INTERNSHIP REPORT ON UNITED BANK LIMITED

PRESENTED TO:
Dr.Wasim ur Rehman
PRESENTED BY:
Abuzar Siyami
(BB 17005)
SESSION:
(2017-2021)

DEPARTMENT OF Business Administration

UNIVERSITY OF PUNJAB GUJRANWALA CAMPUS
 Executive Summary

We have chosen United Bank Limited for our internship because United Bank Limited Pakistan
has a wide network of branches inside the country and in all commercial centers of the world as
well.
Agha Hassan Abedi founded the United Bank Limited in 1959 and under his leadership, it
became the second largest bank in Pakistan. In 1974, the Government of Pakistan nationalized
the bank. In 2002, the government of Pakistan sold 51 percent shares of the bank to a consortium
of Abu Dhabi Group and Bestway. Also, the bank merged its operations in the UK with those
belonging to National Bank of Pakistan to form United National Bank Limited. United Bank
owns 55% of the joint-venture and National Bank of Pakistan owns the remainder.

My internship program period is 15 January 2021 to 1 March 2021. During internship, I worked
in operation department under which are Accounts opening Department, clearing department,
sales and marketing department.

The main purpose of internship is to learn by working in practical environment and to apply the
knowledge acquired during the studies in a real world scenario in order to tackle the problems
using the knowledge and skill learned during the academic process. In this report the detailed
analysis of the organization has been done and all the financial aspects have been evaluated to
analyze the current position of the organization.

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 Acknowledgment

Most humbly we express our thanks to the supreme ruler, the Allah Almighty, the most
benevolent, ever merciful, who give us the strength that we fulfill our task and more than grateful
to our parents whose prayers, moral and financial support is always with us as a guiding light in
the struggling ways of my life.
Heartiest thanks go to our supervisor, Mr. Muhammad Sarfraz Khan and all faculty members of
Department of Commerce.
We are also thankful to our siblings and friends as their amity support us at every point.

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 Dedication

I would like to dedicate this report to my dear parents and respected teachers who guided me
through my studying carrier and still doing their best for me. To be here in this institution at this
level, I am just because of my parents, especially their training, guidance, love, affection and
motivation. I pray that I can serve my parents as best as I can.

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 Table of Contents

Executive Summary ……………………………………………………………………………..2

Acknowledgement ……………………………………………………………………………….3
Dedication………………………………………………………………………………………...4
1. Introduction to Report………………………………………………………………………..7
2. Organizational profile………………………………………………………………………...9
2.1 History of organization……………………………………………………………………...9
2.2 Description of Associated companies……………………………………………………...11
2.3 Products/ Services of organization………………….........................................................12
2.4 Corporate Information……………………………………………………………………..24
3. Vision and Mission…………………………………………………………………………...27
4. Management Hierarchy……………………………………………………………………..28
5. Departments ………………………………………………………………………………....29
5.1 General banking department………………………………………………………………29
5.2 Cash department……………………………………………………………………………33
5.3 Clearing department……………………………………………………………………….33
5.4 Accounts department……………………………………………………………………….35
5.5 Remittances/ Foreign trade department………………………………………………..…35
6. Area of Internship……………………………………….....................................................38
6.1 Accounts department……………………………………………………………………….38
6.2 Clearing department………………………………………………………………………..44
7. Work Done During Internship……………………………………………………………...50
7.1.1st week,.........,.........................................................................50
7.2. 2&3 weak,.........,.........................................................................51
7.3. 4&5 week,.........,.........................................................................51

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7.4.6 week,.........,......................................................................... 56 8.UBL
HR Polices and Procedures.......,...........................................57. 9.UBL Market
Polices and procedures ......................................60
10. Financial Analysis……………………………………………………….............…………70
10.1 Horizontal Analysis…………………………………………………………………………
71
10.2 Vertical Analysis……………………………………………………………………………
73
10.3 Ratio
Analysis……………………………………………………………………………….76
10.l3.1 Ratio Analysis for financial sector…………………………………………………………
82
11. Strategic
Analysis…………………………………………………………………………….83
11.1 PESTEL
Analysis…………………………………………………………………………...84
11.2 SWOT
analysis……………………………………………………………………………...85
12. Recommendation……………………………………………………………………………88
12.1 Recommendations for the firm…………………………………...………………………88
122 Recommendations for future interns…………………………………………………….89
13. Conclusion…………………………………………………………………………………..90
Bibliography…………………………………………………………………………………….90
Glossary…………………………………………………………………………………………91
Annexure ………………………………………………………………………...91

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Chapter-1

Introduction to Report

1.1 Background of the study

Banks play an important and active role in the economic development of a country. Effective,
efficient and disciplined banking system brings about a rapid growth in the various sectors in the
economy, that’s why it is considered as lifeblood of modern economy. They facilitate and
expedite trade and commerce and provide a variety of services that can’t imagine without banks1.

We have chosen United Bank Limited for our internship because United Bank Limited Pakistan
has a wide network of branches inside the country and in all commercial centers of the world as
well. Through this huge network of branches the bank is providing all sorts of services that have
become part of the modern banking. United Bank Limited Pakistan successfully adopts new

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innovations and new products, which are rapidly adding up in the product mix of banking
industry. Besides this, UBL plays an important role in the economic growth of Pakistan.

The main objective of studying the organization is to prepare the B.com internship report to be
submitted to the Supervisor.

1.2 Purpose

Working as an internee in an organization helps student in many ways.

 It helps students in developing business related skills and attitude of a good business
person.
 There is a difference between what is taught in the class and how a job is actually
performed. So working as an internee in an organization assist students to learn how a job
is actually performed.
 As internee is placed in various departments, it helps him to get familiar with many jobs
and hence broadening his knowledge base.

1.3 Scope

 It covers the performance of UBL.

 It will help students of the department in preparing assignments and reports on UBL.
 As this report covers the financial growth and SWOT analysis of UBL, it may assist
management of UBL to assess their performance.

1.4 Scheme

This report has been divided into four sections.

Section I

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This section has one chapter which is the introduction to the report.. It summarizes the
background, purpose, scope and scheme of the report.
Section II
This section consists of four chapters which cover the banking history, overview of UBL,
departmentalization, products and services of UBL.
Section III
This section contains two chapters which are about financial analysis and SWOT analysis of
UBL.
Section IV
This section has one chapter which gives the findings and recommendations based on the critical
analysis of the organization.

Chapter-2

Organizational Profile

2.1 History of organization:

“The reserve Bank of India which was given the responsibilities of exercising control over
banking sector did not perform its duties properly in Pakistan.”

The real momentum was given to banking system when the State Bank of Pakistan, was
established on 1st July 1948. But a real turn took place in the banking section when a renowned
banker Agha Hassan Abdi took initiative of opening a bank, which he announced to the different
mode from the others. His dream became true when the first branch of United Bank Limited

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(UBL) was opened at Macleod Road (now 1.1. Chandigarh Road Karachi) on 7 th November
1959.

This achievement was recurred after passing through many problems and after completion of a
lot of legal formalities. UBL was established on 24th July 1959 as a public limited company with
registered office at 1.1 Chandigarh Road, Karachi. The authorized capital was Rs. 2, 00, 00,000
issued, subscribed and paid up capital was a Rs 1, 00, 00,000 share of Rs. 101 each. . The bank
currently operating through 1300, branches in all the major cities of the Pakistan and its
registered office are situated at state life insurance corp. Building # 1, 11. Chandigarh road,
Karachi.
United bank limited is one of the most famous banks working in different area of Pakistan; UBL
is now officially the second largest private sector bank in Pakistan with its 25 percent growth in
deposits to RS 237 billion in 2004.
Progressive Banking was a vision that came true in 1959 with the birth of UBL. It brought in an
era of modern banking and customer care beyond the ordinary.
The Bank launched a variety of consumer banking products and services – UBL Drive, UBL
Cash line, UBL Address, UBL Business Line, UBL Wallet ATM card and UBL Business
Partner.
In 2002, the Government of Pakistan sold 51 percent shares of the bank to a consortium of Abu
Dhabi Group and Bestway. Also, the bank merged its operations in the UK with those belonging
to National Bank of Pakistan to form United National Bank Limited. United Bank owns 55% of
the joint-venture and National Bank of Pakistan owns the remainder.
In June 2014, the government sold-off its remaining 19.8 percent shares in the bank for $387
million.
In November 2018, UBL announced that it was voluntarily shutting down its New York City
branch due to it being commercially nonviable to operate.
UBL is one of the largest commercial banks in Pakistan with assets of over RS. 1.62 trillion.
UBL offers its services through a nationwide network of over 1390, branches spread all over
Pakistan and 18 overseas branches. The Bank earned RS 4.3 billion pre-tax profits in 2003, a 59
percent increase over the previous year, and announced a dividend of 22.5 per cent. This
remarkable performance was based on a record growth of 38 percent in advances, which grew

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from RS 72.8 billion in 2002 to RS 100.2 billion in 2003 driven by growth in deposits from RS
158.3 billion in 2002 to RS 185.1 billion in 2003.
The Bank was privatized in 2002, through the sale of 51 percent stake to a consortium of the Abu
Dhabi Group led by his Highness Shaikh Nahayan Mubarak al Nahayan and the Bestway Group
led by Sir Mohammad Anwar Perwez. The issue is unsecured and subordinated to payment of
principal and profit to all other indebtedness of the Bank including deposits.
United Bank Limited is one of the largest commercial bank in the country. With almost 47 years
of good standing to its valued clients, it has stood the test of time, producing assets of over RS.
1.62 trillion.
It offers its services through a wide network of over 1390, domestic branches all over Pakistan
and 18 overseas branches as part of global network. Its revenue Rs.77.83 billion in 2015 and net
income Rs. 25.73 billion in 2015.

2.2 Description of Associated Companies:

 UBL Insurers Limited

 Oman United Exchange Company LLC

2.2.1 UBL Insurers Limited:

UBL Insurers Limited is an associated company of United Bank Limited. It is jointly owned by
UBL and the bank’s sponsors, the bestway Group. UBL Insurers has been licensed to transact
general insurance business in Pakistan with effect from 5 th January, 2007. It is registered as an
Insurer with the Securities and Exchange Commission of Pakistan. UBL Insurers Limited has
insurance associated with Insurance Association of Pakistan (IAP).
 Total Assets 4.8 Billion PKR
 Total Equity 1.4 Billion PKR

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  Profit Before Tax 364 Million PKR
 Investment & Other Income 74 Million PKR

Products:
 Free Insurance Coverage
 ATM Guardian

2.2.2 Oman United Exchange Company LLC:

Business Summary Provides foreign exchange and money transfer services.

Country of Incorporation Oman
Ownership type Private
Established in 1983
Primary Sector Financial Services
Number of Employees 59

2.3 Products/ Services of organization

UBL is at the forefront of the banking and financial services sector in Pakistan. The bank has an
extensive and varied range of products and services. We cater to all financial needs for Pakistanis
in and out of Pakistan. We provide financial services to individuals of all social strata, economic,
backgrounds and geographic locations.
1-Deposit Products:

1.1- UBL Mukammal Current Account

UBL Mukammal Current Account offers a range of benefits and free services allowing
transactional flexibility to the modern day customer. It is a Pak Rupee non-remunerative
checking account that aims to provide necessary tools to Individuals, Traders, Businessmen and
all commercial entities. These A/c’s are regulated under the rules and regulation of SBP
especially deposits of $1000 is free from all exchange control. On maintaining such accounts
these is no restriction on the customer residence. It is become that they can take and deposit

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money as money times as they deem right during the banking hours. As such these accounts are
payable on demand. Host of free services include:

 Debit/ ATM card annual free

 Issuance of Cashier’s Cheque
 Cheque Book
 UBL Go Green SMS Alert
 Free internet banking
 Free accidental death & disability insurance
 Duplicate account statement
 Duplicate cashier’s cheque
 Over the counter cash deposit
 Cancellation of CC

1.2-Saving Account

The main objective of maintaining saving deposits in running status by the bank is to
develop saving habits in the people of our country. Such people may include young people,
married or household woman. These people can start their a/c by depositing only a small amount
at a time. These accounts can also be opened in foreign currencies. Some year ago it was not
possible to withdraw money from saving a/c more than two times in a weak and prior notice was
to given the bank for drawing money above a certain level. This restriction is now removed by
SBP and the customer can deposit and withdraw money as and when required by the client
during the banking hour.

