGNATURE CARD

SSC is used for the signature of account holder in UBL it rule that those people whose

signatures are in Urdu must to sign three time on this card and those people whose

4.2 SPECIMEN SIGNATURE CARD

SSC is used for the signature of account holder in UBL it rule that those people whose

signatures are in Urdu must to sign three time on this card and those people whose


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signatures are in English must to sign only for two times on this card. This card is only used

for the confirmation of signature at the time of withdraw cash through cheques.

4.3 CASH BOOK REGISTRATION

CBR fills at the time of opening new account which is the request for new cash Book

and filling the CBR it will activate through computer.

4.4 DEPOSIT SLIPS

This slip has the amount mention in it that how much money deposit is at initially or

during account.

MINOR ACCOUNT

This account is basically for the children whose age is under 18 it has some

requirements and benefits that are given below It can open from Rs.100. Birth certificate or

B form of minor. CNIC of father or guardian appointed by court. Free e-statement is used.Free accidental death/disability insurance coverage will be provided. No minimum

balance charges. No maximum limit of cash. Internet banking facility, access card center

and access ATM two ATM cards are issue on this account.

In this account the minor can’t withdraw money through his/her signature only The

guardian can withdraw money. Other then these I also learn about the types of these

accounts they are as follows:

• Sole proprietorship

• Partnership

• Joint stock companies

• Club, Societies and Associations

• 26

• Foreign missions/ Diplomas

• Agents account

• Trust account


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FOREIGN EXCHANGE DEPARTMENT

This department deals in foreign exchange. This department is made for the

convenience of customers having foreign dealings. It makes easy for them to pay and

receive in foreign currency.

• Foreign currency accounts are opened in Dollar, Pound and Euro etc.

• Some of the departments which I observe are as follows:

• Account Opening Department.

• Remittance Department.

• Clearing Department etc.

ACCOUNT OPENING DEPARTMENT

There are many types of accounts such as:

1. Individual Customer Account.

2. Business Customer Account

INDIVIDUAL CUSTOMER ACCOUNT

There are some sub-types of individual customer account.

• Illiterate Accounts

• Minor Accounts

• Joint Accounts

Account Of Illiterate Person

In case of illiterate person the CD 50 form is used which is signed or puts thumb

impression being unable to sign or in case of shaky signature and Age & mark of

identification. Thumb Impression is be affixed in presence of Bank Officer. All cheques are

signed in presence of Bank Officer. Account holder (illiterate person) must submit 3passport

size photographs & copy of National Identity Card. Customer is required to come

personally for each withdrawal and abstained to issue cheque to third party.


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Account Of A Minor Person

Minor is a person who has not attained the age of 18 years. Minor can open two types of

accounts

1. Opened & operate independently.

Opened & operated by guardian.

In case of independent minor must capable of signing and parents must give him/her

approval. In case of guardian the account will be operated by guardian even if

minor attains the age of majority.

Joint Account

An account opened in the name of two or more persons. Signatures of both or

each person on a cheque those who are in a contract with bank (Holders of Bank

Account) Payment will be stop if any person disagrees in case of money withdrawal.

BUSINESS CUSTOMER ACCOUNT

This account is totally different from other accounts. This account is for business

customers like big business companies. Transactions for cash depositing and cash

payment is also different. These business customers have much value for the banks.

4.6.2 REMITTANCE DEPARTMENT

Inland remittance means Transfer of funds from one place to another place with in a

country. Following modes of remittance are available and applicant can select which

suits the needs:

1. Demand Draft (D.D)2. Pay Order 3. Depositing book

DEMAND DRAFT (D.D)

The demand draft is a written order, drawn by one branch of a bank upon another branch of the same bank, to pay a certain sum of money to or to the order of a specified


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person. Drafts are not issued payable to bearer. Demand draft can be issued to any

person, firm, company or local authority. Purchaser deposit cash or advise to debit his

account for the amount of D.D. Branches will maintain a file of draft confirmation report for

record & verification. Dem and Draft includes:

1. Name of drawee branch & city.

2. Amount of draft.

3. Name of payee

4. Signed by two attorneys

Issuing branch may cancel DD on request of purchaser, if it has not been indorsed.

Application in writing by purchaser in which purpose of cancellation m ust be mentioned inclear & explicit term and it much appear satisfactory.

PAY ORDER

Pay order is semi negotiable instrument issued and payable on the same branch of a

bank. Issuance procedure is same as of dem and draft. Similar remittance application

form is used. Charges are flat as per schedule of charges.

