Report

Internship Report | 0
1.1 INTRODUCTION
Students of BBA studying courses leading to Master degree in Commerce are
required to undergo an internship program me of six month duration. This is an essential
academic requirement. The internship is followed by comprehensive report writing,
required to submit to the research and development division (R&DD) of The Islamia
University of Bahawalpur. This report is properly evaluated on the basis of its description
and analytical capabilities by internal and external examiners. I did my internship in
United Bank Limited ADDA BAZAR TANK Branch.

PURPOSE OF STUDY:
The purpose of the study is to work in real life situation and learn banking
practice by doing.
In this context its objectives are:
i. To analyze banking operations i.e. operational analysis, financial analysis.
ii. To develop concrete and feasible recommendations.
iii. To improve report writing skills.

SCOPE OF STUDY:
The study is confined to banking operations. An attempt, along with all its
limitations, to collect financial data and general statistics of the bank has been made.
Keeping in view the purpose of the study, which is to make an acquaintance with
practical doings in the bank, this seems a comprehensive effort.

LIMITATION OF STUDY:
It is to admit that the study attempts only those aspects, which are closely relevant
to the purpose of the study. Facts and figures, which otherwise might be equally
important, but not having a direct bearing on the conclusions arrived at this study, have
been ignored. The most important limitation from which the study suffers is the non-
availability of information in a manner required for analysis and the secrecy of the bank.
Another important limitation of the study is time and space constraint.

METHODOLOGY OF STUDY:
Primary and secondary data were used in compilation of report. Methodological tools
were:
i. Primary Data:
Personal Observations.
Discussion with Bank Personnel.
ii. Secondary Data:
Brochures/ Manuals of the bank.
Annual Report
State Bank Foreign Exchange Manual
Bank internship reports on UBL available in library.
Journals, newspapers and books.
Internet.

1.2 BANKING SYSTEM
Banking services are extremely important for both economies developed and
developing economy such as Pakistan. Banking services serve two primary purposes.
First one is, by supplying customer with the basic mediums-of-exchange (cash, current
account and credit cards). Without these familiar methods of payment, goods could only
be exchanged by barter, which is time-consuming and inefficient. Second, by accepting
money deposits from savers and then lending money to borrowers, banks encourage flow
of money to productive use and investments. Without this flow, savings would sit idle in
someones safe, it would not be available to borrow, people would not be able to
purchase cars or houses, and businesses would not be able to build the new factories.
Enabling the flow of money from savers to investors is called financial intermediation,
and it is extremely important for the growth of economy.

BANKING HISTORY
Consensus on the origination of word Bank is not yet reached at. Some authors
opinion is that this word is derived from the words Bancus or Banque, which mean a
bench and they further relate banking business inception to Jews in Lombardy. Other
authorities state that the word Bank is derived from the German word Back which
means Joint Stock fund and later on due to German occupation of Italy, this word was
Italianated into Bank. Authors quote Babylonians (few quotes Chinese) who developed
banking system as early as 2000. B.C1

BANKING IN PAKISTAN:
Banking started in Pakistan after the bold and emergent decision of formulation of
SBP on July 30, 1948. Thereafter this sector has witnessed enormous growth. In 1974
banks were nationalized, in the hope that new era of growth could be achieved through it.
However the process is reverse since 1991, up till now MCB, ABL, and UBL have been
privatized and HBL is in the process of its privatization.

1.3 TOWARDS ISLAMIZATION OF ECONOMY
Interest based transactions/businesses are Haram in Islam. The GOP has shown.
Interest is to eliminate interest from its economy by developing various alternatives. To
achieve this objective various efforts are made with the following outcomes.

DEPOSITS:
S A Haq. (1998) Practice & Law of Banking in Pakistan (6
th
Ed.)
The Council of Islamic Ideology (1980). Elimination of Riba from Economy.
PLS (Modarba) Accounts
Current Accounts: (with no return paid)
LOANS:
Qarz-e-Hasana
Lending on the basis of Service charges

TRADE RELATED MODES OF FINANCES:
Bai Muajjuai; purchases of goods by banks and their sale to clients at appropriate
mark-up in prices.
Bai-Salam; purchase of goods from clients by banks and their resale to the client
at increased prices, to be paid in future.
Financing for development of property on the basis of developmental charges.
Ijara: leasing.
INVESTMENT TYPE OF MODES OF FINANCES:
Musharaka: financing on the basis of profit and loss sharing.
Modaraba: equity sharing of borrower profit and loss on basis of purchase of
modaraba certificates.
Rent sharing.
Equity participation through purchase of shares.

1.4 ADVANTAGES OF BANKING SYSTEM FOR ECONOMY
The deposit and loan services provided by banks benefit an economy in many
ways. First, Current account, because they act like cash, make it much easier to buy
goods and services and therefore help both consumers and businesses, who would find it
in convenient to carry or send through the mail huge amounts of cash. Second, loans
enable consumers to improve their standard of living by borrowing money to purchase
cars, houses, and other expensive consumer goods that they otherwise could not afford.
Third, loans help businesses finance plant expansion and production of new
goods, and therefore increase employment and economic growth. Finally, since banks
want loans repaid, banks choose borrowers carefully and monitor performance of a
companys managers very closely. This helps ensure that only the best projects get
financed and that companies are run efficiently. This creates a healthy, efficient
economy. In addition, since the owners (stockholders) of a company receiving a loan
want
their company to be profitable and managed efficiently, bankers act as surrogate monitors

for stockholders who cannot be present on a regular basis to watch the companys
managers.
1.5 Vision and Mission

UBL vision and
mission
To be a world class bank dedicated to
excellence, and to surpass the highest
expectations of our customers and all
other stakeholders
Set the highest industry standard for quality,
across all areas of operation, on a sustained
basis
Optimize people, processes and technology to
deliver the best possible financial solution to
our customers
Become the most sought after investment
Be recognized as the employer of choice

2.1 UBL HISTORY
United Bank Limited was incorporated in Pakistan with the registered office in
Karachi, and the principal office situated in Islamabad. UBL has assets of over Rs. 747
billion and a solid track record of over fifty years - in addition, the bank operates 1200
branches all over Pakistan including 7 Islamic banking branches, and 1 branch in Karachi
export processing zone and 17 branches outside Pakistan.

The banks ordinary shares are listed on all three stock exchanges in Pakistan and
its global Depositary Receipts (GDRs) are on the list of the UK Listing Authority and the
London Stock Exchange Professional Securities Market. These GDRs are also eligible for
trading on the international Order Book System of the London Stock Exchange. Join us
in a world class journey and let us serve you better, because at UBL You come first!

November 7th 1959, Pakistan witnessed an event that would change the way we
banked forever. It was not just the inauguration of UBLs first branch at I.I. Chandigarh;
it was also the birth of the culture of service, a culture of innovation and a culture of
financial excellence!

By June 1960, shortly after six months of opening its doors to the public, UBL
had branches in:
Karachi
Dacca
Lahore
Lyallpur
Chittagong
And Narayanganj

In 1963, UBL became the first bank in Pakistan to have a branch overseas- on
William Street in London, United Kingdom. True to our promise of providing service and

care beyond the ordinary to our customers, UBL and You have had a history. The first
saving scheme for school going children was launched as early as 1960 or the formation
of Pakistans first Staff College of employees in 1964, UBL, through the motivation of its
staff and the trust of its customers, continued to grow at a spectacular pace. In 1967, UBL
had hit the dawn on information in terms of technology, by introducing computer banking
to Pakistan and in 1971, UBL once again paved the way by launching 3 online branches
in Karachi.Throughout its history, UBL has kept pace with- and often exceeded the
changing needs of changing times. Keeping the tradition of innovation alive, UBL
introduced Pakistans first credit card, the UNICARD in 70s and left its mark by
launching the Pak Rupees traveler cheques in 1971. Staying true to its roots, UBL was
also the first bank to have an Islamic banking division and the first to introduce e-banking
facilities at Hajj.
In the 1990s the government of Pakistan decided to change the face of banking
by creating a blueprint to privatize UBL. At this point, financial experts were called on
board to set the bank back on course, and with implementation of relevant changes, the
government privatized the bank in the year 2002 Best way and Al Ayaan collaborated,
forming the cornerstone for the UBL of tomorrow. Today, UBL opens its eyes to a new
vision every day, a vision of resurgent excellence and renewed commitment to our
customers. 52 years into our glorious history UBL is now part of one of the worlds
largest financial services groups.

2.2 IMPORTANT ABOUT UBL
United Bank Limited was incorporated in Pakistan with the registered office in
Karachi, and the principal office situated in Islamabad. UBL has assets of over Rs. 747
billion and a solid track record of over fifty years - in addition, the bank operates 1200
branches all over Pakistan including 7 Islamic banking branches, and 1 branch in Karachi
export processing zone and 17 branches outside Pakistan.The banks ordinary shares are
listed on all three stock exchanges in Pakistan and its global Depositary Receipts (GDRs)
are on the list of the UK Listing Authority and the London Stock Exchange Professional

Securities Market. These GDRs are also eligible for trading on the international Order
Book System of the London Stock Exchange.

