Professional Documents
Culture Documents
Wa0000
Wa0000
Wa0000
ON
Submitted To
Submitted By:
ARSHAD MEHMOOD
BBA-IT (HONS)
Roll No.832
Session 2006-10
INTERNSHIP REPORT ON
External Examiner:
Signature ...............................
Supervisor:
Signature
Director:
Signature
ARSHAD MEHMOOD
BBA-IT (HONS)
Roll No.832
Session 2006-10
2
ACKNOWLEDGEMENT
I wish to express my sincere gratitude to personnel of UBL, Main Branch, Bannu, for
their help and guidance during my Internship.
Thanks to the constraints of academic protocols, that those who were and are always
first in my mind are being mentioned last. They are my parents and my loved ones. It
is, I believe, their sincere prayers, which were a constant source of strength and
inspiration to me that resulted in the completion of this work. I dedicate this work,
blended in my boundless love and affection, to them.
ARSHAD MEHMOOD
BBA-IT (HONS)
Roll No.832
Session 2006-10
3
TABLE OF CONTENTS
Acknowledgement ii
List of Tables vi
List of Graphs and Charts vii
List of Acronyms viii
Executive Summary ix
Chapter 1
1. INTRODUCTION 7
1.1 Background of the Study 7
1.2 Objectives of the Study 7
1.3 Scope of the Study 8
1.4 Importance of the Study 8
1.5 Research Methodology (no need of this) 9
1.6 Limitations of The Report 9
1.7 Scheme of the Report 10
Chapter 2
2. EVOLUTION OF BANKING 11
2.1 Introduction 11
2.2 Growth and History of UBL 11
2.3 Management of UBL 13
2.4 Subsidiaries 16
2.5 Joint Venture 16
2.6 Role of UBL in NWFP 16
2.7 Mission Statement of UBL 17
2.8 Objectives of UBL 17
Chapter 3 18
3. ORGANIZATIONAL STRUCTURE 18
3.1 UBL Organizational Structure 18
3.2 Concept of HUB and Spokes Branches 20
3.3 Division of UBLs Office 20
3.4 Concept of consumer Assets centers 22
3.5 Top Management at the Head Office 22
3.6 Organization Hierarchiy 23
3.7 Location map work of UBL in PAK 24
4
4. DEPARTMENTATION 27
4.1 Accounts Department 27
4.2 Remittances Department 38
4.3 Deposits Department 30
2.4 Foreign Exchange Department 32
4.5 Advance department 34
Chapter 5
5. SERVICES & PRODUCT OF UBL
37
5.1 GENERAL DEPOSIT 37
5.2 CURRENT DEPOSIT 37
5.3 SAVING DEPOSIT 38
5.4 FIXED DEPOSIT 39
5.5 UNI-CASH 41
5.6 UBL WALLET VISA CARD
Chapter 6
6. SWOT ANALYSIS
6.1 Strengths 43
6.2 Weaknesses 43
6.3 Opportunities 44
6.4 Threats 44
Chapter 7
7. FINDINGS AND RECOMMENDATIONS 47
7.1 Deposits Department 48
7.2 Remittances Department 49
7.3 Cash Department 49
7.4 Bills and Clearing Department 50
5
7.5 Advace department 52
7. Other finding and Recommendation 55
BIBLIOGRAPHY
LIST OF ACRONYMS
United Bank Limited
6
SAMG Special Assets Management Group
SBP State Bank of Pakistan
SEVP Senior Executive Vice President
UBL United Bank Limited.
V.P Vice President
WHT with Holding Tax
7
EXECUTIVE SUMMARY
Now a days strong and efficient capital and financial institutions are the basic
requirements of each county. So no country can be considered strong without having
strong enough capital and financial institutions and markets. One of the components
of these financial institutions are the banks. No one can deny the role the banks are
playing in the economic development of a country.
In Pakistans banking sector, UBL is one of the leading commercial banks. Very
renowned bankers such as I.I. Chundrigar and Agah Hassan Abidi established UBL in
1959. From the very beginning, UBL was showing very good performance but in
1974 after the nationalization of commercial banks, the bank has received some very
severe financial shocks. The shocks received in 1995 were so severe that SBP had to
assume the control of the bank in order to save it from bankruptcy. But after taking
over the management of the UBL by the new set-up under the leadership of Zubyr
Soomro, the bank was successful in rebuilding its shattered image. The new
management started new schemes and injected new concepts in order to improve its
services to the clients. Now the bank is in very good financial position and also has
gained its lost Goodwill.
