University Of Education

Multan Lahore Campus

Department of Economics and Business Administration

Internship Report
<<United Bank Limited>>
A REPORT SUBMITTED TO THE DEPARTMENT OF ECONOMICS AND
BUSINESS ADMINISTRATION, UNIVERSITY OF EDUCATION, MULTAN
CAMPUS, LAHORE IN THE PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION (HONS)

Submitted By:
Bakhtawar Ovesi
Student Roll No.
<<Bsf1903557>>
Session
<<2019-2023>>
Submission Date
<<10 July 2023>>
 University Of Education
Multan Campus, Lahore
Department of Economics and Business Administration

LETTER OF UNDERTAKING

This internship report was submitted by<< Bakhtawar Ovesi>>D/O<<

Muzaffar Mehmood Ovesi>>Roll No.<<Bsf1903557>>for the partial
fulfillment for the degree of

BBA(HONS)
Session (2019-2023)

with specialization in
<< BANKING FINANCE>>

and is hereby accepted by the evaluation committee

Internship Supervisor Sir Ammar Haider

HOD/ Coordinator Sir Rana Tahir

External Examiner

Principal
Department of Economics and Business Administration

UNIVERSITY OF EDUCATION

Multan Campus, Lahore

Internship Report

BBA(HONS)
 Dedication
I humbly dedicate my report to my report to Allah Almighty, Who knows All and
have the Knowledge of Unseen, Who made this possible. I would like to dedicate
this report to my parents and my teachers who guided me in the right direction as a
light tower.

Acknowledgement
I got the opportunity to work in the United Bank Limited MDA Branch with all the
supportive and coordinating staff. I would like to give my deepest
thanks to Sir Syed Ahmad Kazmi, Branch Manager, who gave me the support
needed for my internship. I also like to thanks Sir Shoaib, Manager Operations,
who
taught me most of the work experience. I also pay my deepest thanks to Madam
kiran, who helped me in the work of bank.
 Executive Summary

United Bank Limited is one of the largest bank privatized by the Government of
Pakistan. It has over 1300 branches across Pakistan and overseas. The bank is
growing in the previous years as its total assets are over 1.5 trillion in Pakistani
Rupees.

I worked for six weeks in the MDA branch and this report includes my learning and
experience in the branch. Topics covered in this report are: history of the bank, its
values, organizational structure, departments and their working, products and
services of the bank.

In the end of report critical analysis of the bank, its SWOT analysis and then the
conclusion is given. Recommendations are also made in the end of report.
Table of Contents
Overview........................................................................................................................................................3
Introduction................................................................................................................................................3
History........................................................................................................................................................3
Vision, Mission and Values of UBL...............................................................................................................4
Vision.........................................................................................................................................................4
Mission.......................................................................................................................................................4
Values.........................................................................................................................................................4
Organization Structure...................................................................................................................................5
Head Office................................................................................................................................................5
Registered Office.......................................................................................................................................6
Number of Employees...............................................................................................................................6
Introduction of Departments..........................................................................................................................7
Corporate banking group...........................................................................................................................7
Small and medium enterprise (SME) banking group................................................................................7
Credit administration department..............................................................................................................7
Consumer banking group...........................................................................................................................8
Investment banking group..........................................................................................................................8
Treasury and capital markets group...........................................................................................................8
International division.................................................................................................................................9
Financial institution division......................................................................................................................9
Islamic banking group (UBL Ameen)........................................................................................................9
Human resource department......................................................................................................................9
Finance division.......................................................................................................................................10
Information technology department.........................................................................................................10
Audit department.....................................................................................................................................10
Products and services of UBL......................................................................................................................11
Deposit Products......................................................................................................................................11
Consumer Loans......................................................................................................................................13
Card Products...........................................................................................................................................14
Omni – Branchless Banking....................................................................................................................15
UBL Netbanking......................................................................................................................................16

1
 UBL Online..............................................................................................................................................16
UBL Go-Green.........................................................................................................................................16
UBL Ameen.............................................................................................................................................17
Other Retail Product................................................................................................................................19
Agricultural products...............................................................................................................................19
Experience as an Internee............................................................................................................................21
Cash Department......................................................................................................................................21
Clearing Department................................................................................................................................22
ATM Management Department...............................................................................................................23
Customer Service Department (Including Account Opening Department).............................................24
Operations Department............................................................................................................................25
Finance Department.................................................................................................................................25
Critical Analysis of UBL.............................................................................................................................26
Consolidated Balance Sheet (For last three Years)..................................................................................26
Profit and Loss Account (For last three years).........................................................................................27
Horizontal Analysis of Balance Sheet......................................................................................................28
Horizontal Analysis of Profit and Loss Account......................................................................................30
Vertical Analysis of Balance Sheet..........................................................................................................32
Vertical Analysis of Profit and Loss Account..........................................................................................34
Financial Ratio Analysis..........................................................................................................................36
SWOT Analysis of UBL..............................................................................................................................41
Strengths..................................................................................................................................................41
Weaknesses..............................................................................................................................................42
Opportunities............................................................................................................................................42
Threats......................................................................................................................................................42
Conclusion...................................................................................................................................................43
Recommendations........................................................................................................................................44
References and sources................................................................................................................................45

2
 United Bank Limited

Overview
Introduction:

UBL is a private commercial bank and its head office is located in I.I. Chundrigar Road,
Karachi. Bank has over 1390 branches in Pakistan and 18 overseas branches. According to 2021
financial statements, it has total assets of over Rs. 2.618 trillion. It has total customers more than
4 million.