NUMBER OF BRANCHS:
UBL has a large network of branches, which extends to the remotest areas of the
country. In December 1983, there were 1623 branches whereas in 1974 it had only 1238
branches and in October 2013 these figures show more than 1200 branches UBL has been
very active in increasing its overseas branches network. The first foreign branches were
established in London in 1963. Now UBL has branches in Bahrain, Qatar, Saudi Arabia,
United Arab Emirates, Yemen Arab Republic, UK Switzerland, Egypt, Oman and The
United States. These branches are playing a significant role in channeling home
remittances and foreign trade of Pakistan.

COMPUTERIZATION OF UBL:
UBL has taken leading start in the introduction of computers in (1966-1968) in
important cities. Its three computers centers Rawalpindi, Lahore and Karachi are
equipped with the modern mainframe computers of various capacities. Every branch

has been decorated with microcomputers. The use of computers has enabled the bank to
save time and efforts raise efficiency and deliver the goods speedily to its customers. This
has also allowed the bank to maintain its leadership within the industry.

UBL - ON LINE SYSTEM
Themes of this service is Access anytime, anywhere, any device which symbolizes
comfort, convince and connectivity. UB-Online a web based service that can be accessed
through multiple media link like, (1) PC via internet (2) Mobile phone with WAP or free
SMS) (3) Personal Digital (4) assistants and (5) Plain telephone; following are some of
the exciting features:
Accounts statement & electronic data interchange
Graphical analysis
Alerts service /facility, search facility and activity long

The banks as another computer-based system known as UIBANK
Which is a well-develop on-line branch-banking package. The system automatically
prepares various report, central bank returns, and statement of accounts for customers.
2.3 Core values

CORE VALUES
*Honesty and
integrity

*Commitment
and
dedication
*Fairness and
meritocracy

*Teamwork
and
collaborative
spirit
*Humility and
mutual
respect

*Caring and
socially
responsible

2.4 OBJECTIVES OF UBL
The united bank limited sets its goal annually does revision of them and takes monthly
feedback.

To provide
the on line
facility in
every branch
of bank.
To achieve
the goals
which are in
profit terms?
Make best
efforts to win
the trust and
confidence of
its customers.
To make it
leading bank
in banking
sector.
To adopt
modern
banking
techniques.
Operations
proficiently
assigned by
the
government.
Efficient in
providing
evening time
facilities.
To get all the
branches
computerize
d.
Boost the
financial
sector all over
the world
particularly in
Pakistan.

2.5 ROLE OF UBL BANKING SECTOR
The impressive growth and development, which UBL achieve, present it
undoubtedly the most dynamic and progressive. In a very shorter period of time it
became one of the leading banks overtaking several other older and its competitor banks.
The major contributions the bank has made are enlisted below:

ROLE
Promotion of
sports
Record setting
performance
and
commitment to
serve the
customers
Personalized
service and
dynamic
approach
ROLE
Human
resource
development
Diaries and
calendars
received prizes
too
Professional
management
Modern
banking policy

ROLE
Credit cards
(unicard-1970)
Travelers
Cheques
(Humarah-
1971)
Small loans (or)
micro credits
Utility bills
collection

2.6 FUNCTIONS OF UBL
UBL is a commercial bank, which transacts the business of banking in accordance
with the provisions of BCO, 1962. Section 7 of the Act authorizes banks to engage in the
prescribed form of business. In the light of this section
UBLs functions can be categorized as under:

F
u
nc
ti
o
ns
Agency services
General Utility Services
Underwriting of loans raised by Government or public
bodies and trading by corporations etc.
Acting as executer, trustee or attorneys for the customer.
Providing safe custody and facilities to keep jewelry,
documents or securities.
Providing specialized services to customers, and
Hajj-related services.
Collecting cheques & bills exchange from its customers
Issuing of travelers chafes to give credit facilities to travel.
Issuing of letter of credit to facilitate imports and export.
Accepting bills of exchange on behalf of customers..
Collecting interest due, divided pensions and other sums
to customers.
Transfer of money from place to place.
Acting as executor, trustee or attorneys for the customer.
Purchasing shares for the customers.
Undertaking foreign exchange business.

2.7 CORPORATE LEVEL STRATEGIES
Corporate strategy is the direction an organization takes with the objective of achieving
business success in the long term.
BUSINESS LEVEL STRATEGIES:
It means the tactics to beat the competition.
The main focus is building relationships and being known by the way they do
business. Management recognizes that a banking relationship requires
compatibility, communication, and cooperation and that each customer deserves
nothing less than full attention and available resources to meet their financial
objectives.
Core value and corporate culture is based on the belief that superior personalized
service is the most important product. Bank is in the process of getting to know
customers by name and understand their business and personal financial needs.
DEPARTMENTAL/FUNCTIONAL LEVEL STRATEGIES:
Operational methods used to implement the tactics.
To establish sound relationship with top industrial groups and various
multinationals.
To launch the innovative products as which cater to the needs of different
segments of the markets?
Bank main focus is to provide the extensive training to employees in process,
products, marketing and selling skills introduced.
To implement a performance appraisal process to provide motivation and a merit
oriented culture in the bank.

2.8 ORGANIZTIONAL STRUCTURE

President

President Secretariat

Division Division Division

RHQ RHQ

Hub Branch Hub branch

Spoke branch Spoke branch

2.9 Hierarchy of Organization

Officer Grade I
Non Clarical Staff Clerical Staff Officer Grade II Officer III
VP
EVP
SEVP
Managing Directots
Executive Committee
Board of Directors
Deputy Chaiman
Chairman

2.10 BRANCH FUNCTIONAL CHART

Area manager
Sir Ahtasham
Operational manager
Sir Zubair
Credit department (Sir Amir)
Computer department (Sir
Osama)
Account opening (Sir Khalid & Sir Babar)

Bills and remittance (Mam
Farah)
Legal department
Cash department (Sir Tymoor)
Foreign currency (Sir Fazal)
Clearing (Sir Zeeshan)
Finance (Mam Mariym)
Audit department
Employees working

2.11 BOARD OF DIRECTORS
Sir Mohammed Anwar Pervez, OBE, HPk (Chairman)
Sir Mohammed Anwar Pervez, OBE HPk is the Chairman of the Board of
Directors of United Bank Limited since December 2013. He is also the Chairman of
Bestway Group UK & its subsidiaries, which include Batleys Limited and Bestway
Cement. He is also Chairman of Bestway Northern Limited in UK.
.Mr. Zameer Mohammed Choudrey (Director)
Mr. Zameer Mohammed Choudrey has been a Member of the Board of Directors
of United Bank Limited since October 19, 2002. He is Chairman of the Board Audit
Committee. He is also a Director of UBL Insurers Limited.
Haider Zameer Choudrey (Director)
Haider Zameer Choudrey became Director of United Bank Limited in March
2014. He has the distinction of being the youngest Director of any listed bank in Pakistan.
Haider is a Chartered Accountant by profession. He represents the Bestway Group on the
Board of United Bank Limited.
Rizwan Pervez (Director)
Rizwan graduated from the University of Pittsburgh, USA in 1990 with a BSc in
Business Management.He then trained with a leading UK firm of Chartered Accountant
and qualified in August 1995. Rizwan is a member of the Institute of Chartered
Accountants in England & Wales.

Mr. Amin Uddin (Director)
Mr. Amin Uddin was appointed Member, Board of Directors of United Bank
Limited with effect from March 5, 2009. He is member of Board Audit Committee of
UBL.
Mr. Arshad Ahmad Mir (Director)
Mr. Arshad Ahmad Mir, appointed as member of Board of Directors with effect
from 26 October 2009, has over four decades of extensive corporate experience in
financial services, oil industry, management consultancy, manufacturing and wholesale
distribution businesses.
Zaheer Sajjad (Director)
Mr. Zaheer Sajjad was appointed as a Director of the United Bank Limited in
MARCH 2014.He is also a member of the Human Resource Compensation Committee of
the UBL.
Wajahat Husain (President & CEO)
Mr Wajahat Husain, the newly appointed President and CEO of UBL, has an
illustrious banking career spanning three decades in Pakistan and abroad. His last
assignment was as Senior Executive Vice President, Group Executive r esponsible for
managing the Banks International business which comprises branches,
representative offices, subsidiaries and associate companies in USA, UAE, Qatar,
Bahrain, Oman, Yemen, China, Iran, UK, Tanzania, and Switzerland. He is a director
in the Banks International Subsidiaries and Associate Company; UBL (Switzerland)
AG, United Bank UK, UBL Bank (Tanzania) Ltd and a member of the Committee of
Shareholders Representative Oman United Exchange Company LLC

SUBSIDIARIES
1. Switzerland united national bank limited.
2. United Bank AG (Zurich)
3. United National Bank Limited
4. UBL fund managers limited
5. United executors and Trustees Company limited

ASSOCIATES
UBL Insurers Limited
Oman United Exchange Company LLC

2.12 COMPANY INFORMATION
Registered Office:
13th Floor, UBL Building, Jinnah
Avenue,
Blue
Area,Islamabad.

Head Office
State Life Building No.1, I.I. Chundrigar
Road, Karachi 74000, Pakistan.