My three months internship in UBL Main branch Bannu, gave me a very good deal of
the practical experience about the bank, its personnel and various services it offers to
the clients. Although three months duration for studying organization by no means is
enough but I have tried my ever best to cover all the areas of the bank in my report.
This report highlights the operations and functions of bank. Banks acts as financial
agents to their customer; in return they get reward for their services. Banks play
important role in development of society. A strong economy must have a good
banking system.
United Bank Limited is one of the leading banks in Pakistan. This report explains how
different functions of UBL works and what are their services. During the critical
analysis, it was observed that UBL is one of the leading commercial banks of
Pakistan.UBL has a greater responsibility for safety and prudence. since commercial
banks must make a living by putting the money at their disposal to work, they are
faced with the problem of making a living without jeopardizing the safety of their
institution and UBL is doing all this very efficiently.
8
CHAPTER # 1
INTRODUCTION
Another important aspect of the internship program is that internee is placed in most
of the departments of the organization through job rotation. It provides a glance of
each department, as the period is too short for learning in detail.
1.3 Scope of the study
2. It will help the present and prospective students of the department in making
assignments and writing reports on the UBL, evolution of banking, importance
of banking and different operations.
9
3. It can also provide help to UBLs management in identifying their Strengths,
Weaknesses, Opportunities and Threats.
4. It can also provide assistance to students seeking financial data for analysis.
2. Personal observations.
The sources of secondary data were:
1. Annual reports
3. Relevant books.
10
1.6 Limitation of the Report
There were however some limitations and that is the two months durations of
internship are nothing to gain entire knowledge of banking. Moreover the bank does
not want to provide data particularly about the rightsizing of employees and stuck-up
loans due to various reasons, so the reader must also keep this in mind.
Chapter 2: of the report is about evolution of banking. This chapter contains detailed
information that what role the banks play in the economic development of a country.
In this chapter the bank is defined. Growth of the banking globally as well as in
Pakistan is pointed here. As well as it is about the historical background of UBL. The
circumstances in which UBL was established and its growth is discussed here.
Chapter 3: of the report is about the organizational structure of UBL. Hierarchy of
staff and various positions of seniority are shown and discussed through a Chart.
Chapter 4: covers various departments of UBL. Each department is separately given
due consideration. Various functions performed by different departments are
highlighted.
Chapter 5: this chapter is about services & product of UBL, throws light on various
financial products UBL offers to its customers.
Chapter 6: of the report consists of SWOT analysis.
Chapter 7: is consists of Findings and Recommendation of UBL
CHAPTER # 2
11
EVOLUTION OF BANKING
The word bank is derived from Latin word Bancs or Banque, which
means a bench. The explanation of this origin is attributed to the fact that
the Jews in Lombardy transected the business of money exchange on
benches in the market place. When the business failed, the people destroy
the bench.
Incidentally the word bankrupt is said to have been evolved from this
practice.
The opponents of this opinion argue that if it was so, then how is it that
the Italian money changers were never called Banchierei in the middle
ages
Other authorities hold the opinion that Bank is derived from German
word back which mean joint stock fund. Later on, when the German
occupied major part of Italy, the Back was italicized into Bank
The real momentum was given to banking system when the State Bank of
Pakistan, was established on 1st July 1948. But a real turn took place in
the banking section when a renowned banker Agha Hassan Abdi took
initiative of opening a bank, which he announced to the different mode
from the others. His dream became true when the first branch of United
Bank Limited (UBL) was opened at Macleod Road (now 1.1. Chandrigar
Road Karachi) on 7th November 1959.
This achievement was recurred after passing through many problems and
after completion of a lot of legal formalities. UBL was established on 24th
12
July 1959 as a public limited company with registered office at 1.1
Chandrigar Road, Karachi. The authorized capital was Rs. 2, 00,00,000
issued, subscribed and paid up capital was a Rs 1,00,00,000 share of Rs.
101 each. . The bank currently operating through 1300, branches in all the
major cities of the Pakistan and its registered office are situated at state
life insurance corp. Building # 1, 11. Chundrigar road, Karachi.
United bank limited is one of the most famous bank working in different
area of Pakistan, UBL is now officially the second largest private sector
bank in Pakistan with its 25 percent growth in deposits to RS 237 billion
in 2004.