History:

UBL established its first branch in Karachi on 7 th November, 1959. It was established by Agha
Hasan Abedi. In 1960, approximately after six months it was founded, new branches were
established in Dacca, Lahore, Lyallpur, Chittagong and Narayanganj. In 1963, it opened its first
branch internationally which was on William street in London, and became the first Pakistani
bank to open an international branch. It was the first bank which introduced computer system in
the banking industry, in 1967. Till 1977, UBL has opened its international branches in Abu
Dhabi, Kingdom of Bahrain, Qatar, Yemen and New York City.

In 1974, Government of Pakistan nationalized the bank. For a period of approximately 28 years,
bank worked under the government. During this period, bank launched electronic banking
services for Hajj, opened a representative office in Iran.

In 2002, UBL was privatized by the Government of Pakistan. Majority of its shares were
brought by H E Sheikh Nahayan Mubarak Al Nahayan, head of Abu Dhabi Group and Sir Anwar
Pervez, head of Bestway Group. In 2002, National Bank and UBL merged their operations in UK
to form United National Bank Limited. After privatization, bank is continuously working towards
progress and achieving new heights; it has launched Premium Debit Card with collaboration of
MasterCard, in Pakistan and introduced Go-Green program in which SMS alerts are sent to the
customer on every transaction and statement in mailed. UBL has been awarded the best bank of
2016 in the Pakistan Banking Awards.

3
 Vision, Mission and Values of UBL
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

Values

• Customer first

• Honesty of purpose

• Teamwork

• Excellence

• Meritocracy

Organization Structure

This is the organizational structure of the bank

4
 Pressident/CEO

Board of Directors

Regional Managers

Area Managers

Branch Managers

Staff

Head Office:

I.I. Chundrigar Road,

Karachi – 74000, Pakistan.

Registered Office:

13th Floor, UBL Building, Jinnah Avenue,

Blue Area, Islamabad

5
Number of Employees:

Exact number of employees is not known but over 15,000 workers are employed in the bank in
2016. In 2015, 14,623 employees were working in the bank

Comments on the Organizational Structure:

UBL has a centralized organizational structure, in which every branch has to report to the area
manager which then report to the regional manager. The regional manager then transfers the
report on the monthly progress to the main head office. All the orders, policies and procedures
are followed by the branches which are developed in the head office by considering the
prudential regulations of State Bank of Pakistan and banks own polices.

Introduction of Departments:
Following are some of the major departments of UBL.

Corporate banking group:

Corporate banking group deals with the multinational companies, large corporate
customers which includes both private (i.e. international or large firms) and public sector
(government institutes) clients. Highly skilled and qualified workforce is required for this
group as it manages some of the largest accounts of the bank. So this group formulates its
strategies and polices in such a manner which they are attractive for their current
customer base and also for the new clients. Some of the services provided by the group
are syndicate financing, financing against liquid securities, project financing, working
capital financing, term finance certificates (TFC’s) investment, cash management
services, letter of credit etc.

Small and medium enterprise (SME) banking group:

Commercial banking group is present in almost every branch of the bank. This
group deals with the needs and requirements of medium and small businesses. Usually
needs of those businesses are much smaller than the large corporate clients. Specified
6
terms and conditions are applied for every SME which are according to the bank’s
policies. Some of the things which are put under consideration are business nature, its
network, its growth in the coming years and high profit turnovers.

Credit administration department:

This department deals with the credit or advancing facilities provided by the bank.
It keeps the record of all the loan documents, necessary securities and documents needed
for the issuance of loan, fulfillment of all the legal aspects, managing the credit policies
and keeping the loans less than the 60% of total net worth (or customer deposits),
management and monitoring of credit portfolio, recoveries of mark ups or interests etc.

Consumer banking group:

Consumer banking is done in every branch of the bank. It specifically deals with
the individual customer services which includes both making deposits and personal loans.
Different products are provided or offered to the customer, each of the products is
designed according to the target market’s needs. Main products which are offered to the
customers are credit card, debit card, deposit accounts, home loans, car loans, business
loan for an individual etc. Products are renewed and developed according to the
customer’s needs and bank’s policies. Workforce is regularly trained and kept up-to-date
because they are in direct contact with the customers.

Investment banking group:

This group was established in 2002, and UBL was the first bank in Pakistan which
provided investment banking products and services. This group consists of 19 members
which are highly skilled. It provides services in debt and capital markets i.e. TFC’s
investments completely by the bank or partially, project and structured finance i.e.
development of risk assessment, equity and advisory i.e. buying and selling of equity or
assets.

7
Treasury and capital markets group:

This group deals with the foreign exchange in different currencies on behalf of its
customers, manages the balance sheet and liquidity requirements of the bank, deals with
derivatives like forward rate agreements, manages the share capital of the bank etc. The
human resource of the group is highly qualified and manages the crucial capital and
money aspects of the bank.