Some of the silent features are as under:

 Interest is payable by the bank in accordance with the rates announced by SBP.
 No restriction on the number of withdrawals and the amount of withdrawals during a
week.
 The funds of this a/c can be utilized for purchasing Government and other securities
such as foreign exchange leader certificates, special saving certificates and foreign
currency bearer certificate.
 Principal and interest earned there is on exempt from income tax and Zakat.

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  In accordance with Govt. of Pakistan regulation, customer’s deposits are free from all
exchange controls.
 If payment of a certain amount is to be made to a third party at regular intervals i.e.
monthly, quarterly, standing instruction to this effect can be issued to the banker.
 TC can be issued to the customer by debiting the customer’s a/c for the amount.
 Preferences given to foreign currency saving account holder in providing locker facility.
 Conversion and transfer of the currency into any other currency or country is not
restricted.

1.3-UBL Zindagi Account:

It is a unique monthly savings account, offering competing high saving rates for Senior
Citizen segment aged 60 years or above, so that their financial needs are met with ease.
Eligibility:
All individuals (single and joint account holders) of age 60 years or above are eligible for this
scheme. However, in case of joint account, primary account holder should be aged 60 years or
above.
 This account can be opened with minimum PKR 100/-.
 There is no minimum or maximum balance limit for this account.

Key features:
 Higher Rate of Return
 Monthly profit payout
 Complete Transactional Flexibility
 Free cheque book of 25 leaves (1st cheque book only)
 Free Debit card issuance

Profit calculation mechanism is based on monthly average balance and profit will be
automatically credited to the account every month.

1.4-Unizar Foreign Currency Savings Account:

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 It is ideal for those customers and individuals who wish to maintain a secure foreign
currency transactional account which also provides a return. It is available in 5 leading
currencies: US Dollars, British Pound, Euro, Saudi Riyal and UAE Dirham.

Special Features:

 Profit calculation is on the basis of minimum monthly balance touched during a

calendar month.
 Profit payout bi-annually.
 No cash handling charges
 No restriction on minimum number of transactions.
 Zakat is exempted.

Minimum Deposit:

Minimum deposit required:

USD: 500
EURO: 400
AED: 2000
GBP: 300
SAR: 2000

1.5- UBL Unizar Foreign Currency Current Account:

It is ideal for those customers and individuals who wish to maintain a secure foreign currency
transactional account. It is available in 5 leading currencies: US Dollar, British Pound, Euro,
Saudi Riyal and UAE Dirham.

Special Features:
No cash handling charges
No restriction on minimum number of transactions.
Zakat is exempted

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Free Accidental Death and Disability Insurance Coverage up to Rs. 2.5 million.
Minimum Deposit:

Minimum Deposit required:

USD: 500
EURO: 400
AED: 2000
GBP: 300
SAR: 2000

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1.6- UBL FCY Uniflex:

UBL has introduced a checking account ideal for rate conscious individuals, traders,
organizations, monthly savers and customers who want transactional flexibility. You can now
afford an amazing rate of return, plus value added benefits only available from the UBL FCY
Uniflex, the best Foreign Currency Savings Account.

UBL FCY Uniflex is especially designed in a way that it will offer higher returns on higher
balances.
Amazing tier-based profit rates.
Ease of cross-currency conversions.
Monthly profit payment on average balance.
Available in US Dollar, Pound Sterling, Euro and UAE Dirham.
Free services including e-statements and over the counter cash deposits.
Online funds transfer (Ac-Ac) & payment through cheque.

FCY Uniflex Rates & Tenors:

Five rate tiers are offered to FCY Uniflex customers:

Effective from Jan 01, 2020

Deposit Tiers - UBL FCY Uniflex USD GBP EURO UAE
Dirham
For monthly average balances up to 5000 0.71% 0.05% 0.001% 0.05%
For monthly average balances above 5000 up 1.00% 0.05% 0.02% 0.05%
to 10000
For monthly average balances above 10000 up 1.05% 0.05% 0.02% 0.05%
to 25000
For monthly average balances above 25000 up 1.10% 0.15% 0.02% 0.05%
to 100000
For monthly average balances above 100000 1.15% 0.15% 0.02% 0.05%

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1.7- UBL Mahana Aamdani Savings Account:

UBL New Savings Account is a unique monthly savings account, offering competitive high yield
tier based saving rates, primarily targeting rate conscious customers, who are also looking for
transactional flexibility.

Eligibility

UBL Mahana Aamdani Savings Account can be opened by the following:

 Individual Single and Joint Accounts

 Partnerships
 Joint Stock Company Accounts (public/private)
 Govt. institutions (Federal/Provincial)
 Sole Proprietorship
 Self Employed Individuals
 Small and Medium Enterprises
 Salaried/ Retired Individual / Pensions
 Housewives

Minimum denomination to open this account:

This account can be opened with minimum PKR 100/-.

Minimum/ maximum amount that can be deposited in this account:

There is no minimum or maximum balance limit for this account.

Key Features
Following are the main features:

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Tier Based Account
Higher Rate of Return
Complete Transactional Flexibility

1.8- Basic Banking Account:

Basic Banking Account (BBA) is conceptualized to facilitate and provide basic facilitates to
customers across Pakistan without the requirement of maintaining a minimum balance and can
be opened at any UBL branch. These accounts are ideal for customers with a need of low number
of monthly transactions especially students, housewives and retired personnel.

Special Features

 The minimum initial deposit at the time of account opening is to be Rs. 1000/-.
 Basic Banking Account will be a current account.
 There is no minimum balance penalty on UBL BBA accounts
 Maximum of two deposit and two withdrawals (cash or clearing) per month are allowed
free of charge. However, any transaction after those mentioned above will be charged a
flat fee of Rs. 50/-. In addition to the regular charges of services as per SOC. This charge
will be system generated end of day, once the customer exhausts his free transaction
limits.
 BBA customers will be allowed unlimited free ATM withdrawals from UBL’s own
ATMs. However, withdrawals from other bank’s ATMs will be charged as per the
existing SOC (currently Rs. 15/- per transaction). Annual fees including issuance and
renewal of ATM card will be charged as per existing SOC.
 All other banking services provided will be charged as per the prevailing Soc.
 Like the regular Current accounts, UBL BBA will also be Zakat exempt accounts.

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1.9- UBL Asaan Account:

UBL Asaan Account is a new and convenient service through which any individual can open an
account. Simply fill out a brief form and pay initial deposit as low as Rs. 100. UBL resolves to
give maximum ease and convenience to every Pakistani.

Special Features

Flexibility of Opening Current or Savings Accounts

No minimum balance required
No fee for Debit Card Issuance
No service charges for account opening or closing
Any of the following documents may be used as a proof of identity for opening of Asaan
Account:-
1 Computerized/ Smart National Identity Card
2 Pakistan Origin Card (POC)

Rules of the Account:

 UBL Asaan Accounts are meant for resident individuals having Pakistan Nationality only
 One CNIC holder is entitled to One UBL Asaan Account
 A regular UBL Account holder cannot open a UBL Asaan account
 Transaction Limits/ Turnover:-

1 -Total Debit per month: Rs. 500,000/-

2- Total Credit Balance Limit: Rs. 500,000/-
 Exceptions for transaction Limits/ Turnover:-

1- Inward Remittances
2- Credit of Profit Return on UBL Asaan Saving Account
 3 Bank Charges, government taxes or levies from competent authority

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  Restriction on cross border (outward) transactions except for card based-accounts subject
to above specified Transaction limits/ Turnover.

1.10- First Minor Savings Account:

UBL First is a savings account opened on behalf of a child in the name of the father or mother or
a court-appointed guardian and the minor.
UBL First is designed especially for children and aims at becoming every child’s first bank
account, helping inculcate a savings habit. It is tailored to meet a child’s future needs in a
planned and convenient manner.

Special Features

 Every accountholder is entitled to a welcome pack

 Two ATM Debit Cards are provided; one is a specially designed UBL First Pocket-
Money Card for the withdrawal of profit from the linked account. The other is a standard
ATM Debit Card (optional) – this allows you to withdraw money from the principal
account
 Account opening, birthday and account anniversary surprises
 Free E-statements
 The account holder is entitled to value added services that include internet banking
facilities
 No minimum balance penalty levied on the account

Rules of the Account

 UBL First Account can be opened for any child aged between one day and 18 years
 UBL First Account can be opened with a minimum amount of PKR 100/-. There is no
limit on the maximum amount of investment

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  The cheque book (for the principal account) and the Pocket-Money Card will be issued
jointly in the name of the minor and the father/mother/ guardian
 The UBL First Pocket-Money Card can be used to access the monthly profit in cash from
any ATM machine or be used for shopping at retail outlets
 The facility of online use of Debit Cards will be available once registration procedures
have been duly completed
 Profit in calculated on monthly average balance
 Detailed Terms & Conditions can be viewed in the account opening form

2- Uni cash:

Now days carrying cash while going out of your place is very risky. Every body wants
maximum security while keeping is money in his pocket. People make use of TC and other
various credits cards for this purpose. UBL provides such facility through UNI-CASH the
management of UNI-CASH is carried out in following ways.

a. PIN (Personal Identification Number)

Personal identification number (PIN) is very important number allotted when a UNI-CASH card
is issued to the customer. This number is made unique by giving four-digit can financial number
and when it is used in conjunction with the UNI-CASH card is enable the customer to avail the
cash point facilities. The allotted PIN number is kept event confidential form the bank staff by
printing it in a special number buy the computer on a pre-sealed, tamper proof PIN millers.
These PIN-MILLERS can only be seen when the customer opens the envelope.

b. Pin Change:

When a customer after availing the facility first time with the UNI-CASH card, he/she will be
required to change PIN (Personal Identification) number is sought from security point of view.
The change number selected by the customer should be such that the customer can easily
remember it and cannot be easily guessed by other.

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 c. Card Serial Number:

Card serial number is given to a particular UNI-CASH card which the customer can know by
looking at the card. The first line contains the UNI-CASH card serial number with the
customer’s name, a/c number and card expiry date is followed in the subsequent lines.

d. Withdrawal Limit:

This limit is determined at the time of depositing money for availing the facility of UNI-CASH
card. The limit depends upon money deposited.

e. Cash Points:

To facilitate the process of getting money through UNI-CASH card a number of cash points are
available in the country. The machines may be used round the clock. UNI-CASH card are used
in these machines for drawing money from the account and for availing a number of other
facilities such as the following.

i. Balance Inquiry

ii. Mini Statement

iii. PIN Change

3- UBL Wallet Visa Card:

UBL WALLET VISA is a secure innovative card providing the customers the benefits of both an
ATM (automatic tailor machine) and a debit card locally and internationally.

With UBL VISA WALLET, the customers have the power of using your card at more than 925
ATMs across the country and over 900,000 VISA ATM locations worldwide in 150 countries
and over 5,000 ORIX locations across the nations and 22 millions VISA merchant locations
worldwide. It can be used 24hour day,

7 days a week at all UBL ATMs as well as others ATMs in 1Link & MNET network.

ATM CARD USAGE:

1. Insert the card in to the slot labeled “insert card”.

2. Select the Language.

3. Use the keypad to enter the personal Identification number (PIN).

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MAIN MENUE:

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

CASH WITHDRAWAL:

1. Select “cash” withdrawal” from the main menu.

2. Select the account type.

3. Enter the required amount in multiples of Rs.500* and press OK.

MINI STATEMENT:

1. Select mini statement from the main menu.

2. Select the account type.

3. Collect the mini statement.

PIN CHANGE:

1. Select “pin change” from the menu.

2. Use the keypad to enter your new PIN.

3. Reenter your new PIN to confirm.

FUNDS TRANSFER. (From UBL to UBL to others banks):

1. Select “funds transfer” from the menu.

2. Select the type of funds transfer you to wish to conduct.

3. Select the account from which you wish to transfer funds.

4. Select the account to which you wish to transfer funds, or type in the

account number according to the given layout.