Progressive Banking was a vision that came true in 1959 with the birth of
UBL. It brought in an era of modern banking and customer care beyond
the ordinary.
The Bank launched a variety of consumer banking products and services
UBL Drive, UBL Cash line, UBL Address, UBL Business Line, UBL
Wallet ATM card and UBL Business Partner.
UBL is one of the largest commercial banks in Pakistan with assets of
over RS. 190 billion, Net Assets of over RS. 13 billion and a solid track
record of 47 years. UBL offers its services through a nationwide network
of over 1300, branches spread all over Pakistan and 15 overseas branches.
The Bank earned RS 4.3 billion pre-tax profits in 2003, a 59 percent
increase over the previous year, and announced a dividend of 22.5 per
cent. This remarkable performance was based on a record growth of 38
percent in advances, which grew from RS 72.8 billion in 2002 to RS
100.2 billion in 2003 driven by growth in deposits from RS 158.3 billion
in 2002 to RS 185.1 billion in 2003.
The Bank was privatized in 2002, through the sale of 51 percent stake to
a consortium of the Abu Dhabi Group led by His Highness Shaikh
Nahayan Mabarak al Nahayan and the Bestway Group led by Sir
13
Mohammed Anwr Pervez,. The issue is unsecured and subordinated to
payment of principal and profit to all other indebtedness of the Bank
including deposits.
United Bank Limited is one of the largest commercial bank in the
country. With almost 47 years of good standing to its valued clients, it has
stood the test of time, producing assets of over RS. 282 billion.
It offers its services through a wide network of over 1300, domestic
branches all over Pakistan and 25 overseas branches as part of global
network.
Management of UBL.
Mr. Ismail Ibrahim Chandrigar died in 1960 and was replaced by Mr.
Habib Ibraheem Rahmatullah while Mr.Shafiq Saigol retired in 1962 and
Agha Hassan Abdi took charge as managing director.
14
On 1st January 1974 all commercial banks were nationalized and the
boards of directors of these banks were dissolved. Mr. Mushtaq Ahmad
Youdafi took charge as president of UBL. After nationalization 14 units
of commercial banks were merged in order to form 5 units. On 1977
commercial bank limited and Union Bank were merged with UBL.The
names and tenure of various presidents of UBL after nationalization are
as under.
15
5 Mr. Tajamul Hussain 01-01-1983 15-07-1988
10 Saeed Butt
12 M. R. Khan
13 Zubair Soomro
UBL Opperations.
From the very start of its operations UBL is providing very efficient and
courteous services to its clients, and as a result of these it has achieved
progress in a very limited span of time. UBL has also the honors of
earring profit in the very first year after the commencement of business in
1959.
16
1 Highness shaikhnayan Chairman
mabarak
17
medium and big industries, commercial establishments,
agriculturists and other needy persons. UBL collects electricity, gas and
telephone bills from public on behalf of various departments and issues
T.V licenses on behalf of Pakistan Television Corporation.
UBL has established and organized branches both inside and out side
Pakistan. These are two subsidiaries and joint ventures of UBL as under.
1. Subsidiaries:
3. Branches
18
are .bahrain,Qatar,Saudi Arabia,united Arab emirates,yemenarab
republic,uk,Switzerland,Egypt,oman and the united states.
We shall dominate Pakistans financial markets and be the leading bank
of Pakistan in term of quality of customer services, assets, profits and
reserves. We shall consistently try to be among banks in the Pakistan.
Comparing over selves to international standards. We shall be a modern
universal bank. Our employees will be efficient, motivated and have
corporate pride
19
purpose. All the activities of an organization are due to its objectives and
goals. And for the attainment of those objectives, various types of
financial products and plans are developed. UBL has also some
objectives, which are as under.
To develop SMES.
CHAPTER#3
ORGANIZATIONAL STRUCTURE
Organizational structure of a firm provides boundaries for authority of
persons and clarifies individual responsibility and authority. It shows who
is responsible to whom, and who has the authority to give orders to
someone. An organization having dual authority or vague structure would
not have clear direction and will face hurdles in getting its goals and
objectives. Therefore, it is very important for any organization to have a
well-established structure of responsibility and authority. An organization
structure should be so designated to clarify the environment so that
20
everyone knows his duty and who is responsible for what. It results to
remove obstacle to performance caused by confusion and uncertainty of
tasks and to furnish a decision making communication network reflecting
and supporting enterprise objectives.