International division:

This department deals with the management of international branches of UBL. All
the operations related to overseas branches are handled by this department which includes
global credit risk management and international transactions. Every product is designed
according to the demands of international clients and managed by this division.

Financial institution division:

This division manages the financing activities of the bank for the financial
institutes including both banking and non-banking institutes, i.e. financial needs of local
or foreign banks, insurance companies, DFI’s etc. This division also manages the
financial institutes risk management unit and gives advisory services to the clients for
different management problems.

Islamic banking group (UBL Ameen):

This group deals with the operations of Islamic Banking Business and develops
Islamic banking products and services with Shariah Advisors and makes policies and
procedures. It is a separate division in the bank which manages its operations, services
and products and report to the bank. The workforce of Islamic banking is trained

8
regularly. Murabaha, diminishing musharaka etc. are the services and related products are
provided by them.

Human resource department:

This department is responsible for the recruitment, selection and hiring of the
workforce. Eligibility criteria, selection process, job specifications and training courses
etc are developed by this department. For selection and hiring purposes different tools
and techniques are introduced, like introduction of interview technique based on behavior
of candidate.

Finance division:

This division manages the book keeping and financial statements preparation. It
develops polices for the allocation of funds in the bank for its operations like financing
and projects budget analysis. It analyze the market and competitors to improve its polices
for better working.

Information technology department:

UBL has internal software which is called CREAMS (credit risk environment’s
administration and management system) which collects and updates date into the system
which is required for other purposes like valuation of assets and making reports etc. The
software is supported by Oracle software applications, which includes Oracle E-Business
Suite Human Resource Management system, Oracle Payroll, Oracle General Ledger and
Oracle Fixed Assets Management System. These applications have increased the
efficiency of the banking operations and reduced the time taken to done those operations
by 10,000 man hours with the reduction in paper work.

9
 Audit department:

Board Audit Committee is responsible for the auditing of every branch of the
bank. The internal auditing team visits every branch according to its scheduled routine or
sometimes pays surprising visits. They check the operations of the branch and its overall
environment. When any deviation from any bank policy is noted by the audit team then it
is reported to the Head Office, after which recommendations are made to the branch.
These audits are held to improve and control the environment and operations of the
branch and for the proper following of the policies of the bank.

Products and services of UBL

Following are some of the products and services

Deposit Products:
UBL provides a variety of deposit products which are designed according to the
needs of the individuals, either someone wants to open a saving account or a businessman
wants foreign currency account. Every product’s features are designed at a level to
achieve maximum fulfillment of customer’s requirements.

UBL Mukammal Current Account is a current account for the individuals, traders,
businessman and other commercial entities. It has no minimum balance restriction
and also provides some of the services free of any charges which are ATM debit
card but annual fee is charged, cheque book, account statement, go green SMS
alert, internet banking, country wide inter branch online transactions.

UBL Business Partner Account is a current account which can be used by

individuals, sole proprietors, partnerships and government. At least Rs. 10,000 are
required in the account as minimum balance otherwise Rs. 50 will be deducted

10
from the account every month. Free services provided are deposits and
withdrawals in both cheque and cash, debit ATM card annual fee, cheque book,
issuance of rupee travelers cheques, one locker free for first year if it is provided
in the branch facility.

UBL Profit and Loss Sharing Savings Account (UBL Rupee Transactional

Account) is a savings account which can sure the security of savings and also the
provide profit on it. Some of the features are  No limitation on withdrawals
• Share of profit is credited on half-yearly basis
• Profit is calculated on monthly average balance

UBL UniZar Foreign Currency Savings Account is a savings account which is

opened and maintained in foreign currency. UBL is providing this account in
following five currencies and the minimum deposit required for each currency is
 USD (US Dollar) : 500
• EURO : 400
• AED (UAE Dirham) : 2,000
• GBP (Great Britain Pound): 300
• SAR (Saudi Arab Riyal) : 2,000
The profit is calculated on the basis of minimum balance at the end of each month
and the profit is given bi-annually and no restrictions on number of transactions.

UBL UniZar Foreign Currency Current Account is a current account which is

maintained in foreign currency. Account can be opened in five currencies i.e US
Dollar, Euro, UAE dirham, British Pound, Saudi riyal. Minimum amount required
for the opening of the account is same as in UBL UniZar Foreign Currency
Savings Account. No restrictions on number of transactions. Zakat is exempted in
this account.

UBL UniZar Foreign Currency Term Deposits Receipt is a term deposit account
in which customer is offered different terms/periods for the maturity of deposit.

11
Maturity periods are three months, six months and twelve months. The account is
offered in a range of foreign currencies. Upon maturity the deposit along with
profit is given back to the customer. Attractive return rates are provided and profit
is given on the booking month’s rate.

UBL Regular Term Deposit Receipts is a term deposit account which is provided
for a range of tenors starting from one month to six months and one year to ten
years. Rate of return is renewed for every month on the 1 st and attractive rates
provided to the customers. Renewal option is also provided before encashment of
the TDR. Profit is given every month and TDR can be en-cashed before the time
of maturity.

