Fundamental analysis of a business involves analyzing its
financial statements and health, its management and competitive
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INTERNSHIP REPORT ONUNITEDS BANK LIMITED
Internship Report submitted to the Faculty of Master of Business
Administration in Partial Fulfillment of the Requirements for the
Degree of Master of business Administration.
Program & Session MBA (Finance)
UNIVERSITY OF GUJRATDate of Submission
Name of Program Coordinator ___________________Signature of
Program
DEDICATION:
I dedicate this work of mineto myTeachers, My Parents and to all
My Friends, who truly help and guide me in completing this
project.
Preface:
With the changing world scenario, the need for effective and
efficient managers has increased manifold. The organizations
require managers with analytical and problem solving abilities
enabling them to exploit the opportunities presented. Today, the
most important pre-requisite for managers is to have well-developed
communication skills so that they not only are able to communicate
within the organizations but also with the groups outside the
organization, customers, suppliers, government and the
community.The development of these skills not only requires strong
theoretical knowledge but also a practical experience. Although the
six week internship program has not fully developed these abilities
but it has at least given me a feel of the market. It has, to some
extent, enabled me to see the relevance and applicability of
various tools and theories of management. Moreover, this training
has created an awareness of the various career opportunities
available in the market as well as the tough competition we, the
students of business administration, have to face in securing
jobs.This report thus represents in a handy and systematic manner,
the details of my internship program at UBL. I have tried to write
this report using the most accurate and up-todate information and
hope that it will give the reader a brief and meaningful idea about
the organization.
Acknowledgment:
By the Grace of Almighty, the most Merciful, the most
Beneficial, I'm today submitting my internship report, at the end
of my first pragmatic experience and I'm glad to have it with UBL,
where you come first, only if you're the customer. Thirst of
learning is inside you, and whatever the environment, if you're
willing to learn, you do. At UBL, I had a new, challenging, yet a
perfect environment to learn. My parents' prayers and their
teachings were always with me and hereby I will like to take this
opportunity to show my gratitude to all those who made my
internship an adventurous outwit.Here I am, from more professional
and rather corporate environment of UBL main branch Lala Musa. I
never knew what it all going to be. As I enter the branch, it took
me a minute to realize that the person sitting in the half
fortified walls is the manager. Maybe I was expecting him in a
glass sheeted room. At a glance, I grasped the interesting
personality of the manager and today at the end of my internship;
hes one of the persons Ill always remember. Sir whatever I learnt
from you is always going to be respected, no matter whatever
business field I choose. Those tips are always in my memory bag.
Despite of the most hectic schedule, Sir Ghulam Abbas helped me so
much. I'm really grateful to you sir for clarifying my concepts and
making me learn from your experience. Whatever I learnt from you
will definitely help me in my upcoming study and the professional
life ahead. Thank you so much for being so co-operative and so
helpful every time.In the end, I'll like to thank all my other
colleagues, Mr Mian Ijaz Ahmad, Mr. M.Saleem. and all my other
fellow internees, here and in LalaMusa branch, for their
unconditional support and help in making me learn in a good
environment.
Table of ContentsTITLE PAGE
Dedication
Preface 2. Acknowledgement3. Table of contents4.Executive
summery of the internship5.1 Introduction Purpose10The purpose to
do the internship report10Scope11Objectives115.2OVERVIEW OF THE
ORGANIZATION115.2.1BRIEF HISTORY135.2.2NATURE OF THE
ORGANIZATION...135.2.4PRODUCT/SERVICE LINES15(1) ADVANCES15UBL
Drive152.1- CURRENT ACCOUNT162.2 - SAVING ACCOUNT162.3 - FIXED OR
TERM DEPOSITS17(3) REMITTANCE.....17
(4)MISCELLANEOUS.17
UBL Wallet VISA Launch184.3 - ONLINE BANKING194.4 - ATM20PEST
analysis:20Political factors21ECONOMIC factors21SOCIAL-Cultural
factors21TECHNOLOGICAL factors225.2.6 Contribution of an
organization towordeconomic development..22
5.3.1Organizational Hierarchy Chart23Management
Hierarchy235.3.2Number of Employees235.3.3MAIN OFFICES24HEAD
OFFICE24REGIONAL HEAD QUARTERS24ORGANIZATIOAL STRUCTURE AT HEAD
OFFICE LEVEL255.3.4.INTRODUCTION OF DERPARTMENT .25Consumer
Banking25Human Resource Department25Leaves Prior to Retirement
(LPR)26Finance Department26Marketing Department26Information
Technology Department26Audit and Inspection26Agricultural
Loans27Treasury & Capital Markets27Corporate
Banking27Investment Group28Commercial Banking285.3.5 ...COMMENTS ON
THE ORGANIZATONAL STRUCTURE295.4Internee Work295.4.1 Introduction
of Branch295.4.2 Detail of Supervisor305.4.3 Weekly time
table30Working activities during Internship311st Week312nd
Week353rd Week364th Week385th Week406th Week415.4.4 Departments in
United Bank Ltd LalaMusa branch:425.4.6 Summary of the
learning455.4.6.1 Skills and Qualifications455.4.6.2
Responsibilities during Internship465.4.6.3 Influence on my Future
Career475.4.6.4 Internship Activities are correlated with Classroom
Knowledge476. CONCLUSION OF THE REPORT476.2General observations
about the
sector48STRENGTH48WEAKNESSES49OPPORTUNITIES50THREATS517.RECOMMENDATIONS518.REFFERENCE55
ANNEXURE A57HIERARCHAL STRUCTURE OF UBL AT57HEAD OFFICE
LEVEL57HIERARCHAL STRUCTURE OF UBL AT BRANCH LEVEL58
EXECUTIVE SUMMARY:The banking sector in Pakistan comprises of
the following types: State Bank of Pakistan, Commercial Bank of
Pakistan; Exchange Banks, Saving Banks, Cooperative Banks,
Specialized Credit Institutions. The S.B.P. is the Central Bank if
the country and was established on 1st July, 1948.On November 7th
1959 United Bank Limited appeared on the banking horizon in
Pakistan and started operations with its first branch namely McLeod
Road now I.I Chundrigar Road at Karachi. Today UBL has 1056
Domestic and 15 Overseas Branches.UBL was nationalized in 1973 but
it is privatized in 2002 as Govt. handed over the management of
UBL, the third largest party of the country, to the successful
bidder -Consortium of Abu Dhabi Group (UAE) & Best way Holding
Limited (UK) as they have purchased 51% shares and have elected
H.H.Shaikh Nahayan al Mubarik as Chairman UBL. On May 18th 2004 Mr.
Atif Bokhari was appointed as anew CEO of UBL.In Deposits
department actual relationship is started with the bank , that
relationship is in the form of deposits or the accounts that are
opened in the bank. At UBL, customers can deposit in the form of
current, saving, call, term and fixed deposits. Main difference
between current and saving is of the profit that is provided only
on saving account to the customer. Preparation of LC on behalf of
importer for the exporters and its bank is the main activity that
is perform in the department.With their step in the field of
customer financing like house and car financing and their services
of Hamah Rupee Traveler check, UBL Wallet (ATM card) and their
online system of UBL-ONLINE it has been viewed that they will make
tremendous achievement in the days to come. In my view UBL has
faced some hard time but after its privatization and its response
to the changes in sector they will achieve what their ultimate goal
is. PART-1
INTRODUCTION, OVERVIEW OF ORGANIZATION AND ORGANIZATION:
STRUCTURE:
5.1 INTRODUCTION:For the students of the Master of Business
Administration at University of Gujrat there is essential to submit
the internship report. It is first chapter of our report which
tells the purpose of the study, scope and objectives. I did my
internship requirement in United Bank branch Tanda. The experience
to work in that bank was very good. I try my best to expand my
knowledge and put my study experience in the banking field.
Although time was to short but I try my best to learn up to the
standard.
VISION STATEMENT:To provide quality services to itscustomers
throughadoption of bestpractices and full exploitation of I.T
advancement, culminating at a leading position amongst itspeer
banks
UBL is "A World Class Bank Where You Come First"
MISSION STATEMENT:
"UBL Bank's team of committed professionals is dedicated to
maintaining long term customer relationships through outstanding
service and convenience."
Purpose: The purpose to do the internship report was to explore
the learning of my practical field. The main purposes are: To know
the banking operations. To improve the report writing skills. To
gain the experience that will be helpful for me in the future. To
apply the best methodology procedure. To know what sort of changes
IT brings in managerial activities. Scope:As an internee in United
Bank Ltd. the main focus of my study research was on general
banking procedures in one of the branches of UBL. These operations
include remittances, deposits, advances and foreign exchange.