Paste Chart
CHAIRMAN
H.H Sheikh Nahayan Mabarak Al Nahayan
21
DEPUTY CHAIRMAN
Mr. Muhammad Anwar Pervez, OBE, HPK
PRESIDENT & CEO
Atif R. Bokhari
DIRECTOR
Zameer M. Choudrey
DIRECTOR
Omar Z. Al Askari
DIRECTOR
Muhammad Tehsin Khan Iqbal
DIRECTOR
Ahmad Waqar
Director
Javed Sadiq Malik
22
determine the number of OMs. OMs are assisted by circles executives
who are of the rank of SEVP or VP.
The entire country is divided into Circles which are further divided into
Zones.
The circles are administered by circle executive. Each zone is comprised
of a number of branches, which are managed by branch managers who
are mostly Grade I or Grade II officers. Some large sized branches are
also managed by AVPs.
23
4.3 DIVISION OF UBL S OFFICE
Basically there are two types of offices in UBL
1. Head Office
1. Head Office
Head office of UBL is in Karachi. It exercises overall control over
the bank. The head office (HQ) has various functions.
It formulates polices and ensures its implementation.
To supervise RHQs.
24
To extend the credit facilities by keeping in view all the prescribed
conditions.
25
In Consumer Assets centers the products are divided in to two types: The
Secured, and Un-secured Products. The Secured include UBL Autos,
UBL Address, and Credit Card while the UBL Money and UBL Cashline
comes under the canopy of Un-secured Products.
There is a Group Executive, a Global Sales Head, Head Secured
Financing, Head Un-secured Financing, National Sales Managers,
Regional Sales Managers, Relationship Managers and the Relationship
Officers.
26
committee, other than those, which relate to matters specified by
the board in this behalf, shall be laid before the board
FUNCTIONS OF EXECUTIVE COMMITTEE
The members of the executive committee other than the M.D. shall
hold office for such period as may be determined by the Board of
Directors.
The MD shall hold office for term of three years, which the
government may extend from time to time.
27
Organizational Hierarchy C
Board of Directors
Executive Committee
President/CEO
SEVP
EVP
SVP
VP
AVP
Office Grade 1
Non Clerical Staff Clerical Staff Officer Grade III Officer Grade
II
28
Organizational Hierarchy Chart of consumer sector in UBL
Board of Directors
Executive Committee
President/CEO
Group Executive
Relationship
Manager
29
Location map
WITH an integrated network of over 1000 branches in Pakistan as
well as Overseas, UBL gives you direct access to a comprehensive range
of better banking facilities to help you monitor your business locally as
well as internationally.
www.ubl.com.pk
30
CHAPTER # 4
DEPARTMENTATION
UBL like other commercial banks established various departments for the
performance of various functions. Some of the departments of UBL are
Foreign Exchange department, Advance Department, Accounts
Department, Deposit Department and Remittance department etc.
1. ACCOUNTS DEPARTMENT:
The cashbook is used for balancing the cash received and cash paid at the
end of the day.
Kinds of Accounts:
i. Current Account
i. Current Account:
31
In Pakistan saving deposit account can be opened with a very small
amount of money, and the depositor is issued a chequebook for
withdrawals. Return is paid at a flexible rate.Calculated on by yearly
basis. However, withdrawals of limited accounts are generally allowed
only one or twice a week. The consumers have to give a notice of about
two weeks before the withdrawals of large amount the minimum amount
of money required for opening the saving Account is Rs. 500/- while to
remain the A/c is running position the account holder has to maintain a
balance of Rs. 100/- for the withdrawals are concerned there is no
restriction but the bank discourages very regular withdrawals of small
amounts.
The deposits that can be withdrawn after a specified period of time are
referred to as fixed or term deposits. The account holder keeps a
specified amount of money for a definite period of time. The amount
deposited is not withdrawal by cheques, And after the maturity of the
previously agreed rate of return.
This is the special type of Account (A/c) offered by UBL. This type of
A/c is opened for the students and salary holders. In this A/c there are
some facilities offered for the A/c holder such as
..
32
III. No restriction on drawing.
VI. Receiving of salary from others Banks before 1st of the month.
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.
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;
33
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.
In this way the person who wants to remit money goes to the bank and
fills the application form by filling the name of the drawer branch,
amount and the payees name. The amount to be remitted is deposited
with the cashier along with the commission on DD and the in charge of
remittances department will prepare the instrument. It is signed by two
officers of the branch and is then handed over to the applicant. The
amount can be received by presenting DD to the drawer branch
personally or through a bank.