UBL Mahana Aamdani Savings Account is a savings account for the individually
or jointly operated, partnerships, Joint Stock Company, government institutes, self
employed individuals, salaried and retired individuals, housewives, trusts etc. the
account can be opened with Rs. 100 and have no minimum balance requirement.
Profit is calculated on monthly average balance and credited to the account.

UBL Mahana Aamdani Term Deposit is a specially designed term deposit account
for the customers who are dependent on the monthly fixed salary or income.
Minimum investment required for this account is Rs. 25,000 and no upper balance
amount is fixed for the account. Profit is paid monthly, renewal and encashment
before maturity options are available. Tenures given for this account are three
months and six months, one year, three years and five years.

UBL Basic Banking Account is a current account which is suitable for students,
housewives and pensioners. This account has no minimum balance limit and is
opened with Rs. 1,000. Limit for deposits and withdrawals is applied on this
account which is two for each, any transaction above the limit will be charge with
Rs. 50 each. Unlimited ATM withdrawals from UBL ATMs. Zakat is exempted
from this account.

12
 UBL First Minor Savings Account is basically opened for the child aged between
one day and 18 years. This account can be opened with minimum balance of Rs.
100. Profit is calculated on the monthly balance. UBL First Pocket-Money Card
is issued which is used to withdraw from the profits generated on the principal
amount. A debit ATM card can also be issued on the principle amount. Check
book is issued on the names of the child and the parents or guardian jointly.

Consumer Loans:
UBL offers a variety of loans for different purposes like education, marriage, car,
house etc. Some of the products are described below:

UBL CashPlus, My Personal Loan is a need based product with non-end use
means it can be used for any personal purpose which is up to the customer. Loan
can be issued up to Rs. 2 million, which can be returned on flexible repayment
terms. Rates are attractive and no collateral requirements are needed. Loan is
issued to the person who has a minimum net income of Rs. 25,000, age between
21 to 60 years and for the period of one to five years. Salaried individuals whose
salaries are being credited in UBL are offered this loan.

UBL Address Home Loan Facility is a financing product for the construction or
buying of the new home. This product is available in Karachi, Lahore, Islamabad,
Rawalpindi and Faisalabad. A minimum of Rs. 1,000,000 loan is issued to the
individual who are resident of Pakistan, have minimum monthly income of Rs.
50,000, age between 23 to 65 years. Any salaried individual or self employed
businessman can apply. Rates charged are fixed by the bank; rates fluctuate due to
KIBOR (Karachi Inter-Bank Offered Rate) changing the rates. Applicable rates
are 3.5% + KIBOR for salaried persons and 4.5% + KIBOR for self employed
professional or businessman. The loan is paid back in installments for the tenor
between 3 to 20 years.

13
 UBL Drive is a car financing product which is available for all new and used cars
both local and imported. Loan issuance maximum limit is Rs. 5 Million.
Repayment is done between one to five years. Salaried person who has a
permanent job, salary of Rs. 35,000 per month and age between 21 to 60 years is
eligible for the loan.

Card Products:
Following are some of the card products provide by UBL.

UBL Wiz is the first prepaid debit card of Pakistan. It can be used locally and
internationally where Visa and MasterCard are accepted. It can be used for online
shopping and shopping at outlets and withdrawal of cash at ATMs. Minimum
balance per card is Rs. 200,000. Minimum online shopping is for Rs. 100,000 per
day and ATM withdrawal of Rs. 40,000 per day. Card can be reloaded through
UBL ATM, UBL Omni Dukan, UBL Netbanking and through contact center if
saving or current account is present in UBL.

UBL Visa Mega Wallet Debit Card is the product issued to the existing or new
account holders, any customer with a UBL Premium Debit MasterCard can also
apply for UBL Visa Mega Wallet Debit Card. It can be used in Pakistan and all
around the world where Visa and MasterCard are accepted. Cash withdrawal from
ATM is Rs. 40,000 per day and shopping limit is of Rs. 100,000 per day.

UBL Credit Card 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. E-statements and SMS alerts are send to the
customer.

14
 UBL Premium Debit MasterCard is also a worldwide recognized card with the
acceptance of MasterCard. Highest transaction limit for this card is per day Rs.
400,000 per day, which includes ATM withdrawal of Rs. 200,000 per day and
point of sale (POS) transactions or internet shopping of Rs. 200,000 per day.

Omni – Branchless Banking:

UBL Omni is a product which is available for every citizen of Pakistan in the
reach of UBL Omni Dukan. Dukan which are selected by the bank for this
product are present in more than 900 cities of Pakistan. This product has
overcome the limitation of banking services and made them available to the rural
and urban areas. Any person with CNIC and a mobile number can open up this
account. The mobile number of the customer becomes his bank account number.
Omni account can also be opened with Omni mobile app which can be
downloaded by the customer. UBL Omni account provides a variety of services
which includes cash deposit and withdrawal, utility bills payment, receiving or
sending of money, postpaid mobile bill payment and many more. An ATM card is
also issued to the Omni account holders which can be used anywhere in Pakistan.