5. Type in the amount of funds that you wish to transfer.

6. Confirm the account name and number and amount of funds to execute

The Funds transfer.

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UBL Premium Debit Master Card:
It is also a worldwide recognized card with the acceptance of Master Card. Highest transaction
limit for this card is per day Rs. 400,000 per day, which includes ATM withdrawal of Rs.
200,000 per day point of sale (PSO) transaction or interest shopping of Rs. 200,000 per day.

4-Credit Card:
The UBL Credit Cards is accepted worldwide which allows instant cash withdrawal. Free travel
accident insurance is also provided whenever someone purchases airline, train or bus ticket, in
case of any mishap occurred during the travel. The amounts covered in case of any accident are
Rs. 3.5 Million for classic card and Rs. 7 Million for gold card.

5-UBL Smart Cash Loan:

UBL Smart Cash offers you easy access to cash as you can get up to 85% cash against your
investments / savings in UBL Mutual Funds. Smart Cash provides you a financial solution with
flexibility.

6-UBL Address Home Loan:

This product is designed to help people make their dreams come true by helping them to afford
their ideal property. It is a product that offers flexibility and affordability as it offers payment
terms of anything from 1 to 20 years. It provides borrowers with the opportunity to purchase
their own home, build their own home.

2.4 Corporate Information:

Board of Directors:
Sir Mohammad Anwar Pervez, OBE, HPK- Chairman/Non-Executive Director
Lord Zameer M. Choudrey, CBE, SI PK – Non Executive Director
Mr. Haider Zameer Choudrey – Non Executive Director
Mr. Rizwan Pervez – Non Executive Director
Mr. Arshad Ahmad Mir – Non Executive Director
Mr. Amar Zafar Khan – Independent Director

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Mr. Tariq Rashid – Independent Director
Ms. Shazia Syed – Independent Director
Shazad G. Dada – President & CEO

Board Audit Board Human Board Risk & Board IT Board

Committee Resource & Compliance Committee Nomination
Compensation Committee Committee
Committee
Ms. Shazia Syed Mr. Tariq Rashid Mr. Arshad Mr. Tariq Rashid Sir Mohammad
(Chairman) (Chairman) Ahmad Mir (Chairman) Anwar Pervez,
(Chairman) OBE, HPk
(Chairmen)
Mr. Haider Sir Mohammad Lord Zameer M. Lord Zameer M. Lord Zameer m.
Zameer Anwar Pervez, Choudrey, CBE, Choudrey, CBE, Choudrey, CBE,
Choudrey OBE, HPk SI PK (Member) SI PK (Member) SI PK (Member)
(Member) (Member)
Mr. Rizwan Mr. Arshad Ms. Shazia Syed Mr. Haider Mr. Arshad
Pervez (Member) Ahmad Mir (Member) Zameer Ahmad Mir
(Member) Choudrey (Member)
(Member)
Mr. Aqeel Mr. Rizwan Mr. Shazad G. Mr. Shazad G. Mr. Aqeel
Ahmed Nasir Pervez (Member) Dada (Member) Dada (Member) Ahmed Nasir
(Secretary) (Secretary)
Ms. Sadia Saeed Mr. Imran Mr. Muhammad
(Secretary) Sarwar Faisal Anwar
(Secretary) (Secretary)

Chief Financial Officer:

Mr. Aameer Karachiwalla

Company Secretary & Chief Legal Counsel:

Mr. Aqeel Ahmed Nasir

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Registered Office:
13th Floor, UBL Building, Jinnah Avenue, Blue Area, Islamabad

Registered NTN Number:

0801164-8

Current Registration Number:

723/19590707

New CUIN Registration Number:

0001026

Head Office:
I.I. Chandigarh Road, Karachi – 74000, Pakistan

Auditors:
M/s. A.F.Ferguson & Co., Chartered Accountants

Legal Advisors:
M/s. Mehmood Abdul Ghani & Co Advocates

Chapter-3
Vision and Mission

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Vision
To be a world class bank dedicated to excellence, and to surpass the highest expectations of our
customers and all other stakeholders

Mission
Be the undisputed leader in financial services for our customers
Most innovative and fastest growing bank in targeted businesses
Continue to diversify across chosen geographies
Achieve operational excellence with the highest level of compliance
Consistently create leaders through inspired human capital
Contribute positively to the communities we operate in

Core Values
Customer first
Honesty of purpose
Teamwork
Excellence
Meritocracy

Chapter-4

Management Hierarchy
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 Board of Directors

Executive Committee

President/CEO

Group Executive

Global Sales Head

Head Secured Financing Head Un-secured

National Sales Manager

Senior Sales Manager

Regional Sales
Manager

Relationship
Manager

Chapter-5
Departments

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5.1 General Banking Department:
General Banking Department is considered as the direct customer service center. It is the starting
point of all the banking operation. It opens new accounts, remits funds, honor cheque, takes
deposits, issues bank draft and pay order etc. General Banking is also known as retail banking.
Following are the major banking:
 Account opening section
 Clearing section
 Cash section
 Remittance

Account Opening:
It is a customer service section. Here three employees of the bank are always to serve their
customers. In this section people come to open different kinds of accounts and scheme. Here the
employees also issue new checkbooks, help customer to open various types of a/c, and help
customers about various types of deposit scheme etc. They also use computer for posting
purposes below is list of who can open different types of account:
Individual
Sole Proprietorship
Partnership Firm
Private/Public limited companies
Clubs
Societies
Necessities of Opening Bank Account
Safety preservations
Creation of savings attitude
Facilities of risk less income
Formation of national capital
Economic development
Establishment of social securities

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Types of Account
A- Savings Accounts.
1. Individual A/C
2. Joint NC
3. Non trading concern
B- Current Accounts.
1. Individual A/C
2. Proprietorship A/C
3. Partnership NC
4. Limited Company NC
C- Fixed Term Deposit (FDR)
D- Short Term Deposit (STD)
E- Special Savings Deposit Scheme (SSS)
F- Special Deposit Scheme (SDS)

A- Saving Account:
Savings account is meant for those who want to save a certain amount of their income and earn
on that for future needs. All features are more or less like that of CD a/c except for some
restriction that is imposed by the bank.
Requirements and Documents needed for opening bank account
1- Photographs (2 copies)
2- Nationality Certificate
3- Tax Identification Number (If any)
4- Passport Photocopy (if any)
5- Introducers A/C Name & A/C No.

1- Current Account:

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Individuals, sole proprietorship firm, partnership firm, limited companies be it private or public,
clubs, societies etc may open current deposits accounts. Currents accounts are most suitable for
all types of organizations since frequent withdrawals do not result in a penalty.
Requirements and Documents for Current Account: Individual
1- Photographs (2 copies) attested by introducer
2- Nationality Certificate
3- Introducers A/C Name & A/C No.
4- Transaction profile
5-Opening Deposit of Rs. 5000 (Min)

2- Current Accounts: Proprietorship

1- Photographs (2 copies) attested by introducer
2- Nationality Certificate
3-Transaction profile
4-Introducers A/C Name & A/C
5- Trade License
6- Opening Deposit Rs. 5000 (Min)

3- Currents Accounts: Partnership

1- Photographs (2 copies) attested by introducer
2- Transaction Profile
3- Introducers A/C Name and A/C No.
4- Opening Deposit Rs. 5000 (Min)
5- Trade License
6- Partnership Deed

4- Current Accounts: Limited Company

1- Photographs (2 copies of MD) attested by introducer
2- Nationality Certificate of MD
3- Introducers A/C Name & A/C No.
4- Trade License

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5- Memorandum of Association
6- Articles of Association
7- Certificate of Incorporation
8- Certificate of commencement (in case of the Public Limited Co)
9- Resolution
10- Transaction Profile
11-Opening Deposit Rs. 5000 (Min)

C- Fixed Term Deposit:

Deposit for a fixed period specified in advance. The banks not maintain cash reserves against this
deposit. The bank offers higher rates of interest on FDR. Minimum deposit is Tk. 10,000/-.
D- Short Term Deposit:
Short-term deposits accounts are special notice account, which are kept under short term deposit
ledger. The rate of interest on STD is subject to change from time to time. Any withdrawals from
this account require seven-day prior notice.
E- Special Saving Scheme:
A SSS customer has to deposit fixed amount of money each month for a definite period of time,
normally for 5 to 10 years. A depositor can open a SSS account for deposit of Tk 500/-, Tk
1000/-, Tk.2500/-, Tk. 5000/-, Tk. 10,000/- etc in each month.

Account Opening Procedure

The relationship between banker and his customer begins with the opening of an account.
Initially all the accounts are opened with a deposit of money by the customer and hence thes
accounts are called deposit accounts.

5.2 Cash Department

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It handles the cash in the branch, the outflow and inflow of the cash through different
transactions in the bank which mostly includes cash receiving and cash payment procedures.
Cash can be received through:
Deposit slips
Bills, cheque
Telegraphic transfer, demand draft and pay-order
Cash payments are made against payment slips, cheque, pay-order and demand draft.

In both of the case, while paying or receiving the cash, the instruments are checked and verified
by the officer. Instruments are also checked if they are past or post time, in neither of the cases
no payment is made. Signature is also verified.
One of the major instrument through which cash is deposited into the account is deposit slip. The
customer fills the slip which has following details.
Account number
Account holder’s name
CNIC number
Signature of bank officer and depositor
Contact number
Amount to be deposited in both word and figures

5.3 Clearing Department:

Clearing is a process of transfer of funds from one branch of a bank to the other branch of
another bank, which do not involve cash into the transfer process but it is done through the
services of NIFT (National Institutional Facilitation Technologies) which is provided by the
State Bank of Pakistan. A clearing house is present in the SBP which handles all the matters
related to it. Clearing instruments are cheque, demand draft, pay order, traveler’s cheque. Cheque
is made in two ways

Inward clearing:

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In which bank’s cheques are received by the bank which were given to the other bank. In other
words cheques are drawn on the bank. As the cheques are drawn on the bank, the clearing of
those cheques decreases the deposits in the bank. For the clearing of the cheque, customer
accounts verified, checked if the instrument is not tempered with and all the requirements are full
filled then the cheque is cleared i.e. funds are transferred to the other bank through online
transfer. If the cheque has to be returned then the reason for return is mentioned in the clearing
slip.
Outward clearing:
It is process in which other bank’s cheques are deposited to the bank. In this case, cheque is
drawn by the bank on the other bank. In case of outward clearing, deposits of the bank are
increased. Outward clearing is of two types
Local cheque clearing is the clearing of the cheque drawn on other banks located in
the same geographic area.
Intercity cheque clearing is the clearing of the cheque drawn on a bank outside the
local geographical area.
In this process of outward clearing, an employee of NIFT comes to the bank and collects all the
cheques and other instruments along with clearing slip is also attached. The cheques applied in
the outward clearing process are stamped with three types of stamps.
Crossing stamp (on front)
Endorsement stamp (at the bank)
Clearing stamp

Other items necessary for clearing are, date, signature verification and amount in both figures
and words should be correct. When the process of outward clearing is done then the transactions
are made through online transfer from the bank account by NIFT. When clearing is confirmed by
the NIFT then the accounts are debited or credited in the branch.
Cheques are returned on different reasons which are frozen account, limited balance etc.

5.4 Accounts Department

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Accounts department of UBL maintain customer accounts in accounting book is called cash
book. Cash book safe record of cash payment and cash received. Ledger and journals maintain
by computer.
Three types of accounts current account, saving account, fixed account.
1- Current Account
In which there is no limitation deposit and withdrawals of cash from account.
2- Saving Account
In Pakistan one person can easily open a saving account with small amount and cheque book is
issued for withdrawals return is also pay on yearly base. Depositor is bound to give the notes
before two weeks of withdraw money is large amount. Minimum amount is fixed by bank to put
the account in running position. In which bank also impose condition to withdraw money on a
specific limit.
3- Fixed Account
In which account deposit can be withdraw at any time account holder hold a specified amount of
money for specific period of time this amount cannot withdraw by cheque. Bank gives specific
interest which is decided at the time of account opening. One individual partners and companies
can maintain this account the period of deposit held by 3 month to 60 month.