It is the most faster transfer of money from one bank to another with in
the country.
34
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 trader transfer money to the seller through bank, and the seller sent
goods to the buyer as soon as possible, and thus buyer save his traveling
charges , as well as he also not close his business of the buying of goods
for the business.
3. DEPOSIT DEPARTMENT:
1) Current Account
4) Call Deposit
`The classification of deposit chiefly on the basis of time and the purpose
for which the account is opened with the bank.
35
Now we will study the various types of deposits in detail:
1. Current Account:
In Pakistan a saving deposit A/c can open with a very small amount
of money and the depositor is issued a chequebook for withdrawals.
Return is paid at a flexible rate calculated on six months basis. However,
withdrawals of limited amount are generally allowed only twice a week.
The customer has to give a notice of about two weeks before the
withdrawals of large amounts.
36
upon the duration of the deposit. The amount deposited in fixed account
is not withdrawn able. The amount is received back after the expiry of
fixed period.
One of the most important aspects of term deposit for the banks is that the
money of this deposit can be invested in various what the bank consider
profitable.
For such International Business transaction the bank utilize the service of
its Foreign Exchange Department. The department plays very crucial and
important role in international trade. The service, which Foreign
Exchange Department of the banks offers, is the parallel banking with
general banking and additional function of import and Export Business
controlled by State Bank of Pakistan. The rules and regulations are
framed by the SBP.
37
without permission from the SBP under Foreign Exchange control Act
1947. Foreign Exchange regulations are issued though the Exchange
control Department of the SBP.
Current Account
Saving Account
38
i. Current Account:
US DOLLARS
UK POUND STRELING
JAPANES YEN
GERMAN MARK
SAUDI RIYAL
UAE DARHAM
5. ADVANCES DEPARTMENT:
39
Besides deposits the other major function of the bank is to advance
money to the clients. This function of the bank contributes a great deal to
the revenues to the bank. Due to its utmost importance to the bankers
success, this area is given special importance and attention.
Commercial Finance
Agriculture Finance
Industrial Finance
Export Finance
Import Finance
40
this facility are that the total amount is not given to the borrower at once
rather it is given in installments, or when over required. The borrower
has to the interest only on the amount outstanding against him.
Some time it happens that a reliable, regular customer may ask for
a very short period credit. The bank accommodates such customers
41
through the facility of over-drafting. In this facility the bank charges
interest on the outstanding amount only. This facility may be given
without any security or is provided against some collateral. It might be a
temporary facility or an over-draft-limit may be sanctioned to the
customer, which may be used again and again during a certain period of
time.
6. CLEARANCE HOUSE:
When the payee is an account holder in the same bank, then the cheque is
directly transferred from one to the other. And the total assets and
liabilities of the bank remains the same. Then in such cases the payee
deposits cheque in this bank drawn on some other bank. The bank with
the cheque is deposited becomes the creditor of the drawers bank. The
debtor bank will pay this amount of the cheque by transferring it from
cash reserves if there is on off setting transaction.
42
In daily business of the bank, there are a number of chepues deposited
with one bank, which are drawn by other banks. The drawer bank
becomes indebted to the bank in which the chques are deposited for
collection. In the same way the creditor banks also receive cheques
drawn on other banking giving blooms of payment by them. Now it will
be very inconvenient, uneconomical for the bank to transfer cash for
fulfilling reciprocal obligations. The best, easiest and safest way will be
to off set the reciprocal claims of each other and transferring only the net
amount due by any on the Clearing House provides this facility.
Outward clearing
book.
CHAPTER # 5
43
1. General Deposits:
Due to the ever-increasing need for capital there are now a few business
enterprises, which are carried, put totally with the owners equity/capital.
So borrowing is becoming an essential feature of todays enterprise. But
in case of banking business borrowing from outside sources is all the
most vital. And this is very common observation in the banking business
that in a given banks found treassures the borrowed capital is much
greater than its own capital. Bank borrows mostly in the form of various
deposits the greater the difference between the rate of borrowing and
lending; the greater will be the profit margin, for the bank. But the bank
look forward for more deposits, as this will create more funds available
for employment. So greater deposits will result in greater return for the
bank and as a result greater profit. In banking business these deposits are
the lifeblood of a bank. In deposit being the main advantage for the
customer is as debts.