UBL Netbanking:
UBL Netbanking is an internet banking portal which allows its account holders to
manage their bank accounts from anywhere in the world. This service is available
for 24/7 for all the clients. Bank holders can view their deposit, credit card and
loan accounts. Online shopping, bills payment both utility and phone, funds
transfer, investment in UBL funds etc. can be done with UBL Netbanking. This
service can also be availed on the smart phones by downloading the Netbanking
app.

UBL Online:
UBL Online is an electronic Banking system which allows its customer to access
and see the information of their bank account anytime and anywhere from the

15
 world. It provides statements of account, account balances and transaction history
of the bank account.

UBL Go-Green:
UBL Go-Green is an initiative step taken by the bank to protect its surrounding
environment specially trees. The purpose of this service is to use less paper and save
trees. Instead of paper, the information can be received on the mobile phone or
computers. It provides:

UBL Go-Green E-Statement allows the customers to receive their bank account
statement anywhere in the world. The statements are sent to the e-mail address
provided by them on daily, weekly, monthly, quarterly and semi annually basis.

UBL Go-Green Merchant Acquiring is the service which is provided to the

businessman and merchants. This service accepts payments from the internet
through the website of clients and secures them. Anyone can pay for the
merchants through the Visa or MasterCards, debit or credit cards.

UBL Go-Green SMS Alerts are sent to the customer whenever cash deposit, cheque
deposit/withdrawal, cash transfer, ATM withdrawal and funds transfer and POS
transactions are made. The service is provided on the registered mobile number
given by the customer.

UBL Ameen:
UBL Ameen offers Islamic banking services and products which are designed
according to the Shariah Standards for the demands and needs of the customers. It
provides Retail Banking, corporate banking and UBL Ameen Drive Car Financing
products and other services.

UBL Ameen Retail Banking Products:

Some of the products are discussed below:

16
Ameen Asaan Current Account can be opened with Rs. 100. All the funds receive
in this account are on the basis of Qardh (borrowed amount) and will be only used
in Shariah compliant businesses. No minimum or maximum limit is applied on
the account.

Ameen Asaan Saving Account is an account which can be opened with Rs. 100.
Funds received in this account are treated on the basis of Mudarabah and used in
Shariah compliant business. No minimum balance is required. Profit is calculated
on the monthly average balance and paid semiannually.

Ameen Minor Saving Account is designed for the children under the age of 18
years. Funds are accepted on the basis of Mudarabah and used in Shariah
compliant businesses. Profit is paid monthly and calculated on the basis of daily
average balance. No limit on number of transactions and minimum balance.

Ameen Certificate of Islamic Investment is an investment product which gives

profit payment options on a fixed deposit certificate. There are three profit
payment options, (i) at the time of maturity option in which certificate purchased
should have a minimum amount of Rs. 10,000 and for the time period of one
month to 8 years, (ii) bi-annual payout option (July and January) in which
certificate purchased should have a minimum amount of Rs. 50,000 and for the
time period of one, three, five and six years, (iii) monthly payout option in which
certificate purchased should have a minimum amount of Rs. 50,000 and for the
time period of one, two, three and five years.

UBL Ameen Drive Car Financing is a diminishing Musharakah product in which

bank and the customer buy the car in joint ownership. The customer makes an
agreement with the bank to pay the rent to the bank for the usage of the car and
some of the principle amount to gain the ownership of the car. It is available for

17
 all the new and used cars of local or international brand and also for the imported
cars. Any salaried person with Rs. 35,000 monthly pay, age between 21 and 60
years can apply for this. While businessman can apply for this product is their
monthly income is Rs. 50,000 per month and age between 21 to 65 years. The
rental or payment period is between one to 5 years.

Other Retail Product:

Some of the other products include insurance products, payroll disbursement product etc.

UBL BetterLife-Bancassurance EFU Life provides insurance products to its

customer by partnering with the EFU insurance company, which includes UBL
BetterLife Child Education Plan, UBL BetterLife Marriage Plan, UBL BetterLife
Savings Plan, UBL BetterLife Retirement Plan and UBL BetterLife Takaful Plans.

UBL Pay Partner is an electronically managed payroll disbursement system which

is available for the organization having a limit of 50 numbers of employees
minimum. The salary of employees can be disbursed into UBL account or
accounts at other banks.

Hamrah is rupee traveler’s cheque which is offered in denominations of Rs.

10,000 and Rs. 5,000. These cheques have speciall Coded printing and a Rainbow
Effet for security. Theses cheques are available for all citizens, an account with
UBL is not necessary.

Agricultural products:
UBL offers agriculture based financed products, which includes financing for the
production of major or minor crops, development of land, purchase of equipment and
machinery and livestock. There are two basic categories of agriculture loans, farm loans
and non-farm loans.
Farm Loans includes production loans and development loans.

18
Production loan is available for major and minor crops in Pakistan. It is issued to
the farmers to get agricultural inputs like seeds, fertilizer, sprays etc, minimum
amount for the loan is Rs. 30,000 and can be changed according to the farmer’s
needs.
Development loan are financed for land improvement, tube wells, cold storage
etc. Minimum amount for loan is Rs. 30,000 and can be increased.
It is also issued for the tractors, mini trucks etc. which is issued on Rs. 100,000 as
minimum limit and Rs. 1,500,000 as maximum limit.