4.2 REMITTANCES DEPARTMENT:

This department is concerned with the transfer of money from one place to another. In this,
various modes of transferring money are available which are discussed below.

A. Mail Transfer (MT):

In this the money is transfer from one place to another by mail. If the person is account holder of
the bank, then the banker debit his account with the amount of money he wants to transfer. The
concerned bank officer will prepare the necessary vouchers to make the mail transfer complete.
It contains on;

1) Debit Voucher: Debiting the account holder for the amount to be sent plus the
commission and postage charged.

2) Credit Voucher: credit the drawer branch

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3) Mail Transfer Register: The 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 with the same bank and then the above process starts.

B. Telegraphic Transfer (TT):

People who want to transfer money quickly and without delay use this type of transferring
money. This type of transfer is also very simple. The person who wants to transfer money fills
the TT application form. The applicant asked to deposit money to be remitted plus the amount of
commission and telegraph charges. After the amount is deposited with cashier, the officer
incharge remittances will prepare the TT message. The TT message also carried a test number
which is a sum of values derived from number items like date, amount, and the drawer branch
consecutive number etc. then this telegram is sent to the bank where the money is to be
transferred. After receiving the telegram the drawer bank makes payment after the test number is
correctly decoded according to the procedure prescribed.

C. Demand Draft (DD):

In this way the person who wants to remit money goes to the bank and fills the application form
by filling the name of the drawer branch, amount and the payee’s name. The amount to be
remitted is deposited with the cashier along with the commission on DD and the in charge of
remittances department will prepare the instrument. It is signed by two officers of the branch and
is then handed over to the applicant. The amount can be received by presenting DD to the drawer
branch personally or through a bank.

D. Uni remote (ON LINE TRANSFER):

It is the most faster transfer of money from one bank to another with in the country.

Thorough on line facility you can transfer the amount from one city to another city in no time
without commission (if you are account holder of the Bank).

In this method the transferor A/c are Debited by the Bank and the transferee A/c are Credited (to
whom the amount is transferred) by his Bank where he has A/c.

The amount is transferred in no time. Online transfer bring great revaluation in the business
world and make business more secure and fast.

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The trader transfer money to the seller through bank, and the seller sent goods to the buyer as
soon as possible, and thus buyer save his traveling charges , as well as he also not close his
business of the buying of goods for the business.

Chapter- 6

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 Area of internship

6.1 Accounts department

Account opening department
During my stay in this section, I learnt how to open a new account? How to give information to a
new client? What are the requirements that should be filled before opening an account and how
to issue Cheque books?
OPENING AN ACCOUNT
By opening an account at a bank a person becomes a customer of the bank.
Types of customers:
Individual account
Joint account
Minor account
Sole proprietor
Partnership account
Private limited company
Trust NGO’S
Requirements of account opening
The requirements of these accounts are as follows
Individual account: Only one person can operate this a/c. We can call it a personnel or individual
a/c. 
 Copy of computerized national identity card (CNIC) / national identity card for overseas
Pakistani (NICOP)/ Pakistan origin card (POC) / passport (foreign national).
 Occupation / Proof for source of income.
A) Salaried person: copy of service card or copy of recent pay slip (not older than
3 months) or copy of latest form-29 (if director of company).
B) Self employed/ business person: letter of sole proprietorship on letterhead or
NTN certificate of business or letter from partnership firm.
C) Housewives/ student/ retired: valid proof of source of income of husband/
parents/pension or son/ daughter ( as per salaried business person).

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 Special consideration
a) Illiterate customers
Two passport size photograph
b) CNIC contains no photograph
Any other document contains picture, such as driving license or passport. If not then
following additional documents are required.
I. A copy of the photograph duly attested by Gazetted officer/ Nazim.
II. Copy of CNIC without photo attested by the same person who attested the photo
mentioned above.
III. A confirmation in writing that the individual have no other document which
contains pictures.

Partnership:
 Letter of authority.
 Copies of Computerized national identity card (CNIC) of all partners.
 Account opening request on letterhead.
 Attested copy of partnership deed duly signed by all partners.
 Attested copy of registration certificate with registrar of the firms.

Proprietorship:
 Copy of Computerized national identity card (CNIC).
 Copy of national tax number (NTN) certificate.
 Account opening request & proprietorship letter on firm letterhead.

Limited company:
 Copy of certificate of incorporation.
 List of directors.
 Memorandum of article (MOA) & article of association (AOA).
 Board resolution.
 Certificate of commencement of business (for public limited company).
 Copies of Computerized national identity card (CNIC)’s of all directors &
signatories.

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  Latest copy of certified form 29 (issued by security exchange commission of
Pakistan (SECP)).

Club/Society/Association/Trust accounts:
 Copy of rules/ by laws.
 Copy of registration certificates.
 List of executive’s members / management committee / management board etc.
 Board resolution.
 Computerized national identity card (CNIC) of all members of management body.
 Undertaking to immediately inform the Bank in writing about all changes in
management committee / authorized persons.

Nonresident Pakistanis (NRP):

 National identity card for overseas Pakistani (NICOP) / computerized national
identity card (CNIC).
 Visa / passport copy.
 Job proof / business proof / salary certificate / slip.

Minor:
 Copy of birth certificate (issued by local authority) B.form.
 Computerized national identity card (CNIC) of guardian.
 Valid proof of source of income of guardian.

PROCEDURE OF OPENING THE ACCOUNT:

The procedure of opening the account is as follows;
Account Opening Form:
First of all, the customer fills the account opening form (AOF). Filling of account Opening form
includes type of account, currency of account, type of entity (individual, joint, sole
proprietorship, photo account). The form also includes purpose to open an account and title of
account. As for as applicant personal information is concerned it includes the personal
information (name of applicant, father’s name, mother’s name, marital status, nationality, date of
birth, gender, CNIC number, date of expiry of CNIC, residential address and e-mail address).

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Telephone number, occupation, source of income, name of employer/ business, address of
employer/ business and next of kin all these information of applicant is also required. Account
opening form is signed by the applicant. He also signs an undertaking that he will follow the
rules and regulations of the bank.
Introducer of Account:
The signature of introducer, relationship with applicant, and account number of the account
holder introducing the account to the new person is obtained on the account opening form.
Know Your Customer Form:
If applicant has an introducer he may be his relative, or any friend but the requirement is that he
must be having an account in bank so in that case no need of KYC. But in another case if he is
not having any introducer so that account holder fills this form the basic purpose of this form is
to get some information about the customer.
Specimen Signature (S.S.) Card:
The signature of the client is obtained on a specimen signature card (S.S. Card).
This card contains title of account, applicant account number, account type, branch code, and
currency of account and two signatures of an applicant. Every time a cheque is received for
payment from the client, the signature on the cheque is verified by comparing it with S.S Card.

Customer‘s undertaking on bank‘s prescribe format if:

1) Address differs on CNIC and AOF.
2) Signature differs on CNIC and AOF: The signature of the client is taken on a
signature difference form if his signature differs from the CNIC.

Completion of the Form:

After completed account opening form in all respect and checked by the bank officer and
properly signed by the customer which is verified by operation manager.
Computerized Checking:
After filling in the form, the officer connected via internet to the NADRA website checks the
record of his customer’s social life. If the record of the person is ok, then officer of the bank
authenticates the record under his signature and stamp.
Stamping On Account Opening Form:

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Then AOF is stamped. Stamps like sign verified, sign admitted stamp etc are affixed. And send
to Branch manager for authorization.
Account Number:
After completion of all formalities, final approval is taken from the branch manager for opening
of account and account number is allotted to the customer and all the information are recorded in
the computer. And that account number is written on SS card and AOF. Then Cheque book is
applied by officer on the same day. Account number is written on the cheque book requisition.
Depositing Amount in Account:
The client deposits cash in the account. For this purpose cash pay in slip is used. The minimum
initial deposit is fixed for each account according to the nature of account. For example for rupee
current and saving account the minimum requirement is Rs. 1000/-.
Letter of Thanks:
A letter of thanks is prepared. One letter is for the customer and one for the introducer and sends
it to the client at his postal address to pay gratitude to the customer and introducer. And one copy
of letter of thanks is kept in the record along with other documents.
Issuance of the Cheque Book:
After opening an account with the bank, the account holder can not immediately start operating
his /her account. The cheque book is issued, when a customer will submit letter of duly signed by
him, in case of new account. And for subsequent issuance of cheque book he/she has to make a
request once again in the name of bank for the issuance of cheque book. Such a request is known
as requisition slip. This process takes a day because the cheque books come from Karachi head
office. UBL charges for issuance cheque book Rs. 15/- per leaf for PLS Accounts and Rs. 12/-
per leaf for all other Accounts.
Entry of Cheque Book:
Before issuance of the cheque book, every leaf of cheque book enter in the cheque book register
and computer and issues the cheque book to the customer after his signature on the register
corresponding his name.
Closing of an Account:
The procedure of closing of account is as follows.
I. First of all, the customer gives the request to close the account.
II. His signatures are verified.

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 III. He withdraws all his money from his account.
IV. Permission is granted by the authorized person (the branch manager).
V. Account is closed in the computer system. And operation manager/ branch manager is
authorized the account closure in the system and attested his request by signing it.
VI. His specimen signature card is attached with the account opening form and marked
closed.

Dormant Account:
If there have been no transactions in your savings bank account for 1 years, except for profit
payments credited by your bank, the bank will classify your account as in operative or dormant.
You will not be able to use your ATM card, issue cheques or transact in the account without
reactivating it. The bank makes your account inactive to safeguard your money from any risk of
fraudulent transactions. You can reactivate your account anytime to be to operate it or close it.
For Activation of dormant account a copy of CNIC signed by the customer is required. A
checklist for activation of dormant account and application of dormant account activation signed
by the customer is required. Application of dormant account activation includes title of account,
account number, reason for not using the account and residential address. After this, officer
changes account status into active status. And manager operation is authorized it then account is
active again.
Locker Facility:
Locker facility is also available at all branches of UBL bank. As for as privacy is concerned,
lockers are located in a specially designed area protected with strong room doors and grills under
the control of two officers, operated by use of master key and customers key supplied to the
customer at the time of locker is rented out. Fee for small locker are Rs. 4000, for medium locker
Rs. 5500 and for large locker Rs. 7500 and for extra large lockers Rs. 12000 per annum.
For locker facility, a separate application form is filled which includes account number, key
number, locker number and locker type (small, medium, large) and signed by the applicant along
with signature specimen card, copy of CNIC and two passport size photograph of applicant is
attached with application form. After completing all formalities a locker is allocated to the
applicant and key is given to him with locker identification card.
Procedure of Stop Payment:

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For stopping the payment, we take sign of the customer on stop payment request which includes
account type (current, saving), account number, date, and cheque number. Stop payment
confirmation acknowledgement signed by the customer then we mark that cheque as stop
payment. And Branch Manager/ Operational Manager authorized it. The bank will not make
payments of these cheques. To stop payment UBL bank is charging Rs. 500/-.
Procedure of issuance of Bank Statement:
For issuance of bank statement a requisition slip is taken from the customer duly signed and the
period from which the customer wants to take the statement. After verification of signature Bank
Statement is issue to the customer and Rs. 25 are deducted from account of customer.