Similarly different aspects of overall of UBL are also covered in
this report. So this study from the relevant department will help
me in my practical and professional life. Objectives:The object of
this report is to know the maximum working of the bank which
includes: To objectively observe the operations of United Bank of
Ltd. To make recommendations or implementation plans for the
improvement of the Operations of the United Bank. To know who to
deal with the customers. To know that who the companies works in
the competitive environment. To learn the changing environment. To
gain the knowledge this will be helpful for me in the professional
field. To give the banking services to every individuals. To
understand the customers needs and wants. To convince the people
for more relationship. To run the business in the effective way and
lower its cost. To create and manage the value in customers
mind.5.2OVERVIEW OF THE ORGANIZATION:United bank was established in
June 1959 and the company was registered on July 24, 1959. United
Bank Limited started the operations on 7 November 1959 with its
first branch namely McLeod Road now I.I Chundrigar Road at Karachi.
On 9th November 1959 the Gazette of Pakistan notified and included
UBL in its list of scheduled hanks operating in Pakistan.Some Key
information about the UBL
Date EstablishedNovember 7, 1959President & CEOMr.Atif R.
BokhariBranches 1079 domestic, 17 overseas branches, across the
nation at 350+ online branchesEmployees 10,000
EmployeesRepresentative OfficeTehranAssociated CompanyOman United
Exchange Company, MuscatOff shore Banking Unit Export Processing
Zone, EPZ Branch. Karachi, PakistanHead OfficeState Life insurance
Corp. Building # 1 I.I.Chundrigar Road, Karachi, Pakistan
Branches in Overseas: United States of America Qatar UAE United
Kingdom Bahrain Republic of Yemen Zurich Off Shore banking Unit
5.2.1BRIEF HISTORY:United bank was established in June 1959 and
the company was registered on July 24, 1959. United Bank Limited
started the operations on 7 November 1959 with its first branch
namely McLeod Road now I.I Chundrigar Road at Karachi. On 9th
November 1959 the Gazette of Pakistan notified and included UBL in
its list of scheduled banks operating in Pakistan. Today UBL has
1079 Domestic and 17 Overseas Branches.The Bank continued its
operations as private banking company until 31st December 1973 when
it was nationalized along with other banks operating in the country
and other two Banks namely Pak Bank of former East Pakistan and
Commerce Bank Limited were merged with UBL.On October 19th 2002,
biggest event occurred in the history of UBL, when it was
privatized. The government handed over the management of United
Bank Limited, the third largest bank of the country, to the
successful bidder - Consortium Of Abu Dhabi Group (UAE) & Best
way Holding Limited (UK). Privatization Minister Altaf M. Saleem
and Best way Holding, Sheikh Nahayan Mubarak Al Nahayan signed the
sale agreement for the transfer of 51% shares at a ceremony. This
event was declared as a "New Journey for UBL".On May 18th 2004, Mr.
Atif Bokhari took over the charge as new Chief Executive Officer of
United Bank Ltd from Amar Zafar Khan, who served UBL for more than
seven years. In the view of highly impressive growth and
development achieved during its 46 years of experience, UBL has
come to be accepted as one of the most progressive and dynamic
components of the banking industry in Pakistan.5.2.2NATURE OF THE
ORGANIZATION:
United Bank Limited is one of the largest commercial bank in the
country. The nature of the organization is public service-oriented.
In the view of highly impressive growth and development achieved
during its 46 years of experience, UBL has come to be accepted as
one of the most progressive and dynamic components of the banking
industry in Pakistan, A Bank, like the society it serves should be
dynamic as banking is about people customers with their needs and
opportunities and staff with skills, experience and resources.
Reward, Honors of UBL
The Deputy Chairman of the UBL is Sir Mohammad Anwar Pervaiz
(OBE) who is the leading role of Best way Group. This group has
started its business in England and emerges in the top ten large
business entities of England. This group recently installed the
Cement Plant of Pakistan in Tehsil Chowk Saidan Shah District
Chakwal. Sir Mohammad Anwar Pervaiz got the following Awards in the
owner of his business achievements: Order of British Empire (OBE)
(1992) British Award Knight(1999) From British Queen Elizabeth
Hilal-e-Pakistan (2000) Mir Khalil ur Rehman Husn-e-Karkardgi Award
(2000) Best Businessman Of the Year (2001) Pakistan Life Time
Achievement Award (2003) 5.2.4PRODUCT/SERVICE LINES:The bank
provides its customer various product lines: to cater their need of
investments and other social or business requirements. UBL offer
the following product lines in term of ADVANCE DEPOSITS REMITTANCES
MISCELLANEOUS (1) ADVANCES:"The lending function of the banking for
the production purposes is called Advances".In banking sector
advance is the promise that carries the repayment of the original
amount plus an interest on the principal amount, extended as
advance. The credit/advance is given on the base of the
confidence/trust and on the belief that the customer will be able
and willing to pay on the demand or at some future time. URL is
expanding its Advances product portfolio to serve public financing
needs better.UBL Drive:UBL Drive is not just a car loan; it's a
financing facility. UBL Drive is a unique auto-financing product,
which offers features, options and flexibility unmatched by any
other bank.UBL Drive allows customers to drive away in their own
car by making a down payment of just 10% and to top that with low
monthly installment. UBL Drive offers the option to pay-off loan
amount anytime after the first year of financing without incurring
any extra charges (different financing rates will apply for this
option).
(2) DEPOSITS:Deposits act as a backbone of bank. It is the
lifeblood of every bank. These deposits are source of generating
incomes for the bank and for the general public to meet the
financial needs. The bank accepts the deposits at a low rate of
interest and lends it at higher rate of interest, the difference
between the lending and accepting rate is the source of income for
the bank. Keeping in view the above factors UBL offers the
following type of deposits. 2.1- CURRENT ACCOUNT:Current deposit is
running deposit because, customer can withdraw deposited amount at
any time, whenever he feels need. The customer can withdraw without
any prior notice to the bank. The bank has to pay the cheque
provided within the limits of the account balance. The main thing
is that bank does not pay any kind of interest on current account.
Actually this deposit is for the business purpose. The bank cannot
invest the deposited amount under current account heading, because
of the fear of withdrawal. Bank has to keep with it a higher
reserve ratio to meet the needs of the current account holders.2.2
- SAVING ACCOUNT:Saving Account is an important source of funds for
the bank. The purpose of this account is to attract the small
saving of the general public. Normally workers, schoolboys and
employees of the organizations use the saving account facility. UBL
also provides this facility to the general public against a certain
rate of interest. The new name of this account is now a day is
PLS-Saving Account.UBL offers PLS Savings Account that can be
opened with an initial deposit of Rs.10, 000. The share of profit
is credited half-yearly to the PLS Saving accounts and is
calculated on monthly balance. Depositors can withdraw their
savings by presenting cheques at the particular branch of UBL or
from any online UBL branch anywhere in Pakistan during banking
hours.2.3 - FIXED OR TERM DEPOSITS:Fixed or Term deposits accounts
are the major source of the capital for investment for the bank and
cannot be withdrawn as in case of the current account. The amount
deposited can be received back after a certain specified period of
time. The rate of interest paid on fixed deposits is normally
higher than saving deposits. The rate of interest also varies due
to time period.
(3) REMITTANCE:Transfer of money or equivalent to money from one
branch to another branch of the same bank is called remittance. Now
it has become an easier and safer method both for the client and
banker to transfer their money from one branch to another within
the city or outside City. In case of remittances normally two banks
are involved, are as under: Originating bank branch Responding bank
branch3.1 - MODE OF REMITTANCES:United Bank Limited, uses following
types for transfers of money:1. Demand Draft (DO)2. Pay Order
(PO)3. Mail Transfer (MT)4. Telegraphic Transfer (TT)Demand Draft
(DD):A bank draft is an order instrument issued for payment of a
certain sum of money to a certain person, 'there are three parties
involved: Drawer: Issuing Bank, Drawee: The bank, which the draft
is drawn. Payee: The name of person to whom the payment is to be
made.
(4) MISCELLANEOUS:4.1 - UBL CREDIT CARD:UBL Credit Cards,
Pakistan's 1st Chip Credit Card, which guarantees customers both
enjoyment and high value. It assures customers global acceptability
in more than 22 million establishments worldwide in 130 countries
and in more than 12, 000 outlets within Pakistan.This unique high
tech CHIP guarantees customers security while conducting
transactions within Pakistan and around the world. CHIP based
credit cards have proven to be the most secure way of conducting
credit card transactions globally. UBL Credit Card offers the
following facilities 24 hours a day, 7 days a week. Complete access
to customer card account online including card transactions and
billing statements Chip Rewards Information. Pay UBL Card Bills.