Share Registrar
M/s. THK Associates (Pvt.) Limited
Ground Floor, State Life Building No. 3,
Dr. Ziauddin Ahmed Road,
Karachi Pakistan
UAN No. 021- 111-000-322
Fax No. 021- 35655595
Company Registration
No.

0001026

National Tax Number
0801164-8
Auditors
(M/s. KPMG Taseer Hadi & Co) and
(M/s. BDO Ebrahim & Co)
Chartered
Accountants

Chief Financial Officer
Mr. Rayomond Kotwal

Company Secretary & Chief
Legal Counsel
Mr. Aqeel Ahmed Nasir

Legal Advisors
M/s. Mehmood Abdul Ghani & Co
(Advocate)
Contacts
UAN : 111-825-111
Contact Center: 111-825-888
Website: www.ubldirect.com
Email: [email protected]

3.1 DEPARTMENTS

Departments
Deposit department
Human resource department
Departments
Remittance department
Foreign exchange department
Collection department
Departments
Credit department
Clearance department

3.2 DEPOSITE DEPARTEMNT
As per the definition of Banking under see 5(b) of BCO 1992 one of the main
functions of a bank is to accept deposit. Deposits are the backbone of any bank; other
functions of the bank primarily depend upon the type and size of deposits. Function
perfumed by cash and deposit department in UBL ADDA BAZAR TANK Branch.
Fried gate branch accepts deposits under the following three accounts.
i. Current account
ii. PLS saving account
iii. Terms Deposits

TYPES OF ACCOUNT:

UBL BASIC BANKING ACCOUNT:
In this type of account minimum of two withdrawals and deposits are allowed per
month and free of charges. If customer do more transactions above the mentioned limited
then the flat fee is charged as per rates are prevailing according to bank policy. This
account is free from Levy charges in case of not meeting minimum balance requirements.

A. INDIVIDUAL ACCOUNT
In this account a single customer operates the account. The banker will run the
account according to the rules, but if the customer gives special instructions the Bank will
have to follow it.
B. JOINT ACCOUNT:
In this type of account two or more than two persons will open the account. The
account will be operated by one account holder in case of (either of the survival). If the
instructions are not given, all the account holders will have to sign the check.

NATURE OF ACCOUNTS IN UBL

A) CURRENT ACCOUNT
These are non-profitable demand accounts. The account can be opened with
minimum amount of rupees 1000/-. These accounts are usually maintained for business
purpose. Due to enormous competition UBL has introduced daily profit current account
for corporate clients called (UNISEVER) minimum balance required is Rs. 100,000/-. If
minimum balance requirement is not met, bank is authorized to recover predetermined
charges.

UBL Business Partner Account (Current Account)
UBL offers our regular customers unlimited deposits and unlimited withdrawals
and minimum credit limit of 10000/-. If reduced the amount from this said limit, the 50
rupees per month should be deducted from the account unless these are charges are
exempted in any case. The Business Partner Account offers the net banking services plus
UBL WALLET and PREMIUM CARD and other existing products.

UBL Business Partner Plus: (current Account)
UBL offers unlimited Withdrawals and deposits. With the exemption of service
charges, while maintaining the minimum balance of 25000/-. The ATM and other charges
are free according to this UBL Business Partner Plus (current Account).

B) PLS SAVING ACCOUNT
These accounts were intended with the aim of encouraging thrift among people.
These accounts can be opened either in Pakistani rupees or in few major currencies of the
world. Bank offers (4%- 6%) return on these accounts. The basic feature is the profit and
loss sharing as according to non-interest based banking system. These accounts can be
opened in the name of; individuals, joint names, trust accounts, charitable organizations.
Unlike current accounts, Zakat is applicable on local currency saving accounts. Minors
accounts can be opened on the condition that their guardians shall operate these accounts.

C) TERM DEPOSITS
Term deposits are also called fixed deposits. These can be withdrawn after a
specified period of time. Interest is paid to the depositor on all fixed or term deposits. The
rate of return varies with the duration for which the amount is kept with bank

There are two types of term deposits.
i. STDRS Special Term Deposit Receipt (local currency)
Special Term Deposit Receipts are issued for different periods of maturity ranging
from one month to 5 years, having attractive returns. There is no limit on denominations.
ii. NTDRs Notice Term Deposit Receipt (local currency)
These are term deposit with special features that these can be withdrawn any time but
after giving a predetermined and pre agreed early notice.

REQUIREMENT FOR OPENING OF ACCOUNT:
To open an account in UBL the customer will have to fill an account opening
form in front of bank officer. He has to sign in all required places in front of the officer.
Documents Required in Account Opening:
i. N.I.C Copy.
ii. Account opening form (provided by bank)
iii. Two photograph (in case of illiterate person)
iv. Specimen Signature card (Provided By Bank)
v. Cheque Requisition Form
vi. Introduction of Account.

PROCEDURE FOR ACCOUNT OPENING
Penning down information and keying it into the system does seem a simple and
tedious job but it is not. My initial five days at customer service department was the
liveliest experience of my internship. Though physically I was there just to assist the
account opening officer, but it turned out to be much more for me. That is when I first
actually imitated as a presenter of UBL to customers, when to many people, I'm their
hope.

UBL offers a variety of options for anyone; to everyone. You are an investor,
regular businessman, middle man, salaried person or a house wife; UBL serve you in
every way it can through its commendable and reliable services, because at UBL, YOU
come first.
Working at Customer Service desk, I did counter with different types of customer and
opened their accounts under the supervision of the officer. When you have the sole
responsibility to open the accounts, it's always very important to understand the needs of
your customer. Understanding the psyche of customer is very important. Until and unless
you're completely satisfied that the customer has genuine reason and need to open the
account, don't do so.

ACCOUNT OPENING FORM
In all the documentation within the bank, clearness and tidiness are the major
features. Over writing and cutting should always be avoided as it may lead to any
misinterpretation. Account Opening Form is the most important documentation when a
customer walks in for commercial banking and wants to develop a relationship with us.
In AOF, all the necessary information should be completely scrutinized before the
customer walks back. Now lets look at some of the salient requirements of AOF and
their importance.
CURRENCY AND TYPE OF ACCOUNT
It offers you all the eight different types of accounts mentioned before. First
understand why the customer is here and what type of account suits him a lot. Scale down
all the options suiting his investment or requirement and help him choose what is best for
him. Outline all the salient features of that particular account to him and make him tick
the best box.
Mark the currency box if the customer wishes to deposit in currency, in case, other than
PKR.

NATURE OF ACCOUNT
Understand and choose the desired nature of account.

INDIVIDUAL ACCOUNT (SINGLE/JOINT)
Determines if the account is personal or joint. Once again understand your customer here.
Illiterate and gullible customers should better opt for joint account for their own security.

PARTICULARS OF ACCOUNT
First of all the title of account is entered by which it will be called off. Following
is the Key/Secret Word of six characters which is mostly preferred to be mothers name
because its simple unforgettable. Key word is used to verify the customer on phone or
while other subsequent inquiries. Next comes the mailing address; where the bank should
mail anything it has to. Next is the permanent address of the customer, which should be
copied from the CNIC of the customer. E-mail address is mandatory for Net banking and
e-statement facility whereas Mobile number for mobile banking. Lastly, it is your choice
to hold your statements for collection or mail it to you.
Here make sure mandatory fields are entered and any valid contact number must be
provided.

PERSONAL INFORMATION
Following portion summarizes social with standing of a person. Applicants
name, Fathers or husbands name, gender, marital status, Date of birth, nationality,
country of residence and identification source and its number should be enter. Make
sure the source of identification is not expired. Enter NTN if available. Know the
occupation of the applicant and check the respected box.
In case there is more than one account applicant, fill in all the above mentioned
information for other applicant as well.
*Its a good practice to ask for the original identification source of the customer and pen
down the number and expiry date directly from it.

NEXT OF KIN
In case if the account holder is somehow not contacted, this portion provides
information of the person who should be contacted instead. Persons name, relationship,
address and Telephone number should be provided.


BUSINESS ACCOUNT
Determines that the party has its own entity under which the account will be
supervised. Match the respected category and check the box. The customer is marked as a
walk in, marketed or referred customer. Name of parent and other companies are entered.
Geographical area of activity is mentioned. How the business earns is mentioned to know
the business type. Then similarly mode of transaction, ultimate beneficiary, initial deposit
and approximate maximum value of transaction per month is recorded.
*Finally after fulfilling all the necessary requirements, the officer here by recommends
to open the account of the customer.

PARTICULARS OF ACCOUNT
Here the information about the business is filled in. Title of account,
company/business name, and nature of business, office/mailing address, head office
/registered address, office email and NTN are mandatory information required for
business account. CNIC is required in case of sole proprietor ship and information of few
persons are required who can be contacted in case of companies. Here we need to know
that who will be operating the company accounts.

ADDITIONAL INFORMATION

Existing relationship with UBL
In case if the customer already has some relationship with UBL, it should be
mentioned here. This is just in case to formally know and cross check the customers
provided information.
Existing relationship with other banks
This is to know what relationship the customer has with other banks, if any.