6.2 Clearing department

Meaning of clearing:
The word clearing has been derived from the word ‘clear’ and is defined as,
“A system by which banks exchange cheque and other negotiable instruments drawn on each
other within a specific area and thereby secure payment for their clients through the clearing
house at specified time in an efficient way”.
CLEARING actually means the transfer of funds from one bank to the other bank on which the
instrument is drawn, without involving cash through state banks clearing house.
Clearing House:
It is the place where cheques are presented, collected from bank branch. The function of clearing
house is performed through National Institutional Facilitation Technologies Pvt. (NIFT) in
Pakistan.
NIFT:
NIFT stands for “National Institutional Facilitation Technologies”. Clearing house of State
Bank of Pakistan (SBP) has shifted a tiresome part of its work to a private institution named
NIFT. NIFT collects cheques, demand draft, payment orders, Travelers cheques etc. from all the
branches of different banks within city through its carries and send them to the branches on
which these are drawn for clearing.
After the branches approve the instruments drawn on them, NIFT prepare a sheet for each branch
showing the number for instrument and amount in its favor and drawn on it and send it to each

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branch. A similar sheet for each bank is also sent to clearing house of SBP where accounts of
banks are settled in same manner.
Clearing:
Instruments which are drawn on the branches of the some other bank of the same city or of the
same area, which is covered by particular clearing house, are processed for clearing.
Inward clearing:
Inward clearing means the cheques received by the bank from other banks.
These - Inward clearing - cheques are the cheques drawn by the bank/branch customers on their
account in favor of other parties. On receipt of the inward clearing, the cheques are posted to the
various accounts on which they are drawn - meaning the accounts of the cheque issuer or drawer
with the bank is debited to the account and the payment is made to the bank presenting the
cheque.
Outward clearing:
Outward clearing means the cheques sent for collection. When a particular branch receives
instruments drawn on the other bank within the clearing zone and sends those instruments for
collection through the clearing arrangement is considered as outward clearing for that particular
branch. This branch is known as collecting branch.
The instruments are collected from the client. Following things are checked.
 Cheque date (a cheque is valid for six months and it should not be post dated).
 Title
 Amount in figures and words should be same.
 There should be no cutting and overwriting on the cheque.
 Instrument should not bear any unauthorized alteration.

Stamping procedure:
In stamping procedure, the pay-in-slip counter foil the following stamps are used. If the cheques
are received from other bank and drawer’s account is not in the bank then cheque received stamp
is used. This cheque is represented in the clearing house; date is also mentioned on the stamp.
After receiving the cheques and issuance of the pay-in-slip counter foil to the client, stamping
process starts on the cheques, the following stamps are used. The name and branch name of the
bank stamp is used on the front side of the cheques. This stamp is used on all type of cheques.
This stamp is known as crossing stamp.

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The second stamp used is the clearing stamp on the back side of the cheques. It also indicates the
presenting date of the cheques. If the cheque is dishonored and deposited again for clearing, all
previous stamps are cancelled and clearing stamp is used again with the new date of presenting.
So the clearing stamp is necessary whenever the cheques are presented for clearing.
The third necessary stamp which is the endorsement indicates the paying bank to “payee’s
account will be credited”. It is the confirmation of outward clearing.
The whole clearing process requires about 2 days, after 2 days the customer’s account is credited
and customer can make the transactions.
Different reasons of returning a cheque:
In inward clearing sometimes cheques are not passed due to some reasons then cheques are sent
back to NIFT along with cheque return memo. Some of these reasons are:
 Cheque incomplete
 Clearing stamp required
 Post dated cheque
 Drawer’s sign incomplete/differ
 Insufficient funds
 Amount in figures and words differ

Chapter-7 Work done during Internship

7.1. 1st week

FILLING OF VOUCHERS

Another duty that was assigned to me was filling of vouchers.

TYPE OF VOUCHERS
I used to fill two types of vouchers
For cash

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For cheque.
PROCEDURE

FOR CASH
In these vouchers following information is filled:

Account number
Name of the account holder
Amount of money being deposited.

FOR CHEQUES
For check the procedure is same only the following information differs:
Cheques number
Name of other bank and location.

7.2. 2nd & 3rd week

Afterwards I have learnt about vouchers, checking of vouchers is essential to confirm that
correct calculation has been done. Vouchers are properly bind sealed, and checking by the
manager. I have checked the following things:
The check should not be post-dated/anti-dated.

Amount in words and figures tallies.

Cash paid stamps (with dates) are duly affixed in case of cash cheques and in case of clearing
stamps is affixed.

Cutting/over writings are duly authenticated by the account holder, etc.

7.3 4rth & 5th week

ACCOUNT OPENING & DORNMENT

During the first week of my internship program, I got a chance to work in the account- opening
department, which is one of the basic and major operations of the bank. Mr. Shakeel Ahmad
helped me a lot and guided me about procedure & precautions in account opening. First, I’d
describe the various types of accounts and then the procedure of account opening.

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Major Customers of UBL

Some of the major customers of UBL are:

Educational Institutes
Agriculturists
Pakistan Telecommunication Private Limited
WAPDA
Pharmaceutical Companies
WASA
MDA
Account opening procedure:
Whenever a person has to use the services of a bank, he / she have to open an account with any
of the banks available at region. A bank normally entertains two kinds of account holders. First,
those who are walk-ins and secondly the one who are being marketed by the bank's marketing
departments. Whatsoever, all have to follow the same procedures for opening an account.
Account opening procedures are being discussed step-vise below in detail:
1. Account opening form:
When the Customer approaches to bank for account opening purpose, an Account Opening Form
is provided to him. He / she have to fill in the form the required data and information being asked
in different sections of the form. Also the form has to be signed by the customer at various
sections marked by the concerned Banking Officer. Incase if the customer is illiterate or is not
able to read / understand English, the banking officer facilitates him / her in this matter too.
Besides these photocopies of certain other requirements have to be attached with the form while
submitting it back to the banking officer.
2. Completion & Submission of account opening form:
After being completely filled and duly arranged the requisites for opening an account, the
customer has to submit the account opening form to the concerned banking officer at the branch
he has obtained form from. The banking officer duly checks and verifies all the information
filled by the customer in the form.
3. Signature Specimen card:
Signature specimen card is compulsory for opening an account in the bank. Without getting
signature of customer you cannot open the account. This card holds the authorized signatures of

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all the account holders of that particular account. This card is then being signed and verified by
the concerned manager. After completion and authentication of the card, it is being uploaded on
the database. In this way any authorized banking officer is able to verify any customer's
signatures whenever his signed instrument is introduced in the bank. Thus, to ensure more
customer privacy and security.
4. Customer visit report / Know your customer /
Enhanced due Diligence form:
This is the most essential and delicate report that has to be maintained by either the manager or
the designated officer about each and every customer who is opening an account with the bank.
The officer will have to visit the business or office address of the customer that he / she have
mentioned in the Account Opening Form. Officer will be completing a few formalities in order
to verify that nothing in being wrongly stated by the client in the form and all that he / she have
stated are being verifiable and true. This form has to be signed and completed by the banking
officer, and then it has to be sent to the concerned Regional Head / Chief / Manager for final
approval and remarks.
5. Computerized Verification:
The customer's identity and all criminal / defaulter record is being verified through online
verification system. An online database is being provided by NADRA to the bank to verify each
customer's identification online. The concerned banking officer performs this job. Also the
officer finds and ensures that the customer is not wanted by the Govt. in any case through
NAB/OFAC verification system available with the concerned officer.
6. Verification and authorization:
After all the formalities are being completed, and receiving of the authorization from the Head /
Chief / Manager, all the documents / forms / verifications are being organized and stapled in
sequence with the Account Opening Form for final review and authorization from the Branch
Manager & Manager Operations. In case of any shortage or incompletion of any record, the form
is directed to the concerned officer for completion.
7. Opening the account:
After successful completion, verification, review and authorization, finally the customer qualifies
to open an account in the bank. The concerned officer uploads the data into electronic form

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available to him / her in the Bank's Operating System. The officer uploads all the data mentioned
in the Account Opening Form to the system.
8. Allotment of account number:
After being uploaded and final supervision by the Operation Manager, the system authenticates
and allots an account number to the customer against his account opening request. Now he / she
can operate the account.
9. Issuance of letter of thanks:
After the account is being opened, a letter of thanks is being issued to the customer for showing
his interest in requiring our banking services. One copy of this letter is being attached with the
Account Opening Form, while the other is dispatched by postage mail to the customer.
Another purpose of this letter is that it has to be produced in front of the Banking Officer at the
time of receiving Cheque Book from branch.
10. Issuance of cheque book:
The "Cheque Book" request is uploaded to the system online the very next day of opening of an
account. Cheque Book is issued to the customer from the branch itself. It is not being dispatched
to the customer. Normally it takes 4-7 working days for the issuance of cheque book to the
customer.
11. Issuance of ATM Card / PIN Code:
If a customer requires ATM service, either he has to mark the option in the Account Opening
Form while submission of it, otherwise an additional form is to be filled out by the customer for
acquisition of the ATM card. It is then uploaded to the online database by the concerned banking
Officer. Normally it takes 7-10 working days for the receipt of both ATM card and PIN code.
PIN code is directly dispatched from ATM generation cell to the customer's postal address.
While ATM is sent to the branch and handed over to the concerned banking officer. He / She are
responsible for the handing and possession of the card unless the customer walks-in and receives
the card him / her.

Clearing department
Meaning of clearing:
The word clearing has been derived from the word ‘clear’ and is defined as,

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“A system by which banks exchange cheque and other negotiable instruments drawn on each
other within a specific area and thereby secure payment for their clients through the clearing
house at specified time in an efficient way”.
Clearing House:
It is the place where cheques are presented, collected from bank branch. The function of
clearing house is performed through National Institutional Facilitation Technologies Pvt.
(NIFT) in Pakistan.
Clearing process:
Payments between Banks.
Types of Cheque:
Open Cheque:
They are payable in cash at the counter of a bank in accordance with the policy of the bank.
Crossed Cheque:
They are not payable at cash counters, but can be collected only the banker who would credit the
proceeds to his customer’s account after realization.
Types of Crossing:
 Two parallel transverse lines.
 Where a cheque bears across its face an addition of the word Ltd & Co.
 Not negotiable with two parallel lines. Lines remove negotiable of cheque.
 Collection by a banker when crossing is applied.

Special Crossing:
 In special crossing the name of the bank is added.
 It may be hand written, perforated stamped.

N.I.F.T:
 National Institutional Facilitations Technologies ( Pvt ) Ltd.
 Established in 1995, by the banking giants of Pakistan i.e HBL, NBP, ABL, and MCB.
 Facilitates the clearing of cheque between institutions locally.

Types of Clearing:

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  Normal clearing
 Same Day Clearing
 Inter City Clearing
 US Dollar Clearing

Cheque Return Reasons:

 Funds Insufficient
 Payment stopped by drawer
 Cheque is post/stale dated
 Drawer’s signature differs
 Clearing stamp required
 Payee’s endorsement required
 Alteration in date requires drawer’s full signature etc

7.4. 6th week

Bank Statement, Printing, Photocopying and Utility Bills Collection

Bank statements show the transactions of a certain period of time. UBL charges
Rs. 35 for one bank statement. For bank statement, the account holder’s CNIC
is required for confirmation.
We can search the account by account number, CNIC number as well as account
name. Account number search is more preferable.
After getting the account number, we have to enter the period for which we
want the bank statement. Normally, 6 months Bank statement is given to account
holders.
Next, we learnt photocopying of CNIC and other documents through photocopy
machine. Also we did printing from computer
One of the basic economic functions of commercial banks is to receive deposits
and to honor cheques drawn upon them. So, cheque is a most commonly used
instrument for making payments by account holders. Along with the cheques,
there are some other negotiable instruments like PO etc. that are used for
making payments and are drawn upon a bank.

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UTILITY BILLS COLLECTION
Here, I worked under the guidance of Mr. Ghulam Abbas and collected utility
bills include the bills issued by the GEPCO, WASA, BOP, and SNGPL and post
them into the system and also prepare of billing scrolls. These bills received
by bank during working hours from general public. This branch is very busy in
this regard.

8. UBL HR Polices & Procedures:

United Bank Limited Follow Business Level Competitve strategy(Competitve strategy identifies
how to build and strength the business's long term competitive advantage position in the market)
because of vast number of its Competitve in the market place.UBL analyze it's strength with
weakness and opportunities with maintain it's comparative advantage l.Thevcompetitive
advantage of UBL is based on Differentiation.It provides different online and offline services to
win it's coustomer and predically analyze the competitive marketplace to enhance it's services to
high level.