Non Farm Loans includes livestock financing and fisheries financing. In livestock
financing, loan is issued for dairy farming, meat farming, construction of sheds
etc. Minimum amount for loan is Rs. 50,000 and maximum limit according to the
need.

19
 Experience as an Internee
I worked as an internee in the UBL branch KNC Chashma, Mianwali, branch code 1182. I
learned about the basics of the working operations and processes of the bank. The branch has
following working departments.

Cash Department

Clearing Department

ATM Management Department

Customer Service Department (Including Account Opening Department)

Cash Department:

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, cheques

Telegraphic transfer, demand draft and pay-order

Cash payments are made against payment slips, cheques, pay-order and demand draft.

In both of the cases, while paying or receiving the cash, the instruments are checked and verified
by the officer. Instruments are also checked if they are past time 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

20
 Account holder’s name

CNIC number

Signature of bank officer and depositor

Contact number

Amount to be deposited in both words and figures

A copy is given to the depositor after the deposition of cash.

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 cheques, demand draft, pay order, traveler’s cheque. Clearing is made
in two ways

Inward clearing 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 account s 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 is the 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

21
 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 back)

Clearing stamp

Other items necessary for clearing are, date, signature verification and amount in both igures 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.

ATM Management Department:

ATM management department mainly focuses on the functioning of the ATM machine, cash
requirements and security. ATM manager checks the cash outflow from the machine and refill the
machine when the cash falls than a specified limit. Every day before closing, the cash balance in
the ATM is checked and refilled, so that the machine will work overnight. Filling of the ATM
machine is done by getting cash from the bank vault through debit voucher which is for the bank
use only. The debit voucher for the issuance of cash for ATM from vault is signed by two
authorized persons so that any misdealing will be avoided. Date, amount and signature of the
authorized persons are required.

22
Customer Service Department (Including Account Opening Department):

Customer service department handles the customer and tries to solve their problems and help
them. This department also performs the functions of account opening. The account opening
procedure is done in following steps:

First the account opening form is filled which should be written neat and clean, no over writing
or cutting should be made. The information filled should be easily readable.

The customer is offered with different products and according to his needs and requirements he
selects the product which is suitable for him. After the selection of the product the account
opening form is filled.

First the title of account, date, currency of the account is written. Whether the account will be
single or joint account is decided according to the customer’s needs.

Now the customer’s personal information is filled, his name, his father’s name, gender, marital
status, date of birth, occupation and nationality is noted. Any proof of its residence is needed.

The documents needed are CNIC, and signatures of the customer on the signature specimen card
provided by the bank. A deposit slip is also filled for the initial deposit in the account. In case of
shaky signatures or illiterate person, customer’s photographs are also required.

A key or secrete word is also needed, which is a minimum six character word. The secrete word
is preferred to be mother’s name of the customer. This word adds a security to the account
because very few people know the name of the mother.
Other documents are required for other specified products, like for a businessman to open
an account his income statement ns other documents are required and for a pensioner a document
called life certificate is required with other documents.

Next of kin is also mentioned in the account opening form so that is case of any mishap the
account information is shared with the next of kin person.

23
SMS alerts, debit card, cheque book, credit card, locker, e statement and other services are filled
in the account opening form.

Then a part of the account opening form is specified for the bank. There is a section called Know
Your Customer. Questions are asked from the customer, his/her source of funds etc. and then the
verified data is transferred into the system. Account number is allotted to the applicant’s account
and account is opened.

24
Critical Analysis of UBL

25
26
 +7.15% +10.03% +18.89%

+7.95% +1.81% +40.02%

+11.81% +25.69% +9.12%

-12.22% +40.13% -42.42%

+25.35% +208.43% +29.63%
+11.24% +17.65% +7.01%
-100.00%

-26.99% +1035.90% -67.62%

+15.84% +111.03% +53.36%
+3.08% +1.38% +21.67%
+12.58 +27.34% +7.47%

+5.23% +13.16% +23.57%

+2.38% +11.64% -2.01%

+14.98% +14.18% +16.16%

+8.76% +11.55% +6.84%

-19.07% +14.73% +30.54%

+7.54%
+1.66% +11.69%
+23.33% +18.74% +7.68%

-78.76% +451.43% -60.37%

-2.32% +18.24% +151.64%
+5.23% +13.16% +23.57%
-155% -100.00% +173.92%

+26.79% +54.05% +7731.92%

-43.51% -2.33% -2.47%
Net mark-up / return / interest income
-58.02% +186.12% -16.18%

Provision against loans and advances – net +5.89% +18.56% +20.21%

Provision against lendings to financial institutions - net

Provision for diminution in value of investments - net +0.97% +7.12% +16.15%

3 -3.14% +29.19% +12.86%
Bad debts written off directly -24.43% -16.28% +39.78%
+75.57% +54.84% -31.81%
27

-107.52% +156.56% -550.43%

-29.44% +16.09% -0.78%
+6.11% +10.92% +9.99%
Net mark-up / return / interest income after provisions

Non mark-up / return / interest income

Fee, commission and brokerage income
Dividend income
Income from dealing in foreign currencies
Gain on sale of securities – net 4
Unrealized gain / (loss) on revaluation of investments classified as held for trading 5
Other income 6
Total non mark-up / return / interest income