4.2 -UBL WALLET:Moreover, UBL Wallet is now part of the 1 Link and
VISA networks. These allow customers to use their UBL Wallet VISA
across Pakistan at more than 925 ATMs displaying the 1 Link logo
and at more than 900,000 ATMs in 150 countries. It is also
acceptable on the MNET network of ATMs in Pakistan. UBL Wallet VISA
Card will also be acceptable on all local VISA certified machines
displaying the VISA Plus sign.UBL Wallet VISA Launch:After the
success of 1st UBL Cards Electronic Festival, UBL announces with
immense pleasure the 2nd UBL Cards Electronic Festival on 3rd and
4th June 2006 at Pearl Continental Hotel, Karachi. A large
cross-section of respected brands from the electronic industry will
come together under one roof to offer amazing discounts, deals
& free offerings to valued credit card holders.The debit card
facility is being offered in association with the Oryx and VISA
networks, which mean that customer, can use his UBL Wallet VISA to
conduct a debit transaction at any outlet in Pakistan that displays
the ORIX or VISA logos. The Oryx network offers connectivity at
more than 5,000 outlets across the country, whereas customers UBL
Wallet VISA card is also acceptable at 22 million VISA merchant
locations, local and international. UBL 200 plus ATMs are now VISA
certified and are geared up to accept all International VISA Debit
and Credit cards. Now UBL Credit card holders can do cash advances
through our UBL ATMs as well. Facilities: UBL Wallet VISA gives
facility of having up to 9 supplementary cards issued against one
primary card. All supplementary cardholders will be able to conduct
ATM/Debit transactions and will share the transaction limits of the
primary card account. UBL Wallet allows three kinds of instant
funds transfers through UBL ATMs from customer UBL account: Into
any of customer UBL accounts Into any other UBLs account. Into any
other participating 1 Link Bank (through the new UBL Inter Bank
Funds Transfer facility) Enquire about the availability of funds or
simply get a printout of customer account balance.4.3 - ONLINE
BANKING:With UBL's state of the online banking, customers can
access their account from more than 350 branches located in 71
cities across Pakistan. Now UBL enables customers to do all the
following transactions in minutes through designated online
branches. Salient features of online banking are: Cash Deposit
Cheque Encashment Stop Payment Account Statement4.4 ATM:ATM is the
abbreviation of Automated teller machine. ATM is the modern
technology screen touch system. ATM functions on a PIN (Personal
Identification Number) based system, ensuring complete security of
customer transactions.
UNIQUE FEATURES: Your UBL PSO Auto Credit Card offers a host of
unique features and exceptional benefits which makes it the most
rewarding card in town. It offers unparalleled spending convenience
as well as outstanding privileges and rewards. If fuel expenditure
and car maintenance continue to burden your budget then UBL PSO
Auto Credit Card is the perfect solution for you.
SMS Alerts Service Low Balance Transfer Rate 24 Hour Customer
Service Cash Advance Supplementary Cards Buy Today, Pay Later
Travel Accident Insurance5.2.5PEST ANALYSIS:PEST analysis:The
factors that are beyond the controls of the Banks are called the
PEST analysis. These are the macro environment factors that
externally effects the organization that why they are also called
the external factors. These are the political, economic, social and
the technology factors. These are discussed below:Political
factors: High taxation on banking industry. Political Interference
and harassment. Governments policy on the economy Political
stability Change in complexion and composition of Legislatures
Privatization policy and deregulation. ECONOMIC factors: Labor
costs Government Spending Business cycle stage (e.g. prosperity,
recession, recovery) Exchange Rate Mechanism Inflation rate
Interest rates |Government intervention in the free market
Restrictions on Imports Efficiency of financial markets Economic
growth rate Infrastructure quality Skill level of
workforceSOCIAL-Cultural factors: Life Style Changes Adequate
empowerment. Education Social culture (gender roles, etc.)
Demographics Joint living and nuclear families Different Age Groups
Entrepreneurial spirit Class structure Reach of the media to the
populationTECHNOLOGICAL factors: Inadequate computer facilities.
Technology's impact on product offering Lack of networking
facilities ATM network Impact on cost structure5.2.6CONTRIBUTION OF
ORGANIZATION TOWARD ECONOMIC DEVELOPMENT:Banks play an important
role in the economic development of the country. If our banking
system does not meet the economic requirement then how can play a
vital role in our development?According to Professor Berton:"Banks
are the guardian & distributor of money ".In this study, the
primary objective is to analyze the financial position of the bank.
Fundamental analysis of a business involves analyzing its financial
statements and health, its management and competitive advantages,
and its competitors and markets.5.3ORGANIZATIONAL STRUCTURE:The
organizational structure of the organization is conventional, in
1986; the organizational structure of domestic operations of the
bank was reformed and decentralized on the basis of
provinces.5.3.1Organizational Hierarchy Chart:Management
HierarchyPresident
Senior Executive Vice President (SEVP)
Executive Vice President (EVP)
Senior Vice President (SVP)
Vice President (VP)
Assistant Vice President (AVP)
Officer Grade 1 (OG 1)
Officer Grade 2 (OG 2)
Officer Grade 3 (OG 3) Operational Staff
5.3.2Number of Employees:The numbers of employees working in UBL
are Eight Thousand two hundred and fifty four (8254). The staff is
quite efficient and qualified in its respective field. Most of them
are professional degree holders. President 01 SEVP 06 EVP 13 SVP 36
VP 73 AVP 248 OG-1 906 OG-1I 2232 OG-111 47395.3.3MAIN OFFICES:HEAD
OFFICE:State Life Insurance Corp.Building # 1, I.I.Chundrigar
Road,Karachi, Pakistan.REGIONAL HEAD QUARTERS:The new segmentation
of UBL branches on the basis of regions can be looked from the
following: Karachi Hyderabad Multan Faisalabad Sialkot Islamabad
Peshawar Quetta Azad KashmirORGANIZATIOAL STRUCTURE AT HEAD OFFICE
LEVEL:UBL is one of the largest commercial bank. Organizational
structure of UBL is comprised of different departments which are
following and the Organ gram of UBL at head office level is shown
in the ANNEXURE "A" and at branch level is shown in the ANNEXURE
"B"
5.3.4INTRODUCTION OF ALL DEPARTMENTS AT HEAD OFFICE
LEVEL:Consumer Banking:The consumer bank is divided on business
lines based on product offerings. The product teams who encapsulate
the futuristic features, the marketing team who has set a new trend
in the banking industry through catchy taglines in Urdu and the
sales teams, which have broken all sales records, lead these.
Business is further supported by dedicated cross-functional teams
comprising of credit, operations, collections and finance. The
consumer bank's portfolio includes;UBL's visa credit card, which
has the distinction of being the first, EMV chip-enabled card in
South Asia.UBL Address & UBL drive the home and auto loan
products respectively, which captured the bulk of the market share
within the first few months of their launch.UBL cash line (running
finance) and UBL business line (business finance) are the flexible
credit line facilities with competitive mark ups.
Human Resource Department:This Department does all the
activities related to Human Resources (HR) and Personnel Management
like Job Analysis, Job Design, Job Description, Job Redesign, Job
Specification, Recruitment (is the process of finding and
attracting capable applicants for employment through Advertising,
Employee Referrals, Private Placement Agencies etc.), Selection by
written tests and interviews, Orientation, Training, Career
Planning, Performance Appraisal (employee performance and
accountability), Compensation and Protection, Union-Management
Relations etc. Leaves Prior to Retirement (LPR):These are the
leaves at the end of the job period (near to retirement) with pay.
If some employee has the leaves in credit then he or she can avail
that leaves at the end of his or her job. But maximum limit of LPR
is one year. And after these leaves he or she will be automatically
retired.Finance Department:The primary responsibility of Finance
department is to provide reliable, consistent and timely
information to management, shareholders, regulators and internal
business groups to help them take appropriate decisions for
improved performance of the bank.Marketing Department:Marketing
department cover the areas related to the products and services
provided to the customer and other promotional policies.Information
Technology Department:Information Technology (IT) Department is
related with all computer activities like it manage the Central
Data Base (CDB) which is placed in Karachi Head Office of UBL,
where all the daily transactions in all the branches of the country
are up-dated on daily basis. The area of major focus for IT
Department is the building of infrastructure for the launch of the
consumer business.Audit and Inspection:The responsibility of this
department is to audit and inspect the operations of the branches.