Generating Required human resource Polices of UBl is the they attract the current employees by
offering the Promotion,Cash award,Increments,Bounses and stock option so keep up and
generate external candidate by offering good salary packages,career oriented
jobs,Accomodations etc.

The organizational desgine of UBL is Horizontal(which has low hierarchical level).There are
different Groups containing 10 to 12 people which are assigned different tasks to work on each
group has its own supervised who supervise all employees in its group.

UBL invest in HR Development and performance by promoting or giving rewards to those

employees whose performance is better.The performance appraisal of each employee is
conducted annually in UBL.

Recruitment of staff
Recruiting is the discovery of potential skill of the employees to fulfill organizational needs or

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we can say that it is linking activities of bring together employees with skills to fill the vacancies.
The recruitment procedure has following steps.

Short-Listing of the application

In this step, thousand of the candidates apply for limited posts available. The calls and send by
the head office to only those candidates who fulfill the requirement of job advertised.

Tests
NBP under the super vision of institute of bankers in Pakistan conduct test. After the
Test the applicants are further short- listed.

Interviews
For the interview only those candidates are called who qualify the written test.Different types of
questions are asked from candidates by the interviewing board interview questions include,
A) Question about personal background, extracurricular activities during education
and personal contacts.
B) About the rule of banking in current situation of economy.
C) Role of foreign enterprise in public economy etc.

Morale of the employees:

Morale of some employees is very high. Some of employees are not much dedicated as
others. Most of the employees are committed to their jobs and they look very involved in their
work. Overall the staff of branch is very motivated and they wanted to excel in their respective
fields.

Physical facilities:
Overall physical facilities in the branch are very good.
 All the general banking operations are done through manually supported computer system.
 High speed branded computer are provided to the employees so that they can perform
their duties quickly.

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 Air conditioners are installed to provide comfort to employees and their client of UBL.
 The branch is decorated with comfortable furniture. Good looking and durable
furniture is provided.
 Cash officer’s cabin is well guarded to avoid any undesirable event.
 Fax machine and laser printer are also provided.
 It is online branch so internet connectivity is provided with throughout the working
hours.

Performance:
The performance of the branch has improved to a great extent; this is can be by the number of
deposits and degree of the satisfaction of customers.

Performance in the term of customers satisfaction:

The customers are much satisfied as I observed during my internship; there is a good
relationship between employee and clients. The staff of branch is very quick to respond the
queries of customers.

Performance in the term of number of deposits:

The performance of branch can be measured from number of deposits. Currently the
performance of branch is very good. The number of deposits is increasing. The average
numbers of new account opened in a day are 5 to 6. This shows very good performance of the
branch.

8.2. HR Measuring Method:

United Bank Limited uses Scorecard Approach to measure the effectiveness and efficiency of
HR department.UBL follow the seven steps to masure the proformance in HR department
1- First UBL define business strategy(Discussed above)
2-.Second outs outline the company's value chain activates (activity which creates value for
coustomers and related supporting Activities).
3-Then it's outline what organizational outcomes (goal and targets) he bank has to achieve.

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4-Then it evaluatee the workforce required to achieve the goals.
5- After the UBL devise it's HR Polices and procedures and practices(what new training is
required?)
6- Then it desgine the HR scorecard
7- predically evaluates the measuring system.

9. UBL Marketing Polices & Procedures:

Structure of the Sales Department:

a. Department hierarchy
b. Number of employees working in the sales department
c. Sales operations
9.2. Function of sales department:
a. Sales methodology
b. Type of selling like person selling, door to door selling etc.
c. Sales returns procedures
9.3. Customer services department:
a. Process of developing relations with customers
b. Techniques of retaining the customers
c. Techniques of attracting new customers
d. Ways of handling different kinds of customers like furious customers, problem
creating customers etc.

Target Marketing Strategy:

The concept of marketing is very important in the business
literature. Marketing strategy is a combination of a number of marketing elements according to a
market situation. If a business enterprise rationally blends the elements of marketing into a
program of mix, then it competes, stays and earns profit in the market. In case, the integration of

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the various elements of marketing is defective, the firm cannot fight out its rivals in the market
and ultimately suffers losses.
Marketing strategy is defined as
“The set of controllable tactical marketing tools that the firm blends to produce in response
to wants in the target market.”
The various elements of marketing strategy are as follows;

Products
Promotion
Price
Place
Marketers use numerous tools to elicit desired responses from their target market. These tools
constitute a market mix.
“Marketing mix is a set of marketing tools that the firms use to pursue its marketing objectives
in the target market.”

Four P’s Four C’s

Product Customer needs and wants

Price Cost to the customers

Place Convenience

Promotion Communication
Now let us discuss the marketing mix of Bank of the Punjab While successfully penetrating
the key domestic markets through strategic expansion and business diversification, we remain
alive to the challenges emanating from the developments in the global financial markets; the
opportunities and threats engendered by greater deregulation, and increased customer
expectations. These provide us the impetus to make the best use of available resources, including
modern technology, to meet the challenges ahead.

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 Historically, UBLs core marketing focus for its asset base has been the middle and upper
middle business houses (including wholesales and manufacturers) operating in the large urban
centers of Pakistan, which are primarily oriented towards foreign trade. This segment contributes
significant revenues to the Bank. The liability side remains focused on the middle and upper
middle class, retired and serving government and armed forces personnel, and mid size business
houses.

Benefiting from the bank’s growing balance sheet size, this division is now gaining
momentum and our long term aim is to develop it into an independent strategic business unit
(SBU). This would enable the bank to acquire, develop and retain specialized abilities, and
enhance our focus on serving the emerging needs of the corporate clients.

Agriculture financing
The bank provides adequate and timely financial assistance to the farmers to improve
production potential of agriculture sector. Insurance of leased assets, animals, crops and life
assurance of borrowers are all source of money for the bank.

E-Banking
The bank has a centralized database that is web-enabled. All the services that the bank has
permitted on the internet are displayed in menu. Any service can be selected and further
interaction is dictated by the nature of service.

Utility bills
The bank also makes possible the payment of electricity, gas and telephone bills for its
customers charging some commission on each payment.

Lockers
Commission charged on lockers provided by bank for customers, is also a source of
inflow for the bank.

Consumer financing
Personal Finance, mortgage finance, business finance, smart cash, auto financing and
travelers’ cheques are all sources of funds for the bank. The bank finances all these loans and
facilities on competitive markup rates.

Agriculture financing
The bank provides adequate and timely financial assistance to the farmers to improve
production potential of agriculture sector. Insurance of leased assets, animals, crops and life
assurance of borrowers are all source of money.

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Market Positioning stratiges
We place UBL in the first quadrant because UBL has strong competitive position in the market
which is evident by its profit of Rs. 15.5 bn which is highest in Pakistani commercial banking
industry.Also we believe that due to strong nature of adaptation and with the help of educated
top management UBL has rapid Market growth.
In Quadrant I Following Strategies lie and are being suggested to be adopted by UBL

Market development
Market penetration
Product development
Forward integration
Backward integration
Horizontal integration
Concentric diversification

Marketing Mix (7Ps) Strategy of UBL.

Marketing Mix refers the set of actions, or tactics, that a company uses to promote its
brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product,
Promotion and Place. However, nowadays, the marketing mix increasingly includes several other
Ps like Packaging, Positioning, People and even Politics as vital mix elements.
Marketing Mix Strategy for UBL briefly describe in following.

Product
UBL offers many product in terms of Loans,Deposits other services for coustomer that
are discussed in detail in above part of report I will shortly explain in following.
SMEs product and services.
Consumer loans
Card product

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 deposit product
Proroity banking
Retail Asset Products
Corporate bankin
UBL Ameen
UBL Go-Green
UBL Net Banking

Price
Price is one of the ways marketers communicate with customers. Price is seen as revenue
oriented been the only marketing mix element that produces revenue. Winkler (1995:439)
defined price “as the amount of money which is sacrificed to obtain something”. Varki &
Colgate (2001) studied customer perceptions of value (Price) in the banking industry in the
pakistan.. The authors’ result showed that value (price) perceptions directly influence customer
satisfaction.UBL Exoerts(2006) suggest that bank customer satisfaction is influenced by factors
such as the price of services, or the number and severity of negative critical incidents. A study by
the Institute of Bankers Paksitan(1996) revealed that bank charges and interest rates determined
the overall satisfaction level of customers. However, Nasser, Jamal & Al-Khatib (2005) suggest
value (price) is perceived to have a small impact on bank customer satisfaction, but should not be
neglected since value plays a role in enhancing the level of customer satisfaction in retail
banking. Therefore, the relationship between price and customer satisfaction has been
established.
The following hyperlink is created for the file that contains the detail about charges sechduale for
the different services provided by UBL to its coustomer.

https://sg.docworkspace.com/d/sILHr4flD9NONhQY

Place:
Place which is also called distribution, is consider to cover distributional activities of
organisations. Kotler (1976) indicates that distribution involves the distribution channel,
distribution coverage, outlet locations, inventory levels and location. UBL bank in Pakistan

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distribution involves the internet banking, telephone banking, human teller, ATM and so
on.Related studies have shown that elements of distribution like internet banking, Automated
Teller Machines, bank branches, etc. influence customer satisfaction .In the banking sector, UBL
(2013), investigated customer satisfaction with internet banking service quality in the Retail
banking industry. They found that customers of UBL bank are more satisfied with internet
banking service quality than those of UBL. investigated customer satisfaction with ATM
banking in big cities of country The empirical findings indicated coustomer satisfaction with
ATM. (2009), conducted research on services quality and customer loyalty in punjab and
islambad. The study revealed in what seemed a departure from the studies above that human
aspects of service quality were found to influence customer satisfaction more than the technical
and tangible aspect. It will therefore not be out of place for management to harmonise the
elements of place (distribution) to offer good satisfaction to customer. Management should
simplify the electronic aspect of distribution and embark on high orientation for
customers.Mohammad (2012), conducted research on impact of marketing mix elements on
tourist satisfaction on Northern Area's Similarly, (1988), conducted research on customer
satisfaction with distribution for durable goods, the result concludes that customers are satisfied
with overall distribution. Therefore, the relationship between place and customer satisfaction has
been establish.

The place refers the branches network in contact of banking sector.UBl contains the network of
1400 branches in all over the country. That provides tremindus services to their coustomer

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Promotion:

Promotional techniques used by UBl:

Along with having a great website design, and implementing a local SEO strategy to help grow
website traffic, below are seven additional marketing ideas for UBL.

1. Email Newsletters
The use of newsletters for email marketing has become a staple of businesses around the world.
Why? Because it’s effective and doesn’t cost anything, with the exception of the time, it takes to
develop and send the email. With the right software, you can produce a series of newsletters that
are sent automatically based on the needs of members. The best part is that you can send email

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content that’s targeted and customized. There are a variety of email newsletter templates that can
be found online to get you started.

2. Educational Seminars
The use of educational seminars for the purpose of marketing should be stable in the marketing
strategy of UBL.It’s because most members join exclusively for the purpose of learning what
they don’t know in an effort to stay in compliance with regulations and learn ways to grow their
business. In fact, educational seminars should be held on a weekly basis so that members know
they can always gain value from their Chamber of Commerce membership. This includes
educational opportunities in accounting, leadership, human resources, business licensing, and
many other topics.

3. Social Media Engagement

Increasing engagement on social media is important because building a strong online community
can attract more members. Through social media engagement, you can provide information
that’s useful and drives potential coustomers.Social media engagement isn’t just about the
number of followers you can get or the number of likes you can curate; it’s about how many
people are truly engaged through comments and other communications. This means you’ll have
to post on your chosen social media platforms with some level of frequency.

4. Webinars
Given the busy schedules of most professionals, a webinar is often a preferred way to receive
training. Hosting a webinar to promote the services provided by the Chamber of Commerce is a
great way to get the attention of potential Coutomers.You are essentially providing them with an
example of what they can gain by becoming a member.