DEPOSITING BOOK

Is the book in which illiterate customer come and we help them in depositing the cash.

CLEARING DEPARTMENT

Clearing department is separate department. This department is very important

because all types of clearing are done in this department. Clearing of all types of items aredone like cash books received, wallet card, cheques and mails etc.

IT DEPARTMENT

UBL systems are the most Hi- Tech in the whole Pakistan industry and it is the State of the

Art in field of IT. The bank made significant investment in consumer related

innovative computer systems .Which have supported the launch of first of their kind

consumer, banking products. We have also reach our customers and broaden our


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costumer base through technology depends channels of distribution such as ATMs,

Debt Cards, Internet and Phone Banking .The focus in 2006 will continue to be on

infrastructure building consisting of trade professionals , automation of processes and

implementation of functionally rich and user friendly technology . We firmly believe the

technological strength will enable UBL to lead the financial industry by providing better

service to our customer .Our focus remained on achieving technological superiority in the

industry.

We look to build on the solid foundation we have established by strengthening balance

sheet, diversifying revenue streams and improving operating efficiencies. Building on the

review of business practices undertaken last year, we developed a strategic plan to

realize our vision for the bank. This led to a series of restructuring initiatives to align

ourselves better in order to serve the interests of both costumers an share holders. The

bank will continue building infrastructure in line with the launch of various world class

products in 2007. State of-the-art technology and systems have provided the required

support to the infrastructure for smooth functioning. The focus on automation of branches

continues and we are now targeting the 700 online branches mark. Substantial

investment on premises and renovation is planned to continue in 2008. We renovated

the total of 40 premises that includes 38 branches and 2 Co-operate centers. We also

invested in our office premises in order to provide quality working for people in 2005. In

order to serve our customer better, we build our infrastructure by renovating 59

commercial banking branches and additional 3 co-operate centers in 2006.

FUNCTION OF DEPARTMENT

UBL is a commercial bank, which transacts the business of banking in accordance with the

provisions of BCO, 1962. Section 7 of the Act authorizes banks to engage in the

prescribed form of business. In the light of this section UBL’s functions can be

categorized as under:

Branch bankingFor example Deposits, remittance, Foreign trade, Lockers etc.

Consumer bankingFor example credit card, auto loans, home loans, consumer durables etc.


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Electronic bankingATM’s, online banking etc. For example phone bank

Corporate bankingFor example short / long term finance, trade finance, structured finance etc

Treasury and investmentFor example money market, investment, Government securities, correspondent banking

etc.

INVESTMENT PORTFOLIO

UBL em ploys diversified investment portfolio. The bank invests its funds both in risk free

assets as well as in risky assets. This enables it to minimize its unsystematic risk to a

great extent. UBL values its security holding on market value, in accordance with the

guidelines given in SBP circular. Any unrealized surplus/deficit arising on such

revaluation is taken directly to “Surplus/Deficit on revaluation of securities” in the

balance sheet. Where an active market is not available, securities continue to be stated at

cost. Provision for diminution in the value of these securities is made after

considering permanent impairment, if any, in their value. Where securities are sold

subject to commitment to repurchase them at a predetermined price, they remain on the

balance sheet and a liability is recorded in respect of the consideration received in

“Borrowing from Bank” or “Deposits” as appropriate. Conversely, securities purchased

under analogous commitments to resell are not recognized on the balance sheet and

consideration paid is record in “lending to financial institutions” or “loans and advances” as

appropriate.

PRODUCTS LINE OF UBL

PRODUCTS AND SERVICES OF UBL

Being a Commercial Bank, UBL offers the services and products in the following areas:

• Commercial banking


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• Corporate banking

• Consumer banking

COMMERCIAL BANKING

To stand tall among the world’s leading banks, UBL has developed a YOU attitude to

understand its customers well. When you talk, we speak for you. For small and middle size

investors, UBL has so much to offer, so much to deliver. You live the way you want; we will

always be shadowing you. Walk in to any nearest branch of UBL, enter the world class bank

and let us serve you with what you need.

If you have a small or medium -sized business, UBL can assist you with the right mix of

banking services that will help you manage and grow your business. Our experts will

facilitate you in the varied financial situations that you come across. We will respond to your

needs promptly because we understand how much your customers, your employees

an attitude to understand its customers well. Middle size investors, UBL has so much to

offer, so much to deliver.

CORPORATE BANKING

Our mission is to serve all your corporate needs and ensure your full satisfaction

through product innovation, personalized banking, and top notch service. The Corporate

Banking Group focuses on attracting and servicing large portfolio customers. The

Relationship Management team manned by highly qualified individuals from the industry

has steadily expanded our customer base. 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 out performed all other banks.