This department checks whether the operations are compliance by the
branches in a right way or not. The CCD (Control and Compliance
Department) comes under this department. Audit has a support role
to play by helping line management in achieving their business
goals by ensuring that the operational risks are properly
controlled and kept at minimum acceptable level.Agricultural
Loans:UBL's agricultural loans on easy terms and conditions to
small-scale land owning fanners boost the country's economy and
yield greener harvests. UBL enables farmers to buy good quality
seeds, fertilizers, pesticides and agricultural implements.Treasury
& Capital Markets:This department is interacting with the
market and dealing with Core Treasury Products in the money market
and foreign exchange. The main purpose of the treasury department
of any company is to maintain the liquidity for that company. It is
the case with Banking Industry as well. The treasury departments
have to manage the buffer stock (in terms of cash) of the bank and
they have to maintain the liquidity for giving Advances to their
customers.Treasury and Capital Markets (T&CM) contributed to
over 65% of UBL total returns. This was due to Government Bond
Trading, Equity Trading, Structured Products/Financial Engineering,
Corporate Debt Trading, and Double-Count of revenues. Under the new
management, the T&CM expedited the launch of Pakistan's first
derivative money market product-the FRA (forward rate agreement)
with Quetta Textile Mills Ltd.Corporate Banking:The main objective
of the Corporate Banking is to look after the special customers who
give huge amount of deposits or take higher amounts of Advances,
because a Hub Branch can give the advance more than Rs. 200
million. And the party who needs a loan more than Rs. 200 Million
they have to contact to the Corporate Branch of the UBL.There are
175 to 200 cases of Advances in the Hub Branch. But in the
Corporate Branch there are hardly 15 to 20 cases of Advances due to
so much high amount of Advances. And these types of customers are
called corporate customers. These types of customers need special
care and services as well.Investment Group:This department supports
the Corporate Department. When a company wants to install a new
project and require the finance from the bank then it is the
responsibility of Investment Department to analyze the targets of
the project and success or failure of the project. If it is
feasible to loan that party then they pass the loan otherwise not.
This is called the Project Finance. UBL's Investment Banking Group
continues its leadership position in providing innovative and
unique financial solution to its clients by anticipating their
changing requirements and developing new products and services. UBL
(Investment Banking Group) IBG offers full spectrum of services.
Commercial Banking:Banking Companies Ordinance 1962 defines the
term banking as following "Accepting for the purpose of lending or
investment of deposits of money from the public repayable on demand
or otherwise and withdrawals by cheque, draft, order or
otherwise."The commercial banking has been developed into an
important sector economy. UBL is a service-oriented organization,
which performs numerous functions. The functions, which a
commercial bank performs, can be divided into following categories.
Basic Functions Agency Services Functions General Utility
FunctionsThe commercial bank has 1000 plus branches which are used
as distribution outlets for different business line. UBL also
participated in commodity financing and continued its focus on
Agriculture loans. Commercial banks have been the most effective
mobilizes of savings and have been providing short-term
requirements of working capitals to trade, commerce and
industry.5.3.5COMMENTS ON THE ORGANIZATONAL STRUCTURE:Conventional
organizational structure is being followed in the organization to
cater the business needs. Although this structure takes more time
in decision-making compared with the flatly structured
organizational setup. However, due to maximum availability of
higher-level management, decisions are made fairly fast and
timely.
PART-11INTERNEES JOB
5.4 Internee Work: History of Bank:
The idea of banks began as long ago as 1,800 BC in Babylon. In
those days moneylenders made loans to people. In Greece and Rome
banks made loans and accepted deposits. They also changed money.
(In the Bible Jesus famously drove the money changers out of the
temple in Jerusalem).However with the collapse of the Roman Empire
trade slumped and banks temporarily vanished. However banking began
to revive again in the 12th and 13th centuries in the Italian towns
of Florence and Genoa.In the 16th century a German family called
the Fuggers from Augsburg became very important bankers.
5.4.1 Introduction of BranchI have done my internship in United
Bank Tanda Branch. It is located on the Main road Tanda. I start my
internship from the date 10th july, 2013, and the completion date
of my internship is 19th august, 2013. This is the Branch hierarchy
of United Bank Tanda Branch
Branch manager
Operational Manager
Advancing InchargePeonTellerGeneral Banking Officer
5.4.2 Detail of Supervisor:Ghulam Abbas is my supervisor who is
the Operational Manager of the United Bank. He is very nice
person.
5.4.3 Weekly time table:
WeeksDateWorking ActivitiesSupervisor
1st Week10-july-2013 to 16-july-2013Account Opening, types of
accountBranch Manager Mr. Ghulam abbas
2nd Week16-july-2013 to 22-july-2013Types of AccountGhulam
abbas
3rd Week22-july-2013 to 29-july-2013Deposit, Transfer and
WithdrawalsOperational ManagerMr. M Tariq
4th Week29-july-2013 to 05-aug-2013Remittance DepartmentMr.
Shabbier Anwar
5th Week05-aug-2013-to 12-aug-2013Clearing DepartmentOperational
ManagerMr. Muhammad Tariq
6th Week12-aug-2013-to 19-aug-2013Credit DepartmentCredit In
chargeMr. Ghulam Muhayiddin
Working activities during Internship: 1st Week:I spend my 1st
week on account opening desk according to the direction of Manager.
He gives me the basic instruction of opening of a new account.
Following information is required while opening of a new account:
Name of the person/Title of Account Signatures Nature of account
Type of Account Category of Account Currency of Account Date of
birth National Identity Card Fathers name Mothers name Residence
address Content number Profession Next of Kin
Account Opening:When a person wants to open account in United
Bank the bank officer give account opening form to him. All the
requirements are must be filled and in additional form is required
that is his income proof. This requirement is very important for
the bank without income proof bank officer not allow him to open
account. In this way bank secure himself from those persons how
earn his money from bad ways in other words bank assure that is
this money is black money or not. For example a person is come in
bank for opening of a new account officer first of all demand
income proof. He asks him how you earn your money? after this he
check his nationality and demand a national identity card.Bank
officer check the validity of the ID card, is this card is valid or
not. If ID card is valid then further proceed other vise not. If ID
card is not valid then his tell him that first you renew the ID
card and then come in Bank. Bank officer take his ID card for
scanning. After verifications bank officer fill up the requirements
of the form with the help of the information provided by the
customer that are mention in above. After completing the
requirements of the form bank officer assign an account number.
After assigning account number he uploads the information of
account holder on the database of the bank. After this he asks to
the customer that deposit amount in his account. For this purpose
he fills the deposit slip and gives it to the cash counter.Here are
a few types of accounts that I practice during my internship
period.1. Current Account2. PLS Saving Account3. Basic Banking
Account4. Business Account5. United Rising Star Account6. Foreign
currency account7. Term Deposits8. PLS Term DepositTYPES OF
ACCOUNT:
1. INDIVIDUAL ACCOUNT:in this account a singal customer operates
the account. the banker will run the account according to the
rules, but if the customer give the special instruction the bank
will have to fellow it.
2. JOINT ACCOUNT: In this type of account two are more than two
person will open the account. The account will be operated by one
account holder in case of (either of the survival). If the
instruction are not given, all the account holder will have to sign
the cheque.
Current Account:Currents account opening facility is offer for
the customers. Customers include individual, institutions,
commercial customers. First time cheque book and ATM issued to the
account holder is free. If first cheque book leaves are finished
then customer apply for second cheque book then bank charge 5 rupee
per leave of the cheque book.In current account bank not allow any
profit is given to the account holder and no deduction is made by
the bank. Only account maintenance charges are deducted if balance
is lower than the 25000 rupee. Account maintenance charges are 50
rupee per month until the account is not maintained.Minimum amount
is required for the current account is 500 rupee. Account holders
can withdrawal and deposit money as he likes. He can withdrawal
money many times in a day as he needs. Current account can be
opened by a single person and can be open by the two persons joint
account. In case of joint account cheque is not accepted without
the signature of both persons.The account holder who wants to close
his bank account he has to return his cheque book or present his
cheque book to the bank officer after withdrawal his amount from
the account.Eligibility of Opening of Current Account:All Pakistani
Residents/Non-Residents (Single or Joint account), Companies/Firms
etc can open this account.Any Foreign National Individuals (Single
or Joint account) having valid Resident Pakistan ID card Visa/Work
Permit can open this account.Requirement of opening of Account:
Properly filled account opening form Original National Identity
Card/ Passport of account holder Attested photocopy of National
Identity Card/ Passport of account holder Proof of his income. In
case of student university/college card, in case of job holder
person attested copy of his job appointment letter and in case of
business account his firms pad or his certificate copy with
original certificate.PLS Saving Account:This is a type of saving
account. In these types of accounts you can withdrawal amount and
deposit amount and in addition bank give profit to the account
holder. Profit rate is 5% per annual. Bank deducts charges. Profit
rate is varies from time to time. Profit rate is applied to the
average amount in a month that the customer have in his account.