UBL Wallet ATM/Debit Card
Here first define your customer what ATM card is, what are its features and
what is the difference between its different options. Enter the name of the customer in
Name on card field. Then is the option of supplementary ATM card. A customer can
issue up to 9 supplementary cards. If supplementary card is required, a UBL Wallet VISA
card requisition form is filled in which details about supplementary card holders is
penned.

Zakat Deduction (only on PLS A/C)
PLS account holders can directly pay Zakat from their accounts, if they are
willing to.

Other UBL Products
Account holders can opt for UBL Netbanking, UBL Orion, Credit card, Personal
loan, Car Financing, Mortgage and Business Finance.

Operating Instructions
This identifies the signing authority of the account. It can be operated singly,
either or survivor, jointly, mandate or by any other in special cases.

Statement of Accounts
This specifies how early the account statement is required. It can be daily,
weekly, monthly, quarterly or semi annually. Customers can choose Mail or e Statement
or both.

Special Instructions
Special instructions, if any, are registered here. It usually certifies further
theoperating instructions of the account.

Account referred by
Detail of person referring the customer is entered here.

Terms and Conditions
These terms and conditions outline the policy of bank about its accounts
regulations. Abidance by state bank laws and banks policy is compulsory and customers
signature at the end of the statement is his abidance by the law

Indemnity and Undertaking
Here the customer agree by the bank policies and agree to its terms. Applicant
signs the undertaking and officially agrees to be a part of UBL.
*As an account opening officer, you must enclose all the signatures and should verify
them. Every cutting on the AOF should be verified by customer's signature, and officer
should verify the customer's signature.

FOR BANK USE ONLY

Special Category of Account
If the account is of minor, UBL staff, Illiterate, Blind or Registered Alien, it
should be checked respectively. Passport size Photographs are required in this case and
customer can only make the transaction personally. Make sure signatures are not too
simple or shaky. If so, again passport size photographs may be required and transactions
can only be made personally for customer's own security.

Service Charges
This is the minimum balance penalty which is applicable to all except students,
mustahiqueen of zakat and government employees' salary or pension purpose accounts

Know You Customer
Here's an assessment that the account opening officer do in order to understand
some aspects of the new customer relationship.

Individual Account
The customer is marked as walk in, marketed or a referral; he/she is a public
figure or not. Moreover what will be the customer's sources of funds? What would be the
usual mode of transaction and what would be the intentions of account with UBL. Who
will be the ultimate beneficiary and what the approximate value of transaction per month
is.

DOCUMENTATION TO BE OBTAINED

Individuals
Photocopy of CNIC/Alien Registration No./ passport
Photocopy of service card/employment card/student card

Sole Proprietorship
As above and NTN/Sales Tax Registration Certificate
Application to open account on sole proprietorship letter head
Rubber stamp of sole proprietorship is to be affixed on AOF and SSC.

Partnership
Photocopy of CNIC of all partners
Application to open account on partnership letter head signed by all
partners
Attested copy of Partnership deed
Copy of Registration certificate with Registrar of Firms
Authority letter in favor of person is responsible to operate the account.
Rubber stamp of partnership is to be affixed on AOF and SSC.

Joint Stock Companies
Certified copies of Resolution of BoDs for opening of account and
certifying the person responsible to operate it

Memorandum and Article of Association
Certificate of Incorporation and Commencement of business
CNIC of all the directors
NTN/Sales Tax Registration Certificate
Rubber stamp of Company to be affixed on all documentation

Clubs, Societies and Associations
Certified copies of:
Certificate of registration
By-Laws/Rules and Regulations
Resolution of governing body to open an account, certifying the person
responsible to operate it.
NTN/Sales Tax Registration Certificate
Rubber stamp of Company to be affixed on all documentation

Agent Accounts
Certified copy of 'Power of Attorney'
Photocopy of CNIC

Trust Accounts
Photocopy of Certificate of Registration
Photocopy of CNIC of all trusties
Certified copy of instrument of trust

Executors and Administrators
Photocopy of CNIC of Executor/Administrator
Certified copy of Letter of Administration or Probate

SPECIMEN SIGNATURE CARD (SSC)

Whenever a customer visits us to make a transaction, we cannot all the time verify
his signature by AOF. For this purpose SSC is signed and then scanned into the system.
So whenever the signature requires verification, it can be done through systems next to
employees. SSC comprises of Branch code, A/C No., date, customer's name, special
instructions and two signatures.

CHEQUE BOOK REQUISITION FORM
At the opening of account, this form is filled, identifying the account number,
number of leaves and whether to hold cheque book for collection or to mail it.

LETTER OF THANKS
A letter of thanks is dispatched to the mailing address of the new account holder
and its copy is attached to the AOF. Actually this letter of thanks is for the confirmation
of this fact that customer actually lives at the mentioned address.

ATM BALANCING PROCEDURE
The balancing of ATM maintained in those branches maintaining the UNIBANK
2000 system. The branches which are converted to SYMBOLS have no need of process
of ATM balancing. The cashier put cash in the cassettes of ATM Machine in early
morning. Then the Role of previous days off line and online transactions is given to
RBO. The RBO check the role, and mark those transactions, which have icons of
withdrawals and approved together, put offline transactions in the system and updated.

The online transactions are checked through the list and role provided from the
ATM Machine. The Cash remaining in the ATM machine balanced daily. The figures are
matched that how much cash is uploaded in the ATM machine, and how much remaining
in the ATM.

Performance Appraisal
Performance appraisal is the process of assessing qualitative and quantitative aspects
of an Employees job performance. The UBL performance appraisal process answers the
following questions:
How well am I doing?
How can I do better?
How well are our employee doing individually and collectively?
The appraisal program of the bank has different methods and different categories of
employees. For clerical staff, they are using job description method. For managers they
use performance planning and coaching evaluation (PPC & E) programs. It is similar
concepts like management by objective.
3.3 REMITTANCES DEPARTEMNT
Current business trends demand fast movement from one geo-graphic end to
another. Latest technology and telecom data transmission has made it possible to make
such transactions with in minutes. UBL ADDA BAZAR TANK Branch Remittances
Department performs following functions.
Meanings of Remittances
Remittance is transfer of funds from one place to another or from one person to
another.
A Remittance is an important service provided by banks to customers as well as
non-customers. Since it is not a free service it is a source of income for the bank.
Parties involve in remittances:
Four parties involved in remittance:-
Remitter
Remittee
Issuing Bank

Paying Bank
Remitter
One who initiates, or requests for a remittance. The remitter comes to the issuing
or originating branch, asks for a remittance to be made, and deposits the money to be
remitted. The bank charges him a commission for this service. He may or may not be the
branchs customer.
Remittee
A Remittee is also called the beneficiary, or the payee. The person in whose name
the remittance is made. A remittee is also the one who receive the payment.
Issuing Bank
The bank that sends the remittance through demand drafts, telegraphic transfers,
or Mail Transfers is known as issuing bank.
Paying Bank
Paying Bank also knows as the drawee bank and the bank on which the
instrument is drawn. It has to make the payment (usually located in a different city or
country).
Kind of remittances
Transfer within the branch
Transfer from one branch to another
Transfer from one bank to another bank in the same city
Transfers from one bank to another bank in the different cities.

CASH OVER THE COUNTER
The COC is used for the encashment of the Foreign Remittances. The amounts
which are transferred to UBL from different countries are enchased through that
procedure. The following details are required from the customer, the Original CNIC with

Copy. The supervisor asked the customer from where the remittance received and who
send.
The payment is only given to those persons who provide the name of sender and receiver
along with the original CNIC.

1: DEMAND DRAFT (D.D)
D.D is issue by branch of the bank drawn on other branch of the same bank.

PROCEDURE FOR D.D
Purchaser is asked to fill in an application form duly singed by applicant. Three
things should be maintained in the form.
Name of Payee
Place of payment
Amount of D.D
Commission is charged on D.D as bank income. The applicant is asked to deposit the
cash specified on the application form to the teller. After depositing cash the remittances
in charge prepare a D.D. That is singed by two officers must having power of attorney.
Bank also provides this facility to public who do not have account in UBL. They will
have to submit a N.I.C copy along with D.D application form.

DEMAND DRAFT RATES
DDs are always a secure way of paying remittances in other cities. Both account
holders and walk in customers can avail the facility of DDs.
Charges for DDs are:
When DDs are issued, head office accounts are debited and remitters account is
credited, on presentation, head office account is credited and beneficiary's account is
debited.

2. TELEGRAPHIC TRANSFER (T.T)
Transfer of funds to another branch of the same bank with the help of test
numbers. If the test number agrees the bank make payment to the party.
PROCEDURE FOR T.T
The procedure for T.T is same as D.D. But in D.D it is given on a printed-paper and
singed by two officers but, in T.T, only test number is given to the customer.

3. PAY ORDERS
Pay order is banker cheque issued favoring a named beneficiary. Application for
the PO stamped and the customers account balance is checked or cash received for the
amount PO and other charges. Pay Order leaf is typed and crossed if required and signed
by two authorized persons. Thereafter it is delivered to the customer. PO can be cancelled
at original purchasers request in writing and surrender the instrument, which then
marked canceled along with other documents and prior entries.