In year 2000, UBL was also voted as the best Corporate Bank by the customers of a

major foreign bank in a survey. Aggressive marketing combined with professionalism

has led to an increase in UBL's market share with top corporate customers and in some

cases replacing Foreign Banks. Presently, its portfolio includes the quality names in the

country, which were initially confined to foreign banks only.


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CONSUMER BANKING

You as an individual can gain and benefit the most through UBL Consumer Banking. In UBL

you get friendly, efficient and attentive personalized banking services - a unique

banking relationship experienced by each UBL client. You can utilize the following

services. You as an individual can gain and benefit the most through UBL Consumer

Banking. You can utilize the following services.

• UBL Address

• UBL Business line

• UBL Cash line

• UBL Credit Card

• UBL Drive

UBL ADDRESS

Owning a house of your very own is a cherished dream. A lot of planning and hard work is

involved in making this dream come true. That is why, at UBL we aim to make your

decision easier, by offering you the right ingredients that can help you.

UBL BUSINESS LINE

UBL Business Line a complete solution to all your Business Financing needs. With UBL

Business Financing facility, you can now take your business to greater and newer

heights, and achieve the level of success that you truly deserve. UBL Business line is a

running Finance facility that not only provides funds for growth and profitable

opportunities.

UBL CASH LINE

UBL Cash line is a flexible loan that provides you cash up to Rs.500,000 without any

security requirements. It empowers you to take control of your finance. UBL Cash line is

aimed to make your life easier. ZINDAGEE ASAAN. Whether you are a salaried

individual or a businessman, UBL Cash line takes care of your cash requirements.


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UBL CREDIT CARD

Welcome to the world of UBL Credit Cards the most exciting and vibrant credit card

brand in Pakistan. We offer you a range of innovative and exciting cards that is not only

powered by the security of chip but also enable you to personalize it any way you want.

UBL DRIVE

Accelerate your life; Drive the way that suits you! UBL Drive is a unique auto financing

product which offers you features, option and flexibility unmatched by any other bank,

because at UBL, You come first.

4.11 FINANCIAL SERVICES

4.11.1 NEW CAR FINANCING

UBL Drive allows you to drive away in your own car by making a down payment of just 15%

and to top that with low monthly installments.

4.11.2 USED CAR FINANCING

With UBL Drive you can buy favorite used car (up to 5 year s old) at the most affordable

rates.

4.11.3 CASH YOUR CAR

UBL Drive is not a car loan; it’s financing facility that gives you Cash on your car, you

can get up to 75% of your car value.

4.11.4 UBL MONEY

UBL money, the personal installment loan from UBL provides you with power, Control

convenience and the flexibility to manage your financial requirements and realize on

your dreams.

It’s about buying new furniture or marriage expenses, financing the education of your

child or enjoying vacations abroad! UBL Money caters your needs handsomely. You


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can borrow any sum between 50,000 to 500,000 (PKR) and payoff up till 5 years. We

know what you need at what time. Just give us the opportunity and let us serve

you best.

4.11.5 UBL WALLET

With International power of UBL Wallet, now with the power and international

acceptance of VISA! Your Wallet VISA ATM & Debit Card has all the convenience and

security you desire and the quality you deserve. This Wallet holds all the cash in your bank

account.

4.11.6 UBL e-STATEMENT

UBL is pleased to announce the launch of the UBL e-statement facility which it easier for

you to get your statement of accounts and automated transactional debit/credit alerts

right into you inbox.

4.11.7 UBL Pay Plus

If you are a permanent employee of a company (Government, Semi-Government, MNC or

Local Corporate Entity/Private/Public Limited), which disburses salary through UBL, then

UBL Pay Plus (loan against salary) is the right product for you. Through UBL Pay Plus, you

can now easily avail a loan based on your salary level.

RECOMMENDATIONS

Recommendations are considered to be the most important part of an internship report,

without which no report is considered complete and meaningful. This part of the report is

based on the previous sections.

6.1 HUMAN RESOURCE DEPARTMENT

The importance of manpower cannot be denied in any organization. In case of banks it is the

most valuable asset, because the bank is very sensitive organization and to be in harmony

with this sensitivity, need for proper human resource is felt badly. Critical analysis of


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UBL necessities recommending suggestions that would increase bank’s efficiency and

effectiveness.