Non mark-up / return / interest expenses

Administrative expenses +2.99% +7.09% +11.14%
Other provisions – net 7 +196.28% -71.73% -15.09%
Workers' Welfare Fund +9.16% +26.59% +33.75%
Other charges 8 -65.45% +1838.27% -95.82%

+0.46% +40.30% +30.80%

+24.99% +397.61% +484.83%
+366.21% -261.97% -57.50%
+16.51% +41.81% +25.53%
+3.68% +12.42% +21.76%

+6.27% +10.56% +24.08%

Total non mark-up / return / interest expenses +3.18% +7.14% +10.33%
Share of profit of associates +22.69% -38.21% +8.76%
Profit before taxation

Taxation – Current
-Prior
-Deferred
Total tax
Profit after taxation 9

Earnings per share - basic and diluted

Observations:

28
1. In 2014, markup earned increased due to increase in on loans and advances to the
customer and call money lending to financial institutes. In 2015, interest earned on loans
and advances to customers. In 2016, interest on investment increased due to which
markup earned increased.
2. Markup expense increased in 2016 due to increase in securities sold under repurchase
agreements. In 2015, the expense increased due to increase in the expenses on deposits
and securities sold under repurchase agreements. In 2014, interest expense on deposits
increased.
3. Charges for the year of net provision for diminution in value of investments increased in 2014
due to which the provision also increased. In 2015 charges for the year again increased. In 2016,
same reason caused increase in the provision.

4. Net gain on sale of securities decreased in 2014 due to decrease in federal government
securities. While in 2015 federal securities increased and in 2016 they increased again.
5. In 2016 loss occurred due to decrease in Pakistan investment bonds, ordinary shares of
listed companies and term finance certificates. In 2015 it increased due to increase
Pakistan investment bonds and ordinary shares of listed companies. In 2014 it decreased
due to huge decrease in ordinary shares of listed companies.
6. In 2016, other income decreased due to decrease in income from dealing in derivatives
and net gain on trading liabilities. In 2015, gain on sale of non banking asset increased. In
2014 other income increased due to increase in charges recovered.
7. Other provision in 2014 decreased due to decrease in impairment loss on non-banking
assets acquired in satisfaction of claims. In 2015 it further decreased due to decrease in
provision against Ijarah assets and other provisions. In 2016, it increased due to increase
in net provision against other assets.
8. Other charges decreased in 2014 due to decrease in penalties imposed by the SBP. In
2015 it increased due to increase in penalties imposed by the SBP and other charges
decreased again due to the same reason as in 2014.
9. Profit after taxation increased but at a slower pace due to increase in deferred taxes in
2016. In 2015 overseas and domestic taxation also increased. While in 2014 taxation
increased in domestic region.

29
Vertical Analysis of Balance Sheet
2016 2015 2014
ASSETS
Cash and balances with treasury banks 8.03% 7.65% 6.40%

Balances with other banks 1.94% 1.86% 1.86%

Lendings to financial institutions 2.14% 2.11% 1.98%

Investments 50.44% 50.30% 43.94%

Advances

Performing 31.88% 32.14% 38.49%

Non-performing - net of provision 0.48% 0.65% 1.04%

32.36% 32.79% 39.53%
Operating fixed assets
Deferred tax asset – net 2.36% 2.47% 2.82%
Other assets
Total Assets
2.72% 2.82% 3.48%
100% 100% 100%
LIABILITIES
Bills payable
Borrowings 0.71% 0.90% 0.81%
Deposits and other accounts 12.39% 11.05% 4.5%
Subordinated loans Liabilities against assets subject 74.97% 75.36% 80.50% to
finance lease
Deferred tax liability - net
Other liabilities Total Liabilities 0.0002% 0.0003% 0.00004%
0.32% 0.30% 0.18%
1.77% 1.92% 2.38%
REPRESENTED BY: 90.15% 89.53% 88.37%
Share capital
Reserves
Unappropriated profit
0.74% 0.74% 0.74%
Total equity attributable to the equity holders of the 2.56% 2.8% 3.15%
bank 4.15% 4.03% 4.44%

Non-controlling interest 7.45% 7.66% 8.63%

0.25% 0.35% 0.39%

Surplus on revaluation of assets - net of deferred tax
7.70% 8.01% 9.01%
30

2.15% 2.46% 2.61%

9.85% 10.47% 11.63%
Total Liabilities and Share capital 100% 100% 100%
Observations:
In year 2014, investments in the assets made 43.49% of the total assets because of the increase in
investment in Federal securities. Cash in hand was decreased so it made 6.4% of the total assets.
Advances made 39.48% of the assets, in which non performing loans had a percentage of 1.04%.
Operating fixed asset is only 2.82% of total assets. On the liability side of the balance sheet,
deposits and other accounts made 80.50% of total liabilities. Borrowings made 4.5% in
liabilities.