RUPEE TRAVELER CHEQUES
UBL has launched R.T.C Brand named Hamrah in November 1996. These are
issued to applicants with varied denominations without excise duty and commission.
When issued HO account is credited and on encashment the same account is debited.
RTCs lost cases are communicated to HO and client is either repaid or new RTCs are
issued to him/her.

SECURITY DEPOSIT RECEIPTS (SDR)
Security deposit Receipts are your safe way of making payments. Not only its
free of cost for A/C holders, it also offers you the best liquidity solution as the cash
continues to be with you until and unless your deal gets final and you pay off. In case of
cancellation, it's also free of cost for A/C holders and their amount is returned to their
normal account balance.
*for non A/C holders, Rs. 250 is charged. Duplicate fee is Rs. 250 (flat)


PAY ORDER RATES
POs are another safe way of paying your remittances within the city. They are
payable at any branch and then are forwarded for clearing. There charges are

Issuance of PO Rs. 75 for A/C holders
Rs. 250 for Non A/C holders
Cancellation of PO Rs. 75 for A/C holders
Rs. 250 for Non A/.C holders
Issuance of duplicate PO Rs. 150 for A/C holders
Rs. 300 for Non A/.C holders

In case of PO, remitter account is credited and PO A/C of branch is debited. At
presentation, Beneficiary is debited and PO A/C of branch is credited.

UNI REMOTE
Uni Remote is the online facility of depositing cash to any account in UBL. With
on-line banking, you are connected to the complete network of UBL all over Pakistan.
Uni Remote charges are Rs. 200 for cash withdrawal and Rs.100 for cash deposit.
This is a new tool for the transfer of money. This is a step towards the online banking
taken by UBL. This tool transfers money from one branch of UBL to other through
electronic transfer. The customer will have to fill the deposit slip. On the slip he will
write the name and account number of the person to whom the money will transfer, the
name of the branch is also written. The amount is deposited with teller and the receipt is
shown to remittance in chraged. One I.D copy is also attached with slip. The remittances
in charge will transfer if by using device (computer) through online service. The fund
transfer is must be supervised by another authorized officer. Every time for this is five
minutes.


Major Withdrawals
The withdrawals made by the customer in previous day, over one million are
noted here, in the sheet, after completing signatures of supervisors and manager. It is
filed.

Daily customer transactions
In this sheet all the daily customer transactions are noted, after signing it is also
filed.
Subsidiary Ledger
It is also Called 110. It is also completed daily.
Daily Over Rides
It is completed daily also.

The operational Works at start of the day
The checking of opening of cash, How the cash counter is opened , how the cash
is put into the counter, the opened cash , is recorded in the registers, the CSOM make
sure that the cashier will not take unsorted cash. The cameras and metal detector and
other electronic instruments are working properly.

Ending the Day:
In end of the day the QUIEMATRIC which is token a machine, we check its
time and it makes all the day. The cash is closed at what limit, and how much sorted and
unsorted cash left in the locker, noted in the relevant Registers.

3.4 FOREIGN EXCHANGE DEPARTMENT
The main functions of foreign exchange department are:
To open the letter of credit (LC) facilitates imports and export.
This department also deals with foreign currency accounts.

This department deals with inward & outward remittances.
This department also performs some general functions relating to foreign
exchange e.g. private travel exchange quotas, business travel quotas etc.
This department also deals in foreign currency accounts.

Procedure to open an Account in Foreign Currency
There are two types of foreign currency account:

For Residents
Pakistani resident can open the account in foreign currency and following documents are
required.
Photo copy of ID card
Foreign exchange
The remaining process is same as in the case of local currency account.
For Non Residents
Following documents are required:
Photo copy of passport
Photo copy of Visa
Further process is same

Closing of the Account
The same procedure can be used to close this account as in case of local account.

Advantages of Foreign Currency Account
No withholding tax
No compulsory deduction of Zakat
No wealth tax is taken
No question about source
Credit card and loan facilities are available
The depositor can get 75% of the loan of their deposits as a loan at low rate.

No permission of any authority
It saves from devaluation

Foreign Remittances
To transfer money abroad and to bring the funds in country remittances are used.
It is of three types.

Foreign Currency Demand Draft
The sender can make the foreign currency payment by purchasing a bank draft
from branch. Then it is dispatched to receiver. He can claim it from responding branch.

Foreign Mail Transfer:
The UBL issues the order for the payment to the responding branch by mail. After
receiving the letter the responding branch can make the payment.

Foreign Telegraphic Transfer
The branch manager sends a telegraphic message to the responding branch to make the
payment to the ultimate client.

Letter of Credit
LC is a written undertaking by a bank given to the seller, at the request and on
the instruction of the buyer to pay at sight or at a determinable future date up to a stated
amount within a prescribed time limit and against stipulated document.
Parties involved in LC are;
Buyer (Applicant)
Seller (Beneficiary)
Bank (Issuing Bank)

Condition for Operating LC

Importers have to fulfill the following conditions before submission of credit
application.
Importer must be Pakistani
Party should be the a/c holder of that bank where he will open LC
LC should be established within 60 days from the date of issue of license.
Merchandise can be shipped within 12 months from the date of issue of import
license.
Insurance amount should be covered locally.

3.5 COLLECTION DEPARTMENT
Collection department also plays an important role in the operations of trade finance
of UBL. This facility is also provided to the exporters. The difference between letter of
Credit and Collection is that letter of credit when accepted is become the liability of bank
while collection is not the liability of the bank but upon the performance of the exporter
and the importer. It is not a conditional under taking by the bank. Collection is the
handling by bank of documents, in accordance with instructions received, in order to:
Obtain payment and /or acceptance, or
Deliver documents against payment and /or against acceptance, or
Deliver documents on other terms and conditions.

For the purpose of collection department, there are two types of documents:
1. Financial documents: -means bill of exchange, promissory notes, cheque, or other
similar instruments used for obtaining the payment of money.
2. Commercial Documents: - means invoices, transport documents, documents of
title, or other similar documents whatsoever, no being financial documents.
3.
There are two types of Collection:
1. Clean collection, and

2. Documentary collection.
Both these collection, methods are performed by the collection department.

1. Clean collection:
Collection of financial documents not accompanied with commercial & transport
documents are called clean collection e.g. collection of Cheque demand draft, dividend
bill of exchange promissory note etc.
2. Documentary Collection
Documentary collection is the collection of:
Financial documents accompanied by commercial documents ;
Commercial documents not accompanied by financial documents;
Documentary collection is also an instrument available to the Exporters.

Method of payment
The payment from the importer through yet presenting bank may be received one
of the following ways;
Payment without Delay
Amounts collected (less charges and /or disbursements and /or expenses where
applicable) must be made available without delay to the exporter, in accordance with the
terms and conditions of the collection instructions.
Payment by Acceptance
If the payment is by acceptance then the bank will accept the draft and made the
payment when it will be received from the importer. When the payment is received it is
credited to the account of the exporter and the account of the bank is debited.


Outward bills for collection
Meaning of OBC:
When an instrument is drawn on a bank, which is located outside the city, its
proceeds can be collected through a mechanism called Outward Bills for Collection
(OBC).
Features:
Remunerative
Transfer of funds between cities
Collecting Bank work as an agent
Collecting Bank is the holder in due course
For OBC party must be the account holder of UBL.
Inward Bills for Collection
If any other bank sends a cheque of United Bank Limited, it is Inward Bill for
Collection. UBL remits money after checking the balance of the customer account.
The process of collection starts when the cheques of Bank UBL are received from
other banks. Then these cheques are sent to the Head Office Karachi, which sends the
cheques to SBP for clearing and get the confirmation of cheque and credit advice. Main
activity of clearing is performed by Head Office, which contacts other banks through
SBP.
3.8 CREDIT DEPARTMENT OF UBL
Credit extension is the principal function of a bank, through which pace of
activity is accelerated in the various sectors of economy. Also the indicators, which
mainly reflect the high quality of banks management, are its prudent financing decisions,
proper control of finance and prompt recovery. In this regard the credit policy of a bank

play a very important role as it provides the overall framework, responsibilities, and
authorities and facilitates of decision-making. Credit department performance is subject
to a defined policy on credit control exercised by the SBP. SBP affect credit decisions
through the weapons of bank rate, open market operations, variable reserve requirements,
selective credit restrictions and prudential regulations.

UBL CREDIT POLICY
Credits operations are undertaken in accordance to banks credit policy. The
policy strictly are prohibits violation of SBP/Local central banks rules and suggest
financing of self-liquidating, cash flow supported and well collateralized transactions,
which equate the principle of lending (safety, liquidity, dispersal, remunerations and
suitability).

FACILITIES OFFERED BY UBL ADDA BAZAR TANK BRANCH
Running Finance (for one year)
Demand Finance (3to 5 years)

PROCEDURE FOR FINANCING FROM UBL
When a party comes for financing, banker will ask the following questions.
1. PURPOSE
In this the party mentions the purpose; they want to apply for the finances. No
lending is done without purpose.

2. BUSINESSES
The party must have some specific running business i.e. general merchandise,
construction business etc.
The second question arises of the cash flow that how much flow is generated by the party
from the current business.