Minimum amount is required for opening of saving account is 500
rupee.Zakat will be applying on the saving account. It is the
option for the customers either he wish to deduct Zakat
automatically by the bank of not. Some customers pay Zakat himself.
Tax is also applied on the saving account according to the rules
and regulations of the ABL. Saving account can be opened by a
single person and can be open by the two persons joint account. In
case of joint account cheque is not accepted without the signature
of both persons.The account holder who wants to close his bank
account he has to return his cheque book or present his cheque book
to the bank officer after withdrawal his amount from the
account.
Eligibility of Opening of Current Account:All Pakistani
Residents/Non-Residents (Single or Joint account), Companies/Firms
etc can open this account.Any Foreign National Individuals (Single
or Joint account) having valid Resident Pakistan ID card Visa/Work
Permit can open this account.Requirement of opening of Account:
Properly filled account opening form Original National Identity
Card/ Passport of account holder Attested photocopy of National
Identity Card/ Passport of account holder Proof of his income. In
case of student university/college card, in case of job holder
person attested copy of his job appointment letter and in case of
business account his firms pad or his certificate copy with
original certificate.2nd Week:Foreign Currency Account:United bank
provide facility for its customers opening of account in foreign
currency. You can open foreign currency account in current account,
saving account, term deposit account. Allied bank open foreign
currency accounts in US Dollar, Euro, British Pound and Japanese
Yen.
Term Deposits:United Bank offer Term Deposit account. It gives
high rate of return on different tenures. Term deposits time
periods are 1 month, 3month, 6month and 12 month. Investment can be
made with the minimum of Rs. 25,000. These term deposits are only
payable on maturity. Any individual and any institute can purchase
these term deposits.PLS Term Deposits:PLS term deposits scheme
which gives a high rate of return on different time periods. PLS
Term deposits time periods are 1 month, 3month, 6month and 1 year,
2 years, 3 years, 4 years and 5 years. These PLS term deposits are
payable on maturity. PLS term deposits are can be payable before
maturity according to the requirements of the customers. If the
customer wants to take his money back then bank gives him back. In
this case profit rate that are given to him is low as compare to
the standards profit rates on his instrument holding duration. Any
individual and any institute can purchase these term deposits.
3rd Week:Deposit, Transfer and Withdrawals:In this department I
learn how to transfer cheques from one account to the other
account, how to deposit cheques to their account, how to issue
cheque books and ATM cards, how to fill the cheques.Cheque books
are issued by the officer. When new cheque books are send to the
branch from the head office he list down these cheque books on the
register of cheque book. He makes record of current cheque books on
the current books side and saving cheque books on the saving books
side. When cheque books are received the bank call to the customer.
Customers come in the bank and receive his cheque book. Account
officer take receiving on the cheque books register. After
verification he gives permission to the customer that now he can
go.ATM cards are issued by the concern of officer. When new ATM
cards are send to the branch from the head office he list down
these ATM cards on the register of ATM cards register. When ATM
cards are received the bank call to the customer. Customers come in
the bank and receive his ATM card. Officer take receiving on the
ATM cards register. After verification he gives permission to the
customer that now he can go.When customer comes for receiving his
cheque book he takes signature of the customer on the first
acknowledgement page and also on the register. When customer gives
back the acknowledgment slip to the officer he verifies the
signature with the help of Specimen Signature Card. Specimen
Signature Card is scan at the time of opening of new account. In
bank daily some parties come and deposit their cheques to his own
account. These cheques can be the same branch cheques or may be the
same bank but other branches cheques. When a person or parties
deposit his cheque in the branch he must fill the credit deposit
slip. The following information must be provided or filled on the
credit deposit slip: Date, Title of the account, Phone number,
Account Number, Amount in figure, Amount in words and in last the
signatures of the depositors.When person fill the requirement of
the deposit slip then he deposit the cheque with the deposit slip.
After receiving the cheque we check that either slip is filled
correct or not. When we receive the cheque then we cross stamp on
the cheque and also on the deposit slip. Authorized person
signature on the deposit slip. One part of the slip is give back to
the customer and one is hold for the record of the bank. If account
is current account, business account and basic banking account then
current deposit slip is filled and if the account is saving
account, salary person account then PLS saving deposit slip is
filled.Another thing is that transfer of amount through cheques.
This process is done with the help of deposit slips. When one party
or person want to transfer his amount from account to account then
firstly fill the cheque of that account in which the amount is
transfer to other account then fill the deposit slip. Current
deposit slip is filled if the account in which the amount is going
to transfer and PLS saving slip is filled if the account is saving
account.Slip is filled by the name of the person in which the
amount is going to transfer. The account number of the person is
writing down and then date and after this amount is writes in the
boxes. In the particular write the cheque number and branch code
from where the cheque book is issued or where the cheque us
belongs. Amount is written in both figure and word. In last the
signatures of the depositor is taken. After receiving the cheque
from the customers bank officer signature on the slip and cross
stamp marked on the slip and also on the cheque. After this one
left part of the slip is give back to the customer and the right
part is hold for the record of the bank. Bank officer transfer or
add amount of cheque through computer system. After the transaction
is done by the computer bank officer print a computerized printing
on the back of the deposit slip through a Flag bed printer.Flag bed
printer is a printer that is used for the checking the cheques and
for the printing of transaction on the back site of the slips and
on the vouchers. This flag bed printer is used for the checking of
the instrument. This device read the code of cheque that is written
on the end of the cheque. This device is very helpful for the bank.
If the cheque is illegal then this device not read the code written
on the cheque.
Pay Order:Pay order is a bankers cheque to its customer. Pay
order is prepared when bank give payments on his own behalf to the
customers. In this branch where I did my internship Pay Order is
prepared by the Operational Manager. Pay order is prepared when
bank give payments to the parties for example when the payments of
Wapda, Sui Gas, PTCL are collected. Pay order is also prepared when
bank give payments of the bank expenditures e.g. water expense, AC
repair charges, generator repair charges electricity charges and
etc. Demand Draft:Demand Draft is also a bankers cheque but this is
prepared on the demand/request of the parties or customers. Demand
draft is prepared when customers or parties want to give payments
to the other parties. For example in our branch Yamaha agency has a
account when he wants to payment to the other party he come in the
branch and fill the form of Transfer of Funds. In this form the
following things are required: The name of the party where he want
to transfer the funds Branch name in which the funds are going to
transfer Amount in words and figure Signatures of the customer.
4th Week:Remittance Department:One duty of the remittance
officer is the clearing cheques posting which are come from the
other banks or other banks branches. He daily in start of the day
he posting the clearing cheques. In our bank he also issues the
bank statements on the request of customers. He also performs the
duty of salary posting of BHS, Government teachers and also the
salaries of the police.Online Funds Transfer:Remittance department
officer also transfer funds from one bank to other banks. When a
person wants to transfer amount/funds from one branch to other
branch in the same bank he fill the Online Inter-Branch Transaction
slip then deposit the amount on the cash counter. In case of
account holder he gives cheque and mentioned the cheque number on
the online slip. One part of the slip is given back to the customer
and one part of the slip is attached with the vouchers. When a
person wants to transfer amount to the other branch he must fill
the Online Inter-Branch Transaction Request slip. In Online
Inter-Branch Transaction Request slip he must provide the following
information: Date Applicants Name Applicants NIC number Address
Telephone number Remote branch name/ code Cheque number Remote
account title Remote account number Amount in figure Amount in
wordsAfter filling the following information he make signature on
the slip. With this slip he deposits his amount on the cash
counter. Casher receives the amount and refers this customer to the
remittance officer. Remittance officer transfer these funds to the
account that is mentioned on the online slip. On advice page
remittance officer hit the online drop stamp and write the amount
and account number of the remote account. In case of disconnect or
linked down of the remote branch he made an advice to the remote
branch and send this advice by post. When remote branch receive
this advice on the next day he enter the amount on the account that
is mentioned on the advice. Foreign Currency Account:United bank
deal with Euro, Pound, US Dollar and Japanese Yen currency. This
bank is also registered branch with the State Bank of Pakistan. You
can open any type of account in foreign currency. In this type of
account counter payments are only in Pak rupee. The limitation of
the bank is that he not deals in money exchange. 5th Week:Clearing
Department:The main function of the clearing department is to
collect the cheques from the customers for the clearings purpose.
When customer comes in the branch he fills the slip of his account
number. In slip he also mention the cheque number and bank name of
the cheque. After filling the slip he gives it to the officer.