6.2 POLITICAL INTERFERENCE

The political intervention in the bank needs to be stopped so that the top hierarchy as well

as the personnel placed at other important levels of the institution is not changed Just on

political grounds and the on going developmental work is not obstructed. It will enable the

management to formulate long term strategies and their proper implementation

because the long term policies, accurately based on calculated risk, have proved the

pivotal role players for organizational sustainable development.

6.3 BASIS FOR PROMOTION

A sizable portion of the officers of UBL, are promoted in without test and interviews to

officer’s cadre. The promotion policy must be too tight and transparent that no one may have

the chance to be promoted on criteria other than the required qualification,

experience and performance.

6.4 NEEDS OF CHANGE IN RECRUITMENT POLICY

It is important to say that the external level market is full of the required talent like MBA, M.

Com etc, But on the country only graduation with simple subjects is still the requisite

qualification for officer’s cadre, which has already worked amply in the devastation of

UBL.

6.5 REFRESHER COURSES

The Human of the bank should frequently conduct meaningful refresher courses,

seminars and workshops with a view to improve the knowledge of the staff. Due to

severe competition and technological developments, the banking business is

experiencing rapid changes therefore the HRD should have arrangements for staff

trainings to cope with the new changes that may become threats for the interest of the

bank.


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6.6 TRAINING FOR CREDIT MANAGEMENT

Special trainings on credit management should be imparted to the finance dealing staff.

Financing is main fountain bank’s income. Sound finance is extremely necessary for

opening of springs of the smooth inflow of the income.

6.7 INTRODUCTION OF NEW COURSES

The human recourses division of the bank should focus on the restoration of the

corporate image of the bank by floating programs such as, marketing excellence,

courses on corporate culture and others. Usually in businesses the wholesalers,

retailers and other intermediaries are finished by opening a network of the business own

outlets. It works as profit maximization devise.

6.8 CAREER DEVELOPMENT

As a matter of personnel policy HRD of UBL should prepare a plan showing the future

growth potential of employees on the job performance and evaluation and it should be

made known to the employees. In this regard, employees should be given opportunities to

show their performances, which would help in their career development.

Learning

Week 1:

I am very thankful to the manager and the other whole staff of UBL that they welcomed meon the first day of my internship. The manager introduced me to the staff and told me about

the main functioning areas of the bank. My first whole week spent in introduction to the

banking terms

Vertical Analysis of Balance sheet

2010% 2009% 2008% 2007% 2006%


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ASSETSCash and balances with treasurybanks

9.65 9.86 8.27 10.84 11.56

Balances with other banks 2.60 0.87 1.24 0.79 3.31

Landings to financial institutions 1.77 3.73 3.76 4.67 6.98

Investments 32.13 21.69 19.21 21.79 15.89

Advances 47.7 57.13 61.29 56.45 58.42

Operating fixed assets 3.2 3.53 2.93 3.19 1.23

Deferred tax asset 0.185 0.098 0.34 0 0.21

Other assets 2.6 2.78 2.91 2.24 2.36

Total Assets 100 100 100 100 100

LIABILITIES

Bills payable 0.72 0.83 0.86 1.14 1.07

Borrowings 6.45 5.67 7.30 11.14 9.09

Deposits and other accounts 78.8 79.9 79.9 75.74 79.16

Sub-ordinate loans 1.71 1.93 1.98 1.13 1.41

Deferred tax liability -net 0 0 0 0.42 0

Other liabilities 2.51 2.33 2.76 2.41 2.19

Total Liabilities 90.20 90.16 92.75 92 92.94

Presented by

Share capital 1.75 1.79 1.67 1.53 1.52

Reserves 3.10 3.05 2.55 1.93 1.96

Un-appropriated profit 3.75 3.58 2.74 2.95 2.93Surplus on revaluation of assets -net of deferred tax

1.17 1.39 0.27 1.58 0.62

Total equity 9.79 9.83 7.24 7.99 7.05

Horizontal Analysis of Balance Sheet

2010% 2009% 2008% 2007% 2006%

ASSETSCash and balances with treasurybanks

137.84 125.60 102.3 117.54 100

Balances with other banks 129.62 38.58 53.41 29.86 100

Landings to financial institutions 41.87 78.32 77.11 83.80 100

Investments 333.89 202.41 172.95 171.84 100

Advances 134.94 143.17 150.07 121.04 100

Operating fixed assets 428.39 418.87 344.28 323.22 100

Deferred tax asset 143.20 67.15 226.72 0 100

Other assets 185.97 168 176.07 119.15 100


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Total Assets 165.09 146.41 143.06 125.28 100