3. SECURITIES
The bank will secure itself against the lending. There can be two type of security.

Commercial
Residential
The bank prefers commercial security. Relationship Manager (RM) is mainly
responsible for the relationship between the banks and party. He acts like a bridge
between the two.

In the first instance, the party would prepare the following property documents.
AKS Shajarah
Naqsha Tasveeri
Approved Building Plan
Tresh fard
Intaqal Naqal

The party is asked to contact any valuator on the panel of UBL. ICM&L and Tajak
Builder are on the panel of UBL ADDA BAZAR TANK Branch. The valuator will visit
the site and set market value and FSV of the said property. He prepares report of at least
three pages. These documents sent for one page legal opinion to any layer on the panel of
UBL. Having clear legal opinion (RM) is start preparing credit Approval 30(CA). The
documents are singed by the RM & AM and then forwarded to UBL RHQ in Peshawar.
Here SRM examines the CA if he found some exception he will send it back to the
respective Rm.

The main features of this department are
It provides loans to different organizations and against these loans kept securities;
Proper judgment of these securities is also their duty. Proper judgment of securities is the
most crucial event in the process of lending. Because in the case of default securities are
the only compensation to the bank. Default mostly is the result of improper judgment.
In the process of judgment they follow the following principles:
1. Safety

2. Character
3. Capacity
4. Capital
5. Liquidity
6. Dispersal
7. Remuneration
8. Suitability

Cash Finance/Credit
Following are the characteristics of cash finance:
Cash finance is a very common form of borrowing by the commercial and
industrial concern.
This facility is allowed to a customer up to a certain limit.
This facility allow against pledged hypothecation and produce of merchandise.
The borrower refers this form of lending to paying mark-up/service charges of the
actual amount he utilized.
If the borrower does not utilized the full limit the banker has to bear the loss on
the unutilized amount. in order to offset this loss, the banker has prepared a
suitable clause on the cash finance agreement according to which the borrower
has to pay the mark up on one third or one quarter of the amount he has allowed
even he does not utilized it.
Overdraft
UBL provides this form of lending service, when a customer/borrower requires
temporary accommodation. UBL allows withdrawals on his account indexes of the
balance, which the borrowing customers has in credit. This facility is provided against
collateral securities, and known as secured overdraft it can also availed against personal
security, if a person is reliable to UBL And known as clean overdraft the customer has
to pay interest/services charges only on the balance outstanding against him. The main

difference between cash finance and overdraft is that cash finance is used for long term,
while overdraft is a temporary accommodation.
Loan
Loan is the borrowing of a fixed amount repayable either in periodic installments or in
lump sum at a fixed future time. Loans are of the types;
Secured loans
Unsecured loans
Clean loans.

There are two types of advances, which UBL provides:
Fund Base Advances
Non-Fund Base Advances

Fund Base Advances
These are those advances in which actual payment of funds is involved. These funds
again have been divided into two types.
Running Finance or Cash Finance
This is a loan, which is provided only to the running businesses to meet their working
capital requirements. The bank decides limit on continuing bases. It means that the
customer can draw the amount, as much he is required as approved by the bank. He can
deposit and withdraw the amount on his account. The markup is payable on the
outstanding amount only.
Demand Finance Facility
The bank on demand provides this facility. It means that the bank pays the full
amount to the client and mark up is also payable on the full amount. The bank considers
the full amount outstanding. The bank provides also facility of loan to its own employees

against the security of their immovable property. The rate of mark up on these advances
is lesser as compared to the rate of mark up on the other advances.

Non- Funded Based Advances:
There are two types of this loan
Issuance of Letter of Credit
Issuance of Letter of Guarantee

3.9 CLEARANCE DEPARTMENT
CLEARING OF BILLS
Bank can make payments of only open Cheques on the counter payment. Payment of
cross Cheques cannot be made on counter its payment is possible through 31collecting
bankers. The function of clearing department is divided into two main classes.
Inter Branch Transaction
Inter Bank Transaction
PROCEDURE OF CLEARANCE OF CROSS (CHEQUES)
Whenever bank receives a cheque of other bank from the client he cannot make
payment on the counter. The first job banker has to perform is to put a special crossing
across the face of cheque. By special crossing cheque is secured. If it is stolen the paying
banker would not suffer because of non-endorsement. On the back of the cheque the
stamp is made of payee account will by credited on realization. It is signed by authorized
person. The half part of slip is given back to the customer. after the special crossing and
is necessary endorsement the banker write the amount along with cheque number on
paper and attach with each slip. Then again on the smile paper the amount of all the
Cheques along with the bank names are added and attached to cheque presented for
clearing, and advice is also attached with the cheque presented for clearing. The
following entry is passed on sending the cheque for clearing.

CLEARING OF CHEQUES/OUTWARD CLEARING
My experience at ADDA BAZAR TANK branch started from the clearing
department. Right in the morning cheques collected from the drop box simply flood over
my table. According to all I learnt through listening, viewing and questioning is
summarized below.

DOCUMENTATION OF CONSUMER CHEQUES:
All the cheques collected are first categorized into
Credit Cards
Auto Loans
Personal Loans
Cash Line

Having categorized, firstly loan number of each cheque is verified. For the verification of
the prescribed loan number, following ledgers are credited
Credit Cards G3540223
Personal Loans G3540627
Auto Loans G3540601
Cash Line G5610014 (Head Office)
Verified cheques are then validated before being documented into drop box collection
sheet for our daily drop box collections record. To anticipate the approval of cheques, we
need to validate some important specifications of all the cheques. They are:
Date: Cheque should not be postdated or out of date.
Figures: Amount in words and figures should match.
Signature: Drawers signature must be clear.
Intercity: Cheques must not be of other cities.
Payees Name: Payees name should be written, and endorsement should be as
per the beneficiary of the cheque.
There should be no over writing in everything penned.

All the filtered cheques are then entered into the collection sheet in which following
information is entered.
Cheque No.
Name of bank
Name of Customer
Loan No.
Amount
Document No.
All the documented consumer cheques are then posted into the system.

POSTING OF THE CONSUMER CHEQUES
For clearing, we opt for second option in banking category, and after entering the
posting date, clearing date and transfer delivery date, we opt for single entry option. Now
all the cheques are credited in the clearing schedule in their prescribed ledgers.
Credit Cards G3540223
Personal Loans G3540627
Auto Loans G3540601
Cash Line G3590991 (Miscellaneous)

CREDIT CARDS CHEQUES G3540223
During the posting, following fields are keyed in
1. Debit/Credit
2. Account Number
3. Bank
4. Branch
5. Credit Card Number
6. Cheque Number
7. Amount

PERSONAL LOANS CHEQUES G3540627
1. Debit/Credit
2. Account Number
3. Bank
4. Branch
5. Transaction Type (Loan Repayment)
6. Personal Loan Number
7. Cheque Number
8. Amount

AUTO LOANS CHEQUES G3540601
1. Debit/Credit
2. Account Number
3. Bank
4. Branch
5. Transaction Type (Loan Repayment)
6. Auto Loan Number
7. Cheque Number
8. Amount

CASH LINE CHEQUES G3590991 (MISCELLANEOUS)
1. Debit/Credit
2. Account Number
3. Bank
4. Branch
5. Cheque Number
6. Amount

Cash Line Cheques are posted into Miscellaneous Sundry account when they are
forwarded for clearing and, on clearance; they are transferred to head office (G5610014;
Tr # 60) where all those cheques are credited to their respective accounts.

CUSTOMER ACCOUNTS:
1. Debit/Credit
2. Account Number
3. Bank
4. Branch
5. Cheque Number
6. Amount

After entering the details into the system, we can accept, modify and reject it. As soon
as entry is accepted, computer generated document number is assigned.

In case further modification is required, it can be done at clearing modification
option under clearing schedule.
Following the completion of posting of cheques, an add list is prepared to
calculate the total amount of cheques which is further cross-checked with the clearing
display on the system. As cheques can be either of Rawalpindi or Islamabad, so separate
add lists are prepared and enclosed with the cheques in the NIFT envelopes.
In other case, if cheque is of city other than Rawalpindi and Islamabad, it's either sent in
intercity clearing or as OBC (Outward Bill Collection). Intercity is presented through
NIFT whereas OBC is either sent through Courier or Dispatched to the desired branch of
the bank.

Types of cheques Stamps over cheques Endorsement
Local Consumer Crossing
Clearing
Received Payment

Local Commercial Crossing
Clearing
Payee's Account Credited
Intercity Crossing
Clearing
Intercity Clearing
Payee's Account will be
Credited upon realization.
OBC Crossing
OBC Number
Payee's Account will be
Credited upon realization.

CLEARED CHEQUES
Now the next day when clearing is confirmed by NIFT, respected accounts are
debited. We go into the banking option and in transfer; we debit all the respected
accounts. Same is the case with intercity and OBC cheques.
In documentation, debit and credit vouchers are made, which show total amount of
clearing as per day.