Officer cheque all the requirements of the cheque for example date
of the cheque, signature of the person who issue this cheque and
also amount of the cheque both in figure and words. After checking
all the requirements of the cheque he hit the stamp on the slip and
cheque. One part of the slip gives back to the customer and one in
not. These cheques are other braches cheques. He collects many
cheques in a day. In evening he arranges the cheques of different
cities. Clearing is basically is a two types one is Intercity
clearing and the second is same city or within city clearing.
Intercity clearing cheques are those cheques which send outside of
the cities. Same bank cheques are posting on the system and his
credit slip and print of cheques list is put on clearing file. The
record of other banks intercity clearing cheque maintained on the
intercity clearing file.To arrange the payment of cheques these
cheques to the clearing houses for the settlement of payments. This
all process is done by NIFT. NIFT is responsible for the management
of clearing house facilities in Pakistan. It provides services of
intercity clearing, same day clearing, interbank clearing, cheque
book delivery form head office to the branches, ATM card delivery
and etc. The function of NIFT is to collect cheques from his
affiliated bank or members of NIFT banks. After collection of
cheques from different bank he distributes these cheques to the
related banks. Those banks which are not the members of NIFT send
them OBC. OBC is not treated by NIFT this is send back to the
branch.There are many banks are the members of NIFT where as some
banks are not the member of NIFT. In this case Operational Manager
of our branch prepares the OBC. OBC stands for Outward Bills
Collection. The record of OBC is maintained on the OBC file and the
entry is entered on the OBC register. In OBC register we assign the
OBC no to the cheques and enter the name and account number of the
parties. After this enter the name of the city where the cheque is
going to present. In addition the Inter Branch Clean Bills Schedule
is prepared for this purpose. While preparing Inter Branch Clean
Bills Schedule we write the date, branch name where cheque is send,
amount, bill number, drawee name and cheque number.
Cheque:
A cheque can be defined as a written order of the customer upon
a bank to pay to or to the order of designated party or to the
bearer a specified sum of money on demand. The main characteristics
of the cheques are as follow:(1) It is an order of the customer
without any condition.(2) It is drawn upon a certain bank in
writing.(3) The banker has always to pay it on demand.(4) It is
payable to a certain person or to his nominee or to the bearer of
the instrument.
Essentials:The following essentials are taking into
considerations:
1. In writing:The writer should be in writing. It includes print
and cheque is made out on a type writer is valid
2. Unconditional Order:The language in writing a cheque should
be valid. For example, a cheque is in the following term: Pay X Rs.
25,000/= is a valid cheque. Whereas pay A Rs. 50, 00,000 if you can
is not a valid cheque.
3. Signed by drawee:The signatures of the drawee on the cheque
should be matched with the signatures as these were at the opening
of the account.
4. Certain sum:The amount written in words and figures should be
matched with one another.
Types of Cheques:
The cheques are two different types. Open cheques and Crossed
cheques
(1) Open Cheques:These are those cheques which are paid across
the counter of the bank. Open cheques may be bearer or order
cheques.
(i) Bearer Cheques:If a customer orders to the bank to pay a
stated sum of money to the bearer then it is called a bearer
cheque. Any customer who lawfully possesses a bearer cheque is
entitled to receive payment of that cheque.
(ii) Order Cheque:If a cheque is to the order of a person in
whose favour the cheque is drawn, it is called the order cheque.
The order cheque is paid by the bank only when the bank is
satisfied about the identity of the payee.
(2) Crossed Cheques:The crossed cheque that can be identified
easily. There are two parallel lines across the cheque with or
without words. This cheque can not be paid on the counter of the
drawee bank. It is deposited in the account of a person in whose
order or favor it is drawn.
Kinds of Crossing:Formally there are two kinds of crossing.1.
General Crossing2. Special Crssing
1. General Crossing:Two parallel transverse lines are drawn on
the face of the cheque with or without words.. There are different
words for general crossing.(i)Crossing with two parallel
lines.(ii)Crossing contains the words &Co
1. Special Crossing:When a cheque bears across its face the name
of the banker with or without the words, not negotiable, in this
case the payment is only made to the bank name written on the
cheque.
Objective of Crossings:The following objectives are obtained
from a crossed cheque:1. The payment of the cheque can not be paid
to the wrongful holder.2. It ensures that the payment is made to
the concerned receiver.3. It elps to prevent any cheating or
theft.
6th Week:Credit Department:The basic function performs by the
bank is to accept deposits from different parties and lend money to
the borrowers against a spread so to be able to get some profit for
the depositors and as well as for the bank.Following are the
lending principles: The purpose of the advances should be lawful
and productive. It should be ensured that the bank funds are not
being utilized for other business. The credit limitations by the
central bank should not be dishonored and it should also be ensure.
It is always positive for the bank to investment for the short term
requirements. At the end result every business should be earn some
profit. Similarly the banks must get some net income out of the
action of loaning so that the depositors could get their shares as
well as the share holders could earn some benefits for their
investments. Safety Principal means that the lend money will come
back with interest. The bank should not invest money in uncreative
or exploratory business. Bank always invest his money on those
businesses that generate profit and give benefit to the bank.
Liquid Principle means that the money which has been lending to the
lender should be returned to the depository financial institution
on requirement or as per refund schedule provided by the client.
The proposal should be deal on its merits not on the security. The
security should be considered a safety for the bank in case of
unexpected emergency. All the relevant documents of the securities
must be obtained and got evaluation of the property or any other
security should he assessing properly. Its always harmless for the
banks to extend the risk in large number of borrowers instead of
giving huge loan to the one person, it is better to obtain
different types of securities instead of concentrating on one
security. It is our responsibility to make sure that no loaning is
running counter to national interest. It is also our obligation to
ensure that our lending policy is not against the social
circumstances or binding. Closing of an Account: There are several
reasons why account holder might need to close the bank account.
The account holder could be moving to a location that doesn't have
a branch or account holder might want to stop an automatic debit.
Whatever the reason, by following these steps, the account holder
can close the account. Instructions: Step1 Make sure all cheques
have cleared the bank account. As soon as the account is closed,
the bank gives the balance of the account. Step#2 Switch banking
information with employers and vendors. Before the closing of the
account. Change information with any vendor who automatically
debits the account. Step#3 call the bank. Before make a trip to the
bank, there is a need to call and find out the bank's policies.
There are banks that charge a fee to close an account. Step#4
physically go into the bank to close the account. Most banks will
require two forms of identification. Step#5 The account holder can
transfer the funds into a new account or get the amount in cash.
5.4.4 Departments in United Bank Ltd Tanda branch:There are
following departments are working in this branch:Deposit, transfer
and Withdrawal:The basic purpose of this department is to maintain
the records of accounts. Officer accepts the cheques from different
parties. He also accepts the cheques of those persons who wish to
transfer cheques form account to account that he received from
other parties. These cheques are may be Allied Bank cheques and may
be other banks like Bank of Punjab, Askari Bank, National Bank,
Dubai Islamic Bank etc.When he received his own bank cheques he
transfer cheque amount from account to account through system and
when he receive the other branches cheques and also other Banks
cheques then he send these cheques to NIFT (National Institutional
Facilitation Technology) for clearing. When clearing has been
passed then the officer transfers the amount of cheques that has
been passed through clearing to the account of the party who
present his cheque for clearing.The officer posted entries to the
computer. All Allied bank branches are interconnected through
online network. Entries that are posted in one branch can be viewed
in the other branch. Voucher system is also use for the record
keeping. Some time data is wrongly posted in the system and record
keeper feel of remember after one day or after some time than
voucher helps them for correction. Voucher is prepared for every
transaction for cash and also for clearing purpose. Credit
department:The basic function of the advancing department is to
give facility of loan to the customers. Advances when a customer
comes in the bank for taking loan advances incharge firstly fulfill
the requirement of the bank lending principals if customers fulfill
the requirement of the bank then he is capable for lending of
money. Bank give loans to its customers then receive back his loan
with interest. Clearing department:The main purpose of clearing
department is to collect cheques from his customers. He arranges
payments of the cheques. To arrange the payment of cheques he sent
these cheques to the clearing houses for the settlement of
payments. This all process is done by NIFT.NIFT is responsible for
the management of clearing house facilities in Pakistan. It
provides services of intercity clearing, same day clearing,
interbank clearing, cheque book delivery form head office to the
branches, ATM card delivery and etc. The function of NIFT is to
collect cheques from his affiliated bank or members of NIFT banks.