2. Current Deposits:
UBL offers the facility of current a/c both in Pakistan rupees and foreign
currencies. On maintaining such accounts these is no restriction on the
customer residence. These accounts are usually maintained by
businessman and business concerns. It is become that they can take and
44
deposit money as money times as they deem right during the banking
hours. As such these accounts are payable on demand. In Pakistan on
offer any interest. Some of the solvent features of this a/c are as.
ii. These a/cs are regulated under the rules and regulation of SBP
especially deposits of $1000 is free from all exchange control.
iii. Conversion of these funds into any currency and transfer for of
these finds into any country is not restricted.
3. Saving Deposits:
45
the customer can deposit and withdraw money as and when required by
the client during the banking hour.
46
4. Fixed Deposits:
These deposits are created by a single as such there are two transaction
involved. One is when some body deposits the money and the other when
the customers withdraw the money after or before the due date. In case of
withdrawing the deposit before maturity no interest is paid to the deposit
holder. The rate of return on time deposits various with the duration for
when the deposit is created. The duration various from a day as long as
five years.
5. Uni cash:
Now days carrying cash while going out of your place is very risky.
Every body wants maximum security while keeping is money in his
pocket. People make use of TC and other various credits cards for this
purpose. UBL provides such facility through UNI-CASH the
management of UNI-CASH is carried out in following ways.
b. Pin Change:
47
When a customer after availing the facility first time with the UNI-CASH
card, he/she will be required to change PIN (Personal Identification)
number is sought from security point of view. The change number
selected by the customer should be such that the customer can easily
remember it and can not be easily guessed by other.
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:
i. Balance Inquiry
48
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 UBLVISA WELLET , the customers have the power of using your
card at more than 925 ATMs across the countory and over 900,000 VISA
ATM locations world wide in 150 countories and over 5,000 ORIX
locations across the nations and 22 millions VISA merchant locations
world wide. It can be used 24hour day,
7 days a week at all UBL ATMs as well as others ATMs in 1Link &
MNET network.
MAIN MENUE:
CASH WITHDRAWAL:
MINI STATEMENT:
PIN CHANGE:
49
1. Select pin change from the menu.
4. Select the account to which you wish to transfer funds, or type in the
2. The cashier will swipe your UBL Wallet through the point of
sale(POS) Terminal and enter the purchase amount.
50
CHAPTER # 6
SWOT ANALYSIS
The word SWOT consists of four words, which are stands for
Strengths, weaknesses, opportunities and threats, respectively.
Through the SWOT Analysis technique one can analyze the present
condition and performance of a given organization and can prepares plans
for the future.
1. STRENGTHS:
51
Large network.
Experienced personnel.
2. WEAKNESSES:
Customer having accounts with small amounts are not given the
same attention given to those with large amounts.
52
In efficient system of recruiting and selecting of personnel.
4. OPPORTUNITIES:
4. THREATS:
53
The bank should maintain principle of professional management and
adhere the sound and sophisticated banking rules and regulations in order
to build confidence of people in the institution
CONCLUSION:
After the establishment of UBL in the year of 1959, the bank was
successful in achieving some of its objectives. In the very first the bank
earned a handsome profit.
UBL was not an exception to these changes. In the last decade of the
century the bank had witnessed very bad banking business. To rebuild the
bank new professional people were inducted under the leadership of
Mr.Zahoor Soomro. Under this leadership the bank introduced incentive
schemes and products such as CARAMMAD, ZARAMMAD and UNI-
MAHANA, etc, schemes were introduced. The bank also reshaped the
product of Rupee Travelers Cheque (RTC) with a new name of
HAMRAH.
All these schemes were very successful in stopping the capital flight from
the country, which was the result of the foreign currency a/cs in May
1998 after the nuclear detonation. Now the bank is focusing on improving
the standard of its services facilities, specially improving its corporate
banking and more customer satisfactory culture. All these new and
potential improvements are signs of bright future for the UBL.
54
After the conclusion I would like to recommend some points which I
think if given due consideration by the UBL management will definitely
result in improving the banks image, goodwill and position as well. Like
other companies, for expansion of its business the bank should focus its
activities on increasing its stockholders equity. And also the hank should
be obliged and fulfill its obligations to its customer, stockholders and
public. Some suggestions may be given in order to give right
back/objectives.