RETURNED CHEQUES
All the cheques which are returned, due to any reason, are then reversed. They are
debited back in the clearing schedule. All the returned cheques are documented in the
cheque return registers and all the account holders of returned cheques are charged with
service penalty.
All the vouchers are signed by the designated officer and all the entries over 50,000 are
supervised

4.1 Product and services
UBL Complete range of Product
UBL has the vast range of products and offering products for both cooperate and
retailing sector in Pakistan
4.2 RETAIL BANKING PRODUCT:

DEPOSITS AND COMMERCIAL PRODUCTS
UBL Business partner--Current account
UBL business Partner Plus- Current Account
Foreign currency term deposit certificate
UBL First Minor Account
Rupee transactional account-PLS Saving account
UBL Uniflex
UBL Unisaver
Certificate of Deposit
Foreign currency savings
LOANS AND CARD
UBL Cash Line
UBL Address- Home Finance
UBL Drive- Auto Loan
UBL Agricultural Loan
UBL Small Business- SME Loan
UBL Sillah Mila
UBL Credit Card-Chip Credit Card
UBL WIZ- Prepaid Debit Visa Card
o Shopping Card
o Music Card

UBL WALLET- ATM Card
UBL PERDAIS- CARD
WATAN Card.

4.2 CORPORATE PRODUCTS:
CORPORATE FINANCE
Loan Syndication
Structured Finance
Term Finance certificates.
Credit Extensions
Over Drafts and Demand Drafts
Working Capital Finance
Import Financing
Receivable discounting
TRADE
Documentary Letter of Credit
Documentary Collection
Funds Transfer
Investment and Cash Management
Current and PLS accounts.
Cash Collection
Utility Bills collection
UBL OMNI

4.4 CONSUMER BANKING
You as an individual can gain and benefit the most through UBL Consumer
Banking. In UBL you get friendly, efficient and attentive personalized banking services -
a unique banking relationship experienced by each UBL client. You can utilize the
following services.

UBL ADDRESS
Owning a house of your very own is a cherished dream. A
lot of planning and hard work is involved in making this dream
come true. That is why, at UBL we aim to make your decision
easier, by offering you the right ingredients that can help you
realize your dream with absolute convenience.
UBL Address empowers you to become the proud owner of a home
by offering a variety of product and pricing options that are flexible yet affordable. So
choose the best product option and pricing to suit your needs. All product options are
amortized and range over a tenor of 3-20 years.

BUYING A HOME
Why rent when you can buy? Buying a home of your choice has never been so
easy. With a maximum financing limit of 80% you can easily buy a house or apartment
that best fits your requirements. So go ahead and start the search for your dream home
because with easy and affordable installments you need not think of renting a house when
you have hot UBL Address.

UBL BUSINESS LINE
UBL Business lines a complete solution to all
your Business Financing needs. With UBL Business
Financing facility, you can now take your business
to greater and newer heights, and achieve the level of
success that you truly deserve. UBL Business line is a running Finance facility that not

only provides funds for growth but also enables you to capitalize on profitable
opportunities. With UBL Business line, now you will surely say. Ab Hui Kamiyaabi
Meri Manzill.Now, UBL Business line credit line is here to solve all your cash flow
problems. You can utilize up to Rs.10 million with the help of which you now focus on
your business expansion and growth.

UBL CASH LINE
UBL Cash line is a flexible loan that provides you cash up to
Rs.500, 000 without any security requirements. It empowers
you to take control of your finance. UBL Cash line is aimed
to make your life easierZINDAGEE ASAAN. Whether
you are a salaried individual or a businessperson.

UBL DRIVE
Accelerate your life; Drive the way that suits you! UBL Drive is
a unique auto financing product which offers you features,
option and flexibility unmatched by any other bank, because at
UBL, You come first.

UBL MONEY
UBL money, the personal installment loan from UBL provides you with power,
Control convenience and the flexibility to manage your financial requirements and realize
on your dreams. Its about buying new furniture or marriage expenses, financing the
education of your child or enjoying vacations abroad! UBL Money caters your needs
handsomely.

4.5 Complementary services
UBL Silah Mila
UBL has designed a campaign for the first time in
Pakistan to acknowledge and reward customers who have
shown excellent performance in their loan repayments with
other banks.

UBL NET ANKING
UBL Net Banking is an internet banking portal offering a simple, convenient and
secure method of accessing bank accounts on the internet. Its never being so easy to
access and manage your finances in a secure real-time, online environment

UBL E-STATEMENT
UBL is pleased to announce the launch of the UBL e-statement facility which it
easier for you to get your statement of accounts and automated transactional debit/credit
alerts right into you inbox.

HAMRAH
UBL has always been adding the forefront in identifying and meeting the
financial needs of its valued customers. UBL was a pioneers an introducing Rupee
Travelers Cheque facility in Pakistan, as early as 1971. In continuation of the same
tradition, UBL in the shape of, HAMRAH Rupee Travellers Cheque enhances this
facility for the convenience of its valued customers by offering denomination up to
Rupees 10,000.UBL has a 24 hours customers help-line, providing its customers with
round the clock tele-verification of HAMRAH Rupee Travellers Cheques.


UBL Credit Card

UBL Wallet Visa

UBL Wiz
.

UBL Platinum

4.6 COMMERCIAL BANKING SERVICES
To stand tall among the worlds leading banks, UBL has developed a YOU
attitude to understand its customers well. When you talk, we speak for you. For small and
middle size investors, UBL has so much to offer, so much to deliver. You live the way
you want; we will always be shadowing you. Walk in to any nearest branch of UBL,
enter the world class bank and let us serve you with what you need.

SMALL BUSINESS SCHEME
Under the Small Business Scheme, UBL is providing loans on easy terms to those
who wish to set up their own small-scale business. This scheme is aimed at spreading
prosperity in the country by reducing unemployment. As more and more people start their
own industrial units, the country will move steadily towards economic self-reliance.

INVESTMENT AND SAVING ACCOUNTS
At UBL, we offer you the most beneficial and secured financial investment and
saving options. You can choose from the following list of accounts anything that serve
your needs best.

UBL BASIC BANKING ACCOUNT
Exempted from Minimum Balance charges, UBL BBA holders can carry out two
deposits and two withdrawals each month as per the bank policy. Through 24hrs ATM
services, they can carry out transactions as and when desired, staying in the daily
withdrawal limit.

UBL BUSINESS PARTNER (CURRENT ACCOUNT)
For our regular customers, we offer the ultimate option, UBL Business Partner
(Current Account). With unlimited deposits and withdrawals, we offer you convenience
of UBL net banking, UBL Wallet, UBL Orion and other exciting consumer products.

Customers are liable to maintain minimum balance of Rs. 10000 to avoid the minimum
balance charges until and unless they are exempted from it.
Remember! We are not just a business; we are your caretakers; we know what you need.

PLS UNISAVER
Let your savings earn you bucks. PLS UniSaver offers you semiannually profit
disbursement with profit being calculated upon average monthly balance.

PLS UNISAVER PLUS
Big amounts earn you
big; but with PLS UniSaver
Plus, we make it bigger for
you. With deposits starting
from Rs. 25 million, we offer
5.00% but more you put in,
more profit rate will we offer.

UBL RUPEE TRANSACTION ACCOUNT (PLS SAVING)
Have your money box at UBL! Put in your savings and let us earn you 5% p.a.
over your daily savings.

UBL UNIFLEX
Have couple of thousands spare? Come invest in our
UBL UniFlex Accounts, we will make you earn
handsome.
With UBL UniFlex, we serve you with fix profit
rates at maturity.

Avg Balance per month Profit Rate*
Rs. 25 million 5.00%
Rs. 25 million to Rs. 100 million 5.10%
Rs. 100 million to Rs. 250
million
5.20%
Rs. 250 million to Rs. 500
million
5.30%
Above Rs. 500 million 5.50%
* Profit rates are for the month of July only
Amount Profit Rate
1000-50000 7.0%
50001-100000 7.25%
100001-200000 7.5%


E- TRANSACTION (CURRENT ACCOUNT)
In the era of glooming computerization, even Chicago, Tokyo, Sydney, all are
seconds away from you. Internet has turned distance into time, and we have turned your
account into a sheer pleasure. Now sitting at home, or at office or anywhere in the world,
we offer you a wide spectrum of world-class electronic services and banking products
each time you log in. Use your account like a regular account plus use the premium
Internet & Mobile banking services for Instant Fund Transfers, Instant Shopping, Instant
Bill payments, Instant Mobile top ups, Alerts, Statements and much more. You love
surfing, come surf with UBL.

UBL PROFIT COD
Make fix investment with us, choose your profit option, and we will serve you the
best rates in Pakistan. What if you earn at 16.25% p.a. Stop imagining, come invest in our
Certificates of Deposit! At maturity, we offer you the following rates:
Omni-Branchless Banking
UBL Omni now brings a host of banking services to your nearest "Dukaan". UBL
Omni Dukaans are located in more than 650+ cities and towns across Pakistan. This is a
major milestone in the evolution of banking that will reshape the traditional banking
model by offering basic banking services across urban and rural Pakistan, well beyond
the regular branch networks of banks.