LIABILITIES

Bills payable 110.63 112.86 113.89 133.3 100

Borrowings 117.02 91.17 114.82 153.55 100

Deposits and other accounts 164.33 146.84 144.31 119.86 100

Sub-ordinate loans 199.81 199.88 199.95 99.97 100

Deferred tax liability -net 0 0 0 0 0

Other liabilities 189.62 155.92 180.40 138.14 100

Total Liabilities 129.21 142.03 142.77 124.01 100

Presented by

Share capital 189.06 171.87 156.25 125 100

Reserves 261.34 228.45 186.79 123.65 100

Un-appropriated profit 211.18 178.50 133.58 125.93 100Surplus on revaluation of assets -net of deferred tax

309.59 325.62 61.66 316.28 100

Total equity 229.09 204.05 146.87 142.05 100

Vertical Analysis Income Statement:

2010% 2009% 2008% 2007% 2006%

Mark-up / return / interest earned 100 100 100 100

Mark-up / return / interest expensed 42.52 46.08 46.34 100

Net mark-up / interest income 57.48 53.91 53.65 100Provision against loans and advances - net 11.81 18.21 12.96 100Provision for diminution in value of investments-net

Bad debts written off directly 1.67 2.43 2.63Net mark-up / interest income after provisions

43.99 33.26 38.05 100

Non mark-up / interest income

Fee, commission and brokerage income 10.68 9.69 12.03 100

Dividend income 0.99 0.99 1.13Income from dealing in foreign currencies 2.78 1.98 3.45

Gain on sale securities 0.26 1.03 0.38 100Unrealized loss on revaluation investmentsclassified as held for training

.064 0.0049 0,037 100

Other income 2.38 4.98 3.59 100

Total non-mark-up / interest income 17.05 18.68 20.56 100

Non mark-up / interest expense

Total non mark-up / interest expenses 31.15 28.98 31.90 100

Profit before taxation 29.90 22.96 26.72 100

Taxation 11.09 7.92 10.67Profit after taxation 18.80 15.04 16.05 100


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Un-appropriated brought forward 0 27.28 30.15 100Transfer from surplus on revaluation of fixedassets-net of tax

0 0.41 0.48 100

Profit available for appropriation 18.80 42.80 46.68 100

Horizontal analysis of Income Statement

2010% 2009% 2008% 2007% 2006%

Mark-up / return / interest earned 179.83 185.21 157.37 124.41 100

Mark-up / return / interest expensed 207.83 232.24 198.41 139.65 100

Net mark-up / interest income 163.47 157.88 133.51 115.55 100

Provision against loans and advances - net 344.83 516.18 228.59 278.42 100

Provision for diminution in value of investments-net

100

Bad debts written off directly 370.06 551.69 507.71 347.17 100Net mark-up / interest income after provisions

140.73 109.59 106.53 95.35 100

Non mark-up / interest income

Fee, commission and brokerage income 142.88 133.58 140.88 129.97 100

Dividend income 70.58 72.41 70.22 65.53

Income from dealing in foreign currencies 250.67 183.99 272.13 125.40

Gain on sale securities 56.57 224.10 71.49 302.41 100Unrealized loss on revaluation investmentsclassified as held for training

100

Other income 191.9 412.8 252.73 219 100

Total non-mark-up / interest income 145.65 164.34 153.69 129.41 100

Non mark-up / interest expense

Total non mark-up / interest expenses 164.95 158.08 147.84 122.04 100

Profit before taxation 124.14 98.19 97.07 90.99 100

Taxation 136.46 100.37 114.88 95.41

Profit after taxation 117.86 97.08 88.01 88.74 100

Un-appropriated brought forward 225.88 212.95 169.09 100153.37 142.61 123.86 100

Transfer from surplus on revaluation of fixedassets-net of tax

267.87 267.87 66.72 100

Profit available for appropriation 154.01 143.31 123.54 100

CONCLUSION

Every work we have done on our lives has it failure and successful aspects. Theinternship main purpose was to understand the practical life that how professionally we have


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to start our work and in manner that can reveal our path to the future. As I worked in a

practical environment I am confident to work in a financial institution. The main

intrinsic worth is being more confident through meeting and understanding the behavior of

people (customers, employees). It is to convince someone according to their requirements

and their psyche and to drive some one to get products or services. As according to

demerits there is always usual in our environment where different types of personalities

meets and do work at one place. I have learnt that how management is difficult to do

and how we can make it more effective. Now after my internship I know how the bank works.

How is the professional environment and how we have to do work there?


Values Work

Documents

Transcript of Values Work