After collection of cheques from different bank he distributes
these cheques to the related banks. Those banks which are not the
members of NIFT send them OBC. OBC is not treated by NIFT this is
send by TCS. Cash department:Cash department basically perform two
functions. One is receive cash and other is payment of cash. Casher
receives cash of those persons who have account in the bank. He
also collects utility bills, school fee and etc. He made payments
of cheques that are presented on the cash counter. Bills
department:There are two types of functions that performed by bill
department one is Inward Bills Collection and other is Outward
Bills Collection.Inward Bills Collection (IBC):Inward bills are
those cheques which are collected locally through post. These
cheques are of those banks which are not the member of NIFT.Demand
Draft:Demand drafts are refers to the payments on the demand of the
holder of draft. It includes DD issue and DD payable.Outward Bills
Collection:Clean Bills:Clean bills are negotiable instruments which
are drawn on outstation branches. These bills are sent for
collection of payments on the behalf of the customers.Pay Order:Pay
order is issued to other branches or banks for collection of
payments on behalf of own his bank. Bank issues pay order to the
parties or customers on his own behalf.Remittance
department:Remittance department transfer funds from one bank to
other banks. When a person want to transfer amount from one branch
to other branch in the same bank he fill the online deposit slip
then deposit the amount on the cash counter. In case of account
holder he gives cheque and mentioned the cheque number on the
online slip. One part of the slip is given back to the customer and
one part of the slip is attached with the vouchers. In case when
online transaction is drop due to link down of the other remote
branch where customer wants to transfer amount then advice is made
and send to the remote branch by post. When remote branch receive
the advice then transfer amount to the account that is mentioned on
the advice page.On the demand of the parties demand draft is made.
Demand draft is made on the request of the parties when he wishes
to pay amount to the other parties.
Foreign currency department:United Bank provides a facility to
its customers opening account in foreign currency. It can be opened
in US dollars, Euro, Japanese Yen and British Pound. Foreign
currency officer handle the transaction of foreign currency. He
manages the transaction of those customers who made transactions of
US dollars, Euro, Japanese Yen and British Pound. SAFETY OF
TRANSACTIONS:All transactions for payment of purchase through POS
terminal require use of your exclusive ATM PIN known only to your
self a sound and safe security feature.Balance Enquiry:The POS
Terminal may also be used for Balance Enquiry of accounts linked to
the card.Cash Withdrawals:Cheque Free Banking shall be made
available through POS Terminal installed at dedicated cash counters
at branches manned by a cashier.Lockers:-Specially designed lockers
of various sizes to meet the requirements of applicants are
available at Ubl designated branches. The lockers may be operated
during the banking hours of the branch.ELIGBILITY:
Only Account holders of Ubl branches are eligible to apply for
renting the Safe Deposit Lockers. ALLOTMENT OF LOCKERS: A locker of
the size of applicants choice shall be allotted subject to its
availability. Banks prescribed License Agreement on Stamped Paper
to rent the Locker is required to be executed by the applicant with
cost thereof payable by the applicant. Key Deposit money as per our
Schedule of Charges in force is payable by the renter. The Key
Deposit is refundable when the locker is surrendered. In case the
key to the locker is lost, the key deposit shall be forfeited.
Golden deposit certificate:-United Banks 5 years Golden Deposit
Certificates provide monthly income based investment opportunities
to small and medium income group investors, Charitable/ Benevolent
Funds, Trusts, Societies, Associations and Clubs with an attractive
return. Business Firms and Corporate can also invest.Diamond
deposit certificate:-United Diamond Deposit Certificates:United
Diamond Deposit Certificates provide investment opportunities to
small and medium income group investors, Charitable / Benevolent
Funds, Trusts, Societies, Associations and Clubs with an attractive
return.Salient features of United Diamond Deposit
Certificates:Certificates are issued for fixed periods of 1, 2 and
3 years. Annualized Rates of expected Profit: from 12 % p.a. to 14
% p.a. Profit paid at monthly intervals calculated from date of
deposit. The certificates are issued in multiples of Rs. 10,000/-
Financing facility up to 90 % of Deposit available.
5.4.6 Summary of the learning:5.4.6.1 Skills and
Qualifications:During my internship I learn some skills. I learn
how to behave in different situation with the customers. When
customers are satisfied then they are loyal with the organization.
Organizations success depends on the loyalty of the customers. If
you are unable to keep your customers satisfied/ loyal then it is
not fruitful for the organizations. Banks are totally depends on
the depositors of the customers. Deposits are called the life blood
of the banks. Without of the deposits of the customers bank can not
generate profits. Besides improvement in my skills I gained some
knowledge in the field of banking. By remaining at university I had
known to some extent the purpose of varied instruments used at
banks.Technology play very important role in the success of the
organizations. Now a days every bank or organization tried their
best to use the best and latest technology for their success. The
important skill that I gained is the skill of management. I learned
that how to manage different kind of customers, how to resolve
their queries in order to keep them satisfied. I learn that how the
outward clearing is dispatching, what steps are involved. I also
learn about the preparation of the bank instruments like the Pay
Order, Demand Draft, filling of credit slips of saving account,
current account and online fund transfer slips.5.4.6.2
Responsibilities during Internship:In my internship duration Im
responsible for the filling of credit deposit slips, maintaining
the record of cheque books that are daily come from the head office
and also for the ATM cards. I am also responsible for preparing the
daily intercity clearing. In intercity clearing I separate the
different cities cheques and then verify the cheques and mark the
intercity clearing stamp and then clearing date stamp and
endorsement stamp in back. I am also responsible for the filling of
slips of transfer of account, online funds transfer slips, saving
and current account deposit slips.Any major duty was not assigned
to me because I have no any experience before this internship and
also because I am a student thats way bank officer not assign me
any special duty. My duty was to learn and concentrate on how
things done in business organization in a practical
environment.5.4.6.3 Influence on my Future Career:Internship play
very important role in influencing my future career plan. During my
internship I get experience in finance sector. I learn how the bank
take deposits and give loans to the customers and then get back
with the profit for its depositors and also for the bank itself. My
internship program in United Bank inspires me very much. I like to
do the practical work very much, so now I take keen interest to
join the banking sector.5.4.6.4 Internship Activities are
correlated with Classroom Knowledge:Internship activities are
correlated with the class room knowledge. In my previous semester I
studied about the banking sectors. In which I study about opening
of account, characteristics of cheque and clearing and also some
extent to loans. Now my concepts are more cleared after my
internship. My concepts are clearer by practicing these things in
the bank. The basic rules of financial accounting were practiced
during the internship days like implementation of the basic rules,
the rules of debit and credit. The knowledge that I get from
marketing courses was practically observed. I learned how to deal
with different customers in different situations. I learned how to
solve their problems and what kind of services must be provided in
order to keep them satisfied so their loyalty can be achieved in
order to maintain long term relationship with them. The practical
implementation was observed.6. CONCLUSION OF THE REPORT:The
analysis of strengths, weaknesses, opportunities and threat as
narrated above tells us about the present vital concern. The
internship of UBL gives me as exposure to the accounting
atmosphere. It helped me greatly in understanding the financial
system. The experience I got during the internship will help me in
understanding the decision-making and how to solve daily problems
encountered during the practical working environment
6.2General observations about the sector:The UBL exist in
private sector, private sector is part of economy and run by
private individuals or groups, usually as a means of enterprise for
profit and is not controlled by the state.
6.3SWOT ANALYSIS:The SWOT analysis consists of analyzing
organizational strengths and weaknesses, and its environmental
opportunities and threat. It helps to identify a strategic niche
that the organization might exploit. SWOT analysis of UBL is as
follows.
STRENGTH: UBL has got a well reputed on -line system in most of
its branches. Remittance department is working very efficiently in
transferring the funds to peoples due to this system The bank also
has started ATM facility in most of the branches 24 hours banking
is now the trend in Pakistan. Bank is providing quick credit
services to all the customers at all branches, because the credit
manager cooperates with the borrowers while making a loan request
to the bank. Management is well organized, Services provided by the
branches are very good. The bank has stable growth in deposits
since its emergence. The loan facility provided by the bank is on
sound basis. They have many checks and documentation that secure
their money after advancing. Because of its 1056 Domestic Branches
they have very good infrastructure and are prevailing now outside
Pakistan also. Very important aspect of UBL is its fast service.
Everything goes very quickly. If you are looking for a loan, or you
want to deposit money or you want to pay your bills their services
are so fast that they respond the customers very quickly. UBL has
financial strength as they are gaining profit from the advances
that they provide to the organizations. UBL is providing lot of
services to its customers like incase of remittances they have
services like online services. The Management has changed;
employees who are useless are fired and new-experienced graduates
are hiring to enhance the operations of the banks & the
employees, which are efficient they are getting promoted. Because
of its quality management, marketing, innovation in products and
services they have established a good reputation in the banking
sector. In UBL the working environment is very good. Every employee
comes there and works with zeal & heartily. Certain training
programs are arranged outside the working environment to train and
refresh them or entertain them.WEAKNESSES: The human resource
department is not performing well in the organization, Bank is not
introducing new products these days, so bank should boost the
product development and increase the range of facilities offered
for customers. And the rates of interest on its various products
have been reduced. Bank is under staff so absence of members create
problem All the branches are not computerized. UBL is centralized.