5. Blog Articles
Blogging is one of the best ways to promote any business. When doing so for UBL it’s
important to write articles that are relevant and useful, such as search engine optimization (SEO)
and other marketing requirements. You can keep readers coming back to the website with tips on
how to achieve success in business.

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6. Networking Events
It almost goes without saying that frequent networking events should be held to attract new
members to the UBL. Whether it’s an event that’s held in person or virtually, members should be
able to connect with other professionals because it adds value to their business.

7. Member Business Card Drawing

Everyone enjoys winning something for free. A great Chamber of Commerce marketing tool has
a business card drawing for a service or product that’s highly beneficial. For instance, you can
give away free consulting services on a topic of interest.

When you provide members what they need, you’re more likely to keep their attention. The tips
provided are win-win solutions for both the Chamber of Commerce and its members.

People
People, refers to those involved in service delivery. Their level of training, interpersonal
behaviour, discretion in rendering the service and appearance matters a lot in customer
satisfaction in UBL Bank.. UBL (2004) opines that customer orientation of service employees is
a key driver of customer satisfaction. The interaction of employees and customers create good
customer satisfaction. Customers rely on bank employees for advice, complaint and direction
towards some of the banks’ products and channel of distribution. Interaction quality is an
important factor when customers evaluate service quality. A study (1999),found out that, the
interactions driving the service producers have important effect on customer perceptions of
service quality. Siddiqi (2011), in a research on interrelations between service quality, attributes,
customer satisfaction and customer loyalty in retail banking sector in Paksitan found that
empathy (interaction between employees and customers) has a large positive correlation with
customer satisfaction.Similarly, in an assessment of the psychometric properties of SERVQUAL
in the UBL, found that empathy is the strongest predictor of customer satisfaction. Mohammad
et(2012), in a research, which investigated the impact of marketing mix elements on tourist

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satisfaction on Muree, found evidence of significant relationship between people and customer
satisfaction.

Process
Process shows procedure of rendering services. Harrington & Weaven (2009), explored the
factors affecting customer satisfaction for e-retail banking of UBL. Factor analysis and
regression analysis were used to ascertain factor structure for customer satisfaction. The study
found that four factors solution, represented by personal needs of the customer, website
organisation, user friendliness of the websites and efficiency were rated as high. Similarly Al-
Eisa & Alhemoud (2009) identify the most salient attributes that influence customersatisfaction
with retail banks in pakistan and to determine the level of the overall satisfaction of the
customers of the UBL.They found fast service and availability of self-banking services among
the crucial attributes.
(2008) found the major factor affecting customer satisfaction in Spanish e-banking services was
website usability. Jamal & Naser (2002) found service quality provided by the banks as an
important determinant of customer satisfaction. Banks should create a good service process to
maintain satisfied customers and attract potential customers. Therefore, the relationship between
process and customer satisfaction has been established.

Physical Evidence
This deals with environment where business operates, for example, parking area, furnishings,
color, noise level, air conditioning system etc. UBL (1996), maintains that service environment
increase customer satisfaction and that within service environment customers can be exposed to
numerous stimuli which potentially affect how they act, buy and the level of satisfaction they
derive with service experience.Analysis (1992), indicated that the service environment has a
significant impact on customer perception of overall service quality. Study (1990), pointed out
that customers make inferences about the service quality on the basis of tangibles (the buildings,
the physical layout, etc.) that surround the service environment. Support for this argument comes
from empirical evidence suggesting that the tangible and physical surroundings of the service
environment can have a significant impact on customers’ affective responses and their
behavioural intention .UBL Bank (1988), in their study, showed that physical environment has a

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significant impact on perceived service quality. analysed New customer satisfactioe or what is
called “tangibles” in Service Quality.

Chapter- 8
Financial Analysis

Statement of Financial Position of United Bank Limited

As at December 31, 2020

2019 2020
(Rupees in ‘000)
Assets
Cash and balances with treasury banks 235,861,767 250,838,052
Balances with other banks 20,729,005 13,888,765
Lending’s to financial institutions 20,183,118 19,959,132
Investments 840,322,652 1,128,674,494
Advances 635,834,217 530,279,496
Fixed assets 52,396,877 51,207,703
Intangible assets 1,951,002 1,829,211
Deferred tax assets 3,300,164 6,399,267
Other assets 82,196,560 46,507,193
Total assets 1,892,775,362 2,049,583,313

Liabilities
Bills payable 22,926,596 29,733,813
Borrowings 154,484,000 128,987,415
Deposits and other accounts 1,467,063,461 1,640,211,901
Liabilities against assets subject to finance lease - -
Subordinated debt 10,000,000 10,000,000
Deferred tax liabilities - -
Other liabilities 69,232,422 56,577,277
Total liabilities 1,723,706,479 1,865,510,406
Net Assets 169,068,883 184,072,907
Represented by:
Share capital 12,241,797 12,241,797
Reserves 59,319,612 62,274,068
Inappropriated profit 71,670,331 81,916,463
Total 143,231,740 156,432,328
Surplus on revaluation of assets 25,837,143 27,640,579
Total equity 169,068,883 184,072,907
Total liabilities & equity 1,892,775,362 2,049,583,313

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 Profit & Loss Account
For the year ended December 31, 2020

2019 2020
(Rupees in ‘000)
Mark-up / return / interest earned 153,676,364 152,003,210
Mark-up / return / interest expensed 91,901,868 77,044,038
Net mark-up / interest income 61,774,496 74,959,172
Non mark-up / interest income
Fee and commission income 13,786,525 11,097,472
Dividend income 1,538,378 1,269,537
Foreign exchange income 4,526,109 3,684,585
(Loss) / income from derivatives 64,627 (13,076)
Gain on securities – net 2,199 411,440
Other income 1,758,493 644,381
Total non mark-up / interest income 21,676,331 17,094,339
Total income 83,450,827 92,053,511
Non mark-up / interest expenses
Operating expenses 40,208,862 40,060,602
Workers Welfare Fund 740,249 864,956
Other charges 40,055 167,335
Total non mark-up / interest expenses 40,989,166 41,092,893
Profit before provisions 42,461,661 50,960,618
Provisions and write-offs – net 8,219,792 16,768,148
Profit before taxation 34,241,869 34,192,470
Taxation 15,108,095 13,293,687
Profit after taxation 19,133,774 20,898,783
Earnings per share - basic and diluted 15.63 17.07

8.1 Horizontal Analysis of Balance Sheet

2019* 2020
Assets
Cash and balances with treasury banks 100% 106.34%
Balances with other banks 100% 67.00%
Lending’s to financial institutions 100% 98.89%
Investments 100% 134.31%
Advances 100% 83.39%
Fixed assets 100% 97.73%
Intangible assets 100% 93.75%
Deferred tax assets 100% 193.91%

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 Other assets 100% 56.58%
Total assets 100% 108.28%
Liabilities
Bills payable 100% 129.69%
Borrowings 100% 83.49%
Deposits and other accounts 100% 111.80%
Liabilities against assets subject to finance lease - -
Subordinated debt 100% 100%
Deferred tax liabilities - -
Other liabilities 100% 81.72%
Total liabilities 100% 108.22%
Net Assets 100% 108.87%
Represented By:
Share capital 100% 100%
Reserves 100% 104.98%
Unappropriated profit 100% 114.29%
Total 100% 109.21%
Surplus on revaluation of assets 100% 106.98%
Total equity 100% 108.87%
Total liabilities & equity 100% 108.28%

Interpretation:
The horizontal analysis of assets shows that cash balances in treasury banks tends to increase in
2020. But other parameters of the assets tend to decrease like balances with other banks are 33%
in negative in 2020. This is not better sign for the company. Their lending’s to financial
institutions decrease in 2020. That shows a outflow amount decrease. Investment increase in
2020 almost 34%. Fixed assets decrease in 2020. If we see towards liabilities we observe that the
bills payable increase by 29% in 2020. Borrowings decrease in 2020 at rate 17%.

Horizontal Analysis of Profit and Loss Account 2019* 2020

Mark-up / return / interest earned 100% 98.91%

Mark-up / return / interest expensed 100% 83.83%
Net mark-up / interest income 100% 121.34%
Non mark-up / Interest income
Fee and commission income 100% 80.49%
Dividend income 100% 82.52%
Foreign exchange income 100% 81.40%
(Loss) / income from derivatives 100% -20.23%
Gain on securities – net 100% 187.10%
Other income 100% 36.64%

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 Total non mark- up / interest income 100% 78.86%
Total income 100% 110.30%
Non mark-up / interest expenses
Operating expenses 100% 99.63%
Workers Welfare Fund 100% 116.84%
Other charges 100% 417.76%
Total non mark-up / interest expenses 100% 100.25%
Profit before provisions 100% 120.14%
Provisions and write-offs – net 100% 203.99%
Profit before taxation 100% 99.85%
Taxation 100% 87.99%
Profit after taxation 100% 109.22%

Interpretation:
Markup/interest earned decrease at the rate of 2% in 2020 and also the markup interest expense
also decrease to rate of 17% in 2020. Fee, commission income decrease in 2020. Dividend
income decreases in 2020. Income from dealing in foreign currencies decreases by almost 19%
in 2020. Gain on securities increase in 2020 very much.

8.2 Vertical Analysis of Financial Statement

2019 2020

Assets
Cash and balances with treasury banks 12.46% 12.23%
Balances with other banks 1.09% 0.67%
Lending to financial institutions 1.06% 0.97%
Investments 44.39% 55.06%
Advances 33.59% 25.87%
Fixed assets 2.76% 2.49%
Intangible assets 0.10% 0.08%
Deferred tax assets 0.17% 0.31%
Other assets 4.34% 2.26%
Total Assets 100% 100%
Liabilities
Bills payable 1.21% 1.45%
Borrowing 8.16% 6.29%
Deposits and other accounts 77.50% 80.02%
Liabilities against assets subject to finance lease - -
Subordinated debt 0.52% 0.48%
Deferred tax liabilities - -

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 Other liabilities 3.65% 2.76%
Total liabilities 91.06% 91.01%
Net Asset 8.93% 8.98%
Represented By:
Share capital 0.64% 0.59%
Reserves 3.13% 3.03%
Unappropriated profit 3.78% 3.99%
Total 7.56% 7.63%
Surplus on revaluation of assets 1.36% 1.34%
Total equity 8.93% 73.75%
Total liabilities & equity 100% 100%

Interpretation:
Vertical analysis shoes that Cash & Balances with treasury Banks increases in 2019 and
decreases in 2020. Net assets are increases that lower the amount but the currents assets increase
is more. Balances with other banks decreases in 2020. Lending to financial institutions decreases
in 2020. Investments are increased and fixed assets decreased and the advances decreases in
2020.

Vertical Analysis of Profit & Loss Account

2019 2020

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

Mark-up / return / interest expensed 59.80% 50.68%
Net mark-up / interest income 40.19% 49.31%
Non mark-up / interest income
Fee and commission income 8.97% 7.30%
Dividend income 1.00% 0.83%
Foreign exchange income 2.94% 2.42%
(Loss) / income from derivatives 0.04% -0.008%
Gain on securities – net 0.001% 0.27%
Other income 1.14% 0.42%
Total non mark-up / interest income 14.10% 11.24%
Total income 54.30% 60.56%
Non mark-up / interest expenses
Operating expenses 26.16% 26.35%
Workers Welfare Fund 0.48% 0.56%
Other charges 0.02% 0.11%
Total non mark-up / interest expenses 26.67% 27.03%
Profit before provisions 27.63% 33.52%
Provisions and write-offs – net 5.34% 11.03%
Profit before taxation 22.28% 22.49%

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 Taxation 9.83% 8.74%
Profit after taxation 12.45% 13.74%

Interpretation:
Mark-up interest expense decrease to rate of 9% in 2020. Fee, commission income decrease in
2020. Dividend income decreases in 2020. Income from dealing in foreign currencies decreases
in 2020. Gain on securities increase in 2020. Operating expenses are increased in 2020.
Provisions are increased in 2020 at rate of 5%.