55
CHAPTER#7
RECOMMENDATIONS FOR IMPROVEMENT:
Recommendations are based on the previous sections of a report and are
suggestions that the analyst feels are required to be implemented in order
to improve further the standing and position of the firm in the financial
world. These are thus based on the findings and shortcomings noted in an
organization while working with it and then writing on it. Opinions of
various capable individuals are sought who through their real life
experiences and deep insight are better able to judge whether the course
of action adopted by the organization is going to prove fruitful or does it
require further improvement in the form of changes in its strategies.
Following are the findings and recommendations for various Departments
that were felt are required while consulting the staff members of UBL,
Main Branch Bannu.
56
7.1 Deposits Department
The comparative analyses reveal that UBL has the lowest share of
Deposits out of the total in the market. Since deposits are the
lifeblood of a bank, it should attract more customers and expand its
deposit base in the following manner
57
7.1.5 Performance Appraisal
UBL should follow the performance evaluation policy strictly and
award those who bring in deposits and help it increase its market
share. Unfortunately, this has been stated in the banks policy but is
not being implemented.
58
should thus be decentralized and the Hub Branch having the
authority of directly confirming the amount.
59
organizations giving their employees conducive, rewarding and
equal opportunities of prospering and growing with it. Thus, the
Human Resource Department at the Head Office should prepare a
plan that shows the future growth potential of the employees based
on their job performance and evaluation and make it known to all.
60
attained before the amount is sanctioned and no leniency shown in
any case.
61
especially when hiring and placing personnel and the recruitment
policies are changed to give preference to M.B.A. and M. Com.
students.
62
Technology plays an important role in this regard. No body can
stop the process of innovations. This process is not limited to any
particular branch or area. This is also happening in the field of
science and technology. Computer is the output of such activities.
Application of computer in the field of banking is not a novelty any
more. For this purpose if a separate research wing is established, it
will greatly benefit for the bank. Because this wing will Asses new
technologies that can be adopted by the bank.
xii. Communication:
Swift communication in any organization is the inevitable need.
But reliable, swift and workable communication is of utmost
importance to the bank. All the operation of the bank is very much
depending on inward and outward communication. And any
disturbance in the free flow of information will bring drastic
consequences. So to avoid such situation a more swift flow of
information is to be maintained. As this will aid management in
taking action in due time, and will also positively affect customer
service. So for the written or oral communication are concerned
that 7Cs are desired to be considered in bank.
PROBLEMS:
63
1) Internal Problems (Administrative Problems)
The second problem related to the time factor was the duration of the
working, which is very 1ong and boring for the employees regarding the
type of work they are bound to do. Account works if continued the
daylong irritates the person who had no time for refreshment/lunch,
which is in a normal routine of the banks that an employ remains busy
rottenly till late at night.
Often the employees of the bank work above the scheduled time and they
are not paid over time they just sit to obey the orders of the higher
management.
Another thing, which I observe that they were not, granted leaves as
desired because of shortage of stuff and the nature of duty.
64
not recruited. Now the same amount of work is done by lesser number of
employees and the burden per employee is increased.
Although the computer facilities are available with every branch but they
are not utilized properly because of the unavailability of the computer
programmers.
The problems, which relate to the public or say clients, who visit bank in
connection with their business, are as external problems. In Pakistan
literacy rate quite low in backward areas. Nearly 80% of the people are
illiterate businessmen. They do not know the real procedure of cash
transaction and creates various problems for the bank employees. Some
times they ask very false question for nothing during the busy hours.
It is a normal routine for them to bring their friends also having a hope
that they will be offered a cup of tea with some sweet. The main problem
faced by the managers of the bank for which he has no solution is that
these illiterate visitors come to the office and the managers from out side
places for example Lahore and Karachi etc for their clients receive use
telephones.
SUGGESTIONS:
Regardless of it that a problem is of the external nature or that of the
internal nature, it is necessary for the bank administration to solve them
properly so that the bank can run better towards the achievement of its
65
predetermine objectives. Using the proper way of administration could
solve both the problems internal and external.
The workers should given leave at any emergent time. This will increase
the desire of the workers for work. Proper remuneration to a worker
brings positive results for an institution. It is therefore suggested that if
anemployee works more than four hours as over time should be given full
daily.
BIBLIOGRAPHY
i. Annual Report of United Bank Limited (UBL), 2010-10
iv. Mr. Javed khan branch manager of UBL (Parety gate bannu).
66
vi. Strategic management by fred R David 10th Edition.
67