5.1 SWOT
The word SWOT consists of four words, which are stands for Strengths, weaknesses, opportunities and threats,
respectively.
Through the SWOT Analysis technique one can analyze the present condition and performance of a given organization
and can prepares plans for the future.
In the SWOT Analysis of UBL the following points can be discussed in brief.
5.2 STRENGTHS
Its Strengths are as follows.
Having reputation for high customer banking services.
3
rd
largest Bank of Pakistan
Easy asses to branch locality.
Large network.
Professional and skilled management.
Well co-coordinated branch office system.
Experienced personnel.
Strong loyal customer group.
Excellent competitive skills.
Sound level of deposits.
Excellent promotional and marketing campaigns.
5.3 WEAKNESSES
Weaknesses is something an organization lakes at doing that for UBL these are.
Customer having accounts with small amounts are not given the same
attention given to those with large amounts.
Security system of UBL main branch Tank very careless
Most of employees are overloaded with the work and promotion is also not
timely.

Low salaries to staff.
Political inter presence.
Low market value of the banks stock.
Bad recovery of overdue advances.
Un-satisfactory working condition of branches.
No availability of sophisticated equipments in branches.
In efficient system of recruiting and selecting of personnel.
5.4 OPPORTUNITIES
An external situation, which an organization can benefit from is called opportunity.
Increase the serving customer group.
Due to efficient and experienced management group, UBL can improve and
expand its foreign operations successfully.
Enter new markets.
Increase product line to serve large range of customers needs.
Hiring of well-qualified personnel in the work force.
Deployment of sophisticated technology in offices and branches.

5.5 THREATS
Increase the number of new local and foreign banks.
Low moral of employees.
Political interference in the affairs of the bank.
Lake of consistence in policies due to Political instability.
Low saving rated in the country.
Economic recession in the country.

This SWOT Analysis is a mirror to the bank o its present condition. From this
analysis we can conclude that the bank has done some professional changes in its banking
system. The management can develop elaborated strategy planes for capitalization the
available opportunities. One area where the bank has done some work is the improvement
in customer services.
The bank should maintain principle of professional management and adhere the
sound and sophisticated banking rules and regulations in order to build confidence of
people in the institution

6.1 RECOMMENDATIONS FOR IMPROVEMENT
Recommendations are based on the previous sections of a report and are
suggestions that the analyst feels are required to be implemented in order to improve
further the standing and position of the firm in the financial world. These are thus based
on the findings and shortcomings noted in an organization while working with it and then
writing on it. Opinions of various capable individuals are sought who through their real
life experiences and deep insight are better able to judge whether the course of action
adopted by the organization is going to prove fruitful or does it require further
improvement in the form of changes in its strategies.
Following are the findings and recommendations for various Departments that
were felt are required while consulting the staff members of UBL, Branch TANK.
6.2 Deposits Department
The comparative analyses reveal that UBL has the lowest share of Deposits out of
the total in the market. Since deposits are the lifeblood of a bank, it should attract more
customers and expand its deposit base in the following manner
Simplification of Procedures
The procedure of opening an account should be simplified. The account opening
form should be self-explanatory and include translations in Urdu for those customers who
are not well read, since the fact cannot be ignored that many people do not have a good
understanding of English.
No Duplication of Activities
Once the account opening form is filled there should be no reason to submit a
written application for opening an account, since it not only is a wasteful and time
consuming exercise on the part of the customer but also makes filing lengthy.

Incentives for Depositors
Those who deposit large amounts of money or are old customers of the bank should be
given free credit lines up to a certain limit. Besides, financial advice should be provided
to customers in case there is a change in the market trend before they seek for it.
Integrated Marketing Approach
All the officers in Deposits Department should be involved in marketing and not
just opening accounts and maintaining their records. This can be done through improving
their personnel relations skills and applying the Uni-Service concept of visiting the
potential customers at their offices and homes.
Performance Appraisal
UBL should follow the performance evaluation policy strictly and award those
who bring in deposits and help it increase its market share. Unfortunately, this has been
stated in the banks policy but is not being implemented.
6.3 REMITTANCES DEPARTMENT
The Remittances Department at the Branch is divided into Inland Remittances and
Foreign Remittances.Both these are dealt by separate officers and involve using specific
stationary and procedures. The following recommendations are made for this very
important Department of the bank
Organizing the Department
The Department is spread over the entire bank with no specific person or desk for
the purpose. Usually drafts and telegraphic transfers are made in the cash counter that
results in hassle for the other customers. A senior officer detached from the other officers
performing inland remittance transactions handles the foreign remittances. It would be
better for them to sit together so that they can benefit from his experience and know how.
Centralized Money gram Services
The customers receiving funds from abroad have to wait quite long in order to get
their money as the branch sends the application form through fax to the City Branch from
where it is confirmed whether the amount has been credited to the Swabi. Branch or not.

This confirmation takes long at times and there is always a fear of the bank losing its
goodwill in case of lengthy delays. The service should thus be decentralized and the Hub
Branch having the authority of directly confirming the amount.
6.4 CASH DEPARTMENT
The following recommendations are made for the Cash Department.
Expansion of the Cash Counter
The Cash Department at the Branch needs special attention in the sense that the
cash counter is small and becomes crowded when there are more than five to six
customers to attend. Customers purchase drafts and other instruments from the very same
counter where utility bills are collected and cash is deposited and withdrawn. Hence, if a
new counter cannot be built due to certain limitations the utility bills should be collected
through a window so that the regular customers do not face any problems.
Extended timings for Cash
In order for the bank to progress and compete with the others in the market, it
should extend the time for accepting and withdrawing cash. The customers face great
hardship especially when they come from far off places and find that the cash counter is
closed for the daily transactions.
6.5 BILLS AND CLEARING DEPARTMENT
The following suggestions are made for this Department keeping in view the
problems noted in it.
Career Development
It has been noted that the officers taking bills for clearing do not involve
themselves much with the other operations of the bank and thus remain on the very same
post and seat throughout their banking career. This is against the modern day policies of
organizations giving their employees conducive, rewarding and equal opportunities of
prospering and growing with it. Thus, the Human Resource Department at the Head

Office should prepare a plan that shows the future growth potential of the employees
based on their job performance and evaluation and make it known to all.
Job Rotation
There should be job rotation of employees especially in this department as it was
felt that the employees here know quite less as compared to the others. This will enhance
their capabilities and help them break the monotony making them find their work more
interesting.
6.6 ADVANCES DEPARTMENT
There were certain drawbacks in the application and processing for the loan
requests that were observed at the branch. The findings and the recommendations are as
under
Proper Documentation
If valid documents are not obtained before sanctioning the loan limit, it becomes
irrecoverable in case of default by the borrower. It has been noted that at times the related
officers oblige the customer by letting him submit the documents later and approving the
limit by getting the Disbursement Authorization Certificate from the Credit Committee. It
proves to be very time and resource consuming afterwards tracing the borrower to bring
in the documents. Therefore, correct and complete documents should be attained before
the amount is sanctioned and no leniency shown in any case.
Computerized Record
All the sanctioned cases should have record on the computer as it is easy to access
and does not involve the hassles of maintaining and retrieving large and old files. For this
purpose, training programs should be organized for the Relationship Managers to enable
them to have a basic computer know how. Through this, they would also be able to assess
the financial position of the prospective borrower in minutes by using related financial
software.

Verification of Security
Physical verification of the security tendered is a must rather than to merely rely
on the documents. It had been noted that where the property to be hypothecated/
mortgaged lay in remote areas such as the Gadoon Industrial Estate regular physical visits
are avoided by the officers. This and the above factors result in an increase in the non-
performing loans of the bank and as result UBL had more debts turned bad as compared
to the other banks. For this purpose, regular physical verification must be conducted of
securities pledged and hypothecated.

CONCLUSION
After the establishment of UBL in the year of 1959, the bank was successful in
achieving some of its objectives. In the very first the bank earned a handsome profit.
After the exhaustive era of nationalization, the bank is now transforming to
private ownership again. The decade of 60s was dominated by on exceptional increase in
economic activities. This result in bringing various changes in the management and
structure of the commercial banks. In area of management more professional were
brought in and the same was done with the structure.
UBL was not an exception to these changes. In the last decade of the century the
bank had witnessed very bad banking business. To rebuild the bank new professional
people were inducted under the leadership of Mr.Zahoor Soomro. Under this leadership
the bank introduced incentive schemes and products such as CARAMMAD,
ZARAMMAD and UNI-MAHANA, etc, schemes were introduced. The bank also
reshaped the product of Rupee Travelers Cheque (RTC) with a new name of HAMRAH.
All these schemes were very successful in stopping the capital flight from the
country, which was the result of the foreign currency a/cs in May 1998 after the nuclear
detonation. Now the bank is focusing on improving the standard of its services facilities,
specially improving its corporate banking and more customer satisfactory culture. All
these new and potential improvements are signs of bright future for the UBL.
After the conclusion I would like to recommend some points which I think if
given due consideration by the UBL management will definitely result in improving the
banks image, goodwill and position as well. Like other companies, for expansion of its
business the bank should focus its activities on increasing its stockholders equity. And
also the hank should be obliged and fulfill its obligations to its customer, stockholders
and public. Some suggestions may be given in order to give right back/objectives.
Development and maintenance of congenial work environment for the bank
employees.
Achieving more customer satisfaction through quality services.

Increasing assets and decreasing expenses through letter management.
Playing more responsible role in the social environment of the society meaning
full filling the social obligations as well.


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