In 2015, investments in the assets made 50.30% of the total assets because of the increase in
investment in Federal securities. Cash in hand was increased so it made 7.65% of the total assets.
Advances made 32.79% of the assets, in which non performing loans had a percentage of 0.65%.
Operating fixed asset is only 2.47% of total assets. On the liability side of the balance sheet,
deposits and other accounts made 70.36% of total liabilities. Borrowings made 11.05% in
liabilities, borrowings increased due to repurchase agreement borrowings.

In 2016, investment in the assets further increased to 50.44% due to increase in investment in
Federal securities. Cash in hand was increased so it made 8.03% of the total assets. Advances
made 32.36% of the assets, in which non performing loans had a percentage of 0.48%. Operating
fixed asset is only 2.36% of total assets. On the liability side of the balance sheet, deposits and
other accounts made 79.97% of total liabilities. Borrowings made 12.39% in liabilities,
borrowings increased due to repurchase agreement borrowings.

Vertical Analysis of Profit and Loss Account

2016 2015 2014

Mark-up / return / interest earned 80.19% 80.47% 80.06%

Non mark-up / return / interest income

Fee, commission and brokerage income 11.33% 11.74% 12.41%

Dividend income 1.79% 1.94% 1.69%

Income from dealing in foreign currencies 1.54% 2.13% 2.89%

31
Gain on sale of securities - net 4.42% 2.63% 1.93%

Unrealized gain / (loss) on revaluation of investments 0.03%

classified as held for trading 0.001% 0.01%
Other income 0.72% 1.07% 1.04%

Total non mark-up / return / interest income Total 19.81% 19.53% 19.94%
income earned (interest and non interest) 100.00% 100.00% 100.00%

33.56% 32.52% 35.79%

0.49% 2.41% 0.49%

0.01% 0.15%

0.70% 0.58% 0.42%

0.08% 0.14% 0.16%
1.25% 3.13% 1.23%
34.81% 35.65% 37.03%

27.37% 27.84% 29.26%

0.18% 0.06% 0.25%
0.73% 0.69% 0.62%
0.05% 0.17% 0.01%
28.33%

32
 • Promotions are made on the yearly basis without considering the output and performance
levels.

• Low number of workforce in a branch which is located in highly populated or active area.

 No separate training center for the up to date training of the workforce.

• Security system in most of the branches is not highly secure, i.e. bank robberies in
Karachi.

Opportunities
• Growing opportunities in the real estate sector and other areas of the market, the bank
should try to grasp those opportunities by making investments in different sectors.

• Expansion of network of branches in the world.

• Enter into new market segments by developing new products like student loans.
• Increase the product rage for the attraction of new customers.
• Try to manage and reduce the administration expenses to increase profit.
• Increase number of branches in highly populated areas to achieve more customers.

Threats
• New banks are starting to operate in Pakistan may oppose as a threat to bank.
• Lack of up to date training of workforce might cause the bank to lose its potential
customers.

• Lower level of employment will cause a decrease in the customer base due to decrease in
the living standards and living income.

Conclusion

UBL is the bank showing high growth in the market. Since 1991 it is showing positive growth
and even in the worst economic conditions, the bank managed to continue its operations. UBL

33
profit has increased by 4% over the prior year. UBL Omni is growing at a fast rate through
42,000 agents in the whole Pakistan. Net provision against interest income has decreased by 58%
with respect to last year. Total assets grew up to 12% in accordance with the last year and
deposits grew up to 11%. 2021 was a good year for the bank and the bank managed to maintain
its position in the market. Efficient management team and high level of dedication to their work
has made the bank to achieve new heights. Bank has variety of products and services from which
every customer and potential customer can take advantage of and continues to give quality
products and services.

34
Recommendations
Overall performance of UBL is quite good and the bank is showing growth in the market and
continues to maintain its high quality status. Some of the recommendations are made for the
further improvement in the baking procedures.

• Time consuming documentation procedures should be restructured to minimize the time

required by them in the processing, paper work should be minimized as much as possible
and software should be introduced to help the employees in working.

• A training center for the employees should be made so that they can learn up to date
knowledge and techniques. Training of the employees will help in the better customer
services and more customers to the customer base of the bank.

• Software for the banking activities should be updated every year, though bank has a good
financial position which can afford the updating cost of the software. The updated
software will increase the efficiency of the banking activities and cost reduction.

• Bank should market its products using social media and internet. Most of the products
can be very attractive for the potential customers if they are marketed properly like UBL
Omni is a very attractive product for any person who knows how to use a cell phone so it
can be spread through marketing which will increase customer base

• UBL has high administrative cost which is 74% of the income before taxes. So the bank
should take measures to reduce this cost and re define its policies and procedures to
minimize administrative cost.

• UBL should make fresh recruitments on the basis of merit not on the basis of referral.
And the promotions should be made on the output level and performance comparison
basis between employees. Proper and clear job duties should be assigned to every
employee so that the work is divided equally and no employee is overburdened with
work.

References and sources

UBL Annual Report 2022

35
UBL Annual Report 2014

UBL Annual Report 2015

UBL Financial Statements Dec 2022 (Consolidated)

http://www.ubldirect.com/Corporate/index.aspx

https://propakistani.pk/2009/07/29/ubl-goes-live-with-oracle-applications-to-modernize-
itsbanking-operations/ http://www.google.com.pk

36