It means authority is not delegated to branch level. Manager cannot
take initiative regarding different decisions such that for giving
finance. The majority of people are not well aware about the
products of UBL It is due to their very low services of promotional
activity. There is low level of motivation in the employees of the
bank UBL Management has adopted reactive approach they respond to
the market very slow and are reluctant to take initiative before
the problem arises.
OPPORTUNITIES: Government is taking very bold steps to promote
IT in Pakistan. UBL has an opportunity to improve in IT stock
exchange is very volatile and takes immediate effect so in times of
crises conservative investors turns to saving deposits. UBL is
surrounded by many competitors it has an opportunity to aggressive
marketing to increase its business. One could find opportunities in
good marketing; it could also helpful in bank's promotion. Mobile
banking is a concept that has started to find its roots in the
banking sector. So it is a big opportunity for UBL to avail this
chance at big level. Opportunities exist for expansion of UBL
chains in the International Arena; Particular Invention must be
given to the individual country's customs and cultural practices to
be successful. UBL should organize trade shows for the promotion of
export for that they should finance the companies those who wanted
to internationalize and wanted to introduce their product and
services outside Pakistan. Liberalization is a concept that is
under discussion around the world as this is going to be
implemented by WTO in a few years to come. So keeping in view these
perspectives there is great opportunity for UBL to be stronger. An
external opportunity exists in efforts to improve the social
environment of local communities and society in general by offering
innovative, community - involvement programs.
THREATS: UBL has many competitors who are continuously
increasing their products and marketing aggressively it may cause
its customer to shift to its competitors. The rapidly changing
environment in the banking sector and the quick response of the
other banks to these changes can be a threat for UBL. What customer
really wants is a difficult thing to identify as to identify the
customer perception and its behavior is complex procedure. So the
changing needs of the customer can be a threat for the banks.
Changing Governmental Policies instability in Politics can be seen
as a threat for the banking sector. Competition can be the greatest
threat for the UBL. As old banks have started changes and many new
banks are emerging as a strong entity so UBL will face a strong
threat from this competition unless adopt pro - active approach to
handle these threats. The political conditions of the country
affect the banks performance.
7.RECOMMENDATIONS:SWIFT MECHANISM:SWIFT mechanism is gaining
importance for the treatment of LC and it has been found that UBL
has only provited SWIFT facility at its head office not to all the
authorized dealers dealing with foreign exchange in their branches.
To save the precious time of the prestigious for LC in their
Central branches inside the country.TO AVOID CUSTOMER
DEFECTION:During my time period that I spent in foreign exchange
department I found in their registers that many firms were
defecting means those who were first loyal to UBL for the
operations of opening LC were not viewed in the list for a longer
period of time. To avoid their defection whether it is partial or
full relationship should be created by giving a phone call. It will
make betterment in UBL s goodwill and their profits.REDUCE
COMPLEXITY IN ADVANCES:While providing advances the mechanism that
is opted by UBL is to provide facility and renew it after a year.
In the renewal whole procedure is followed again that was opted at
the start. Lot of documentation get not only employee confuse but
even customer avoid that. This can be the reason for UBL having low
ratio of advances as compared to their deposits. So UBL should
finish the method of renewal but keep checking the performance of
the organization by having relationship. INTERNATIONAL
EXPANSION:UBL has internationalized already and is performing very
well in its abroad branches. But UBL has internationalized to few
countries. They have big markets ahead of them and with their
working activity will get simpler with that. In the form of
European countries and markets like CHINA where there is lot of
activity related to banks they can expand their chains.MOBILE
BANKING:Mobile banking is actually a banking that you can do
yourself. You can perform various activities of bank through your
mobile phones or through your computers. With just a call you can
transfer money from an account to another and similarly other
activities. It is a concept that is gaining importance throughout
World Pakistan is no exception. UBL should start working on this
concept to maintain their existence in the changing banking
sector.
ADOPT PRO-ACTIVE APPROACH:UBL management should adopt proactive
to survive in this sector. What I have observed is that UBL
management is having reactive approach means that they react to the
situation that their competitors have created. In case of consumer
financing UBL has respond by having same schemes that have been
already launched by their competitive e.g. car financing and
housing schemes are responded but very late by the UBL. UBL should
try for new innovative ideas rather than moving on the same track
that their competitive are doing.
EDUCATE ACCOUNT HOLDERS:Whether the account holders are new or
existing bank should provide them with the initial information
about how to deposit and withdraw money from the bank. It will be
beneficial for the bank in a way that lot of time could be saved
afterwards with that approach.
PROMOTIONAL ACTIVITY:Bank must let potential customers know that
all attractions for banking exist. This is done by advertising on
Television and obtaining Press coverage, in conjunction with direct
mail, window displays, pamphlet in branches and in appropriate
other locations (such as hostels, shops etc.) and including
leaflets in statement of accounts sent to existing customers in the
hope that they will tell potential customers about the services
provided by our bank. RELATIONSHIP:The bank should keep on filling
the gap between customer and the bank through consumer friendly
attitude and efficient services. They should work on building
relationship with the customers.
BUSINESS PARTIES:UBL should start thinking about relationship
with the parties that are willing to do the business with the bank.
Business in the form of deposits for a longer period of time.
Rather than looking for small parties whose purpose is just to
deposit in the morning and have withdrawal in the evening should be
discouraged. Lot of time in work activity can be saved by having
few but good parties rather than having huge accounts of small
amount and specially those are not for the purpose of long term
deposits. CHANGE ATTITUDE:Employees inside the branches should
change their attitude toward the customer. It has been observed
that customer do not get the same warm welcome and importance that
he wants and he is been provided by other emerging banks like
ALFALAH and UNION BANK. They should start thinking about changing
their attitude from now. Performance Appraisal &
Compensation:Employee appraisal is an major part good and effective
HRM. It consist of systematic evaluation of an individual with
respect to his personal traits and characteristics, his on job
performance and his potential for development. In Unite Bank
Limited there is no appraisal system exists. No relationship has so
far been established between appraisal and staff motivation. No
weight is assigned to appraisal in making decisions on promotions,
postings, etc. Compensation is a necessary thing for employees
satisfaction. And UBL has not any proper compensation plan when
ever management decide to give bonus or extra salary to employees
it is followed. So there should be proper compensation plan.Product
Marketing:This is age of competition and every organization is
facing hard competition from not only domestic organization but
also from the international organizations due to globalization. Due
to this competition the marketing department plays a vital role in
the success of the organization. UBL should have a strong marketing
department like many other private banks have, for the publicity of
their products and make well inform the customers all the services
provided by the bank and to conduct detailed market researches to
find out new opportunities, needs of the customers and make
comprehensive plans to capitalize those
opportunities.Appearance:Physical appearance of the location and
inside the building also matters. It helps a lot to attract the
customer. Some branches of UBL are very attractive but all the
branches should be well dressed. Charge Card:UBL should provide the
facility of charge card as well.Recovery Facility:It should also
provide the facility of recovering notes payable and accounts
payable8.REFERENCES:BIBLIOGRAPHY:BOOKS: James C. Van Home, John M.
Wachowicz, Jr. "Chapter # 6 Financial Statement Analysis",
financial management 10th Edition, 121-157 Richards, Verlyn D and
Eugene J. Laughlin. "A Cash Conversion Cycle Approach to Liquidity
Analysis". Financial management 9, 32-38. The Professionals'
Academy of Commerce (PAC), "Introduction to Financial Accounting"
3-10. Lawrence J. Gitman "Chapter # 3 Financial Statements, Taxes,
Depreciation and Cash Flow" Principles of Managerial Finance 9th
Edition, 78-84.LINKS www.ubl.com.pkwww.google.com.pk www.ubl.com.pk
www.sbp.com.pk
SOURCES: Annual reports of UBL and Previous years reports of
UBL. Existing documents of UBL.
ANNEXURE A
HIERARCHAL STRUCTURE OF UBL ATHEAD OFFICE LEVEL
Board Of DirectorsCorporate BankingAgricultural LoansCommercial
BankingTreasury & C.MInvestment GroupH.R.MConsumer
BankingExecutive Committee
Marketing DepartmentIT DepartmentAudit & InspectionService
& Quality
ANNEXURE B
HIERARCHAL STRUCTURE OF UBL AT BRANCH LEVEL
Branch Manager, Area Operational ManagerCustomer DepositCash
& ClearingMarketingAdvanceAccountsInformation TechnologyForeign
ExchangeBills & Remitt
9MBA(Finance)