8.3 Ratio Analysis

8.3.1 Ratio Analysis for Financial Sector
8.3.1.1 Capital Adequacy Ratios

CAR = Tier 1 Capital + Tier 2 Capital x 100

Risk Weighted Assets

Year 2019 Year 2020

=124682588+33900041/837193007*100 =136794830+45102462/744566093*100

= 18.94% = 24.42%

Capital Ratio= Total Equity x 100

Total Assets

Year 2019 Year 2020

=169068883/1892775362*100 =184072907/2049583313*100
=8.93% =8.98%

8.3.1.2 Asset Quality Ratios

Non Performing Loans / Advances
Non Performing Loans to Total Loans = x 100
Total Loans / Advances

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 Year 2019 Year 2020
=76985726/702951491*100 = 83623743/609307008*100
= 10.95% = 13.72%

Loan Loss Provision

Loan Loss Provision to Total Loans = x 100
Total Loans / Advances

Year 2019 Year 2020

=8219792/702951491*100 = 16768148/609307008*100
= 1.16% = 2.75%
Non Performing Loans / Advances
Non Performing Loans to Total Assets = x 100
Total Assets

Year 2019 Year 2020

= 76985726/1892775362*100 = 83623743/2049583313*100
= 4.06% = 4.08%

Non Performing Loans / Advances

Non Performing Loans to Total Equity = x 100
Total Equity

Year 2019 Year 2020

= 76985726/169068883*100 = 83623743/184072907*100
= 45.53% = 45.42%

8.3.1.3 Management Efficiency Ratios

Total Operating Expenses
Efficiency Ratio = x 100
Total Income
Year 2019 Year 2020

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 = 40208862/83450827*100 = 40060602/92053511*100
= 48.18% = 43.51%

Non Markup Income

Non Markup Income to Total Assets = x 100
Total Assets

Year 2019 Year 2020

= 21676331/1892775362*100 = 17094339/2049583313*100
= 1.14% = 0.83%

Total Loan / Advances

Loans/ Advances to Deposit Ratio = x 100
Total Deposits
Year 2019 Year 2020
= 702951491/1467063461*100 = 609307008/1640211901*100
= 47.91% = 37.14%

Net Markup / Interest Income

Net Markup / Interest Income to Total Asset Ratio = x 100
Total Assets

Year 2019 Year 2020

= 61774496/1892775362*100 = 74959172/2049583313*100
= 3.26% = 3.65%

Total Loans / Advances

Total Loans / Advances to Total Assets Ratio = x 100
Total Assets

Year 2019 Year 2020

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 = 702951491/1892775362*100 = 609307008/2049583313*100
= 37.13% = 29.72%

Total Deposits
Total Deposit to Total Asset Ratio = x 100
Total Assets

Year 2019 Year 2020

=1467063461/1892775362*100 = 1640211901/2049583313*100
= 77.50% = 80.02%

8.3.1.4 Earning Ability / Quality Ratios

Net Interest Income
Net Interest Margin (NIM) = x 100
Total Assets

Year 2019 Year 2020

= 61774496/1892775362*100 = 74959172/2049583313*100
= 3.26% = 3.65%

Net Interest Income

Spread Ratio = x 100
Gross Interest Earned

Year 2019 Year 2020

61774496/153676364*100 = 74959172/152003210*100
= 40.19% = 49.31%
Net Income
Return on Equity (ROE) = x 100
Total Equity
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 Year 2019 Year 2020
= 42461661/169068883*100 = 50960618/184072907*100
= 25.11% = 27.68%

Net Income
Return on Assets (ROA) = x 100
Total Assets

Year 2019 Year 2020

= 42461661/1892775362*100 = 50960618/2049583313*100
= 2.24% = 2.48%

Net Income
Net Profit Margin = x 100
Gross Interest Earned

Year 2019 Year 2020

= 42461661/153676364*100 = 50960618/152003210*100
= 27.63% = 33.52%

Net Income – Preferred Dividend

Earning Per Share (EPS) = x 100
Total Number of Shares Outstanding

Year 2019 Year 2020

= 15.63 = 17.07

8.3.1.5 Liquidity Management Ratios

Total Liquid Assets
Liquid Asset to Total Asset Ratio = x 100
Total Assets

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 Year 2019 Year 2020
= 530454588/1892775362*100 = 1035616032/2049583313*100
= 28.02% = 50.52%

Investments
Investments to Total Assets Ratio = x 100
Total Assets

Year 2019 Year 2020

= 840322652/1892775362*100 = 1128674494/2049583313*100
= 44.39% = 55.06%

Total Liquid Assets

Liquid Asset to Total Deposit Ratio = x 100
Total Deposits

Year 2019 Year 2020

= 530454588/1467063461*100 = 1035616032/1640211901*100
= 36.15% = 63.13%

Total Loans / Advances

Total Loans/ Advances to Total Assets Ratio = x 100
Total Assets

Year 2019 Year 2020

= 702951491/1892775362*100 = 609307008/2049583313*100
= 37.13% = 29.72%
Liquid Assets
Liquid Assets to Short Term Liabilities Ratio = x 100
Short Term Liabilities

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 Year 2019 Year 2020
=530454588/177410596*100 = 1035616032/158721228*100
= 298.99% = 652.47%

8.3.1.6 Cash Flow Ratios

Net cash flow from operating activities

Operating Cash Flow to Net Income Ratio = x 100
Year 2019 Year 2020
= 134204343/42461661*100 = 372629959/50960618*100
= 316.06% = 731.21%
Net Income

Chapter- 9
Strategic Analysis

9.1 PESTEL Analysis

PESTEL connotes to:
9.1.1 Political:
Pakistan despite all international and public perceptions, today is a functioning
democracy and gradually there is a change in completion and composition of legislatures with
more educated people and women (27% of National Assembly and 17% of Senate) entering into
politics. Similarly it helps in designing best strategies to implement that could support the revival
of bank industry. Like in the era of nationalization banks had to as other industries that’s why
that impact is still found in the performance of this industry.

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9.1.2 Economic:
Although banking sector development is important at the early stage of economic growth,
general liberalization presuming a homogeneous bank role may not necessarily promote growth.
The estimated cost structure indicates that state-owned commercial banks are large enough,
while development financial institutions and private banks can expect to obtain cost – saving
advantages by expanding their operations. Since scope economies are significant, portfolio
diversification generally increases bank profits.
9.1.3 Social:
The social and cultural also influences on business differing from country to country. It is very
important that such factors are considered. For example introduction of Minor Account, Parda -
nasheen Accounts etc.
9.1.4 Technology:
Technology is vital for competitive advantage and is a major driver of globalization. UBL is
using latest Oracle based system for internal working called “Symbols”, whereas it is also
providing net banking too for its customers to manage their account from their home 24/7 hours.
9.1.5 Environmental:
Our initiative to preserve the environment and give a better future to our children. There is a
general awareness drive worldwide to preserve nature and reduce the use of paper; e-statements
are an effective more in this section.
9.1.6 Legal:
UBL follows strict laws regarding privacy, consumer laws and trade structures to confirm
frameworks within the industry. Such structures are required for customers in the allocated
country and for international users.

9.2 SWOT Analysis

SWOT connotes to:
Strengths:

 Having reputation for high customer banking services.

 3rd largest Bank of Pakistan

 Easy asses to branch locality.

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 Large network.

 Professional and skilled management.

 Well co-coordinated branch office system.

 Experienced personnel.

 Strong loyal customer group.

 Excellent competitive skills.

 Sound level of deposits.

 Excellent promotional and marketing campaigns.

Weaknesses:

Weaknesses is something an organization lakes at doing that, for UBL these are.

 Customer having accounts with small amounts are not given the same attention given to
those with large amounts.

 Most of employees are overloaded with the work and promotion is also not timely.

 Low salaries to staff.

 Political inter presence.

 Low market value of the bank’s stock.

 Bad recovery of overdue advances.

 Un-satisfactory working condition of branches.

 No availability of sophisticated equipments in branches.

 In efficient system of recruiting and selecting of personnel.

Opportunities:

An external situation, which an organization can benefit from is called opportunity.

 Increase the serving customer group.

 Due to efficient and experienced management group, UBL can improve and expand
its foreign operations successfully.

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 Enter new markets.

 Increase product line to serve large range of customers needs.

 Hiring of well-qualified personnel in the work force.

 Deployment of sophisticated technology in offices and branches.

Threats:

 Increase the number of new local and foreign banks.

 Low morale of employees.

 Political interference in the affairs of the bank.

 Lake of consistence in policies due to Political instability.

 Low saving rated in the country.

 Economic recession in the country.

Chapter- 10
Recommendations

Recommendations are based on the previous sections of a report and are suggestions that the
analysis feels are required to be implemented in order to improve further the standing and
position of the firm in the financial world. These are thus based on the findings and shortcomings
noted in an organization while working with it and then writing on it. Opinions of various
capable individuals are sought who through their real life experiences and deep insight are better
able to judge whether the course of action adopted by the organization is going to prove fruitful
or does it require further improvement in the form of changes in its strategies.

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10.1 Recommendations for the Firm
Branch’s staff lacks in information resources. Most of the employee’s knowledge is limited to
their department. Most of the branch staff is unaware of updates regarding UBL’s product &
services especially the online services. HR department must work on providing a platform to the
branch employees from where they can get updated information of new products & services
launched by UBL. Divide equal work to employees because in this branch, some employees have
a lot of work and some have few. They must need to check whether their employees are doing
their job well or not.
10.2 Recommendations for Future Internee:
When you get an internship your dress appropriately for the inter position. Consider this
internship as your first professional job and make sure your appearance is consistent with that
role. Commit entirely to your work during internship hours (no homework, cell phone use, or
other distractions). Keep a log of your hours and takes. If possible, keep examples of the kind of
work you are doing or, at least, describe your activities and accomplishments in a journal.

Chapter- 11
Conclusion

The six weeks spent at United Bank Limited were, no doubt a source of great learning for me
about a lot of things particularly working in bank’s atmosphere and system of bank. It was my
first experience to do work practically in some organization. This practical training program did
not only help me acquire loads of knowledge about the predominant functions performed by
banking companies, but also imparted a lot of training as regards the set of behavioral traits
which distinguish a particular person from the rest of the lot in a professional environment.

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 It has also created a strong goodwill and trust in the local market. At this point it is
significant to write a word of gratitude for the institute, which makes it sure, that all the students
get an exposure to practical life in relatively well-reputed organizations.
I must underscore the fact that writing this internship report was an evenly memorable
experience as actually doing the internship.
UBL is a good organization in the way that anybody can join it for his/ her long-term career.
Overall working environment is comfortable. Management of branch cares a lot of its employees
and considers them as the Asset of bank. Behavior of senior executive of bank is very polite and
they are caring about the individual’s career and their growth.

Bibliography

For the analysis and the history of the United Bank Limited, his financial Statements, I attain
data by using internet from different websites, in which,

www.ubldigital.com

www.ubldirect.com

www.wikipedia.com

Glossary
C
Cheques:
It is a written order of the depositor upon a bank to pay to or to the order of designated party or
to a bearer, a specified sum of money on demand.
D

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 Demand Draft:
It is a written order, drawn by one office (branch) of a bank upon another office (branch) of the
same bank, to pay a certain sum of money to or to the order of a specified person

M
Mark Up:
Yield Spread Premium is the mark-up your loan originator adds to your mortgage interest rate,
frequently without telling customer.
Mortgage:

The mortgage generally means the transfer interest in specific property by the borrower to the
lender for the purpose of securing loan.

O
Online:
Means transfer of money within a minutes through computer system from one branch to another
branch.
P
Pay Order:
It is a written order, drawn by one office (branch) of a bank upon itself, to pay a certain sum of
money to or to the order of a specified person.
S
Security of Cheques:
Check the cheques/documents whether they all are correct and complete.

Annexure

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Page 85 of 88
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 Internship Letter

Internship Letter

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